[UPDATE Feb 3, 2025: As of this writing, Tariffs have been paused for 30-days. Situation: Trump announced a 25% tariff on ALL Canada’s goods exported to the United States, and 10% on energy. Canada’s response was to announce 25% tariffs on $155B worth of United States imports, in 2 waves. Imported goods that can impact Condo Boards include plastics, rubber, wood, paper, articles of iron and steel; steel and aluminum products are in the second wave.]
[UPDATE January 21, 2025: The tariff situation remains fluid. The next anticipated announcement date is February 1, according to Trump. Final impacts are yet to be determined.]
Managing large-scale renovations requires careful planning, especially with proposed U.S. tariffs. For Alberta condo boards, understanding and adapting to these changes is crucial for successful project execution and long-term capital project reserve fund planning.
Beat The Clock On The “Tariff Window”: Why Timing Matters
For boards contemplating reconstruction or capital projects, decisive action is becoming critical. Once the tariffs and Canada’s response take effect, we anticipate about a three-month “Tariff Window” where the current supply remains available at existing market prices.
Understanding the Multi-Layer Impact
Material Cost Implications
The proposed tariffs could significantly affect construction costs across multiple fronts:
- Lumber Impact: As Canada is a major softwood lumber supplier to the U.S.. Tariffs would affect framing costs for multi-family residential buildings
- Steel and Aluminum: Expect price increases for structural components and finishing elements like windows and doors
- Oil and Gas Related Materials: Projects may see cost increases in plastics, rubber materials, and equipment operation
While Fort Sands prioritizes Canadian suppliers, local pricing typically follows U.S. market trends due to supply and demand dynamics.
Broader Market Effects
These changes extend beyond simple material costs:
- Supply chain disruptions as suppliers adjust their market focus and pricing strategies
- Local material costs could rise despite potential economic slowdowns, driven by increased domestic demand
- Construction demand could fluctuate depending on what happens in industrial, commercial and single-home new construction
- Insurance costs typically increase due to higher replacement costs
- Reserve fund planning may need reassessment based on new market realities
On the upside for Condo owners; new home construction is likely to slow down, meaning more materials available for capital projects.
Strategic Solutions for Your Board
1. Material Innovation
Consider alternative materials that offer both cost stability and durability. For example, composite decking can provide long-term value while reducing exposure to traditional material price volatility.
Choosing more resilient materials like James Hardie siding can positively impact your insurance situation.
Your Fort Sands Project Advisor can guide you through options tailored to your project’s needs.
2. Local Supply Chain Optimization
We’ve built strong relationships with local suppliers and sub-trades. This robust network helps shield your projects from international supply chain disruptions.
3. Sustainable Approaches
With tariffs potentially levelling the playing field between traditional and sustainable materials, now is an ideal time to consider eco-friendly alternatives. Fort Sands actively promotes sustainability through:
- Material recycling and repurposing
- Reduced landfill impact
- Resource-efficient construction methods
Our Commitment to Your Success
At Fort Sands Construction, we’re adapting to ensure your projects remain on track:
- Transparent communication about market impacts and solutions
- Proactive business practice adjustments to maintain schedules and budgets
- Continuous expansion of our industry network for better sourcing options
- Unwavering commitment to quality craftsmanship
Time-Sensitive Action Items
If you have existing Fort Sands estimates, we recommend reviewing them promptly to secure materials before the Tariff Window closes. This proactive approach can help protect your project budget and timeline.
Moving Forward Together
Successfully navigating these market changes requires foresight, flexibility, and strong partnerships. Fort Sands Construction stands ready to guide your board through these transitions, ensuring your renovation projects not only meet but exceed expectations.
Let’s work together to ensure your community thrives, regardless of market conditions.
Thank you for trusting Fort Sands Construction as your partner in building a better Alberta.