New Tariffs and Their Impact on Las Vegas Commercial Construction
Why Now is the Time to Get Building
The recent reinstatement of 25% tariffs on imported steel and aluminum by President Donald Trump is set to significantly impact the Las Vegas commercial construction industry. With these tariffs taking effect on March 12, 2025, material costs are expected to rise, and supply chains could see disruptions that affect projects of all sizes.
For developers and business owners already in the process of building, acting quickly can help mitigate the financial impact. However, for those not yet ready to break ground, there are still strategic alternatives and planning techniques that can keep projects on track while controlling costs. Additionally, while these tariffs bring short-term challenges, they also present long-term benefits for the domestic steel and aluminum industries, which could lead to increased stability and supply chain resilience in the future.
How the Tariffs Will Affect Commercial Construction in Las Vegas
1. Rising Material Costs Across All Project Sizes
Las Vegas’ commercial construction sector relies heavily on steel and aluminum, not just for large-scale projects like casinos and industrial buildings but also for smaller projects such as office renovations, tenant improvements, and retail build-outs.
Structural framing, support beams, HVAC systems, window and door frames, and even interior fixtures will be affected by price increases.
A similar round of tariffs in 2018 led to an 8% rise in steel prices within months, and experts predict a similar, if not sharper, increase in 2025.
2. Supply Chain Delays Could Extend Timelines
Tariffs will slow down imports, reducing the availability of key construction components such as:
Structural steel beams and columns
Aluminum-based roofing, siding, and curtain wall systems
HVAC components, electrical wiring, and metal fixtures
For Las Vegas, where fast project turnaround times are crucial, these delays could lead to increased holding costs and lost revenue for developers and investors.
3. Increased Contractor Availability
Some developers may pause projects due to cost concerns, freeing up general contractors and subcontractors who might otherwise be booked out. Businesses that move forward with construction now may benefit from:
Faster access to skilled labor
More flexible scheduling
Potential cost savings on labor before demand spikes again
Benefits of Tariffs for Domestic Steel & Aluminum Production
While higher material costs are a challenge, the tariffs are also designed to strengthen domestic manufacturing and reduce dependence on foreign materials. Over time, this could create benefits for the U.S. construction industry, including:
1. Growth in Domestic Steel & Aluminum Supply
The tariffs will increase demand for American-made steel and aluminum, incentivizing U.S. producers to expand operations and increase production capacity.
More domestic production can reduce reliance on foreign suppliers, stabilizing long-term pricing and improving material availability.
2. More Investment in U.S. Manufacturing
Higher demand for domestic materials could lead to investment in steel mills and aluminum plants, creating more jobs and economic growth in the U.S. industrial sector.
Some manufacturers are already expanding operations, with new plants and modernized facilities increasing supply chain efficiency.
3. Potential Price Stabilization Over Time
If domestic producers ramp up output, competition among U.S. suppliers could lead to price stabilization after an initial increase.
While costs may rise in the short term, a stronger domestic industry could prevent severe price fluctuations in the future.
4. Reduced Supply Chain Vulnerabilities
Depending on imported steel and aluminum exposes construction projects to global disruptions, trade conflicts, and shipping delays.
A stronger domestic industry means shorter lead times, less reliance on volatile international markets, and greater material security for U.S. projects.
For Las Vegas, where the construction industry is constantly growing, a stronger domestic steel and aluminum supply chain could ensure more reliable and consistent access to materials in the coming years.
What You Can Do If You’re Ready to Build Now
If your project is already in development or close to breaking ground, there are still ways to minimize costs before the tariffs take full effect:
Secure material pricing now by negotiating contracts before price adjustments take place.
Buy materials in bulk if you have available storage.
Coordinate with contractors to optimize project schedules and avoid delays that could expose your project to higher costs later.
However, many developers and business owners aren’t ready to start construction immediately. If that’s the case, there are still long-term strategies to reduce costs and keep your project viable.
Alternatives for Those Not Ready to Build Immediately
If you can’t start construction before March 12, consider these proactive strategies to navigate higher material costs.
1. Explore Alternative Materials
While steel and aluminum are commonly used, there are viable substitutes that provide durability, cost savings, and even sustainability benefits.
Cross-Laminated Timber (CLT) & Engineered Wood
A strong, sustainable alternative to steel framing in low- to mid-rise commercial buildings.
Glulam beams offer the durability of steel at a lower cost.
High-Strength Concrete with Fiber Reinforcement
A substitute for steel-reinforced concrete that reduces long-term maintenance costs.
Improved durability makes it ideal for structural applications.
Composites and Carbon Fiber-Reinforced Polymers (CFRP)
Used in bridges, facades, and reinforcement applications as a lightweight, corrosion-resistant alternative to aluminum and steel.
2. Source Domestic & Recycled Steel
Domestic steel is not subject to tariffs and may be a more cost-stable option.
Recycled steel is widely available and often more affordable than newly manufactured steel.
3. Adjust Project Timelines for Strategic Purchasing
If you’re still in the planning phase, a phased purchasing strategy can help:
Buy critical materials early while prices are more stable.
Secure fixed-price contracts with suppliers.
Monitor market conditions for potential price fluctuations.
4. Invest in Pre-Construction & Design Work Now
Even if you aren’t ready to build, use this time to prepare:
Finalize architectural plans and engineering designs to avoid delays when the time comes.
Work with general contractors now to strategize cost-effective solutions.
Secure permits and approvals in advance to move quickly when you are ready to start.
Why Moving Forward Still Makes Sense in 2025
Even with material cost increases, Las Vegas remains one of the strongest commercial real estate markets in the country. Several factors still make now a great time to build:
Continued demand for office, retail, and industrial space
Increased contractor availability, leading to faster build times
Favorable financing conditions, which can help offset higher material costs
Waiting indefinitely for material prices to drop may not be a viable strategy, as supply chain volatility and economic shifts can be unpredictable. Instead, by taking strategic steps now, you can position your project for success despite the new tariffs.
The tariffs on steel and aluminum are undoubtedly reshaping the Las Vegas commercial construction industry, but they don’t have to stall your project.
If you can build now, securing materials and locking in contractor availability will help control costs before they rise further. If you aren’t ready to start, you can still move forward by exploring alternative materials, sourcing smarter, and using this time for pre-construction planning.
Long term, the tariffs may actually strengthen the U.S. steel and aluminum industries, leading to more stability, better domestic supply, and ultimately more predictable costs.
The key takeaway? Challenges like these create opportunities for those who plan wisely. By adapting to market conditions, developers can stay ahead of the curve, keep projects on budget, and continue building in Las Vegas—one of the fastest-growing commercial markets in the country.
Brandise Construction’s full-service approach means we handle everything from design and permits to materials and labor, ensuring that your project stays on schedule and within budget—despite industry shifts.
If you're ready to start your next commercial construction project or need guidance on how to adapt to these changes, request a quote. Let’s build smarter, together.
