The price of building is rising
It’s not just a hunch. New data confirms what a lot of us are already thinking: federal actions are driving up the cost of doing business. This week’s edition includes the latest on tariffs and health insurance costs alongside guidance on how to respond. And since it’s Construction Inclusion Week, we’ve got tips for recruiting plus news items on women in HVAC and the demise of a DOT program that benefited underrepresented contractors.
But first, check out this "scary" Halloween costume idea from Baker’s Construction Services.
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>> This is how it’s done. See how live-edge wood slabs and hardwood flooring are made at Goby Walnut’s sawmill.
>> Now that’s a skeleton crew! This homeowner’s Halloween decor has a construction theme.
Loss of insurance subsidies could hurt your business
The health insurance subsidy news dominating headlines doesn’t just impact individuals.
“When you look at the demographics of the people who are buying their own health insurance, and especially those who would lose subsidies altogether, they're disproportionately small business owners,” says Cynthia Cox, vice president and director of the Program on the Affordable Care Act at KFF.
An analysis of SBA data shows that 99.94% of construction businesses qualify as small businesses and 68.19% of them have five or fewer employees. That means a lot of contractors are going to experience higher insurance costs if Congress doesn’t extend enhanced premium tax credits. Additionally, about 10 million Americans could lose their coverage entirely if the subsidies expire and Medicaid cuts continue.
Why it matters: KFF estimates that health insurance premiums will grow 114% without Congressional action. Now is a good time to revisit your 2026 budget to see what you can reallocate toward insurance premiums so you’re better positioned if Congress doesn’t act. (Marketplace)
Tariffs hamper homebuilding
As the year of tariffs presses on, researchers are collecting more data to understand how the trade policies affect contractors. A new report from Brookings shows the impact is especially damaging to residential construction.
“Tariffs on the very materials required to build new homes…add costs and slow production,” the authors write. “Our calculations show that about 90% of the costs to residential investment will fall on construction of new homes, including apartments.” Additional research shows that rising costs are slowing multifamily construction even though demand is high.
Why it matters: Tariffs don’t just make the work you get more expensive to build; they add uncertainty to your financial and product purchasing plans. Continue to work with your accountant and banker to make sure you have the right cash flow and financing to keep projects moving and to weather a weaker project pipeline. (Brookings)
How to get more people into construction
The current conversation around trade careers often leaves out key motivators like advancement and long-term job security—two things young people are looking for, according to Boyd Worsham, the National Center for Construction Education and Research’s president and CEO. That prevents potential crew members, particularly historically excluded job candidates, from entering the talent pipeline.
“Yes, in most cases, young people enter the trades by learning a craft,” he says, “but many later become supervisors, estimators, project managers, executives and even business owners. We need to stop showing just the entry point and start showing the many pathways...They can build lives, not just structures.”
Why it matters: Though most teenagers (85%) see trades as a good career option in general, few (16%) are considering pursuing that path for themselves, per a survey by Stanley Black & Decker. If you want to attract more young people into the business, explain how their trade can become a career as an experienced professional, a manager or an entrepreneur. (ConstructionDive)
>> Winning women: ACHR News lauds outstanding HVAC pros
>> Dismantling DBE: DOT ends program to promote industry equity
>> Oregon order: Governor wants quake-proof government buildings
>> Greener games: LA policymakers plan for no-build Olympics
New insulation practices are on the way
"We know that exterior insulation helps with durability [and] keeps the sheathing above the dew point. I think it's one of those things that builders are so resistant to it, but it's going to come eventually. It’s going to have to."
—Grant Baver, Fine Homebuilding
Building science and the future of walls were just some of the topics covered in a roundtable discussion on the “Fine Homebuilding Podcast” with Fine Homebuilding Associate Editor Grant Baver, Senior Editor Patrick McCombe, Production Manager Ian Schwandt of TDS Custom Construction, Business Development and Sales Manager Peter Koopman of Koopman Lumber & Hardware, and green building advisor Randy Williams of Northern Built.
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The Level is curated and written by Margot Lester and edited by Bianca Prieto.
