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Episode 62: How the Trade War Is Affecting the Construction Industry with Taylor Rennick

Spencer Powell | Nov 12, 2019 9:42:59 AM | Marketing Strategy

Builder Funnel Growth Series

For the Builder Funnel Radio Growth Series episodes, Spencer and other Builder Funnel teammates discuss actionable ways to achieve continuous growth for yourself and your business.

 

What Are Tariffs? And Why Should the Construction Industry Care?

At first glance, tariffs seem like they should be outside the scope of worries for home builders and their marketers. But recent events have shown us otherwise. The new trade war with China is in full force right now, and as a result, many of the imported materials home builders need, such as wood and metals, have become more costly.

So who takes the brunt of it, home builders or home buyers? This is yet to be decided. But Taylor suggests three ways home builders can cope with the increased costs of materials:

  1. Escalation clauses
  2. Additional service fees
  3. Tightening up overhead costs

Taylor also harps on the importance of learning more about these tariffs and being transparent with clients about what is causing the increased costs.

Learn all about it here on Builder Funnel Radio.

 

 

  • 1:17 Why tariffs are relevant to marketers
  • 2:04 What is a tariff?
  • 2:44 The recent trade war with China
  • 3:50 Who ends up paying for these tariffs in the end?
  • 5:00 Recent tariffs on lumber, steel, and aluminum
  • 6:30 The effect these tariffs are having on home builder and home buyers
  • 9:58 Three ways home builders can take action
  • 12:14 Why you should be transparent with clients about increased costs
  • 13:56 Do the research, educate the client
  • 15:54 Closing thoughts

Related Resources

From CNN: Higher Chinese Tariffs Just Made Your Home Renovation More Expensive 

From the Washington Post: Remodeling Tariffs May Lead to Costly Headaches 

From Market Watch: Trump’s trade war with China is the last thing an already unsteady U.S. housing market needs right now

From the New York Times: Trump’s Trade War Escalation Will Exact Economic Pain, Adviser Says

From Business Insider: Trump just ramped up tariffs on $200 billion worth of Chinese goods. Here are all the products that will get hit

 

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