Following Donald Trump’s election win, leaders in the construction industry expressed both hope and caution regarding the future of their sector. While many are excited about the prospect of a more favorable regulatory environment, there are concerns about tariffs, labor shortages, and other potential challenges.

Positive Expectations for Regulatory Change

The election results were met with optimism by many in the construction industry, with several leaders highlighting the potential for a more favorable regulatory environment.

“We are ready to work with the incoming administration and Congress to help craft an agenda that focuses on easing regulatory obstacles that are needlessly delaying infrastructure and economic development projects across the country; continuing to invest in improving infrastructure; and addressing construction workforce shortages,” said Jeffrey Shoaf, CEO of the Associated General Contractors of America. “To that end, we are eager to work with the president-elect as he and his team fashion their economic and regulatory agendas.”

Michael Bellaman, CEO of Associated Builders and Contractors, also expressed confidence in the election’s outcome, pointing to Trump’s commitment to free enterprise and workforce development as key factors in supporting ongoing construction growth.

“This is an exciting day for our industry,” Bellaman said. “We are confident that the construction industry will thrive and all workers will be given the opportunity to build America with fewer obstacles.”

Ron Tutor, CEO and chairman of Los Angeles-based heavy civil contractor Tutor Perini, was particularly pleased with the election results.

“I’m elated that Trump won and wiped Kamala Harris out,” Tutor remarked on the firm’s third-quarter earnings call. “I’ve always considered Trump good for business and since his background is construction, I can’t imagine him being anything but positive.”

Infrastructure Investment and Growth

While some responses were cautious, others emphasized the continued investment in infrastructure. Skanska Acting CFO Pontus Winqvist, for example, expressed a “neutral” stance on the election but noted that under a Republican president, businesses like his could benefit from lower taxes, which would boost the company’s bottom line.

“The infrastructure bill continues to be there. There will continue to be a lot of investments in the infrastructure. Also in the big building segment with data centers,” Winqvist said.

The National Utility Contractors Association (NUCA) also highlighted the need for continued investment in the nation’s infrastructure, particularly in water systems, roads, and energy projects.

“America’s infrastructure issues are nonpartisan. A leaking water service main, or Americans without clean water are everyone’s concerns,” said NUCA CEO Doug Carlson. “Americans are counting on Congress to responsibly deliver the billions of dollars in construction for the roads, bridges, energy and broadband infrastructure our nation needs.”

Concerns Over Potential Tariffs and Labor Issues

Despite the overall optimism, some industry leaders cautioned that certain aspects of Trump’s second term could pose challenges to the construction industry. Michael Guckes, chief economist at ConstructConnect, pointed out that new tariffs on imported materials could drive up construction costs.

“Certain proposed policies risk triggering higher construction costs,” Guckes said. “New tariffs on imported construction goods, which would raise the price of these goods, may lead to a second spell of construction inflation.”

Similarly, stricter immigration policies could exacerbate the industry’s ongoing labor shortage, Guckes added. Chris Gower, CEO of PCL Construction, a company with U.S. headquarters in Denver, echoed these concerns but was uncertain about the full impact of Trump’s policies.

“The things that Trump will do and has promised to do can hurt us and help us,” Gower said. “I’m not sure today, without knowing how those plans are going to unfold, if it’s neutral, or if it’s positive or negative. We’re looking at it from a number of fronts and we’re tracking how it’s going to impact us in more detail.”

Electrification and Policy Shifts

The National Electrical Contractors Association (NECA) took a more measured approach, acknowledging the divisiveness of the election while emphasizing the importance of continued support for electrification efforts.

“Through this election we are reminded of our responsibility as leaders in the electrical construction industry to come together and support one another,” said NECA CEO David Long. “NECA will continue to advocate for policies that enhance the success of our members with sensible tax policy, permitting reform and driving the electrification of America.”

However, some union-based organizations expressed disappointment. The AFL-CIO, which endorsed Vice President Kamala Harris, referred to the election results as a setback for workers.

“This result is a blow for every worker who depends on our elected leaders to fight for our jobs, our unions and our contracts,” said AFL-CIO President Liz Shuler. “We organized for months to produce a nearly 17-point advantage for Vice President Kamala Harris with union members. But it is clear that the economic struggle working-class people are facing is causing real pain and neither party has sufficiently addressed it.”

Looking Ahead

Despite the mixed reactions, Guckes remained optimistic that a Trump presidency, particularly with a potential Republican-led Congress, could ultimately benefit the construction industry.

“These changes could free the construction industry of the regulations that have historically held it back from faster growth,” Guckes concluded.

As the industry watches how Trump’s policies unfold in the coming months, the construction sector is bracing for both opportunities and challenges.