Construction Industry Navigates Challenges Amid New Federal Policies

The construction industry currently finds itself at a pivotal moment. Recent adjustments in federal policy hold the potential to invigorate construction activities significantly, while simultaneously exacerbating existing hurdles in the marketplace. According to the latest Market Conditions Report from DPR Construction, one of the leading builders in the United States, these changes demand quick adaptation and strategic foresight.

Philip Bartkowski, the national preconstruction leader at DPR, emphasized the need for agility in this rapidly changing environment. He pointed out that as new import tariffs come into play and regulatory requirements evolve, both contractors and project owners must remain vigilant. "Owners must anticipate further changes while making real-time decisions to secure favorable outcomes for their projects," Bartkowski stated.

The One Big Beautiful Bill Act

DPR's report highlighted a key piece of legislation termed the "One Big Beautiful Bill Act," which is viewed as advantageous for contractors. However, the benefits will not be uniformly experienced across all sectors, as some areas might face new obstacles. Furthermore, the existing strain on the labor market will dictate how effectively these legislative changes can be leveraged.

Several factors stand out regarding the possible impacts of the new policies:

1. Tax Treatment – The updated policies offer favorable tax treatment for construction firms, real estate developers, and private sector organizations. Notably, the introduction of a permanent 100% depreciation allowance for commercial and industrial buildings is expected to enhance cash flow, allowing owners to recover costs more quickly. This, in turn, could stimulate new construction projects. Full deduction capabilities for specific equipment purchases and loan interests will also serve as a catalyst for increased activity.

2. Workforce Enablement – An extension of Pell Grants to support short-term training programs is anticipated to broaden access to trade professions, beginning in July 2026. However, the effectiveness of this initiative in addressing labor costs and availability will depend on broader immigration policies and workforce regulations.

3. Risk of Larger Deficits – The financial implications of the newly enacted bill could lead to increased federal budget deficits. Economists warn that this might affect interest rates and borrowing costs, potentially impacting project funding availability.

Price Increases and Material Costs

DPR has also reported noticeable price rises across various construction materials, ranging from structural steel to glazing products, largely driven by shifting tariff structures. Out of the 26 trades monitored in their report, only three experienced stable prices, while the rest have faced year-to-date increases. This trend highlights the necessity for construction firms to adapt their procurement strategies amid this volatile environment.

DPR Construction continues to position itself as a leader in this dynamic landscape by working closely with its clients to navigate these complexities. By employing advanced technologies such as virtual design and prefabrication, and leveraging data analytics, DPR strives to ensure deliverables are met with greater consistency.

To delve deeper into these findings and explore interactive tools for assessing current market conditions, you can access DPR Construction's complete report and their interactive dashboard online.

About DPR Construction

Founded in 1990, DPR Construction has established itself as a forward-thinking general contractor specializing in technically complex projects spanning the advanced technology, life sciences, healthcare, and commercial markets. With a workforce of approximately 11,000 professionals, DPR is dedicated to delivering predictable outcomes by integrating innovative practices into its construction processes. As a private, employee-owned company, it has grown into a multi-billion-dollar organization with a commitment to sustainability and efficiency in the construction industry. For further details, visit DPR Construction.