A family-run heating and plumbing specialist has made a groundbreaking decision to implement a four-day working week for its entire workforce while maintaining full pay.

Custom Heat, based in Rugby and operating across the Midlands and South West, will implement the innovative work model from March 31 to August 31, 2025, following a successful six-month trial. The move positions the company as the first in the heating and construction sector to adopt this progressive approach, setting a new precedent for the industry.

Under the new arrangement, employees will receive 100% of their salary while working 80% of their contractual hours. The initiative will be implemented across the company’s Midlands and South West operations, with careful rostering to ensure continued five-day service delivery with no impact on customer experience.

“We’ve been closely monitoring both employee wellbeing and business metrics throughout our trial period, and the results have been overwhelmingly positive,” said Lincoln Smith, Managing Director at Custom Heat. “Our goal was to create a more sustainable work environment that benefits both our team members and our business outcomes.”

The company’s three-month review of the trial revealed significant benefits: staff retention improved dramatically with a 66.67% reduction in employee turnover compared to the same period in 2023; job applications increased by 250% when positions were advertised with the four-day week benefit; and despite employees working 20% less time, service and repair sales only decreased by 5%, while installation team sales were down just 1%. Fuel costs decreased by up to 32% for some engineers, supporting the company’s sustainability goals, and staff absences due to sickness fell by 17.39% compared to the three months preceding the trial.

Engineers who participated in the trial reported significant benefits both professionally and personally.

Simon Scarfe, 56, who has been with Custom Heat for four years and in the gas industry for 25 years, initially approached the trial with caution.

“I was skeptical and concerned about potential income loss,” said Mr Scarfe. “But once I understood the model, I was happy to try it. Having Wednesdays off allowed me to better balance work with my commitments as a community first responder and spend more time with family.”

The extra day off proved particularly valuable for Mr Scarfe’s volunteer work.

“With the four-day week, I can dedicate more time to emergency medical response in our community. Before, I’d finish work in the evening around 6.30, and I felt I wasn’t doing the first responder scheme justice by just logging on for an hour or two. Now, with Wednesdays off, I can put in a reasonable shift and even accompany double-crewed ambulances for 12-hour shifts during the summer months. It’s made a tremendous difference to my ability to serve the community.”


For Cezary Goman, a 32-year-old service and repair engineer from Coventry who has been with the company for five years, the trial came during a particularly challenging personal time. “When they first told me about it, I had mixed feelings,” explained Mr Goman. “Part of me worried we weren’t busy enough, and I might lose progression opportunities or pay rises. But I was also happy to have an extra day for myself.”


Mr Goman, who took Tuesdays off during the five-week trial period, found the change especially beneficial as his wife had been unwell.

“For three years before the trial, I was working 6-7 days a week, trying to catch up on everything possible. For me, the four-day week felt like someone taking the pressure off. I could finally relax a little.”

With two children aged six and 16, Mr Goman also values the additional time for family responsibilities and childcare during school holidays.

Custom Heat’s initiative aligns with growing evidence supporting the four-day week model. According to data from 4dayweek.co.uk, 56 out of 61 companies that trialed the approach continued with it afterward. These companies reported a 35% increase in revenue, 57% reduction in staff turnover, and 25% revenue growth over the previous year. Additionally, 83% found it easier to attract talent, while 66% reported reduced employee burnout.

“The construction and heating sectors are traditionally known for long hours and high-pressure environments,” added Mr Smith. “We’re proud to be pioneering a more sustainable approach that can potentially transform industry standards while maintaining service excellence. To our knowledge, we are the first heating and plumbing business in the UK to implement this model across the entire organisation, which puts us at the forefront of workplace innovation in our sector.”

Following the summer implementation, Custom Heat plans to conduct a comprehensive review to determine the viability of making the four-day summer work week a permanent fixture in their annual calendar. The company has emphasised that normal five-day operations would continue during winter months without increasing working hours to compensate for the reduced summer schedule.

 

LKAB and Forterra to produce recycled calcined clay to replace cement

A partnership between LKAB Minerals, part of the international mining and minerals group LKAB, and building products manufacturer Forterra, is pioneering the use of recycled calcined clay as an alternative to traditional cement in construction.

The production of cement is responsible for up to 8 percent of the world’s CO2 emissions. Addressing this challenge, the industry is looking at new technology, carbon capture and the use of Supplementary Cementitious Materials (SCMs) that are viable at industry-scale. Calcined clay is one such option to replace cement. It has significant potential to scale-up at speed and therefore offers a cost-efficient solution for the industry.

“At LKAB Minerals we are looking to develop new products and applications that support increased material efficiency, sustainable production and support critical uses and the green transformation – this is a perfect example of that and I am very excited about our UK and Construction team activities and plans” says David Högnelid, Vice President Minerals, LKAB.

To create the calcined clay products, Forterra’s brick waste from its Kings Dyke factory is crushed and delivered to LKAB Minerals. This process not only reuses by-product materials but also reduces the need for energy-intensive clinker production.  Perhaps most importantly, calcined clay increases concrete’s strength by reducing the porosity of the material. In this innovative approach, the calcined clay is based on recycled brick waste, further reducing carbon emissions compared to primary clay-based materials, and offering circularity.

Steve Handscomb, Managing Director of LKAB Minerals UK and responsible for driving this development comments

“The traditional manufacturing and materials industries face a great challenge to meet our own environmental and Governmental targets. We have to work harder than other less energy intensive industries, and need significant investments to upgrade equipment. We are committed to playing a role in the transition. In fact, we are already a significant producer of GGBS which is another recycled cementitious replacement material, and in the Minerals Division,45% of the minerals we sell are from recycled sources or by-products”.

The construction of the production line at LKAB Minerals’ plant in Flixborough is underway, scheduled to start production in June 2025. A third-party verified Environmental Product Declaration (EPD) is in progress to provide customers with accurate environmental impact and C02 figures. Calcined clay will add to the portfolio of LKAB Minerals’ products as cement alternatives including GGBS and Gypsol, an anhydrite-based floor screed.

Read more on lkab.com and lkabminerals.com

Construction activity has suffered a further decline and confidence is low despite minister Angela Rayner’s planning reforms getting a thumbs up from the Office for Budget Responsibility (OBR).

Rayner’s Ministry of Housing is introducing broad changes to planning rules as it hopes to deliver the UK’s construction sector an extra boost.

Its planning reforms have won the approval of the fiscal watchdog, which upgraded growth forecasts for 2026 and the years thereafter.

But optimism is yet to spread to construction firms, which have seen the fastest reduction in employment numbers in nearly five years, according to S&P Global’s purchasing managers’ index (PMI).

The PMI showed that activity has seen a downturn for the third month in a row as it posted a figure of 46.4 for March, below the 50-figure benchmark that indicates an overall increase in output compared to the previous month.

Confidence across the sector also fell to its lowest level since October 2023 as the UK’s poor economic outlook has weighed down on business prospects.

Civil engineering was the weakest sub-sector as the rate of contraction was at its fastest pace since October 2020.

Economics director at S&P Global Tim Moore said construction at large was facing headwinds from delayed decisions on major projects.

“March data highlighted a challenging month for UK construction companies as sharply reduced order volumes continued to weigh on overall workloads,” Moore said.

Spiralling employment costs, exacerbated by Chancellor Rachel Reeves’ £25bn national insurance tax raid, are also taking a hit on the sector.

“A lack of new projects, alongside pressure on margins from rising payroll costs, led to hiring freezes and the non-replacement of departing staff in March,” he said.

“The net result was the fastest pace of job shedding across the construction sector for nearly four-and-a-half years.”

The government is relying on the sector to help it achieve its target of building 1.5m homes in the next four years.

It has also made significant investments in national infrastructure projects central to its mission to deliver growth. But the latest data on construction will send a warning to government officials who are feeling buoyant after planning reforms have gained credibility.

 

Source: City AM

 

A self-employed roofing contractor has been ordered to undertake unpaid work after the uncontrolled spread of asbestos in a back garden, putting two young workers and local residents at risk.

Doorbell-cam footage shows parts of an old garage roof being disposed of with a lack of control measures.

The footage has been released by the Health and Safety Executive (HSE) at the start of Global Asbestos Awareness Week today, Tuesday 1 April, to highlight the dangers.

Stephen Wilks, trading as S Wilks Roofing, pleaded guilty to breaching asbestos safety regulations after work carried out under his control led to the contamination of a residential area with asbestos-containing materials.

The court heard how Mr Wilks had been commissioned by a property management company to replace asbestos cement roof sheets on three garages off Green Walk in Bowden, Altrincham in February 2022.

HSE began an investigation after a local resident raised concerns about debris that had fallen into their garden during the work. Analysis confirmed the debris contained chrysotile asbestos.

HSE inspectors discovered ripped bags of asbestos waste stored in a publicly accessible area in front of the garages, with asbestos-containing materials spilling onto the ground and contaminating nearby undergrowth. Further investigation revealed that residents’ personal belongings stored in the garages had also been contaminated.

The footage below shows two workers under the supervision of Mr Wilks  improperly clearing asbestos debris from a neighbouring garden and disposing of it in domestic waste bins, highlighting the unsafe practices that led to this prosecution.

https://www.youtube.com/watch?v=xRKL6PfhAQw

HSE’s campaign “Asbestos and You” reminds tradespeople about the dangers of asbestos and the importance of working safely with it.

The regulator also provides comprehensive guidance for workers and employers about working safely with asbestos on its website. This includes information on how to identify asbestos, what to do if you find it, and the appropriate safety measures needed when working with or around asbestos-containing materials. Workers in trades such as construction, maintenance, demolition and installation are particularly at risk and should ensure they have appropriate training before starting work that might disturb asbestos. This guidance is available on the HSE website.

The property management company subsequently arranged for a licensed asbestos removal contractor to safely collect the waste and thoroughly clean the affected areas.

Mr Wilks pleaded guilty to breaching Regulation 11(1) and Regulation 16 of The Control of Asbestos Regulations 2012, which require proper planning and precautions to prevent exposure to and spread of asbestos during non-licensed work. He was sentenced to a 12 month Community Order with 200 hours of unpaid work and was ordered to pay £3582.13 costs at a hearing at Ashton-Under-Lyne Magistrates Court on 28 March 2025.

HSE Inspector Phil Redman said: “This was a serious incident that put Mr Wilks, those working under his control, and members of the public, at risk from the potential harmful effects of being exposed to asbestos-containing materials. Duty holders are reminded to ensure they fully control the risks associated with the removal of asbestos-containing materials that do not require removal by a licensed asbestos removal contractor.”

The prosecution was supported by HSE enforcement lawyer Kate Harney and paralegal officer Rebecca Withell.

Towards greener Helsinki. Photo: Kari Ylitalo, Helsinki Partners

The operations of the Salmisaari coal power plant ha ended.   Abolishing the use of coal is a significant milestone for Helsinki on its journey towards carbon neutrality. The closure of the power plant will reduce Helsinki’s carbon dioxide emissions by 30 percent compared to the previous year, and it practically also marks the end of coal burning in Finland as a whole.

Helsinki’s climate goal is to achieve carbon neutrality by 2030, twenty years ahead of the EU’s target. Abolishing fossil fuels in energy production plays a significant role in achieving this goal. The first really major step into the green transition was taken two years ago, when the municipal energy utility Helen Ltd, a subsidiary of the City of Helsinki, shut down the Hanasaari B power plant. Now, Helsinki’s last remaining coal power plant, Salmisaari, is being relegated to the history books.

“The closing of the coal-fired energy plants is an important and historical change for Helsinki, Finland and, ultimately, the whole planet. Cities the world over have assumed a leading role in the fight against climate change. Helsinki wants to be a bold forerunner, on both a national and global level. The fact that we have been able to resolutely move forward with our plans to shut down coal-fired power plants in our city is a strong indicator of our determinedness in this area,” says Juhana Vartiainen, Mayor of Helsinki.

The closing of the Salmisaari coal power plant will reduce the City of Helsinki’s emissions by 30 percent. The abolishment of coal has happened quickly in Helsinki, as in 2022, coal still accounted for 64 percent of Helen’s district heat production. Helsinki has now closed both the Hanasaari and Salmisaari coal power plants within two years, which will reduce the city’s CO2 emissions by an impressive 43 percent. At the national level, the closing of the power plants in Helsinki will reduce the total carbon dioxide emissions of Finland by 5 percent.

Heat production to be divided among several sources

Energy production is no longer be based on fossil fuels in Helsinki. Helen’s investments in carbon-neutral production, such as Europe’s largest electric boiler plant and the world’s largest heat pump, have enabled Helen to move away from coal completely. Going forward, the Finnish capital will transition into electrified energy production based on heat pumps utilising waste and environmental heat, electric boilers, energy storage and sustainably produced bioenergy. Helen produces electricity mainly from wind, nuclear, hydro and solar power.

“With regard to the Helsinki’s direct climate emissions, we have made particularly good progress towards our goal of achieving carbon neutrality by 2030 in terms of heating and electricity consumption. Shutting down the operations of the Salmisaari coal power plant is a really important step and a much-needed major deed. However, our determined work towards emissions reductions will not stop here, as our objective is to be net zero by 2040, and from there on we will strive towards carbon negativity,” points out Deputy Mayor Anni Sinnemäki.

Hydrogen offers new business opportunities

As electricity production becomes more diversified, one of the most talked about clean energy solutions of the future is hydrogen. Helsinki is also investing heavily in this area. One interesting pilot project for green hydrogen production is Helen’s 3H2 – Helsinki Hydrogen Hub. The goal is to start hydrogen production in a new facility in 2026. Hydrogen also offers business opportunities for international companies.

Finland’s key strengths in the hydrogen field are based on the clean, robust and cost competitive electricity system, a high-tech society with a predictable low-risk investment environment, an ample supply of clean water and biogenic CO2, and excellent opportunities for taking advantage of the side streams of hydrogen production.

 

Uniting changemakers to transform engineering education and practice

 

Engineers Without Borders UK is proud to launch the 2025 Systems Change Lab, a bold initiative designed to drive systemic change in engineering education and practice. Running from May – November 2025, the Lab will bring together changemakers from across the engineering sector to turn ideas into tangible outcomes that redefine the role of engineering in society.

Today’s global challenges – climate breakdown, social inequality, and unsustainable resource use – demand fundamental, systemic change in the way engineering is taught and practised. The Lab provides a space for key stakeholders to challenge existing norms, address barriers to change, and co-create a vision for an engineering sector rooted in global responsibility.

The 2025 Systems Change Lab builds on the success of its 2023-24 edition, delivered in partnership with the Royal Academy of Engineering. This initiative brought together over 200 changemakers from 25+ universities and 22 companies, generating insights and toolkits  that will shape the next phase of action.

An Open Call to Changemakers

At the launch event on 20 March in London, changemakers came together to develop task and finish groups, each dedicated to driving change in key focus areas throughout the year. The preliminary focus areas, selected by participants of the Lab, include: Education and upskilling, Roles and values of engineers, Nurturing changemakers and inclusive cultures, Policy and risk, Challenging the standards, and Communication and stories of change.

Now, the Lab is seeking professionals, educators, students, and innovators from all backgrounds who are eager to drive meaningful transformation, to join the groups and contribute to tangible outputs. Whether representing an organisation or bringing lived experience, research, or innovative ideas, participants will help shape the future of engineering.

Opportunities to contribute range from short-term engagement to leadership roles within the Lab’s activities. Participants can engage in online and in-person workshops across the UK, designed to foster collaboration and innovative thinking. The Lab offers flexible involvement, so that anyone passionate about change can contribute.

John Kraus, CEO of Engineers Without Borders UK, said:

“Let’s move beyond conversation and take real steps towards reshaping engineering education and practice. Whether as an individual or an organisation, we welcome you to join the Lab. Together we can reorient the sector to meet the urgent challenges of the 21st century.”

 

 

To learn more and join the Systems Change Lab, visit www.ewb-uk.org/systems-change-lab/, explore the participation pack,


 

Engineers Without Borders UK is eager to collaborate with organisations dedicated

to driving change in engineering.

To explore partnership opportunities  CLICK HERE

 

 

 

 

Teachers can tailor the lighting to meet the needs of individual pupils with sensory sensitivities

Glamox has delivered lighting for an extraordinary renovation project in Finland, where an old military barracks has been transformed into a modern learning facility for children with sensory sensitivities.

The Valteri Centre for Learning and Consulting provides services for children and young people who need support in their education. In September 2024, Valteri opened a renovated school for lower and upper elementary school students in Oulu, Finland, where the lighting can be tailored to meet the needs of individual students.

Glamox, a world leader in lighting, has delivered more than 1,000 LED fixtures to the school, which is equipped with double the number of luminaries of a regular school.

The renovation was undertaken by Senate Properties, with electrical contractor Sweco responsible for the electrical design and lighting design for the project. Both the building and the light installations cater to students with visual, hearing, attention, and mobility impairments.

Lighting in the corridors involves luminaires which work together to provide a uniform light distribution, with a light source that is not visible. Harsh lighting, which can flicker and hum, can distract and even be painful to students with autism, resulting in increased anxiety and irritability.

“Our main starting point was to design a supportive and good learning environment for students. The design of the spaces emphasised accessibility for all senses,” says Riina Kittilä, lighting designer at Sweco.

To achieve this goal, classroom spaces have been shaped to add ample light to the teacher’s face so that students can read facial expressions. It was also important to avoid high-contrast areas on the walls and to use uniform illumination without light and dark areas in the same space. Specifically, the chosen light fixtures avoid strong surface brightness that causes glare.

“We chose Glamox as a supplier because its products meet our strict technological requirements and include tunable, white lights. Another advantage is that the product family can be installed in various ways, which is more cost efficient,” notes Kittilä.

“Every classroom has lighting that can be adjusted individually for the students. The teacher can adjust the light intensity and colour temperature on a fixture-by-fixture basis in the classroom. In that way, the teacher can increase the light with a cooler colour temperature to raise alertness or use warm and dim lighting to calm the mood in the classroom,” Kittilä explains.

Glamox is proud to have contributed to this unique project and hopes that others will be inspired by the tailor-made learning conditions at the Valteri School in Oulu.

“We have amassed years of experience providing Human Centric Lighting that can help improve learning environments and we understand the psychological and biological impact of light on pupil performance. I can’t think of a project where those factors are more important, and this school project raises the bar in creating lighting conditions suited to the needs of individual students,” says Simo Kari, Sales Director at Glamox Oy Finland.

 Images credit: Photo: Marko Kallio, Skyfox

 

 

The government has ambitious plans to deliver vital infrastructure and homes, and they seem determined to achieve it. But it’s a tough ask, leaving key questions unanswered – what will it cost? And will it be at the expense of the environment? Mike Froom, Te-Tech Process Solutions, explains.

Nutrient neutrality is a battleground. Intended to protect our environment, it’s become a perceived barrier to much-needed development. But is it a zero-sum game? Are we trapped in a cycle of conflict, where progress and preservation are constantly at odds? Or can we balance the needs for development with the health of our rivers?

Significant need for homes

The government has strong desires to tackle the UK’s housing crisis. Addressing issues with affordability and limited availability, particularly pressing for young people, are driving this push for increased supply.

And there are hopes that getting development underway will boost economic growth – creating jobs and stimulating investment in the construction sector. All whilst tackling social issues such as housing availability, social mobility and ensuring enough homes for future generations.

The development dilemma

Both housing and the environment are under pressure. Must one buckle? Or can both be eased? The urgent need for housing and development is undeniable, but it should not come at the expense of our environment.

Put simply, more homes mean more wastewater, which, if not treated effectively, can contribute to nutrient loading to surrounding water systems, fuelling algal blooms, choking waterways, depleting oxygen and wrecking ecosystems. These blooms can produce harmful toxins, impacting drinking water quality and recreational activities.

Government attempts to prioritise both

At the beginning of the year, the government announced planning proposals to unblock vital infrastructure whilst enabling nature’s recovery. The Nature Restoration Fund will pool contributions from developers to fund larger strategic interventions for nature, and the Planning and Infrastructure Bill will accelerate 150 major projects, including wind farms, roads and data centres, where previously, environmental mitigation for each project had caused delays. The large-scale, strategic environmental interventions will be managed by Natural England, replacing project-by-project mitigation, and speeding up approvals.

So, the time for debate is over. Development is going ahead. The question is no longer whether we should prioritise the environment or development, it’s become – how can we mitigate the impacts of getting Britain building?

Nutrient mitigation: Time to trust mother nature?

Nature-based approaches, like constructed wetlands, are a natural solution to remove excess nutrients from wastewater, whilst creating valuable wildlife habitats. So, problem solved? We just need to get Britain building… wetlands?

Unfortunately, this isn’t the case. The jury is out with the EA on how effective wetlands are in removing nutrients, so there is not wholesale or unconditional endorsement of these nature-based solutions. Additionally, due the nature of these solutions, proof of their effectiveness may take several years to demonstrate, and effective management and maintenance of wetlands is still a consideration. Wetlands have significant space requirements, and purchasing land is costly, therefore they are not applicable for all facilities, especially those with limited space or budget. So, what are the alternative options?

Chemical precipitation?

Traditionally chemicals like aluminium or iron salts can be added to wastewater to bind with phosphorus, forming solids that can be easily removed through settling or filtration. But chemical dosing comes with a host of issues and is not ideal for long-term, sustainable solutions. Ferric, for example, is highly corrosive, generates more sludge and wreaks havoc with tanks and pipes.

Biological nutrient removal

Biological nutrient removal (BNR) processes use beneficial microorganisms to remove nutrients from wastewater. Nitrifying bacteria convert ammonia into nitrates, and denitrifying bacteria convert nitrates into nitrogen gas. The setup allows simultaneous nitrification and denitrification for complete removal of nitrogen from the wastewater. Combined with enhanced biological phosphorus removal (EBPR), whereby polyphosphate accumulating organisms (PAOs) remove phosphorus from the wastewater, and you have a formidable process for nutrient removal.

A future for development and nature

Nutrient neutrality must be achieved, not circumvented. Long-term, sustainable nutrient neutrality solutions, such as wetlands and enhanced biological processes are necessary to meet the demands of both economic progress and environmental health, to ensure development without the destruction of our environment. Ensuring the projects we build today do not compromise our tomorrow.

 

Source: The Water Magazine

 

£350 billion shot in UK economy’s arm on the table with oil & gas and other homegrown energy

With forecasts indicating that the United Kingdom (UK) will need billions of oil and gas barrels by 2050 amidst the ongoing economic challenges and energy market headwinds and tailwinds, Britain’s trade body for the offshore energy industry, Offshore Energies UK (OEUK), has outlined in its new report the roadmap that will enable Britain not only to meet the power demand with energy produced at home but also inject hundreds of billions into its economy by allowing oil and gas to thrive alongside low-carbon and clean alternatives in its energy toolbox.

Offshore Energies UK’s ‘2025 Business Outlook’ report spotlights the path the UK is being urged to take to unlock energy reserves, which could curtail its dependence on imports and boost economic growth. OEUK claims that the UK could produce at home half of the 13-15 billion barrels of oil and gas the nation is projected to need by 2050 under the right business conditions.

According to Britain’s trade body, such a move would add up to £150 billion of gross value to the UK economy on top of the £200 billion from planned production, resulting in around £350 billion in total to safeguard energy security, jobs and lower carbon emissions alongside an acceleration of renewables.

OEUK’s report comes after the independent Climate Change Committee estimates, which indicate the UK will require 13-15 billion barrels of oil and gas by 2050, the target date for the economy to achieve net zero. While Britain is on track to produce 4 billion of these barrels, the report finds that another 3 billion barrels could be produced at home to meet half of the UK’s needs with the right polices to encourage firms to invest, rather than increasing its reliance on imports.

Furthermore, the report’s findings indicate that by 2050, when UK electricity demand has more than doubled, oil and gas will still form a fifth of UK energy needs. As a result, the cost of energy is seen as critical to wider industrial strategy and economic success. With this in mind, OEUK concludes that maintaining homegrown gas supplies is key for the UK’s industrial base.

This business outlook coincides with government consultations with the industry on the future of the North Sea and the oil and gas fiscal regime. In the coming months, the trade body notes that interlinked decisions are also expected on the UK government’s Comprehensive Spending Review and new Industrial Strategy, as well as updated environmental guidelines for oil and gas projects.

 

Source: Off-Shore Energy

Constuction Dive Talks to Steve Stouthamer of Skanska about the construction materias most as risk from US tarrifs

Rebar, structural steel, piping and ductwork are all facing price volatility, according to Skanska USA Building executive Steve Stouthamer.

Steel and aluminum prices have jumped sharply since the turn of the new year, and more volatility could be on the horizon.

Contractors are bracing for a new wave of tariffs set to take effect April 2, this time on certain material imported from Canada and Mexico — such as steel, aluminum and lumber. Though reports indicate the Trump administration could roll back the ultimate scope of this action, contractors say just the threat of tariffs can have an immediate impact on material costs.

That’s why that looming deadline on Canadian and Mexican imports has already sparked concern across the construction industry, particularly around reinforcing and structural steel, curtainwall systems and Canadian lumber, said Steve Stouthamer, executive vice president of project planning for Skanska USA Building.

Here, Stouthamer talks with Construction Dive about the materials most at risk, tariffs’ impact on budgets and negotiations and steps contractors can take to minimize financial exposure.

teel and aluminum prices have jumped sharply since the turn of the new year, and more volatility could be on the horizon.

Contractors are bracing for a new wave of tariffs set to take effect April 2, this time on certain material imported from Canada and Mexico — such as steel, aluminum and lumber. Though reports indicate the Trump administration could roll back the ultimate scope of this action, contractors say just the threat of tariffs can have an immediate impact on material costs.

That’s why that looming deadline on Canadian and Mexican imports has already sparked concern across the construction industry, particularly around reinforcing and structural steel, curtainwall systems and Canadian lumber, said Steve Stouthamer, executive vice president of project planning for Skanska USA Building.

Here, Stouthamer talks with Construction Dive about the materials most at risk, tariffs’ impact on budgets and negotiations and steps contractors can take to minimize financial exposure.

CONSTRUCTION DIVE: Which construction materials do you expect will see the greatest price volatility due to tariffs?

STEVE STOUTHAMER: The materials being impacted the most are products made from steel and aluminum.

For example, reinforcing steel used in concrete, structural steel used in the building frame, aluminum curtainwall and window wall systems used in the building envelope, piping and ductwork used in mechanical and electrical systems and many building mechanical and electrical equipment components.

Steel prices have increased 15% to 25% since the beginning of January and aluminum is also up 8% to 10% from the beginning of January. The Trump administration has indicated Canadian lumber will be included in the reciprocal tariffs which are set to take effect on April 2. Lumber has already seen a significant increase, 10% to 15% in cost, in anticipation of this tariff.

How might these tariffs affect project costs and timelines?

We are in the early stages of helping our clients understand the order of magnitude cost impacts we see based on current tariffs and those will vary based on the type of project and the material composition of those projects.

At present, we are not expecting a near-term impact on project timelines. If there is a considerable shift to onshoring manufacturing, supply chain schedules could be constrained, but this is not like the situation we experienced during the pandemic where the supply chains were impacted by global shutdowns.

At the moment, the broader Mexico and Canada tariffs on products protected by the United States-Mexico-Canada Agreement are suspended until April 2. Upon resumption, it is our current understanding that 25% broad tariffs on all goods from Mexico and Canada would stack on top of the all-country steel and aluminum tariffs of 25%, resulting in a 50% levy.

With the latest tariff suspensions, it is unclear if this will ultimately be the case. We will be monitoring the situation in the weeks ahead.

How do you see tariffs affecting negotiations with owners and developers?

Tariff cost impacts will put pressure on project budgets. Many of those are already challenged by the significant period of escalation experienced post-pandemic.

We are only a few weeks into the tariff executive orders so it’s too early to comment with certainty as to how contracts will be impacted or negotiated. Our approach will be to engage with our clients and discuss the most cost-effective ways to manage the tariff risks.

Do you expect issues with tariffs to be temporary or a long-term factor that construction firms need to adapt to permanently?

It’s too early to comment on this.

History would suggest that even when tariffs are removed and trade agreements are reached, costs don’t just return to previous levels.

What policy or industry efforts could help mitigate the impact of tariffs on construction firms?

Estimating professionals will need to take deeper dives into their projects to understand product volumes, sources and tariff impact to assist clients in better understanding the financial impacts of tariffs and potential alternative products and product sources.

Strategic supply chain teams, such as our own at Skanska, will need to remain closely connected to the supply chain and major fabricators of steel and aluminum products as well as other key construction materials that will be impacted by tariffs. It is essential to have this connectivity so that companies such as ours can continue to advise clients and industry partners on the best strategies to mitigate the impact of tariffs.

Projects can benefit by investing additional time into the mapping of the specified materials for the project to determine their source, if those sources are impacted by tariffs and whether alternative products and sources could mitigate financial risk.

 

Source: Construction Dive