While it is sometimes difficult to understand the rules of the game that we are watching transpire on the field in front of us, we certainly are sitting in a front row seat. That seat was procured through our membership which is comprised of U.S. and Canadian producers and suppliers in the concrete masonry and hardscape industry, as well as contractors of interlocking concrete pavement and segmental retaining walls. At the moment, however, it’s a bit challenging to foresee the outcomes when both the rules and the goalposts keep moving.
While the Trump Administration is positioned to drive significant progress in strengthening the U.S. economy and global market presence, it is crucial that these efforts consider the vital role of manufacturing and construction. These industries are not only the backbone of economic growth but also key to advancing national security and maintaining America’s competitive edge. CMHA urges a balanced approach to policy decisions that empower U.S. businesses, support job creation, and drive long-term success.
Want some examples of some areas of leadership that we believe would benefit our industry AND push America to greatness? Let’s go.
Keep it Moving with Tax Reforms
We can’t say enough positive things about the leadership that President Trump demonstrated in his first term of office to address tax reform. Because of the actions of his Administration in 2017, the U.S. manufacturing industry is more competitive now than before. It’s time now for additional action and 2025 is the year to do it. Many of those reforms (pass-through deductions, corporate tax rates, research and development, full expensing, interest deductibility, estate tax, etc.) have already expired or will expire this year. CMHA is part of the Council of Manufacturing Associations (CMA) of the National Association of Manufacturers (NAM). NAM refers to these tax cuts as “rocket fuel” that we must have renewed and made permanent to drive pro-growth manufacturing visions for America.
You Need People to Build it
The growth goals of the Administration will not be recognized without labor to perform the work. The Associated Builders and Contractors note that an estimated 439,000 net new workers are needed to meet the demand for construction services in 2025. To bridge the gap, we desperately need new solutions such as new temporary work visa programs tailored to the construction industry and other legal immigration reforms are needed. And let’s invest in improved vocational education.
The National Association of Manufacturers reports that there are more than 500,000 currently open jobs in the manufacturing industry. We will need continuing investments in support of a national strategy to revamp our education systems to provide new candidates with the skills to work in modern manufacturing facilities.
Regulatory Certainty is Key
To achieve energy and security objectives, expedited construction of new manufacturing and energy projects will be necessary. American businesses, including concrete product manufacturers, are ready to invest, but we need fewer regulatory burdens and accelerated permitting to make that possible. Most of all, we require regulatory certainty. Make it less expensive and faster to expand and innovate and watch how fast American business will grow.
Avoid the Use of Tariffs as a Weapon
We are and will continue to be a global economy, even after the chaos of tariff reciprocating tariff battles. The US economy will benefit more from common sense trade policies to open markets fairly and effectively.
Certainly, U.S. cement and concrete manufacturers have the capacity to increase production, but only with sustained policies that enhance their competitiveness. Short-term fluctuations in tariffs weaken the ability of manufacturers to invest and adapt. U.S. companies currently rely on foreign suppliers and benefit from international open markets.
Tariffs are more likely to result in rapidly increasing costs in infrastructure, homebuilding, and other construction markets as a result in volatility in the costs of construction materials.
Canadian Concrete is American Concrete
Concrete is created by blending natural and processed raw materials into the strongest and most durable product that you can use to build our schools, homes, and highways. While one can draw lines in sand, it’s hard to draw them in concrete. Members on both sides of our northern and southern border use cement and other constituent materials in the production of concrete. The Portland Cement Association reports that 7% of the cement currently consumed in the United States is imported from Canada and Mexico, while another 13% is imported from other countries. Our industry has thrived as a result of healthy competition between companies on both sides of the borders. Let’s work to build on that rather than threaten that.
Make America Stronger
While much of the Administrations focus might be on expanding the economic and maybe military strength of America, I’d like to highlight the opportunity to make our structures that house us, protect us, and move us stronger and more resilient. We know how to build better, reducing the need for inefficient disaster relief spending on the part of the federal government. Let’s just build it right the first time. The National Institute of Building Sciences reports that “U.S. disaster losses from wind, flood, earthquakes, and fires now average $100 billion per year, and in 2017 exceeded $300 billion – 25% of the $1.3 trillion building value put in place that year.” That same report said that disaster mitigation saves $13 per every $1 invested. Let’s drive new incentives to encourage more investment to achieve that high rate of return. Following disasters, we would get people back in their homes faster; we would get businesses opening back up their doors and ringing the cash register sooner; and we would reduce the burdens on the federal deficit.
As an organization, CMHA really did not come to watch the game. We came, and our members came, to the field to compete and to win. While we are optimistic about the opportunities for concrete products to win in the market, we also believe that we are in a position to help America (and Canada also!) win. We stand ready to support the Administration and Congress to get there.
See you on the field!