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s Donald Trump's proposed tariffs loom on the horizon, the construction industry is taking proactive steps to stockpile building supplies. This move is expected to boost growth in the industrial outdoor storage (IOS) sector, according to Bisnow. Anirban Basu, chief economist for Associated Builders and Contractors, notes that contractors are buying materials and equipment now to avoid higher costs later due to tariffs.

    The U.S. is bracing for Trump's proposed tariffs, which include 25% on goods from Mexico and Canada, two of the country's largest trading partners for lumber and construction supplies. Ports are experiencing a surge in activity as businesses rush to bring in stock before Trump takes office, Bloomberg reported. Contractors are stockpiling equipment ahead of time due to concerns over the tariff, Basu said.

    This trend is reminiscent of the first Trump administration, where major users of Chinese structural steel hoarded it when a 25% tariff was imposed. As a result, demand for storage skyrocketed. However, IOS itself faces a supply shortage, with many suitable storage yards being redeveloped or zoned out of existence, according to Matt Hunsucker, founder of the newsletter IOS List.

    Contractors are particularly concerned about the impact of tariffs on their projects' profitability. As Basu explained, they don't want to be stuck with higher material costs due to tariffs, which could lead to losses rather than profits.