Buy America provisions can improve construction lead times — for a price

Abstract

A reliance on construction materials produced overseas has left U.S. contractors susceptible to long lead times and extreme price volatility, especially since the COVID-19 pandemic slowed global supply chains. The top countries the U.S. imports construction materials from include nations in the European Union as well as China, South Korea, Canada and Japan, said Joe Natarelli, managing partner in Marcum's New Haven, Connecticut, office. Joe Natarelli Permission granted by Marcum The main building materials sourced outside of the United States are some of the most foundational materials used in construction. New "Buy America" provisions for publicly funded projects will require government-funded projects to use construction materials that are made in the United States. Many building groups have pushed back on the Biden administration's onshoring initiative, claiming some materials simply aren't available domestically at any price and will cause even more construction delays. High material prices were also recently identified as "The biggest challenge right now for the construction industry," according to Felice Farber, executive director of the Subcontractors Trade Association, a New York-based association of union subcontractors. Despite the increased urgency to buy construction materials closer to the projects they help build, LePatner said the make-it-here push "Will be a slow transition for the next few years" for projects not under federal guidelines.