Our city has weathered a lot in recent years, but Nashville’s commercial construction industry is now facing a new challenge: tariffs and the ripple effects they may have. These changes raise important questions: How can we keep projects on track? What strategies actually help reduce risk? And how can developers continue to build effectively in the face of unpredictable market shifts?
At Crain Construction, we know challenges like this come with the territory. After more than 90 years in the commercial construction industry, we’ve weathered a number of market cycles. And while no one can predict exactly how tariffs will evolve, we believe in rolling up our sleeves and solving problems alongside our clients. In this post, we’ll take a look at what we’re seeing on the ground and how we’re helping project owners adapt with confidence.
How Tariffs are Impacting Commercial Construction in 2025
The impact of tariffs is showing up in both material pricing and availability. At the time we’re publishing this post, steel and aluminum tariffs have risen by 50%. As a result, structural steel costs are now 5% to 8% higher. At the same time, coil-based steel products—such as metal studs, windows, doors, stairs, and railings—have seen increases of 50% to 54%.
Material packages that once had predictable costs and delivery windows now have greater volatility. Many of these components are foundational to key scopes of work involving framing, drywall, and exterior systems.
What does this mean for commercial construction projects in Nashville? Simply put, it makes planning more complex. Developers and contractors alike are being challenged to adjust procurement strategies mid-project to account for shifting costs and extended timelines.
Crain’s Approach to Managing Tariffs
Our goal is always to deliver value for our clients, even when market conditions shift. Here are some of the practical strategies we’re using to help minimize risk, maintain momentum, and keep projects on budget despite the uncertainty surrounding tariffs:
1. Strengthen relationships with U.S.-based suppliers.
One of the first steps we’ve taken is evaluating whether materials can be sourced from domestic suppliers. While U.S.-based options may have longer lead times, we prioritize working with trade partners we know and trust.
We’ve built strong relationships with trade partners over many decades, giving us more visibility into availability and pricing trends. When possible, domestic sourcing helps us avoid some of the sharpest cost increases caused by international tariffs.
2. Procure materials earlier in the process.
In today’s market, timing is everything. We’re working with clients to implement creative procurement strategies and lock in materials earlier than we might have in previous years. This not only helps us beat supply chain disruptions, but also allows us to secure pricing before costs escalate further.
Our team is also exploring alternative suppliers with the flexibility to divert their supply chains domestically, offering more agility when materials are at risk of becoming cost-prohibitive.
3. Plan for the unexpected.
Given the current climate, contingency planning is essential. We help clients build flexibility into their budgets and timelines so they can pivot when needed. This might include identifying alternative materials, preparing for cost escalation clauses, or using index-based pricing models for high-risk components. The goal is to anticipate swings in the market and create a proactive framework that propels the project forward.
4. Leverage economies of scale.
For developers with multiple projects in the pipeline, bundling material purchases can be an effective way to offset tariff-related costs. By packing projects together and negotiating directly with fabricators, we can often secure volume-based pricing and more stable supply agreements. This approach is particularly beneficial in sectors like hospitality, industrial, and retail development, where project portfolios often include repeat elements or standardized packages.
5. Lean on a strong pre-construction team
Behind every successful strategy is a team that sees the big picture. Crain’s pre-construction team plays a critical role in helping clients navigate tariff-related questions long before construction begins. By working closely with project managers, trade partners, and suppliers, our preconstruction team identifies risk factors early, develops creative procurement plans, and builds contingencies into each estimate.
Our preconstruction team has the ability to think several steps ahead and turn challenges into opportunities with a realistic view of what’s possible in a shifting market. It’s just one more way we aim to reduce surprises and deliver value, no matter what the market throws our way.
Building Value, No Matter the Challenge
Tariffs may be adding new layers of complexity to the construction process, but they don’t have to stall your project. With the right strategies, it’s still possible to keep projects on schedule and on budget. At Crain Construction, we’re committed to being a steady partner through it all by helping our clients plan ahead, pivot quickly, and build smart in any market.
If you’re considering a commercial building project in Nashville and want to better understand how tariffs could impact your plans, we’d love to talk. Connect with our team to learn more about our approach and how we can help you achieve your goals, even in tough market conditions.
