Mike Hernandez, Technical Director

The Slab Newsletter June 2025

ASCC contractors may need to revisit material prices considering recent tariffs, including the 50% tariff on steel announced last month. In the near term, rebar prices have been rising since January. From June 2–9, four major rebar manufacturers raised prices by $60/ton. If bids were submitted this spring and not yet awarded—or if a contract was just sent to your firm—it would be wise to double-check with your rebar fabricator to confirm whether their proposal remains accurate before executing a new contract.

Members are reminded of ASCC Position Statement #45: Managing Concrete Projects: Concrete / Steel Price and Volatility Risks, which encourages referencing AIA A201-17 on this topic. It outlines various approaches, including requesting payment for stored materials. The position statement recommends that contractors consult legal counsel to develop or review contract language appropriate for their projects. One possible contract clause might read:

“(Client/Contractor/Owner) acknowledges that material prices can fluctuate unexpectedly, and Subcontractor has no control over such material price fluctuations. The subcontractor shall order material quantities for the job and shall be paid for all materials stored for use on the job. Subcontractor shall store materials specifically identified for the job in a manner agreed to by (Client/Contractor/Owner), and all costs of storage shall be reimbursed to Subcontractor as a cost of the work.
If Subcontractor material costs increase, then Subcontractor shall be entitled to a change order for these cost increases.”

Now more than ever, it’s critical to read contract details carefully and negotiate reasonable terms.

Concrete prices should remain mostly unchanged unless you’re ready mixed producer is using imported cement or slag. According to the USGS Mineral Industry Survey, about 20% of the cement used in the U.S. comes from international sources. There are currently nearly 90 cement plants in the U.S., and most are underutilized, either due to unexpected stoppages / down time or a lack of local demand. If your ready mixed producer is citing tariffs as a reason for price increases, it’s worth taking a closer look at what cement is being siloed at your local batch plant. Ready mixed producers know who supplies cement in their market, and there is likely a domestic plant or terminal nearby.

If you need help understanding your local cement supply options, ASCC maintains a map of all U.S. cement plants and hundreds of rail terminals, complete with contact information. Google often struggles to distinguish between concrete contractors, ready mixed plants, and cement facilities. Email me at mhernandez@ascconline.org with your city, and I’ll help you better understand your domestic cement options.

A substantial amount of formwork systems and overlaid formwork plywood are manufactured internationally. Tariffs likely won’t affect rental rates for existing inventory in the U.S., but it’s worth checking if your formwork supplier is not domestic. Economists have reported that the residential construction market is slowing, and home builders are major consumers of dimensional lumber. The National Association of Home Builders noted on June 6, 2025: “Softwood lumber prices have dropped 4.8% over the past month; however, they remain 12.2% higher than one year ago.” Most softwood lumber imports come from Canada, and as of this writing, the exact percentage of tariffs on Canadian lumber remains unresolved. The market for overlaid formwork plywood like MDO and HDO is more international than dimensional lumber, and trends in this niche market are harder to track. Bottom line: ASCC contractors need excellent communication with formwork, lumber, and plywood suppliers during this unstable time.

Engineering News-Record reported last month that overall construction revenue for the Top 400 contractors rose 8% in 2024. However, many are seeing owners cancel or delay project starts “amid confusion over the America First policy,” and interest rates remain high. General contractors are likely seeking more bidders and engaging in more negotiation rounds to keep projects within budget. Know your walk-away number and your schedule.

In short, material pricing is unpredictable. Keep communication lines open with clients, key material and equipment suppliers, and consider qualifying your bids with quoted unit prices for major materials. Know the relevant contract language. Where some see challenges, others see opportunity.

Hope to see you next month in Carlsbad, CA at CELF.