Tariffs contributing to delayed and canceled projects

Rising construction costs fueled by tariffs are pushing owners and developers to delay and cancel projects, according to ConstructConnect.

ConstructConnect’s Project Stress Index, a measure of construction projects that have been delayed or abandoned, jumped 19.9% from October to November. The increase raised the benchmark about 25.7% above its 2021 baseline.

Prior to the start of the Trump tariffs, construction companies had stockpiled supplies but are depleting them and must now resupply at higher costs. Project abandonments jumped 41.1% in November—one of the largest monthly jumps of the year. Projects put on hold also rose sharply, up 16.5% in November.

Projects placed on hold in the private sector spiked a whopping 252.6% compared to the same period last year while public on-hold activity fell 19% over the past 12 months. Overall stress conditions now sit 9.9% higher than the same period in 2024.