Trump, immigration policies and the construction industry
Does your business insurance cover subcontractors? Our exclusive interview with an insurance broker gives insight into this topic and other common construction insurance questions. But first: Check out the video of this construction worker who was freed from under a utility pole.
Here's a peek at what's in today's issue:
// How Trump Administration policies impact your business
// Where they're experimenting with self-heating concrete
// How to make properties more fire-resistant
'It is imperative you confirm the sub has their own insurance'
Will Jeffords is an independent insurance broker and agent/owner of Covington Insurance, L.L.C., with offices in Prosperity, S.C. and Calabash, N.C. He helps businesses find the right policies to reduce risk, cover the cost of damage and protect their enterprise and employees. Here, he shares his advice on shopping for business insurance.
What’s the most important thing construction business owners should know when shopping for business insurance?
Insurance is basically risk assessment. It’s always best for the client to provide as much info as possible regarding everything they do, who they do it for, total sales and payroll. Most insurance companies will do an audit of some kind and the discovery of new or undisclosed information after the fact will only raise the cost of insurance. Also, I find that sometimes a client is hesitant to provide information from their current policy. As an independent agent, I represent many companies. If I know upfront who you currently have insurance with, for what and how much you’re paying, it helps with my assessment of who to check with for alternative quotes.
What’s one thing you wish more construction company leaders knew about business insurance?
If a construction company uses subcontractors, it is imperative you confirm the sub has their own insurance, and — one step better — ask that you be listed on the sub's insurance. In this line of business, it’s not uncommon for the client to consider subs covered under their policy. If this is done, the upfront disclosure of total sales and payroll must include subs. As mentioned previously, the insurance carrier will conduct audits after a policy is issued and this can change insurance pricing.
Anything else we should know?
One more thing: If you’re new in business, you may not qualify for a standard policy. Instead, you’ll need what’s called a brokered policy. That’s when I source separate coverages from a handful of different carriers to meet your specific needs. While a brokered policy may be more expensive, it may be the only option available until you have a few years in business.
>> Who we're following: Alexandra Carter on LinkedIn. An attorney and negotiation expert, Carter shares tips and videos on asking for more compensation, navigating difficult conversations and positioning yourself for a positive outcome.
>> What we're listening to: "Why Climate Action is Good Business." The most recent edition of the Building Good podcast focuses on the commercial upsides of climate action. Though focused on Canada, the insights are applicable to U.S. businesses, too.
>> What we're watching: "Building the Bell Rock Lighthouse." The latest installment of the Secret Life of Lighthouses series looks at how this North Sea structure was constructed under harrowing conditions in the early 1800s.
>> What's happening soon: The 2025 NAHB International Builders' Show (Feb. 25-27) in Las Vegas.
>> Just for fun: Have you tried hurkle-durkling? This trendy alternative to jumping right out of bed in the morning is actually ages old and writer Arricca Elin SanSone finds it energizing.
Trump II: Trade and immigration will impact construction
Since taking office last week, President Trump offered more details on upcoming immigration and trade policy changes that have a direct bearing on construction.
Tariffs on imports from Canada, China and Mexico — some as high as 25% — are billed as a shot in the arm for American companies. Forbes senior staff writer Natalie Campisi reports that, “History shows that such tariffs often lead to higher consumer costs, particularly in the housing market.” The NAHB found that the cost increase from Trump I tariffs on Canadian softwood lumber drove the price of new single-family homes up an average of $9,000.
Labor shortages and construction delays are likely to worsen in the wake of the administration’s crackdown on immigration, including an executive order intended to end birthright citizenship and an emergency declaration at the U.S.-Mexico border. According to the 2023 Bureau of Labor Statistics data, foreign-born employees (13.8%) were more likely than native-born ones (7.8%) to work in construction. A new report from the Associated Builders and Contractors predicts the industry needs to recruit an estimated 439,000 net new workers this year to address anticipated demand.
Why it matters: The President’s moves put the squeeze on construction companies, particularly homebuilders. “No question, tariffs will increase construction costs," asserts Andra Ghent, professor of finance at the University of Utah and Ivory-Boyer Chair in Real Estate. "Construction costs were already rising much faster than inflation in the year before Trump took office, so the tariffs are bad news." And the immigration restrictions further constrict the available workforce. “The industry is already struggling with a workforce shortage — there are nearly 500,000 open positions,” says George Carrillo, CEO of the Hispanic Construction Council. “Without enough workers, projects get delayed or canceled, and costs rise.” (Forbes)
>> Data Dump: Almost half of the world's data centers are in the U.S.
>> Crew Concerns: Workforce safety and legal compliance after fires
>> Digging Dallas: 'The Big D' leads U.S. hotel construction
>> Company Culture: How to support fairness, access and inclusion
Better Building: Making structures less likely to burn
While all the attention has rightly been on the L.A. area, wildfires can, and do, occur anywhere. That means constructing with fire resistance in mind is crucial no matter where you build. A recent NPR report shared three effective tactics from the Insurance Institute for Business & Home Safety:
- “Hardening” buildings with fire-resistant roofing, enclosed eaves, non-combustible siding, metal gutters and ember-proof venting, among other techniques.
- Maintaining “defensible space” by removing flammable landscaping and other items, and installing hardscaping within at least five feet of a structure.
- Establishing buffers of at least 20 feet between structures, including outbuildings and garages. An IIBHS team found that more than half the homes destroyed by the Palisades fire were closer together than this.
Why it matters: Making structures more resistant reduces fire damage in the immediate area and lowers the likelihood of radiant heat and embers igniting structures further away. "We're not going to be able to keep fires out from every community under every situation," explains the Institute's Steve Hawks, "so we need to prepare communities and that's at the parcel level." (NPR)
Safer Surface: Snow-melting concrete
Researchers at Drexel University’s Advanced Infrastructure Materials Lab have developed a self-heating concrete to ease icy conditions on streets and sidewalks. The team created two products that include paraffin wax. As the wax hardens in cold conditions, it gives off heat (called phase change).
Why it matters: The new material could reduce the need for road salting and brining, and the associated environmental and financial impacts. “You want to do a combination of, maybe, salt and this technology,” says Amir Farnam, the associate engineering professor who leads the lab. “Even a 50% reduction in salt use in 10 to 15 years of a road’s service life — that’s enormous. You save costs, energy, and you can extend the service life. Instead of a road that lasts 10 years, you could have 20 years.” (The Bradford Era)
- Explore modified bitumen roof assemblies Tune into this BNP webinar on Feb. 12. to see how to use asphaltic material from members of GAF and Siplast's building and roofing science team.
- Discover more insights into Trump II Get an in-depth analysis of anticipated changes to federal tax, regulatory and trade policies when the Mechanical Contractors Association of America hosts Daniel Bunn, president and CEO of the Tax Foundation for a Feb. 6 webinar.
- Leverage DEI to grow your business Take this on-demand online course from the Stanford Graduate Business School to create and maintain a workforce that fosters innovation and creativity.
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The Level is written by Margot Lester and edited by Katie Parsons.
