Description

In this episode of the Risky Planner Podcast, hosts Nate and Albert reunite after Albert's travels to Dubai to discuss the impact of Trump's recently announced tariffs on steel and aluminum imports. They explore how these tariffs affect capital projects across various industries, particularly construction and energy infrastructure. Albert provides context about the evolution of tariff threats from earlier blanket proposals targeting countries like Canada and Mexico to the current focus on specific materials. The hosts examine how these tariffs create uncertainty in project planning, potentially causing issues with locked-in pricing, contractor insolvency risks, and the need to recalculate cost estimates. They also discuss alternative construction approaches, such as using cross-laminated timber, that might gain popularity as organizations look to mitigate rising steel costs. Tune in at www.riskyplanner.com to learn how project leaders can navigate this uncertain landscape in capital project management.

Here are the key takeaways from the podcast episode:

• Trump recently announced 25% tariffs on steel and aluminum imports affecting all countries
• These tariffs create significant uncertainty for capital projects that rely on these materials
• Projects with locked-in pricing may face contractor change orders or supplier insolvency risks
• Cost estimators will need to revise budgets since current pricing databases don't account for these tariffs
• Energy sector projects (data centers, grid infrastructure, renewable energy) face particular challenges as demand grows
• Alternative materials like cross-laminated timber may see increased adoption as organizations seek alternatives
• Organizations face difficult decisions: absorb costs, delay projects, or seek alternative construction methods
• Long-term capital planning (5-15 years) becomes more complicated with unpredictable material costs
• Project leaders should keep options open and consider alternative ways to achieve project goals
• The uncertainty may drive innovation in construction and infrastructure development

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The Risky Planner podcast delivers expert insights on project controls, capital project management, and strategic planning for today's complex business environment. Subscribe for regular episodes featuring industry leaders and practical advice.