📅 Tuesday, March 18, 2025
🛠 Helping Residential Contractors & Subs Build Smarter, Work Safer, and Grow Faster
🚧 Today’s Rundown
🔹 How Tariffs on Building Materials Are Impacting Contractors
🔹 3 Things Every Contractor Should Automate to Save Time & Increase Profits
🔹 Tool Spotlight: Best Work Truck Accessories for 2025
🏗️ Feature Story: How Tariffs on Building Materials Are Impacting Contractors
📉 What’s Happening?
The Trump administration’s tariffs on imported materials—especially lumber, steel, and aluminum from Canada, Mexico, and China—are driving up construction costs. With some tariffs already in effect and others set to increase, builders and remodelers are paying more for essential materials, leading to higher home prices, project delays, and fewer jobs booked. https://www.pbs.org/newshour/politics/tariffs-on-lumber-appliances-set-stage-for-higher-costs-on-new-homes-and-remodeling-projects
According to the National Association of Home Builders (NAHB):
✔️ The cost to build a single-family home has increased by $7,500 to $10,000 due to tariffs.
✔️ Lumber prices have risen nearly 40% due to ongoing tariff policies.
✔️ Building materials costs have surged 34% since December 2020.
📌 Why It Matters for Contractors
🔹 Higher Material Costs = Lower Margins
Builders and subcontractors are forced to absorb increased costs or pass them on to clients—either way, profits take a hit.
🔹 Homeowners May Delay or Cancel Projects
Higher construction costs mean fewer homeowners can afford remodels or new builds, potentially leading to fewer job opportunities.
🔹 Supply Chain Disruptions Continue
Many contractors rely on Canadian lumber and Mexican gypsum (drywall), both of which have been heavily impacted by tariffs.
🔹 Larger Companies May Dominate
Smaller builders and suppliers struggle to absorb cost increases, while larger companies can bulk-purchase materials at better rates.
💡 How Contractors Can Adapt & Stay Profitable
✅ Lock in Pricing Early
Work closely with suppliers to secure pricing before tariffs increase further.
Offer clients material cost guarantees for a limited time to encourage faster decision-making.
✅ Find Alternative Suppliers & Materials
Look at domestic suppliers that may not be affected by tariffs.
Consider using engineered wood products or alternative framing materials to offset lumber price hikes.
✅ Educate Clients on Cost Increases
Be upfront with homeowners about why prices are rising and how they can prepare for material cost fluctuations.
Offer financing options to help clients manage higher budgets.
✅ Adjust Contracts to Include Price Escalation Clauses
Ensure contracts allow for cost adjustments if material prices rise unexpectedly during a project.
Make change orders mandatory for any material substitution due to cost increases.
🚀 Pro Tip: Clients who hesitate on projects due to cost concerns can be encouraged to sign contracts early before further tariff-driven price hikes.
📌 Take Action This Week
✔️ Talk to suppliers about locking in pricing before the next tariff wave.
✔️ Adjust your estimates to reflect rising material costs.
✔️ Update contracts with price escalation clauses to protect profits.
✔️ Communicate with clients—explain that waiting may cost them more in the long run.
🔹 The contractors who adapt to price increases now will be in the best position to stay profitable in the months ahead.
Would you like a price escalation clause template to add to your contracts? 📑💰
📌 Business Tip: 3 Things Every Contractor Should Automate to Save Time & Increase Profits
Time is one of your most valuable assets as a contractor. The more time you spend chasing leads, following up on invoices, and managing schedules manually, the less time you have to focus on actual projects and growing your business.
The solution? Automation.
By automating key parts of your business, you can reduce administrative work, improve efficiency, and increase profitability—without needing to hire more staff. Here are three high-impact areas where automation can make a real difference:
1️⃣ Automate Lead Follow-Ups – Close More Jobs with Less Effort
📉 What’s the Problem?
Most contractors lose leads because they don’t follow up fast enough.
62% of contractors don’t respond to new inquiries within 24 hours—and speed matters.
Homeowners go with the first contractor who follows up and stays engaged.
💡 How to Automate It:
✅ Set up an email & text auto-responder to reply instantly when a new lead comes in.
✅ Use a CRM (Customer Relationship Management) tool to track & automate follow-ups.
✅ Create a drip email/text sequence that keeps leads engaged without manual effort.
🚀 Pro Tip: A simple 5-minute response time can increase conversion rates by 300%.
📌 Recommended Tools: Mailchimp, ActiveCampaign, Podium, JobNimbus
2️⃣ Automate Invoicing & Payment Reminders – Get Paid Faster
📉 What’s the Problem?
Clients forget to pay, leading to cash flow problems for your business.
You waste hours chasing payments instead of focusing on new jobs.
Late payments lead to delays in ordering materials & paying subcontractors.
💡 How to Automate It:
✅ Set up automated invoicing so clients receive instant payment requests when a job phase is completed.
✅ Use automated payment reminders to follow up before, on, and after due dates.
✅ Offer online payment options so clients can pay instantly instead of mailing checks.
🚀 Pro Tip: Contractors who offer online payments and send automated reminders get paid 30% faster than those who don’t.
📌 Recommended Tools: QuickBooks, Square, HoneyBook, Jobber
3️⃣ Automate Job Scheduling – Keep Projects Running Smoothly
📉 What’s the Problem?
Double-booking crews, scheduling conflicts, and missed deadlines cost time & money.
Manually tracking schedules through spreadsheets or whiteboards is inefficient.
Last-minute changes cause chaos if everyone isn’t on the same page.
💡 How to Automate It:
✅ Use a digital scheduling tool to assign jobs & track crew availability in real-time.
✅ Give clients & subcontractors access to view schedules and reduce unnecessary calls.
✅ Sync Google Calendar, Outlook, or a contractor-specific app to keep everyone on the same page.
🚀 Pro Tip: Digital scheduling reduces job delays by 20% and eliminates miscommunication errors.
📌 Recommended Tools: Buildertrend, CoConstruct, Google Calendar, JobNimbus
🚀 Take Action This Week
✔️ Pick one area of your business to automate—leads, invoicing, or scheduling.
✔️ Set up basic automation (even simple email reminders can save you hours).
✔️ Train your team on the new system so it runs smoothly.
💡 Automating even ONE process can free up hours per week, help you close more jobs, and improve cash flow.
Would you like a step-by-step guide to setting up automation in your business? 📑🚀
🛠️ Quick Bites
📌 Business Tip: 3 Things Every Contractor Should Automate to Save Time & Increase Profits
🔹 Lead Follow-Ups – Use email/text automation to respond faster and close more jobs.
🔹 Invoicing & Payment Reminders – Avoid late payments with automated billing & reminders.
🔹 Job Scheduling – Sync a digital calendar with client bookings, crew availability, and deadlines.
🚀 Pro Tip: Automating just one of these areas can save you hours per week and improve cash flow.
⚡ Tool Spotlight: Best Work Truck Accessories for 2025
🔹 DECKED Truck Drawer System – Organize tools, secure materials, and increase efficiency on the job site.
😂 Contractor Humor: "Why did the contractor carry a ladder everywhere? Because he always wanted to take things to the next level!"
📣 Call to Action
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👷♂️ Stay safe, keep building smarter!
— Benjamin Patton