2025 ASCE Report Card Summary & Tariff Chaos

Tariff Perspective, ASCE Report Card Summary on Roads, Bridges, Water and Sanitary Systems, Dams, and the Infrastructure Bill Spending Influence - by Steve Bond

Introduction

Some Tariff Perspective Back in 1990, I was in management and in a leadership role of a business unit owned by one of the largest Portland Cement producers in North America. To put this time in perspective we in Texas were just beginning to make our way back from the depressing grip of the 1986 “Oil Bust – Savings & Loan” market crash that would later be described as a depression within the Texas construction industry. The following year on October 19, 1987 (Black Monday), the Dow Jones Industrial Average plummeted 22.6% in one day, marking the largest one-day percentage drop in history. Additionally foreign cement producers were beginning to dump heavily discounted cement shipments into Texas. Needless to say, those were dark days that I hope I never go through again.

I remember vividly the impact that foreign cement producers had on the market in Texas when cement companies in Mexico were “dumping” their imported cement. As I recall, the “Mill Price” was $30/ton as a result of the pressure created by unfettered foreign cement imports. Consequently, the United States International Trade Commission (USITC) filed an anti-dumping suit against Mexico, alleging that Mexican companies were selling cement in the United States at less than fair value, thereby harming the U.S. cement industry. The conclusion of the suit and the subsequent suspension agreement of the tariffs imposed upon Mexico helped to restore a balanced and transparent trading relationship in the cement industry between the two nations. So, keep in mind that unfair trade practices can be met with tough medicine as we are experiencing now, but there can be greater gain in the future as we attempt to level the “trade” playing field. Just as we have seen in the past, history can be a clear indicator of the future.

ASCE Infrastructure Report Card Summary

The 2025 Report Card for American Infrastructure gives us a detailed look at how the country's important systems are doing. This document covers the current state of roads, bridges, water systems, sanitary systems, and dams, pointing out areas where we need to pay attention and where we are making progress.

Project Spending in 2025 

Adaptation Strategies

The influence of current tariffs and trade chaos on construction spending is profound, affecting material costs, supply chains, investment decisions, and market dynamics. However, through adaptation and strategic planning, Mobile Mix concrete producers can navigate these challenges and continue to drive growth and profitability. Understanding these impacts and crafting market strategy is crucial for stakeholders to make informed decisions and ensure participation within this sector amidst these uncertainties.

Market Segmentation

Concrete Business Solutions has discussed in the past how proper market segmentation can address infrastructure needs. Key points from these discussions include:

• Targeted Investment: Identifying specific segments within the infrastructure market allows for more opportunities

• Customized Solutions: Market segmentation helps develop solutions tailored to the unique challenges of different sectors, while differentiating your product & service offering

• Strategic Planning: Understanding distinct market segments aids in execution of tactics that prioritize key actions for maximum impact.

As we state constantly, there are ways to reduce your exposure to the recent market slowdown while fortifying a diversified market position. A couple of ways to reduce your exposure would be to increase exposure to the Infrastructure/Public Works segment while also surgically carving out opportunities to provide value added products and services within the Residential segment. Think about creating new value-added and unique products that are proprietary to you and your company in addition to specialized services that set you apart from the competition. However, once you develop these differentiable products and services the only way to execute these strategies is via a well-disciplined and professional sales team which must be led by a consistent and disciplined sales management process. There are serious market shifts afoot that some companies may not survive, so Mobile Mix producers beware!

Are you prepared to fend off these challenges? As we have stated in the past maybe you need an objective “look under the hood” to make sure your team is maximizing the opportunities. Give us a call to see how we can help you. www.concretebs.com