After a rough-and-tumble week of tariff roulette, one thing seems certain: Fleet managers face uncertainty when making long-range fleet decisions. “It’s business as usual right now,” says one manager, “with inquiring eyes peering into the news.”
Equipment managers expect tariffs, whatever the value du jour, to increase the cost of equipment and parts for suppliers. And most expect those costs to be passed along to the fleet.
Resources for managing equipment costs
- Asset management in an inflationary environment.
- Attack the causes of equipment costs.
- Choose the right equipment rate methodology.
- A smart approach to acquisitions.
- How to use cost history to determine remaining life.
- Equipment as a Service as an alternative to owning or renting.
According to Associated Builders and Contractors, producer prices for construction machinery and equipment held steady in March. Prices are up 0.7% compared to March 2024, and 30% since February 2020.
“Construction input prices increased at a rapid pace for the third consecutive month in March and have now risen at a 9.7% annualized rate through the first quarter of 2025,” said Anirban Basu, chief economist, in a statement. “The emerging effects of tariffs are glaring in the March data release, with iron and steel, steel mill products and copper wire and cable prices all rising more than 5% for the month.”
ABC also said increases in backlog, measured by its Construction Backlog Indicator, were related to price increases from tariffs. It said 20% of respondents had projects paused or interrupted because of tariffs during March. Eight of 10 had been notified by suppliers that prices would be increasing because of tariffs.
For some fleets that are looking at upcoming projects, the uncertainty plays real games with availability and future equipment rates. Do fleets build in rental rates rather than an equipment rate based on unknown acquisition costs not only for new machines but also for the necessary parts?
Uncertainty also plagues many large fleets with set replacement schedules. For example, a fleet that manages fleet age for dozens of excavators, knows that a certain number of machines must be replaced this year regardless of cost. Fleets without a replacement plan may opt to stay out of the market, push fleet age, and attempt to maintain equipment rates. Managers then must balance the risk of rising maintenance costs outpacing new equipment prices.
“There are lots of questions,” says one manager. “Not many answers.”
Industry responses to tariffs
Construction Equipment’s parent company, Endeavor Business Media, covers myriad industries related to construction...and some that arent. Here’s a sample of our coverage.
- Business leaders respond to tariffs, a report from Endeavor Business Intelligence.
- Tariffs and the cost of road construction, from Roads & Bridges.
- Trucking and tariffs, from Fleet Owner.
- Angst within the mechanical contracting industry, from Contractor.
- Fluid power industry negatively impacted, from Power&Motion.
- Challenges and opportunities for manufacturers, from Industry Week.
- Reshoring and tariffs, from Plastics Machinery & Manufacturing.
About the Author
Rod Sutton
Sutton served as the editorial lead of Construction Equipment from 2001 through 2025.