construction supply chain crisis – how to adapt
As we move deeper into 2025, Vancouver’s builders, investors, and landowners face intensifying disruptions in their construction supply chains caused by U.S. tariffs. Beyond simply increasing material costs, these tariffs have disrupted critical supply routes and forced an urgent shift toward alternative suppliers and solutions.
This analysis provides a clear, actionable assessment of where disruptions are most severe, how Canadian industries are pivoting, and what strategic moves builders and developers should make immediately to protect project timelines and profitability.
what’s driving the disruptions
The 25% U.S. tariffs imposed on Canadian goods have severely strained integrated supply chains across construction sectors. Materials particularly affected include:
steel products: Structural beams, rebar, steel studs, and fasteners typically sourced from the U.S. Northwest are now significantly more expensive or unavailable.
aluminum components: Window frames, curtain walls, siding, and various fixtures face similar price hikes.
softwood lumber: British Columbia’s lumber exports face compounded tariffs, causing volatility and potential short-term oversupply domestically followed by potential mill curtailments.
mechanical and electrical systems: HVAC units, elevators, and advanced building systems sourced from U.S. manufacturers face immediate cost increases and delivery delays.
finishing products and fixtures: Glass, appliances, hardware, cabinetry, and flooring, heavily imported from the U.S., are experiencing substantial disruptions.
These disruptions threaten not only the timing and budget of current projects but also the feasibility of upcoming developments.
canadian suppliers shift to local markets
One direct consequence of the tariffs is that Canadian suppliers previously oriented toward U.S. markets now find themselves redirecting sales to domestic buyers. This redirection can potentially stabilize the local supply chain but requires careful management:
metal industries (steel and aluminum): Previously exporting large volumes to the U.S., Canadian mills like Algoma, Stelco, and Rio Tinto are adjusting production to cater to domestic demand or alternative international markets.
softwood lumber: British Columbia lumber producers (e.g., Canfor, West Fraser) are exploring increased sales within Canada and expanding exports to Asia (particularly China and Japan), stabilizing domestic availability in the medium term.
manufactured building components: Companies producing prefabricated structural systems, engineered wood products, and specialty materials are shifting more capacity toward local projects, presenting new opportunities for Canadian developers.
global alternatives emerge for builders
Canadian trade agreements such as the Comprehensive Economic and Trade Agreement (CETA) with Europe and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) offer significant opportunities to diversify international sourcing and mitigate supply chain disruption:
European suppliers: Steel and aluminum products from Germany, engineered timber from Austria, curtain wall glass systems, and high-end fixtures from Italy or Spain can enter Canada tariff-free under CETA.
Asia-pacific region: Steel, cement, glass, hardware, and appliances from Japan, South Korea, and Vietnam become attractive alternatives, tariff-free through CPTPP.
Mexico: Under the USMCA, Mexican suppliers offer competitive steel, cement, drywall, and appliance alternatives, creating viable supply routes that bypass U.S. tariffs entirely.
These international partnerships can significantly cushion supply chain shocks, though builders should anticipate logistical adjustments and potential delays in establishing new trade routes.
immediate strategies to protect your projects
To mitigate ongoing disruptions, Vancouver’s developers and builders should implement these strategies immediately:
diversify suppliers early: Establish relationships and procurement agreements with alternate suppliers in Europe, Asia, and Mexico now, rather than reacting later when shortages intensify.
revisit project design & specifications: Where feasible, adjust project specifications to utilize readily available alternative materials or suppliers, reducing exposure to tariff-impacted products.
build strong local and regional networks: Leverage strengthened relationships with Canadian suppliers, who may prioritize local buyers previously overlooked due to U.S. export opportunities.
policy and trade awareness: Stay informed of evolving trade policies, international agreements, and Canadian government interventions designed to ease tariff-related pressures.
Taking these proactive measures positions builders to weather current disruptions effectively, protecting project feasibility, timelines, and investment returns.
considering selling? discreet help available
In a disrupted environment like this, builders, investors, and landowners may find themselves facing tough decisions—particularly if project timelines, investment returns, or land valuations are no longer aligning with expectations. If tariffs and supply chain disruptions have put your property or project under pressure, quietly exploring a sale or strategic disposition might be your best move.
As an experienced broker specializing in multifamily and development land, my role isn’t managing suppliers—it’s connecting your property discreetly and effectively with qualified buyers. I offer the market expertise, confidentiality, and strategic insight you need to protect your interests and achieve the strongest possible outcome.
If you’re considering selling or need strategic advice about your property’s next steps in this challenging market, let’s talk.
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Altus Group. (2025, February 26). Trade Tensions: What Could Tariffs Mean for Canada’s Construction Market?Retrieved from https://www.altusgroup.com/insights/trade-tensions-tariffs-mean-for-canada-construction-market/
Canadian Home Builders’ Association. (2025, February 4). 25% Tariff Hike Harms Housing Affordability. Retrieved from https://www.chba.ca
Global News. (2025, February 1). How a Trade War and U.S. Tariffs Could Hit Canada’s Housing Market. Retrieved from https://globalnews.ca
Reuters. (2025, March 4). Teck CEO Says Miner Could Sell to Asia to Avoid Trump’s New Tariffs. Retrieved from https://www.reuters.com
National Association of Home Builders. (2025, February 4). 25% Tariff Hike Harms Housing Affordability. Retrieved from https://www.nahb.org
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