Architectural & Structural Metals Mfrs NAICS 3323

May 18, 2025 - Tariffs Boosting Business

• Higher trade barriers are creating opportunities for some small US companies including Ellwood Group, a maker of forged steel, nickel, and aluminum products, The Wall Street Journal reported in April. The Pennsylvania-based company saw its sales jump 35% in the first quarter compared to Q4 2024, driven in part by tariffs that only came into effect in mid-March, according to WSJ. The company credited the jump in new orders to large construction projects that use finished steel diversifying away from Asian suppliers to US customers that use its products. Ellwood’s chairman said construction customers are diversifying and reshoring to de-risk foreign supply chains. The company, which has about 2,000 employees, says it's adding staff to handle the new business. How many metals firms ultimately benefit from President Trump’s trade war remains to be seen as tariffs cut both ways, raising input prices for companies that purchase metals.
• US engineering and construction spending – a driver of demand for architectural and structural metals – is forecast to rise a modest 2% this year, a notable slowdown compared to the 7% growth seen in 2024, according to FMI’s second-quarter 2025 North American Engineering and Construction Outlook released in April. FMI’s second quarter 2025 Nonresidential Construction Index (NRCI) dropped sharply to 43.5 from 56.9, a 24% decline from the previous quarter. While many private nonresidential sectors are expected to decline this year, spending on data centers and chip fabrication plants is forecast to rise. Meanwhile, public nonresidential construction will tick slowly upward as past infrastructure legislation finally gets translated into actual activity. Looking farther ahead, FMI anticipates that while construction spending will continue to expand, it will transition from a five-year period of 40% growth to just 4% year-over-year growth through 2029.

• More companies are considering sourcing from US-based mills to avoid stiff tariffs on imported steel and benefit from the reliability and timeliness offered by shorter supply chains, according to metals service center Mead Metals. Makers of steel products who reshore their supply chains can benefit from relationships with local mills and service centers that offer just-in-time shipping and proximity advantages that reduce inventory, logistics costs, and lead times. But with demand for local suppliers rising, purchasing managers could see tight availability for certain metals, underscoring the need for proactive sourcing and flexible inventory strategies, according to Mead Metals. A 2019 Federal Reserve Board study found that while tariffs imposed by the first Trump administration increased US steel production, the resulting higher input costs reduced manufacturing jobs, relative to what it would have been without tariffs, and raised production costs for metal-based goods.
• The latest producer price index (PPI) data from the Labor Department reveals architectural and structural metals manufacturers are feeling the sting of President Trump’s import tariffs on metals. Companies that rely on aluminum and steel products experienced rapidly rising prices in March following the White House’s 25% tariff on all aluminum and steel imports. Producer prices for ornamental and architectural metalwork products jumped 11.2% in March compared to February after rising 1.6% in the previous monthly comparison. On an annual basis, ornamental and architectural metalwork prices rose 21% compared to March 2024. Producer prices for metal window manufacturers and makers of metal doors and frames also increased in March, up 2.1% and 1% month-over-month, respectively, per the Labor Department. The full force of the tariffs on aluminum and steel should be felt in April’s producer price comparisons.