Architectural & Structural Metals Mfrs NAICS 3323

Apr 18, 2025 - Metal Tariffs Impacting Pricing

• 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.
• 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.

• December’s construction hiring numbers – an indicator of future demand for architectural and structural metals – reached their lowest levels since April 2020, according to the recently released US Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. “Construction industry hiring slowed to an unprecedented pace in December,” said Associated Building and Contractors (ABC) chief economist Anirban Basu, adding “The hiring rate fell to 3.6% for the month, the lowest level on record aside from the pandemic-affected month of April 2020.” The industry’s diminished demand for labor may have been due to cold weather and the transition between presidential administrations, Basu said, adding he didn’t expect the trend to continue. According to the ABC Confidence Index, construction companies are planning to add staff this year, “suggesting that hiring could pick up during the first half of 2025,” Basu said.
• Employment by architectural and structural metals manufacturers was relatively unchanged in January compared to a year ago, while average industry wages rose 3.9% over the same period to $26.27 per hour, easing slightly from their record high in November, according to the latest US Bureau of Labor Statistics data. After surging more than 50% in the aftermath of the pandemic, producer prices for architectural and structural metals manufacturers were relatively flat before surging in March 2025 when President Trump raised steel and aluminum import tariffs to the US by 25%, ending all country exemptions, in addition to hiking tariffs on China, according to Reuters. Russian aluminum imports carry a tariff of 200%.