Don’t Wait: How Tariffs and Labor Shortages Could Derail Your Remodel Plans in 2025
If you’ve been thinking about a remodel or refreshing your furniture, now is the time to act. Major policy changes announced on November 25, 2024, could increase costs, stretch timelines, and limit your options in the coming months. With a little planning, you can move forward confidently and avoid the pitfalls these changes may bring.
What’s Changing?
Tariffs on Imported Goods
Starting January 20, 2025, new tariffs will add significant costs to many materials and products:
25% tariff on imports from Canada and Mexico.
10% tariff on imports from China.
These tariffs will affect key items for remodeling and furniture procurement, including:
Lumber: Prices for framing, flooring, and cabinetry will rise due to Canada’s role as a top supplier of softwood lumber.
Appliances and Fixtures: Products from brands like Bosch, Samsung, and LG, which are manufactured in Mexico or China, will see price increases.
Furniture: Many furniture manufacturers rely on materials or production facilities in China. This includes both custom designs and mass-market pieces, making it harder to find high-quality options without inflated prices.
Labor Challenges
In addition to tariffs, new immigration enforcement policies are expected to start in January. These changes could:
Reduce the skilled labor pool: Arizona’s construction and remodeling industries rely on immigrant workers. As seen in 2021, workers—both documented and undocumented—may leave the industry due to fears of enforcement and workplace raids.
Increase labor costs: With fewer workers available, labor prices are likely to rise, impacting the cost of your remodel.
Delay projects: A limited labor pool will make it harder to find reliable contractors, leading to longer project timelines.
Supply Chain Uncertainty
Importers are stockpiling materials in anticipation of tariffs, but those stockpiles are expected to dwindle by February 2025. After that, expect delays and higher costs as supply chains adjust to the new rules.
How This Will Impact Your Remodel
Higher Costs Across the Board
Tariffs will directly increase the cost of materials, appliances, and furniture.
Labor shortages could drive up prices for skilled trades and contractors.
Longer Timelines
Supply chain disruptions and reduced labor availability will stretch project timelines, leaving you waiting longer to enjoy your new space.
Fewer Choices
As stockpiles run out and tariffs take effect, your options for materials, fixtures, and furniture may narrow, making it harder to find the perfect pieces.
Why Act Now
If you’re planning a remodel, refreshing your furniture, or tackling a big project, moving forward before January can save you time, money, and stress. Here’s how:
Secure Materials at Current Prices
Purchasing materials now allows you to lock in pre-tariff costs. This applies to everything from lumber and flooring to appliances and fixtures.
Get Ahead of Contractor Shortages
Book your contractor or design-build team early to ensure you’re at the top of their list when schedules fill up.
Avoid Delays
Acting before supply chain disruptions take hold means your project can progress smoothly without waiting on backordered items.
Support Local
Choose locally sourced materials and products to bypass tariff-related price increases while supporting your community.
What You Can Do
If this all feels overwhelming, you’re not alone. These changes are complex, but they don’t have to derail your plans. Here’s what you can do today:
Schedule Your Consultations Now: Designers and contractors are already booking up for 2025, so reach out to start the process before the rush.
Work With Experts: A knowledgeable design team can help you navigate rising costs and material shortages, finding creative solutions to keep your project on track.
Make Decisions Early: The sooner you finalize your plans, the more options you’ll have for materials and pricing.
Looking Ahead
While the new tariffs and labor challenges bring uncertainty, they don’t have to stop your remodel or redesign. By acting now, you can avoid the worst of these changes and ensure your project stays on track. Whether you’re refreshing a historic home or reimagining a custom space, there’s no better time to move forward.
Reach out to learn how we can help you navigate these challenges and bring your vision to life. Your dream space is closer than you think.
