Western Edition
Published Nationally ® March 18 2018 Vol. IX • No. 6
“The Nation’s Best Read Construction Newspaper… Founded 1957.” 470 Maryland Drive • Ft. Washington, PA 19034 • 215-885-2900 • Toll Free 800-523-2200 • www.constructionequipmentguide.com
Inside
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$1B Arena Awaits Warriors’ Return to Frisco
Sukut Equipment Experiences Meteoric Growth...10
CCE Acquires Bobcat Rights in W. Texas...30
Golden State Warriors photo
Chase Center and the surrounding area is now 40 percent complete. see story page 15
WSM Auctioneers Holds March Sale in Phoenix...58
Impact of Steel Tariffs: The Industry Reacts By Giles Lambertson
Table of Contents ................4 California Section ........15-21 Asphalt, Concrete, Paving, Compaction & Milling Section ........................ 37-53 Business Calendar ............44 Auction Section ..........57-61 Advertisers Index ..............62
CEG CORRESPONDENT
Some construction and heavy equipment associations expressed utter dismay recently at the Trump Administration’s steel and aluminum tariff decision. Yet other industry reactions to the Mar. 8 announcement were more measured, almost hopeful. The disparity in responses is a reminder that economics is not a hard science, let alone a settled one. The eventual impact of steel and aluminum tariffs is unknown, the ultimate consequences unset in concrete. Tariffs may, in fact, be more
political science than anything else. They are enacted on behalf of targeted constituencies, often are employed as a negotiating tactic, and are arbitrarily imposed and rescinded. They are very much a political tool. Which is not to say a 25 percent tariff on imported steel and 10 percent tariff on aluminum is without economic consequence. Costs Will Rise “If you accept the premise that steel is used in construction, then construction workers are going to be hurt some,” said Dr. Peri da Silva, an international trade economist in the Department of
Economics faculty of Kansas State University. “There are not a lot of other ways to say that. Anyone who uses steel is going to be economically hurt. Everyone who works in industries that use steel will lose a little bit, and the steel industry is going to benefit.” Without question, the price of steel and aluminum products will go up, so profit margins will be squeezed. Rebar and steel beams for bridges or multistory structures will cost more, so project costs will increase. Heavy equipment manufacturers will pay more for steel and aluminum components, so machines will cost more to pro-
duce, a cost they may pass along to customers. Terex Corp. already has announced it will impose a surcharge on its equipment to offset new costs incurred from the tariffs. The Associated Equipment Manufacturers certainly was not pleased at news of the tariffs. “The equipment manufacturing industry is profoundly disappointed at President Trump’s actions today to advance import tariffs on steel and aluminum,” said Dennis Slater, AEM president. “These ‘Trump Tariffs’ will put U.S. equipment manufacturers at a competitive disadvantage, risk undoing see TARIFFS page 28