Tariffs, Inflation, and the Pricing Puzzle: What's Really Driving Construction Costs

Prices keep climbing. Contractors are feeling it. Estimators are working harder to keep bids accurate. And the easy answer everyone reaches for is the same: tariffs. But is that actually the full story? In this episode, host Chris Trommer sits back down with Keith Prather to unpack the real forces moving material prices right now. Keith walks through why tariffs function as a one-time market adjustment, what takes over once that adjustment works through the channel, and how classic supply and demand dynamics are quietly doing more of the heavy lifting than the headlines suggest. They also get into the concept of price elasticity and why some materials behave very differently from others as costs climb, plus how recent policy uncertainty has rippled through inflation forecasts and pricing strategies across the industry. If you've been wondering why prices keep moving and what's really behind it, this conversation gives you a clearer framework to make sense of the market. What You'll Learn • Why tariffs act as a one-time market adjustment, not a continuous price driver • How supply and demand dynamics take over once tariffs are absorbed • What price elasticity means and why some materials react differently from others • How policy uncertainty is shaping inflation forecasts heading into 2026 • Why two companies in the same industry can land on very different pricing strategies • How contractors and estimators can read the market more accurately right now