Tariffs may slow healthcare construction

October 23, 2018

Tariffs on imported building materials have caused healthcare providers to rethink their construction projects, according to an article on the Modern Healthcare website.

While healthcare construction projects haven't been delayed or canceled yet, the tariffs could have a material impact next year, said Andrew Quirk, senior vice president and national director of the Skanska USA Healthcare Center of Excellence.

On Sept. 24, the Trump administration placed a 10 percent tariff on 5,745 items from China, including concrete and lumber. That will rise to 25 percent in 2019. That's in addition to $50 billion worth of tariffs on Chinese imports that was implemented in August. A 25 percent levy on steel and 10 percent on aluminum imported from a handful of countries already kicked in earlier this year.

Healthcare uses a significant amount of building materials like steel, concrete, glass and specialty finishes that come from outside the U.S. Building material costs account for anywhere from 30 percent to 70 percent of the total budget. 

Read the article.



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