Tariffs Got You Tight? Right-Size Your Crew Without Compromise

By Howard Aronson, Workify Chief Executive Officer

In an economy already stretched by labor shortages and supply chain unpredictability, the latest round of tariffs is creating new headwinds for the construction industry—and skilled trades staffing is directly in the crosshairs.

While headlines may focus on global politics or the manufacturing sector, the real impact is often felt on the jobsite. In high-growth states like Arizona, where cranes dot the skyline and demand for skilled trades remains high, added economic uncertainty from tariffs and market volatility can ripple through projects quickly, affecting both budgets and the availability of labor.

What’s Happening with Tariffs?

Recent shifts in trade policy—including the reimposition of tariffs on materials like steel, aluminum, and solar components—are poised to increase the cost of critical building materials. For contractors, this means tighter margins. For developers, it could mean project delays or downsizing. And for the workforce? The effects could go both ways.

In a best-case scenario, project owners will accelerate timelines to beat cost escalations, boosting short-term labor demand. In a worst-case scenario, some may hit pause altogether, leading to uncertainty around workforce planning.

Market Volatility: A Confidence Killer

Market volatility—whether from interest rate fluctuations, political unrest, or slowing construction spending—tends to make builders and developers more cautious. Workforce decisions become more conservative, and permanent hiring slows down.

That's where strategic staffing comes in.

The Role of Strategic Staffing During Uncertainty

Many contractors view outsourced skilled trades staffing as a luxury or an added cost—until times get tight. Then, it becomes a tool for risk mitigation and flexibility.

Here’s why:

• Rising materials costs make it more critical than ever to optimize labor. Every hour worked needs to move the project forward. That means getting the right tradesperson in the right role at the right time—not just anyone with a toolbox.

• Temporary labor allows you to scale intelligently. During slowdowns or pauses, you don’t have to carry full-time headcount that doesn’t align with current project velocity.

• Markets like Arizona are still growing. Even with tariffs, Arizona continues to be a hotbed of activity in semiconductor, EV manufacturing, and clean energy construction. That means skilled labor will stay in demand—but may shift from one segment to another quickly.

Arizona: Resilient but Not Immune

Arizona’s economy has remained strong thanks to major capital investment in industrial and infrastructure projects, especially in and around Phoenix. But even here, we’re seeing signs of pressure:

• Developers are re-evaluating timelines.

• Labor costs are being scrutinized more closely.

• Skilled trades are still in demand—but expectations for ROI are higher than ever.

How Workify Helps Navigate This New Normal

At Workify, we believe staffing is not a cost center—it's a PRECISION RIGHTSIZING strategy. Especially during uncertainty, smart staffing can make the difference between delivering a job on time or being in the red.

We’re not just filling roles. We’re helping contractors right-size their crews, pivot quickly, and de-risk their projects.