The Canadian roofing industry is a strong one, but like all industries, it is not immune to pricing fluctuations – especially as they pertain to imposed tariffs. Elite Roofing, like many throughout Toronto, is used to dealing with the ebb and flow of tariffs on roofing materials in Canada. They come, they go, the industry adapts and adjusts.
This is certainly a timely issue for Canada, as U.S. President Donald Trump imposed a 25 percent tariff on Canadian imports after his Congress address on Tuesday, March 4. This is a fluid situation, and we know from experience how quickly things can change.
We will take a general look at tariffs and how they affect roofing material prices and contractors in Canada. The quality and availability of roofing materials can’t be understated in Toronto, home to 2.8 million people and a robust business sector.
- Commercial and industrial buildings need diligent protection from harsh Canada’s climate, which is nothing if not unpredictable.
- From ice and heavy snow loads in winter to intense heat and heavy rain in summer, choosing the best roofing materials for extreme weather conditions is crucial for long-term durability.
- Tariffs play an important role in the cost of imported goods, including roofing materials like steel, sheet metal, asphalt, insulation, roof membranes, and shingles.
Understanding tariffs and their impact on trade
Tariffs are essentially taxes charged on goods imported from other countries; the companies bringing the foreign goods into the country pay the tax to the government. Generally, tariffs are a percentage of a product’s value, and oftentimes, they can lead to higher consumer prices as these costs cannot be absorbed by contractors.
Canada has trading relationships with many countries, with an economy that heavily depends on international trade. The United States is Canada’s largest trading partner, followed by China and the EU. Specific tariffs imposed on roofing materials, especially steel, asphalt, insulation, roof membranes, and shingles, can cause concern for the industry as a whole. Consequences can come in the form of raised prices and supply chain disruptions, and compounded effects such as labour shortages and regulatory challenges.
In fact, the Canadian Construction Association (CCA) points out that Canadian and American construction industries rely greatly on the free-flowing supplies of construction materials. They maintain that the imposed tariffs will lower productivity, harm economic growth, and put projects and construction jobs at risk.
In addition, key construction stakeholders urged the federal government to exclude construction-related products and materials from any retaliatory tariffs imposed on U.S. imports into Canada. They argue that tariffs on construction materials would significantly hurt the building sector and the broader economy, causing significant delays and cost overruns.
The after effects of this particular tariff remain to be seen. But what is the impact of tariffs on roofing overall? They may result in increased costs for homebuilding and trade-enabling infrastructure, such as steel, shingles, and asphalt. The steel imports will hit the hardest, as Canada is the largest source of U.S. steel and aluminum imports by far.
Communication is key
While there is little doubt tariffs can impact the cost of essential materials, it’s important to remember that this isn’t the first time Canada has dealt with tariff increases, and it won’t be the last. The key is resilience, and a steadfast approach to transparency in communication with customers and suppliers is required.
Roofing contractors: evolve and adapt
Yes, the unpredictability of pricing in the roofing industry can’t be ignored. And yes, it does have an impact on long-term planning for both contractors and business owners. But that’s where the adaptive nature of the industry comes in.
Roofing contractors, like those here at Elite, must adapt to sudden price hikes or drops. And we have had to do that time and time again. We’ve done it before, we’ll do it again with these new tariffs, which may or may not pan out because of the fluidity of the situation.
In the meantime, we are planning for the potential for shortages and delayed material shipments as a result of these tariffs. Increased material costs can affect contractors’ project budgets. This means that projects that were previously quoted will likely have to be re-evaluated. In addition, the bidding process and project timelines can be impacted.
Stockpiling material is not a viable option
Stockpiling to avoid tariffs is not feasible. There is no warehouse where materials for several upcoming projects can be placed to avoid tariffs. Handling costs alone would be prohibitive, not to mention the hassle of loading, unloading, reloading, shipping etc. Materials are ordered and delivered to the job site in immediate anticipation of a project. The market price is what it is at that moment. In other words, pricing is based on today’s reality.
The type of project can dictate the course of action in times of higher costs from tariffs. In the case of new construction, for instance, new buildings need new roofs. There is no wiggle room.
As a result of these uncertain times, increased pressure is placed on contractors to either absorb costs or pass them on to customers. Neither one is ideal. In order to remain competitive in this industry, though, construction companies can’t absorb costs. Therefore, those costs must be translated to the customer. These price hikes can certainly have an effect on the contractor-client relationships. This is why it’s critical to be transparent and assure customers this is an industry-wide problem that cannot be avoided. More importantly, it could change at any time.
As roofing contractors adapt to the current pricing environment, it’s important to develop strategies for managing costs and keeping projects on track.
Industry adjustments considering tariffs on roofing materials in Canada
While no one can control tariffs, there are ways roofing contractors can minimize the impact of tariffs on roofing material costs. For example, such as these recommended by the CRCA:
- Send formal notice to clients immediately when tariffs are expected to raise costs or cause delays.
- Add a “change in law” provision that covers tariff impositions, which allows for time extensions and cost recovery.
- Expand on force majeure language to address unexpected regulatory changes.
- Clarify that pricing excludes tariff costs and can be adjusted accordingly.
- Consider alternative suppliers, bulk purchasing, local manufacturing, or sourcing comparable materials from other countries such as Europe or Asia.
Business owners can do their part to deal with possible rising roofing material costs in Canada by:
- Actively monitoring tariff changes to make informed purchasing decisions.
- Securing additional funding to manage potential cost increases from the tariff.
- Reviewing contracts.
- Planning for supply chain delays.
- Working with your roofer to stay abreast of the latest changes.
In the end, it’s important to note that the tariffs on roofing materials in Canada imposed will not spell the end of the roofing industry. We will forge on, as we always have. There’s no way to predict what will happen with taxes, but the one thing we can control is how to adapt, evolve, and move forward in the face of change.
Partner with Elite Roofing
Concerned about managing roofing costs in light of changing material prices? Contact us for a free roofing consultation and quote today. We would be happy to help you navigate tariff-inflated costs effectively.
Our company was built on family-owned values and long-standing expertise in the industry. We value transparency and honesty when it comes to our goods, services, and prices. This means you can partner with us for peace of mind. Commitment to customer service…timely solutions…quality workmanship: this is the Elite Advantage!
