President Trump’s tariffs on Mexico, Canada and China have been implemented as of this writing (25% on Mexico and Canada and an addition 10% across-the-board on all goods from China). Canada will also receive a 10% tariff on “energy resources, i.e. crude oil, natural gas, refined petroleum products, critical minerals, etc. The actual breakdown on the products included has not been made available at this time for Mexico and Canada.

PVF products imported from Mexico, Canada and China are subject to the tariffs and the impact is unclear as to how the markets will react. 

However, tariffs on Mexico have been postponed for a month predicated on the deployment of 10,000 Mexican troops to the U.S./Mexico border and further negotiation. Tariffs on Canadian goods also have been postponed, as of this writing, after Trudeau agreed to deploy troops to the U.S./Canada border and further negotiations.

With that said, OPEC+ has indicated that it will not increase oil production more than what was already planned. We expect to see OPEC+ begin to increase output by 130,000 barrels/day in April.

As of this writing, WTI is at $73.55/barrel and Brent is at $76.26/barrel. There is, however, concern about the supply impact of U.S. sanctions on Russia announced in January.

Companies need to engage in long-term analysis and planning of their supply chains to determine exactly where they are sourcing their raw material, components and finished/semi-finished goods, and from whom.

The Trump administration’s tariffs will ignite some of the offshore players to seek refuge in other third-world countries to circumvent them.

Pricing and the availability of commodity carbon steel butt-welding fittings and forged steel flanges remain stable. However, with tensions rising in both the Pacific and the Mideast, along with the shipping constraints in the Red Sea, the current Panama Canal dispute over China’s involvement and Trump’s tariffs, supply chains remain vulnerable to disruptions and higher costs.

It is, therefore, wise to remain in close contact with your manufacturer/supplier to avoid surprises regarding U.S. Tri-Seal compliance (circumvention), pricing and the availability of pipe, forged flanges, butt-welding fittings, valves and other PVF-related products.

Energy, data center and industrial construction

Ameren Missouri has awarded the contract to the Corrigan Co. Mechanical Contractors for the construction of the Castle Bluff Energy Center, a backup source of energy for peak demands. The project will be constructed on the site that hosted the Meramec Energy Center. The facility will be powered by natural gas with turbines supplied by General Electric. The start of on-site construction is scheduled for early 2026 with late 2027 completion.

Microsoft Corp. plans to spend $1 billion to build three data centers in central Ohio, with future expansion likely. The data centers will be located on sites in New Albany, Hebron and Heath, all located just east of Columbus.

Chevron Corp. is planning on constructing gas plants to provide reliable service to AI data centers. Chevron is working with an activist investor Engine No. 1 and GE Vernova and looks to have its first multigigawatt plant operating by the end of Trump’s term in office.

U.S. demand for reliable electricity is projected to surge 16% over the next five years, more than triple the forecast from a year ago, driven by new data centers.

Research by Industrial Info Resources (IIR) indicates a general sense of optimism for North America. Executive Vice President Michael Bergen notes that a record-breaking $954 billion in planned U.S. industrial projects are scheduled for construction in 2025. 

Many of the projects were delayed from 2024 pending the outcome of the election. Many of these projects still require regulatory and funding approval. Project owners await clear and decisive guidance prior to commitment. Therefore, IIR predicts that about 59% of these projects will be postponed, resulting in approximately $395 billion moving forward this year.

Industries poised to gain the most under the Trump administration include data centers, related power generation, liquified natural gas exports, power transmission and distribution, battery manufacturing, natural gas pipelines, storage and manufacturing reshoring. 

Nuclear power will also benefit from the demand for reliable power required by the data center boom. Holtex International is expected to restart the Palisades nuclear plant in Michigan in October of this year. This is in addition to the restart of Unit 1 of the former Three Mile Island power plant (now Crane Clean Energy Center) in Pennsylvania by Constellation Energy Corp., and Santee Cooper’s seeking funding to restart construction on its partially built V.C. Summer two-reactor nuclear power project in South Carolina.

Skilled labor shortage continues

To meet the construction industry’s need in 2025, about 439,000 new workers will be required. If these numbers are not met, then “industrywide labor cost escalation will accelerate, exacerbating already high construction costs and reducing the volume of work that is financially feasible,” per Anirban Basu, chief economist at Associated Builders and Contractors. 

Union, end-users, contractors, mechanical contractors and pipeline operators understand the implications of the skilled labor shortage and have instituted training programs to address the shortage. 

PVF Roundtable recognizes the need that is not met even with the industry training programs and passionately promotes the funding of trade schools and education programs designed for the PVF industry.

The PVF Roundtable (PVFRT) is actively engaged in supporting trade schools and student recruitment for the industry through the PVFRT Charitable Foundation, with scholarships exceeding the $2 million mark in 2024.

The funding of these programs is provided through the PVFRT Charitable Foundation. The primary funding is derived from monies generated from the PVFRT Annual Golf Tournament and the Annual TroutBlast.

The 2025 PVF Roundtable Golf Tournament is scheduled for May 12. Please check the PVFRT website, www.pvf.org, for registration and additional details.

The Weldbend Corp., Ferguson Industrial and MRC Global are key sponsors of these events.

Networking at the PVF Roundtable

The PVFRT Cocktail & Commerce Tabletop and Membership Drive was held February 11 at the Bayou City Event Center with more than 450 registered attendees.

The next networking meeting of the PVF Roundtable is scheduled for May 13 (after the golf tournament) and will be held at Houston’s Bayou City Event Center. 

This venue provides additional space and convenience to exchange information and meet new colleagues. It’s a great opportunity to network with manufacturers, suppliers and end-users.

Networking meetings are now, more than ever, essential for you, your associates and clients to discuss the issues, share information, meet new contacts, develop long-lasting friendships and pursue new opportunities in the industry.

As a member of the board of directors, and I speak for all members, we thank our members for participating in these events and urge PVF industry leaders to join us in our efforts to facilitate our industry through education and information-sharing.