As of the writing, the outlook for the PVF industry remains fluid in the wake of President Donald Trump’s April 2, 2025, “Day of Liberation” announcement, which included the imposition of reciprocal tariffs on a wide range of countries and products.
Some goods will be exempt from the reciprocal tariff: articles subject to 50 USC 1702(b); steel/aluminum articles and autos/parts already subject to Section 232 tariff; copper, pharmaceuticals, semiconductors and lumber articles; all articles that may become subject to future Section 232 tariffs; bullion; and energy and certain minerals not available in the United States.
As to what cumulative levels the tariffs will affect carbon steel high-pressure flange forgings, carbon steel large-diameter seamless pipe, various grades of stainless steel and alloy forgings, and pipe critical to the U.S. PVF industry and no longer made in the United States, remain unclear as of this writing.
If the cumulative result is tariffs approaching 50% or more, the PVF industry faces a cost crisis not seen before that would be almost impossible to pass on.
For Canada and Mexico, goods that comply with the United States-Mexico-Canada Agreement (USMCA) will be subject to a 0% tariff, while non-USMCA-compliant goods will incur a 25% tariff. In the event the existing fentanyl/migration International Emergency Economic Powers Act orders are terminated, USMCA-compliant goods would continue to receive preferential treatment, while non-USMCA-compliant goods would be subject to a 12% reciprocal tariff.
Construction material prices rise, oil prices ease
Prices for construction materials rose 1.4% in January, per recently released U.S. Bureau of Labor Statistics Producer Price Index data. Nonresidential prices rose 0.9%.
On a yearly basis, construction input prices increased by 1.3%, with nonresidential prices rising by 0.7%, marking a 40.5% increase in overall construction input prices since February 2020.
“Materials prices increased at the fastest monthly pace in two years in January,” said Anirban Basu, chief economist at Associated Builders & Contractors, in a press release. “This rapid escalation is largely due to three factors. First, energy prices rose sharply. Second, producers often raise their prices at the start of the year; and third, many purchasers rushed to buy inputs before tariffs could [take] effect, and that surge in demand pushed prices higher.”
Going forward, Basu stated: “Tariffs are only one of these factors that could continue to push input prices higher in the coming months. Import taxes allow domestic producers to raise their prices, and the new 25% levies on steel/aluminum will result in just that if they remain in place.”
Pricing and the availability of carbon steel butt-welding fittings and forged steel flanges need to be monitored regularly as prices are expected to increase. The degree of escalation has not been determined as the allocation of the tariffs remains unclear.
President Trump’s threat to hit buyers of Russian oil with tariffs has had limited impact on oil markets, as of this writing, as traders try to determine how far the White House can go after Chinese and Indian importers.
His proposal to impose a 25% to 50% tariff on buyers would be significant for oil markets if it were to become an order.
As of this writing, the price of crude oil is $66.19 per barrel for WTI and $69.65 per barrel for Brent. Oil prices have eased despite President Trump’s warning of possible tariffs on Russian buyers.
“As Trump yo-yos in his decision-making, so do oil prices,” said David Goldman of brokerage Novion. ”In the bigger picture, the correction from the selloff appears to have stalled, and the price is moving sideways.”
Homer City Energy Campus development
The design-build team of Graycor and Helmkamp has been selected as the design and build contractor for a $500 million expansion of Wieland’s existing Alton, Illinois, manufacturing facility.
The multiphase project replaces Wieland’s existing hot-rolled copper coil production facility, which was constructed in 1916. The new facility will feature hot-rolled lines, milling lines, cold-rolling, high-bay storage with automated material handling, and overhead cranes. Construction is scheduled to commence upon final approval of state and local incentives.
Kiewit Power Constructors will build a record 4.5 GW natural gas power plant to support a Pennsylvania data center complex. The Homer City Energy Campus is being developed near Pittsburg by Homer City Redevelopment, a private investment group, and designed and built by Kiewit Corp. It is set to feature seven natural gas-fired turbines and become the largest such U.S. power plant.
The GE Vernova turbines will be hydrogen-enabled, with the first delivery set to begin in 2026. The gas will be sourced from the Marcellus Shale region within the state via pipeline.
The project is expected to generate more than 10,000 direct on-site construction-related jobs and approximately 1,000 direct and indirect positions in technology, operations and energy infrastructure.
The project’s initial capital investment is set to exceed $10 billion for power infrastructure and site readiness, according to Homer City Redevelopment. It adds that data center construction will contribute unspecified ”billions more,” making the project “the largest such investment in Pennsylvania history.”
Kiewit will work under a project labor agreement, per corporate spokesman Bob Kula: “We have extensive [engineering, procurement and construction] power experience in Pennsylvania and look forward to working with local union talent to deliver another important project for the state.”
Shawn Steffee, president of the South Central Pennsylvania Building Trades, said member unions are “looking for apprentices. We are ready to build out.”
Meeting the skilled labor need
As mentioned last month, the Associated General Contractors indicates that there are approximately 400,000 construction job openings for skilled labor nationwide. That total is set to grow, and employers are struggling to secure qualified labor.
Fabricator, contractors, energy companies, pipeline operators and mechanical contractors realize the need and have initiated training programs in an attempt to meet that need.
The PVF Roundtable acknowledges that the demand for skilled workers is not being met, despite industry training programs, and passionately advocates for the funding of trade schools and education programs specifically designed for the PVF industry.
The group 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 PVF Roundtable Golf Tournament and TroutBlast are the major 2025 fundraising events for the PVFRT Charitable Foundation.
The PVF Roundtable Golf Tournament, held on May 12, was a complete sellout, demonstrating tremendous support from our members, volunteers and loyal sponsors. The PVF board of directors thanks you all for your time, efforts and investments in the PVF Roundtable and the industry we serve.
The Weldbend Corp., Ferguson Industrial and MRC Global are key sponsors of these events.
PVF Roundtable networking
The next PVF Roundtable networking meeting is scheduled for August 6, 2025, with Chad Prather, the 2022 Republican candidate for Texas governor, as the guest speaker. Doors open at 4:30 p.m. CDT.
The meeting will be held at Houston’s Bayou City Event Center, 281-501-6720. The venue will provide additional space and convenience to exchange information and meet new colleagues. It is 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, discuss pertinent issues, meet new contacts, develop new 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 you for participating in these events and urge PVF industry leaders to join us in our efforts to advance the industry through education and information sharing.
