September marks the midpoint of third-quarter 2025, and uncertainty continues to cloud the PVF sector as the implications of the Trump administration’s tariff policies unfold. While some clarity has emerged, many questions remain unanswered.
As of this writing, a tariff agreement has been reached with the EU that includes a flat 15% tariff to be applied to most EU origin goods entering the United States, including automobiles, pharmaceuticals and semiconductors.
Steel and aluminum imports from the EU will remain subject to a 50% U.S. tariff, with future quota system under discussion.
Trump has also implemented a 25% tariff, effective Aug. 1, 2025, on all goods imported from India, citing India’s high tariff barriers.
A summary of reciprocal tariffs effective Aug. 1:
20%: Philippines
25%: South Korea, Japan, Brunei, Moldova, Malaysia, Tunisia and Kazakhstan
32%: Indonesia
35%: Canada, Serbia and Bangladesh
40%: Laos and Myanmar
50%: Brazil
These reciprocal tariff rates and regulations are subject to revision.
Until more implementations and exclusion efforts are revealed that pertain to the PVF industry, the impact remains unclear as of this writing.
Oil, as of this writing, has softened because of OPEC+’s agreement to increase production by 548,000 barrels per day, a weaker-than expected U.S. jobs report and the Federal Reserve’s announcement that it will hold current rates. The next Federal Reserve meeting is scheduled for this month with an anticipation of the beginning of rate reductions.
Oil pricing finds WTI at $64.33/barrel and Brent at $66.96/barrel.
Concerns over Trump’s tariffs regarding the PVF sector continue to weigh on the pricing of butt-welding carbon steel fittings and forged steel flanges. The pricing and the availability need to be monitored regularly as prices are expected to increase.
The degree of escalation has yet to be determined, as the allocation of the tariffs remain unclear. Some manufacturers/suppliers have adjusted while some have taken a wait-and-see posture prior to making an adjustment.
Construction news
After months of uncertainty, the July job’s report confirmed the uneasiness contractors expressed that the economy is weakening. Federal Reserve Chairman Jerome Powell’s decision to hold interest rates at the current level has only exasperated the contraction.
“Construction activity is in a holding patterning for much of the nation,” notes Ken Simonson, chief economist at the Associate General Contractors of America. “As a result, fewer metro areas are experiencing gains in construction employment as compared to a year ago.”
The Associated Builders and Contractors (ABC) Construction Backlog Indicator fell to 7.7 in August, according to a member survey conducted in the second half of the month.
“Both contractor backlog and confidence have begun to fade,” says Anirban Basu, chief economist at ABC. “Higher material prices and labor costs have conspired to put more projects on hold. In many instances, expanding costs have rendered projects infeasible.”
He adds: “It is still the case that contractors collectively anticipate sales, staffing levels and margins to rise over the next six months.”
On a positive note, Venture Global said that it had reached a final investment decision (FID) in August for the first phase of its Calcasieu Parish 2 liquified natural gas (LNG) project, together with an associated pipeline.
The total investment value (TIV) is projected to be $15.1 billion, representing the largest standalone project financing ever recorded. The project has 29 banks participating from the United States, Europe and Asia.
“This project, fully owned by Venture Global and our shareholders, is expected to deliver reliable American LNG to the world beginning in 2027,” says Mike Sabel, CEO.
Primoris Services Corp.’s largest development in its portfolio is a natural gas field hub for the technology industry: Crusoe Energy Systems’ Longhorn Data Center Campas in Abilene, Texas, known as Stargate.
With the support of President Donald Trump in February, the complex is designed to supply as many as 400,000 graphics processing units provided by Nvidia with 1.2 gigawatts of power generated on site.
Primoris is performing engineering services on three phases of Stargate under construction: building 3,4 and 5, each valued at $2 billion.
Just announced, Energy Transfer has reached a positive FID on the expansion of the Transwestern Pipeline expansion. The expansion’s TIV of approximately $5.3 billion is backed by substantial long-term commitments from investment-grade customers.
The expansion consists of adding 516 miles of 42-inch diameter pipeline and nine compressor stations across Arizona, New Mexico and Texas.
Open season will be initiated later this quarter. The project’s scale could be increased to meet additional demand, depending on the outcome of the open season.
Scheduled to be operational by the fourth quarter of 2029, the project is expected to support U.S. industry, with plans to use U.S. steel pipe manufacturing and employees up to 5,000 local and union labor.
Regional construction start growth trends, per the Engineering News Record, are:
South Atlantic, +6%
Middle Atlantic, 0%
Northwest Central, +1%
Southwest Central, +9%
New England, -10%
Mountain, -19%
Southeast Central, +9%
Northeast Central, +9%
Industry labor issues
The U.S. construction and supply chain sectors are dealing with a persistent skilled labor shortage that impairs all aspects of the industry. To address this issue, the industry is promoting education opportunities in the trades versus certain higher education degrees.
Trade school enrollment is seeing steady growth that is anticipated to continue over the next five years, outpacing overall growth in higher education enrollment by a significant margin.
The West tops the nation in terms of trade school enrollment growth. Total enrollment at trade schools for the period from 2019-2023 grew 33.2% in Nevada, 32.4% in Idaho, 28.2% in Colorado, 27.8% in Arizona, 19.4% in California and 16.4% in Utah.
Yet only 45.6% of students studying a trade do so at trade schools, with trade programs at community colleges attracting the bulk of trade students.
The PVF Roundtable (PVFRT) recognizes the need and passionately promotes the funding of trade schools and education programs at community colleges to address the shrinking skilled labor pool for the supply chain, construction and fabrication sectors of our industry.
The funding of these programs are provided through the PVFRT Charitable Foundation. The primary funding for the foundation is derived from the funds generated from the PVFRT Annual Golf Tournament and TroutBlast.
The Weldbend Corp., Ferguson Industrial and MRC Global are key sponsors of these events.
Networking at the PVF Roundtable
The PVF Roundtable TroutBlast is scheduled for Oct. 9-10. Please refer to the PVFRT website (www.pvf.org) for details and registration.
The next networking meeting of the PVF Roundtable will be held Oct. 14, opening at 4:30 p.m. The meeting will be held at the Bayou City Event Center, 9401 Knight Rd., Houston, 281-501-6720.
The PVF Roundtable continues to serve as a vital hub for industry networking, education and advocacy. Recent and upcoming events reflect the sector’s commitment to collaboration and innovation.
The PVF industry stands at the crossroads of opportunity and uncertainty. Market volatility, labor challenges and global competition are reshaping how companies operate and grow.
Networking meetings are now, more than ever, essential for you, your associates and clients, to 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 your participation in these events and urge PVF industry leaders to join us in our efforts to facilitate our industry through education and information sharing.
