By the time this article is read, we will be approaching the holiday season, which will limit shipping days, while uncertainty still plagues the PVF sector of our economy. As of the writing, positions held by both sides of the aisle have continued to hold the economy in limbo by failing to author a continuing resolution to keep the government open and negotiate the terms of the spending bill.
Compounding the issues facing the PVF sector is that OPEC+ and Russia announced an agreement to increase production by 137,000 barrels/day this month, exceeding the previously announced October increase. The increase was restricted, by agreement with Russia, to sustain oil pricing. Saudi Arabia wants additional increases to gain market share, countering U.S. oil production bolstered by shale production.
As of this writing, WTI is at $58.24/barrel and Brent is at $62.17/barrel.
Additionally, the U.S. Supreme Court will be addressing the legality of President Donald Trump’s tariffs during its current session. The impact of the decision will have profound effects on both the presidency and the PVF economy.
An adverse decision would severely limit presidential power and have a significant impact on PVF product pricing, thus leaving our industry with additional uncertainty.
With all the turmoil regarding the status of our tariff policy, the supply and demand issues facing the oil markets and the Federal Reserve’s prime rate stance (as of this writing), uncertainty continues to affect the PVF sector of our economy.
The pricing and availability of butt-welding carbon steel fittings and forged steel flanges remain stable; however, they are expected to increase, so they need to be closely monitored to avoid getting caught off guard.
Again, the degree of escalation has yet to be determined as the allocation of the tariffs remains unclear. Some manufacturers/suppliers have made their adjustments; others continue to take a wait-and-see posture until the dust settles.
U.S. Customs and Border Protection (CBP) remains operational during the shutdown. Ports of entry will be open and staffed.
Tariff enforcement will continue, and CBP will implement new Section 232 tariffs as scheduled in excluding the Oct. 14 tariffs on lumber, furniture and heavy trucks.
CBP has observed a rise in transshipments, particularly of Chinese-origin goods, to circumvent trade enforcement measures. We encourage all customers to stay vigilant by carefully vetting suppliers, verifying country-of-origin markings and reporting suspicious activity to circumvent trade enforcement measures. Violations can lead to severe consequences, including fines, shipment seizures, business disruption, loss of import privileges and reputational damage.
In 2024, multiple U.S. unions filed a petition urging the U.S Trade Representative (USTR) to investigate China’s polices in the maritime and shipping sectors. After a Section 301 investigation, the USTR concluded that China’s attempt to dominate these industries leads to market imbalances, stifles competition and poses risks to U.S. economic security. Phased action starts at $50/net ton, increasing annually effective Oct. 14, 2025.
Construction news
The North Dakota Industrial Commission will provide as much as a $500-million financial guarantee for a planned pipeline to transport up to 760 million feet of natural gas per day from the western Bakken oilfields across the state to ensure supply.
The tentative design for the pipeline, estimated to cost between $1.2 billion and $1.6 billion, is for 375 miles of 30-inch and 24-inch diameter, high-pressure steel pipe. A contractor has not yet been chosen.
AECOM Hunt-Turner JV has been chosen as the construction manager for the new $2.4 billion Cleveland Browns stadium project by Haslam Sports Group, owner of the football team.
The 67,500-seat stadium will be the first enclosed stadium in Ohio designed to attract year-round events beyond football. Project completion is expected to be in 2029, in conjunction with the start of the football season.
Regional One Health has selected its design and construction partners for a $1 billion-plus academic medical center in downtown Memphis, Tennessee.
Announced on Sept. 29, Memphis Healthcare Builders (a joint venture of Turner Construction, Flint Construction, Nickson General Contractors and Fifer & Associates) was named as construction manager, with HDR leading design along with several Memphis-based architecture and engineering firms. Completion is targeted for 2031.
Ongoing industry labor issues
The ongoing impacts of tariffs and immigration enforcement were among the factors cited by economists for the construction industry’s estimated job loss of 7,000 positions in August (the latest published data).
According to the Bureau of Labor Statistics’ latest jobs report issued Sept. 5, heavy and civil engineering was the only sector showing gains, with an overall increase of 2,300 jobs.
Specialty trade contractors shed the largest number of jobs, with a loss of more than 5,000 positions — notably in the residential construction sector.
Economists with Associated Builders and Contractors (ABC) and Associated General Contractors of America (AGC) cited continuing worries over tariffs, immigration enforcement actions and other policy changes as factors in the decline.
“Despite the job losses, construction labor shortages appear to be worsening as immigration policy weighs on the labor supply,” says Anirban Basu, ABC’s chief economist.
Still, meeting labor demand may be challenging. The AGC 2025 Workforce survey found that 92% of firms report having difficulty in filling open positions, with 45% reporting labor shortages as a cause of project delays.
With that said, the data center, pharmaceutical, battery production and chip manufacturing sectors continue to generate record backlogs for construction contractors.
These U.S. construction sectors and their supply chains are dealing with a persistent shortage of skilled labor that impairs all aspects of the industry.
The most recent annual workforce survey from ABC and the National Center for Construction Education and Research show labor shortages impacting 45% of 1,400 reporting contractors.
To address this issue, the industry is promoting education opportunities in the trades versus certain higher education degrees.
In addition, President Trump announced a tentative deal with Harvard University to restore $2.4 billion in federal grants, which includes a $500 million investment to create trade schools focused on vocational training. This initiative aims to enhance workforce development in areas such as artificial intelligence and the skilled trades.
The PVF Roundtable (PVFRT) recognizes the need. It passionately promotes funding for trade schools and education programs at community colleges to address the shrinking skilled labor pool in the supply chain, construction and fabrication sectors of our industry.
The PVFRT has added a new community college, the College of the Mainland (Texas City, Texas), to the scholarship portfolio.
The funding for these programs is provided through the PVFRT Charitable Foundation.
The primary funding for the foundation is derived from the PVFRT annual golf tournament and the annual TroutBlast.
The Weldbend Corp., Ferguson Industrial and MRC Global are key sponsors of these events.
Networking at the PVF Roundtable
The next networking meeting of the PVF Roundtable — the Casino Night and Christmas Celebration — will be held on Dec. 9, 2025, starting at 4:30 p.m. Please bring a gift for or donate to Toys for Tots.
The meeting will be held at Houston’s Bayou City Event Center, 281-501-6720. This venue will provide additional space and convenience to exchange information and meet new colleagues.
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.
Networking meetings are now, more than ever, essential for you, your associates and clients to discuss pertinent issues, share information, 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 facilitate our industry through education and information-sharing.
