Roofing Trends in 2025
Trent Cotney dives into the overarching trends and policies that will affect roofing contractors in 2025.
Now that 2024 is behind us and the New Year begins to unfold, it is beneficial to explore the issues and trends that the roofing industry has seen in recent months. It is equally essential to look ahead and prepare for what 2025 may bring.
Corporate Transparency Act
The on-again, off-again requirements of the Corporate Transparency Act kept us on our toes in 2024. For months, businesses prepared for and submitted their beneficial ownership reports. Then an injunction was granted, only to be overturned, and then reinstated. As we rang in 2025, the issue was on hold, and we expect the Fifth U.S. Circuit Court to review the constitutionality of the CTA and determine the validity of the nationwide injunction. Briefings are set to conclude by Feb. 28, and oral arguments are planned for March 25, meaning that a resolution is unlikely before the end of the first quarter. It is hard to predict if the Trump White House will influence the court’s actions, but there have been suggestions that the CTA will cease to exist as part of the Trump deregulation agenda.
International Tariffs
During his campaign, President Donald Trump vowed to implement a 60% tariff on Chinese goods and general tariffs ranging from 10 to 20% on other imports. Additionally, at a rally in November, he announced plans to impose a 25% tariff on Mexico if the country failed to enforce stricter border regulations. President Biden retained nearly all of Trump’s tariffs and, last spring, introduced a new set of tariffs targeting $18 billion worth of Chinese goods. Trump’s proposed tariff increases on Chinese products appear to build on these measures. Consequently, the U.S. Trade Representative might leverage initial findings and its four-year review to implement the proposed increases.
However, it remains uncertain what existing authority Trump could use to apply general tariffs of 10 to 20% on all imports. These tariffs might be included in a reconciliation package — a process that bypasses Senate filibusters — to offset plans to eliminate taxes on tips and Social Security payments. Regarding Mexico, it is worth noting that Trump previously threatened significant tariffs on the country if it refused to adopt the “remain-in-Mexico” policy for asylum seekers. Mexico ultimately agreed to the policy, and the tariffs were never enacted.
If these tariffs are put in place, they could have a significant impact on the roofing industry since the added costs will likely be passed along to consumers. Such a move will make all building materials more expensive, which will affect every contractor’s bottom line.
Energy Policies
For years, the Biden administration worked to encourage renewable energy, supporting electric cars and other green initiatives. However, we can probably expect Trump to divert energy policy away from the Environmental Protection Agency electric vehicle mandates and Department of Energy subsidies for renewable energy. For some actions, he will have the ability to make decisions unilaterally. For others, he will likely have Senate support, and many of his cabinet nominations — such as for the EPA, DOE, and other agencies — will be confirmed with little argument. Trump can then depend on those leaders to fulfill his agenda. It seems likely that the Republican Congress will work with Trump to reverse renewable subsidies of the Inflation Reduction Act. However, the IRA’s energy-efficiency tax incentives might remain in place.
Rules and Regulations
Further relying on a Republican-controlled Congress, Trump may quickly utilize the Congressional Review Act to overturn Biden-era regulations implemented within the past year, potentially impacting policies from OSHA, the EPA, and other agencies. Notable examples include OSHA’s Heat Injury and Illness Prevention rule, published in the Federal Register in August 2024, and the EPA’s recent classification of PFAS (commonly known as forever chemicals) as hazardous under the Superfund law.
Additionally, we may see the Trump White House using budget reconciliation to extend stipulations of the 2017 Tax Cuts and Jobs Act. Many of these moves can be seen as business-friendly and could benefit roofing company owners
Immigration Reform
The most pressing issue for construction in 2025 is immigration reform. Trump has committed to an aggressive stance on this issue, and we can expect him to prioritize border security and implement a widespread deportation plan. This plan would involve expanding detention facilities in specific areas of the country.
Such a massive deportation process could prove impractical, so initially, the administration might focus primarily on undocumented individuals with criminal backgrounds. It is probable that worksite enforcement could increase, which would include Immigration and Customs Enforcement raids and I-9 audits. All these efforts — and the overall immigration atmosphere — could adversely affect roofing construction since the industry relies heavily on workers from other countries.
Final Thoughts
The New Year will probably be one of tremendous change. Every new administration or policy comes with positives and negatives, challenges and opportunities. Therefore, it is critical that the roofing industry remains resilient and looks at new solutions to ever-present problems.
The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.
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