| Material | Tariff / Increase | Impact |
|---|---|---|
| Steel | 50% tariff | Up 20.7% year-over-year |
| Aggregate / Concrete | No direct tariff | 4-6% increase expected through 2026 |
| Overall Construction Inputs | Multiple tariff categories | Surged 12.6% annualized (fastest since 2022) |
| Total Project Costs | -- | Up approximately 3-6% |
Key Insight: Steel-heavy deep foundations get MORE expensive under tariffs, making Pier Foundations' VSC solution MORE competitive. Our existing 30-50% cost advantage over traditional deep foundations widens as steel prices rise.
| Metric | Status |
|---|---|
| IIJA Authorization Expiration | September 30, 2026 |
| Allocated So Far | $568B of $1.2T total (47%) |
| Already Rescinded | $2.3B |
| Remaining to Allocate | $492B |
If Congress does not reauthorize: Unobligated funds for discretionary programs expire and new lettings pause. However, projects already under contract continue getting paid.
The next highway bill is expected to be "significantly higher" than IIJA (per Granite Construction CEO), but timing remains uncertain.
| Material | % of State DOTs with Adjustment Clause |
|---|---|
| Fuel | 84% |
| Asphalt | 80% |
| Steel | 36% |
| Cement | 6% |
| Aggregate | Not typically covered |
Note: Most clauses require a 5% price swing to trigger. Aggregate -- Pier Foundations' primary material -- is NOT typically covered by price adjustment clauses.
With 4 months until IIJA expires, the strategy is simple: bid aggressively on public work now (these contracts get paid even if funding lapses), while simultaneously building private-sector relationships that don't depend on government funding at all.
Tier 1 -- Public Infrastructure (IIJA-Funded)| Letting Date | Status | Action Required |
|---|---|---|
| July 8, 2026 | Coming -- new electronic bidding starts | Register on Bidx.com NOW |
| August 5, 2026 | Coming | Monitor for bridge/foundation work |
| September 2, 2026 | Last before IIJA expires | Bid aggressively |
INDOT Electronic Bidding Migration: INDOT is migrating to Bidx.com starting June 10. Registration required. Contact: John Wooden at INDOT (317-233-5743 / jwooden@indot.in.gov)
Ohio DOT: Record $3.4B construction season, 977 new projects, 739 bridges.
Tier 2 -- Data Centers (Private, No Government Dependency)| Project | Value | Timeline | General Contractor |
|---|---|---|---|
| Google Fort Wayne (Project Zodiac) | $2B+ | Active development | TBD -- identify GC and geotech engineer |
| Meta Lebanon (Project Domino) | $10B | Broke ground Feb 2026 | Mortenson + Turner |
| Cologix Ohio | $7B total campus | Phase 1 underway | TBD |
| CoreWeave Hammond | 180 MW | Pre-construction | TBD |
Opportunity: A single data center building = $200K-$1M+ in ground improvement work. These projects run 2-5 years. Completely independent of IIJA funding.
| Project | Location | Value / Size |
|---|---|---|
| Neighborhood Infrastructure | Fort Wayne | $37M ($28.4M roads/bridges) |
| Electric Works Phase II | Fort Wayne | 296 units + commercial |
| The Landing Exchange | Fort Wayne | 40 units + 5,000 SF commercial |
| Amazon Fulfillment Center | Greenfield, IN | 1M SF |
| IU Health Academic Center | Indianapolis | Multi-phase through 2027 |
| Stellantis Engine Plant | Kokomo, IN | $100M+ |
| State | Opportunity | Monitoring Link |
|---|---|---|
| Ohio | $3.4B season, 977 projects, 739 bridges | ODOT Contracts & Proposals |
| Michigan | 2026-2030 Five-Year Program | MDOT Projects & Studies |
| Illinois | Monthly lettings, $10.3B data center spending | IDOT Letting and Bidding |
The market is moving in Pier Foundations' favor: tariffs on steel make our VSC solution more cost-competitive, and the Midwest is experiencing unprecedented construction demand from data centers, infrastructure, and industrial development. The risk is a potential public funding gap if IIJA reauthorization stalls. The mitigation is straightforward: lock in public contracts before September 30, build private-sector data center relationships that don't depend on government funding, and protect margins with price escalation clauses and locked-in material pricing. The worst position is an empty pipeline in Q1 2027.