By John Revill
ZURICH (Reuters) -Optimism in parts of the U.S. construction industry has fallen in the wake of President Donald Trump’s unpredictable trade policies, construction chemicals maker Sika’s Chief Executive Thomas Hasler said on Tuesday.
“We had a very strong start to the year and people were very optimistic about infrastructure investments and reshoring,” Hasler told Reuters after the Swiss company reported first-quarter sales on Tuesday.
But the mood changed following Trump’s announcement of tariffs on Mexico and Canada, which created uncertainty among U.S. companies, he said.
“Everything started to slow down,” said Hasler. “Some of the projects have been pushed out, projects that were indicated to launch soon have been put on the backburner.”
Construction was a local business, which was not affected directly by tariffs, but was indirectly affected by the economic climate, he said.
Sika, whose chemical additives are used to strengthen and waterproof walls, floors and roofs in commercial, industrial and infrastructure construction projects, is seen as an indicator for the broader construction market.
Its sales growth slowed in North America during the first quarter, an early indication of the impact of Trump’s policies on the United States, Sika’s biggest market.
Hasler said customers were now awaiting more clarity before they decide what to do with their reshoring plans and how to adjust supply chains.
The infrastructure sector, however, has been “very resilient” in the United States, Hasler said.
He could not say how long the uncertainty would last.
“The situation could change at any time,” he said. “Markets have become more unpredictable.”
(Reporting by John Revill; Editing by Miranda Murray and David Holmes)
Comments