Building Through Uncertainty
Article Summary
Construction is an inherently volatile industry. Pre-engineered metal buildings (PEMB) take the uncertainty out of commercial building, providing a reliable product at a predictable price.
How PEMBs Help Owners Manage Cost and Scheduling Risks
Uncertainty is the enemy of any business enterprise. It’s hard to plan when costs and timelines are constantly in flux. And the construction industry is especially vulnerable to such shifts. Fortunately, pre-engineered metal buildings (PEMB) offer relief from some of the risks associated with conventional construction. To understand why, it helps to examine the state of the industry overall.
The data trends tell the story:
In May 2026, nonresidential construction costs rose by 2.4 percent—up nearly 10 percent on the year. That increase included material costs as well as energy, transportation, and service costs.
Here’s how some of those cost increases break down:
Tariff Impacts on Construction Material Prices
The Trump administration’s changing tariff regime has had unintended consequences on several industries, including construction. Section 232 of the 1962 Trade Expansion Act grants the U.S. president authority to restrict or impose tariffs on products that are deemed a threat to national security. In 2018, President Trump used this authority to apply a 25 percent tariff on imported steel. Some countries and steel products were exempted. In 2025, steel tariffs were increased to 50 percent and many exemptions were eliminated. In response, U.S. industries turned increasingly to domestic steel producers.
That, in turn, led to an increase in domestic steel prices, and shortages as demand outstripped supply. Industries that rely on steel, such as commercial construction, thus faced a dual challenge: higher prices paired with uncertain supply. The predictable result was delayed timelines and reduced profit margins. Some contractors began including price contingency clauses in their contracts. Similar tariffs were also imposed on aluminum and copper products, which are also essential in commercial construction.
Other Price Pressures
While tariffs were making their impact, the war in Iran, along with the continuing war in Ukraine, forced oil and fuel prices up. So, transportation costs for construction projects rose significantly. All these factors have increased the one thing markets dislike most: uncertainty.
Why PEMBs Offer a Better Alternative
The parameters of a PEMB project are clear early on, so owners and planners can make decisions with more certainty. The main components of a PEMB are produced in a controlled factory setting. Their modular design guarantees a uniform product as well as a predictable process. With PEMBs, owners can make early assessments of several important factors:
- Structural requirements. The components of a PEMB are manufactured according to pre-set parameters. That means fewer decisions made on the jobsite—and fewer variables.
- Materials quantities. Since PEMBs are made according to preset designs, the materials required are known beforehand. No guesswork. The factory process also minimizes construction waste, which is a significant factor in conventional construction.
- Building configuration. While the modular design of PEMBs allows for extensive customization, their basic configuration is known beforehand. This reduces guesswork and planning time.
When markets are volatile, PEMBs also provide:
- Greater cost visibility. Conventional construction requires onsite cutting and welding. It is subject to changing conditions on the ground and other unforeseen difficulties. Because PEMBs are produced in a factory according to established processes, their price is typically fixed, and the risk of change orders is virtually eliminated.
- Procurement efficiency. Companies that produce PEMBs procure the necessary materials in quantity well before the manufacturing process begins. This allows them to obtain the best prices and avoid supply chain disruptions.
- Schedule predictability. Bad weather, labor shortages, and other variables can disrupt a conventional construction schedule. The PEMB manufacturing process avoids these problems, allowing for a predictable schedule.
Construction Planning During Market Uncertainty
Recent swings in the market highlight the inherent volatility of the construction industry. PEMB companies can avoid much of this uncertainty by buying material in quantity when prices are optimal. Since these expenses are fixed and factored into the price, owners can count on a reliable product at a definite cost. Supply chain disruptions are less of an issue, since materials are purchased early and stored for future use
How Conventional Construction Is Vulnerable to Unforeseen Problems
- Most conventional construction projects rely on multiple suppliers, each of which must provide its materials at the right time. If even one supplier is backlogged, that can disrupt and delay the entire project.
- The many trades involved in a conventional project require precise coordination between subcontractors. If one subcontractor is unavailable, is delayed, or exceeds the scheduled timeline, the project can be subject to expensive delays, legal issues, and lost revenue.
- When building components are fabricated on the jobsite, errors are more likely. That means expensive reworking, wasted material, and delays.
The PEMB Advantage: Faster, Less Scheduling Risk, More Predictable
The adage “time is money” is certainly true for commercial construction projects. Delays mean higher expenses, lost revenue, and in some cases, legal exposure. PEMB fabrication is well-known for being fast and reliable. The more variables involved in a project, the more opportunities there are for disruption. By contrast, PEMBs offer project owners a reliable product on a predictable timeline with fixed costs. In the fast-changing economic environment of today, PEMBs provide a welcome haven of certainty.
Why Build with FCG?
FCG gets it done right—on-time and on-budget, with an industry-leading quality standard that can lower the total cost of ownership throughout the life of your building.