Tariffs Are Shrinking Construction Pipelines for Small U.S. Manufacturers

For Harding Autoparts Systems (APS), a 12-employee company based in Denver, tariffs are doing far more than raising the cost of steel and equipment. They are shrinking the entire pipeline of construction projects the company depends on.

Harding APS supplies mechanical parking systems and steel components used in real estate developments nationwide. This year, the company has paid over $500,000 in additional tariffs — but the most damaging impact is what happens after those costs hit.

As the company explained:

“Higher construction costs driven by tariffs are forcing developers to delay projects, reduce scope, or re-evaluate feasibility, which directly shrinks the pipeline of viable opportunities where advanced parking solutions make sense.”

When projects are delayed or downsized, advanced systems are often the first to be reconsidered. Budgets tighten, timelines stretch, and decisions that once focused on long-term efficiency shift toward short-term cost containment.

That ripple effect continues:

“This combination of rising system costs and slowing development activity creates a compounding effect that reduces deal velocity, increases pricing resistance, and adds uncertainty to forecasting and backlog.”

For a small manufacturer, this uncertainty is especially costly. Slower deal cycles make it harder to plan staffing and production. Forecasting becomes unreliable. Backlogs fluctuate unpredictably.

Harding APS’s experience shows how tariffs can undercut entire sectors — not just by increasing costs, but by freezing activity and stalling investment across the construction ecosystem.

📢 If your small business has been directly affected by tariffs, consider sharing your experience through We Pay the Tariffs. These stories help show how tariffs are impacting U.S. manufacturers, workers, and investment decisions across the country.