The FF&E Tariff Squeeze — and What Smart Teams Are Doing About It

Specify and procure FF&E and OS&E at scale with Fohlio today. Empower teams to move faster and improve their operational workflow with specification, prototyping, procurement, collaboration, and analytics tools.

If the past few years have taught us anything, it’s this: “Plan A” is just your starting point.

In FF&E and OS&E—where teams already walk a tightrope of tight margins, custom orders, and too many moving parts—it doesn’t take much to throw everything off. Tariffs, shipping delays, vendor shakeups—one change, and suddenly you're in respec mode.

Now, with trade policies shifting again (including renewed tariff proposals from Trump), teams are bracing for another round of uncertainty.
But the truth is, it’s not just tariffs you need to watch.

It’s the broader environment: volatile prices, stretched timelines, and supplier availability that can change overnight.

What Are Tariffs, and Why Do They Hit FF&E So Hard?

Tariffs are taxes on imported goods. They’re used to:

• Protect domestic manufacturing

• Penalize certain trade behaviors

• Encourage local sourcing

In practice, they drive up costs across the board. Those costs travel fast—starting with your vendor and landing squarely on your project budget.

In FF&E and OS&E, the impact is amplified because:

• Items are often custom or globally sourced

• Budgets are approved long before procurement begins

• Teams are already juggling multiple stakeholders and razor-thin margins

In short: There’s no cushion. Every shock lands hard.

Spec Faster. Pivot Smarter.

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The Real Threat: Compounding Disruption

In 2025, your biggest risk isn’t any one disruption—it’s the chain reaction of small ones:

• A fixture now carries a 20% import duty

• Your preferred vendor’s lead time jumped from 4 to 14 weeks

• A value-engineered item was discontinued with no notice

Each of these forces you to: Re-spec. Re-quote. Re-approve. Repeat.
And while you’re doing all that, the project clock keeps ticking.

This isn’t just inconvenient.
It’s a threat to:

• Brand consistency

• Client trust

• Profitability

So What Are Smart Teams Doing Differently?

Unpredictability isn’t new—but the stakes are higher now. Between tariffs, shipping delays, and supplier shakeups, firms are evolving how they work. Not just reacting, but building resilience into their systems.

Here’s how forward-thinking design and procurement teams are staying one step ahead:

Ordering Earlier—Even If It Hurts

More teams are front-loading procurement, locking in materials during design instead of waiting for install. Yes, it shifts the cash flow and strains budgets earlier—but it also protects projects from price hikes, discontinued SKUs, and shipping roulette.

As Grassi Advisors points out, this shift is even reshaping how capital is deployed across timelines, compressing draw schedules and requiring more liquidity upfront.

Teams are starting procurement during design—not after.
They’re choosing stability over short-term liquidity. And it’s paying off.

Bringing GCs to the Table Sooner

Contractors are stepping into the design phase—not just to sanity-check drawings, but to flag spec risks and offer up alternates before things get locked in.

It’s not just about collaboration. It’s about risk mitigation baked directly into the workflow. And according to Construction Dive, early involvement is now critical for identifying vulnerabilities and locking in pricing sooner.

Building in More Breathing Room

Contingency budgets are getting bigger. Escalation clauses are getting sharper.

Lenders, developers, and project leads are adapting to the fact that cost shifts are no longer a “what if.” They’re a “when.”

Contracts and capital plans are reflecting that reality—with more room to pivot without derailing the entire build. Both Construction Dive and Grassi emphasize how financing models are evolving to account for this exact volatility.

Plan for the pivot—not just the plan.

Forecasting Like It Actually Matters

No more budgeting off last year’s unit costs. The best teams are tracking pricing across vendors, regions, and categories—in real time. That kind of visibility means fewer surprises and more leverage.

Construction Dive notes that financial planners are now requiring detailed cost escalation strategies and earlier confirmation of contractor pricing. In other words: If you’re not backing up your numbers with data, your CFO’s going to notice.

If your data’s old, your decisions are too.

Rethinking the Vendor List

With tariffs changing the game, teams are diversifying their sourcing strategies. That means adding local vendors, exploring tariff-exempt regions, and treating “approved vendor” status like a living, breathing decision—not a static list in a PDF.

Grassi highlights how even staple materials like steel and aluminum are now under threat, making vendor flexibility non-negotiable.

The goal: Avoid being caught off guard when your go-to product suddenly becomes too expensive or unavailable.

Where Fohlio Fits In

The truth is, volatility isn’t going anywhere. Whether it’s tariffs, lead times, or budget pressure—projects will always be at the mercy of forces outside your control.

What you can control is how quickly your team responds.

Fohlio helps you:

• Track cost fluctuations across projects and vendors in real time

• Adjust specs and vendors quickly—without breaking your workflow

• Lock in design intent while swapping materials on the fly

• Centralize communication, so approvals don’t get lost in inboxes

• Build smart templates that turn reactive processes into repeatable ones

It’s not about being perfect. It’s about being prepared.

Because the next disruption is coming. The question is—will you be scrambling, or already moving?

Specify and procure FF&E and OS&E at scale with Fohlio today. Empower teams to move faster and improve their operational workflow with specification, prototyping, procurement, collaboration, and analytics tools.

References:

Grassi Advisors' Tariff Hub
A comprehensive resource offering up-to-date information and industry-specific guidance on navigating the evolving tariff landscape.
Tariff Hub - Grassi​

Construction Dive: Tariffs' Impact on Project Financing and Delivery
An insightful article discussing how tariffs are reshaping project financing and delivery methods in the construction sector.
Tariffs will change the way projects are financed, delivered​

Grassi Advisors: Understanding the Tariff Impact on the Construction Industry
An analysis of how recent tariff expansions affect material costs and practical strategies to mitigate these impacts.
Understanding the Tariff Impact on the Construction Industry​

Construction Dive: Cost Escalation Strategies in Construction
An exploration of financial management best practices to maintain profitability despite rising costs due to tariffs.
Cost Escalation Strategies in Construction​

Grassi Advisors: Top Ten Contractor Strategies for 2023
A list of strategic planning techniques contractors can employ to capitalize on opportunities amid market disruptions.
Top Ten Contractor Strategies for 2023