Tariffs Hit on Savannah’s Construction Equipment Market

The Trump Administration announced new tariff measures in 2025 that represented a significant shift in U.S. trade policy, including across-the-board import tariffs and targeted duties on specific goods, directly affecting Georgia's construction firms and equipment suppliers. A 10% universal baseline tariff on imported goods took effect in April 2025, while most countries faced a 50% duty on steel as of June 4, 2025.

Impact on Savannah's Construction Equipment Sector

JCB, which has its North American headquarters in Savannah and employs around 1,000 people locally, has been significantly affected. The company's CEO acknowledged that in the short term, the imposition of tariffs will have a significant impact on the business. To mitigate this, JCB doubled the size of its new Texas factory from 500,000 square feet to one million square feet JCB, representing a major strategic shift to increase U.S. production capacity.

Construction equipment manufacturers including cranes, bulldozers, and excavators faced Section 232 steel and aluminum tariffs covering 407 product categories. Major manufacturers are feeling the squeeze—Caterpillar expected tariff costs between $1.3 billion and $1.5 billion for the full year, while Deere forecasts around $600 million in tariff impacts.

Tariffs on imported machines and their components increased the acquisition costs for rental companies, and this financial pressure inevitably was passed down to customers, leading to adjustments in rental rates and long-term contracts. For Savannah-based crane rental companies like Tim’s Crane & Rigging,  this meant navigating higher equipment costs for new equipment while trying to remain competitive in a rental rate driven market. Not only were new equipment purchases affected by tariffs, but older equipment in the company’s fleets was also adversely affected by costs and availability of parts.  When a machine was out of commission due to a maintenance issue or parts failure, companies found they would have to wait on manufacturers to get the parts in and on top of that, cost increases to the parts.  Overall, operating expenses increased, rates remained competitive and profitability for companies was tested.

Bottom Line for Savannah Businesses

Savannah's crane rental and construction equipment companies faced a complex situation: higher equipment acquisition costs, increased maintenance expenses, volatile pricing for steel and components, and competitive pressure as these costs get passed to customers. While some larger players like JCB can respond by ramping up U.S. production, smaller local rental companies have fewer options beyond strategic purchasing, contract adjustments, and operational efficiencies. The uncertainty around future tariff policies continues to complicate long-term planning and investment decisions for the sector.