Looming U.S. Rail Strike Would Impact Canadian Construction Sector

Home improvement retailers and building material dealers may have to deal with more supply chain constraints if the looming U.S. rail strike takes place. A U.S. rail strike could have a significant impact on many Canadian sectors including construction with possible impact before Christmas. Four rail unions have aligned on a potential strike date of December 9. The lack of access fuel will likely affect its pricing, putting further strain on the already struggling supply chain. Without train freight, the construction sector will slow in both the U.S. and Canada because it is reliant on metals, stone, wood, plastics, and minerals, which are all heavy cargo transported by rail. In fact, 20 per cent of all steel products are immediately used for construction after processing at steel mills. If no agreement is reached prior to the set date, there will be a strike or lockout unless the U.S. government intervenes using its power through the Constitution’s Commerce Clause.