Have you experienced any impact of the tariff war, such as supply chain disruptions, higher costs of materials or labor shortages?
Robert Cantu: (We have received) some notices of higher supply price expectation, but none that have substantially affected our local supply chain.
Jerry Eddinger & Joe Madarus: We’re not experiencing a labor shortage but material costs are high and rising, with lead times still long. The actual and perceived tariff increases are having an impact. Our larger projects require a lot of steel and concrete, making the volatile pricing and uncertainty an issue. Our smaller projects are also impacted as a percentage of the entire project cost. The larger and unpredictable tariffs are likely to dramatically slow and even stop some work, whether residential or commercial.
Along with our construction partners, we’re working hard to stay ahead of surprises, work efficiently and communicate. We continue to plan the work and work the plan, more than a half century since our founding.
Mike Ghilotti: We have not experienced any impacts as a result of the proposed tariff increases. A more concerning impact is the continued consolidation of all the regional material suppliers buying up all the long standing family owned businesses.
Seth Maze: Yes, we’ve felt the ripple effects. When tariffs were first announced, several of our major suppliers warned of potential material price increases in the range of 10%–30%, particularly for steel and aluminum. While not all of those increases materialized — some were likely absorbed in competitive bid pricing — the uncertainty did influence the market.
In early 2025, a slowdown in bid activity led to more aggressive pricing from both subcontractors and suppliers, which helped mitigate cost impacts. However, we continue to see lingering supply chain issues, especially with longer lead times on electrical gear, generators, and certain HVAC components. These disruptions, many of which trace back to the post‑COVID era, have been further complicated by ongoing tariff concerns. We’re also seeing the return of short‑lived quotes — some valid for days rather than weeks — making procurement more challenging.
Joe Meylan: All of our current projects and tentative projects in the hopper are from the prior administration. Since the new administration has taken office most all of our clients are putting capital improvements on hold until the uncertainty of on and off tariffs and other policy have been settled. Tenant improvements are at the lowest levels since the pandemic.
Brandon Schroer: We haven’t experienced any definitive impact yet, but we’re keeping a close watch. We’ve received a few early notices from subcontractors, more like precautionary alerts about potential tariff-related issues, but nothing that has resulted in actual cost changes or required us to re-strategize with clients.
That said, we’re taking a proactive approach. We’re working closely with our subs to lock in material pricing early in the project life cycle. Sometimes that means making adjustments, like swapping out a particular product or spec, which we always bring to the client for discussion. It’s a way to stay ahead of uncertainty, maintain flexibility, and avoid surprises.
How has the employment situation changed in the past year for your company and subcontractors? How is that affecting projects?
Robert Cantu: No affect to our business model. Skilled labor always seems to be in shortage. We have seen more layoffs in the past year compared to the post COVID environment.
Jerry Eddinger & Joe Madarus: Labor availability and performance is not an issue, high costs and uncertainty are.
Mike Ghilotti: Because (Ghilotti Bros.) is signatory to five different unions, we are fortunate to have a consistent supply of labor. We have experienced the retirement of most of the experienced staff on the owners’ side — city, county, state (governments). The next generation is trying hard but just doesn’t have the experience.
Seth Maze: The past year has seen a general slowdown in new project opportunities across the North Bay and beyond. Despite this, GMH has remained steady with a robust backlog spanning a wide range of project types, positioning us well into 2026. While sectors like general commercial, office, hospitality, wineries, and single‑family residential have cooled, we’ve seen activity continue in health care, high‑tech, affordable multifamily, and some education‑related projects.
Many subcontractors have told us they’re experiencing a lull, but they continue to rely on GMH as a consistent source of opportunities. Because we’ve remained active and diversified, we haven’t faced challenges with staffing or subcontractor labor availability. In fact, our steady flow of projects has helped us maintain strong relationships across the trades. We are always looking for additional project opportunities that are a good fit, so we can continue growth and hiring.
Joe Meylan: Employment has become much easier, with better candidates and less negotiations for premium compensation. People are glad to have a regular job. Subcontractors are much more responsive, competitive and have crews available. We are realizing less delays and easier to stay on schedule.
Brandon Schroer: As we continue to grow our brand in the North Bay region, we’re always on the lookout for great talent that aligns with our culture and core values. Fortunately, we’ve been able to bring on some incredible people recently to compliment our already outstanding staff and we’re excited to have them as part of the DesCor family. That said, contractors are staying busy, so finding the right fit does take more effort. You have to dig deeper to find the talent you really want.
On the subcontractor side, labor has been fairly steady over the past year. In fact, we’ve seen some signs of a slight slowdown for certain trades, which has actually opened up more manpower availability on projects. If the economy begins to accelerate again, that could shift quickly. That’s why we make it a point to talk with our subs about their current backlog and workforce availability before awarding a job. It’s all about being proactive and building strong, transparent relationships.
Internally, our teams are in a great place. Our projects are staffed with talented individuals, and we’re confident in our bench strength. Externally, we’re aware that subcontractors may face challenges bringing in younger talent, especially as more of the experienced workforce begins to retire. We monitor task durations closely on our active projects, and we’re always ready to adjust our planning to reflect what we’re actually seeing in the field.
Are there any emerging technologies in your field that have changed the way you do business?
Robert Cantu: AI is unquestionably entering the industry, however little there is little presence in our local industry. Information sharing and management software programs continue to improve at a steady rate.
Jerry Eddinger & Joe Madarus: Technologies such as online permitting and electronic information uploads at most Sonoma County jurisdictions seem to have had a positive impact on wait times, with quicker sharing of information. Making minor changes or additions to the plans is also easier and quicker. There are still some learning curve challenges for all of us, including clearer online instructions and details. Thankfully, local government staff is still available for help via phone and email.
Mike Ghilotti: The biggest pursuit currently is how AI will affect the general engineering industry. It is certainly a resource for management but the field is yet to benefit.
Seth Maze: Absolutely. Artificial intelligence is beginning to transform the construction industry in meaningful ways. For years, we’ve seen AI‑assisted equipment enhance safety, efficiency, and quality — and now, with advances in robotics, those capabilities are only accelerating.
The more recent shift is in AI‑enabled management tools. We’ve started selectively testing and adopting these technologies — with careful oversight — to improve how we plan, coordinate, and execute projects. At GMH, we’ve always embraced innovative tools to reduce waste and increase efficiency. These new capabilities are helping us deliver smarter, more organized projects that offer greater value to our clients.
Joe Meylan: In the field everything is cordless and if you do not know how to do something, there are 20 YouTube videos to show you how. Real time streaming and video between field, design partners and office are saving a lot of time and travel. Sharing information between all parties has really made things easier and helps avoid misunderstandings.
Brandon Schoer: Our current tech stack is very well rounded, and we’re seeing the benefits play out across our projects. While we’re always fine-tuning, such as adding new components, adjusting workflows, or evaluating emerging tools, we feel confident about the systems we have in place. They’re giving us what we need right now to operate at a high level.
The biggest value we’ve seen is how technology has streamlined communication with our clients and subcontractors. It’s also giving us real-time visibility into schedules and project financials, which helps us stay proactive, make informed decisions, and keep projects performing at a high rate.
AI is clearly the next wave, and we’re paying close attention. We’re actively testing and researching new AI-driven tools to see where they can add value. While we’ve implemented a few already, we’re also moving forward with a healthy dose of caution. There’s no question AI will become more powerful and integrated over time, but it’s still evolving, and we want to make sure anything we adopt truly fits our business.
What do you consider to be your No. 1 issue right now?
Robert Cantu: Government entitlements and permitting processes have declined in service across the board post-COVID, which poses a continuous barrier and sometimes threats to new and remodel construction starts.
Jerry Eddinger & Joe Madarus: Rising costs for materials and employee benefits dramatically impact project budgets. Coupled with customer uncertainty, the length of time from pre-construction to construction is getting substantially longer.
Mike Ghilotti: Safety. Our field workers are at greater risk than ever from distracted drivers. But more concerning is the challenges they face when it comes to mental health. This is becoming a major health risk and the numbers are growing. Awareness and outreach needs to be increased.
Seth Maze: As GMH grows, one of our top priorities is maintaining a proactive and thoughtful staffing strategy. We’re constantly fine‑tuning our plan to ensure we have the right talent in place to meet demand. Fortunately, we enjoy high employee retention, which we attribute to our strong culture and diverse portfolio of project opportunities. That reputation has consistently attracted high‑caliber candidates when new roles open—an advantage that continues to support our growth.
Joe Meylan: Certainty and confidence in committing to growth and progress. Companies are holding their breath.
Brandon Schroer: We don’t feel that we have a single “No. 1 issue” at the moment. We’re growing the company responsibly with the right clients, the right projects, and the right talent to support them. That said, we’re very aware of the economic headwinds many of our clients are still navigating. We’re doing everything we can to help them overcome these hurdles, and our subcontractors are a key part of that process.
By working together, we’re able to develop project strategies that align with the client’s financial position and support their efforts to secure the funding they need to move forward. We believe there’s light at the end of the tunnel, and when that relief comes, we’ll all be in a great position to hit the ground running.
What has been challenging for us is keeping our project teams aligned and engaged when a project experiences delays. We’ve had to get creative, adapting how we assign work and keep people involved while a project is still in the preconstruction or funding stage. The key has been open and honest communication with our clients. When we’re transparent about the situation on both sides, we’re able to make better decisions and keep our teams focused, productive, and connected to the project from the start.
