HOUSTON — One of Houston’s most prolific builders of hospitals said clients are already responding to the impact of proposed tariffs, which are exacerbating supply chain issues exposed by the COVID-19 pandemic.

Preston Hodges, senior vice president of McCarthy Building Cos., said the firm is taking a project-by-project approach when it comes to navigating tariffs that could have a big impact on the many hospital projects the company is working on in Houston.

One clear impact is that clients are speeding up their purchasing timeline, he added. “If (hospitals) have some cushion and contingency in their budget, … they better (go) full pedal on the gas because I don’t think anything’s going to get cheaper,” Hodges said. “I think everyone can agree that prices are going to continue to rise, so if you need to build it, build it now, buy it soon, either to avoid the tariffs or to avoid continued escalation.”

This year, McCarthy is continuing work on Harris Health System’s new Lyndon B. Johnson Hospital campus, for which taxpayers approved a $2.5 billion bond in November 2023.