By Debbie Hall
The economy is in flux with fuel, goods, services, food and beverage costs, all of which create challenging times for general contractors. There are contracts with set prices that might cause losses and negotiate future projects with rising costs and tighter margins.
According to automotive-fleet.com, gas prices continue to dip for a second week, with prices falling in most United States (U.S.) states. The national average cost of gas currently stands at $3.14, according to U.S. Energy Information Administration (EIA) data. However, some states have seen increases due to localized price cycling. According to GasBuddy’s Head of Petroleum Analysis, Patrick De Haan, oil prices have been rallying over the past week, but that can change.
The USDA Economic Research Service (ERS) reports that the all-items Consumer Price Index (CPI), a measure of economy-wide inflation, increased by 0.2 percent from February 2025 to March 2025. In 2025, overall food prices are anticipated to rise slightly faster than the historical average rate of growth. Prices for all food are predicted to increase by 3.5 percent, with a prediction interval of 1.9 to 5.1 percent. Food-away-from-home prices are predicted to increase by 3.8 percent, with a prediction interval of 2.8 to 4.7 percent.
Fuel prices impact the transportation of goods, and food prices impact more than meals. General contractors are now attempting to forecast the economic future, prices, availability and ROI.
“We know that the market is shifting rapidly, so we’ve had to get creative to keep our prices stable. We have been actively exploring different options,” explained Cesar Jaramillo, chief revenue officer, at Expo Convention Contractors, Inc.
General contractors are exploring other regions, including Central and South America. H&Co. forecasts, “Latin America continues to be a dynamic region for international trade, offering diverse opportunities for investors and multinational companies. As of 2025, the region has demonstrated resilience and adaptability, with significant growth in various sectors. Agricultural exports play a key role in food security, supply chain stability and sustainable trade development.”
South America primarily exports valuable commodities, including food products, fuels and raw materials. Key exports include sugar, bananas, cocoa, coffee, tobacco, beef, corn and wheat.
As for transportation, general contractors with multiple locations and/or partners throughout the U.S. are relying on those offices to bring goods and vendors to a location at a reduced cost. Companies such as Expo Convention Contractors, Inc. offer multi-city contracts to their clients and provide their company trucking services to keep costs down.
When negotiating prices for 2025, “We encourage our organizers or exhibitors to use the inventory we normally use show-to-show. We can offer things already in place and use in multiple shows,” said Jaramillo. “If it’s a small increase, 3 percent or 6 percent, we transfer that into the final price to the customer. But we try to negotiate hard to ensure it doesn’t affect the final line.”
General contractors are now in the mindset, especially in decor and furniture, to purchase inventory that can be reused when designing. This keeps costs at the same price while general contractors work with their clients and vendors.
This story originally appeared in the Q3 2025 issue of Exhibit City News, p. 66. For original layout, visit https://issuu.com/exhibitcitynews/docs/exhibit_city_news_-_jul_aug_sept_2025/66.
