Editor's Note: The strike by 45,000 dockworkers along the country's East and Gulf Coasts initiated earlier this week is now over. The union members suspended what was the largest-scale strike in more than a generation, until Jan. 15, the Associated Press reported.

The strike blocked everything going out — and coming in — the country across 36 ports from Maine to Texas. It's estimated roughly half of all containerized goods come into East and Gulf Coast ports. 

Analysts warn that it will cost the economy billions of dollars daily, threaten jobs, and disrupt the supply chain, including roofing and building materials. Following disruptions caused by a once-in-a-lifetime global pandemic, the supply chain took nearly 18 months to right itself. 

President Joe Biden and his administration have steadfastly refused to intervene and use federal powers to end the strike. On Tuesday, the president pressured dockworker employers to bump up their contract offer to make a deal.

The International Longshoremen's Association union, representing the 45,000 port workers, had been negotiating with the United States Maritime Alliance (USMX) employer group for a new six-year contract ahead of the midnight Monday deadline.

Reports are that the sides continue talking, but there was no active bargaining as of late Tuesday, and the strike appeared to be headed into a third day. Negotiations between the USMX and the International Longshoreman's Association have stalled for a master contract that expired on September 30.

The ILA shut down all ports from Maine to Texas at 12:01 a.m. ET on Monday after rejecting USMX's final proposal. It added that the offer fell "far short of the demands of its members to ratify a new contract."

ILA leader Harold Daggett said employers have not offered appropriate pay increases or agreed to demands to stop port automation projects that threaten jobs. The ILA represents 85,000 longshoremen, and this is the first strike to hit America's ports since 1977.

In a twist of events, the USMX filed an unfair labor practice charge with the National Labor Relations Board ahead of the strike deadline, requesting "immediate injunctive relief—requiring the Union to resume bargaining—so that we can negotiate a deal."

In response, the ILA released a statement on its website stating that it was made in bad faith and calling it a "publicity stunt" and a "weak publicity campaign." 

"USMX filing these charges four days before the expiration of the current Master Contract clearly illustrates what poor negotiating partners they have been," the ILA said. "If it [weren't] for the ILA engaging in serious and productive negotiations, most of the local agreements would not have been settled over the past year."

The Impact on Roofing

Craig Brightup, CEO of The Brightup Group, a government relations consulting firm in Washington, D.C., said in terms of the roofing industry, companies installing roofing systems that rely on critical components coming over in these ports will feel the effects first.

"[T]here are certain items imported in terms of the commercial roof assembly where, if they don't come over, you can never quite complete the job, that's the scenario that I can see," he said.

Brightup believes roofing could withstand the strike's impact better than other industries, but the ripple effect caused by the overall economic slowdown will not spare roofing companies.

"Different commercial entities that may want to do a new roof system and have that in their plans in the not-too-distant future … if retailers and big-box people and shopping malls are suddenly impacted, they may have to recalibrate their plans to do roof maintenance, repair or have a new roof put on their facility," he said.

However, the industry as a whole, especially companies that import materials and goods from Europe, could be affected.

"Any kind of stoppage on this is going to cause problems; if it's a day or two, even that will cause some, but ultimately they may be able to get that unwound," said Brightup. "If it's longer than that, it really, really could have a big impact."

The National Roofing Contractors Association, which has actively monitored the situation, sent out an update to its members earlier this week. The notification included an analysis by Bill Flemming, senior vice president at Cummings Group, a New York consulting firm, which laid bare the consequences of the work stoppage.

Flemming said the strike's effects would be felt immediately in the construction industry. Should it extend beyond a week, the strike could "cause weeks or months of delays as ships back up and distribution to warehouses and construction sites is impeded."

The specter of a protracted labor dispute follows the devastation wrought by Hurricane Helene, a Category 4 storm that made landfall in the Big Bend section of Florida. The storm brought record flooding as far north as North Carolina and, combined with the escalation of hostilities in the Middle East, has become a Sword of Damocles over the U.S. economy. 

Brightup did not sugarcoat the ramifications of the stoppage and emphasized that the consequences would be felt across nearly all industry sectors.  

"This is something that every major industry, and roofing is a major roofing industry group, needs to be watching," Brightup said. "This could be big."

A coalition letter headed by the National Retail Federation and signed by 177 trade associations, including the NRCA, urged President Biden to work with the ILA and USMX to resume negotiations.

"At this critical juncture, it is imperative that the parties return to the table without engaging in disruptive activities that could harm the economy and the millions of businesses, workers and consumers who rely on the seamless flow of goods, both imports and exports, through our East Coast and Gulf Coast ports," the letter stated.

Political Solutions

Less than 35 days before the presidential election, the potential strike is causing the White House to approach the situation cautiously.

At the end of September, reports said the USMX head had been invited to D.C. to discuss the negotiations with Transportation Secretary Pete Buttigieg, Acting Labor Secretary Julie Su and White House economic adviser Lael Brainard.

"My guess is the White House [implored] … the ILA 'please don't go on strike,' because in the end, it will be to the detriment … of the White House and by implication to Vice President Harris' campaign," Brightup said.

If the strike continues without progress, the president's determination not to intervene may be eclipsed by the damage caused by the work stoppage. In that case, the Biden Administration could use a statute known as the Taft-Hartley Act. The law allows the president to ask a court to order an 80-day cool-off period when the public health or safety of the nation is at risk.

In 2022, Biden and Congress intervened to prevent a railroad strike. In 2023, Su helped broker a deal to avoid a strike with West Coast dockworkers.

Stalemate Conditions

The disagreement between the ILA and USMX boils down to two issues: wages and automation. USMX has said that its offer includes "industry-leading wage increases." At the same time, ILA has previously stated that USMX offers "an unacceptable wage increase package," suggesting that a $5 an hour increase for each year of a six-year agreement only amounts to a 10% annual increase.

Regarding automation, Daggett has said the union will fight to protect its workers from being replaced with automated operations. The technology is currently in use in ports on the West Coast, and the ILA calls for a ban on the automation of cranes, gates and container movers. USMX has said it will retain "the existing technology language that created a framework for modernizing and improving efficiency while protecting jobs and hours."

Brightup believes this is likely the main sticking point, noting that many U.S. ports are antiquated compared to those worldwide.

"The union is adamant that they do not want automation to suddenly be used at the other ports," he said.

According to the USMX, substantive contract discussions first began in 2022. The entities released a joint statement on May 12, saying they expected to complete local negotiations that week and resume contract negotiations. However, it's been reported the groups haven't met since June.

Acting Labor Secretary Su stated that the employer group has declined to present an offer that reflects the workers' sacrifice and contributions to their employers' profits.

"The parties need to get back to the negotiating table, and that must begin with these giant shipping magnates acknowledging that if they can make record profits, their workers should share in that economic success," she told the Reuters news service.

As of this writing, the strike remains in place, and the U.S. economy inches closer to a precipice.

This article was last updated at 22:30 on October 1, reflecting updated events.