Corporate Statements Hint at Effects of Recent Immigration Policies

As the new immigration policies that accompanied President Donald Trump’s return to office in January continue to take shape, U.S. companies are getting a better idea of how the measures will affect their businesses. In risk disclosures and earnings calls, companies are now beginning to discuss the government’s efforts. We surveyed recent public filings to get a better sense of how they see immigration enforcement impacting the labor pool and their finances and operations.

Builders FirstSource, Inc.

Naturally, some companies still believe it is too early to say what the federal government’s immigration enforcement policies mean to them. The subject came up during a May earnings call for Builders FirstSource, which manufactures and supplies building materials. Responding to a question about possible labor disruptions, CEO Peter Jackson said the company will continue to use third-party subcontractors “where it makes sense.” Jackson also noted that “time will tell how much on-the-ground impact is going to come out of some of the conversations around immigration.”

Constellation Brands

The behavior of consumers in response to the current administration’s immigration enforcement policies is apparently weighing on Constellation Brands, which owns beer brands Corona, Modelo and Pacifico. Speaking on an earnings call in June, Constellation CEO William A. Newlands said roughly half of the company’s business comes from “the Hispanic community.” Its research indicates the “whole immigration question” is causing concern among this group of consumers. That is discouraging them from doing things like going out to eat and attending social gatherings, according to Newlands.

Darden Restaurants, Inc.

Darden Restaurants President and CEO Rick Cardenas has downplayed the effects of immigration policies on the current state of the labor market. Headquartered in Orlando, Fla., Darden Restaurants owns and operates several high-profile chains including Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, The Capital Grille, and Chuy’s. During an earnings call in June, Cardenas said the company has not “really seen an uptick in turnover”; in fact, he said its brands have actually seen “record” retention levels.

“We’re not really seeing a material impact on turnover or people showing up to work from day to day,” Cardenas said. “Things fluctuate in our restaurants. But as of now, nothing material on the top line or on labor.”

Hawaiian Electric Industries, Inc.

The likelihood of a policy-driven recession appears to be a major concern in some corners. Hawaiian Electric, the primary electricity provider in Hawaii, said in a Form 10-Q filed in May that it expects recession risks to increase. The company attributed the likelihood of an economic downturn to “federal policies and actions, including trade policies, mass deportations, and spending cuts.” It suggested Hawaii’s economy would enter a “mild recession” later this year or in 2026.

HireQuest, Inc.

Other companies sounded more optimistic about what could be in store for their businesses. In a May earnings call, HireQuest CEO Richard Hermanns said the company, which provides staffing services across industries such as construction, healthcare, manufacturing, cybersecurity, and engineering, has seen “encouraging progress” because “more stringent” immigration policies are now being enforced by the federal government.

Hermanns indicated HireQuest believes more lenient immigration policies affect the market for temporary work and day labor. “Enhanced immigration enforcement by ICE is now requiring employers to hire documented workers,” Hermanns said.

NetApp, Inc.

Tighter immigration controls don’t appear to help companies like data infrastructure provider NetApp, Inc., though. The company’s Form 10-K filed in June said its business, operating results, financial condition and cash flows could be harmed if it is unable to attract and retain qualified personnel – a possibility if additional limitations on immigration are imposed. Of particular concern are limits on H-1B visas, which have long provided a path for white collar professionals to enter the U.S.

NetApp pointed out that many of its employees are foreign nationals who obtain visas, licenses, and entry permits to work legally in the U.S. and other countries. Restrictions or difficulties in obtaining them, complying with new immigration and labor laws, and dealing with changes to immigration policy or enforcement of existing immigration laws could “lead to unexpected labor costs and hinder our ability to retain and attract skilled professionals, negatively impacting our business, results of operations or financial conditions.”

Smithfield Foods, Inc.

Smithfield Foods, a pork producer and food processing company, expressed sentiments similar to NetApp. In a Form 10-K filed in March, the Virginia-based food company mentioned that new immigration laws could potentially increase its costs for recruiting, training and retaining employees.

Moreover, Smithfield noted it expects to see increased costs related to complying with federal law in reviewing employees’ immigration statuses, and the changes could also create employee shortages. Smithfield added that increasing enforcement efforts of existing immigration laws could disrupt a portion of its workforce or operations: “There can be no assurance that these activities or consequences will not adversely affect our business, financial condition or results of operations in the future.”

Western Union

Western Union CEO Devin McGranahan took an opportunity during a May earnings call to express support for comprehensive immigration reform. According to McGranahan, every “developed country in the world is dependent on inbound labor to sustain positive GDP growth,” given current birth rates.

In the short term, McGranahan said, most of the company’s customers are already in the United States. That means decreased “immigrant flow” would have a greater effect on its business in Latin America than North America. Instead, the larger issue for Western Union in North America is the possibility that people would be more reluctant to venture out in public to send money, McGranahan said.

Zevin Asset Management

Zevin Asset Management, a self-described “socially responsible” investment firm that owns shares in Google’s parent company Alphabet, has raised concerns about the possibility of inflation due to recent immigration policy changes. In a market outlook released in February, Zevin stated the White House proposals for “mass deportation of undocumented persons and higher tariffs on imported foreign goods are widely seen as inflationary.” According to Zevin, “the severity of these policies, if executed, may likely be a wild card that influences market performance positively or negatively in 2025.”

***

Given the administration’s focus on immigration policy, it seems unlikely to scale back its approach to immigration anytime soon. As such, immigration policy will likely remain top of mind for corporations in the months to come.