Companies warn that massive deportation poses serious business risks
Other submissions suggested that the recession could come sooner. Hanmi Bank, a community bank based on Hanmi Financial Corp.’s holding company, said in a SEC filing that “a combination of tariffs, inflation, deportation, global political unrest, tension and lower availability of credit” could “cause a mild recession in 2025.”
Some companies said deportation could promote labor shortages. In its 2024 annual report, Century Communities, a residential construction company, said that if they fail to hire sufficiently skilled merchants or contractors, it could “have a significant negative impact on our standards of service.”
“The labor shortage can be caused by increased speed of immigration and deportation, as a significant portion of the construction workforce is made up of immigrants, among other factors,” Filing said.
Some companies mentioned deportation, but said they didn’t know how the crackdown would affect their businesses. For example, the holding companies of Banks Bridgewater Bancshares, Heartland Bank and Trust Company and Heritage Bank have mentioned the massive deportation in a list of factors that could affect “pre- and post-statements.” However, businesses have stopped saying whether deportation would harm or help their businesses.
Other companies said deportation poses some risk to the economy, but pointed out they don’t think it will cause widespread damage or damage business.
In submission to the Forum Investment Group’s Real Estate Income Fund, the company said “strengthened immigration control and deportation” could have combined consequences. The filing argues that these policies could increase inflation, but perhaps cools down “benefits for U.S. workers (rising wages)” or “overheated housing markets.”
Some companies argued that if their clients were affected by deportation, their businesses could be at risk. Pacific Airport Group, which operates through airports in Mexico and Jamaica, said policies such as large deportation and international travel restrictions will have a major impact on airport traffic and thus the company’s revenues.
“These measures could create an uncertain economic situation in Mexico, affect leisure, visit friends and relatives, and travel in and out of business trips,” Filing said.
Meanwhile, Cloud Communications and Financial Services Company Idt Corporation said large Deportations could “negatively affect” corporate customers, such as Money, the boss of remittance transfer services, and Boss Revolution, a remittance and international call services company. According to IDT, it argued that anything that disrupts the ability of people to work or travel outside of their country of origin could hurt their customers and therefore their business.
Plysmart, a discount store chain that operates across Central America, said massive deportation could have a devastating impact on the entire region. If foreign workers sending money to families in Guatemala, El Salvador, Nicaragua and Honduras are significantly reduced, the economies of those countries will suffer, and so are stores in price ranges. The company warns that money from foreign workers is “an important source of income and poverty alleviation for millions of families.”