The GBTEA says the loss of the hire firm and 25 jobs will test the building industry short term.
SGB ceased trading in both Guernsey and Jersey on Monday (9 March).
Its parent company, the US giant BrandSafway, says it was a difficult decision to make and it is supporting the 25 staff who no longer have jobs.
The Guernsey Building Trades Employers Association says its first concern too is for the staff.
It says it is unclear why the decision was made to close the outlets and BrandSafway does not go into detail.
The trade body says the industry will initially feel the impact as it will limit the availability of some hire equipment.
Its servicing and repair workshop will also be missed.
However, the GBTEA says there is capacity within the industry to deal with the loss of SGB, but it may take a while for other firms to fill the gap.
It appeals to people having building work done to be patient while the Channel Islands market readjusts.
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