August 18, 2025 • View in browser

NLBMDA Weekly is our newsletter covering everything from the latest activity in Washington to updates from our members. This is the premier source of federal legislative, regulatory, and industry news for NLBMDA members.

A tour of McCray Lumber in Kansas City, Kansas during the 2023 ProDealer Industry Summit.

Commerce Department Expands Section 232 Steel and Aluminum Tariffs

The Department of Commerce has finalized its first set of additions under the Section 232 derivative product inclusion process, significantly broadening the scope of goods subject to steel and aluminum tariffs. Beginning today, over 400 new Harmonized Tariff Schedule (HTSUS) provisions will carry duties based on the value of their steel or aluminum content. Products range widely, covering chemicals, coatings, personal care items, machinery and parts, electrical equipment, rail stock, vehicles, tools, furniture, aluminum containers, hardware, and certain plastics.

In May, the Bureau of Industry and Security launched a two-week comment period where stakeholders were able to submit petitions for additional products to be included under the Section 232 steel and aluminum tariffs. Following a review of those submissions, the Department determined it would add 407 additional product codes to be considered a derivative product of either steel or aluminum and therefore subject to a 50% tariff. The Commerce Department is expected to launch a second inclusion period later this year, opening the door for future widening of goods covered by the Section 232 steel and aluminum tariffs. 

US Government and China Agree to 90-Day Trade Negotiation Extension

The White House has announced a 90-day extension of negotiations between the United States and China, hours before elevated tariffs were scheduled to be enacted. The executive order, maintains the 30% tariff currently be imposed by the U.S. on Chinese goods and keeps a 10% tariffs being levied on U.S. exports to China. Negotiations between the two countries remain ongoing as the U.S. seeks to balance a stated trade deficit of $300B between the two countries.

According to U.S. Census data, imports of Chinese goods into the U.S. have declined sharply compared to 2024 levels. In June 2024, the U.S. imported approximately $34 billion in goods from China, nearly double the $18 billion imported during the same month this year. The 90-day pause is scheduled to end on November 10^th, after which the U.S. will impose elevated tariffs on Chinese imports unless an agreement or new extension is announced. 

Greg Brooks Announced as Moderator for ProDealer 2025 Independent Dealers Panel

Join us at the ProDealer Industry Summit featuring Greg Brooks, housing analyst, industry veteran, and moderator of the upcoming session How Independent Dealers Win. With 56 years in the construction supply business, Greg brings unmatched expertise as editor of LBM Executive, moderator of the Executive Council on Construction Supply, and steering committee member at the Harvard Joint Center for Housing Studies. Don’t miss this powerful discussion where industry leaders share proven strategies to help independent dealers stand out, stay competitive, and thrive in any market.

Call for Silent Auction Donations at ProDealer 2025

Support NLBMDA’s Legislative Action Fund by donating to this year’s Silent Auction! Each contribution helps strengthen our advocacy efforts in Washington while giving members the chance to bid on exciting items. Popular donations in past years have included sports memorabilia, electronics, outdoor gear, cigars, jewelry, art, wine and spirits, and more. If you’d like to showcase your support and generosity, simply complete the donation form below and help make this year’s auction a success.

Watch the Webinar: The Lumber Market is Easy to Beat When You Know What's Coming

Watch our webinar recording where Matt Layman, Owner and Publisher of Layman's Lumber Guide, shared the latest highlights from their lumber market analysis and forecast. Matt Layman has worked in lumber commodities for nearly four decades, drawing on a wealth of real-world experience. In the summer of 1984 Matt began creating The Pine Page, and the first issue was published in May 1985 as a southern yellow pine lumber and plywood market analysis and forecast. In 1992 The Pine Page expanded and rebranded as Layman’s Lumber Guide and became Layman’s full-time occupation.

Special NLBMDA Member Benefit:

• One-month FREE trial of Layman’s Lumber Guide
• 20% off all annual paid-in-full memberships after the trial
• Half of your discount goes to you—the other half will be donated to NLBMDA to support our advocacy work on behalf of the lumber industry

Don’t miss this opportunity to gain valuable market insight and give back to the association that works for you.

SalesJack Joins NLBMDA’s Manufacturers and Services Council

The National Lumber and Building Material Dealers Association (NLBMDA) announced today that SalesJack is the newest member of the Association’s Manufacturers and Services Council (MSC). The Council is composed of the leading building material manufacturers and service providers serving the LBM industry.

“We’re thrilled to join NLBMDA’s Manufacturers and Services Council,” said Ryan Dempsey, CEO of SalesJack. “Independent dealers are the backbone of this industry, and our mission is to give them modern, easy-to-use tools that help them grow and thrive. We’re excited to collaborate with other MSC members and contribute to the future of LBM.”

Personalized Entry-Level Driver Training Certification for NLBMDA Members

The National Lumber and Building Material Dealers Association (NLBMDA) has partnered with J.J. Keller & Associates, Inc. to offer members of the association an exclusive discount on certifying trainers in entry-level driver training (ELDT).

With J. J. Keller’s Safe & Smart® ELDT Certification Program, trainers will gain the skills and knowledge they need to train drivers to prevent accidents, avoid violations, reduce liability, and begin a safe career at your company. After completing this program, driver trainers will be prepared to effectively deliver J.J. Keller’s Safe & Smart® ELDT curriculum online, in the classroom, on the range and on the road. It’s the industry’s most hand-on, customizable trainer certification program, providing the flexibility to train your trainers when and how it works best for you. Not only is it ideal for new drivers, it’s also ideal for existing trainers who want to build their skills for the life of your drivers — and be able to continue coaching them the entire way.

Builder Confidence Remains Low Amid Affordability Challenges

Builder confidence in the U.S. housing market held near historic lows in August, with the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index at 32, down one point from July. Sentiment has stayed below 35 for several months, reflecting 16 consecutive months in negative territory. High mortgage rates, weak buyer traffic, and ongoing supply-side challenges, including regulatory hurdles, continue to weigh on builders. In August, 37% of builders reported cutting prices, with an average reduction of 5%, while the use of sales incentives rose to 66%, the highest post-Covid level. Regional averages showed modest shifts, with the Northeast at 44, the Midwest at 42, the South at 29, and the West at 24. Builders remain cautious as affordability issues persist.

Small Business Optimism Hits Highest Level Since February

The National Federation of Independent Businesses (NFIB) Small Business Optimism Index rose 1.7 points in July to 100.3, its highest level since February and above forecasts of 98.9. This marks the third consecutive month above the historical average, placing the index in the 62nd percentile of its series. Six of the index’s ten components improved, including stronger expectations for business conditions and expansion opportunities.

Labor quality and national trade policy uncertainty were reported as top challenge for small business owners, while concerns over poor sales reached their highest level since February 2021. Inflation remained the lowest concern since September 2021. Overall business health improved, with 65% rating conditions as good or excellent. The index continues to closely track consumer confidence and sentiment, reflecting cautious optimism on Main Street.

The Virginia Tech–USDA Forest Service Released Housing Commentary for June 2025

Housing data showed mixed results in June 2025, with most indicators trending negative both month-over-month and year-over-year. On the upside, multi-family starts and permits improved year-over-year, along with completions, new home sales, and total construction spending. Month-over-month, new single-family home sales also posted gains. Still, affordability challenges remain as higher mortgage rates continue to weigh on the market. According to the Atlanta Fed’s August 15 GDPNow™ forecast, residential investment spending for Q3 2025 is projected at 1.1%, with notable declines expected in new private permanent site expenditures (-7.3%) and manufactured/mobile home expenditures (-1.5%), while improvement spending holds slightly positive at 0.8%.

Even so, significant challenges persist. Elevated mortgage rates, inflation, global conflicts, labor shortages, restrictive building regulations, and slower-than-normal household formations all continue to pressure the housing sector. While the underlying desire for homeownership remains strong, both buyers and sellers are approaching the market cautiously amid ongoing uncertainty. Still, some experts see signs of transition. “Currently, the housing market is gradually rebalancing toward a new, more buyer-friendly real estate cycle… it’s rebalancing, not busting, and in doing so setting the stage for a new real estate cycle,” said Odeta Kushi, Deputy Chief Economist at First American Financial Corporation. This month’s commentary also includes forecasts for 2025, remodeling trends, and broader housing market observations across the U.S.

Federal Court Vacates Federal Reserve Debit Card Fee Cap Rulemaking, Cites Overreach

A federal judge in North Dakota has struck down the Federal Reserve’s 2011 Regulation II, which intended to cap debit card interchange fees, ruling that the Fed exceeded the authority granted by Congress under the Durbin Amendment. Enacted in 2010, the Durbin Amendment requires that interchange fees charged by debit card issuers be “reasonable and proportional to the cost incurred by the issuer.” The ruling comes from Corner Post, Inc. v. Board of Governors of the Federal Reserve System, a lawsuit brought by a North Dakota convenience store and supported by the NFIB and other small business groups. Attorneys for Corner Post argued that the 2011 regulation does not reflect the legislative intent of the Durbin Amendment and has resulted in increased costs for small businesses continuing to pay elevated debit card swipe fees.

In vacating the rule, the judge directed the Board of Governors to issue new regulations consistent with the Durbin Amendment’s legislative intent. The government has 60 days to appeal the decision, during which time the ruling will not take effect. While litigation is expected to continue, new rulemaking will ultimately shape future debit card fee standards and determine how fees are applied to individual transactions across the country. NLBMDA will continue to monitor this litigation and support a final resolution that reduces swipe fees, which have disproportionately burdened small businesses and LBM dealers. 

Reps. Mike Flood and Britanny Pettersen Introduce Pro-Housing Supply Legislation

Prior to departing for the August recess, Reps. Mike Flood (R-NE) and Britanny Pettersen (D-CO) have introduced the Identifying Regulatory Barriers to Housing Supply Act, bipartisan legislation intended to address America’s growing housing shortage. A companion bill was also introduced in the Senate by Sens. Todd Young (R-IN) and Brian Schatz (D-HI). The legislation would direct federal agencies to review state and local policies that potentially limit housing development through policies such as exclusionary zoning rules, lengthy permitting processes and other barriers.

While the legislation does not create a federal requirement, the bill if enacted would highlight obstacles at the state and local levels currently limiting housing development. With regulatory costs being one of the largest barriers to new residential construction, NLBMDA is supportive of the legislation and is committed to working with industry partners to advance the legislation through Congress. More information, including the bill’s legislative text, can be found here. 

OSHA Releases Compilation of Public Comments on Proposed Heat Rule

OSHA has released a compilation of public feedback submitted to the agency following a recently concluded public hearing as it works to finalize its rulemaking on Heat Injury and Illness Prevention.  NLBMDA’s comments on the rulemaking largely reflected sentiment shared by the larger business community. A prevailing theme amongst comments was the call for exemptions, flexibility, and performance-based standards to reduce unintended administrative burdens on small businesses. The rulemaking, which began in the Biden-administration, would impose new requirements for businesses whose employees work in an outdoor setting during a standard workday. Final comments to the agency are due September 30^th, thereafter OSHA is expected to issue any potential revisions to the rulemaking before final promulgation. 

The 2025 Top 150 Leaderboard

In business, we keep score with dollars. That’s the overarching idea that fuels the effort behind the HBSDealer Top 150 Leaderboard. Through research, interviews, S.E.C. filings and published reports, HBSDealer editors have tracked the leading companies in the hardware and building supply space.

The Most Exciting 4 Hours in the Hardware Industry – LMC’s Hardware Express

4 hours. 50+ suppliers. 1 co-op. The premier hardware event for LMC dealers, the Hardware Express, returned to Chicago, bringing together suppliers, dealers, and LMC staff for the most exciting four hours in the hardware industry.

Snavely, Weyerhaeuser forge alliance

Snavely Forest Products, a wholly-owned subsidiary of MacArthur Company, has announced a strategic partnership with Weyerhaeuser, manufacturer of Trus Joist engineered wood products. Snavely says this collaboration will enhance the company's ability to serve professional builders and dealers with structural framing solutions across key markets.

Federated Insurance® Named to the 2025 Ward’s 50® Group of Top Performers

Federated Mutual Insurance Company and Federated Life Insurance Company have been named to Ward’s 50 lists of top performing companies for property-casualty and life-health in 2025, respectively. Federated is one of only six companies to earn a spot on both lists.

Dakota County Lumber Aids in Disaster Relief

Last week, Dakota County Lumber filled a Heart Ministries truck full of windows, doors, and other millwork that would otherwise be scrapped. These materials will now be headed to assist in the rebuilding efforts from natural disasters in Western North Carolina and Texas. We love a good win-win, and being able to take what we no longer need and use it to help those in need is definitely that!

“Leave It Better Than You Found It” is one of our Core Values, and it includes people and places. We are happy to partner with Heart Ministries to build up communities, and have loved seeing our customers and vendors get involved with this effort as well. If any of our followers are interested in partnering with us and Heart Ministries, feel free to DM us for more information.