March 31, 2025 • View in browser

Formerly "Dealer Digest," NLBMDA Weekly is the premier source of federal legislative, regulatory, and industry news for NLBMDA members.

NLBMDA Calls for Action in Letter to White House on Looming Tariff Deadline

Last week, NLBMDA sent a letter to President Trump and U.S. Trade Representative Jamieson Greer that called on the administration to limit measures that would have an adverse impact on the cost of lumber and building materials. The letter was sent in advance of new rounds of tariffs expected to go into effect on April 2^nd.

NLBMDA’ s letter was featured in industry trade press alongside other associations making similar requests to the administration. “The United States has an affordable housing crisis and we as a nation must be focused on advocating for measures that reduce construction costs and eliminate regulatory barriers, policies to the contrary will detract from advancing the construction of affordable housing and create uncertainty throughout the housing market,” said NLBMDA President and CEO Jonathan Paine in the letter.

As a new round of tariffs go into effect this week, NLBMDA will remain engaged with stakeholders in Washington and provide the latest up-to-date information to keep members informed.

Our letter to the Administration and press release can be found here. 

NLBMDA Scores a Big Win as Treasury Department Adopts Final Rule Narrowing Scope of Corporate Transparency Act

In a major win for NLBMDA and the business community, the Financial Crimes Enforcement Network (FinCEN) has issued an interim final rule that modifies the existing beneficial ownership information (BOI) reporting obligations under the Corporate Transparency Act (CTA). This rule narrows the scope of reporting to only include foreign reporting companies, exempting domestic reporting companies from the requirement to file initial BOI reports or update previously filed information. As a result, domestic entities no longer fall within the definition of "reporting companies." They are excluded from the reporting requirements, allowing them to avoid submitting or correcting BOI going forward.

NLBMDA joined over 100 trade associations in a trades letter to the Treasury Department applauding the new rulemaking. “We believe these revisions will allow the Department to focus its resources on entities that pose genuine risks of money laundering and other illicit activities, thereby enhancing the effectiveness of our nation's financial crime prevention efforts without imposing undue burdens on legitimate businesses,” the letter writes.

Read our recent communication on the new CTA interim rule here.

Meet the Speakers of the 2025 Spring Meeting and Legislative Conference

Keynote Speaker Announced for 2025 Pro Dealer Industry Summit

Don Longo, Editorial Emeritus of Convenience Store News, will be the keynote speaker for the Closing General Session: Lessons from the Convenience Store Industry: How Independent LBM Dealers Can Compete & Win Against Industry Giants. He will share insights on how independent lumber and building material dealers are navigating an increasingly competitive and consolidated marketplace. The convenience store industry has long faced the same challenges. 

Register now to receive an early bird discount!

Call for Supplier Spotlight Stories

NLBMDA is looking forward to our first Supplier Spotlight of the year! This newsletter is designed to provide NLBMDA's supplier and manufacturer member community the opportunity to showcase their support for the lumber and building material (LBM) industry. The Supplier Spotlight newsletter will feature stories about how members of NLBMDA's Manufacturers and Services Council are giving back to communities across the country, their customers, and being thought leaders and innovators in the LBM industry. Some stories featured in the previous issue were:

• Federated Insurance Donates $448,907 through the Annual United Way Campaign
• Maryland Sales Rep Starts Toy-Building Workshops for Kids in His Community
• Simpson Strong-Tie Donates $30,000 for Hurricane Helene Relief in the Southeastern U.S.

If your company has something to share, please email Lauren Bander at lbander@dealer.org no later than Friday, April 4.

National Association of Home Builders Reports that Nearly 60% of U.S. Households Unable to Afford a $300K Home

The National Association of Home Builders (NAHB) has updated its housing affordability graph for 2025, revealing significant challenges in homeownership. According to the latest data, 76.4 million households, or 57% of the total 134.3 million in the U.S., are unable to afford a $300,000 home. With the median price of a new single-family home at $459,826, roughly 75% of U.S. households are priced out of the market. To address this issue, NAHB has proposed a 10-point plan aimed at removing barriers to housing supply, urging action at local, state, and federal levels to tackle the affordability crisis. NLBMDA has supported several policy solutions aimed at addressing the housing affordability crisis. This week, NLBMDA members will be on Capitol Hill to advocate for the passage of the Affordable Housing Credit Improvement Act. If passed, AHCIA would dramatically strengthen the Low-Income Housing Tax Credit allowing more developers to build affordable housing. 

Cost and Tariff Uncertainty Weighs on Markets

A new report by the National Association of Home Builders illustrates the economic challenges the housing industry faces as uncertainty around tariffs remains high. Financial markets are currently experiencing uncertainty due to the potential impact of tariff hikes, with clarity expected after President Trump’s announcement on April 2. Additionally, the housing sector is seeing reduced builder confidence, with the NAHB/Wells Fargo Housing Market Index reporting a decline in March. Builders have estimated that recent tariffs could increase construction costs by $9,200 per home. However, efforts to extend tax cuts and reform certain regulations could benefit the housing outlook in the long term.

Inflation, particularly in housing, continues to be a concern, with housing costs driving nearly half of the inflation increase in February. While housing inflation shows signs of slowing, rising construction costs, especially for softwood lumber, could further impact affordability. The increase in housing costs has left many households priced out of the market, and the remodeling sector is expected to grow as a result of inadequate housing conditions.

White House Rescinds Rep. Stefanik’s Nomination for U.S. Ambassador to the UN

Last week, the White House announced that it had pulled the nomination of Congresswoman Elise Stefanik (R-NY) to serve as U.S. ambassador to the United Nations. The move by the Administration underscores the tight margins Republicans are operating under in the U.S. House. House Speaker Mike Johnson (R-LA) has stated that he intends to invite Rep. Stefanik back into the House Republican leadership after Stefanik forwent her leadership status to pursue a role within the Administration. On Tuesday, House Republicans are looking to add one more seat to its narrow majority as voters in Florida’s Sixth Congressional district will be voting in a special election to fill a vacancy left by former Congressman and now U.S. National Security Advisor, Michael Walz. Republicans have selected Florida State Senator Randy Fine to rune in the race, a district Walz won by 33% in November. 

U.S. to Breach Debt Ceiling Between July and October, Absent Congressional Action

The Bipartisan Policy Center estimates the U.S. is likely to default on its $36 trillion national debt between mid-July and early October, absent actions taken by Congress to raise the debt ceiling. For weeks, Republican lawmakers have been negotiating on whether to increase the debt limit in its reconciliation package or through bipartisan negotiations with Democrats. Several fiscally focused Republican lawmakers have vowed not to support a measure that would increase the debt ceiling unless significant measures are taken to reduce federal spending. 

The Congressional Budget Office has placed a more urgent timeline on when the U.S. will reach the debt ceiling, estimating the U.S. would run out of money to pay its bills by late May. A specific date is difficult to forecast as there remains uncertainty overt how much texture revenue the U.S. will collect this year. In June 2023, lawmakers agreed to suspend the debt limit until Jan. 1, 2025. In January, the Treasury Department began using “extraordinary measures”, that entail using a series of accounting maneuvers to prolong the time the U.S. can continue to fulfil its fiscal obligations. 

Congressional Budget Office Releases 30-Year Outlook

The Congressional Budget Office (CBO) has released its 30-year outlook that presents its projects of what the federal budget and economy may look like over the next 30 years absent changes to current federal laws. The CBO projects that GDP is expected to increase each year during the 30-year study period. By 2029, CBO predicts that debt will climb to 107 percent of GDP and will reach 156 percent of GDP by 2055. CBO projects moderate increases in labor force growth, increasing at an annualized rate of .3 percent over the 30-year period. Notably, the CBO projection does not factor in potential changes Congress’ draft reconciliation bill may have on the economy at large. 

NLBMDA, 316 Trade Associations Sign onto Letter Opposing Section 301 Investigation Proposed Action. 

NLBMDA has joined 316 trade associations in a joint letter to the U.S. Trade Office (USTR) urging the USTR to refrain from imposing its proposed actions in response to a Section 301 Investigation of China’s Shipbuilding sector. USTR’s proposed remedies calls for increased port fees on Chinese flagged ships that arrive at U.S. ports. Under the rule, Chinese vessel operators will be charged up to $1,000,000 per entrance of any vessel at a U.S. port or $1,000 per ton of vessel capacity. If adopted, the proposed remedies would have sweeping implications across the entirety of the supply chain, especially for goods and materials that originate from Asia. An economic analysis estimates that the proposed measures would add approximately $30 billion in annual costs to U.S. businesses and farmers. The letter, which was authored by the National Retail Federation, can be found here. 

Kodiak expands in ‘thriving’ Idaho

Englewood, Colorado-based Kodiak Building Partners planted its flag in northern Idaho with a greenfield expansion and a new brand: Ponderosa Building Supply. Along with the opening, Kodiak made key hires to oversee growth and performance in the Pacific Northwest. The LBM acquisition firm added Kevin Prosser as area vice president, LBM Idaho and Wyoming; and Tim

These LBM quotes are from the movies

When Kodiak Building Partners announced the creation of its ground up Ponderosa Building Supply, the press release included the following quote attributed to CEO Steve Swinney: “We think big, think positive, and never show any sign of weakness.” You might think it’s not unusual for a CEO to swing for the fences with inspiring words, and maybe go a little over the top.

But wait. Isn’t that a quote from Louis Winthorpe III, the fictional financier played by Dan Aykroyd in the 1983 film “Trading Places,” a comedy classic? Any search engine will quickly reveal that yes, it is.

James Hardie acquires AZEK

James Hardie and The AZEK Company Inc. have entered into a definitive agreement under which James Hardie will acquire AZEK for a combination of cash and James Hardie shares with a total transaction value of $8.75 billion, including AZEK’s net debt of approximately $386 million as of December 31, 2024.

LMC Announces New Chairman and Welcomes Two New Board Members

LMC the longest standing, leading forest products and building materials buying group in the United States is pleased to announce the appointment of Joe Miles, President of rk Miles as Chairman of the Board and the addition of two new board members Nathan Miller, President of Miller Building Supply Inc. and Cory Jameson CEO of Guy C. Lee Lumber & Building Materials.

Wilson Lumber rises with women

Wilson Lumber Company recently celebrated Women in Construction week with a luncheon event. With the theme “Together We Rise,” employees and customers enjoyed a keynote address from Sara Beth Wilcox of Brasfield and Gorrie. 

R.P. Lumber opening Illinois store

R.P. Lumber, a family-owned retail home center and building materials supplier, is opening its 89^th retail location at 3200 Broadway Street in Quincy, Illinois. The store will be opening the week of April 7.