February 3, 2025 • View in browser | |
Formerly "Dealer Digest," NLBMDA Weekly is the premier source of federal legislative, regulatory, and industry news for NLBMDA members. | |
Latest Updates on Tariffs and NLBMDA’s Actions | |
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On Saturday, February 1st, President Trump formalized plans to enact a 25% tariff on most goods originating from Canada and Mexico effective at midnight, February 4th. The White House also announced it would implement a 10% tariff on Chinese imports. In response, the governments of both Canada and Mexico announced retaliatory tariffs, causing an immediate downturn in global markets.
Earlier today, the White House and Mexican President Claudia Sheinbaum announced a temporary agreement between the two governments which would pause the rollout of tariffs for one month. The agreement was conditional on Mexico sending 10,00 national guard troops to the U.S. southern border to block the flow of drugs in the United States. Late Monday afternoon, President Trump and Canadian Prime Minister Justin Trudeau announced a similar 30-day pause on tariffs between Canada and the United States. The agreement includes new assurances by the Canadian government to combat organized crime, fentanyl, and money laundering at the U.S.-Canada border. Prime Minster Trudeau has pledged an additional $200 million to support these efforts.
As we shared last Friday, NLBMDA is working alongside our trade association partners to urge the Trump Administration to reconsider the current tariff strategy due to the immediate impact the measures would have on the cost of building materials and other goods. NLBMDA is finalizing a letter to the White House and will share that letter with our members once it has been transmitted. NLBMDA will continue to be persistent in our outreach to lawmakers and White House officials to remind them of the immediate impacts tariffs would have on the costs of building materials and housing affordability.
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Latest on the Corporate Transparency Act | |
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The Corporate Transparency Act (CTA) continues to be in the news following the SCOTUS ruling which lifted the temporary nationwide CTA injunction issued by a Texas judge in the case, Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland. The Financial Crimes Enforcement Network (FinCEN), which oversees the implementation of the Corporate Transparency Act (CTA), released an updated guidance in the aftermath of the SCOTUS ruling. FinCEN has stated that despite the SCOTUS ruling, it will continue to halt the CTA’s reporting requirements due to a separate nationwide injunction.
Last Monday, NLBMDA sent a letter to the White House requesting that President Trump issue an indefinite administrative delay of the CTA reporting requirement while the court cases challenging the CTA move through the courts. The letter was cosigned by over 60 trade associations and shares the small business perspective with the president through outlining the immediate impacts of not issuing an indefinite CTA delay.
Read NLBMDA’s latest guidance on the CTA here.
Read NLBMDA’s Press Release on the CTA White House Letter here.
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Register Today for the 2025 Spring Meeting and Legislative Conference | |
NLBMDA is excited to announce that registration is now open for its Spring Meeting and Legislative Conference to be held in Washington, D.C. from April 1-2 at the Westin Washington, D.C. City Center. This premier event is an incredible opportunity to remind leaders of the importance of our industry and advance the advocacy agendas of NLBMDA. This conference includes many opportunities to learn about key issues affecting the lumber and building material industry from Washington policy experts.
The event will culminate with a day for you to conduct in-person meetings with your elected officials in Congress, making your voice heard on Capitol Hill. You won’t want to miss a minute of this program.
This is a member-only event. Be sure to register by Friday, February 28 to receive a discounted rate. Don't delay, register today!
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NLBMDA Meets With 119th Congress on Capitol Hill
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NLBMDA recently met with freshman Congressman Gabe Evans (R-CO) along with other lawmakers to discuss a variety of NLBMDA legislative priorities. NLBMDA’s President & CEO Jonathan Paine and Government Affairs Coordinator Matthew Delaney outlined several important issue areas for the LBM industry including supporting reintroduction Credit Card Competition Act which would lower excess credit card swipe fees.
NLBMDA also met with Congressman Randy Weber (R-TX) and thanked him for his continued support of the Death Tax repeal act and Big Brother Overreach CTA repeal bill.
Delaney and NLBMDA will maintain a strong presence on Capitol Hill to ensure LBM priorities are advanced during the 119th Congress.
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Freddie Mac Release January Economic, Housing, and Mortgage Outlook | |
The U.S. economy showed stronger than expected growth in Q3 2024, with real GDP rising 3.1%, fueled by consumer spending and exports according to a recent outlook report released by Fredie Mac. Despite a slowdown in residential investment, the labor market remained strong, adding 256,000 jobs in December. Inflation cooled from 2022 highs but remained above the Federal Reserve's target. As for housing, home sales increased in November 2024 despite higher mortgage rates, though housing construction and builder confidence weakened. House prices continued to rise but at a slower pace, largely due to limited inventory and high mortgage rates.
Looking ahead to 2025, Freddie Mac expects the U.S. economy to grow at a moderate pace. Job growth is anticipated to slow, and inflation may take longer to reach the Fed’s 2% target. In the housing market, higher mortgage rates are expected to persist. Home prices are forecasted to appreciate moderately. Overall, the outlook for 2025 suggests stable economic growth and a slightly more active housing market.
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National Association of Home Builders Cost of Constructing a Home Survey Results | |
The National Association of Home Builders (NAHB) conducted their Cost of Construction survey in Fall 2024 and released the results on January 20th. The survey shows that "on average, 64.4% of the sales price is due to construction costs and 13.7% to finished lot costs. On average, builder profit is 11.0% of the sales price," said Eric Lynch, CBE.
The average construction cost per square foot in a single-family home is $162, the highest in the survey's history. Lynch attributes this to ongoing shortages in construction labor, leading to elevated wage growth. This differs from the findings of the 2022 survey, which attributed the rising construction cost to an increase in building material prices that has since leveled out.
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Angi Releases 2024 State of Home Spending Report | |
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Angi's 2024 State of Home Spending Report explores trends from the past year and predictions for 2025. "While total home project spending declined by 12% in 2024, the enduring commitment to maintaining and enhancing homes remains evident, with 93% of homeowners planning projects in 2025," the report shares.
The challenges that prevent home spending include unexpected costs such as materials and labor, skilled labor shortages, affordability concerns, and rising stress levels. Meanwhile, the factors contributing to the projected increase in home maintenance projects include future-focused budgeting, an increasing interest in sustainability, and the rise of multigenerational households.
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NLBMDA Cosigns Letter Opposing Sen. Hawley Labor Reform Framework | |
NLBMDA has sent a letter to members of the U.S. Senate outlining concerns with a legislative framework recently announced by Senator Josh Hawley (R-MO). The framework includes many of the provisions contained in the PRO Act, legislation which was rejected by the last Congress.
The letter was authored by the Coalition for a Democratic Workplace (CDW) and has been cosigned by NLBMDA and over a dozen trade associations. If turned into law, Hawley’s framework would mandate that representation elections be held within twenty days after a union files a petition for an election. Referred to as “ambush” elections, the National Labor Relations Board (NLRB) and Congress have rejected the tactic as they prevent employers, especially small businesses from having the requisite time necessary to discuss potential unionization with their employees.
Other trade associations including the National Retail Federation have released statements against the policy framework.
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House Republicans Hold Florida Retreat to Formulate Tax Bill | |
While the Senate was at work advancing President Trump’s cabinet nominations, the House was in recess last week giving House Republicans the opportunity to gather in Florida to begin drafting its cornerstone piece legislation, the highly anticipated tax bill.
The biggest challenge for Congressional Republicans will be identifying and more importantly agreeing on where to cut funding to balance the high price tag of extending the 2017 tax cuts. Following the meeting, Republicans were confident they had a “blueprint” for the spending cuts though did not announce a top line number.
Lawmakers are working against a self-imposed deadline of early April to pass a budget reconciliation bill which would include the comprehensive tax bill. Washington insiders are skeptical of the aggressive timeline given Republican’s thin House majority and continued disagreements on top level spending cuts. During the first Trump administration, lawmakers did not pass a tax bill until December.
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Federal Judge to Further Block White House Funding Freeze | |
As NLBMDA shared in its Washington update last Monday, the White House Office of Management and Budget (OMB) released a directive to all executive departments and agencies ordering a total freeze on "all federal financial assistance." There was confusion among lawmakers and bureaucrats immediately following the release of the memo with access to some government programs being temporarily restricted while the White House worked to address the confusion.
A federal judge in Washington issued a temporary halt blocking the funding freeze until at least Monday, Feb. 3rd. Following the court order, the Trump Administration rescinded the OMB directive though White House Press Secretary stated the retraction “is NOT a recission of the federal funding freeze.” Because of the uncertainty, several courts are proceeding with litigation challenging the OMB directive and are expected to issue new ruling further halting the implementation of a funding freeze.
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President Trump Issues Regulatory Freeze Pausing Existing Rulemaking | |
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As we covered in our Washington Update last week, President Trump has issued a regulatory freeze pausing existing rulemaking. Because of this, developments on the regulatory front are expected to be light as the Trump administration reviews existing rulemaking. Read our latest below:
On day one, President Trump issued a memorandum to all executive departments and agencies to halt all rulemaking that agencies have not yet published in the Federal Register. The “freeze” gives the opportunity for the Administration to review and possibly modify existing rulemaking efforts to ensure they align with the Administration’s priorities. Recently, this has been the standard procedure for any new presidential administration. President Trump issued a similar freeze when taking office in 2017 and President Biden’s administration issued a freeze in 2021.
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Simpson Strong-Tie Donates $100,000 for Los Angeles Wildfire Relief | |
In response to the devastating wildfires still ongoing in Los Angeles, Simpson Strong-Tie is donating $100,000 to the American Red Cross to support disaster relief efforts in affected areas. | |
In the buildup to its Spring Dealer Market in New Orleans, Orgill has announced several new vendor partnerships. From Big Green Egg and GE Lighting to Feathered Friend and Sunnyside, Orgill says these new vendors will be "present and ready to do business" at the company's Dealer Market scheduled for February 20-22 at the Ernest N. Morial Convention Center in New Orleans. | |
Highlights from the LBM CEO Summit | |
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From industrialized construction to the U.S.-Canada lumber trade dispute; and from digital commerce to mergers and acquisitions, the inaugural LBM CEO Summit took on many of the major topics—both challenges and opportunities—facing industry leaders.
Members in attendance included Misura Group's Tony Misura and Lindsey DiGangi, VP of field operations for PLM.
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Curtis Lumber acquires JAY-K Independent Lumber | |
JAY-K has been in business for 87 years through three generations, according to Curtis Lumber. Curtis Lumber reports that the company and JAY-K "have had a friendly and mutually respectful relationship for years," which it says will pave the way for "a smooth and successful transition for employees and customers alike." | |
LMC has shared a series of title changes, promotions and role advancements. | |
LMC Leaders Gather for Transformative Executive Education Program at Wharton | |
The LMC Executive Education Program brought leaders from the LMC network across the country together for a week of reflection and innovation. Held from January 20–23, 2025, at the Aresty Institute of Executive Education at the Wharton School of the University of Pennsylvania, the program continues to solidify its reputation as a must-attend event for industry professionals. | |
LMC Welcomes Franklin Homes to Its Modular Division, Expanding Nationwide Reach | |
LMC is thrilled to welcome Franklin Homes, a premier manufacturer of high-quality manufactured homes, to its Modular Division. This partnership marks a significant step in LMC's mission to expand the division across the United States. | | | | |
