June 23, 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. | | Congress’ Reconciliation Bill & Where NLBMDA Supported Priorities Stand | | |
Last week the Senate Finance Committee, the Senate’s preeminent committee responsible for taxation, heath programs, and other matters, released draft legislative text as the Senate begins work on H.R. 1, Congress’ sweeping reconciliation bill that passed in the U.S. House of Representatives in late May. The legislation has been the center of attention for nearly every industry as the bill is expected to be the most consequential legislation passed by the 119th Congress.
While NLBMDA is not taking an endorsement position on the totality of the 1,100-page bill, we have been at work engaging with offices on Capitol Hill regarding the inclusion and strengthening of NLBMDA backed provisions currently being considered by Congress. As we recapped last week, the Senate’s legislative text strengthens many of the NLBMDA-backed legislative priorities, signaling a win for our ongoing advocacy efforts and positive momentum for provisions being advocated for by NLBMDA on behalf of the LBM industry.
Read our full communication from last week here.
| | NLBMDA Sends Letter to Federal Officials over Potential Supply Chain Disruptions | |
On June 17, NLBMDA joined a coalition of supply chain stakeholders in a letter to the Secretaries of Transportation and Commerce, as well as the Chairman of the Federal Maritime Commission, urging immediate action to prevent looming supply chain disruptions. The letter warns that tariff policy changes, particularly those involving China, could trigger a repeat of the pandemic-era port congestion, vessel shortages, and skyrocketing freight costs.
A recent spike in shipping demand, caused by companies resuming paused imports during a temporary tariff de-escalation, has already led to container shortages and rising ocean freight rates. NLBMDA called on the administration to reconvene the White House Supply Chain Disruption Task Force and coordinate closely with ports, terminal operators, railroads, and trucking firms. NLBMDA remains committed to working with federal officials and industry partners to ensure efficient, resilient supply chains.
| | B & B Lumber Earns National Recognition As Independent ProDealer of the Year | | |
The National Lumber and Building Material Dealers Association (NLBMDA), in partnership with Hardware & Building Supply Dealer are proud to announce B & B Lumber as the 2025 Independent ProDealer of the Year. B & B Lumber is a family-owned business with nearly five decades of service to builders and homeowners in south-central Kansas, The honor recognizes B & B’s deep commitment to customer service, employee development, and industry leadership—values that have guided the company since its founding in 1976 and continue to shape its future under the second generation of Baalmann family leadership.
“We are extremely honored to be recognized as the 2025 Independent ProDealer of the Year,” said Thomas Baalmann, CEO of B & B Lumber. “This award reflects the hard work and dedication of our family and team, whose passion for serving our customers and community inspires everything we do.”
| | Join NLBMDA at the Louisville Slugger Museum & Factory During the 2025 Pro Dealer Industry Summit | | |
The 2025 ProDealer Industry Summit opening Networking Reception will be held at one of Louisville’s most iconic landmarks — The Louisville Slugger Museum & Factory!
Experience the legacy of the legendary Louisville Slugger bat. As part of this special evening, you’ll get an exclusive behind-the-scenes factory tour to see how these world-famous bats are crafted and learn a bit about their history.
This night will also feature a bourbon-tasting experience, where you will sample some of Kentucky’s finest spirits in a setting that celebrates American tradition.
| | Sharp Drop in Multifamily Production Brings Overall Housing Starts Down | | |
In May, overall U.S. housing starts fell 9.8% to a seasonally adjusted annual rate of 1.26 million units, driven largely by a steep 29.7% decline in multifamily construction. Single-family starts remained nearly flat, increasing just 0.4% to a 924,000 rate but were still down 7.3% compared to the previous year. Persistent economic uncertainty, tariffs, high interest rates, and housing affordability issues continue to weigh on the housing market. Year-to-date, single-family starts are down 7.1%, while multifamily 5-plus unit starts are up 14.5% as more buyers remain priced out of ownership.
Builders report waning consumer confidence and affordability challenges, with nearly 40% of builders lowering prices recently. The National Association of Homebuilders (NAHB) forecasts a continued decline in single-family starts through 2025. Regionally, combined starts rose in the Northeast and Midwest but fell in the South and West. Overall permits dropped 2% in May, with single-family permits down 2.7% and multifamily down 0.8%. Year-to-date, permit activity showed mixed trends regionally, with declines in the Northeast, South, and West, but gains in the Midwest.
| | Available Inventory of Homes is Back to Pre-pandemic Range | | |
Over the past three years, the U.S. housing market has experienced falling home sales and rising prices, driven by pandemic-era inventory shortages. However, by mid-2025, that trend is reversing. An article by HousingWire reports that inventory has returned to pre-pandemic levels, with 826,000 unsold single-family homes on the market—a 32% increase over last year. This rise in supply, combined with persistently high mortgage rates and weak demand, is now exerting downward pressure on home prices. Nationally, prices are up just 0.55% compared to summer 2024, the weakest growth in years. In 11 states prices have either fallen or remained flat: Hawaii, Iowa, Arizona, Georgia, Florida, Texas, Colorado, Alabama, Montana, New York, and South Carolina.
April data was especially rough due to financial market turmoil, but May and June have shown modest rebounds. Despite some recovery, nearly 40% of homes have had price cuts—well above normal levels—signaling broad price softening. Public sentiment has grown increasingly bearish, with over 60% of poll respondents expecting home price declines in 2025. Economists remain cautiously optimistic, projecting modest annual gains due to “downside-stickiness,” where homeowners avoid selling at a loss. Barring a drop in mortgage rates or surge in demand, prices are expected to stay flat or grow slightly through the rest of the year.
| | The Virginia Tech–USDA Forest Service Released Housing Commentary For April 2025 | | |
The latest housing data reveal mostly negative trends both month-over-month and year-over-year, though there are a few bright spots. On a monthly basis, total and multi-family starts and new home sales posted gains. Similarly, permits, single-family completions, and construction spending also showed improvement. Year-over-year, increases were observed in multi-family starts and permits, new home sales, housing completions, and construction spending. Notably, for the first time in years, new homes priced under $399,000 outsold higher-priced homes. However, high mortgage rates and the resulting "lock-in" effect continue to suppress affordability and distort sales activity.
The June 17th Atlanta Fed GDPNow™ forecast projects residential investment spending to decline by 2.8% in Q2 2025, with new construction expenditures down 6.2%, manufactured home spending down 1.9%, and remodeling up 2.3%. Broader housing commentary highlights affordability challenges, driven by home prices outpacing income growth and rising mortgage costs. While consumer desire for homeownership remains strong, multiple headwinds persist—including inflation, geopolitical conflicts, regulatory burdens, labor shortages, slower household formation, job quality concerns, and increasing global debt—all contributing to continued housing market uncertainty.
| | U.S. Senate Passes GENIUS Act, Sideling NLBMDA Supported Swipe-fee Reform | | |
On June 17th the U.S. Senate voted to pass the GENIUS Act, a bill aimed at regulating stablecoins, a type of cryptocurrency pegged to a stable asset like the U.S. dollar. While the legislation has minimal implications for the LBM industry, the GENIUS Act had the potential to serve as a legislative vehicle for much-needed credit card swipe fee reform. As the first banking bill to reach the Senate floor since the Credit Card Competition Act (CCCA) was originally introduced in the 117th Congress, CCCA cosponsors Sens. Roger Marshall (R-KS) and Richard Durbin (D-IL) pushed for CCCA to be added as an amendment to the stablecoin legislation.
Once word spread that CCCA’s Senate cosponsors intended to file the swipe-fee reform bill as an amendment to GENIUS, NLBMDA’s legislative team went to Capitol Hill to meet with lawmakers and staff to advocate for the Marshall-Durbin amendment. Building off the work set by NLBMDA members who visited over 100 offices at NLBMDA’s legislative fly-in in April, NLBMDA’s Government Affairs Coordinator Matthew Delaney met with Senate offices in several states to persuade lawmakers who were non-committal on swipe-fee reform. NLBMDA was joined in its efforts by retailers from nearly every sector in all hands effort to push the common-sense pro-business swipe-fee reform through the Senate.
Despite the multi-week advocacy campaign, Senate leadership opted to expedite the passage of the GENIUS Act thus blocking a vote on dozens of proposed amendments including CCCA. Despite this unfavorable result, NLBMDA received assurances from CCCA cosponsors that it would continue to work towards delivering swipe-fee relief for America’s retailers. NLBMDA has committed to continuing to identify new legislative vehicles for the CCCA and will remain engaged with lawmakers on Capitol Hill until swipe-fee reform becomes law.
| | Momentum Builds for Section 529 Expansion to Support Workforce Training | | |
The Senate Finance Committee’s recently released tax package includes a major workforce win: language from the Freedom to Invest in Tomorrow’s Workforce Act that would expand 529 savings plans to cover postsecondary training and credentialing programs. This provision, strongly supported by NLBMDA and the Tomorrow’s Workforce Coalition, marks a critical step toward addressing labor shortages by helping more Americans afford technical education and certification outside traditional college pathways.
If enacted, this expansion would allow Americans to use tax-advantaged 529 accounts to cover costs for licenses and nongovernmental certifications, valuable tools for those pursuing careers in the skilled trades. “This is a big moment for the LBM industry and others that rely on a trained, job-ready workforce,” said Jonathan Paine, NLBMDA President & CEO. “We’ve long supported policies that remove barriers to entering the trades, and this would give more Americans a pathway into high-demand, well-paying careers.” NLBMDA will continue working with lawmakers to ensure this provision remains in the final package and ultimately becomes law.
| | Builder Sentiment at Third Lowest Reading Since 2012, Construction Material Prices Rise in May | |
Builder confidence fell to 32 in June, according to the NAHB/Wells Fargo Housing Market Index. This is one of the lowest readings in over a decade and reflects growing concern among homebuilders. High mortgage rates and economic uncertainty are cited by NAHB as leading factors keeping buyers on the sidelines according to the report. 37% of builders reported cutting prices in June, and NAHB now expects a decline in single-family starts in 2025.
The lowered builder confidence arrives as the Associated Builders and Contractors (ABC) released new data analysis showing that tariffed construction material prices increase in May at a “faster-than-ideal- pace”. On an annualized basis, inputs to construction saw a price increase of 6% through the first five months of 2025. NLBMDA continues to work with lawmakers on Capitol Hill and other stakeholders in Washington to identify legislative and regulatory solutions that can incentivize new home construction.
Read our letter to the Administration calling for trade stability.
| Subcommittee on Federal Lands to Hold Hearing on Improving Forest Management and Wildfire Prevention | | This week the House Committee on Natural Resources subcommittee on Federal Lands will hold a hearing entitled, “Fix Our Forests: Advancing Innovative Technologies to Improve Forest management and Prevent Wildfires.” The hearing takes place on the eve of peak wildfire season in the United States and as wildfires continue to ravage through remote parts of Western Canada. Earlier this year Rep. Bruce Westerman (R-AK) served as lead sponsor for the House-passed Fix Our Forests Act, NLBMDA supported legislation that streamlines federal forest management and strengthens wildfire prevention measures. The hearing will take place on June 26th and can be viewed here. NLBMDA is planning to monitor the hearing for any potential implications for the LBM industry. | | California EV Mandate Revocation Signed into Law | | |
In a significant move impacting the LBM industry and transportation sector, President Trump has signed a Congressional resolution which nullifies the EPA waiver granted to California to promulgate its Advanced Clean Trucks (ACT) program. Adopted by California and 10 other states, the regulation established stringent zero emission vehicle standards for medium and heavy-duty vehicles and mandates truck manufacturers to sell increasing percentages of zero-emission vehicles from 2024-2035.
In response to the Congressional resolution, California has filed a lawsuit against the Federal government arguing that Congress went beyond its constitutional authority in passing resolutions which restrict California's unique ability under the Clean Air Act to promulgate emissions standards. The lawsuit, currently being considered by the Northern California District Court, has the potential to delay the effectuation of the Congressional resolution with the litigation potentially landing in the Supreme Court.
| | LMC Dealers Celebrate 100 Years or More in 2025 | | |
Lumber and Building Materials dealers that have been operating for a century or more are a part of history. These centennial LMC dealers have endured multiple wars, economic fluctuations, and technological advances, evolving to stay innovative in the LBM industry. Through the hardship of the Great Depression, LMC was founded in 1935, exemplifying the same strength that defines our Dealers.
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Central Network Retail Group (CNRG) has named Craig Cowart as company president, effective July 1, 2025. Cowart had been serving as chief operating officer for CNRG since January 2024. Cowart replaces John Sieggreen as CNRG president. Sieggreen, Orgill’s EVP - Retail, will retire from Orgill during the second quarter of 2026.
According to Orgill, Cowart brings decades of leadership experience across the home improvement industry to his new role. He has held senior positions at Marvin’s, Lowe’s, The Home Depot, and most recently as CEO of Fulcrum Building Group.
| | QXO eyes GMS for acquisition | | |
QXO, Inc. on Wednesday sent a proposal to the president and CEO of Tucker, Georgia-based Gypsum Management & Supply Inc. to acquire all outstanding shares of GMS for $95.20 per share in cash.
The proposal implies a total transaction value of approximately $5 billion
GMS operates a growing network of subsidiary companies throughout the U.S. and Canada with more than 300 distribution centers. QXO said its bid marks a 27% premium over GMS’s 60-day volume-weighted average price of $74.82.
| | Boise Cascade appoints SVP | | Rob Johnson has been named senior vice president of manufacturing for Boise Cascade's Wood Products division, effective June 16, 2025. This move fills the position previously held by Chris Seymour, who left the organization earlier in June. In this role, Johnson will oversee the operations for the company’s 18 manufacturing facilities across the U.S. He will report to Troy Little, executive vice president of Wood Products. | | Weyerhaeuser, Firefighter Behavioral Health Alliance Partner for Fourth Year to Provide Mental Health Resources for Wildland Firefighters | | |
Weyerhaeuser Company and Firefighter Behavioral Health Alliance (FBHA) announced an extension of their Fighting Fires Together campaign, a partnership that provides specialized mental health support for wildland firefighters and their families across the Pacific Northwest.
Fighting Fires Together, now in its fourth year, addresses the often-overlooked mental health impacts of wildland firefighting in isolated, hazardous, and highly stressful conditions. Through a free online resource hub, first responders can find specially designed content, including videos about Post Traumatic Stress Disorder (PTSD), depression, anxiety, and suicide prevention, along with mental health tips, educational articles and contacts for occupationally aware support groups and counselors in Oregon, Washington, and British Columbia.
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