January 6, 2025 • View in browser | |
Formerly "Dealer Digest," NLBMDA Weekly is the premier source of federal legislative, regulatory, and industry news for NLBMDA members. | |
Corporate Transparency Act (CTA) Nationwide Injunction Reinstated
| |
|
December proved to be a turbulent month for small businesses attempting to navigate the compliance status of the Corporate Transparency Act (CTA). What is important to know is that for now, businesses are no longer required to comply with any previously existing deadline to submit Beneficial Ownership Information (BOI) reports with FinCEN.
In the latest action, on December 26th, a Fifth Circuit Merits Panel reversed a previous Fifth Circuit order once again reinstating the temporary nationwide injunction. In its reasoning, the court stated that the injunction should remain in place during legal proceedings to, “preserve the constitutional status quo.”
The Fifth Circuit Court thereafter announced that it would hear formal arguments on the validity of the injunction on March 25th. This means that, absent an appeal to the U.S. Supreme Court by the Justice Department, CTA compliance will remain halted through at least the first three months of the new year.
| |
NLBMDA Remembers Former President Jimmy Carter | |
|
The National Lumber and Building Material Dealers Association (NLBMDA) joins the nation in remembering 39th President Jimmy Carter, who passed away at the age of 100. With a post-presidency spanning over four decades, Carter led a life full of service to others through his numerous charitable endeavors.
In 1984, Rosalynn and Jimmy Carter began volunteering with Habitat for Humanity. Each year after, for 36 years, the couple led work projects across the United States and the globe through the Jimmy & Rosalynn Carter Work Project initiative. Habitat for Humanity estimates that over the years the Carter Work Project built, renovated, and repaired 4,447 homes with the help of over 100,000 volunteers.
“NLBMDA joins the nation in mourning the loss of Jimmy Carter, a revered champion for affordable housing,” said NLBMDA President Jonathan Paine.
Memorial services for the former President will be held in his hometown of Plains, Georgia. Later this week, President Carter will officially lie in state at the United States Capitol with the state funeral taking place on January 9th at the Washington National Cathedral.
| |
International Longshoremen’s Association and US Maritime Alliance to Resume Negotiations | |
Recent reports have indicated that negotiators for the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX) are set to resume talks on January 7th ahead of the January 15th expiration of the current contract extension.
In December, NLBMDA joined 266 other trade associations in a letter urging the two parties resume negotiations to avoid a costly port shutdown. The two parties have paused meeting since early November after negotiations reached an impasse over the potential implementation of automated technologies at U.S. ports which the ILA argues would eliminate union jobs.
President-elect Trump recently met with ILA President Harrold Dagget and issued a statement of support for port workers. If negotiators are unable to reach an agreement prior to midnight on January 15th, 45,000 ILA workers will go on strike at ports across the Eastern Seaboard and Gulf of Mexico.
| |
Average 30-Year Mortgage Rate Reaches 6-Month High | |
Freddie Mac has reported that the average 30-year fixed mortgage rate has hit 6.91%, the highest since July 2024. Sam Khater, Chief Economist at Freddie Mac stated, “Compared to this time last year, rates are elevated and the market’s affordability headwinds persist. However, buyers appear to be more inclined to get off the sidelines as pending home sales rise.”
In December meeting, the Federal Reserve announced that it plans to cut rates by a half point in 2025. In September 2024, the Fed initially projected that rates would be cut by a full-percentage point in the new year. The Fed cited the easing of inflation and continued job growth as reasoning for its new posture. As a result, mortgage rates over the last few weeks have begun to uptick. The 15-Year fixed mortgage rate is tracking slightly lower at 6.13% up from 5.89% the year prior.
| |
Existing-Home Sales Hit Strongest Year-Over-Year Increase Since Summer 2021 | |
|
The National Association of Realtors (NAR) reports that existing-home housing sales grew by 4.8% in November, the fastest pace since March. At the end of November, the registered housing inventory was estimated to stand at 1.33 million units, down 2.9% from October but up 17.7% from a year prior.
NAR chief economist Lawrence Yun remarked, “existing homeowners are capitalizing on the collective $15 trillion rise in housing equity over the past four years to look for homes better suited to their changing life circumstances.”
In November, the median existing-home price stood at $406,000 while the average sales price for new construction homes averaged $484,800.
| |
The 119th Congress Is Officially Underway
| |
|
House and Senate lawmakers have reconvened in the new year officially kicking off the start of the 119th Congress. Sixty-three freshmen members of the House of Representatives were sworn in alongside twelve newly elected Senators.
On Friday, the House reelected Rep. Mike Johnson (R-LA) to serve as speaker of the House in the new Congress. Speaker Johnson secured a majority after a lengthy two-hour first ballot vote. Initially, Johnson lacked the necessary votes to win the Speakership on the first ballot, but following a closed-door discussion, Rep. Norman (R-SC) and Rep. Self (R-TX) changed their votes prior to the closing of the vote.
Earlier today, Congress preformed its constitutional duty to certify the results of the November election. Vice President Kamala Harris joined the ranks of Al Gore and Richard Nixon becoming the third Vice President to oversee the certification of their own election loss.
President-elect Trump has promised an aggressive 100-day legislative agenda with a major tax bill expected in the first few months of the new Congress. Several provisions in the 2017 Tax Cuts and Jobs Act are set to expire at the end of 2025. In the new Congress, NLBMDA will remain active in advocating for the legislative priorities set out in the NLBMDA Legislative Agenda.
| |
Congress Passes Short Term Funding Bill In 11th Hour Deal
| |
|
In one of the final acts of the 118th Congress, lawmakers have passed a short-term funding bill which will keep the government funded through March 14th. The passage capped off a chaotic week of dealmaking on the Hill.
On December 17th, Congressional leaders released the text of a 1,547-page continuing resolution (CR) which would keep the government funded through March 14th. The following day, Musk, Ramaswamy, and President-elect Trump fiercely criticized the legislation arguing the bill added unnecessary spending and went beyond the scope of a traditional stop-gap funding.
On Friday December 20th, hours before the government was set to shut down, lawmakers released the text of a third proposal. The third proposal removed the Trump requested debt limit extension which quickly led to the proposal receiving bipartisan support. The bill passed the House by a vote of 366-34 and then in the Senate with a final vote of 85-11. Shortly after President Biden signed the spending package into law, narrowly averting a government shutdown. The bill includes $100 billion in disaster aid and over $10 billion in agriculture assistance to farmers. A one-year extension of the CTA reporting deadline which was included in the first bill did not make it into the final spending package.
| |
GOP Strategizes 2025 Legislative Approach | |
|
President-elect Trump has signaled to Congressional leaders over the weekend that he prefers passing “one powerful” reconciliation bill in the new Congress. The announcement comes after Trump met with GOP leaders on Saturday to discuss the best path forward in the 119th Congress.
Speaker Johnson is now working to pass a single reconciliation bill as soon as April 3rd which would incorporate border security funding, an extension of tax cuts set to expire and an increase of the debt ceiling. Senate Republicans have advocated for a two-bill approach, with one bill centered on energy, defense, and border security and the second bill focused on extending tax cuts.
Passing a single reconciliation bill will no doubt be a considerable undertaking for the new Congress. Johnson is expected to have a razor thin 217-215 majority. Additionally, Congress must also set aside time to pass a bill which funds the government beyond the current deadline of March 14th.
| |
Canadian PM Justin Trudeau Announces Intent to Resign | |
|
On Monday, Canadian Prime Minister Justin Trudeau announced his intention to resign as prime minister and as leader of the Canadian Liberal Party. Trudeau has faced mounting pressure over the last few weeks following months of legislative gridlock and an alleged failure by critics to adequately prepare for tariffs promised by the incoming Trump administration.
Canada’s finance minister resigned at the end of 2024 after disagreements with Trudeau on how to respond to President-elect Trump’s plan to levy a 25% tariff on Canadian goods. Parliament will be suspended until March 24th as the party works internally to elect a new leader.
| |
NLBMDA to Submit Comments on OSHA Heat Injury and Illness Prevention Rule | |
|
The Occupational Safety and Health Administration (OSHA) has recently extended the comment period for the proposed heat injury and illness prevention rule announced last summer. The proposed rule will create programmatic standards that would require employers to create a Heat Injury and Illness Prevention Plan (HIIPP) and establish other controls to detect and mitigate heat related illnesses in the workplace.
NLBMDA intends to submit comments prior to the January 14th comment deadline. The rulemaking seeks to implement a nationwide standard that NLBDMA will argue fails to consider regional differences in expected heat exposure. Further, NLBMDA will contend that the proposed standards fail to account for existing state heat exposure laws or internal policies currently implemented by virtually all businesses.
Members interested in sharing feedback on the new rule may contact NLBMDA’s Government Affairs Coordinator, Matthew Delaney, at mdelaney@dealer.org.
| |
LMC Celebrates 90 Years as the Pioneering Cooperative in the Forest Products and Building Materials Industry | |
|
Founded in 1935, LMC has grown to become the longest standing, leading forest products and building materials buying group in the United States. Representing over 430 members with more than 1,800 locations across all 50 states, LMC is a cornerstone of strength and collaboration in the industry.
At its heart, LMC is a network of independent, family-owned businesses deeply rooted in their communities. These businesses unite under the LMC banner to collaborate, share best practices, and forge relationships that enhance their operations and contribute to the industry's advancement. For 90 years, LMC has maintained enduring partnerships with premier lumber mills and top manufacturers, solidifying its reputation for quality and excellence.
Click here to read the full history of LMC and its impact on the LBM industry.
| | LBM Advantage names its 2024 Vendors of the Year | |
LBM Advantage has named the recipients of its 2024 “Vendor of the Year” awards. These awards celebrate exceptional partnerships and acknowledge vendors whose contributions have significantly enhanced the success of LBM Advantage members over the past year. | |
Builders FirstSource Announces Definitive Agreement to Acquire Alpine Lumber | |
|
Builders FirstSource, Inc. (NYSE: BLDR) (“Builders FirstSource” or the “Company”) announced that it has entered into a definitive agreement to acquire Alpine Lumber Company (“Alpine”).
Founded in Englewood, Colorado, by the Kurtz family in 1963 and subsequently converted to a 100% employee-owned and operated company, Alpine has 21 locations serving homebuilders and contractors in the Front Range of Colorado, western Colorado and northern New Mexico with a broad product range including prefabricated trusses and wall panels and millwork.
| |
Orgill makes major staff moves | |
|
Orgill has added another retail veteran to its leadership team with the appointment of Clay Jackson as its new executive vice president and chief operating officer.
According to Orgill, Jackson is a seasoned leader with over two decades of experience at Tractor Supply Company and will officially join Orgill on January 20, 2025.
| |
Business leaders vs. state regulators | |
|
The Colorado Chamber of Commerce’s Regulation Impact Analysis Report places the Rocky Mountain State sixth on the list of states with the highest number of business restrictions.
That report’s findings spurred Steve Swinney, the CEO of Colorado-based Kodiak Building Partners, to share an open letter on the topic.
| |
Trex and Weyerhaeuser make westward partnership push | |
Trex Company is joining forces with Weyerhaeuser to significantly expand Trex’s presence across the Southwest region. This collaboration aims to enhance access to the brand’s decking and railing products for customers in California, Nevada, Arizona and New Mexico. | |
Boise Cascade buys Florida door shop | |
Boise Cascade Company has purchased the assets of the Parksite door shop in Lakeland, Florida. Parksite has 22 locations, and this transaction involves its Florida door shop only. The remaining Parksite locations and products are not part of this agreement and will continue to be owned and operated by Parksite. The transaction has already been completed, according to Boise Cascade. | |
At Wilson Lumber, faith is moving mountains | |
|
To paraphrase a popular axiom in Southern terms: Sometimes the Good Lord opens up a window when a door shuts in your face.
In the case of Huntsville, Ala.-based Wilson Lumber, a definitive “door slam” came courtesy of boll weevils in the 1940s, when the notorious pests ruined the cotton crop of a farmer named Clyde J. Wilson. Fed up with the onslaught of bugs upon his cotton fields in rural Winston County, Alabama, Wilson partnered up with his brother-in-law up the road in Huntsville to focus on a more resilient commodity both had access to at the time: timber.
| |
Kodiak Building Partners is promoting Cliff Shimer to executive vice president (EVP) of business transformation and Mark Garboski to EVP of the Southeast region. These appointments, per the company, reflect Kodiak’s commitment to cultivating leadership and driving sustainable growth as a leader in the building materials industry. | | | | |
