March 17, 2025 • View in browser

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

White House to Impose Reciprocal and Sectoral Tariffs

Over the weekend, President Trump doubled down on his administration’s commitment to impose broad reciprocal tariffs and sector specific tariffs on April 2^nd. The administration has imposed a 20% tariffs rate on goods originating from China as well as a 25% tariff on all steel and aluminum imports. NLBMDA shared last week details of a new one-month reprieve related to the 25% tariffs on Canadian and Mexican imports. The reprieve applies to all goods compliant with the North American trade deal, USMCA.

Trade partners across the globe have taken different approaches in response to these new tariffs. The Mexican government elected to delay a retaliatory tariff and have delayed plans to do so until after the one-month reprieve expires. The Canadian government has chosen to keep tariffs on C$30 billion in U.S. goods though have paused future rounds of retaliatory tariffs. In one of his first moves as Prime Minister, Canadian PM Mark Carney requested a review of Canada’s contract order for American built F-35 fighter jets, potentially putting a multi-billion-dollar contract up in the air.

Congress Passes Long-Term Funding Bill, Averting Government Shutdown

On Friday, the Senate passed a stopgap funding bill that funds the government through the end of Fiscal Year 2025. Ten Senate Democrats joined Senate Republicans in a procedural vote that allowed the appropriations bill to surpass the 60-vote filibuster threshold. The bill is largely a straightforward extension of fiscal 2024 appropriations. The legislation does however include an increase in funding for wildfire management programs. Specifically, the legislation provides $2.4 billion for the Agriculture Department’s US Forest Service and $1.1 billion for Interior-wide fire management.

President Trump endorsed the approach and last Tuesday the US House narrowly passed the resolution in a 217-213 vote. A day prior to the Senate vote, top Senate Democrat, Minority Leader Chuck Schumer (D-NY) broke from rank-and-file Democrats announcing he would vote to advance the legislation. 

Meet the Speakers of the 2025 Spring Meeting and Legislative Conference

Registration for the Pro Dealer Industry Summit is now open!

NLBMDA and HBS Dealer are excited to announce that registration for the 2025 Pro Dealer Industry Summit is now open. Join us October 8-10 in Louisville Kentucky. This is an exclusive, live educational forum designed to promote the growth of lumber & building product dealers, distributors, wholesalers, and the manufacturers who supply them. LBM dealers will benefit from sharing insights and best practices from industry leaders. You won't want to miss:

• Educational Panel Sessions
• Insights from Industry Experts
• Networking Opportunities 
• Off-Site Happy Hour Reception 
• Exhibitor booths
• Lumberyard tour of Falls City Lumber

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, March 21.

National Association of Home Builders (NAHB) Reports That Builder Confidence Is Falling Due To Cost Uncertainty

Builder confidence in the single-family housing market declined in March, with the NAHB/Wells Fargo Housing Market Index (HMI) dropping three points to 39—the lowest level in seven months. “Builders continue to face elevated building material costs that are exacerbated by tariff issues, as well as other supply-side challenges that include labor and lot shortages,” said NAHB Chairman Buddy Hughes, a home builder and developer from Lexington, N.C.

The survey found that 29% of builders reduced home prices in March, up from 26% in February, with an average price cut of 5%. Additionally, 59% of builders continued using sales incentives to attract buyers. The index measuring current sales conditions fell to 43, while traffic of prospective buyers dropped to 24, and sales expectations for the next six months remained at 47. Regional HMI scores also declined, with the Northeast, Midwest, South, and West all experiencing drops. This indicates that uncertainty in policy and higher costs continue to weigh on both builder sentiment and buyer demand.

Housing Supply Gap Narrows To 4 Million, According to Realtor.com

Realtor.com released a new report analyzing housing supply data in 2024. Last year, new-home construction surpassed household formations for the first time since 2016, marking a significant step toward addressing the nation's housing shortage. Home completions reached their highest level in nearly two decades, driven by growth in both single- and multi-family construction. However, the housing gap remains substantial at 3.8 million units, as an estimated 1.6 million expected Gen Z and millennial households did not form due to factors like affordability challenges.

The housing shortfall varies by region, with the South having the largest gap in absolute numbers (1.15 million units) but the smallest relative to overall construction. The Northeast faces the most severe housing deficit on a scaled basis, followed by the Midwest and the West. At the 2024 construction pace, it would take 7.5 years to close the gap nationwide. Regionally, the South could bridge its housing shortage in just three years, while the West would need 6.5 years. In contrast, the Midwest would require 41 years, and the Northeast would see no improvement in its housing deficit if current trends persist.

House and Senate Legislators Reintroduce PRO Act, NLBMDA Opposes

Earlier this month Congressional Democrats reintroduced the PRO Act, a comprehensive labor bill that would institute sweeping revisions to existing labor laws. The legislation was introduced in the House (H.R. 20) by Reps. Bobby Scott (D-VA) and Brian Fitzpatrick (R-PA). A senate companion bill (S.852) was introduced by Sen. Bernie Sanders (I-VT). Several groups, including the Associated Builders and Contractors (ABC) have spoken out against the bill for its potential to disrupt an existing volatile construction sector and threaten vital supply chains. 

The PRO Act would remove a worker’s right to a secret ballot, opting instead for a public record, leaving workers susceptible to harassment from labor organizers should they vote not to unionize. The American Action Forum estimates the macroeconomic costs of the Pro Act would increase weekly employment costs by approximately $21.5–$71.6 billion per week and put up to $2.6 trillion in gross domestic product at risk. NLBMDA has opposed the PRO Act each Congress this legislation has been introduced. These drastic reforms to alter the landscape of labor relations would harmfully impact both workers and their employers. Attempts at passing the legislation have failed in previous Congresses. A Republican-controlled House and Senate means chances of this legislation passing are slim to none. 

Senate Confirms Labor Secretary Lori Chavez-DeRemer in Bipartisan Vote

Last week the Senate voted 67-32 to confirm Lori Chavez-DeRemer to lead the Department of Labor. 17 Democrats voted in support of her confirmation. Sens. Rand Paul (R-KY) and Ted Budd (R-NC) were the only Republicans who voted to oppose her confirmation. During her testimony before the Senate HELP committee, Chavez-DeRemer faced a series of questions regarding her legislative history supporting pro-labor policies while serving in Congress.

Chavez-DeRemer also received questions related to a series of Biden-era rulemakings, including OSHA’s Heat Illness and Injury Prevention proposed rule. In January, NLBMDA submitted formal comments expressing concerns with the proposed rule as it was currently written. Chavez-DeRemer indicated that she would review the rulemaking to ensure it aligned with the Administration broader agenda.

Freedom to Invest in Tomorrow’s Workforce Act Reintroduced in House and Senate

On February 7th, Rep. Rob Wittman (R-VA) reintroduced the Freedom to Invest in Tomorrow’s Workforce bill in the House, alongside 50 cosponsors. The Freedom to Invest in Tomorrow’s Workforce Act is legislation that NLBMDA strongly supported during the previous Congress and will continue to advocate for in the new Congress. The bill would permit the use of 529 account funds to pay for post-secondary training programs. This measure would allow more Americans to obtain and retain well-paying jobs that typically do not require a four-year college degree. This bill has received bicameral and bipartisan support. Sen. Roger Marshall (R-KS) and Sen. Amy Klobuchar (D-MN) introduced a companion bill in the Senate on March 5th. NLBMDA in conjunction with coalition partners will continue to strongly advocate for the bill’s passage.

Bipartisan Support for Creating Opportunities for New Skills Training at Rural or Underserved Colleges and Trade Schools (CONSTRUCTS) Act

The CONSTRUCTS Act is a bipartisan workforce development bill which directly addresses the shortage of jobs in the residential construction sector. The legislation directs the Department of Labor to create a grant program intended to expand capacity at community colleges and technical schools to provide training services, education, and outreach activities for careers in the residential construction industry. Sens. Jackie Rosen (D-NV) and Marsha Blackburn (R-TN) are leading the Senate bill and Reps. Marie Gluesenkamp Perez (D-WA) and Juan Ciscomani (R-AZ) are leading the House version. 

FTC Noncompete Litigation on 120 Pause at 5th Circuit Court

NLBMDA in conjunction with the Partnership to Protect Workplace Opportunity (PPWO) have sent a letter to Labor Secretary Chavez-DeRemer and Attorney General Pam Bondi urging the administration to withdraw its defense of the Biden administration’s Department of Labor (DOL) 2024 overtime rule. The 2024 DOL overtime rule would enact significant revisions to the DOL’s longstanding overtime policy through reclassifying a large number of workers from salaried to hourly. The rule would abandon the current 2019 standard that favors flexibility and would create rigid standards that are shown to increase administrative overhead costs for employers.

Two courts have nullified the 2024 DOL rule arguing that the rule exceeded the statutory authority provided to DOL under the Fair Labor Standards Act (FLSA). The Labor Department has requested an extension to files a brief in one of those cases though has not stated if it intends to withdraw from its defense of the 2024 rule. NLBMDA was joined by over 70 trade associations in calling for the defense of the 2024 rule to be abandoned. 

NLBMDA Sends Letter to Trump Administration on Overtime Rule

Attorneys for the Federal government have filed a request with the 5^th Circuit Court of Appeals to pause litigation for 120 days in the FTC Noncompete Litigation legal challenge. Last year, the Biden administration announced a final rule that would ban most non-compete agreements between employers and workers. NLBMDA aggressively opposed the rulemaking and in August of 2024 a Texas court issued a nationwide injunction blocking enforcement of the rule. In filing the request to pause litigation, the Trump administration will likely be reviewing the government’s position defending the FTC noncompete rule and may elect to forgo continued defense of the flawed rule. 

Inside Orgill’s technology tactics

Orgill, which was founded before the Civil War during the James K. Polk administration, has not historically been known as a leading technology innovator. But that’s changing, thanks to a tech-heavy approach embraced by CEO Boyden Moore.

Board shakeup at LBM Advantage

During its shareholders meeting on Monday, March 10, LBM Advantage shareholders voted to re-elect Kent Berrier of Tuttle Lumber Co., Matthew Piggott of MPC Cashway Lumber, and Jeff Reeves of Reeves Building Supply for another three-year term as directors. 

Nation's Best swings into action

Nation’s Best Holdings, LLC hosted its third annual golf tournament on Monday, March 3 in support of Nation’s Best Cares, the charitable arm of Nation’s Best Holdings. In addition to the tournament, Nation’s Best hosted a vendor market providing store managers with the opportunity to connect with more than 75 vendors and make on-site promotional purchases.

LMC Marks 90 Years of Strength and Innovation at 2025 Annual Conference

LMC proudly hosted its milestone celebration, the 2025 Annual, from March 6-8 in Phoenix, Arizona. As one of the most anticipated events in the lumber and building materials (LBM) industry, 70% of the LMC Dealer network— which comprises the nation’s premier independent lumber and building materials dealers—gathered to commemorate nine decades of industry leadership and prepare for a thriving future. More than just a celebration, the event reinforced LMC’s unwavering commitment to shaping the industry's future.

Simpson Strong-Tie Introduces Strong-Link™ Moment Connection for Steel Construction in Wind-Governed and Low-Seismic Areas

Simpson Strong-Tie, the leader in engineered structural connectors and building solutions, is expanding its line of lateral strengthening solutions for steel construction with the introduction of the Strong-Link™ moment connection (SLMC). Engineered for wind-governed and low-seismic structures, the high-strength SLMC is a fully bolted solution that eliminates the need for field welding, drastically cutting labor and inspection costs while speeding up frame installation.