Priorities for the NLBMDA

NLBMDA Radar:

Four industry issues for 2022

By Andy Carlo

As 2021 draws to a close, the National Lumber and Building Material Dealers Association (NLBMDA) has its eyes on a series of topics that weigh on its dealer members and the industry.

The past year has provided pricing volatility in lumber and building materials, a growing labor shortage, and home prices that continue to rise. And that’s just the beginning. Here’s a look at four issues the NLBMDA is tracking for 2022:

1Vaccination Requirements: When first announced this past September, the NLBMDA almost immediately opposed the Biden Administration’s plan for the Occupational Safety and Health Administration (OSHA) to set an Emergency Temporary Standard that would require COVID vaccinations. According to the plan, workforces with 100 or more employees would be required to be vaccinated with those unvaccinated facing weekly testing. Company’s not following the plan would face stiff fines. While the policy is not dead, it has since been suspended due to legal challenges. The U.S. Court of Appeals Fifth Circuit ordered the mandate be halted until further notice. The vaccination standard continues to lurk, however.

2Softwood Lumber Agreement: The NLBMDA has continued to call for renewed talks between the United States and Canada for the sake of implementing a new softwood lumber agreement. In August, the NLBMDA

SAFE. RELIABLE. INNOVATIVE.

800.852.2331 hiab.us.com

met with the Canadian Embassy in Washington to discuss the matter. Earlier this year, the Commerce Department recommended that the countervailing and anti-dumping rate on Canadian softwood lumber be increased from 8.99% to 18.32%. The move came at a time when the National Association of Home Builders (NAHB) reported high lumber prices were adding $30,000 to the cost of a new single-family home. And in October, softwood lumber saw an increase of more than 9%, marking the first big price jump since May.

3Labor: The industry’s skilled labor market remains limited and the NLBMDA regards the trend as a top priority next year. In the most recent Home Builder Institute’s (HBI) Fall 2021 Construction Labor Market Report, nearly 740,000 construction workers per year are needed in the next three years. According to the HBI, the construction industry needs more than 61,000 new hires per month to keep up with growth and the loss of workers retiring or leaving the industry. Additionally, HBI reported that the number of open construction jobs per month averages between 300,000 to 400,000. If the housing market wants to grow, and dealers look to sell more lumber and materials, additional skilled labor is sorely needed.

4Affordable Housing: While more affordable housing would provide a sales boost to dealers and home builders, the future isn’t clear in Washington. At press time, the House of Representatives had passed President Biden’s “Build Back Better” bill, which includes legislation for housing, including $150 billion in funding for the creation and renovation of affordable housing. As the plan heads to the Senate, the bill has come under fire due to potential tax increases along with new building and energy code requirements. As the NLBMD continues to support affordable housing and an increase in residential construction, the organization does not want it to grow at the expense of dealers and builders.

These issues and more — much more — will be explored during the 2022 ProDealer Industry Summit in Washington, D.C. March 29-April 2. Find out more at Prodealer.com.

WEYERHAEUSER DISTRIBUTION

We build on our promise to earn your trust with each delivery. For more information about what we can offer you, go to weyerhaeuser.com/distribution.