Builders group tells White House: end tariffs, boost production

SAVANNAH, Ga. -- The National Association of Home Builders (NAHB) urged the Biden administration to increase domestic production of timber from federal lands and to work with Canada on a new softwood lumber agreement that will eliminate tariffs.

The discussion took place March 14, 2022, during a virtual White House listening session on resolving the lumber and building material supply chain crisis.

“Historically high price levels for lumber and other building materials are dramatically affecting home prices and rental costs and threaten the nation’s economic stability,” said NAHB chairman Jerry Konter, a home builder and developer from Savannah, Ga.

According to a statement released by the NAHB after the meeting, Konter told administration officials that home building material costs are up 20% year-over-year. And, since last August, the price of framing lumber has more than tripled and oriented strand board prices have doubled.

“These supply chain price increases have only added to the ongoing housing affordability crisis,” Konter said.

Lumber production has not kept pace with demand despite record-high lumber prices and tariffs that are protecting domestic producers and raising costs for builders and home buyers.

In October 2021, domestic lumber production was only 0.4% higher than the previous year and today stands lower than it was in 2018, despite an increase in demand. And domestic sawmill production increased by just 500 jobs last year despite historically high lumber prices, according to the NAHB.

“If our trade protectionist policies are not creating domestic jobs or increasing domestic production, then it’s time to revisit our trade positions,” said Konter. “Few things would have a more immediate impact on lumber markets than a swift resolution to our ongoing trade dispute with Canada over softwood lumber.”

Konter also said that significant reductions in timber production from federally owned lands since the 1990s has severely constricted domestic supply. He called on policymakers to do their part to help boost domestic production by seeking higher targets for timber sales from publicly-owned lands and opening up additional federal forest lands for logging in an environmentally sustainable manner.
 

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Larry Adams | Editor

Larry Adams is a Chicago-based writer and editor who writes about how things get done. A former wire service and community newspaper reporter, Larry is an award-winning writer with more than three decades of experience. In addition to writing about woodworking, he has covered science, metrology, metalworking, industrial design, quality control, imaging, Swiss and micromanufacturing . He was previously a Tabbie Award winner for his coverage of nano-based coatings technology for the automotive industry. Larry volunteers for the historic preservation group, the Kalo Foundation/Ianelli Studios, and the science-based group, Chicago Council on Science and Technology (C2ST).