Page 6 - GSABA Builder Brief - February 2020 issue

JEFF CZAR President
LOOKING TO
THE FUTURE
I just returned from the National Association of Home Builders (NAHB) International Builders Show (IBS). As a first-time attendee, I was amazed with the attendance (over 100,000) and the exceptional education and training provided to the attendees.
Ed Berlanga, Kristi Sutterfield and I attended the Texas Association of Builders (TAB) Caucus and received an update on a number of critical issues. One of the hot topics was the United States-Mexico-Canada Agreement (USMCA) which has important implications for the home building industry. The U.S. House of Representatives ratified the trade pact on December 19th last year and USMCA passed the Senate the week of January 13th.
The United States cannot produce enough steel, aluminum and other materials to meet our housing demand. We rely on tens of billions of dollars in building materials from Canada and Mexico. The new agreement is a big improvement over NAFTA which is 25+ years old. The U.S. International Trade Commission estimates that USMCA will add $70 billion to our economy, boost wages for American workers and add over 175,000 new jobs. This is a win for housing and housing affordability.
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FEBRUARY 2020 | GREATER SAN ANTONIO BUILDERS ASSOCIATION
"IMMIGRATION IS A CRITICAL ISSUE THAT OUR ELECTED OFFICIALS NEED TO
CONCENTRATE ON THIS YEAR AND AS AN ASSOCIATION, WE NEED TO REACH OUT TO OUR
OFFICIALS WHO SERVE US IN D.C. TO MAKE OUR VOICES HEARD.
Immigration is a critical issue that our elected officials need to concentrate on this year and as an Association, we need to reach out to our officials who serve us in D.C. to make our voices heard. The current administration’s immigration policies are driving up labor costs in the construction trades. While trade wars and higher tariffs are causing a rise in building products, labor shortages and labor mobility are becoming even bigger issues. In the greater San Antonio area, the best job opportunities are often located in the larger metropolitan areas. This means a large number of people are faced with long commutes, less affordable housing options and they often miss out on the better jobs.
I attended the Presidents’ Council meeting with NAHB Chairman of the Board Greg Uvalde. There was a lengthy discussion at the Presidents Council, the TAB Caucus and the NAHB Board meeting about the latest International Code Council’s (ICC) code changes. There was a well-orchestrated
“behind the scenes” effort to gather votes in advance and overturn 20 key components in the energy code by more than a 2/3rd vote, which will have detrimental changes to the 2021 Energy Code. This effort was led by energy zealots who are proposing 220-volt, 40-amp circuits in garages for electric cars, changes to requirements in certain climate zones, which include an increase in the R factor in walls (that could increase the cost of housing by $7,000 to $24,000), and changes to gas appliance requirements. We will keep you informed of what transpires as ICC moves forward with the changes to the 2021 International Energy Code (IEC). TAB, NAHB and GSABA will be monitoring the code changes and we will keep you informed of what transpires.
FROM THE PRESIDENT