Page 8 - BB_July_2018

A Brief Update on the Softwood Lumber

Trade Negotiations between the

United States and Canada

As most of you know, higher lumber costs, labor shortages and excessive
regulations are driving the cost of new homes to an all time high. Your
leadership on the local level recently met with several members of our
Congressional delegation to discuss skyrocketing lumber costs. Many of
our Builder members shared with our Congressmen in May that lumber
Kristi Sutterfield costs have increased an average of $7,500 per home.
Executive Vice President
In 2006, the United States signed an agreement with Canada called
the Softwood Lumber Agreement (SLA) to establish a system of fees and
quotas on Canadian imports to the United States that can be triggered in
response to fluctuations in the market price of softwood lumber. This agreement was good for the
United States as well as Canada because it brought about a period of relative stability in our trade
relationship. This agreement expired on October 12, 2015.

With no written agreement in place and with tariffs averaging over 20%, lumber prices have
continued to skyrocket, reaching an all-time high in March of this year.

While the United States and Canada are in the process of re-negotiating the status of softwood
lumber trades, Dr. Rob Dietz, the Chief Economist for the National Association of Home Builders
said that lumber prices have risen by at least 62% since 2017, partly due to President Trump’s tariffs.
We need to urge our elected officials in Washington to return to the negotiating table with
Canada and redouble our efforts to reach a new softwood lumber agreement. This issue is one
of the biggest burdens on our builders locally as well as builders and suppliers across the nation.
This burden is affecting housing affordability and pricing thousands of new homebuyers out of the
market. It not only effects lumber costs but items like window and door manufacturing too.
We are working hard on the Government Affairs front to represent our members and to advocate
for your rights. We invite you to get involved. Our next local Government Affairs meeting will
be held on Tuesday, August 21st at 1:00pm at GSABA immediately following the August Board
of Directors meeting. Please join your Government Affairs Co-Chairs Tim Pruski with Bella Vista
Homes; Joe Leos with D.R. Horton Homes and Shad Schmid with Armadillo Homes as we discuss
this issue.

If you have an issue that you would like to add to our local Government Affairs agenda, please do
not hesitate to reach out to me at any time. There is strength in numbers and we need to come
together to make our voices heard. Thank you for your continued support.

Warm Regards,

8 JULY 2018 | GREATER SAN ANTONIO BUILDERS ASSOCIATION