2025 Equipment Leasing & Finance U.S. Economic Outlook Carl Villella As we transition into spring, now is a good time to assess the dynamics of our current economic outlook. Earlier Optimism and Shifting Factors It is important to recall that the initial outlook for 2025 was more optimistic. This earlier sentiment was largely predicated on expectations of... Read More May 2025 Issue #17310 Page 103
Tariffs, Countervailing Duties, and More: Optimizing Production Requires Optimizing the Inputs to Production Valerie Hansen On/off tariffs, the pending hike in countervailing duties, and Section 232 National Security Investigation (which designates lumber as a “strategic good” on par with automobiles, steel, and aluminum) stalk the wood frame construction industry. Collectively and individually, these... Read More May 2025 Issue #17310 Page 112
Economic Outlook: Uncertainty and Volatility Lesko Financial Services Team Encouraging data including a downtick in inflation and the prospect of interest rate cuts early in the year fueled optimism, bolstered by hopes of deregulation and the extension of tax cuts put into place during the first Trump presidency. Stocks rallied on hopes for a new era of positive growth... Read More May 2025 Issue #17310 Page 118
Home Building Technology, Part IV: The $6,000 Question Joe Kannapell, PE Unions opposed it, builders dismissed it, but the American homebuyer would embrace prefabricated housing as soon as they could afford it. Despite fierce opposition, the government made it a reality by allowing FHA financing on prefabricated homes with loans of $6,000 or less. In announcing this... Read More April 2025 Issue #17309 Page 10
Tariff Pressures Squeeze Wood Building Component Manufacturers, Financial Solutions Sought Carl Villella Wood building component manufacturers are facing increasing financial pressures as tariffs and supply chain disruptions drive up the cost of essential materials and equipment. Industry insiders report rising concerns over the impact on production costs and project timelines. The Key... Read More April 2025 Issue #17309 Page 85
Component Industry’s Latest Nightmare: Tariffs Valerie Hansen Today, 93% of America’s new homes are built of wood-frame construction. If fully enacted, the implemented and pending tariffs will reduce lumber supply and trigger an increase in lumber price, resulting in a one–two punch for the wood-frame construction industry. As we once again... Read More April 2025 Issue #17309 Page 100
Home Building Technology, Part III: Overcoming the Prefab Stigma Joe Kannapell, PE Even though 500,000 prefab homes were built for World War II, builders were not committed to the prefabrication approach. But why not? These homes should have served as an entré to the future use of components by the hundreds of builders who constructed government housing in hundreds of... Read More March 2025 Issue #17308 Page 10
MSR Workshop Heads West for Valuable Learning Opportunity at Resort Destination MSR Lumber Producers Council In 1995, the MSR Workshop was born out of one man’s commitment to fulfilling what he saw as a real need to bring together those who produce MSR lumber, those who sell MSR lumber, and those who use MSR lumber, in order to develop a better understanding of each other’s challenges and... Read More March 2025 Issue #17308 Page 132
Deals Report 2024: Tracking the Openings, Closings, and Acquisitions Craig Webb One deal did all the difference in construction supply’s M&A world in 2024. The Home Depot’s purchase of SRS Distribution’s 769 locations turned last year into the most active year for LBM facilities acquired since at least 2018. But when you exclude that buy, 2024 turns... Read More March 2025 Issue #17308 Page 140
The Last Word: Home Depot’s Quest for the Pro Builder Joe Kannapell, PE A contract hauler drives in on a six-lane roadway, stops at predetermined locations, receives a full load of lumber and building supplies, and then heads out to a nearby jobsite. That driver has just passed through a warehouse that mimics the efficiency and abundant stocks of an Amazon.com... Read More March 2025 Issue #17308 Page 180