Category: News Line

The elevated price of softwood lumber, a major talking point during much of the pandemic, appears to have peaked in early May at more than $1,700 per thousand board feet. As of June 23, the price has fallen below $900 per board feet, down about 49% in less than two months. 

Source: MarketWatch

That’s still an unusually lofty price by historic standards—prices remain almost twice as high as in February 2020—but the trend is very much in the right direction. Builders who had been hoarding lumber have now begun to sell from their own inventory, other builders have delayed lumber purchases in anticipation of lower prices, and sawmill operators have been adding shifts and expanding capacity, all of which puts downward pressure on prices.

Copper prices, which have nearly doubled since the pandemic began, have fallen modestly in recent weeks as China released metal reserves and the Federal Reserve indicated a more hawkish stance on future rate increases. Further construction materials price dips are likely, particularly for metals like aluminum and zinc. Steel prices, with demand elevated and China curbing production, have leveled off since late May but remain nearly three times higher than pre-pandemic levels.

“The cure for high prices is high prices, which decrease quantity demanded in the short-term, increase quantity supplied and incentivize suppliers and sellers to bolster capacity in the long-term,” said ABC chief economist Anirban Basu. “Already there is evidence that output is on the rise, which has helped to trigger the price moderation process. That said, input prices will remain elevated by historical standards for at least several more months.”

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The elevated price of softwood lumber, a major talking point during much of the pandemic, appears to have peaked in early May at more than $1,700 per thousand board feet. As of June 23, the price has fallen below $900 per board feet, down about 49% in less than two months. 

Source: MarketWatch

That’s still an unusually lofty price by historic standards—prices remain almost twice as high as in February 2020—but the trend is very much in the right direction. Builders who had been hoarding lumber have now begun to sell from their own inventory, other builders have delayed lumber purchases in anticipation of lower prices, and sawmill operators have been adding shifts and expanding capacity, all of which puts downward pressure on prices.

Copper prices, which have nearly doubled since the pandemic began, have fallen modestly in recent weeks as China released metal reserves and the Federal Reserve indicated a more hawkish stance on future rate increases. Further construction materials price dips are likely, particularly for metals like aluminum and zinc. Steel prices, with demand elevated and China curbing production, have leveled off since late May but remain nearly three times higher than pre-pandemic levels.

“The cure for high prices is high prices, which decrease quantity demanded in the short-term, increase quantity supplied and incentivize suppliers and sellers to bolster capacity in the long-term,” said ABC chief economist Anirban Basu. “Already there is evidence that output is on the rise, which has helped to trigger the price moderation process. That said, input prices will remain elevated by historical standards for at least several more months.”

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On June 22, Senate Majority Leader Chuck Schumer forced a vote on the ABC-opposed For the People Act. ABC key-voted against this procedural show vote arguing that the bill is a misguided attempt to reform our elections and campaign finance law that would discourage Americans from exercising their First Amendment right to free speech, politicize the agencies tasked with protecting our elections and expose hardworking taxpayers to harassment, intimidation and retribution even when they do not participate in campaign and political activities.

The vote failed to garner the 60 votes needed to proceed as all Republicans opposed the vote in a final 50-50 tally with all Democrats supporting the bill moving forward.

ABC will keep members updated about this issue in Newsline.

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On June 22, ABC joined more than 100 trade associations to support the Main Street Tax Certainty Act (H.R. 1381/S. 480) and to oppose potential legislation from Sen. Ron Wyden (D-Ore.) that would weaken the Section 199A pass-through deduction. The Main Street Tax Certainty Act would make permanent the current 20% deduction for small and family-owned businesses, provided through Section 199A of the Tax Cuts and Jobs Act of 2017. However, Senate Finance Committee Chairman Ron Wyden (D-Ore.) plans to propose changes to the business deduction. While still being drafted, the bill is reported to take aim at phasing out the deduction for individuals making above $400,000 in annual business income and eliminating it completely for those making over $500,000.

The letter released on June 22 notes that rolling back or otherwise limiting the deduction would have a severely detrimental effect on the 95% of American businesses organized as pass-throughs and limit the ability of these businesses to recover from the effects of the COVID-19 pandemic.

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On June 14, the ABC Keystone Chapter welcomed 12 girls from surrounding school districts to its facility to learn about blueprints, the construction process and safety at a week-long summer program called the All ‘Bout Construction (ABC) Girls Camp. The first of its kind at the chapter, the camp allowed girls to meet women who work in the industry and visit a series of jobsites. They even got a chance to build and take home their own multi-trade, steampunk-themed lighted charging station using their own set of tools from Klein and ABC strategic partner Milwaukee Tool.

“As we focus our attention on inclusion, diversity and equality, we really wanted the focal point of our inaugural camp to be females from ages 14 to 19,” said Stephanie Larkin, ABC Keystone’s vice president of education, safety and workforce development. “We’re always looking for new ways to share our industry with the next generation.”

The camp, which was funded by the Lancaster County Workforce Development Board, is one of the many ways the Keystone Chapter provides outreach to its 11-county footprint. Next year, they hope to expand the camp to a larger region so more girls can learn about the construction industry.

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On June 10, Annie Mecias-Murphy, co-owner and president of Associated Builders and Contractors member JA&M Developing Corp., headquartered in Pembroke Pines, Florida, testified before the U.S. House of Representatives Small Business Committee Subcommittee on Contracting and Infrastructure on the negative impacts that the Biden administration’s infrastructure plan would have on small business contractors.

Mecias-Murphy, who serves on the board of directors for the association’s Florida East Coast Chapter, testified on behalf of ABC at the hearing titled, Utilization of Small Contractors in the Infrastructure Plan. In her opening statement, she urged Congress to invest in America’s infrastructure, ensure that small construction businesses are not excluded from the competitive bidding process for federal infrastructure projects and expand workforce development opportunities in the construction industry.

“It is because of the construction industry that I am able to be here to share my story with you today. I was born to immigrant parents who chose to flee religious and political persecution by the Cuban government just 90 miles south of Florida,” said Mecias-Murphy. “When my father came to this country in 1969, he entered the construction workforce with nothing except the clothes on his back. Construction was part of our daily lives while I was growing up.”

“The construction industry is fueled by small businesses; in fact, 99% of U.S. construction firms employ fewer than 100 workers,” said Mecias-Murphy. “Improvements to infrastructure can play a huge role in enhancing the opportunities for small business like ours to be able to bid so that we may win work and diversify our experience. These types of projects are critical for the future livelihood of small business in the construction industry. While I appreciate the conversation taking place, and a public commitment to infrastructure improvements, it is my concern that the funding directed towards construction of our nation’s most critical infrastructure under the president’s American Jobs Plan is limited and contains restrictive policies that could inhibit small businesses from bidding on these projects.

“Construction is an industry that gave my family its start, our shining light of opportunity that continues to provide for my family and my employees…The American dream and the construction industry go together. It is through construction that we can provide for our families, create jobs for workers and give back to our communities. I cannot imagine what this legislation will do to all the families that depend on JA&M, let alone all the millions of families around the country that depend on small businesses for their survival.”

Mecias-Murphy said that Congress must avoid enacting partisan, restrictive policies referenced in President Biden’s American Jobs Plan such as the Protecting the Right to Organize Act, government-mandated project labor agreements and a one-size-fits-all approach to workforce development. As her testimony details, the inclusion of these policies and others like them would significantly limit the success of any potential infrastructure bill, as they would prevent qualified merit shop contractors and their skilled and diverse workforce from participating in rebuilding their communities.

Mecias-Murphy also highlighted the need for inclusive workforce development programs like the partnership her chapter and local members have with the Boys & Girls Clubs and numerous other community organizations to make sure that the next generation is aware of the benefits of a career in construction.

Watch a full recording of the hearing here, and read the full testimony here.

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On June 9, the U.S. Environmental Protection Agency and Department of the Army announced their intent to revise the definition of “waters of the United States” that are federally regulated under the Clean Water Act and replace the definition under the Trump administration’s 2020 Navigable Waters Protection Rule, which provided four clear categories of waters under the CWA that businesses and landowners could easily understand.

According to an EPA news release, the NWPR was targeted in President Biden’s Executive Order 13990 on “Protecting Public Health and the Environment and Restoring Science To Tackle the Climate Crisis.” That E.O. directed federal agencies to review all existing orders, guidance documents, policies and any other similar agency actions promulgated, issued or adopted during the previous administration. Following review of the NWPR, the agencies determined that the rule significantly reduces clean water protections.

As a result of the agencies’ findings, the U.S. Department of Justice is filing a motion requesting remand of the rule. The news release also states that DOJ’s action reflects the agencies’ intent to initiate a new rulemaking process that restores the protections in place prior to the Obama administration’s 2015 WOTUS final rule. It also anticipates developing a new rule that defines WOTUS and is informed by a robust engagement process as well as the experience of implementing the pre-2015 rule, the Obama-era final rule and the NWPR.

Background

ABC has long been a vocal opponent of the Obama-era WOTUS final rule since it was first proposed in April 2014. ABC submitted comments on EPA and the U.S. Army Corps of Engineers’ proposals on step one and step two of the WOTUS rulemaking under President Trump. Additionally, ABC filed comments as a member of the Waters Advocacy Coalition.

Issued in April 2020, the NWPR replaced the 2015 WOTUS rule and clarified key elements related to the scope of CWA jurisdiction by identifying four clear categories of waters that are federally regulated under the CWA:

• Territorial seas and traditional navigable waters
• Perennial and intermittent tributaries
• Certain lakes, ponds and impoundments and
• Wetlands that are adjacent to jurisdictional waters.

ABC continues its commitment to work with the EPA and Corps and ensure the clearest possible regulations so that its members have the information needed to comply with the law while also serving as good stewards of the environment.

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The U.S. Department of Labor’s Occupational Safety and Health Administration announced the long-awaited COVID-19 Healthcare Emergency Temporary Standard on June 10. The Construction Industry Safety Coalition, which ABC is a steering committee member, said that it is pleased that the Biden administration and OSHA listened to the concerns and recommendations of the construction industry in formulating the ETS.

“OSHA made the right decision to issue an ETS to cover tasks associated with high exposure risk levels and not construction operations, which are generally low risk,” said CISC in a recent statement. “Workplace safety and health are top priorities for members of CISC. At the outset of the pandemic, the coalition developed an industry-wide COVID-19 Exposure Prevention Preparedness and Response Plan to provide a comprehensive approach to keeping construction workers, deemed to be essential, safe.”

The ETS focuses requirements on healthcare workers who are most likely to have contact with someone infected with COVID-19. The ETS establishes new requirements for settings where employees provide healthcare or health care support services, including skilled nursing homes and home healthcare, with some exemptions for healthcare providers who screen out patients who may have COVID-19. 

Even though this ETS may not apply to all construction workers directly, it may affect ABC members who perform work at health care facilities. While it is not entirely clear at this time, ABC encourages its members involved in health care facility work to consult counsel. ABC is currently reviewing the OSHA COVID-19 ETS with counsel and will provide further details once available.

In addition, OSHA updated its Jan. 29 guidance on Protecting Workers: Guidance on Mitigating and Preventing the Spread of COVID-19 in the Workplace, which applies to nonhealthcare employers. The summary of changes as of June 10 include focusing protections on unvaccinated and otherwise at-risk workers, encouraging COVID-19 vaccination and adding links to guidance with the most up-to-date content.

ABC’s general counsel, Littler Mendelson P.C., wrote an analysis of the OSHA ETS and updated guidance, titled Federal OSHA Issues Emergency Temporary Standard for Health Care. The article states that the update clarifies how OSHA wants employers “to engage with workers and their representatives to determine how to implement multi-layered interventions to protect unvaccinated or otherwise at-risk workers and mitigate the spread of COVID-19.”

These steps include:

• Granting paid time off for employees to get vaccinated
• Instructing any workers who are infected, unvaccinated workers who have had close contact with someone who tested positive for SARS-Co-V-2 and all workers with COVID-19 symptoms to stay home from work
• Implementing physical distancing for unvaccinated and otherwise at-risk workers in all communal work areas
• Providing unvaccinated and otherwise at-risk workers with face coverings or surgical masks, unless their work task requires a respirator or other PPE
• Educating and training workers on the employer’s COVID-19 policies and procedures using accessible formats and language(s) they understand
• Suggesting that unvaccinated customers, visitors, or guests wear face coverings
• Maintaining ventilation systems
• Performing routine cleaning and disinfection
• Recording and reporting COVID-19 infections and deaths
• Implementing protections from retaliation and setting up an anonymous process for workers to voice concerns about COVID-19-related hazards
• Following other applicable mandatory OSHA standards.

The Littler article further states, “While many of the items on this updated list were previously present in the initial guidance, the fact that OSHA reviewed and noted updates further confirms OSHA’s expectations for employers in all industries.  Employers outside of the healthcare industry are advised to closely review the updated guidance and make further adjustments to their own internal policies and procedures, as appropriate.”

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On June 11, the Biden administration released its Spring 2021 Unified Agenda of Regulatory and Deregulatory Actions.  The agenda lists upcoming rulemakings and other regulatory actions from each agency that the administration expects to publish through the end of the year and into 2022. ABC has prepared a summary of the actions of interest to ABC members by agency. 

U.S. Department of Labor

OSHA                                                             

In October 2021, the DOL’s Occupational Safety and Health Administration plans to issue a request for information seeking public input on a possible rulemaking on heat illness prevention in indoor and outdoor settings.  According to the Spring 2021 agenda, California, Washington, Minnesota and the U.S. military have issued heat protections, and given the potentially broad scope of regulatory efforts to protect workers from heat hazards, an RFI would allow the agency to begin a dialogue and engage with stakeholders to explore the potential for rulemaking on this topic.

Additionally, in December 2021, OSHA intends to issue a proposed rule on infectious diseases and examine regulatory alternatives for control measures to protect employees from infectious disease exposures to pathogens that can cause significant disease. The agency listed several workplaces where these control measures might be necessary, including health care, emergency response, correctional facilities, homeless shelters, drug treatment programs and other occupational settings where employees can be at increased risk of exposure.

In September 2021, OSHA is expected to release a proposed rule clarifying the requirements for the fit of personal protective equipment in construction.

Additionally, OSHA expects to issue a proposed rule soon to update its powered industrial trucks design standard, as well as collect information to evaluate the need to update requirements related to the maintenance and use of powered industrial trucks and training of operators.  

In December 2021, OSHA plans to issue a proposed rule to restore provisions of the Obama administration’s 2016 Improve Tracking of Workplace Injuries and Illnesses Final Rule, also known as the Electronic Injury Reporting and Anti-retaliation Final Rule. The agency proposes to amend its recordkeeping regulation to restore the requirement to electronically submit to OSHA information from the OSHA Form 300 and OSHA Form 301 for establishments with 250 or more employees, which are required to routinely keep injury and illness records. Under the current regulation, these establishments are only required to electronically submit information from the OSHA Form 300A.

In April 2022, OSHA is expected to issue a proposed rule on occupational exposure to crystalline silica to determine if revisions to Table 1 in the standard for construction may be appropriate. ABC submitted comments on OSHA’s request for information on Table 1 of the silica standard as part of the Construction Industry Safety Coalition.

Wage and Hour Division

DOL’s Wage and Hour Division is expected to issue a proposed rule to update and modernize the regulations implementing the Davis-Bacon Act and others acts to provide greater clarity and enhance the usefulness of these acts in the modern economy. The department plans to issue the proposal in November 2021.

The WHD is expected to issue a proposed rule in July 2021 implementing President Joe Biden’s Executive Order 14026, Increasing the Minimum Wage for Federal Contractors, which increases the minimum wage for workers working on or in connection with a federal government contract.

WHD also stated its intent to examine joint employment relationships under the Fair Labor Standards Act. On April 12, ABC submitted comments in opposition to the proposal from the WHD to rescind the Trump-era joint employer final rule, which promised to make the joint employment test under the FLSA more narrow and focused.

Employment and Training Administration

In August 2021, DOL’s Employment and Training Administration intends to issue a proposed rule to implement President Biden’s E.O. 14016, which rescinded the Trump administration’s E.O. on promoting industry-recognized apprenticeship programs. The DOL is considering amending the sections of its apprenticeship regulations concerning Standards Recognition Entities and IRAPs.

The agency is also expected to issue a proposed rule in March 2022 regarding one of the six primary indicators of performance within the regulations implementing the Workforce Innovation and Opportunity Act. As five of the six indicators are currently defined in the regulation, OSHA is seeking feedback to incorporate a standard definition the sixth primary indicator, effectiveness in serving employers. 

For more information on upcoming DOL rulemakings, see the department’s Spring 2021 agenda.

National Labor Relations Board

The National Labor Relations Board intends to issue a final rule to enhance the administration of its ethics program to identify potential conflicts of interest and amend its procedural rules to require disclosure of parties’ and other entities’ organizational relationships. The final rule is expected to be issued in June 2021.

Additionally, the NLRB plans to issue an advance notice of proposed rulemaking in September 2021 to solicit public input on the use of videoconference technology to conduct all aspects and phases of unfair labor practice case and representation case proceedings, as well as on potential amendments to its procedural rules regarding the use of videoconference technology.

U.S. Department of Transportation

The U.S. Department of Transportation’s National Highway Traffic Safety Administration intends to issue a proposed rule to update its National Environmental Policy Act implementing regulations in September 2021. On Dec. 23, ABC and several other organizations submitted comments in support of the DOT’s proposed revisions to its regulations implementing the procedural provisions of NEPA.

U.S. Department of Housing and Urban Development

In November 2021, the U.S. Department of Housing and Urban Development is expected to issue a proposed rule to amend its Federal Manufactured Home Construction and Safety Standards by adopting certain recommendations made to HUD by the Manufactured Housing Consensus Committee. Specifically, the rulemaking proposes to amend terminology used for planning considerations, revise fire safety, body and frame, and plumbing requirements, and update standards for testing, thermal protection, heating, cooling and fuel burning systems, among others.

U.S. Department of Energy

The department’s Office of Energy Efficiency and Renewable Energy intends to issue several rulemakings related to standards for various federal and commercial buildings. Rulemakings include a final rule on energy efficiency performance standards for the construction of new federal commercial and multifamily high-rise residential buildings in October 2021, a final rule on energy efficiency performance standards for the construction of new federal low-rise residential buildings in October 2021, and a supplemental proposed rule on sustainable design principles for the siting, design, and construction of certain new federal buildings and major renovations of federal buildings in May 2022.

Federal Acquisition Regulation

In July 2021, several agencies are expected to issue a proposed rule amending the Federal Acquisition Regulation to implement part of President Biden’s E.O. 14005, Ensuring the Future Is Made in All of America by All of America’s Workers. The proposed rulemaking will amend the FAR to 1) replace the component test used to identify domestic end products and domestic construction materials with a test under which domestic content is measured by the value that is added to the product through U.S.-based production or U.S. job-supporting economic activity, 2) increase the threshold for the domestic content requirement, and 3) increase the price preferences for domestic end products and domestic construction materials.

Office of Personnel Management

The Office of Personnel Management intends to issue a final rule in August 2021 to allow for additional options to collect wage data during Federal Wage System full-scale and wage-change surveys—namely, by personal visit, telephone, mail or electronic means.

Council on Environmental Quality

The Council on Environmental Quality plans to issue a multi-step proposal to revise the ABC-supported 2020 final rule on updating and modernizing its National Environmental Policy Act regulations. Phase one, which is expected to be issued in July 2021, will propose a narrow set of changes to the 2020 NEPA regulations, and phase two, which is expected to be issued in November 2021, will propose broader changes to the final rulemaking.

More information on these and other rulemakings can be found in the Spring 2021 agenda, and ABC will continue to provide updates on these and other rulemakings in Newsline.

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On June 10, the Biden-Harris administration announced key findings from the reviews directed under Executive Order 14017 “America’s Supply Chains,” as well as immediate actions the administration will take to strengthen American supply chains to promote economic security, national security and “good-paying, union jobs here at home.”

The report, authored by the White House, assesses supply chain vulnerabilities across four key products: semiconductor manufacturing and advanced packaging; large capacity batteries, like those for electric vehicles; critical minerals and materials; and pharmaceuticals and advanced pharmaceutical ingredients (APIs). The recommendations from the reviews also reiterate the administration’s support for restrictive labor standards that exclude non-union employers, including in automotive battery production and manufacturing and mining, where the White House report states:

“Requiring strong labor protections, including prevailing wage requirements, use of Project Labor Agreements and community hire on construction projects, union neutrality policies for employers and a ban on mandatory arbitration agreements, as relevant to the proposed scope of work.”

Another of many recommendations from the report to rebuild our production and innovation capabilities was to use immediate administrative authorities to support an ecosystem of producers and innovators including small and medium enterprises and skilled workers:

“Specifically, work with industry and labor to create pathways to quality jobs, with a free and fair choice to join a union, through sector-based community college partnerships, apprenticeships and on-the-job training: The Department of Labor’s Employment and Training Administration should support sector-based pathways to jobs, for example in the semiconductor industry. We recommend that the Administration use ETA funds to work with industry and labor, community colleges and non-profit partners to support pathways to advanced manufacturing employment through Registered Apprenticeship programs and by supporting other labor-management training programs.”

President Biden signed Executive Order (E.O.) 14017 on Feb. 24, 2021 directing the U.S. government to undertake a comprehensive review of critical U.S. supply chains to identify risks, address vulnerabilities and develop a strategy to promote resilience.

In response to the report, the administration also announced a new “Supply Chain Disruptions Task Force to tackle near-term bottlenecks” in various industries including semiconductors and home building and construction.  

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