March 6, 2006
By David Pressly
NAHB President and
Jerry Howard
NAHB Executive VP and CEO
 
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Paving the way for free trade of Mexican cement,
an official signing ceremony scheduled for March 6 will formalize a recently announced agreement-in-principle between the U.S. and Mexico.

Recognized as one of the Top 10 Critical Issues for Builders in NAHB's annual critical issues survey, pricing and supplies of cement have been increasingly worrisome in the wake of rebuilding efforts stemming from last season's hurricanes. NAHB has repeatedly urged the Commerce Department to overturn costly anti-dumping tariffs on Mexican imports as a means of improving housing affordability and speeding the disaster recovery process in this country. We were therefore encouraged when our government announced its plan to aid cement imports on Jan. 19. This plan calls for the U.S. to initially reduce duties on imported Mexican cement to $3 per ton from the previous $26 per ton, and to permit importation of 3 million metric tons of cement annually, up from about 2 million metric tons last year.  Most importantly, however, after three years, all duties and quotas should disappear entirely. The signing ceremony to formalize this agreement is scheduled to take place at the U.S. Commerce Department at 1:00 PM on March 6, with Commerce Secretary Carlos Gutierrez, U.S. Trade Representative Rob Portman and Mexico's Secretary of Economy, Garcia de Alba, attending. Contact Jason Lynn (x8307) or Michael Carliner (x8376) for agreement details.

NAHB members will soon benefit from the 90% tariff reduction and expanded cement supplies in disaster recovery zones and other parts of the country. Moreover, the promise of eventual free trade of Mexican cement bodes well for home builders at a time when U.S. cement production capacity is unable to keep up with demand.

OSHA is exempting Portland cement from a new rule
governing exposures to hexavalent chromium, in what can only be termed a victory for the nation's home builders following many months of lobbying and testifying by NAHB and its coalition partners. While Portland cement (an ingrediant of concrete and masonry cement that is very common on building sites) can contain trace amounts of hexavalent chromium compounds, research has shown that exposure to the regulated substance from this product is negligible, and that the true factors responsible for the irritant nature of wet cement are its alkalinity and abrasiveness rather than those compounds. Moreover, current regulations already require personal protective equipment to shield against the corrosive effects of wet cement, and such equipment also provides protection from chromium.

As a result of an anticipated OSHA rulemaking tied to a citizens' group lawsuit, NAHB's Board of Directors adopted official association policy on this issue during our 2004 Fall Board of Directors Meeting in Columbus, OH. From that point on, NAHB members and staff did what it took to convince the government that whatever regulation was developed should contain an exemption for Portland cement. Our victory came on Feb. 28, when the Federal Register officially reported that OSHA's final rule does NOT cover exposure to the substance within this commonly used material. See NBN Online for details, or contact A.J. Holliday (x8305).

 This latest victory, though it could be challenged at a later date, marks the very successful conclusion of a multi-year effort by NAHB to keep an anticipated government rulemaking from having unduly adverse consequences on our builder members that could have amounted to thousands of dollars per home. Had Portland cement not been exempted, the new OSHA rule would have required special hand-washing facilities at every residential building site, as well as extensive record-keeping and medical monitoring — including monitoring of previous health exposures. [return to top]

Materials for the 2006 March Executive Board Meeting
are now available on NAHB's Web site. The meeting takes place this coming March 10-12 in Pinehurst, NC, and there have been recent revisions to the schedule — so be sure you have the latest. This will be an important strategy session heading toward our next big events, the Spring Board of Directors Meeting and Legislative Conference, which start May 10. For registration or other info, contact Barbara Emrick (x8184). [return to top]

An orderly cooling-down process
of the kind forecasted by NAHB Chief Economist David Seiders seems to be getting underway in the new-home market, according to the latest evidence from the U.S. Commerce Department. On Feb. 27, the government reported a 5% decline in new-home sales for January, though at the same time it upwardly revised sales numbers for both November and December of 2005. The inventory of new homes for sale rose slightly in January to a record 528,000 units — a 5.2-month supply at the current sales pace. "With sales volume off, the inventory level has edged higher, but this rise is nothing to be alarmed about because the fastest growing component of the inventory run-up relates to homes that have been permitted but not yet started," Seiders noted. See our press release for more information, or to find out about NAHB's media response to what has been termed an expected "simmering down" process in home sales, contact Paul Lopez (x8409).

When government figures on the housing market are reported, NAHB conducts extensive media outreach to help provide members of the press and public with the proper context and perspective on industry conditions. For example, this January's sales rate was still 3.3% above what it was one year ago, and NAHB forecasts anticipate a decline of roughly 7% in new-home sales for all of 2006, essentially returning to 2004's healthy level. [return to top]

The NAHB Nominations Committee has certified a candidate
to seek the office of 2007 NAHB Vice President and Secretary. Robert Jones of Bloomfield Hills, Mich., has published his official announcement of intention to seek the office, along with details of his past service to NAHB, on the association Web site. Having sought this office once before, Bob vows he's readier than ever this time around. For information on the nominations process, please contact Cynthia McKinley Brown at x8346, or go online for details on the NAHB Nominations Committee[return to top]

Affordable, market-driven approaches to green building
will be in the spotlight at the upcoming National Green Building Conference in Albuquerque, NM. Events get underway on March 11, and it's not too late to register if you haven't already.  Just before the conference that's being held in their backyard, members of the HBA of Central New Mexico will be unveiling their own voluntary green building certification program, based on NAHB's Model Green Building Guidelines. In all, more than 900 builders, remodelers, developers, architects, engineers, exhibitors and environmental experts are expected to attend this increasingly popular event featuring International Code Council President Henry L. Green as keynote speaker. There will also be more than 70 exhibit booths featuring environmentally sensitive products, materials, services and supplies. Contact: Calli Barker Schmidt (x8132) or get more information online.

NAHB's green building initiatives help give our members a competitive edge in marketing new homes to consumers while demonstrating builders' committment to voluntary environmental conservation methods. The National Green Building Conference is also a one-of-a-kind educational and networking event that draws positive media recognition of ongoing industry trends. [return to top]

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