# How New Tariffs Impact Facilities



## jar546 (Sep 24, 2018)

President Trump unveiled new tariffs on $200 billion of Chinese goods. Here’s how they’ll affect you.

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## jar546 (Sep 24, 2018)

I will be the first one to respond to this since it gets posted automatically with a code enforcement feed I am subscribed to.

#1  This IS NOT a political post.  It is informational and you can see how it may affect facilities and construction.  

#2  We will not make this a political post.  Please keep all comments free of political innuendo, this is about our industry.

One of the things I am adamant about is that we steer far away from politics and religion here.  Let's not go there with this one.

There, I fired a warning shot.  Otherwise, have a great day.


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## ICE (Sep 24, 2018)

A Rabbi and a Priest walked onto the Senate floor........  On a lighter note, prices will be escalating.....rubber gloves are gonna be through the roof I tell you....through the the roof........How am I doing so far?


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## JCraver (Sep 25, 2018)

They've hit me twice - building is slowing so I have time to do more code enforcement stuff (yuck!), and since I also farm and crop prices are in the crapper, well, it's gonna' be a long fall/winter.

On the flip side, if the other guy blinks first and we get a new deal then it could be a really busy spring.


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## Pcinspector1 (Sep 25, 2018)

I have a real concern about the toilet paper tariff, what brand is going to coast more and I'll by the other brand?

My Asst. Fire Chief said the other day that "Knox Box prices were going to go up due to the tariffs!", I think I'll right them out of the code, I catch more grief asking property owners for those. And the hassle of getting them hooked up with the FD to place the order. I guess we can't make that kinda stuff anymore.


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## mtlogcabin (Sep 25, 2018)

Some manufacturers/suppliers will use the Tariff card to raise prices whether it is true or not.


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## fatboy (Sep 25, 2018)

mtlogcabin said:


> Some manufacturers/suppliers will use the Tariff card to raise prices whether it is true or not.



I concur, it is apparent that there will be impacts to the building industry, but others will dog-pile on, claiming they were affected.


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## Francis Vineyard (Sep 25, 2018)

Nothing to see here, move on. Just another trend in the season of floods, fires, inflation, housing bubble, etc.



https://www.architectmagazine.com/design/construction-costs-in-the-us-are-rising_o



*Building Materials*
July 15, 2013  1





Crowe's Economy
*MATERIAL PRICES UP*
*A typical home's total materials costs increased 5 percent during the past six months; higher in the South and West.*
By David Crowe

Home building material prices soared earlier this year although some calm arrived recently. Material costs account for about one-third of a new home’s selling price, so a 10 percent rise in material costs equates to an average $8,500 price increase per house. The current conservative appraisal environment makes that kind of increase near impossible. Two recent NAHB surveys highlight the extent of these trends and the materials most affected.

The NAHB surveyed builders and building material sellers, in cooperation with the National Lumber and Building Material Dealers Association, on what commodities they bought and the degree of price movement they experienced during the past six months.

Builders said they most often purchased framing lumber, windows, doors, millwork, gypsum, and roofing materials. They cited that the materials experiencing recent price increases include (in the order of largest percentage): framing lumber, OSB, plywood, gypsum, trusses, ready-mix concrete, roofing materials, and cement. There were no major differences across the four census regions or three sizes (by number of starts) of builders.

Surveyed dealers’ most frequent purchases were OSB, framing lumber, plywood, windows, doors, millwork, gypsum, and insulation. Dealers listed the same top five materials, but a larger share saw increased pricing. They also were more likely than builders to receive higher prices for insulation, SIPs, windows, and doors. Differences in gross sales levels did not appear to affect the dealers’ experiences.

The five materials most cited by builders for price increases also showed the greatest change in builders experiencing an increase.  In mid 2012, 58 percent of builders saw framing lumber increase but by mid 2013, the share rose to 92 percent. The share of builders seeing price increases in OSB and plywood rose by one-third and the share seeing truss price increases rose from 51 percent to 80 percent.

*Supporting Indexes* Independent measures that produce price indexes support the builders’ and dealers’ experiences. From May 2012 to May 2013, softwood lumber was up 26 percent, OSB was up 74 percent, plywood increased 14 percent, and gypsum was up 19 percent while the entire bundle of building materials used in a home were up less than 2 percent. Some softening has occurred in more recent reports.

The near universally purchased materials had some of the largest price increases while some materials saw much smaller changes. Builders reported that a typical home’s total building material cost increased 5 percent over the past six months. Larger builders (100 or more starts per year) experienced an average 5.6 percent increase, and costs increased the most in the South and West.

Building material dealers responded with a much higher (more than 10 percent) increase in the past six months for the materials they sell. Some of the differential can be explained by the narrower range of materials many of the dealers sell. Most dealers concentrate sales in materials with the greatest price increases and many did not sell products such as plumbing fixtures, brick, concrete, and steel, which had some of the smallest price increases.

A number of potential forces appear to have caused these increases at a time when home building is barely halfway back to a normal production level. Manufacturers of building materials experienced the same collapse in their markets as builders did. After ramping up capacity to supply the construction of more than 2 million homes a year, home building fell to barely 0.5 million. All of the resources, labor, factories, trucks, raw materials, and capital went idle or found other industries or markets. For instance, timber went to China, workers went to energy production, and manufacturing facilities were scraped.

As production comes back, these resources will return but it will take time. The slow housing rebound may be a blessing in disguise giving the rest of the housing support system time to rebuild.

https://www.builderonline.com/products/building-materials/material-prices-up_o


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## mtlogcabin (Sep 25, 2018)

US tariffs are based on the 1st sale price not the final sale price. A 10% tariff on a $60.00 retail trinket that had a port entry price of $10.00 is only $1.00 not $6.00 that most articles claim.


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## JCraver (Sep 25, 2018)

mtlogcabin said:


> US tariffs are based on the 1st sale price not the final sale price. A 10% tariff on a $60.00 retail trinket that had a port entry price of $10.00 is only $1.00 not $6.00 that most articles claim.



That's important, because most people don't pay any attention.

It matters little though because when they buy the same things at the same stores like 99% of folks do, and their bill at those stores is higher than it was, that's all they see.


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## jeffc (Sep 25, 2018)

The government of China knows that if their manufacturing community started to decline, political instability would result. This gives the Chinese government motivation to protect their manufacturing base. If the US thinks they can move the Chinese manufacturing community to suit our will, we are sadly mistaken.


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## mtlogcabin (Sep 25, 2018)

jeffc said:


> If the US thinks they can move the Chinese manufacturing community to suit our will, we are sadly mistaken.



Not correct according to Forbes

https://www.forbes.com/sites/kenrap...factories-shifting-out-of-china/#96c5339103eb


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## jeffc (Sep 25, 2018)

Mtlogcabin, I enjoyed your referenced article. However, it mostly discussed manufacturers willingness to follow the cheaper labor in other countries. The article did mention,
“Chinese premier Li Keqiang came out of nowhere last week, saying that Beijing would do everything possible to prop up the domestic economy in light of a trade war.” My point was that the Chinese Government stands to lose power if their economy starts to stagnate. They depend on the economy growing by 10% per year just keep the working class content. If the ever-growing middle class start to lose faith in the Chinese economic system, a political revolt could ensue.  Here is a good article that discusses the lengths the Chinese government will go to prop up their economic engine: https://money.cnn.com/2018/06/25/news/economy/china-rrr-cut-economy/index.html?iid=EL


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