Did I point out an all-red Congress? “A Republican Congress and administration will bode properly on vitality coverage as PHCC members confront bans and restrictions on pure gasoline connections and home equipment throughout the nation,” says Mark Valentini, Vice President of Legislative Affairs, PHCC-Nationwide Affiliation. “This will even bode properly for tax coverage as sure provisions within the Tax Cuts and Jobs Act of 2017 are set to run out which have been useful for a lot of contractors, particularly when contemplating Congress revisiting the company tax price and doubtlessly decreasing it to fifteen% down from 21%.”
Valentini’s cohort, Charles White, VP Regulatory Affairs, PHCC-Nationwide Affiliation, says that we are able to count on to see laws on tax reform and vitality within the new Congress. “Tight margins significantly within the Home would require all Republicans to be on board to cross something,” says White. “It’s attainable that the brand new administration will evaluate laws which can be at the moment in litigation, just like the residential gasoline furnace rule, and maybe determine to drag again these guidelines for revisions. This might additionally have an effect on selections on whether or not to enchantment opposed courtroom rulings such because the latest ruling towards the US Division of Labor’s Time beyond regulation Rule.”
Tariffs and the Business
There’s a back-and-forth debate brewing whether or not instituting tariffs is helpful to the American economic system and the American employee. IAPMO’s Hansen says that economists have completely different views on the subject of tariffs, however the plumbing trade is well-positioned to assist continued home manufacturing of what our nation wants—and enhance US exports to different international locations.
“Any coverage that strengthens our manufacturing muscle is sweet for the economic system and will increase job alternatives within the trades. Applications such because the Market Growth Cooperator Program and Requirements Alliance at USAID, together with the Division of Commerce’s Overseas Industrial Service, present very important assist to US exporters. We hope the administration will proceed backing these applications to make sure US merchandise stay aggressive abroad. We proceed to watch the impression tariffs are having on our international trade as producers transfer areas to keep away from these prices,” says Hansen.
Whereas IAPMO is cautiously optimistic and vigilant, PMI shares concern. “Throughout his marketing campaign, President Trump spoke about his need to extend tariffs—as excessive as 60% on Chinese language items, 10% to twenty% throughout the board on all overseas items, together with Europe, and 25% on imports from Mexico, except they curb the variety of immigrants coming throughout the border. If he’s profitable, these tariffs can have an inflationary impression, rising the prices of manufacturing and in flip the prices of merchandise within the market. That’s actually one of many largest issues plumbing producers have proper now.
“Our stance on this subject all alongside is that tariffs are dangerous to the economic system as a result of they enhance prices for producers and have an inflationary impression on clients wishing to buy plumbing merchandise. These elevated prices lead producers to offer fewer jobs they usually have much less cash for compensation as properly. From an financial standpoint, we see no advantages from tariffs. PMI has all the time been an advocate totally free and truthful commerce amongst nations,” says Stackpole.
ABC’s Brubeck says that tariffs are a negotiating device to renegotiate insurance policies with different international locations. “Whereas having a tough time getting supplies from abroad, resolving the home provide chain is an efficient factor,” says Brubeck.
Dedication to the Trades?
Whereas President Trump’s first time period had assist from the commerce’s rank and file, the Business Acknowledged Apprenticeship Rule, for instance, obtained extra damaging public feedback than maybe another rule, suggests White. These damaging feedback got here overwhelmingly from those self same rank and file staff. “Polling knowledge all through the election exhibits that the President-elect loved substantial assist from expert blue-collar staff, however his future actions should assist their jobs within the workforce,” says White.
Bellaman says that ABC seems to be ahead to working with the Trump administration and Congress to advance insurance policies that remedy the points that the development trade faces, together with the expert labor scarcity of greater than half one million, widespread regulatory burdens and inflation and tax challenges. “We welcome the chance to work with a president who’s prepared to welcome all the US building trade to rebuild America.”