Prefabricated Wood Building Manufacturers NAICS 321992

Mar 10, 2025 - White House Begins Investigation of Canadian Lumber Imports

• Trade strife may increase lumber prices, which could pinch the margins of prefabricated wood building manufacturers if higher prices can’t be passed on to customers. On March 1, Trump initiated an investigation into whether US imports of Canadian lumber posed a national security threat, according to The New York Times. The inquiry could enable Trump to enact fresh tariffs on lumber imports from Canada on top of a 25% tariff on all Canadian imports that went into effect on March 4 but was paused for a month two days later for products that are compliant with the United States-Mexico-Canada Agreement (USMCA). The White House claims the US has the resources to be self-sufficient in its lumber needs, but US sawmills can’t compete with imports dumped unfairly on the US market. White House officials said lumber supply is a national security issue because the US military is a significant lumber consumer.
• North American construction and engineering spending for multifamily projects dropped 7% in 2024 and is forecast to decline by an additional 13% in 2025. Headwinds include a recent jump in new apartment supply, unfavorable cost conditions, and slower rent growth. However, these trends are expected to begin easing in 2026 as rent growth and multifamily starts regain steam. One bright spot is modular multifamily construction, which is gaining popularity because it can bring units online cost-effectively amid labor shortages and rising materials costs.

• Two billionaires – Airbnb co-founder Joe Gebbia and real estate mogul Rick Caruso - are each contributing $15 million to help build prefabricated homes for wildfire victims in Los Angeles, California, according to Bloomberg. The donations will go to the Steadfast LA foundation, which will buy the homes from Samara, a prefabricated building maker controlled by Gebbia. Lower-income residents of the Pacific Palisades and Altadena neighborhoods who were uninsured or underinsured will be prioritized, and the first homes are expected to be ready for permanent installation in four months. Industry insiders note that prefabricated homes are an increasingly popular option for disaster recovery because production is less subject to labor shortages than site-built homes.
• In December 2024, Greystar Real Estate Partners – the largest apartment owner in the country – opened a six-building, 312-unit complex assembled using modular construction methods, according to The Wall Street Journal. The development – called “Ltd. Findlay” – near Pittsburgh is Greystar’s first modular apartment project, as the company hopes the alternative method can speed construction in an industry often mired by delays. The project was built at Greystar’s factory in Knox, Pennsylvania, and the firm has six other modular projects in the works. Modular housing is built in factories and assembled on-site, which proponents suggest reduces construction time and labor and materials costs. While modular housing remains a small part of the overall market, it is gaining ground amid a shrinking construction labor force and rising costs.