DHA Insights: November 17, 2022
It’s been said that elections have consequences. And it’s perhaps never been more true than over the last two years when Democrats controlled the White House and narrowly controlled both houses of Congress. As a result, they were able to enact several large spending bills. This big legislation is likely to come to an end with the House appearing to be in Republican hands for now. In any case, Decorative Hardwoods Association will continue to work with both parties to advance our members' interests and the interests of the thousands of industry workers around the U.S. For example, DHA and the Hardwood Federation recently advocated with Congress for the continuation of a tax break that allows companies to write off 100% of the value of an asset in the year in which that asset is purchased—a critical benefit for many small and medium-sized wood products companies.
Climate issues and carbon storage have also been getting more attention over the last two years. Carbon storage by forests is increasingly looking like a double-edged sword for our industry. Forests and wood products store carbon and, if properly crafted, carbon offset payments could help forests and our industry. More often, however, these programs seem to be focusing just on standing trees and reducing harvest. The latest example of this is a large purchase of hardwood forests by a consortium that says it will reduce harvest. DHA and our allies are looking at opportunities to make sure that these programs properly reflect the benefits of carbon storage of wood products and to encourage the government to support programs that recognize the role of wood products.
Finally, trade issues continue to be important to our industry. Unfortunately, KCMA received disappointing news, as many Chinese companies are avoiding antidumping duties on Chinese-made cabinets exported to the U.S. We will continue to follow the efforts of the cabinet industry, our important downstream customers.
If you have questions or comments, contact me. I look forward to hearing from you.
Keith A. Christman, President
Decorative Hardwoods Association
Photo © Roseburg