NRLA and Kamco Emphasize Link Between Business Costs, Material Prices, and Housing Affordability
Albany, NY—The Northeastern Retail Lumber Association (NRLA), alongside Kamco Supply Corp., today hosted Governor Kathy Hochul at a building materials yard in Colonie to highlight how rising auto insurance costs are impacting the lumber and building materials (LBM) industry, and driving up the cost of housing across New York.
The visit focused on the role LBM dealers play in the housing supply chain and the growing cost pressures they face. LBM businesses supply the essential materials used in new home construction and renovations, including lumber, drywall, windows, doors, and other core components.
The industry operates on tight margins, typically 5 percent or less, meaning cost increases are often passed directly through to customers. As a result, rising operating expenses at the dealer level directly impact the price of building materials, contributing to higher costs for builders, homeowners, and prospective buyers.
Auto insurance has emerged as one of the most significant cost drivers. NRLA members across New York report premium increases of 25 to 50 percent in just the past year. Dealers often spend tens of thousands of dollars annually to insure delivery trucks and fleet vehicles, and these recent increases are adding thousands of dollars in additional costs per business each year.
“Auto insurance rates are not only impacting people who rely on their cars to get around — they’re also hurting our local businesses who rely on vehicles to transport goods, driving prices up for consumers.” Governor Hochul said. “My state budget is about making life more affordable for hardworking New Yorkers. From driving down the cost of auto insurance to demanding that the federal government refunds the $13.5 billion illegally taken from New Yorkers, I’ll never stop standing up for New York.”
“We appreciate the Governor’s focus on affordability and her efforts to address rising auto insurance costs,” said Jamie St John, Kamco Regional Manager “For businesses like ours, these reforms are an important step toward reducing the cost pressures that impact our customers and the price of building and improving homes.”
“Our members operate on margins of five percent or less, so cost increases like insurance hit pricing
In states like Florida, similar reforms have delivered sustained auto insurance rate reductions of roughly 7 to 8 percent annually, about 15 percent over two years. Based on those results, the NRLA estimates the Governor’s proposals could save its members between $7 million and $10 million over that same period, savings that would otherwise be built into the price of construction materials and passed along to consumers.
The visit provided an opportunity to connect policy discussions directly with real-world operations, reinforcing the need for solutions that address rising business costs and support the delivery of homes the average New Yorker can afford.
