Small business owners have been warning lawmakers about the financial strain they face from rising costs and government regulations, the topic of a House Small Business Committee hearing on Wednesday.
The Washington News Bureau spoke with Steve Martinez, president of Tradewinds General Contracting, a family-owned homebuilding business based in Idaho.
“It's really frustrating to have constant pressure to increase costs at every turn,” Martinez said.
Martinez conveyed these concerns to the House committee, where he argues that some government regulations are impeding an increase in housing supply at a time when communities across the country are facing housing shortages.
“We must remove the barriers, regulatory barriers, labor barriers and supply chain barriers that prevent homebuilders from increasing housing production,” Martinez said in his testimony. “Regulatory barriers, including compliance with building codes, account for approximately 25 percent of the cost of a single-family home and more than 40 percent of the cost of an apartment building.”
Small business owners also warn of labor shortages and rising supply chain costs, which could mean delays and higher prices for consumers.
“The average cost of a shipping container has more than tripled in the past 90 days alone,” JD Ewing, chairman and CEO of COE Distributing;
Democrats and Republicans agree that rising costs are a major obstacle for small businesses but are divided on how to tackle the problem, with Republicans blaming the Biden administration's economic policies and Democrats arguing that large businesses are unfairly raising their costs.
We asked Martinez what he thinks the federal government should do to ease the burden on small businesses.
“I think it's worth taking a hard look at how regulations are being implemented,” Martinez said. “Is this change for the sake of change? Is this to save lives? Is this to reduce red tape? What is the real intent?”
