Nebraska should counteract international uncertainty with state stability

Yahoo

08-05-2025

The Lincoln headquarters of the Nebraska Chamber of Commerce and Industry is a short walk from the Nebraska Capitol. (Cindy Gonzalez/Nebraska Examiner)
Tariff-related cost increases in building materials and lumber market instability this year have been causing great uncertainty in the construction and home improvement markets.
As the head of Millard Lumber, that's terrifying.
Not just because it raises the cost of operating our family-owned business. That number also represents a trend of higher costs and uncertain times for our customers and further stresses efforts to maintain affordable housing for every Nebraskan.
It's easy to chalk that up as the price of doing business today, whether it's the result of tariffs, inflation, or excessive regulations. And while many of these pressures start beyond our state's borders, there are simple, realistic steps Nebraska's Legislature can take to improve stability for businesses like mine, so we can continue serving our customers as efficiently and effectively as possible.
The data helps illustrate how much we need help from lawmakers. Tariffs on Canadian oil could push U.S. gas prices up by as much as 20 to 25 cents per gallon in the months ahead. That would increase transportation costs enormously, and small businesses would be hard-pressed not to pass that on to consumers.
Similarly, tariffs on steel and aluminum can drive up the costs of small items used in large quantities like screws, nails, hardware and locks up by nearly 50 percent. That makes everything from homes and cars to furniture and appliances costlier for Nebraska families.
As Millard Lumber and other Nebraska companies are faced with increasing uncertainties in their costs of doing business, we are also faced with uncertainties in demand for our products and services because of cost pressures and a 'freezing' of decision making due to economic uncertainty.
Federally, it isn't all bad news. President Donald Trump issued an executive order earlier this year that requires federal agencies to slash 10 regulations for every new one they add, a great idea. But the regulatory maze will stay put for a while, and compliance costs will weigh us down in the meantime.
It's safe to say that federal efforts alone can't fully address Nebraska's unique economic needs. That's why state-level action could prove critical.
This legislative session is a prime chance to improve Nebraska's business climate. There are already several ideas circulating the Capitol that could offer real relief.
Bills like Legislative Bill 29 (amended into LB660), which would mandate regular reviews of state rules and regulations, would help cut red tape and ease operational burdens on business by encouraging transparent, accountable rule-making by state agencies.
Giving businesses leeway to customize benefits like paid leave lets us meet workforce demands and adhere to voter mandates while avoiding the stifling effect of one-size-fits-all government intervention. For example, LB 415 offers clarity for businesses as new paid sick leave requirements take effect.
On wages, LB 297, signed by Gov. Jim Pillen this session, should provide an immediate reduction in payroll costs by reducing the combined unemployment tax rate in 2025.
These steps and others prioritized by business leaders, including the Nebraska Chamber of Commerce, would help us stabilize costs and shield our customers from national volatility.
Of course, our congressional delegation deserves credit for pushing pro-business policies, from promoting tax certainty to expanding access to affordable childcare.
Our state is consistently ranked as one of America's top 10 states for doing business.
Even so, past wins are no guarantee of future success — especially when continued progress is threatened by consumer angst, supply chain interruptions and global trade disruptions.
In the short term, uncertainty will likely slow growth, but Nebraska's resilience runs deep. We're lucky to have many legislators in Lincoln who recognize that our state thrives when our businesses thrive.
By lowering the costs of doing business, our lawmakers can help local businesses flourish, not just survive.
Joel Russell, an Omaha-native, is president and CEO of Millard Lumber. He chairs the board of the Nebraska Chamber of Commerce & Industry.