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NC home builders make argument for federal aid
07:17 PM EST on Thursday, January 8, 2009
RALEIGH, N.C. -- The housing slump is having trickle-down effects among building supply companies, which in turn means growing layoffs, a company president said Thursday.
The News & Observer of Raleigh reported that Joe Appelmann said Stock Building Supply has laid off at least 1,000 employees in North Carolina and 9,000 jobs nationwide -- cutting in half its total work force -- in the past 14 months.
"When housing is talked about, I think people strictly think about homebuilders," Appelmann said during a conference call hosted by the North Carolina Home Builders Association. "There's an exact trickledown effect when their business is impacted."
The call was designed to press the homebuilders' case for government help as builders and suppliers cope with the biggest housing slump in more than six decades.
The National Association of Home Builders wants Congress to approve an aid package of at least $100 billion to help the construction industry. The group's wish list includes tax credits of up to $22,000 for home purchases and subsidies that would bring mortgage rates to as low as 3 percent for the first half of this year.
"If a stimulus package doesn't hit the industry, and if we continue to see the industry move further down, we will have to adjust our business," Appelmann said.
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