August 2014 Hardwood Matters

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H A R DWO O D M AT T E R S T H E VO I C E O F T H E H A R DWOO D I N D U ST RY

GORD’S GOLD T H E O F F I C I A L P U B L I C AT I O N O F T H E N AT I O N A L H A R D W O O D L U M B E R A S S O C I AT I O N S T R O N G R O O T S . G L O B A L R E A C H . | W W W. N H L A . C O M


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DEPARTMENTS 18 20 23 24 25

Insurance Corner Member to Member Rules Corner Legislative Log Foundation Focus

READER SERVICES 4 5 6 10 26 28

President’s Message Executive Director’s Message Letters to the Editor Inside NHLA Job Board Calendar

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IN THIS ISSUE... 12

GORD’S GOLD by Tim Portz

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H A R D W O O D M AT T E R S T H E VO I C E O F T H E H A R DWO O D I N D U ST RY

THE MISSION OF NH LA To serve NHLA Members engaged in the commerce of North American hardwood lumber by: maintaining order, structure and ethics in the changing global hardwood marketplace; providing unique member services; promoting North American hardwood lumber and advocating the interest of the hardwood community in public/private policy issues; and providing a platform for networking opportunities.

August 2014 ▪ Issue 148 National Hardwood Lumber Association PO Box 34518 ▪ Memphis, TN 38184-0518 901-377-1818 ▪ 901-382-6419 (fax) info@nhla.com ▪ www.nhla.com

EXECUTIVE COMMITTEE

MISSION LEADERS

Scott Heidler Heidler Hardwood Lumber Co. President

Skip Holmes Thomas & Proetz Lumber Co. Unique Services

Pem Jenkins Turn Bull Lumber Co. Vice President

Charlie Netterville Fred Netterville Lumber Co. Industry Advocacy & Promotion

Dave Redmond Highland Hardwood Sales, Inc. Past President 2010–2012

Greg Patenaude Péladeau Lumber, Inc. Membership & Marketing

Mark A. Barford, CAE Executive Director

Brent Stief Huron Forest Products Structure

NHLA STAFF

Gary Swaner Swaner Hardwood Co. Rules

Mark A. Barford, CAE Executive Director m.barford@nhla.com Renee Hornsby Director of Communications/Editor r.hornsby@nhla.com

■■■ Rich Hascher Inspector Training School Instructor John Hester Director of Membership Dana Spessert Chief Inspector Denise Stewart Director of Finance/CAO

COMMITTEE CHAIRS Jeff Durst Hull Forest Products Inspection Services Orn Gudmundsson, Jr. Northland Corporation Communications & Marketing/Finance Mark Mah Upper Canada Forest Products Hardwood Advocacy Darwin Murray McClain Forest Products Continuing Education Jim Reader Downes & Reader Hardwood Co. Membership Joe Snyder Fitzpatrick & Weller, Inc. Rules Jim Steen Pike Lumber Co., Inc. Inspector Training School

For advertising inquiries: Contact John Hester, Director of Membership at j.hester@nhla.com or 901-399-7558.

Kim Vollinger W. M. Cramer Lumber Co. Convention

ADVERTISER INDEX

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American Hardwood Industries

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Brunner-Hildebrand

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Dunavant Global Logistics Group

ibc

Eberl North America, LLC

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King City Forwarding USA, Inc.

bc

NHLA Convention

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Pennsylvania & Indiana Lumbermens 22 Mutual Insurance Companies 17 Pike Lumber Company, Inc. 23 SimplyC omputing International, Inc.

U•C Coatings Corporation USNR Wood-Mizer Blades

The Jacobs Team

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PRESIDENT’S MESSAGE

I WILL NO LONGER LET SOMEONE ELSE SPEAK FOR ME For the past nine months the hardwood industry has been involved in heated discussions over the Hardwood Check-Off and how it would affect our industry and businesses. One argument I have heard is that it will invite government into our businesses. I would argue that they are already involved in our business and that we need to be more proactive with government. I am not discussing the Hardwood Check-Off, I am promoting instead, individual and corporate involvement with the government though, through the Hardwood Federation. The Hardwood Federation is the hardwood industry’s voice in national politics and matters that concern us all. Our government exists to represent the people. Some people may not feel this is happening, but I suggest that if you feel this way, it is because your voice is not being heard. Congress works on many policies at the same time and depends on staffers to gather information and educate them on how they should vote. We may not agree with the system, but it is the system that is being used. Staffers, as well as members of Congress, make their decisions based on the information they receive. If we, as an industry, are not giving them the proper information, then we are taking the chance that others are representing our interests and this is not always the case. Every time we don’t agree with a bill that is passed, perhaps we should blame ourselves for not being the voice that is heard! If you have not been to Washington, D.C. to meet with your congressional representatives, you need to ask the question, “Who they are listening to?” Perhaps it is time for you to represent yourself and your company by attending this year’s Hardwood Federation Fly-In September 8-10. The Hardwood Federation staff, led by Dana Cole, will take care of all the details and arrange meetings for you with your congressional leaders. As in years past, the FlyIn will connect industry leaders with key lawmakers in Congress, Congressional staff thought leaders, and important policymakers from the current Administration. Last year they facilitated more than 60 meetings to inform elected officials of issues of interest to the hardwood industry, including important Farm Bill components, the significance of including wood in federal green building guidelines and many more. Fly-In participants make solid connections with staff members that can lead to formal or informal advisory positions and even invitations to testify before powerful Committees on behalf of the industry. I attended my first Fly-In two years ago and was a little intimidated the first time I walked in to the office of a U.S. Senator. Because the Federation staff had arranged the meeting for me, I was pleasantly greeted and was amazed at the interest in our industry’s concerns. They took the time to listen, answered my questions about their views, and gave me insight on the direction the government was taking on the issues that mattered most to me. For the first time I walked away feeling like the government was representing me. So please make travel plans and register to attend the Hardwood Federation Fly-In September 8-10 in Washington, D.C. so your voice will be heard. You can register

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Perhaps it is time for you to represent yourself and your company by attending this year’s Hardwood Federation Fly-In September 8-10. online at www.HardwoodFederation.com. I no longer want to leave it up to someone else to speak for me, it never seems to turn out the way I want it to! Respectfully,

Scott Heidler Heidler Hardwood Lumber Co.

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EXECUTIVE DIRECTOR’S MESSAGE

DEFINITION OF CHANGE = HARDWOOD MARKET IN CHINA Having travelled to China over the past 20 years a few dozen times, I can report having just returned from the AHEC Greater China and Southeast Asia Convention held in Tianjin that things have changed once again, both long term and short term. Market shifts may seem normal to anyone who has been surviving the tumult of the hardwood industry, but when it happens to the number one market for grade hardwoods it affects us all, and I mean every member of the industry whether you actually export or not. Long term, the market in China has shifted from a boomerang market to a consumption market. This shift means that most of the hardwood shipped from North America to China is staying in China. North American hardwood currently supplies about 25 percent of China’s hardwood import needs, so the potential for growth is extraordinary and is a real possibility. Short term, the market is expanding to new companies located in different areas of China. In the early days, there was a relatively small group of buying companies located predominately in central China (the Shanghai area) and southern China (the Guangzhou area). The recent AHEC conference held in Tianjin, China (located 60 miles east of Beijing) had a high attendance of local lumber buyers, which demonstrates that more North American hardwoods will be going directly to users – vastly expanding the hardwood market potential. Last year NHLA sponsored a Chinese Culture Workshop taught by Marco Chan. Mr. Chan is the CEO of AmAsia Corporation, and has a 20-year previous work history with FedEx where he started the business logistics service in Asia. Because of the power of his message, NHLA has invited him to be one of the Keynote speakers at the 2014 NHLA Convention. Whether you currently export to China or want to understand why the future of the Chinese economy is so linked to our success you will want to attend his enhanced Chinese Culture Workshop on Friday, October 10.

Long term, the market in China has shifted from a boomerang market to a consumption market.

Change=China. The large population in China is growing fast with tens of thousands of new millionaires and a hungry young population looking to be more Western. With all of this growth, you can be sure that most of the change will be for the good in regards for the demands of hardwoods. I encourage you to watch this market closely and call me directly for any further insights I can offer. Sincerely,

Mark Barford, CAE, Executive Director National Hardwood Lumber Association 901-377-1082 direct | m.barford@nhla.com www.nhla.com

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LETTERS TO THE EDITOR

RESEARCH AND DEVELOPMENT FOR HARDWOOD Recent presentations by proponents of the Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order (Check Off ) have focused increased attention on “research opportunities� for our industry. It has been suggested that the U.S. forest sector is losing market share to the forestry sectors of other countries as a result of their investments in research and development. Finland is investing approximately $70 million annually in R&D and Canada has about 550 people devoted to its public/private cooperative forestry research program (FPInnovations), which is reportedly funded at approximately $100 million per year. Supporters of this proposal have made neither general nor specific suggestions for potential research subjects, topics or even direction for the use of funds, which may be allocated to research from the proposed Check Off program. The proponents have also declined to give any indication of what proportion of the proposed Check Off assessment is likely or desired to be devoted to research. In the absence of specific proposals in these areas, let us consider the need for forestry sector research in the context of current research efforts in the United States. The proposed 2015 budget for the U.S. Forest Service is approximately $6.5 billion which includes just over $275 million specifically earmarked for forest and rangeland research and development. While this represents a reduction in research funding of about 6 percent from the prior year, the numbers are generally consistent with historical spending

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in these areas. The USFS-published Strategic Program Areas for research, from the 2015 budget include Wildland Fire and Fuels, Invasive Species, Resource Management and Use, Inventory and Monitoring, Nanotechnology and Localized Needs. A portion of this budget is not specifically targeted to industry/commercial topics (e.g., $4.1 million is devoted to recreational topics and $25 million is devoted to wildlife and fish topics). Research areas and proposed spending levels from the 2015 proposed U.S. Forest Service budget include over $20 million devoted to fire and fuel research, over $32 million to invasive species research, over $86 million to resources management and use (including $19 million for the Forest Products Laboratory in Madison, WI) and $75 million for forest inventory and analysis. These areas of research benefit all wood producing industries. Spending in these categories totals $213 million, or more than 75 percent of the total USFS R&D budget of just over $275 million. These funds support 67 laboratories nationally organized around five regional research stations and the Forest Products Lab in Wisconsin. The USFS reports 81 experimental forests encompassing 193 million acres. These funds also support approximately 500 scientists and a total of 1,789 full time equivalent employees including technicians and staff to carry out the research. Under its Invasive Species focus, the USFS is proposing to spend $1.7 million in 2015 to research and control efforts specific to

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LETTERS TO THE EDITOR

the hardwood industry for the emerald ash borer. The USFS is also allotting almost $600,000 to research related to oak wilt and an additional $1.6 million to Sudden Oak Death in 2015. A further $9.9 million is slated for research related to controlling the impact of the gypsy moth on our forests. The typical invasive species effort includes measures to identify as well as to monitor and control the spread of the invasive species. In 2013, the USFS developed 193 tools for use by forestry professionals and land managers to assist in these processes. Moving to forest products research, the Forest Products Laboratory in Madison is one of the most published and highly regarded wood products research laboratories in the country. The proposed budget for FPL for 2015 is approximately $19 million. Over the years, FPL has conducted research in various hardwood related areas including lumber drying, multiple hardwood flooring topics, moisture issues, termite issues, engineered wood products and the list could go on. Getting even closer to the hearts of the saw millers who will be asked to fund the bulk of the Check Off program if it is passed, in March of this year, the Northern Research Station in West Virginia published a report titled “Sawing Methods for Improving Lumber Yield Recover of Out-of-Shape Hardwood Logs� (Report NRS-130). How many of us have studied and benefited from this report? We must ask ourselves whether we are getting the maximum benefit of current research efforts. We should further ask whether we are engaging with the USFS on research topics and opportunities, which we perceive to be of the greatest value to the industry. It should be noted that this quick review has focused on the efforts and expenditures of the USFS and does not include the funding of research programs conducted by industry corporate and individual members and vendors (e.g., drying research, scanning research, etc.), industry associations (e.g., RTA, NWPCA) or the many universities (e.g., North Carolina State University, Virginia Tech, Perdue University, Penn State and many others) or state level forestry programs. Some of these efforts are conducted in cooperation with the USFS with shared funding but many are independent of the USFS with independent funding sources. If the industry has developed an appetite for additional research, an alternative is to consider stronger engagement with the USFS/USDA to provide greater input on the direction of the research in a way that we think most benefits the industry. One might expect this effort to begin with specific areas for research, which the industry believes, are not getting

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an appropriate level of attention in the current research environment. Such an effort could be coordinated through one or more existing industry organizations. We should ask ourselves whether a new committee with responsibilities for maybe financially supporting forestry research from the proposed Check Off assessment could utilize funds from a new program in a way to materially move us forward in a world where hundreds of millions are already being spent annually. Respectfully, Jeffrey G. Edwards President, Edwards Wood Products, Inc.

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LETTERS TO THE EDITOR

IN ANSWER TO MR. BUCHANAN’S LETTER ON THE HARDWOOD CHECK-OFF, PRINTED JUNE 2014 First, I have been reading many letters and opinions written on the subject of the Hardwood Check-Off, and I can appreciate both sides of the discussion. Also, I have respect for all the people in the industry who have put their time and effort into this effort, either pro or con. We must look at the facts; we didn’t get into the great recession in our industry because we didn’t have a program like a Check-Off. We got into it because of government and banking programs that made the banks richer and a very liberal money lending policy by the government in the housing sector. Look all the way back to the late 90’s when our industry and others were running to China so the CEO’s could look good. We lost our very valuable furniture manufacturing markets, and all the support markets that were in place for a long time in our industry. That was when our demise started. The Hardwood Check-Off program unfairly targets a few to pay for the rest. Hardwood lumber is not milk, or cotton. It can’t be compared to these programs. Hardwood floors and furniture are not the staples in people’s lives. Hey they’re great to have and own and I’m very grateful for the families who purchase hardwood products. The fact is, people can live without them. When times are good people see the value of hardwoods and people voluntarily buy these commodities with their disposable income.

With the new industrial markets that have opened up, and I’m sure there will be more to come, we cannot exclude or ignore this growing segment in any kind of promotional program. We do need to keep our industry story out to the people, we do need education to the public on how well we manage forests, and create jobs, and create an economy in small communities. That is where our trade organizations need to step up to the plate and be proactive in these things. I don’t believe that big government is able to do the same, you say there is no government involvement in this program, I question that. Some say look at the pine Check-Off program, some say it’s working great. Well I have never seen any advertising in TV, magazines, or on any programs promoting Eastern White Pine to the public, or any programs promoting its use or forestry practices. I’m not saying they are not out there, I just haven’t run across them. In conclusion I believe the effort should continue to promote education and awareness of our industry, which as far as I’m concerned is one of the greatest out there. I have nothing but thankfulness for the career that this industry has given me. Wood is still Good. Thank you, Cliff Clune

SUBMIT A LETTER Letters to the Editor should be sent to Renee Hornsby, Director of Communications/Editor of Hardwood Matters at r.hornsby@nhla.com, by fax at 901-382-6419 or by mail to: NHLA, Attention Renee Hornsby PO Box 34518 | Memphis, TN 38184 Comments are also accepted at www.nhla.com/nhlablog The letters which appear are the opinions of the authors and do not represent the opinions of the Association.

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INSIDE NHLA

INTO EACH LIFE A LITTLE RAIN MUST FALL On Mark 27 the NHLA Inspector Training School experienced an unfortunate water leak that resulted in extensive floor damage. Fortunately, the 173rd Class graduated the very next day and NHLA was able to shut down the School to make all necessary repairs. As of July 1, the School has reopened and looks better than ever! NHLA would like to thank Tommy Maxwell of Maxwell Hardwood Flooring in Monticello, Arkansas for his generous donation of Red Oak flooring used to replace the flooring lost in the hallway. NHLA is fortunate to have an office filled with flooring, siding and ceilings donated by its many members and friends when the facility was built in 1978. These donations allow us to keep the NHLA offices a hardwood showcase at minimal expense to the membership. Come see us, the School is always open for visitors! The next class, the 175th Class, begins on September 8.

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INSIDE NHLA

NHLA AND THE INDUSTRY WELL REPRESENTED AT AHEC SE ASIA CONVENTION Executive Director Mark Barford and Chief Inspector Dana Spessert travelled to China to attend the 19th Southeast Asia Convention sponsored by the American Hardwood Export Council. The meeting was organized by John Chan, AHEC Southeast Asia Director based in Hong Kong, who once again achieved a well attended and smoothly run meeting. In fact, more than forty members of the U.S. hardwood lumber industry were in attendance along with a strong representation from the local Chinese wood buying industry. As with past AHEC conferences, there were plenty of opportunities to network but new this year AHEC scheduled a small tabletop tradeshow where North American member companies could meet with the buyers on a one-on-one basis. Many members came away with new orders and future contacts and overall felt it was very worthwhile for them to attend. “The Chief and I addressed a full room of attendees to discuss the NHLA grading Rules and to introduce the NHLA Kiln Dried Certification program,” reported, Barford. “The program, upon acceptance by the Chinese government, can replace the sometimes tedious and expensive process of obtaining a Phyto-sanitary Certificate from the USDA which is required of all shipments. I used the opportunity to remind attendees that many of the other major markets for U.S. hardwoods have accepted the NHLA certificate, and the Chinese importers will be at a competitive disadvantage until their government accepts the certificate.” The SE Asia & Greater China Convention is just one of the many promotional programs that AHEC sponsors throughout the year, and their efforts have been instrumental in the tremendous growth the hardwood industry has seen over the past 10 years. AHEC Executive Director Mike Snow has confirmed the 20th Convention will take place next June in Southern China at a date and location to be announced.

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Canada’s most passionate advocate for wood pellets, Gordon Murray, identifies the opportunities and challenges awaiting his members in a rapidly expanding global marketplace. By Tim Portz | Reprint from Biomassmagazine.com, June 28, 2014

Vast forest resources, a strong wood products industry and maritime access to both Asian and European pellet markets have Canadian producers ideally situated for strong industry growth. As the executive director of the Wood Pellet Association of Canada, Gordon Murray necessarily maintains a high degree of global visibility. His constituents’ pellets find their way into British power stations, Italian bungalows and South Korean test burns. This market momentum has carried Murray into the heart of a global dialogue about the role of wood pellets in a future with a mandate for low-carbon heat and power.

How long have you worked as executive director and how did you come to this role? I started as the executive director in 2009. I was working as a corporate finance advisor and was working on selling a sawmill. I ended up selling this sawmill to a wood pellet company that was a member of the Wood Pellet Association of Canada. [The association] asked me to come in three or four days a month to help them with some organizational things on a consulting basis and then the gentleman who was the executive director at the time, John Swan, resigned in 2009. I took over in a caretaking role and just grew into it after that.

Are there aspects of the Canadian pellet industry that are different from the pellet industry in the U.S.? There is probably more that unites us than divides us. Both the U.S. and Canadian wood pellets—despite the criticisms and misinformation of environmental NGOs (nongovernmental organizations)—are made very sustainably and great care is taken with the forest practice. From a production perspective, the new plants in the Southeast U.S. tend to be larger scale than what we’ve seen in western Canada, where our large plants are located. You’ve got plants that are 500,000 or 700,000 tons a year that are using a greater proportion of roundwood, where the industry in Canada is using a higher proportion of mill residuals, although we are increasingly using low grade roundwood. From a domestic market point of view, you’ve got a much greater population. In the northeast United States, where there is not a very large natural gas distribution network and a lot of the homes have historically relied on heating oil, that population has really enabled the wood pellet industry to make inroads. We haven’t got the same kind of population density.

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Pellet export numbers in both Canada and the United States are in a period of robust growth. What are the unique challenges for an industry during a boom?

 One thing is that the scale of the customers is so large. You take one customer offline for any reason and you’ve got all of this product sitting around. It can distort the market in a hurry. Also, the bigger the industry gets, the more it’s on people’s radar, bringing out critics. We are trying to do something that is very clean and sustainable and it is very important that all of the members of the industry act responsibly. Associations like the Wood Pellet Association of Canada, the U.S. Industrial Pellet Association and the European Industry of Pellet Suppliers have worked together in the development of the sustainability certification because we want to present an industry that is very clean and renewable and sustainable. We don’t want to become the target of NGOs that don’t know the facts or don’t care about the facts. I would say that the downside of growth is raising your profile like that. The other thing is liquidity. The bigger the industry grows, the more we have to make sure that everyone’s pellets are made to a consistent set of standards, which we’ve got now through the Initiative of Wood Pellet Buyers group of utilities and pellet producing associations. We’ve got to make sure that we’ve got consistent grades and consistent sustainability standards so that the product can be easily traded. We’ve got to come up with the kinds of instruments that other industries have had so successfully over the years. We just haven’t matured to the point where we’ve got commodities trading and futures contracts and the ability to trade and hedge.

Your members in western Canada are ideally located to serve Asian markets like Japan and South Korea, yet demand from those markets lags behind the market potential that you and many industry observers believe is there. Can you share your thoughts and observations on the emerging Asian marketplace? The Korean market is taking a while to develop. It’s been a little bit frustrating. Initially, it seemed like there were a lot of speculators out trying to make deals with everybody and most of these guys had nothing to back them up. There was a lot of activity that led to nothing and people got quite frustrated. But you know, the renewable portfolio standard system that they have in Korea is supposed to ramp up from 2 percent in 2012 to 10 percent in 2022. As the amount of renewable energy increases, and with wood pellets being a very affordable type of renewable energy, we are starting to see the demand grow. In 2012, there were test burns at a few utilities and in 2013 we started shipping some significant volume into Korea. It is a difficult market because there is one main power company, Korean Electric Power Company. They own six regional subsidiaries and each one of those is government owned. They have to work under strict tendering rules and they can’t enter into the long-term relationships that we have enjoyed in Europe. As a result, everything has developed on a spot basis in Korea. I don’t think there is any producer in North America that is willing to 14

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build a plant based on a spot market and most have long-term contracts with European utilities. The European power utilities are able to trade into the spot market, so we’ve been sending cargoes via the European utilities that end up in Korea. We’re not shipping them direct, because we just can’t get into that spot game, but the larger utilities have the liquidity to operate in that spot market. So that’s the way the Korean market has developed. I don’t think anyone expected that. The Japanese market has been a little bit different in that a couple of our larger producers have been able to sign long-term contracts with both coal power utilities as well as CHP plants. They are not huge volumes, but it is starting. Last year, the volume and price in both Korea and Japan came up some. The latest price indications from the British Columbia Ministry of International Trade say the Koreans are finally starting to be willing to pay market prices.

You identified fiber security and fiber cost as one of your top priorities for 2014. How is this a challenge for producers currently, and what kind of remedies make the most sense? That’s one area where the U.S. and Canadian industries differ. In the U.S., you have a large proportion of private land so you have an open market for fiber. In Canada 95 percent of our forests are owned by the government and they are allocated through license and tenure systems. These licenses have been issued over the years to the primary forest users like the sawmill sector or the pulp sector. We come along as a pellet industry late in the game, so we don’t have any ability to get license access to this Crown timber because it has all been allocated to the sawmills, basically. We end up having to buy the low-grade timber from the sawmills. There are so few forest companies that have vast control over huge regions of the forest that it ends up not being a free market situation. We end up being beholden to the primary forest companies that essentially get to dictate the price and terms of the fiber. If they don’t feel that we are paying enough or that it is inconvenient, they just burn it. In British Columbia, we tried to make the case to our provincial government to ban slash burning so we could use that fiber to create jobs. For whatever reason, we can’t seem to convince the government of that. So we end up with a primary forest industry that doesn’t want to cede control over lands essentially granted by the government. They are loathe to give us any kind of control over even the low-grade stuff, so it just becomes an ongoing struggle. Then our provincial government, that should be supporting the growth of bioenergy, just sits idly and watches this stuff get burned.

How does the Wood Pellet Association of Canada plan to shape the conversation around sustainability standards as they are developed? WPAC is by no means alone in this. We work hand in hand with our colleagues at USIPA and the European Industry of Pellet Suppliers. Our three organizations work very closely on sustainability, participating in the development of the Sustainable Biomass Partnership sustainability standards. W W W. N H L A .CO M


Photo Courtesy of Kuehne + Nagel

The SBP is made up of six pellet-using utilities in the U.K.—Drax, E.ON, Electrobel, RWE, Vattenfall and DONG Energy. They’ve been working on their end to develop sustainability standards, much of it in isolation without consulting us. We have a keen interest in proving that what we are doing is sustainable and we believe whole-heartedly that we need an independent, third-party system for verification. In the last few months, we’ve been meeting with the power utilities to go over the various standards and participating in pilot audits at facilities in Canada, the U.S. and Europe. All of our members have participated in this. We think that sustainability, along with the greenhouse gas benefits, are the two pillars that our industry is founded on. If our industry is ever found to not be sustainable, we won’t have an industry for very long. We’re aggressively participating in the Sustainable Biomass Partnership’s development of those standards. In addition, we’re members of the Back Biomass campaign that is headquartered in London and focused on promoting biomass sustainability in the U.K. market. We are also a part of Bridging with Biomass that is headquartered in Brussels and targeted at the European Commission, European Parliament and the NGOs in Europe. Essentially, this is all to explain the realities of how we go about managing the forests and to dispel the myths that are perpetuated by NGOs about unsustainable practices.

Coal-to-biomass conversions aren’t limited to the United Kingdom, of course. Do you expect that the coal phase-out in Ontario will begin to be implemented across other Canadian provinces? Are you optimistic that there may be more Atikokan’s in Canada’s future? The 100 percent coal phase-out is unique to Ontario. Atikokan is a pretty small plant and I think it is only going to run at 15 to 20 percent. I believe it is just a peaking plant. Nevertheless, I think there are going to be a lot of eyes on it in North America. We’re optimistic that other coal companies will be looking to that as a model and even other jurisdictions throughout North America will be looking to see what is actually possible. They’ve been cofiring for 15 years or more in Europe, but it just seems that in North America, we can’t possibly learn anything from what the Europeans do. We have to do everything ourselves here before we can actually believe that it will work. To me, that is going to be the benefit from the Atikokan facility. In the rest of Canada, the federal government has new coal emissions regulations going into effect in 2015 to reduce allowable emissions to 420 tons of CO2 per megawatt hour from an average of around 1,100 for coal. It’s a huge reduction that will apply to old and new plants. We have quite an old fleet of coal plants in Canada and we’ve actually done a study with the Canadian Clean Power Coalition. We looked at co-firing about a year ago—at the economics, the sourcing of biomass and what it would take to do the co-firing. I concluded that the coal power industry is very, very conservative

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and unless our government really pushes them, they won’t make the leap to co-firing. We thought there would be more action by now, given that the regulation was supposed to come into effect in 2015, so I don’t know if it’s just a staring contest between the coal companies and the government or what. The regulatory environment is there for us to make the switch, but the coal power companies haven’t made the leap yet, other than Ontario Power Generation.

In recent presentations, you’ve identified the home heating market as a significant opportunity for Canadian pellet producers. What about the home heating market most excites you and your membership? It’s funny how it falls under a lot of people’s radar, but if you look at Europe right now, the home heating market at 10 million tons exceeds the power market at 9 million tons. But it’s made up of thousands of small customers each buying 4 or 5 tons a year, instead of a single power utility that might buy a million tons a year. There is the opportunity for diversity. The thing about Canada, although we have huge natural gas resources, our gas distribution only covers about 45 percent of Canadian homes. The alternatives like heating oil or electricity or propane are all double the cost of wood pellets. We haven’t done a good enough job as an industry to educate the consumers about the new modern types of wood pellet appliances there are. If we have to build a whole market on carrying bags and feeding wood stoves, I don’t think we are ever going to become mainstream. But look at Europe and the modern types of boiler systems they have. They only

have to fi ll a bunker up once a year, there is almost no maintenance, and people can operate their boilers with smart phones. The whole thing is as convenient and automated as gas. That’s the kind of education that we need to do. When you look at in the northeast U.S., Maine Energy Systems is one company I like to point out that has been a real pioneer there. They’ve brought in the European OkoFen boilers and created a huge bulk delivery industry in the Northeast. That’s what we’ve got to get to in Canada. We’ve started to some extent in Quebec with ResoMass that’s got the Quebec distributorship for the OkoFen boilers, but we’ve just got to educate the homeowners, commercial businesses and institutions about the benefits, the convenience and the low cost of wood pellets. We’ve got such a cold country, we could sell millions and millions of tons if we do our homework properly.

Home heating markets overseas continue to look very strong in places like the United Kingdom and Italy. Are you optimistic about the recently launched domestic Renewable Heat Incentive in the United Kingdom? I guess I would have to say I’m cautiously optimistic because the commercial RHI has been in place for some time now and it’s been a bit slow. I know the U.K.-based producers have been excited waiting for the domestic RHI. It’s only been a couple of weeks now, and it’s hard to see anything significant take place yet. I guess my optimism would be that all those U.K. producers that have been exporting into other markets like Italy will keep their product at home now. That will exacerbate the demand in the other heat markets around

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Europe, creating a vacuum effect that will enable us to sell more product. I think there is a pretty robust domestic wood pellet market in the U.K. that I believe is probably capable of being self-sufficient and the imports from North America will probably continue to go into the power sector. The net effect will be to reduce the volume from U.K. producers in other European heat markets and that will just create more opportunities for others.

In the Southeast United States, ports are investing significant capital to develop infrastructure that will allow them to effectively store and load pellets for transAtlantic shipment. What is the status of pellet infrastructure at Canadian ports?

in Quebec and Ontario to fill out that volume. In addition to that, we’ve got a number of container ports that are shipping bagged pellets, particularly to Italy. Containers are shipping out of Montreal and Vancouver as well.

What is meant by the Canadianization of ISO pellet quality standards? Even though it is an international standard, to make sure it is a national standard and accepted by all of the provinces, we have to go through the bureaucratic process of ratifying it. We’re not trying to change it or invent something new at all. We, along with everyone else accept ISO. Every country, U.S. included, has its own standards association. We have to run it through a mirror process in Canada and pick through the standards and make sure we are happy with it and then it becomes the CSA ISO (Canadian Standards Association – ISO). In Europe it’s called CEN ISO, so they’ve done the same thing. ■

It’s probably not to the scale of the ports in the US. We’ve got deep water ports in Canada, so we don’t have to get into any of the dredging you might see in U.S. ports. We’ve added a new terminal in Prince Rupert that was built by Pinnacle Renewable Energy. They had their grand opening in May. They have been shipping out of there for a few months now and that will reach both Europe and Asia. So we’ve got two pretty solid West Coast facilities now. In eastern Canada, it’s the opposite of what you would expect, in that our exports to Europe predominantly move through our western ports. We have excellent facilities in Halifax and Beldoun where we are shipping pellets from now. In the case of Halifax, it is a converted grain terminal and in Beldoun, New Brunswick, it was purpose-built flat storage. Both have more capacity than is being utilized right now. In Quebec City, Quebec Stevedoring has installed two big storage domes. Rentech is on track with the two pellet plants they are building in Ontario. I expect to see product being shipped out of Quebec City in the third quarter of 2014. I think the capacity at Quebec City is around 1 million tons per year and I know that they will be looking to bring in other producers W W W. N H L A .CO M

Millwide. Worldwide.

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INSURANCE CORNER

KEY AREAS OF PREVENTING LOSSES BEFORE THEY OCCUR By Kevin Mershimer, Regional Manager, Lumbermen’s Underwriting Alliance While insurance is designed to put you back to the same place where you were before the loss, you will never recover everything and there is always the deductible and the potential for the loss of customers. While we may not know where the next potential loss may hit, we do know that there exist certain risks that can be managed through sound loss prevention strategies. It makes sense to be aware of these potential hazards so you can work towards preventing a loss, which could impact you financially. In this issue of the Insurance Corner, we identify leading causes of loss along with prevention steps to address each one. 1. Hot works include any spark or heat producing work performed within or on a building such as welding or cutting; this includes outside contractors doing soldering or roof work. Developing a program and having the owner verify that the safety conditions are appropriate is the key. Many jobs can be done outside or with a non-spark producing tool such as a sawzall. LUA provides training, programs and permits for its customers, to be incorporated within a system of checks and balances. Many hot works losses are the result of skipping a critical safety step. This is the number one cause of loss.

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2. Electrical losses are preventable. With the advent of thermographics and a self-inspection program, the chances of loss in this category can be greatly diminished. If you would like an electrical inspection checklist; contact your local LUA representative or e-mail me at the address below. 3. Mobile equipment losses are usually the result of a poor maintenance schedule and infrequent cleaning and removal of debris in the engine compartment. Having a schedule for pressure washing with general maintenance and inspections will greatly reduce the chances of a mobile equipment loss. Regular attention to the equipment will extend the life of the unit with less downtime and associated repairs. Another smart practice is to park units away from each other overnight to lessen the chances of a fire spreading to multiple units. 4. Housekeeping is the key to whether you have a total loss or a partial loss. With an uptick in the economy, most attention has been placed on production. Large accumulations of dust on the overhead beams and sidewalls can spread fire across a mill in a matter of minutes. Keeping the fuel load to a minimum will enhance a sprinkler systems ability to control a fire and or improve the fire department’s ability to save the structure.

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INSURANCE CORNER

5. Open burning and wood stoves continue to have a dramatic negative effect on the industry. Open burning should be done well over 500 feet from any buildings or open stock in the yard. It should be contained within a pit and burn only on calm days. If you have a wood burning stove, ask your loss prevention representative what concerns exists with it and how you can verify that it is properly installed and operated. 6. Early detection is the key to saving a building. If a sprinkler system is not present or it lacks a heat detection system, the chances of saving the building are very low and your insurance rates reflect that appropriately. Installing early detection systems will not only increase the chances of saving the building, but may also avoid a shutdown and hence a retention of customers. 7. Preparing for a fire is just as important as having early detection. If the fire department is well acquainted with the building layout and any hazards within, they are more inclined to make an interior attack. If there is a pole disconnect for the power, they don’t necessarily have to wait twenty minutes for the power company before placing the wet stuff on the red stuff. A well-devised emergency response

plan will make all the difference in saving the operation. For help creating one, contact your LUA loss prevention representative or your local fire department. 8. Discuss operational changes with your carrier/ agent before you begin. Some operations are more difficult to insure than others. The introduction of increased hazards and the impact on insurance costs can be minimized by consulting in advance to assure the best outcome. After several tough years in the forest products industry, things are beginning to move in a positive direction and mills are opening, adding locations and second shifts. With this, the need to be diligent in hot works and other loss prevention strategies is imperative to enjoy the spoils of the market. If you would like to know how your mill rates are affected by the conditions at your operation, feel free to contact us. Kevin Mershimer can be reached by email at: Kevin.mershimer@ins-lua.com *Lumbermen’s Underwriting Alliance is now accessible through your current insurance agent. Have your agent call us for a quote.

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MEMBER TO MEMBER

TAKING THE MYSTERY OUT OF LIFE INSURANCE By Robert D. Case, CLU – TJT Consulting When the words “Life Insurance” are brought up a lot of emotions are evoked, and frequently negative. We read and hear from financial experts suggesting that there is only one way to purchase life insurance, that being term insurance, while investing typically in a retirement plan with stock market investments. This may work for the average American employee who never owns a business or develops a substantial net worth but it may not be the best long-term solution for many who do. For successful business owners there are many needs that frequently require different solutions. One important part of a well-designed business plan is an insurance funded buy-sell agreement; the other is a tax efficient estate plan. Providing the necessary funds no matter when they are needed. From

your fi rst payment the full insurance amount is available to fund the unexpected. With the evolution of our federal and state estate tax rules over the past few years a critical part of every insurance program is regular review. Incorrect ownership and the insurance designed to solve a problem will become part of the problem. Insurance products continue to evolve in pricing and design. There is a wide spectrum of coverage options and product designs. The key is to establish your needs, goals, and available cash flow both personally and in your business to develop the best strategy. Life insurance provides income tax deferred cash growth; income tax favored distributions, as well as an income tax (and properly designed) estate tax free benefit. With better profits in the lumber industry and corresponding increased cash flow there has been a greater interest in policies with greater cash accumulation. Although the primary purpose of insurance is protection against the unexpected, there are several ways to create substantial tax favored wealth. One option is a policy that will fund a special supplemental retirement plan with features like a 401k. Offering stock and bond fund investment options, but not having any funding or participation requirements, like a traditional retirement or 401k plan. Ultimately you can recover all costs and payments through the cash values and insurance proceeds. Another option with guarantees of cash values and premiums would utilize a whole life insurance policy, which includes an option to add additional funds to enhance values and provide an attractive return. Beyond whole life the limited pay policies accumulate cash value more quickly and guarantee a shorter premium payment period. These plans also provide a positive impact on the corporate balance sheet. You can also use these funds to structure shareholder living buyouts or for other financial needs of the business. One serious issue that may require review is adequate funding of some older existing policies. The ones at risk are nonguaranteed universal life plans originally purchased in the (Continued on page 22)

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TJT CONSULTING!

Harry Jacobs

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David Jacobs

Business Development

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Thank you very much to the NHLA members having entrusted their succession plan to TJT Consulting.

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Personal & Retirement Planning

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MEMBER TO MEMBER

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(Continued from page 20) 80’s. They were adequately funded at the time when CD’s were offering double-digit returns. Now based on current returns they may be woefully underfunded which may cause a lapse and termination of the policy in a very short and unexpected time frame. After a review the only options that may be available are to substantially increase the premiums or dramatically reduce the coverage. One answer may be a policy change to a guaranteed premium survivorship life policy to provide liquidity for estate planning purposes. Due to its “second–to-die” structure it may minimize the increases in premium and provide the needed coverage. When there is a need for a substantial amount of coverage for the incoming generation a significant portion of that need may be covered with level premium term insurance. It is available with varying rate guarantee periods, it is temporary in nature and builds no cash surrender values, but has the lowest initial cost. With term insurance, the problem is that after that level period the premiums increase substantially. The good news, they have an option allowing conversion to a level premium permanent plan on a guaranteed non-medical basis. Another low cost option is guaranteed universal life offering the lowest possible premium for a guarantee of lifetime protection, but very little cash value. Looking at an alternative with a comparatively low level premium you can design a combination plan with whole life insurance, a term insurance rider and accumulating dividends. This design provides additional guaranteed cash values, potential dividends, and an appreciating asset on the books of the business with funds available should a financial need arise. One common theme among all of these designs is the importance of regular review and auditing of the performance of the policies as well as the appropriateness of the coverage and the ownership. Depending upon the type of plan the fluctuating investments can impact your policy in such a way that it is no longer performing as initially designed. Changes and improvements in policy cost structure have also occurred and make it important to review and compare as well. What is most important is the right plan for the right circumstances to fit your needs and budget. Then plan on a regular review to take the mystery out of your life insurance program.

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RULES CORNER

KILN DRIED THICKNESS – WHEN IS ENOUGH…ENOUGH? By Dana Spessert, Chief Inspector A question was asked of me on a recent visit to China about the thickness of Kiln Dried lumber.

from improving the grade or appearance of the lumber at time of or prior to shipment.”

Question: “What is the minimum thickness after kiln drying?”

Even though the inspector must inspect the lumber as they find it, if they are shipping they should try to upgrade where possible to obtain the most value of the lumber.

To answer the question I will refer to the NHLA Rules for the Measurement & Inspection of Hardwood and Cypress (2011 v 1.1); page 56 under the heading -Standard Kiln Dried Rule. “Kiln dried lumber will be graded and measured as such, the grading rules for air dried lumber to be applied in all respects, unless otherwise specified. Rough kiln dried lumber specified 3/8" to 1-3/4" thick may be 1/16" scant of the nominal thickness; 2" and thicker may be 1/8" scant and the 10% of scant quartered lumber admitted by Paragraph 36, may be 3/32" scant on one edge in 1" to 1-1/2" lumber and 3/16" on one edge in 2" and thicker. The minimum widths mentioned in all grades may be 1/4" scant in width and the 10% admitted by Paragraph 10 may be 1/2" scant in width. In other respects the rules for grading air dried lumber shall apply.” Answer: The answer to the question depends upon the specified thickness, which is listed above, and that all pieces in a shipment can be scant in thickness the allowable amount. For example: If the specified thickness is 4/4 than all pieces can be 15/16” thick. The reason for the allowances of thickness and width is to help compensate for the shrinkage that occurs during the drying process. On another note, as lumber prices continue to rise and the differences between the value of the grades continues to spread I would like to remind everyone of the upgrading potential that a lot of lumber may have. The Rules specifically state in the 2011 version of the NHLA Rules Book on page 4, paragraph 4: “Lumber shall be inspected and measured as the inspector finds it, of full length, width and thickness. No allowance shall be made for the purpose of raising the grade, except that in rough stock, wane, and other defects which can be removed by surfacing to standard rough thickness shall not be considered. Nothing herein shall be construed as prohibiting the shipper

This process applies for all inspectors, mill managers and owners – Remember that you put money in the bank and not board footage! Meaning that just because you lose a board foot or two during the upgrading process, if the value is more than that is the right decision. I hope that this helps to answer questions anyone may have. Specific questions regarding the NHLA hardwood grading Rules should be directed to: Chief Inspector Dana Spessert 901-399-7551 | d.spessert@nhla.com

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LEGISLATIVE LOG

IMPACTS OF THE NORTHERN LONG EARED BAT ON THE U.S. FOREST PRODUCTS INDUSTRY By Dana Cole, Executive Director, Hardwood Federation There is a very real threat living in most of the contiguous United States that is poised to drive – and pardon our puns – the hardwood industry “batty”. Th is 4 oz. issue is quickly becoming one that Photo © Phil Swanson could have major implications to the entire forest products industry – the Northern Long Eared Bat. Th is small cave dwelling mammal is being decimated due to the fast spreading and deadly “white nose syndrome” and the U.S. Department of the Interior and U.S. Fish and Wildlife Service are in the final stages of designating the bat as either “threatened” or “endangered”. Depending on which way the department rules, the impacts on the forest products industry could be tremendous. If listed as Endangered; the bat, which is called “Northern” but resides in an unprecedented 39 states, would shut down timber harvest operations within 5 miles of known bat dwellings between the months of April and October, cutting off access to the fiber needed throughout the value chain; and we are not alone. The same halt in production would occur for other industries as well, including oil and gas production, mining, wind farming, and others. The Hardwood Federation is an actively engaged member of a coalition of like minded industries and businesses seeking to develop more reasonable and economically responsible guidelines offering science-based protections to the bat populations without harming our industries. Our primary concern is that the Fish and Wildlife Service will focus efforts to slow the bat’s population decline on human activities, including timber harvest, which even they recognize do not have an appreciable effect on the species population levels. We are also concerned that Fish and Wildlife is not considering the best and most recent data as they contemplate this very

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important decision. And finally, we must be certain that every effort is being made to address and cure the disease, which is really the best answer for our industry and the bat population. On June 24 a 6 month stay on this decision was officially granted and will in all likelihood open up another 60-day comment period before the final decision is made. This is but a small reprieve and we will have to quickly move forward in a coordinated effort to educate decision makers and convince them to take the most flexible option available. The Hardwood Federation has been working hard to brief individual Congressional offices and working with them to develop letters to the Department of the Interior seeking a more pragmatic approach to the impacts of white nose syndrome on the bat populations. To date, Congressional delegations from more than 10 states have sent letters with more in the works. There has also been support from the Natural Resources directors in the Great Lakes region in the form of a letter to Fish and Wildlife expressing disappointment in the lack of communication and consultation with state officials on such a potentially devastating issue. In addition to the letters sent to the Administration, the Hardwood Federation participated in a Congressional briefing on Thursday June 12 regarding the proposed listing of the NLEB. Ray Moistner, Executive Director of the Indiana Hardwood Lumberman’s Association represented the Federation and drew upon his experiences with the Indiana Bat to illustrate the potential impacts of poorly designed protective guidelines. The briefing was a great success as over 60 individuals from congressional offices and committees attended. The Hardwood Federation will continue to engage Congressional offices and the Administration on the issue and it will likely be a main focus at the Federation’s Fall Fly-In September 8-10. Please keep your eyes open for opportunities to weigh in on this issue, be it a request for letters from the Federation or the chance to personally discuss your concerns with Members of Congress during their summer recess. Education and awareness will be key to a positive outcome to this very serious issue.

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FOUNDATION FOCUS

TRUTH ABOUT TREES VIDEO SELECTED AS A 35TH ANNUAL TELLY AWARD WINNER

The Hardwood Forest Foundation’s video version of Truth About Trees (featuring Spokesperson Tommy MacDonald) has been named a Bronze winner in the 35th Annual Telly Awards. With nearly 12,000 entries from all 50 states and numerous countries, this is truly an honor. Truth About Trees was entered in the Non-Broadcast Productions – Education (for academic use) category. Produced in conjunction with Memphis-based Running Pony Productions, this project is the electronic version of the Foundation’s flagship educational program and teaches children the benefits of properly harvesting forests as a means of keeping them healthy and obtaining all of the necessary items we use in our everyday lives. The Telly Awards was founded in 1979 and is the premier award honoring outstanding local, regional, and cable TV commercials and programs, the finest video and film productions, and online commercials, video and films. Winners represent the best work of the most respected advertising agencies, production companies, television stations, cable operators and corporate video departments in the world. A prestigious judging panel of over 500 accomplished industry professionals, each a past winner of a Silver Telly and a member of The Silver Telly Council, judged the competition, upholding the historical standard of excellence that Telly represents. The

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Silver Council evaluated entries to recognize distinction in creative work – entries do not compete against each other – rather entries are judged against a high standard of merit. “The Telly Awards has a mission to honor the very best in film and video. Truth About Trees illustrates creativity, skill and dedication to the craft and serves as a testament to great film and video production,” said Linda Day, Executive Director of the Telly Awards. Foundation Spokesperson Tommy MacDonald has become a fixture within the Telly Awards community, having won five as a result of his work with his television woodworking show, including one Silver Telly. “To receive a Telly Award is truly an honor and I have great pride in the work we did with Truth About Trees,” MacDonald said. “The overwhelming positive response we’ve received from educational outlets in the world of academia, the forest products industry and now the broadcasting industry has been incredible. To be recognized on this level validates the production in the world of media,” MacDonald added. To learn more about the Hardwood Forest Foundation visit www.hardwoodforest.org.

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JOB BOARD

Lumber Inspector

Lumber Inspector

Ohio International Lumber needs a Lumber Grader, salary based on experience. Please send resume by email to: mprice_oil@frontier.com

Kuhns Bros. Lumber Company, Inc. has immediate openings for two Lumber Inspectors to grade green lumber according to species, grade, and dimension by using NHLA lumber grading Rules.

Ohio International Lumber 423 Hopewell Road | Waverly, OH 45690 740-941-1300 | 740-94 1-1333 www.ohiointernationallumber.com

High School Diploma or GED as well as NHLA lumber grading training is required. First shift and second shift opportunities are available. Full benefits package is offered along with a competitive salary. To apply please email: lorettahartley@kuhnslumber.com or call 570-568-9561.

Lumber Inspector

Kuhns Bros. Lumber Company, Inc. 434 Swartz Road | Lewisburg, PA 17837 570-568-14 12 | 570-568-0007 (fax) www.kuhnslumber.com

Gutchess Hardwoods offers competitive pay and a superior benefits package. If you share our vision of excellence, then we invite you to join our winning team! Gutchess Hardwoods has an opening for a hardwood lumber inspector to inspect incoming and outgoing lumber according to NHLA Rules at the assigned grading deck and to saw list requirements. The position visually inspects lumber according to species, grade, and dimension and uses NHLA lumber grading Rules to inspect lumber. Candidates must possess High School diploma or higher and experience providing skills suitable for this position, with NHLA grading Rules training. Competitive pay plus employee stock ownership; life, health & dental insurance; profit sharing; and 401K deposit matching. To apply email resume to: jlortiz@gutchess.com Gutchess Hardwoods 185 Devereux Road | Latrobe, PA 15650 724-537-6447 | 607-428-8097 (fax) www.gutchess.com

Lumber Inspector American Hardwood Industries, a leading producer of hardwood products and hardwood flooring located in Waynesboro, VA is seeking an experienced Hardwood Lumber Grader. The qualified candidate will have a minimum of 3 years experience in applying NHLA grading Rules in a production environment. AHI offers a full benefit package: Health, Dental, Vision, Life, LTD, STD, 401k, paid vacation, and paid holidays. Wage commensurate with experience. Qualified candidates may submit a resume by: e-mail to dmegert@ahiwood.com, fax to 540-946-91 70, or submit an application or resume at 567 N. Charlotte Ave. Waynesboro, VA 22980. American Hardwood Industries 567 N. Charlotte Ave. | Waynesboro, VA 22980 540-946-9150 | 540-946-9170 (fax) www.ahwood.com

Lumber Inspector Associated Hardwoods is looking for a qualified Hardwood Lumber Inspector at its new sawmill in Gaffney, South Carolina. Candidates must have experience in applying NHLA grading Rules. Prior job experience not required with NHLA certification. For additional information please contact Mark Tucker at 828-261-5199 Competitive pay plus benefits, salary based on qualifications. Submit resume by email to marktucker@associatedhardwoods.com or by fax 828-396-6202 Associated Hardwoods 470 Gaffney Ferry Road | Gaffney, SC 29340 828-396-3321 | 828 -396-6202 www.associatedhardwoods.com

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Sawyer Gutchess Lumber is seeking a sawyer to saws logs for maximum value recovery by following daily cutting orders and achieving proper levels of yield. The position is accountable for proper operation of the carriage, feed works and log turner; checks lumber thickness at saw; conduct a daily physical inspection of all equipment. Two or more years of experience is required. Salary is competitive and perks include: employee stock ownership; life, health & dental insurance; profit sharing; and 401K deposit matching. To apply send resume to: jlortiz@gutchess.com Gutchess Lumber 10699 Maple Grove Road | Freedom, NY 14065 607-428-8097 (fax) www.gutchess.com

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JOB BOARD

Sawyer Kuhns Bros. Lumber Company, Inc. is seeking a Sawyer to saw logs according to daily cutting orders and achieving the highest attainable yield. Must be able to operate the carriage, feed works and log turner. A pre-operational checklist must be completed each day to ensure proper working order and safety of all the equipment. Quality and safety are our vital goals. Candidates should have two years of experience. Competitive salary and full benefits package is offered. To apply send resume to: lorettahartley@kuhnslumber.com or 570-568-9561. Kuhns Bros. Lumber Company, Inc. 434 Swartz Road | Lewisburg, PA 17837 570-568-14 12 | 570-568-0007 (fax) www.kuhnslumber.com

This position requires Bachelor’s Degree from an accredited 4-year college or university in Business Administration and a minimum of 6-8 years’ experience in kiln dried hardwood/softwood lumber, millwork and value added hardwood/softwood products. Must be proficient in MS Office software. Must have excellent oral and written communication skills. Must have well developed presentation skills, excellent customer relation skills, record keeping and data management, interpersonal relations, leadership, and budget preparation. Must maintain a valid state of Wisconsin Driver’s License as specified by MTE insurance standards. The application process: Incomplete applications will be screened out. (1.) Complete application (2.) Copy of transcripts (3.) Copy of Tribal enrollment and/or proof of enrolled spouse (4.) Copy of valid driver’s license (5.) Honorable or general military discharge paperwork (6.) Menominee language abilities Salary range is $54,000-$65,000 and company benefits included.

General Manager Sales & Marketing APP Timber is the leading importer of timber to Asia. The GM Sales & Marketing is responsible for the development and performance of our group’s sales and marketing activities in Asia. It includes identifying and evaluating new customers, market conditions and developing sales objectives & strategies with the objective to increase our market share and sale margins. This includes implementation reports for all countries with respect of customer visits, weekly and monthly reports, warehouse sales reports etc. The position requires frequent travels to all our sales markets. The successful candidate must have minimum 10 years marketing experience in the Asian woodworking industry with a good management background. Good computer knowledge is required to make use of the latest web marketing tools. A very good command of English and spoken Mandarin is an advantage but not a must. The GM will report directly to the Managing Director.

Submit Applications to: Twila Peters, Human Resource Director, Menominee Tribal Enterprises, PO Box 10, Neopit, WI 54150, or email to: twilap@mtewood.com or fax to: 715-756-2319 Menominee Tribal Enterprises PO Box 10 N3522 Cottage Ave. | Neopit, WI 54150 715-756-231 1 | 715-756-2319 (fax) www.mtewood.com * To view current job postings or to post a job, visit www.nhla.com/jobboard.

Qualified candidates will have a minimum 10 years of experience. Send resume by email to hermens@apptimber.com APP Timber No. 21, Jalan Utarid U5 | 11 Mah Sing Industrial Park 40150 Malaysia Mah Sing Industrial Park 40150 Shah Alam Selangor Darul Ehsan, Malaysia 40150 | +60378474716 phone Sales Manager Menominee Tribal Enterprises is committed to excellence in the sustainable management of our forest, and the manufacturing of our lumber and forest products providing a consistently superior product while serving the needs of our forest, employees, wood products customers, tribal community, and future generations. MTE is seeking a qualified Sales Manager. This position has the overall responsibility for managing the sales and marketing of kiln dried hardwood and softwood lumber, green hardwood and softwood lumber, value added hardwood and softwood products and related lumber/forest products.

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CALENDAR

WH ERE IN THE WOR LD IS N H LA?

EDUCATION & TRAIN I NG

IWF 2014

3-Day Lumber Grading Short Course

Atlanta, GA | August 20–23 Participating: John Hester, Director of Membership

Virginia Forest Products Association Annual Convention Hot Springs, VA | September 5–7 Speaking: Mark Barford, CAE, Executive Director

Hardwood Federation 2014 Fall Fly-in

Washington, DC | September 8–10 Participating: Mark Barford, CAE, Executive Director

2014 NHLA Annual Convention & Exhibit Showcase Las Vegas, NV | October 8–10 Red Rock Casino, Resort & Spa

NHLA Board Meeting

Memphis, TN | November 16–18 The Peabody Hotel

Sherwood, OR | August 5–7 | Hardwood Industries Instructor: Jack English, NHLA National Inspector Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com

Flex-Day Lumber Grading Short Course

Memphis, TN | August 18–22 | NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com

Basic Hardwood Lumber Drying Short Course

Memphis, TN | August 25–27 | NHLA Headquarters Instructor: Dr. Adam Taylor, University of Tennessee – Knoxville Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com

4-Day Lumber Grading Short Course

Millersburg, OH | August 25–28 | Yoder Lumber Instructor: Barry Kibbey, NHLA National Inspector Contact: Gayla Fleming | 614-497-9580

1 75th Class NHLA Inspector Training School

Memphis, TN | September 3 – November 21 | NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com

4/5 Day Lumber Grading Short Course

Elkins, WV | September 8–12 | West Virginia Wood Tech Center Instructor: Barry Kibbey, NHLA National Inspector Contact: Matt Wyatt | 304-637-7500 | matt@wvwoodtech.com

Flex-Day Lumber Grading Short Course

Indianapolis, IN | November 3–7 | Wood Mizer Products, Inc. Instructor: Barry Kibbey, NHLA National Inspector Contact: Denice Helmbrecht | 31 7-875-3660

1 75th Class Graduation NHLA Inspector Training School Memphis, TN | November 21 | NHLA Headquarters 8am Open House | 9am Graduation Ceremony

Visit www.nhla.com/calendar for more updates.

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