June 2021 Hardwood Matters by National Hardwood Lumber Association

TH E VOIC E O F THE HARDWOOD IN DUSTRY

H A R D W O O D M AT T E R S June 2021

CYBERSECURITY Best Practices for SMBs pl us THE BIDEN AGENDA 2023 RULES CHANGE PROPOSALS

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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CONTENTS June 2021 • Issue 223

WHAT'S INSIDE feature 12 Cybersecurity Best Practices for SMBs by Scott Raba

departments 7

ONLINE TOP POST OF THE MONTH at facebook.com/NHLAOfficial IHLA has kicked off and we're waiting for you in the exhibit hall! Come by booths 309/311 and let's chat. Chief Inspector Dana Spessert is on the scene!

Inside NHLA

8 Legislative Log The Biden Agenda - Goals,

8 16

Costs and Challenges by Dana Cole

10 Member Spotlight JoeScan 16 Rules Corner 2023 Rules Change Proposals

by Dana Spessert

reader services 4 6 20 22

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President’s Message CEO’s Message Educational Calendar Job Board

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

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.

MISSION LEADERS

Jeff Wirkkala Hardwood Industries, Inc. President

Bucky Pescaglia Missouri-Pacific Lumber Co., Inc. Unique Services

Jon Syre Cascade Hardwood, LLC Vice President

Ray White Harold White Lumber Inc. Rules

Darwin Murray McClain Forest Products Past President 2018-2020

Joe Pryor Oaks Unlimited Industry Advocacy & Promotion

NHLA STAFF Amanda Boutwell Marketing and Communications Manager Lorna D. Christie CEO

ADVERTISER INDEX IFC DMSi

TMX Shipping Co.

Tropical Forest Products

King City

EXECUTIVE COMMITTEE

IBC Pike Lumber Company, Inc. 9 USNR

For advertising contact: John Hester, Director of Membership and Business Development at j.hester@nhla.com or 901-399-7558 or Vicky Simms, Membership Development Manager at v.simms@nhla.com or 901-399-7557

COMMITTEE CHAIRS

Julia Ganey Member Relations Manager

Burt Craig Matson Lumber Company Membership

John Hester Director of Membership and Business Development Renee Hornsby Director of Marketing/ Communications Jens Lodholm Data Administration Specialist Carol McElya Inspector Training School Administrator

Rob Cabral Upper Canada Forest Products, Ltd. Promotion & Advocacy Dennis Mann Baillie Lumber Co. Convention Scott Cummings Cummings Lumber Company, Inc. Inspection Services

Roman Matyushchenko ITS Instructor and Associate Dean of Education

Bruce Horner Abenaki Timber Corp. ITS/Continuing Education

Vicky Quiñones Simms Membership Development Manager

George Swaner Swaner Hardwood Communications & Marketing

Dana Spessert Chief Inspector

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Stephanie VanDystadt DV Hardwoods, Inc. Membership & Networking

Desirée Freeman Controller

Melissa Ellis Smith Graphic Designer

Rich Solano Pike Lumber Company, Inc. Structure

Joe Snyder Fitzpatrick & Weller, Inc. Rules

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EARLY BIRD SAVINGS Registration savings ends June 12. Don't miss this great opportunity. REGISTER TODAY! www.nhla.com Join us in West Palm Beach, Florida: September 22-24, 2021 for three days of networking and a great lineup of speakers and educational sessions Opening Session Keynote Speaker, STEVE ROBINSON, former Executive Vice-President and Chief Marketing Officer of Chick-fil-A Inc. General Session Keynote Speaker, DAN NORTH, Chief Economist for North America at Euler Hermes Educational Session Speakers BOB GRAHAM, CEO of Breakthrough Solutions Uncovering the Innovation Hidden in Your Company DR. HENRY QUESADA, Associate Professor Department of Sustainable Biomaterials Virginia Tech New Markets for Hardwood MIKE SNOW, Executive Director of AHEC The New Normal? Hardwood Exports in a Changed World SCOTT RABA, Co-Founder and Chief Technology Officer of MindSpout LLC Check for Knots: Learn How Not to Be A Cybersecurity Victim

PRESIDENT’S MESSAGE

NHLA BOARD MEETING RECAP

he NHLA Board of Managers held its spring meeting in West Palm Beach, Florida, from April 25 to 27. We had about two-thirds of our board members attending in person, and I can tell you that it felt incredible to see everyone face to face. It was great to be in Florida and in a state that is intensely working to open businesses safely.

The remainder of the Board attended virtually. Kudos to our virtual attendees. It can be hard to stay focused while attending a virtual event. Thanks to the commitment and engagement of all our attendees, the discussions were focused and allowed the Board to make important decisions on behalf of our members. We addressed the business of the Association. I will summarize the main points of the discussion and the decisions we made. FINANCES – We had a solid first quarter with revenue and expenses in line with our budget. TALLY TASK FORCE RECOMMENDATION – The Task Force brought to the Board a recommendation to update the Sales Code with language that emphasizes that the intent of the NHLA Rules is to ship all the footage, and each board should be on-grade. NHLA DUES TASK FORCE – The Task Force is exploring options to update the NHLA dues structure. The Task Force and Membership Committee are still in the research stage. PPP FUND USAGE STRATEGY – We agreed that we should delay deciding about the use of the PPP funds until we know the results of our Annual Convention. NEW BUDGETING CONCEPT – We agreed for our 2022 budget, we would budget to spend less than 100% of our revenue. A target of 97.5% was recommended. SENIOR STAFF PRESENTATIONS – The senior staff made their presentations for their respective areas of expertise. Each presented solid plans designed to execute our strategic plan and produce positive results for the Association. STRATEGIC PLAN REVIEW – We discussed if it was time to have a strategic plan review. The Board felt our staff is executing the current strategic plan, albeit a bit delayed due to the Tariff issues and Covid-19. We agreed to bring this back for discussion in 2022. COLA CLARIFICATION – In 2007, the Board voted to have a cost-of-living increase added to our dues each year based on the CPI. Currently, the budget is presented without the COLA, and the Board of Managers votes to have an increase or not. The Board unanimously voted to change our standard operating procedures (SOP) to present the budget with the COLA in the budget and then let the Board decide to remove the increase or not.

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LEADERSHIP AWARD – The Board had previously approved a bi-annual Women’s leadership award. After input from our female board members, it was unanimously voted not to limit the award to a leadership award for just women. We will present an award this fall to a deserving person from our membership. NHLA FACILITIES IN MEMPHIS – Lorna presented photos of issues we have with our facilities in Memphis. We decided to form a task force to develop a plan to bring the facilities back to an acceptable state. REAL AMERICAN HARDWOOD COALITION – The Promotion Committee presented a motion to fund the RAHC with 5% of our annual dues or a minimum of $50,000 annually. This will be a budgeted item in 2022 instead of using our reserves to fund the commitment. The Board voted unanimously to approve the motion. NHLA RUSTIC GRADE – We had a passionate discussion on whether we should or should not have standard rustic grade definitions in the NHLA Rules Book. Good points were made on both sides of the issue. A prudent course of action would be to have the Rules Committee document what they think the definition of a “rustic” grade would be and bring that back to the Board for discussion in the fall. Those are the highlights of what we accomplished. Most of all, we enjoyed the camaraderie and networking that happened at the meeting. We have a fantastic Board of Managers and NHLA staff. We are a cohesive, fun group. Finally, I encourage each of you to get vaccinated and join the fun at the NHLA Annual Convention in September. I guarantee the experience will be worth your time. If you want to stay in the convention hotel, be sure to register early. We have rooms blocked for both the Hilton and the Marriott. The Hilton only has enough rooms for about 50% of our attendees. The Marriott is just across the street from the convention center. It is also a fantastic hotel and will provide those who stay there with a great experience. In closing, let me give you a takeaway to think about; bad things happen in our lives and in the lives of those we love. I mentioned to you in an earlier article that I have many people I know and love who have cancer. My wife’s brother was just diagnosed with cancer and has started chemotherapy. I am not sure how I would handle such a diagnosis. To watch him choose to make the best of a bad situation is so inspiring. He is a light in a storm to me. Most of us have nothing like cancer in our lives, yet we let trivial things affect us negatively. Think about making the choice to be an inspiration to those around us. Best wishes for your continued health and success. May God bless you, your families, and your business in 2021.

Jeff Wirkkala, NHLA President | Hardwood Industries, Inc. W W W. N H L A .C O M

CEO'S MESSAGE

A Fond Farewell

t’s never easy to say goodbye, especially when you work for an industry that helped build America and even saved it once or twice during a couple of World Wars, conquered recessions, and whatever else that might have been thrown in our path.

For the past five years, I have had the extraordinary honor of working with the National Hardwood Association, its staff, and of course, NHLA members. I have had the opportunity to travel to the far reaches of the world and have seen the enormous respect for NHLA and our National Inspectors here in the United States and as far away as China. More importantly, I have witnessed first-hand the NHLA Board and staff’s commitment and pride in serving our members. NHLA is fortunate to have a Board of Managers focused on honoring the traditions of our past and strengthening the foundation that has kept the organization and the industry moving forward for over 120 years. Today’s staff are focused on building better connections with our members, examining the potential of new technologies that can offer members new value, and of course, promoting the industry through our support of the Real American Hardwood Coalition. They are always looking for new ways to serve. I am proud to have been a part of that.

My sincere thanks to those who invited me into your sawmills and educated me on the immense pride you have in being a part of this great industry. And thank you again for the education when I called with yet another question on “how it all works.” Thank you for the time you spent mentoring me and passing on the pride you have in what your work stands for. I was raised in a farming family, with many of the same principles you stand for. I thank you for making me feel at home and sharing your guidance and inspiration. My decision to leave was difficult, but rest assured, the progress will continue, guided by the great hands of the Board of Managers and the NHLA team. Thank you for the opportunity to serve the men and women of this great industry. I wish you all the best.

Lorna D. Christie, NHLA CEO l.christie@nhla.com

NHLA’s contributions to the Hardwood Federation are yet another example of the organization’s focus on protecting our members from unwarranted legislation and ensuring that government leaders in Washington know who we are and understand our commitment to the environment.

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INSIDE NHLA

The National Hardwood 2021 Leadership Award Call for Nominations NHLA recently expanded its Women’s Leadership Award to ensure both male and female members are eligible. The award will be presented every two years at the NHLA Annual Conference. HOW TO NOMINATE The NHLA Leadership Award will be presented every two years to a NHLA member whose leadership has made a significant difference to NHLA, the industry, and our membership.

NHLA Board of Managers Are you ready to serve? Nominations are NOW being accepted for the NHLA Board of Managers. You may nominate an "Active" company individual or yourself to serve, provided that you work for an "Active" member company. The definition of an "Active" member is: a company based in the U.S. or Canada that is actively involved in the manufacturing, custom kiln drying, wholesale or distribution of hardwood lumber, plywood, or related products. All nominees must be employed by an "Active" NHLA member company in good standing. Board members serve staggered three-year terms and are expected to support the Board’s role in addressing the needs of our diverse industry, as well as strengthen ties between all members and NHLA. Email your nominations, along with their complete contact information, to nominees@nhla.com.

A nominee must be a: • NHLA member for 20 years or more • Demonstrate ongoing contributions and dedication to serving the industry • Recognition of his/her role as a proven innovator with consistent track record of supporting NHLA and the industry with demonstrable results Nominees must also be actively engaged in the hardwood industry; exceptions may be made for retirees from the industry and NHLA membership. NOMINATION PROCESS • Prepare an outline of the honorees’ contributions and describe the positive impact of his or her actions • Provide references/support from a minimum of two NHLA members in good standing. • You may add additional information as you deem necessary. • Individuals serving on the Leadership Award Selection Commit- tee, who are nominated for an award must recuse himself or herself from the Committee deliberations. AWARD SELECTION COMMITTEE • The Leadership Award Selection Committee will include representatives from all segments of NHLA membership and will be appointed by the NHLA President. The Board VP will chair the Committee. • The Committee is responsible for reviewing nominees and submitting one finalist to the Board of Managers. The award will be presented at NHLA’s Annual Convention in West Palm Beach, Florida. Please submit your nomination to nominees@nhla.com

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LEGISLATIVE LOG

THE BIDEN AGENDA Goals, Costs and Challenges

he Biden Administration is moving quickly and aggressively to deliver on key promises made during the Presidential election campaign. In addition to the $1.9 trillion Covid economic relief package passed into law in late January, the Administration has introduced two additional major policy initiatives totaling almost $4 trillion in spending and taxes this spring. One to address our country’s aging infrastructure and the second to shore up the financial footing of lower and middle-class families as the country finally emerges from the pandemic. In terms of priority, the sequencing is telling, with the infrastructurefocused American Jobs Plan hitting the streets weeks ahead of the American Family Plan that was unveiled in late April. White House staff has noted that the President has long wanted to pursue an infrastructure package and appears more passionate about that effort. Specific details of the American Jobs Plan are scarce. The 25-page high-level summary document released on the day the proposal was revealed is all that exists. The proposal lays out hundreds of billions of dollars for roads, bridges, and ports, among other items. Although there

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GOALS COSTS CHALLENGES

Stefano Garau / Shutterstock.com

By DANA COLE, Executive Director Hardwood Federation

is disagreement on funding levels and areas of focus, spending on infrastructure enjoys bipartisan support, at least on a conceptual basis. The aspect of the infrastructure plan and the American Family Plan that has attracted the most attention is how to pay for all of this new spending. Here again, the tax titles in these proposals are generally short on specifics but paint a decidedly clearer picture of who will be impacted than the spending components of these measures. Media coverage has focused on the jump in the corporate tax rate to 28 percent from 21 percent. Also receiving attention are the many provisions to curb offshoring— most notably the doubling of the global minimum tax (known as GILTI or Global Low Tax Intangible Income) from 10.5 to 21 percent. These two major tax increase planks are tagged as the funding mechanisms for the programs outlined in the American Jobs Plan. Additional tax increases are outlined in the American Family Plan, most prominently the proposed capital gains increase to 39.6% from 20% for W W W. N H L A .C O M

those earning $1 million or more. The other widely discussed proposed change is ending long-standing capital gains tax break on inheritances known as “step-up in basis,” which allows tax payers to use the market value of assets at the time of inheritance rather than the actual purchase price as the cost basis for capital gains when the holdings are sold. What has not been widely reported on are the many potential revenue raisers not in either proposal that will almost certainly surface as the Congressional tax-writing committees begin their task of fashioning actual legislation to implement these plans. One area on which the Hardwood Federation is keenly focused is a potential increase in taxes S Corporations and other pass-through entities currently pay. Beginning in 2018, after the enactment of the TCJA, a new tax deduction for owners of passthrough businesses took effect. Pass-through owners who qualify can deduct up to 20 percent of their net business income from their income taxes, reducing their effective income tax rate by 20 percent.

found that these tax proposals have a way of coming back from the dead . . . and just like zombies, they are hard to kill! These proposals and others impacting our sector may surface in the coming weeks. The Hardwood Federation team is fanning out virtually to offices on both sides of the Capitol to gather intelligence and discuss the impact of increased taxes on jobs in rural areas. A study recently conducted for the National Association of Manufacturers concluded that one million jobs would be lost in the manufacturing sector alone, following with first two years after enacting revenue raisers currently being discussed. As always, we will keep you apprised of what we hear and may be calling upon you to help engage Congress as threats—and opportunities—materialize.

This deduction is currently slated to run through 2025 unless extended by Congress. Given that pass-through businesses employ a majority of private-sector workers (58 percent), pay a significant share of all business taxes (51 percent), and that large S-Corporations (over 100 employees) pay 20 percent of all business taxes, it seems reasonable to conclude that Congress will turn to pass-throughs at some point as they sharpen the pencil on raising revenue. Another proposal that has received serious consideration in previous Congresses is eliminating the preferential tax treatment on standing timber. Currently, standing timber is assessed at the capital gains rate, recognizing the long-term investment and risk that landowners incur to produce trees that can take 50 to 80 years to mature. So-called “pay fors” have surfaced in Congress in recent years that would eliminate capital gains preferential tax treatment for revenue derived from harvesting timber and instead assess gains as ordinary income at the top tax rate. More than doubling the tax rate on timber proceeds would be devastating for forest landowners across the spectrum—from small private landowners trying to put a kid through college with a timber sale or a thinning project to large industrial forest landowners. The downstream effects on companies in the hardwood manufacturing sector that rely on forest fiber for product and energy are consequential. Although the timber tax “pay for” has not been discussed for a few years, we have W W W. N H L A .C O M

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MEMBER SPOTLIGHT JOESCAN 2019

JOESCAN

RELIABLE SCANNING THAT DELIVERS MAXIMUM PERFORMANCE AND RETURN ON INVESTMENT

canning hardware for sawmills has been around for decades, but have you ever thought about how it came to be? Joey Nelson thought about it throughout his childhood. As he grew up, he learned everything he could about sawmill optimization through his father’s business.

Joey’s interest in laser scanning for the sawmill industry grew as he studied electrical engineering at Washington State University. A few years after working on a project to develop the L-51 laser scanner for his father’s company, Joey decided to take the plunge and start his own company dedicated to creating laser scanners for sawmills that are more reliable, easier to operate, and more affordable. That company was JoeScan.

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Joey built the first JoeScan JS-20 scanner in 2002. Since then, JoeScan has made a concerted effort to raise the bar for sawmill scanning. Subsequent models have increased the maximum scan rate, become easier to install and calibrate, and made sawmill scanning better. Joey enjoys working with sawmills, saying, “Today’s sawmills are very high production factories; they depend on their equipment

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2014

In any field dealing with technology, knowing what your customers will need in the future is vital. You always need to be one step ahead of the curve.

2002 2020

2019 to be accurate, reliable, and easy to use. The sawmill industry is dynamic and competitive, and that is exciting to me! Plus, logs are a major cost in producing lumber, so getting the most out of every log is critically important to be competitive.” When you ask the average person to describe where lasers are used, their mind typically goes to the field of science or medicine. They picture sterile, shiny rooms that protect the laser from damage. And if there is anything a sawmill is known for, being sterile doesn’t come to mind. Joey has built something that defies that image, pointing out, “JoeScan focuses on key things that sawmills need, which would be technology that’s robust, tough, and rugged. Our scanners are designed to thrive in sawmill environments that are brutal, dusty, have constant vibration, and of course, sawdust.” Customer service is always top of mind at JoeScan. “When you call JoeScan for technical support, you talk to an engineer that helped develop the product. We understand that downtime at a sawmill is costly. Our slogan is ‘Made for Sawmills,’ but our engineers make it much more than just a slogan. When a customer calls looking for a scanner that can see wet, slimy logs on their carriage headrig, we can help them with that.” Scanners are a significant investment for sawmills, and Joey respects that. “We stand behind our products,” said Joey. “We back our scanners W W W. N H L A .C O M

with a five-year warranty and provide a ten-year support policy. Sawmills want to invest in technology that is going to work for quite a long time. So, if you buy a scanner from JoeScan, you know you’ll be able to have that scanner serviced for at least the next ten years. Quality is important to us. The very first scanner we installed in a sawmill is still running. That was in 2002. It has never been sent back to us for repair. We’re in this for the long term.” In any field dealing with technology, knowing what your customers will need in the future is vital. You always need to be one step ahead of the curve. So, how does JoeScan achieve that? Through their NHLA membership! “Being in touch with our customers gives us the knowledge we need to develop products that explicitly address new problems facing sawmills. That’s one of the things we like about being a member of NHLA; we get to have these conversations with people in the hardwood industry. It helps us to make sure we’re designing and developing the best products to meet all their needs.” JoeScan has greatly benefited from its NHLA membership, with Joey saying, “NHLA allows us to see different perspectives from people who are very smart when it comes to solving hard problems, and we learn a lot from that. NHLA is a fun and exciting thing to be a part of. We also appreciate the educational opportunities – especially the use of webinars. We have our staff watch the webinars to learn more about the industry that we are supporting. It’s beneficial for them to take just an hour out of their day and learn some interesting background on what is important for our sawmills. The whole company can become more knowledgeable!” Today, 22 years after JoeScan was created, it has grown to 11 employees dedicated to carving out a niche with sawmills as a resource for fast, accurate, and reliable scanning that delivers maximum performance and return on investment. You can get in touch with JoeScan online at www.JoeScan.com or via phone at 360-993-0069. J U N E 2 0 2 1 H A R D W O O D M AT T E R S |

CYBERSECURITY Best Practices For SMBs By SCOTT RABA, Co-Founder and the Chief Technology Officer of MindSpout

here was a time when SMBs (small-to-medium businesses) did not have to worry too much about being a target for cyberthieves. They were considered too small or not worth the effort. Times have changed, and SMBs have become targets for cyberattacks. In fact, 71% of cyberattacks occur at companies with less than 100 employees. Cybersecurity is no longer a game for the “big dogs,” and it is important to realize that SMBs are just as vulnerable as big corporations. Let’s look at some simple practices your business can put in place to better protect you from the threats that abound.

A good place to start is documentation. It is vital that a business has documented cybersecurity policies and procedures in place. Before you ask how in the world do I do that and where do I start, there are numerous tools available to help you. The Small Business Administration Cybersecurity portal provides online training, checklists, and information that specifically addresses small businesses. The FCC has an online tool, Cyberplanner 2.0, that gives you a starting point to develop your documentation. Once the documentation has been created, ensure that all employees have received, read, and signed off on the organization’s policies. Businesses also need to educate. Your employees are your weakest link and your strongest ally. There is a reason why phishing emails and spam phone calls are still actively being used by cyberthieves.

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They still work!! Educating your workforce takes time, effort, and resources. Still, study after study has revealed that an educated workforce is more effective at preventing cybercrime than having all the bells and whistles when it comes to preventative technology. Also, remember that education is not a one-and-done deal. Cybersecurity, cybercriminals, and technology are constantly evolving and changing, and so should your documented policies and employee education. Next, develop and enforce, a password policy. There is where I hear the collective groan from everyone. Yes, setting a policy and having everyone change their passwords every 30, 60, or 90 days may seem like a nuisance but, it is a necessary evil. Just remember that roughly 63% of data breaches occur because of a lost, stolen, or W W W. N H L A .C O M

weak password. Do you want to take that chance? An effective password policy will enforce a minimum password length with a capital letter, lowercase letter, a number, and a symbol. Require password changes every 30-60 days and do not allow the same password to be used repeatedly. Do not be part of the 65% of businesses that have a password policy but do not actively enforce it. Alongside password policies, organizations must utilize multi-factor authentication. Again, I hear the groans. Most people I talk to hate having to receive a text message with a code or open an app on their phone to type in a generated code. Trust me; I get it. It is important to understand that you make it harder for a cyberattacker to break through to your valuable information by creating layers of security. An example of this would be to utilize a multifactor authentication method for email. Now a cybercriminal would need the second or third authentication method to gain access. Have you noticed a trend here? The practices mentioned above centered around the human element and had very little to do with firewalls, anti-virus software, VPNs, etc. That is because the human element is critical in any organization’s cybersecurity posture. Employee education may look a little different for each organization. In general, training on spotting phishing emails, the importance of good passwords that are not used in multiple places, and creating a united culture are just a few ways any business can strengthen itself against cyberattacks.

Cybersecurity, cybercriminals, and technology are constantly evolving and changing, and so should your documented policies and employee education.

Now let us discuss a few pieces related to hardware/software that are important as well. The first piece is one often overlooked by most people, updates. People hate hearing about updating their devices since it usually requires rebooting the system to finish the update process. However, updating and patching your devices is paramount for protecting your business from cyber threats. There is always a chance that a faulty update will come

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Setting a policy and having everyone change their passwords every 30, 60, or 90 days may seem like a nuisance but, it is a necessary evil.

through and cause problems, but that happens infrequently. Given that 98% of exploits receive patches within 90 days, it is up to the business to make sure their devices are receiving these updates, and they are being installed in a timely manner. Next is installing and maintaining a good anti-virus solution. You cannot assume that an employee, or yourself, will not click on that phishing email or suspicious link. You cannot even assume that a website you visit regularly has not been compromised and when you visit that site, a piece of malware gets dropped on your computer. Install reputable anti-virus software and make sure it both updates and scans regularly. Do not adopt a set it and forget mentality. Antivirus software that is not updated or routinely run is just as bad as not having anything at all. When all else fails (and it can), be prepared. Have all your missioncritical applications and data backed up. This is no silver bullet with cybersecurity, and despite all the protective measures you put in place, you can still be breached. Rather than bemoan this fact, be proactive and have the pieces in place to get your business back up and running as fast as possible. Decide if you want to back up

locally to an on-premises device or use a reputable cloud-based back-up service. Whatever you decide to use, use it, and run backups regularly. It is also wise to test your back-ups regularly to ensure that there are no issues with the back-ups themselves. A corrupted back-up is just as bad as no back-up at all. Scott Raba is a Co-Founder and the Chief Technology Officer of MindSpout, an innovative Managed IT Services and Cybersecurity Consulting company. He has over eight years of IT experience serving clients in and around the Washington D.C. Metro area. Scott holds several industry-recognized certifications, including COMPTIA A+, Network+, Security+, Operations Specialist, and Secure Infrastructure Specialist. He is also an EC-Council Certified Ethical Hacker, is Cisco CCNA CyberOps certified, and holds the ITIL 4 Foundations certification. Scott has a Master of Science degree in Cybersecurity from the University of Maryland University College. During his time at UMUC, Scott was accepted into the Phi Kappa Phi and Upsilon Pi Epsilon honor societies.

WANT TO LEARN MORE ABOUT CYBERSECURITY? Make plans to attend Scott’s educational session at the 2021 NHLA Annual Convention & Exhibit Showcase

Friday, September 24: 1-2pm Check for Knots: Learn How Knot to be a Cybersecurity Victim 14

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RULES CORNER

2023 Rules Change Proposals

THE 2021 RULES COMMITTEE MEMBERS: SAM GLIDDEN - Chairman, GMC Hardwoods RAY WHITE - Mission Leader, Harold White Lumber MARK BEAR, Bear Lumber & Tie DAVID MAYFIELD, Mayfield Lumber BUCKY PESCAGLIA, MO PAC Lumber TONY HONEYCUTT, Mullican Flooring

isted here you will find the Rules change proposals submitted to NHLA for consideration by the Rules Committee. The Rules Committee will discuss these proposals at a meeting to be held at NHLA Headquarters in Memphis, TN and via Zoom call on the 8th of June beginning at 8:00 am CST. The Committee meeting will begin with an open forum for anyone wishing to speak in favor of or against any Rules change proposed. The open forum will be approximately 1 hour in duration, at that time the Rules Committee will go into closed session. Anyone wishing to be present at the open forum or via Zoom should contact the Chief Inspector, Dana Spessert at d.spessert@nhla.com or by phone at 901-399-7551 at least 1 week prior to the meeting date.

PHILIP FISCHER, Maley & Wertz TOM WRIGHT, Edwards Wood Products BILL ROSENBERRY, Carl Rosenberry & Sons PAUL KEPHART, Northwest Hardwoods PETE VAN AMELSFORT, Quality Hardwoods JOE SYNDER, Fitzpatrick & Weller

Rules changes that are approved by the Rules Committee to be considered by the NHLA Membership, will be made public at least 45-days prior to the NHLA Annual Convention. An open forum on those changes will be held at the 2021 NHLA Annual Convention (Thursday, September 23). Following the convention open forum, the NHLA Active Membership will be sent a ballot to vote against or in favor of the rules change.

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SUBMITTED RULES CHANGE PROPOSALS TO BE CONSIDERED AND DISCUSSED 1. Standard Grades – 2a & 2b Common – Page 18, Paragraph 79 a. Limit 2C Extra Cut/Extra Yield to 2’ - 5’ b. Remove 6’ & 7’ from allowing Extra Cut/Extra Yield 2. Standard Grades – FAS – Page 15 a. Remove paragraph 60, 1/3 SM knot or hole limitation. 3. Standard Grades, General Instructions & Species Exceptions a. Page 5, paragraph 9, Miscut Lumber: Remove “over the entire” and replace with “within the Standard” b. Page 16, paragraph 64, F1F: Add to end of paragraph - “Will also accept pieces with the reverse side of the Cuttings Sound, as defined is Sound Cutting.” c. Page 24, Basswood: Remove “Note: Dormant twig buds to be considered as burls.” d. Relocate “Rustic Oak” on page 35 to page 27, under Red Oak, White Oak and Locust species exceptions. e. Page 66, Select Car Stock: Change split limitation from - “SPLITS: Shall not exceed 6” in length in any one end or the aggregate equivalent in one or both ends of the piece.” To – “SPLITS: Shall not exceed 12” in length in either end of the piece of Standard or specified length.” f. Page 67, Common Dimension: Change Split limitation from – “SPLITS: Shall not exceed 12” in length in any one end or the aggregate equivalent in one or both ends of the piece.” To – “Splits shall not exceed in the aggregate in inches in length twice the surface measure of the piece of Standard or specified length, except whenone foot or shorter” g. Frame Grade: i. 2b Common and Better, except 1. Width 4” & wider, 90% must be 6” & wider 2. Length 6’ and longer 3. Sound knots limited to ¼” in the largest dimension in the cuttings. 4. No pith allowed 5. Note: Species, thickness and lengths will be specified by contract h. Page 14, FAS, paragraph 53., Change minimum width to 5” i. Page 14 – 15, FAS, Remove paragraphs, 58(split limitation), 59(first lineal foot rule), 60(knot size limitation).

(continued on page 18)

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SUBMITTED RULES CHANGE PROPOSALS TO BE CONSIDERED AND DISCUSSED CONTINUED 4. Cypress Rules a. Page 48, paragraph 90, Selects & Btr. – i. Add “Pith is limited to aggregate in inches, boxed or showing, to width of the piece.” ii. Change from “A. Pieces 4” and 5” wide must be clear allowing slight wane on one edge. (Par. 80)” To – “A. Pieces 4” and 5” wide must be clear allowing slight wane on one edge (Par. 84), except that pieces 12’ in length and over allow 1 medium size knot (Par. 39).” iii. Under section B: Change from “• 6” wide – 1 medium knot • 7” – 9” wide – 2 medium knots” To “Pieces 6” to 9” wide will admit 1 medium size knot (Par. 39) in pieces 10’ and shorter, pieces 12’ and longer will admit 2 medium size knots (Par. 39).” b. Page 43, paragraph 15, Warp & Cup – Add “Side-bend shall not exceed to the extent that the piece will not produce the standard finished width in its full length, in all grades.” c. Page 50, paragraphs 98 & 99, No. 1 & No. 2 Peck – Combine paragraph 98 & 99 to create “Peck” as follows – “Each piece must contain peck, with a minimum area of 10% of the Surface Measure, well distributed on one side. Each piece must be suitable for ordinary handling and construction without breakage.” 5. Standard Grades Note: “It is my opinion that NHLA grading rules should be based solely on yield. This, in turn, makes the grading requirements less cumbersome and does not sacrifice quality.” a. Page 15, under FAS – Remove paragraph 60 (Knot size limitation). i. If not remove change to ½ the SM in inches. b. Page 15, under FAS – Remove paragraph 59. (First Lineal Foot Rule) c. Page 14, under FAS – Remove paragraph 56. (Pith limitation) d. Page 17, under 1 Common – Remove paragraph 72. (Pith limitation) 6. Standard Grades a. Page 17, under 2a & 2b Common – Add “Pieces which grade not below No. 1 Common on the better face, the reverse side of the cuttings sound, also qualify as 2a Common.” b. Page 5, paragraph 9, under Miscut Lumber – Change “Rough lumber shall be categorized for Standard Thickness by the measurement taken at the thinnest cutting used in establishing the grade. If there is a greater variation in thickness over the entire length of the piece than shown in the following table, the board shall be classed miscut.” To “If there is a greater variation in thickness, regardless of the grade, over the entire length of the piece than shown in the following table, the board shall be classed miscut.”

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LET THE INDUSTRY SERVICES TEAM HELP YOU.

BECOME A MEMBER OF THE NHLA FACILITY GRADE CERTIFICATION PROGRAM!

Cory Christen with NHLA’s Kevin Evilsizer.

”

Kendrick Forest Products is a member of the National Hardwood Lumber Association’s (NHLA) Facility Grade Certification Program. This is a voluntary quality assurance program where our lumber is re-inspected by the NHLA National Inspector 2-3 times per year to ensure we are representing the lumber properly. It is with a great deal of pride that I can inform you Cory Christen passed his test with flying colors. He was well within what the NHLA allows. Great job, Cory! This certification gives us a competitive advantage when selling in the marketplace as new customers know that we honor the NHLA grades and system. Most mills are not certified. In fact, Kendrick is the only mill in Iowa with this designation and one of only two in the American Walnut Manufacturers Association. Kevin and the NHLA have been a great resource for continuing to build into our team. We look forward to Kevin coming back in the summer.”

— Greg Blomberg, General Manager at Kendrick Forest Products

CONTACT NHLA CHIEF INSPECTOR TODAY! Call 901-399-7551 or Email d.spessert@nhla.com

NHLA PROVIDES EDUCATION AND TRAINING TO IMPROVE YOUR BOTTOM LINE Register for classes at www.nhla.com/Education. JULY

19-22

27-29

Intro to Hardwood Lumber Grading

Intro class to gain a basic understanding of the NHLA hardwood lumber grading rules and how the rules affect the value of lumber.

COVID-19 IMPACT:

At the time of publication, these educational courses are being offered. However, due to the unknowns of the COVID-19 pandemic please visit nhla.com for the latest information or call NHLA headquarters at 901-377-1818 to confirm that these courses are taking place.

AUGUST

Hosted by: Ron Jones Hardwoods Venue: Franklin Industrial & Commercial Development Authority Location: Franklin, PA

Instructor: Tom Byers, NHLA National Inspector

16-27

SEPTEMBER

30-Sept. 1

13-17

Inspector Training School Online Training Program MODULE 1

Intro to Hardwood Lumber Grading

Venue: NHLA Headquarters Location: Memphis, TN Module 2: Online study Module 3: Three weeks handson training and final testing at NHLA headquarters. Instructor: Roman Matyushchenko, ITS Instructor

Intro class to gain a basic understanding of the NHLA hardwood lumber grading rules and how the rules affect the value of lumber.

Venue: NHLA Headquarters Location: Memphis, TN

Hosted by: Indiana Hardwood Lumbermen's Association Venue: Wood-Mizer, LLC Location: Indianapolis, IN

Instructor: Roman Matyushchenko, ITS Instructor

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Intro class to gain a basic understanding of the NHLA hardwood lumber grading rules and how the rules affect the value of lumber.

Hosted by: Forcey Lumber & Veneer and Walker Lumber Venue: YMCA Bigler Location: Bigler, PA

AUGUST

Two weeks of hands-on training.

JULY

Instructor: Kevin Evilsizer, NHLA National Inspector

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COVID-19 IMPACT:

SEPTEMBER

OCTOBER

NOVEMBER

13-Nov. 5

4-6

4-15

Inspector Training School 196th Class

Intro to Hardwood Lumber Grading

Inspector Training School Online Training Program MODULE 1

29-Dec. 10

Traditional 8-week hands-on training to achieve the certificate of completion in Hardwood Lumber Inspection. Venue: NHLA Headquarters Location: Memphis, TN Instructor: Roman Matyushchenko, ITS Instructor

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Intro class to gain a basic understanding of the NHLA hardwood lumber grading rules and how the rules affect the value of lumber. Venue: Northwest Hardwoods - Marion Branch Location: Marion, NC Instructor: Mark Depp, NHLA National Inspector

Two weeks of hands-on training.

Venue: Northwest Hardwoods - Marion Branch Location: Marion, NC Module 2: Online study Module 3: Three weeks handson training and final testing at NHLA headquarters. Instructor: Mark Depp, NHLA National Inspector

Inspector Training School Online Training Program MODULE 1 Two weeks of hands-on training.

Venue: NHLA Headquarters Location: Memphis, TN Module 2: Online study Module 3: Three weeks handson training and final testing at NHLA headquarters. Instructor: Roman Matyushchenko, ITS Instructor

J U N E 2 0 2 1 H A R D W O O D M AT T E R S |

NHLA JOB BOARD Here you will find our current job listings. To see more details or to post a job, visit www.nhla.com/industry-services/job-board.

HARDWOOD LUMBER INSPECTOR HMI HARDWOODS LLC HMI Hardwoods LLC is in search of a lumber inspector to inspect and tally lumber according to NHLA (National Hardwood Lumber Association) rules, and specific special orders as correctly as possible, without sacrificing quality, performance, or results.

fulfillment of orders. The ideal candidate will have the ability to guide and motivate a small team of woodworkers. 40-50 hours a week with overtime, pay commensurate with skills and experience. Skills & Experience Required • 3+ years experience in a similar manufacturing/woodworking environment.

Responsibilities include: • Grade and tally lumber Inspect lumber for highest profits

• Experience with precision machine set-up, operation, and maintenance.

• Maintain a 95% or better grade accuracy

• Reliable, detail-oriented, and highly motivated.

• Achieve highest yields

• Strong organizational skills.

• Use best judgement, not to supersede NHLA rules/regulations

• Passionate about the product and role within the company.

Skills & Experience Required • NHLA (National Hardwood Lumber Association) certified. • Minimum 1-year preferred experience grading green lumber • Experience and ability to work in a fast pace environment • Must be physically capable of performing all duties of the job and any other duties assigned by Supervisor Salary & Benefits Competitive wages, benefits after 90 days, 401k, hiring bonus How to Apply Send your resume to: smackay@hmilumber.com HMI Hardwoods LLC 430 Division Street | Clinton, WI 49236 517-456-5714 | www.hmilumber.com FLOOR SHOP LEAD HULL FOREST PRODUCTS, INC. Hull Forest Products is looking for an enthusiastic, reliable, detailoriented person to help plan, coordinate, and execute the production of our custom wood flooring. This position requires experience running and maintaining woodworking machinery including a straight line rip saw, moulder, and endmatcher, plus knowledge of wood technology and American hardwood species. The floor shop lead will coordinate with the sawmill, kiln/warehouse, and sales managers to ensure a consistent flow of raw materials to the floor dept. as well as the timely and accurate

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• Familiarity with Microsoft Excel. • Previous experience with precision manufacturing, woodworking, or wood flooring installation preferred. Salary & Benefits Competitive wages commensurate with experience, health insurance, paid vacation and sick time, 401K, and discounted wood products How to Apply Send your resume to: info@hullforest.com Hull Forest Products, Inc. 101 Hampton Road | Pomfret Center, CT 06259 860-974-0127 | www.hullforest.com SUPERVISOR PIKE LUMBER COMPANY Pike Lumber Company, Inc. is seeking a supervisor for their Milan, Indiana sawmill. This is a full-time position with responsibilities including sawmill operations, maintenance, quality control, and scheduling that reports to the Milan Regional Manager. Essential tasks, duties, and responsibilities include, but are not limited to the following: • Coordination and management of production operations at the Milan, IN facility • Must be proficient in the operation of all equipment used in and around the sawmill • Compile and analyze daily production reports and send them to support staff in a timely manner

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NHLA JOB BOARD Here you will find our current job listings. To see more details or to post a job, visit www.nhla.com/industry-services/job-board.

• Coordinate with Milan Regional manager any scheduling needs

• Detail-oriented

• Assist in the training of machine operators and backups

• Ability to work with all personnel and show strong leadership skills

• Fill in for key operators

• Strong organizational and time management skills

• Monitor all quality areas and report any issues to Milan Regional Manager

Salary & Benefits Competitive salary based on experience and qualifications. Profit-sharing and 401k are offered. Paid time off (PTO) policy with time off earned from the date of hire. Full medical, dental, and vision benefits available after 60 days of employment. Relocation assistance will be available.

• Work with maintenance to develop proper preventative maintenance schedules • Ensure preventative maintenance measures are being completed • Assist maintenance and operators when any station is down for repairs • Assist in the recruitment and hiring process of necessary plant personnel • Enforce all company policies including any safety procedures • Perform other related duties as assigned by management • This is a salaried position. Normal work schedule of 45-55 hours per week, occasional production needs may require evening or weekend hours • Must be able to climb, squat, stoop, lift 50lbs and sit or stand for long periods of time Skills & Experience Required • Minimum 5 years of experience in the Lumber industry as an equipment operator, inspector, or equivalent. • Knowledge of sawmill production equipment and process flow • Ability to demonstrate proficiency in applying NHLA lumber inspection rules. • Knowledge of computers (Word, Excel, Outlook, etc. . . ) • Must possess a valid vehicle operator’s license and meet the safety requirements of the company’s insurance provider.

How to Apply Send your resume to: employment@pikelumber.com Pike Lumber Company, Inc 785 E. Carr Street | Milan, IN 47031 812-654-7116 | www.pikelumber.com HARDWOOD LUMBER INSPECTOR QUALITY HARDWOODS Quality Hardwoods is seeking to hire a Lumber Inspector for a high production band sawmill. Skills & Experience Required Must be a self-motivated graduate of Inspector Training School Salary & Benefits Permanent Employment, competitive wage, benefits, vacation time, and a 401k. How to Apply Send your resume to: info@qualityhardwoodsinc.com Quality Hardwoods 396 Main St PO Box 38 | Sunfield, MI 48890 517-566-8061 | www.qualityhardwoodsinc.com

• Knowledge of pneumatic, hydraulic, mechanical, and electrical systems and controls. • Strong written and verbal communication skills. • Strong critical thinking and problem-solving skills • Must have a commitment to quality manufacturing

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DISCOVER

ER ANSW

CONNECTION EXPERTISE

YOU’RE WANTING TO MAKE YOUR BUSINESS BETTER. NHLA HAS THE ANSWER. NEED TO FIND A NEW VENDOR FOR A SERVICE OR PRODUCT? Connections to industry specific companies through networking events, online membership directory and a virtual exhibit hall.

WANT TO DISCOVER WAYS TO MAKE YOUR BUSINESS MORE PROFITABLE? Programs and expertise designed to identify areas of change that can lead to more money in your pocket.

HAVE A QUESTION ABOUT PROCESSES OR BEST PRACTICES? Relevant and industry-specific education and training available in a variety of formats.

NHLA is your connection for ideas, answers and one-on-one professional advice. Give us a call today and let us help you make your business better! www.nhla.com

John Hester, Director of Membership and Business Development at 901-399-7558 or email j.hester@nhla.com.

Picture Perfect.

Inspired by Quality, Service and Forest Stewardship since 1904.

Our 4/4 through 8/4 White Oak Rift and Quarter Sawn lumber is made from specially selected logs and dried to perfection. Combined with exceptional service and 100% guarantee

Pike Brand ® Hardwoods are picture perfect. Try us once, you’ll be back for more!

P.O. Box 247 Akron, Indiana 46910

(800) 356-4554 (574) 893-4511 (574) 893-7400 fax

Sales@PikeLumber.com www.PikeLumber.com

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