April 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 April 2021

DOMESTIC MARKETS Life After Covid-19

pl us CONGRATULATIONS TO THE 194TH CLASS A CONVERSATION WITH CHIEF INSPECTOR DANA SPESSERT 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 April 2021 • Issue 221

WHAT'S INSIDE feature 12 Domestic Markets Life After Covid-19

departments 12

ONLINE TOP POST OF THE MONTH at facebook.com/NHLAOfficial We know many of our members see snow like this every year, but our headquarters in Memphis has had record snowfall since Monday. It has been so much fun—but now we are ready for it to be over. Haha

7 Accolades 8 Education Spotlight Congratulations to the Graduates

of the 194th Class

10 Legislative Log The Biden Trade Agenda

by Dana Cole

16 Industry Insight Can Your Storeroom Be

The Key To Success? by Mary Mathews and Tammy Beck

18 Rules Corner NHLA Operations Management

reader services 4 6 20 22

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by Amanda Boutwell

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 23 Baillie

TMX Shipping Company

IFC DMSi

Tropical Forest Products

EZ Log Company

U•C Coatings, LLC

King City

USNR

IBC Pike Lumber Company, Inc. 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

EXECUTIVE COMMITTEE

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Rich Solano Pike Lumber Company, Inc. Structure Stephanie VanDystadt DV Hardwoods, Inc. Membership & Networking

Desirée Freeman Controller

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

Melissa Ellis Smith Graphic Designer Dana Spessert Chief Inspector

Joe Snyder Fitzpatrick & Weller, Inc. Rules

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OPENS APRIL 15! Get excited and make your plans to join us in September, as we Turn the Tide with Innovation! Join us at the Palm County Convention Center in West Palm Beach Florida – September 22-24, 2021. Registration will open in early spring. Visit www.nhla.com/convention to learn more.

Attend the NHLA Annual Convention & Exhibit Showcase to Learn from industry experts, Network with producers, buyers, suppliers, and thought leaders, Find vendors and suppliers specific to your company’s needs. And do this all from one location, location, location!

Showcase your products and services to NHLA members and the hardwood industry at large.

Exhibit Booth sales are NOW OPEN. Visit www.nhla.com/convention to reserve your booth today! John Hester, Director of Membership and Business Development at j.hester@nhla.com Vicky Simms, Membership Development Manager at v.simms@nhla.com W W W. N H L A .C O M

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PRESIDENT’S MESSAGE

SETTING GOALS AND EXPECTATIONS FOR THE PROMOTION OF HARDWOODS

few articles ago, I focused on what the goal(s) of the “The Real American Hardwood Promotion Coalition (RAHPC)” should be. Having time to think and letting one’s mind work on an issue is a good thing. A lot of you have communicated your thoughts to me about RAHPC. I appreciate the phone calls and e-mails I have received from many of our members. The feedback has been consistent and is centered around three key thoughts. It is pretty much unanimous that our marketing plans goal should be to increase the usage of hardwood lumber and related products and services. We have solid data that documents the annual sawmill production of hardwood lumber. 2020 was a brutal year, with estimated sawmill production falling to approximately 5.65 billion board feet. The effects of Covid-19 caused a more significant loss in production than the impact of the tariffs implemented in mid-2019. The combined impact of both issues has put a considerable damper on our industry. I do not know if any marketing campaign could have overcome the devastating effects of the Tariffs and Covid-19. Looking forward, what should our target goal be for sawmill production of hardwood lumber, and by when do we want to reach the goal? A good goal is attainable but should stretch our industry. Is 10 billion board feet of sawmill production by the end of 2025 a good target? Could “10 billion by 2025” be something we could wrap our minds around? Could we do it with the help of a good promotion program? Can we influence the minds of consumers to make nearly twice as many decisions to use hardwood as we are currently doing? There are a lot of unanswered questions. All of us want a successful marketing program. We all have a lot of questions and not enough answers. I know this; at some point, we are going to have to take our best shot. We will have successes and failures. We will learn from our mistakes and expand on our accomplishments. Do not be discouraged by our failures. They are part of the process. We need to be bold enough to believe that we will have a positive impact over time and will reach our production goal.

world thinks of the hardwood industry, forest management, and the role hardwood can have in sequestering carbon.” We are the best-kept secret in the environmental movement. We are part of the solution, not the problem. As we work on building the consumer market, everyone wants to make sure we defend our industry and educate the consumer about how good using wood products is for the environment. We will know when we have reached this goal when the environmental movement embraces the hardwood industry as a partner in the environmental solution. Finally, everyone I talk with is becoming impatient. Many members have their engines revving and are ready to start this venture. We need to extend a bit more patience. The RAHPC is in the process of applying for their 501c3 status. We need to have this in place so your contributions can be deducted as an expense. I know you will get an update from the RAHPC soon. In closing, thinking ahead about the RAHPC, at some point, we will need to hire an executive director to lead the promotion effort. We will need to find a great leader and an expert in marketing. We cannot expect our association executive directors to continue carrying this workload and doing their regular work. It seems prudent that we would follow the successful model of the Hardwood Federation. A full-time executive director, a support person or two, a board of directors, and bylaws are in our future. A committed team working on our promotion campaign every day is an important commitment our industry will need to make. 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.

The second universal thought is the “big hairy audacious goal” that everyone wants. That is, “to change the understanding of what the

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CEO'S MESSAGE

Inspector Training School Educational Foundation Meets New Milestone

ince 1946, the NHLA Inspector Training School (ITS) has graduated more than 7,500 industry leaders and innovators who have redefined the hardwood lumber industry worldwide.

In 2012, a dedicated group of Inspector Training School alumni and supporters formed an independent 501c3 non-profit organization with one goal – to provide support to ITS to continue the legacy of what many hardwood professionals would say is the most important institution in the hardwood industry. Since that time, the Inspector Training School Education Foundation (ITSEF) has achieved its goal of supporting the development and growth of the Inspector Training School. ITSEF celebrated a significant milestone with its recent donation of a state-of-the-art auto-tracking camera to the School. The camera, which tracks an instructor’s movement while lecturing, will allow ITS to broadcast lectures on a variety of topics to a broader range of students in the U.S. and abroad. It also provides students the ability to connect laptops for use with video conferencing and distance learning software like Zoom. Bucky Pescaglia, Chairman of ITSEF noted, “Updating technology at the Inspector Training School fits perfectly into the mission of ITSEF. As the School’s enrollment increases for its online classes and webinars, the new camera will provide the best possible learning experience for the students and allow NHLA to reach a broader range of students.” With the donation of the camera, ITSEF has contributed almost $90,000 in support of the School and its students. Contributions over the past several years include: • Scholarships to deserving non-affiliated students interested in starting or furthering a career in the hardwood lumber industry. • Purchase of new electronic tools to enhance and expand access to modern instructional techniques and connect students with leading industry experts.

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• Sports equipment to help students build life-long networks with their classmates. • New school kitchen designed to help students manage the costs of attending the School. • Student Relief Fund to ensure all students receive assistance when needed. • New lumber deliveries to provide students with a real-world grading environment. • Land surveys as the first stage in determining the feasibility of building student housing. While ITSEF is proud of its ability to contribute to ITS today and in the future, the ITSEF Board recognizes there is always more to be done. Chief Dana Spessert, Dean of ITS, agreed, saying, “NHLA is grateful for ITSEF’s outstanding contributions in supporting NHLA’s strategy of expanding our educational programing to reach more students.” INTERESTED IN HELPING ITSEF SUPPORT THE INSPECTOR TRAINING SCHOOL? ITSEF is committed to continuing its financial support to the Inspector Training School with the goal of enhancing learning opportunities today and in the future. 100% of your tax-deductible donations to ITSEF will be used to support the School. Please visit www.nhla.com/education/alumni/itsef/ to learn more and to donate.

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

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ACCOLADES

Welcome New Members (As of March 12, 2021)

ACTIVE U1 MEMBERS Campbell-Rodgers Lumber, North Garden, VA Central Missouri Forest Products, Jefferson City, MO Green Ridge Forest Products LLC, Cochranton, PA Hilltop Tie and Grade, Davis City, IA Ohio Select Hardwoods, LLC, Portsmouth, OH

Milestone Members

ACTIVE U1 MEMBERS Summerhill Lumber, Leechburg, PA Trumbull Forest Products, Atlantic, PA SUSTAINING MEMBER WoodLock – PMG, King George, VA

YEARS

SPRINGFIELD HARDWOOD PRODUCTS LLC Active U1 | February 2016 TROUT RIVER DRY KILNS Active U1 | February 2016

YEAR BIG MOUNTAIN LUMBER LLC Active U1 | February 2020

EMBRY AUTOMATION & CONTROLS, INC. Sustaining | February 2020 EZ LOG COMPANY Sustaining | February 2020 FUMIGATION SERVICE & SUPPLY Sustaining | February 2020 KOP-COAT PROTECTION PRODUCTS Sustaining | March 2020 VOLNER SAWMILL, INC. Active U1 | February 2020 WILCHER AND WILCOX LUMBER Active U1 | February 2020 YODER HARDWOODS Active U1 | February 2020 W W W. N H L A .C O M

YEARS

APP TIMBER LTD. Partner | March 2011

YEARS

BROWNLEE LUMBER, INC. Active U2 | March 2001

RIVER CITY HARDWOODS, INC. Active U1 | March 2001 SHAVER WOOD PRODUCTS INC. Active U2 | March 2001

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EDUCATION SPOTLIGHT

Congratulations to the Graduates of the 194th Class of the NHLA Inspector Training School

Seated left to right: Will Beshear, Roman Matyushchenko (Instructor), Laban Ehrhart Standing left to right: Zach Smith, Evan Vander Kelen, and Manny Ermac

he National Hardwood Lumber Association celebrated the graduation of the 194th class of the Inspector Training School on Friday, February 26, 2021. The students were the first to graduate from the new, 8-week NHLA Inspector Training School. In total, 5 students graduated: 4 students completed the 8-week Program and one completed the final module of the Online Training Program

NHLA Inspector Training School, I want you to know that the sky is the limit. Your company believed in you enough to send you here, to give you an opportunity. Now it’s time to return the favor. Do the job you are asked to do, keep a smile on your face, and work with precision. You have the skills to be promoted and take your career anywhere you want. Be humble, do your job, and you will succeed.”

NHLA Dana Spessert, NHLA Chief Inspector and ITS Dean of Education, welcomed and thanked the families, friends, and employers who supported the students during their time away from home.

Class President, Will Beshear of Beshear Sawmill addressed his fellow students during the ceremony saying, “I want to thank the NHLA staff for their dedication and hard work to the hardwood industry and for getting us here, graduation day. These eight-weeks have been hard with COVID and inclement weather, but we have made memories—memories that will stay with us forever. I want to thank my fellow students for going through this together. This is the beginning of a new chapter, and I want to challenge each of you to be your best self, not just the best lumber inspector, but your best you.”

Bruce Horner, with Abenaki Timber Corporation, and a graduate of the 108th class of Inspector Training School, gave the keynote address. Bruce is also a member of the NHLA Inspector Training School Education Foundation, sits on the ITS Board of Trustees, and serves as the ITS Committee Chairman. Bruce congratulated the graduates saying, “As a graduate of the

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“ . . . This is the beginning of a new chapter, and I want to challenge each of you to be your best self, not just the best lumber inspector, but your best you.” - Will Beshear, Class President

Class instructor, Roman Matyushchenko told the students he was proud of them, echoing Beshear, commenting, “Despite the inclement weather and everything being shut down, you still wanted to learn and you didn’t miss a beat.” GRADUATES OF THE 194TH CLASS WERE: • Will Beshear, Beshear Sawmill • Laban Ehrhart, Clear Lake Lumber • Manny Ermac, Greentree Forest Products, Inc. • Zach Smith, Tuscarora Hardwoods • Evan Vander Kelen, MacDonald & Owen Lumber Company

Outstanding individual awards recipients were as follows: • Will Beshear, ITS Educational Foundation Award for Highest Overall Average • Evan Vander Kellen, Howard Hanlon Award for Second Highest Overall Average • Will Beshear, Westside Hardwood Club Award for Highest Board Run Average • Zach Smith, Milt Cole Award for Best Attitude/Citizenship

Enrollment is now open for the 195th class, which begins at NHLA headquarters in Memphis, Tennessee, on June 14, 2021. To enroll or learn more about the Program, please visit www.nhla.com. W W W. N H L A .C O M

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LEGISLATIVE LOG

THE BIDEN TRADE AGENDA By DANA COLE, Executive Director Hardwood Federation

Canada, and Mexico (USMCA, previously known as NAFTA). She is well respected on both sides of the aisle, and her nomination is widely expected to be quickly approved by the Senate.

Currently, Chinese tariffs on U.S. hardwood are suspended, at least until September 2021. What happens in October is still in question. Attention now turns to the Biden Administration and how they will handle China—and the rest of the world.

In comments made during her confirmation hearings, USTR Tai gave every indication that the Biden Administration will continue to take a firm line with China. There are no immediate plans to remove existing U.S. tariffs on Chinese goods. There are indications that the Biden Administration will be tougher than the Trump team on issues like the environment and worker rights. However, it also seems that there are efforts to lower the trade tensions with other global partners. The Administration recently announced an agreement with the European Union to suspend tariffs on several items, including aircraft, food, and wine, that were imposed due to disagreements over subsidies provided to Airbus and Boeing. It is reasonable to assume that the Administration will work towards a compromise where they believe they can, without pulling back on their priority goals.

nternational trade, particularly U.S. trade with China, has been a dominant issue for the Hardwood Federation for the past several years. As the industry knows all too well, the Trump Administration’s tough approach to China and imposition of tariffs on Chinese imports led to retaliatory tariffs on U.S. hardwood lumber and log exports to China . . . a devastating development for many in the industry. While some sectors benefited from this approach to global trade negotiations, it has been a tough road back for many others.

President Biden’s pick for U.S. Trade Representative (USTR), Katherine Tai, is a well-known trade expert in Washington, D.C. She has years of experience within USTR as a senior staff member and most recently served as the chief trade counsel for the U.S. House Ways and Means Committee. In this role, she was key to gaining Democratic approval for the revised trade agreement between the U.S.,

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As required by Congress, the President released his 2021 Trade W W W. N H L A .C O M

Agenda on March 1, 2021. The trade priorities outlined in the report seek to: • Address COVID-19 and restore the economy by increasing vaccine production and distribution, ensure that frontline workers have access to personal protective equipment and increase domestic production of essential medical equipment. • Ensure that new trade policies and agreements include robust and enforceable labor standards and commitments to fight forced labor and exploitative labor conditions. • Include strong environmental standards, consistent with the development of market and regulatory approaches, in trade discussion to reduce greenhouse gas emissions and achieve net-zero global emissions by 2050. • Understand the projected impact of proposed trade policies on communities of color and consider those impacts before pursuing such policies. • Develop a comprehensive strategy to combat alleged unfair trade practices by China, including unfair subsidies to favored industries and the use of forced labor that targets Uyghurs and other ethnic minorities. • Partner with global allies to hold China accountable by implementing reforms to the World Trade Organization’s substantive rules and procedures to address inequality, digital transformation, and impediments to small business trade. • Seek to expand global market opportunities for American farmers, ranchers, food manufacturers, and fishers and enforce global agricultural trade rules. • Review of existing trade programs to evaluate their contribution to “equitable economic development.” As part of this review, the Biden Administration will seek to incorporate corporate accountability and sustainability into trade policies and comprehensive enforcement of trade agreements’ labor and environmental standards. Clearly, this is an ambitious set of priorities, and we will have to work hard to understand the implications for the hardwood industry and develop strategies of our own to make sure we benefit from the Administration’s global action. As always, this will include clear communication of facts to policymakers at all levels. We have already started the outreach process and will continue throughout the year. We will be reaching out to you too . . . for your help with YOUR members of Congress. So stay tuned, and be prepared to act! If we all work together, we can make a difference.

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Carolina Custom Floors Engineered nail-down Graf Custom Hardwood rift & quartered white oak select and better plank 7” Prefinished Pure white

Courtesy of National Wood Flooring Association

DOMESTIC MARKETS

LIFE AFTER COVID-19

s the world slowly returns to normal after a year of forced closures, social distancing, and quarantines, the hardwood industry has a lot to look forward to in 2021. Sure, we will still have social distancing and people wearing masks, but a robust housing market means a healthy 2021 for just about everyone in the hardwood lumber industry. In 2020, the spread of COVID-19 led to a surge in people working remotely, which led to many people moving to less expensive areas to build homes. Combine that with record-low mortgage rates, and we had a housing boom—a boom that should continue throughout 2021, though at a slightly lower rate. According to Virginia Tech, the Virginia Cooperative Extension, and the U.S. Forest Service, at the end of 2020, total housing starts exceeded their 61-year historical average, rising 5.8 percent to 1,670 thousand units. While 2021 housing forecasts aren’t quite as stout, they are still strong, at 1,440 thousand units.

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Bottom Left: Apex Wood Floors Solid nail-down Allegheny Mountain Hardwood Flooring livesawn white oak plank ¾” x 6”, 6’-12’ lengths Custom color multi-step European oil finish, matte, Light scrape

Courtesy of National Wood Flooring Association

The good news continues as home makeovers and remodeling are expected to see a four percent gain this year. The National Association of Home Builders (NAHB) has released projections showing strong demand for home remodeling to accommodate new home office space, remote learning, and generally spending more time at home. This gain will translate to all the hardwood industry sectors, including flooring, furniture, cabinetry, moulding, and millwork. Michael Martin, President & CEO of the National Wood Flooring Association (NWFA), reports that in 2020, COVID-19 caused manufacturing facilities to shut down, distributors to cease operations, retailers to close their doors, and contractors to cancel jobs as different regions shut down all non-essential businesses. W W W. N H L A .C O M

Fast forward to today, and circumstances have turned around significantly. Martin told NHLA, “While the pandemic continues to impact our lives, business is booming throughout the entire wood flooring supply chain. In fact, many NWFA members report that business is better than ever.” Peter Connor, the owner of Wisconsin-based WD Flooring, shares that sales for his company “are double where they were a year ago.” Even better, when asked about this year, he’s predicting similar results. “We expect sales to be double last year’s, provided we can find the human resources to fill orders, as well as source the raw material.” Connor’s comments reflect those of the entire industry: business is better than ever, but finding workers to fill job vacancies and sourcing raw materials to meet supply demands limits companies’ ability to reach their full production capacity. According to Martin, “Many in the industry believe the job vacancies are a result of COVID-related lockdowns. Across the country, travel was suspended, dining out was not possible, and simple forms A P R I L 2 0 2 1 H A R D W O O D M AT T E R S |

of entertainment like movies, concerts, and sporting events were canceled. These developments forced families to stay home, and after a few months of staring at their surroundings, their attention turned to sprucing things up, including their floors.”

We’ve Stacked

SE A L ER R ESISTA NT

THE DECK In Your Favor

Contractors in all regions report they are booked for months in advance and have to turn away work because they don’t have the staffing or materials to complete the jobs. Mike Somodean, Owner of Georgia-based MSCS, Inc., shares that supply shortages have been an issue. “We are having to secure orders far ahead of time to make sure we don’t have to delay a project because of the material not being available.” At the same time, material costs have gone way up. Lenny Hall, President and Owner of Florida-based Endurance Floor Company, says that “Plywood is nearly double from a year ago.” Manufacturers are anxious to fill demand, but raw material shortages are being felt industry-wide. Tommy Maxwell, President of Arkansas-based Maxwell Hardwood Flooring, laments that lumber supplies have been tightening for six months and “we can only make so much flooring per day.” The same is true for Kentucky-based Somerset Wood Products. Vice President of Sales and Marketing, Paul Stringer, reports that his company has “been in a backorder position for more than seven months.”

PROTECTS

And in Ohio, Vice President of Operations and International Sales at Sheoga Hardwood Flooring and Paneling, Barbara Titus, shared that her company has a backlog of 600,000 square : times are extensive,” she says. “Many AGAINST feet. “Currently, our lead sawmills reduced production in 2020, limiting their ability to respond to increased demand. Despite ramping up production, supply is far outweighed by current needs. Thus, prices are increasing rapidly, and availability is limited.”

Mold

Mildew

Michael Martin summed up what the hardwood flooring industry can expect, saying, “Across the entire supply chain, 2020 flooring sales were robust, with 2021 looking just as promising.”

Algae

Turning from flooring to furniture, the positive outlook continues, with consumer demand reaching record levels in 2020. A recent consumer survey from Furniture Today Strategic Insights showed that the pandemic reshaped spending priorities for furniture buyers, saying, “Spending is fueled by decreased expenditures in travel, apparel and health and wellness activities, such as gym memberships.”

and Moss

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sales@uccoatings.com www.uccoatings.com Buffalo | Portland | Seattle

UC Coatings_34037_ 1 AT T E R S | AMiller P R I LHardwood 2 0 2 1 HAd_3.5x8.5.indd ARDWOOD M

Many furniture companies are trying to determine how long home furnishing sales can maintain the current rates – especially after the vaccinated population increases and people return to their pre-pandemic spending. Furniture Today warns there may be a leveling in demands for home furnishings in 2021. It’s important to note that this does not mean furniture businesses will have a difficult 2021. People may spend less on furniture this year, but there will still be a high demand.

3/2/21 10:09 AM

5 GALLONS

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Popular purchases expected in 2021 continue to be bedroom and living room furniture. However, there is a noteworthy difference in how much money people are willing to spend between Baby Boomers, Generation X, and Millennials. Furniture Today reports that “Baby Boomers generally have higher purchase price expectations for furniture purchases than either of the two younger generational cohorts.” The expected growth in the housing market will have a positive effect on railroad ties as well. Freight is forecast to grow roughly 10% this year. As more homes are built, supplies need to be shipped at greater rates, and the need for coal increases. This results in high demand for railway ties. As published in Crossties Magazine, The Railway Tie Association (RTA) has forecasted a rise of 2.7% in Railway Ties.

“

While the pandemic continues to impact our lives, business is booming throughout the entire wood flooring supply chain. In fact, many NWFA members report that business is better than ever.”

Cabinetry is another sector of the hardwood industry projected to do well this year thanks to solid housing starts. The NKBA/John Burns Kitchen & Bath Market Index (KBMI) projects cabinetry sales will grow by 10.7 percent in 2021. The KBMI goes further to forecast 2021 revenues at $158.6 billion, a 16.6 percent increase over last year. There is no question that 2020 was one of the most challenging years businesses have seen in a long time. But the first quarter of 2021 is quickly coming to an end, and the hardwood industry is experiencing growth that we have sorely missed over the past several years. Sources: https://www.woodproducts.sbio.vt.edu/housing-report/casa2020-12a-december-main.pdf https://www.woodproducts.sbio.vt.edu/housing-report/casa2020-12b-december-econ-cond.pdf https://www.fcnews.net/2021/02/housing-market-continuesits-positive-impact/ Jan/Feb 2021 edition of CrossTies Magazine - Outlook for Crosstie Demand. https://lsc-pagepro. mydigitalpublication.com/publication/frame. php?i=692821&p=&pn=&ver=html5 https://www.furnituretoday.com/research-and-analysis/232736/ https://www.remodeling.hw.net/article/cabinetry-andcountertop-forecasts-and-trends_c https://www.kcma.org/news/press-releases/january_ 2021_trend_of_busines_press_release https://nkba.org/research/nkba-2021-kitchen-bathmarket-outlook/ W W W. N H L A .C O M

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INDUSTRY INSIGHT

Can Your Storeroom Be The Key To Success? By MARY MATHEWS and TAMMY BECK, SII Dry Kilns, Inside Sales Representatives

t’s Sunday morning, and your heat valve is malfunctioning, and your kiln temperatures are all over the place. Even if you can get word to your kiln company, no shipments run on Sundays. The way we see it, you have four options: • ONE: Monday morning, you alert your kiln company, and luckily, they have the exact one you need on their shelf, and they send it UPS next day. You receive the valve on Tuesday. Shipping cost: around $400. You were down for 3 days. • TWO: To avoid shipping costs that high, you ship it UPS ground. It takes UPS 3-4 days depending on where you are located, as well as weather conditions. Shipping cost: around $50. You are down 5-7 days. • THREE: Unfortunately, the kiln company does not have the valve you need in stock. Lead times can vary from 5-20 days for the manufacturer to build some valves. Now you are looking at being down 5-20 days on top of a next-day drop ship charge. • FOUR: Your kiln operator has the foresight to see that if this valve went out, you would be in trouble. So, he/she went ahead and ordered one with no rush, ground shipping, to keep on your shelf. You were able to replace the valve on the Sunday it went down, and no time was lost. In addition, you also maintained the proper conditions in your kiln to avoid lumber degradation. Obviously, the last option is the best solution to your problem. “I can confidently say that the happiest kiln operators are the ones who keep spare parts,” said Tammy Beck. “They are not bound by shipping or weather conditions, items being out of stock from vendors, and outrageous next day shipping charges.” Examples of items that can shut you down: RTD temperature probes, valves, actuators, and electrical/control components, are easy to keep on your shelf. Other items such as motors and fans will not necessarily shut you down, but due to having to ship by pallet, you are throwing away money by ordering one at a time.

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“For best success, try to keep your own shelf of spare parts and look towards the kiln company as your back-up storeroom” For example, if you order one 5 HP motor, you are looking at around $300 to ship the required pallet it needs to go on. If you order multiple motors at once (usually up to 6 motors on a pallet) your shipping cost for that same pallet is around $450 compared to $1,800 (6 motors) in shipping charges if shipped individually Very possibly, the most important consideration should be the cost for dry kiln downtime. For a typical 50,000 BF dry kiln, the lost revenues and missed opportunities, based on species being dried, can vary from $500 to $1000 per day. When considering costs for carrying spare parts, the potential for lost revenue can be a very persuasive discussion point for operators with management. “We do our best to order and keep items on the shelf for all customers. But sometimes, even we run into vendor shortages or backorders. For best success, try to keep your own shelf of spare parts and look towards the kiln company as your back-up storeroom,” stated Mary Mathews. Contact either at 1-800-KILN DRY or by email at kilninfo@siidrykilns.com. W W W. N H L A .C O M

RULES CORNER

NHLA Operations Management by Amanda Boutwell

Q &A

We recently sat down with NHLA Chief Inspector Dana Spessert for a conversation about the NHLA Operations Management Program.

Q: What is the goal of the Operations Management Program from NHLA?

A: Our goal is to help sawmills manufacture more lumber out

of their logs. It is important to note that the softwood industry has embraced quality control measures for decades, primarily because they had very tight margins—defined as the difference between what they paid for raw materials (logs) and the amount of money they would receive from selling the lumber. With margins so tight, they knew they had to control every aspect of the process. They wanted to maximize their yields throughout the whole operation, and they called that process quality control. But quality control wasn’t their focus. Their focus was to make more money. The hardwood industry can do the same thing. If we focus on every aspect of the operation, we can improve the profitability from logs to lumber or green lumber to kiln-dried lumber. Every

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point of the sawmill that produces the end product needs to be evaluated. Those are the points that can cost you a lot of money. Our Operations Management Program is designed to assess those points, measure, and help establish a specific tolerance that the machine or employee should stay within.

Q: What points do you measure as part of the Operations Management Program?

A: We measure everything from log scaling to debarking, in-

cluding the minimum opening face, lumber size control (thickness), edger operation, trimmer, lumber inspection, and even package quality.

Q: How could packaging improve yield? A: Well, in that case, it is more about aesthetics – customer

satisfaction. Take a tin can, for example. If you have a tin can at W W W. N H L A .C O M

the grocery store with dents, you don’t buy it. You slide it away and purchase the one that has no imperfections. People feel the same way about lumber. If it looks good, people feel it is good. Also, with lumber inspection, it’s not only grades but tally as well. So, we’re monitoring how they tallied the number to get the correct footage.

Q: So, is the edger a quick fix?

Q: In your experience, where do most problems begin in a

A: In most cases, yes. But it also requires long-term monitoring

sawmill operation?

A: When certain species (like red oak or white oak) have large

profit margins, some people can become wasteful. They enter a mindset where they don’t care what they are wasting because they are making money. But when times get tough, they have a hard time turning an acceptable profit. It’s crucial that you maximize your profitability at every stage, in all circumstances, whether it’s good times or bad. And if you’re maximizing your profitability when times are good, you will carry that right into the bad times, and you will have fewer bad times because you’re always maximizing the value. This will sound controversial, but the goal of any hardwood operation is not to produce lumber. The goal should be to make money. If you switch your focus to making money, you’ll produce even more lumber. Our Operations Management Program can help you find the spots that will make you more money.

Q: Could you break down what happens during the Operations Management Program?

A: Usually, the first thing we do is go directly to the edger outfeed

– where the waste trough is going into the chipper. This is the best way to tell if there is a problem with the edger or edger operator. We look for waste that should have been left on the board and sold as lumber. Then we start looking at other areas and answering questions. Is the problem with the edger setup? Is it merely that the operator needs more training? Is it an optimized edger or a mechanically-ran edger? There are a lot of factors we consider.

Q: Is the edger operator typically the problem? A: The operator is usually not the problem. But if that is the case,

we can provide the training needed, because, in the end, it is really about lumber grades. To determine your profitability, you have to sell your material, and the only way you can sell it is by grading it. Your measurement is what tells you how valuable the lumber is. We learn what the finished product should be, and we train operators on how to measure value by grading. The goal is to make highervalued lumber so it’s more profitable.

Q: What is the next step? A: Next, we look at how they are opening the log gap – minimum

opening face. Are they opening too big or too small? We help them to be more decisive on that. Another significant component is the thickness measurement. That is why we measure the thickness of the

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lumber at each machine center to determine whether they’re within standard tolerance. This is extremely important. For every tenthousandths of an inch of over thickness, it’s 1% yield.

to keep it that way. The thickness measurement needs to be done on a regular basis. And consistently from that point forward. To capitalize on the profitability of thickness measurement, it has to be continually monitored. Most hardwood mills aren’t doing that.

Q: Okay, how does a company consistently measure thickness?

A: We can help them do that. We can help give them the guides to achieving that. So, measuring and monitoring are only part of getting it done. You measure and monitor it; then, you look for ways to improve it.

Q: On average how much money in lost profits can you recover, and how well-received is the program?

A: Over the course of two years, we have conducted more than 480 tests and helped companies save an average of $400,000 annually.

Q: What makes NHLA an expert in Operations Management?

A: The industry should trust our experience. I developed and honed

a quality control program at a previous employer. I spent nine years managing a team of six quality control technicians and their main job was to measure the points. By doing that, we were able to save the company over a million dollars a year. We have a proven system that works, and if implemented correctly, it will work for any company. I have trained the NHLA National Inspectors this quality control measurement system. Collectively, we have seen an untold number of hardwood lumber operations, from logging and sawmills to flooring and furniture manufacturing. We’ve had more experience on various operations than most anyone else in the world. Our team of National Inspectors has more experience than just hardwood lumber grading. With this experience in hand, we can go through one pack of lumber and identify many problem areas within an operation – not just problems with grading the lumber.

Q: How can a company find out more about the program or get signed up?

A: They can email me at d.spessert@nhla.com or give me a call at 901-399-7551.

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

14-17

14-August 6

Intro to Hardwood Lumber Grading

Inspector Training School 195th Class

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

JUNE

Venue: Yoder Lumber Co., Inc. Millersburg, OH Instructor: Mark Depp, NHLA National Inspector

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

16-27

AUGUST

SEPTEMBER

NOVEMBER

30-Sept. 1

13-Nov. 5

29-Dec. 10

Inspector Training School Online Training Program MODULE 1

Intro to Hardwood Lumber Grading

Inspector Training School 196th Class

Inspector Training School Online Training Program MODULE 1

Two weeks of hands-on training.

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

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 Memphis, TN Instructor: Roman Matyushchenko, ITS Instructor and Associate Dean of Education

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Two weeks of hands-on training.

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 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 AMERICAN HARDWOOD INDUSTRIES The American Hardwood Industries Waynesboro, VA sawmill is hiring a hardwood lumber inspector. This is a great opportunity for an individual with prior lumber grading experience. This person would be grading green and/or dry hardwood lumber with an emphasis on quality assurance. This is a full-time opportunity working for a world-class hardwood lumber manufacturer. Responsibilities • Applies NHLA grading rules to inspect lumber at production rates, while maintaining the required grading accuracy. • Communicates with sawyers, machine operators, and maintenance to ensure a consistent flow of quality lumber. • Works safely to help maintain a safe work environment. Skills & Experience Required • NHLA certified or equivalent experience.

HARDWOOD LUMBER INSPECTOR NELSON HARDWOOD LUMBER CO., INC. Nelson Hardwood Lumber Co. is seeking a full-time Lumber Inspector to grade hardwood lumber on a green chain, using NHLA rules. Skills & Experience Required NHLA grading certificate required. Salary & Benefits Salary commensurate with experience. Benefits include paid vacation, health insurance, 401(k) retirement plan, paid life insurance. How to Apply Send your resume to: nelsonhw@mhtc.net Nelson Hardwood Lumber Co., Inc. P.O. Box 346 | Prairie du Chien, WI 53821 608-326-8456 | www.nelsonhardwoods.com

• Minimum of one (1) year experience grading green and kiln-dried domestic lumber - this is not an entry-level position.

HARDWOOD LUMBER INSPECTOR BILLSBY LUMBER COMPANY Billsby Lumber is seeking a hardwood lumber inspector to inspect green lumber on green chain, making sure lumber is correctly piled and tallied. This position is 40 hrs per week / Monday -Thursday.

• Experience and ability to work in a fast-paced manufacturing environment with a focus on safety and quality.

Skills & Experience Required • Must be an NHLA graduate or equivalent.

Salary & Benefits • Competitive Pay

• Must be able to apply NHLA grading rules with the ability to upgrade.

• Full Time

• Full Plan of Benefits.

Salary & Benefits Excellent pay, Blue Cross Blue Shield health insurance, life insurance, IRA retirement, clothing allowance, paid vacation, paid holidays, and daily production bonus.

How to Apply Send your resume to: bkelley@ahiwood.com

How to Apply Send your resume to: info@billsbylumber.com

American Hardwood Industries 567 N. Charlotte Ave. | Waynesboro, VA 22980 540-946-9170 | www.ahi.workbrightats.com

Billsby Lumber Company 2725 E.Larch Rd | Harrison, MI 48625 989-539-9842 | www.billsbylumber.com

• Possess the ability to accurately apply NHLA rules.

• First Shift

HARDWOOD LUMBER INSPECTOR JONES LUMBER COMPANY Jones Lumber Company is searching for a Lumber Inspector to join our growing team. Topnotch candidates will have the talent to work on a fast-paced production line as a safe and skilled team member grading lumber.

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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.

• Exceptional attendance record. Responsibilities • Use visual judgment and knowledge to inspect and grade lumber: determine species, grade, and volume according to NHLA lumber • Ability to work at a fast pace. grading rules. • Ability to lift 50 lbs. • Respectfully and effectively communicate with other team members. • Maintain a safe work environment and abide by all safety and company policies. Skills & Experience Required • High school diploma or GED. • Skilled using the NHLA rules. • Two or more years of experience as a Lumber Inspector. • Outstanding attention to detail.

• Excellent verbal and written communication skills Salary & Benefits Jones Lumber offers a great benefits package including health, dental, vision, life, and many more elective coverages. 401K with 5% company match and company paid Short Term Disability. Vacation and holiday pay Competitive pay based on experience. How to Apply Send your resume to: stan.morgan@joneslumberco.com Jones Lumber Company 3 Dave Levite Rd | Natchez, MS 39120 601-445-8206 | www.jones.com

• Team-work focused.

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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.

HARDWOOD LUMBER INSPECTOR ST. MARYS LUMBER COMPANY (a division of Bingaman & Son Lumber, Inc) Bingaman & Son Lumber, Inc., a leading wood products manufacturer, is seeking a full-time Lumber Inspector to join the team at our St. Marys Lumber Company division in St. Marys, PA. This critical position is responsible for the accurate inspection and grading of green hardwood lumber according to NHLA grading rules, with an emphasis on quality assurance. Skills & Experience Required • NHLA grading certificate required. • 3 to 5 years of green lumber grading experience preferred. • Looking for an enthusiastic individual who is looking to contribute to a team effort. • Must be able to stand for long periods. (Four 10 hour shifts per week.) Salary & Benefits We offer competitive wages and some of the best benefits in the region - health insurance, 401(k), stock options, dental, vision, life, vacation, etc. E/O/E How to Apply Send your resume to: abowersox@bingamanlumber.com St Marys Lumber Company 153 Aviation WaySt. | Marys, PA 15857 MILLWRIGHT JONES LUMBER COMPANY Jones Lumber Company is searching for a Millwright to join their growing team. This role creates value by ensuring machine reliability through troubleshooting and preventative maintenance techniques on industrial plant equipment. This position is a vital resource for the company’s ongoing success and productivity. Responsibilities • Troubleshooting, repairing, and maintaining industrial machinery.

• Working with the operations and maintenance teams to identify and prioritize maintenance needs. • Helping meet or exceed production and quality goals while optimizing equipment to reduce waste. • Adhering to all company safety and environmental guidelines, policies, and procedures and actively participating in the safety program. Skills & Experience Required • High school diploma or GED. • One (1) year or more of experience working in a mechanical maintenance position within a manufacturing, industrial, or military environment. • Experience working with hydraulic and pneumatic systems. • Experience using a cutting torch and welding. • Experience troubleshooting issues with bearings, chains, sprockets, gearboxes, and conveyors. • Experience reading and understanding mechanical drawings. • Experience with the precision alignment of motors, couplings, bearings, pumps, and lubrication Salary & Benefits Jones Lumber offers a great benefits package including health, dental, vision, life, and many more elective coverages. 401K with 5% company match and company paid Short Term Disability. Vacation and holiday pay Competitive pay based on experience. How to Apply Send your resume to: stan.morgan@joneslumberco.com Jones Lumber Company 3 Dave Levite Rd | Natchez, MS 39120 601-445-8206 | www.jones.com

• Installing and aligning new equipment. • Performing periodic maintenance routines including lubricating machine tools and equipment for improved reliability and up time. • Maintaining accurate maintenance logs including labor hours and critical preventative maintenance findings.

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April 2021 Hardwood Matters

Articles inside

Rules Corner

Life After Covid

Industry Insight

Education Spotlight

Legislative Log