August 2015 Hardwood Matters

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NHLA CHINESE CULTURE TOUR T H E O F F I C I A L P U B L I C AT I O N O F T H E N AT I O N A L H A R D W O O D L U M B E R A S S O C I AT I O N S T R O N G R O O T S . G L O B A L R E A C H . | W W W. N H L A . C O M


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DEPARTMENTS 9 Memorial 9 Foundation Focus 16 Legislative Log 18 Rules Corner

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READER SERVICES 6 President’s Message 8 CEO’s Message 9 Inside NHLA 20 Job Board 22 Calendar

12 Photo Courtesy of AHEC

IN THIS ISSUE 10 The NHLA Grading Rules Presented in Hanoi 12 NHLA Chinese Culture Tour Recap

CONTENTS W W W. N H L A .CO M

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

THE MISSION OF NH LA To serve NHLA Members engaged in the commerce of North American hardwood lumber by: maintaining order, structure and ethics in the changing global hardwood marketplace; providing unique member services;

August 2015 ▪ Issue 159 National Hardwood Lumber Association PO Box 34518 ▪ Memphis, TN 38184-0518 901-377-1818 ▪ 901-382-6419 (fax) info@nhla.com ▪ www.nhla.com

EXECUTIVE COMMITTEE

MISSION LEADERS

Pem Jenkins Turn Bull Lumber Co. President

Skip Holmes Thomas & Proetz Lumber Co. Unique Services

Brent Stief Huron Forest Products Vice President

Darwin Murray McClain Forest Products Structure

Scott Heidler Heidler Hardwood Lumber Co. Past President 2012-2014

Charlie Netterville Fred Netterville Lumber Co. Membership & Networking

promoting North American hardwood lumber and

Mark Barford, CAE Chief Executive Officer

Jack Shannon J.T. Shannon Lumber Co. Industry Advocacy & Promotion

advocating the interest of the hardwood community

NHLA STAFF

Gary Swaner Swaner Hardwood Co. Rules

in public/private policy issues; and providing a platform for networking opportunities.

Mark A. Barford, CAE Chief Executive Officer m.barford@nhla.com Kristina Bran Digital Media Manager k.bran@nhla.com

About the Cover: Shown on this month’s cover is a view of Hong Kong from Victoria Peak taken during the NHLA Chinese Culture Tour.

Melissa Ellis Graphic Designer m.ellis@nhla.com Renee Hornsby Director of Communications/Editor r.hornsby@nhla.com

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

Desirée Freeman Controller Rich Hascher Inspector Training School Instructor

ADVERTISER INDEX

John Hester Director of Membership

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AFS Energy Systems

IFC

Pike Lumber Company, Inc.

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Dunavant Global Logistics Group

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Rossi Group

IBC 15

eLIMBS, LLC King City/Northway Forwarding

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The Jacobs Team

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NYLE Systems, Inc.

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UC Coatings Corporation

BC

NHLA Annual Convention

19 USNR

Dana Spessert Chief Inspector

COMMITTEE CHAIRS Dave Bramlage Cole Hardwood Membership Dan Caldwell Atlanta Hardwood Corporation Hardwood Advocacy Jim Reader Downes & Reader Hardwood Continuing Education/ Member Services Orn Gudmundsson Jr. Northland Corporation Communications & Marketing Scott Heidler Heidler Hardwood Lumber Co. Nominating Darwin Murray McClain Forest Products Finance Bucky Pescaglia Missouri-Pacific Lumber Co., Inc. Inspector Training School Joe Snyder Fitzpatrick & Weller, Inc. Rules Brent Stief Huron Forest Products Strategic Planning Stephanie VanDystadt DV Hardwoods Convention

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PRESIDENT’S MESSAGE

THE END OF SUMMER BRINGS CHANGE AND OPPORTUNITY The summer is almost over and it is amazing how quickly the hardwood lumber markets can change in the span of twelve months. I have three discussion points for this month. First, hang in there-markets will improve by mid-2016. Second, the United States Department of Agriculture (USDA) has put forth for comment the “REVISED” Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order (Hardwood Check-Off) and as your President, I encourage every member that is an eligible participant to learn about this and send in a comment. Third, I want to remind every member of the opportunities for networking at the NHLA Convention and encourage you to attend. The Markets. The most recent Investment Trends Research (ITR) report for July states that we are in for a bumpy, uneven road until early 2016. The report also states that we are turning a corner in the U.S. economy and the lag for us to see those results in the real world is approximately six to eight months. At the same time, the ITR is concerned about China’s slowdown being longer and deeper than anticipated. I encourage each member to buckle up and plan accordingly to get through the market turbulence until the middle of 2016. The Hardwood Check-Off. The proposed Hardwood Check-Off is a very controversial topic within the industry with strong feelings and beliefs on both sides of the issue. Given the differing opinions within the membership, the NHLA board has voted to remain neutral and not take a position for or against the proposed Check-Off. It is nonetheless important that each member become informed about the Check-Off and place a comment in the Federal Register. The comment period is open until September 7, 2015. Comments will guide the USDA on what is the best outcome for our industry. For that reason, I believe that each eligible participant has a responsibility to comment, thinking critically and carefully about the best outcome for our industry. I also ask that we all conduct ourselves professionally and respectfully when the Check-Off is discussed and debated, as we get closer to a vote. NHLA Convention. With the markets catching a bad cold (some might say the flu) and with the potential for a vote on the Hardwood Check-Off sometime in the near future, I encourage each member to come and take advantage of the networking and educational opportunities in Nashville at the NHLA Annual Convention October 7-9, 2015. There are few opportunities in our industry where you can meet a good number of your customers, suppliers and vendors in one place. If you attend and work the meeting the return to your business will far exceed the cost of attendance, I hope to see you there. In closing, be aware of the potential for markets to change over the next six to nine months and plan accordingly. Pay attention to the debate surrounding the Hardwood Check-Off and the possible vote. And finally, come to Nashville and put

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I encourage each member to buckle up and plan accordingly to get through the market turbulence until the middle of 2016. yourself and your company ahead of the pack by taking advantage of the networking opportunities afforded by the NHLA Convention. Thanks again for the privilege of serving as your President! Pem Jenkins

Pem Jenkins, NHLA President Turn Bull Lumber Company

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Jeff Meyer, President of Baillie Lumber Co., Inc.

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CEO’S MESSAGE

FUTURE HARDWOOD MARKETS IN CHINA, IT’S COMPLICATED… BUT PROMISING In this month’s edition of Hardwood Matters you will read and see photos of our very successful “Chinese Culture Tour” recently completed. Members who joined us had many eye opening experiences about the way the Chinese live, travel and do business in a country of 1.4 billion people. One of the biggest challenges the group encountered was knowing what to eat, but nobody starved so that must not have been too big an issue. One of my purposes in returning for the 24th time to China was to understand the ever-changing market demand for North American hardwoods. During my years of travel to China, I have visited the lumber markets and spoken with those companies actively trading. Five years ago, I witnessed firsthand the Chinese market shift from a production and export market to a consumer market. Now with exports consuming 50 percent of grade hardwood lumber production, and 50 percent of those exports going to China, it is clear that what happens in China is crucial when anticipating future North American hardwood lumber markets. The following are personal anecdotal observations about the Chinese market gleaned from my own conversations, and listening to many of the fine speakers from the American Hardwood Export Council Southeast Asia and Greater China Convention held in Nanning, China. • There is more than enough hardwood lumber in China for the short run. Many buyers talked of needing several months to reduce their inventories. • Demand for hardwoods is still strong, but with prices still adjusting, there is some hesitation to buy ahead, at least until the market stabilizes • Some of the newer Chinese companies who delved into the hardwood business hoping to take advantage of profitable markets are now unhappy with the price variances, typical of the hardwood industry, and are exiting the business; which is causing some disruptions, which again will take a few months to resolve. • General slowdowns have not been universal for all species and all areas. China is a large country and there are market variances depending upon location and type of product. Also the demand for higher grades seems to be increasing, denoting a shift in market preference. • There is a large portion of the Chinese population that still needs to be introduced to North American hardwoods, meaning the long term potential for growth is strong. The Chinese market has grown more complex. The number of companies buying North American hardwood has increased dramatically over the past few years; and those buyers are a diverse collection of hardwood users and distributors with various requirements and needs. NHLA is proud to serve the 32 Chinese companies who have joined the Association as Partner members and work with us to educate lumber buyers about the beauty and versatility of North American hardwoods. One Partner member reported its customer sales network base to be more than 3,000 companies. 8

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The Chinese market has grown more complex. The number of companies buying North American hardwood has increased dramatically over the past few years; and those buyers are a diverse collection of hardwood users and distributors with various requirements and needs. What a great partner for NHLA to have as the North American hardwood industry expands further into a market with unlimited potential.

Mark Barford, CAE, Chief Executive Officer 901-377-1082 direct | m.barford@nhla.com W W W. N H L A .CO M


FOUNDATION RECEIVES $15,000 DONATION FROM ANONYMOUS SOFTWOOD DONOR

FOUNDATION FOCUS

By CRYSTAL OLDHAM The Hardwood Forest Foundation recently received an anonymous donation of $15,000 from a softwood lumber company. This donation comes at a key time for the organization as it seeks to better intertwine itself with the softwood community, as a means of encompassing the entire forest in its educational curriculum. “Since 1989, the Hardwood Forest Foundation has worked under the guidance and support of its parent organization, National Hardwood Lumber Association (NHLA). Today, the relationship remains as strong as ever; however, over the past few years, the Foundation’s initiatives have matured, grown and found incredible success that has put it at the forefront of forest related educational outreach, thus highlighting the obvious,” said Crystal Oldham, Foundation Executive Director. And the donor agrees. “Over the past year, the Foundation has been working closely with softwood

IN MEMORIUM: JOHN (JACK) FINLAY McCRAKEN Jack McCraken passed away peacefully on June 22, just a few months shy of his 92nd birthday, predeceased by his parents, Andrew (1958) and Helen (1965). He will be lovingly remembered by Bruce McCracken (Bonnie) and Louise Stewart (Rick) and many other cousins around the world. Loved by his family, admired and respected by friends and colleagues, Jack was past Executive Director of The Canadian Lumbermen’s Association and former Regional Commissioner and Regional President for the National Capital Region of Scouts Canada. Jack encouraged Scouts, Venturers and Rovers to attend World Jamborees and promoted their participation in Third World development projects. Funeral service was held in the chapel of Hulse, Playfair & McGarry Funeral Home in Ottawa. Donations in Jack’s name to The Alzheimer Society of Canada or Scouts Canada, Camp Opemikon, would be greatly appreciated.

industry representatives and has maintained a presence at key softwood meetings throughout the country. Softwood folks can’t help but be impressed with the Foundation’s Truth About Trees curriculum and many have stepped-up to help support the program. Our company isn’t alone…but the Foundation needs much more support as it continues its rapid growth and penetration into schools,” the donor said. “Also it is my hope that several other forest product companies will stepup and help support the Foundation and maybe get a SOFTWOOD VERSION of the Truth About Trees video! This will go a long way to offset the myth that clear-cut is bad for softwoods, where in fact it is necessary to the proper management of a softwood forest.” Since last summer, the Foundation has attended NAWLA’s Trader’s Market, NAWLA’s Leadership Summit, NAWLA’s Regional Meeting in Boston and most recently the NELMA Annual Convention. Founded in 1989, the Foundation, a 501c3 organization, has been involved in a variety of educational programs and activities throughout the United States and Canada. Since its creation, NHLA has supported its efforts and hosted its office in the NHLA headquarters, located in Memphis.

NHLA ATTENDS TIMBER 2015 The Pennsylvania Forest Products EquipINSIDE NHLA ment and Technology Exposition, known as Timber 2015, is a biennial trade exposition hosted by the Penn State College of Agricultural Sciences and the Pennsylvania Forest Products Association. The Show, held June 5-6, allows PFPA members to showcase products and machinery while giving live demonstrations on virtually every aspect of the forest products industry. “I was extremely impressed by the sheer magnitude of some of these machines” said John Hester, Director of Membership. “Getting them in and out of the woods would be process enough. Let alone doing your job once you got in there.” A leading hardwood-producing state, Pennsylvania is home to more than 2,100 forest-product companies and 500,000 forest landowners.

Condolences/tributes/donations at: www.hpmcgarry.ca

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US Congressman Glenn Thompson and NHLA board member Bob Rorabaugh of Rorabaugh Lumber Co, Burnside PA


THE GRADING RULES PRESENTED IN HANOI

Tim Kassis, Kretz Lumber; Sharon Shek, AHEC; Tom Inman, AHMI and Dana Spessert, NHLA

By Michael Buckley

OVER 170 DELEGATES ATTENDED A

program of four expert speakers on ‘Sustainable American Hardwoods’ jointly organized by AHEC and the Vietnam Architects Association (VAA); and supported by the Vietnam Timber and Forest Product Association (VTFPA) as well as several others including the Vietnam Chamber of Commerce (VCCI), the furniture association HAWA and ViFores.

“A WIN-WIN MODEL FOR THE USA AND VIETNAM” The hardwood trade “is a winwin model for the U.S. and Vietnam” said Mark Dries, Agricultural Counselor, Office of Agricultural Affairs, U.S. Embassy, Hanoi, Vietnam opening the seminar. He suggested that the U.S. $6.2 billion level of furniture exports by Vietnam had greatly contributed to the rapid increase in U.S. hardwood exports to Vietnam, now the number two market in the world after China. He pointed out that this was the 20 year anniversary of normalized relations between the U.S. and Vietnam. 10

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Formerly it was the furniture industry that drove the business but now interiors and construction are also increasing which makes us excited and supportive of this development. Responding, Mr. Nguyen Tan Van, Chairman, Vietnam Architect Association, said that Vietnamese had a long term tradition to use wood in family life and this would increase as the economy and standard of living improved. “We have the processing facilities in place and now we look forward to better understand American hardwoods in this forum,” he concluded. Welcoming delegates John Chan, Regional Director of AHEC based in Hong Kong, pointed out that this was the third event held by AHEC in Hanoi over the years, and he thanked VAA president Mr. Van and ViFores Vice Chairman Mr. Quyen and all the supporters for their involvement and attendance at this latest seminar. The presentations were opened by Ms. Jennifer Brand, Chairman of AHEC with ‘U.S. hardwood in the Global Market’. “AHEC closes the gap between six sectors in this industry, especially in less well informed markets” Ms Brand said and then raised the simple question “Is there enough?” Mr. Tom Inman, President of Appalachian Hardwood Manufacturers, Inc. in High Point, W W W. N H L A .CO M


North Carolina, provided adequate answers with his introduction of the ‘U.S. Hardwood Resource’. “THE MATERIAL FOR THE 21ST CENTURY” Making his debut presentation in Vietnam, Mr. David Venables, European Director of AHEC, provided inspiration from a whole range of ‘Architectural Applications of U.S. Hardwood’ from the European office of AHEC. He first discussed the reasons why he believes in the material as the right choice for sustainable design and is the material for this 21st century. We now have a better understanding of it, although the timber industry needs to work in partnership with architecture. U.S. hardwoods are growing much faster than harvested volumes and they are versatile and perform in terms of strength and durability. Their aesthetics are inspiring and they are renewable, sustainable and well managed. “And of course they are low impact and store carbon” he concluded. Dana Spessert, Chief Inspector of the National Hardwood Lumber Association (NHLA) gave his usual, very well-illustrated, explanation of the NHLA Grading Rules in such limited time. Dana is a master of his art in Asia having now made so many inspections and presentations for NHLA in China and all over SE Asia. He confirmed the availability of grading advice and inspection services from NHLA and advised that the NHLA Grading Rule book will be translated into Vietnamese in the coming year. This is one of W W W. N H L A .CO M

Top: AHEC delegates with Mark Dries, Agricultural Counselor, U.S. Embassy Hanoi (right) Bottom: Dana Spessert, Chief Inspector of NHLA the many aspects of cooperation with AHEC in Asia and elsewhere. Dana invited delegates to attend the forthcoming NHLA Convention in Nashville in October. The recently published issue of ‘International Hardwood Matters’ by NHLA was distributed at the seminar and later in the week it was included in the packs for delegates at AHEC’s Convention in Nanning, China.

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NHLA CHINA CULTURE TOUR

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n June 18, NHLA embarked on a Chinese Culture Tour with 15 member participants in tow. The delegation included: Wally Fields of Walter Fields Lumber Company; Greg Fitzpatrick of Fitzpatrick & Weller, Inc.; Jerry Hollis, Jr. of Hassell & Hughes Lumber Company; Brian Hoschek of JKW Lumber Company; Max Mallet of Kennebec Lumber Co.; Alvaro Rafael Orozco of UC Coatings, LLC; Shaun Rowe of Aurora Timberland; Ray Shepard Jr. of Oaks Unlimited, Inc.; Jeff Skelton of Hassell & Hughes Lumber Company; Dr. Bob Smith of Virginia Tech; Jim Spellman of Spellman Hardwoods, Inc.; John Steverson of Thompson Hardwoods, Inc.; Ray White and Ray White II of Harold White Lumber Inc. The first stop for the delegation was a few days of acclimation in the beautiful city of Hong Kong. Cultural events in Hong Kong included a trip to Victoria Harbor for the Dragon Boat Carnival where thousands of

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spectators came out to witness the top dragon boat athletes compete for three days! Visits to the Stanley Market, Kowloon and Victoria Peak rounded out the short time in Hong Kong. An official reception and welcome dinner sponsored by the American Hardwood Export Council officially kicked-off the Culture Tour. The delegation left Hong Kong and traveled by train to the second destination city of Guangzhou. In Guangzhou, the group explored the Guangdong Folk Arts Museum, Chen Clan Ancestral Hall, Lychee Bay, Shangxiaiju Pedestrian Street and the Jade Market. A day was also spent in the Dongguan lumber market and visiting NHLA partner member Tianrun International, who treated the group to a facility tour, lunch and air-conditioning. After three days in Guangzhou, the NHLA delegation traveled by plane to Nanning, the capital of the Guangxi Zhuang Autonomous Region to attend the AHEC Greater China and Southeast Asia Convention. In 2001, there were just over one million people in Nanning, a city relatively unknown in the west, close to the Vietnam border and nestled among verdant hills in a sub-tropical region. W W W. N H L A .CO M


Today there are almost 7 million residents and construction is everywhere, with hundreds of modern apartment blocks and new shopping malls and others being built – and many more to come. The two-day convention boasted 400 delegates that included 300 Chinese and about 40 AHEC member companies.; most of which had small booths at a mini trade show to promote their products during the networking reception that ended the event. The final stop on the NHLA Culture Tour took the delegation to Shanghai, the largest and wealthiest city in China. This modern metropolis with its rich heritage of ancient Chinese culture had much to see and do. Delegates explored the Bund and the Huangpu River area, Nanjing Road for bargain shopping and the Yuyuan Garden, the largest of Shanghai’s ancient gardens with Ming and Qing architectural styles. While in Shangahi, NHLA and tour delegates participated in the inaugural Sylvawood Show, a highly focused expo on solid wood materials bringing the latest happenings in wood design, architecture and technologies in engineered wood structures in Asia. Attractions included more than 70 exhibitors from major supply regions of the world, led by the USA and the American Hardwood Export Council pavilion with 25 member companies exhibiting. W W W. N H L A .CO M


After three days in Guangzhou, the NHLA delegation traveled by plane to Nanning, the capital of the Guangxi Zhuang Autonomous Region to attend the AHEC Greater China and Southeast Asia Convention.

The Sylvawood opening ceremony recognized VIP guests from AHEC, American Softwoods, Canada Wood, French Timber, Sweden, Malaysia and several Chinese organizations, including the Shanghai Timber Trade Association, its National Hardwood Council and the Branch Wood Association of Fujian Companies. During the show there was a series of very well attended NHLA hardwood grading demonstrations. These were highly popular with an encouraging level of participation, led by NHLA National Inspector Roman Matyushchenko and translated by NHLA China-based representative Jonny Wang. NHLA would like to thank the members who attended the inaugural Culture Tour and made the two week trip an enjoyable adventure; as well as the entire AHEC Hong Staff including John Chan, Regional Director and Mike Snow, Executive Director. NHLA would like to extend a special thank you to Mr. Marco Chan of AmAsia Corporation whose knowledge and friendship helped to make the trip a huge success. The Association is considering a return trip in 2016. Individuals interested in participating next year should contact Renee Hornsby at 901-399-7560 or r.hornsby@nhla.com. 14

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LEGISLATIVE LOG

LOOKING FORWARD TO FALL By Dana Cole, Executive Director Hardwood Federation It’s the August recess in Washington. Members of Congress have left our nation’s capital and have headed back to their states and districts to do some retail politicking--visiting personally with constituents, hosting town hall meetings and speaking at rotary clubs and backyard barbecues. In very short order, however, September will be upon us and that means two things: One, the Hardwood Federation’s annual Fly-In beginning Sept. 8 which we are very excited about. And two, Congress reconvening to make its fall and winter push to finish work on some issues important to our industry. Some of the issues on the fall agenda have been front and center for the Hardwood Federation all year. One is federal forest reform legislation (H.R. 2647) that passed the House before the August recess and now faces a tough, although not insurmountable, climb in the Senate. We were very pleased with the House’s action on this bill and the leadership of House Natural Resources Committee Chairman Rob Bishop (R-UT) and his very capable committee staff team, who put together a bill that delivers meaningful reform while being politically pragmatic. Your hardwood team here in Washington provided 16

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substantive input on the bill during its drafting and helped recruit support prior to House passage. Our third and fourth quarter lobbying efforts will be focused on the Senate, where Sen. John Barasso (R-WY) has introduced companion legislation to H.R. 2647. Recruiting Senate Democrats to lend their names and support for the bill will be a key focus of our fly-in and ongoing lobbying efforts this fall. It takes 60 votes to get anything through the Senate which means bipartisan support for this bill is essential for its passage. The Northern Longeared Bat continues to hold our attention as well. The Fish & Wildlife Service unveiled a proposal earlier this year that indicated what types of activities could and could not occur in areas where “threatened” NLE bat roosts are present. Although there were some needed exemptions for forestry practices in this proposal, it also contained some restrictions that remain a concern for our sector. The Hardwood Federation, along with our fellow forestry and forest products associations, submitted comments July 1 outlining those concerns and asking for them to be addressed in the final proposal—known in ESA parlance as the 4(d) rule. That W W W. N H L A .CO M


LEGISLATIVE LOG

Our eyes will also be on the appropriations process and ensuring that some of our key programs continue to receive funding at their current levels in 2016. final rule should be released in December. Meanwhile, there continues to be Congressional interest in passing either an appropriations rider or an amendment to another legislative vehicle that would direct FWS to broaden the 4d rule to accommodate a wider universe of activities and more completely address the forest products industry’s concerns. Moving on to other issue areas, your hardwood lobbying team will be active in the year end debate around which tax incentive and deduction provisions will receive extensions. The package, known as “tax extenders,” has included provisions that benefit hardwood manufacturing facilities. One of these is the Sec. 179 business expensing credit, which allows businesses to deduct the full purchase price of qualifying equipment and/or software bought or financed during the tax year from your gross income. And the list of qualifying equipment is broad—vehicles, manufacturing machinery, software, computers, furniture, and tangible personal property used in business. The 179 provision is one of the “extenders” that may be made permanent in any year end deal that comes together and we will certainly be advocating for that outcome.

tration backing away from claims it has made previously that biomass energy could be a pathway for states to use to comply with the Clean Power Plan—the administration’s carbon emissions regulation for coal fired electric utilities. The Senate sent a letter to EPA, DOE and USDA in July that asked the Administration to officially recognize biomass as a carbon neutral fuel source and an integral part of our nation’s energy future. The letter was signed by 46 Senators, representing all regions of the country and both political parties. We assisted in recruiting signatories to that letter and will be helping initiate a similar effort in the House this fall. Our agenda for the fall and winter is a busy one, but we are ready to take on the challenges of moving forward positive legislation that will benefit the industry. If you have questions or comments for the Federation, please feel free to contact us at hardwood.federation@hardwoodfederation.com or at 202-463-2705.

Our eyes will also be on the appropriations process and ensuring that some of our key programs continue to receive funding at their current levels in 2016. Top among these are the Foreign Market Development and Market Access Programs, which were funded this year and are fully funded in the Agriculture Appropriations FY 16 measures pending in both the House and Senate. Unfortunately, these programs do have their detractors in Congress, which attempt to strike appropriations for FMD and MAP every cycle. We continue to make the rounds on Capitol Hill, reminding lawmakers about the importance of these programs and their demonstrated effectiveness in creating and building markets oversees for high quality, sustainably produced American hardwood products. Switching gears to the energy arena, we are participating in an effort with the broader forest products value chain to defend the principle of biomass carbon neutrality and biomass as a renewable energy resource. A steady stream of stories in the mainstream media over the last few years has been critical of biomass energy that we use in our mills, claiming that carbon emissions from biomass combustion are worse for the environment than fossil based fuel sources. If these assertions find traction and foundation in national energy and environmental policy, the very foundation of our industry’s sustainability message may unravel. During consideration of the House Interior Appropriations bill this summer, the Administration signaled its opposition to the bill by singling out language in the measure that recognizes the carbon benefits of biomass. This was troubling and comes on the heels of the AdminisW W W. N H L A .CO M

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RULES CORNER

ALLOWANCES FOR KILN DRIED LUMBER By Dana Spessert, NHLA Chief Inspector Answering lumber grading questions regarding the different stages in which hardwood lumber is inspected can be very challenging. In this month’s article, I would like to explain the Rules regarding Kiln Dried lumber inspection. The Rules were developed on the basis that the lumber is first inspected as either air-dried or green and then later inspected again as kiln dried lumber. Therefore, when referring to the NHLA Rules Book, be aware that the Rules, as written, apply to the inspection of green or air-dried lumber and shrinkage allowances are written for kiln dried lumber. On page 56 under the heading Standard Kiln Dried Rule in the 2015 version of the Rules for the Measurement & Inspection of Hardwood and Cypress it states: “Kiln dried lumber will be graded and measured as such, the grading rules for air dried lumber to be applied in all respects, unless otherwise specified. Rough kiln dried lumber specified 3/8” to 1-3/4” thick may be 1/16” scant of the nominal thickness; 2” and thicker may be 1/8” scant and the 10% of scant quartered lumber admitted by Paragraph 36, may be 3/32” scant on one edge in 1” to 1-1/2” lumber and 3/16” on one edge in 2” and thicker. The minimum widths mentioned in all grades may be 1/4” scant in width and the 10% admitted by Paragraph 10 may be 1/2” scant in width. In other respects the rules for grading air dried lumber shall apply.” I recently received two questions regarding kiln dried lumber allowances that are worth mentioning. The first, “What is the thickness of 5/4 walnut after kiln drying? “Green or air dried lumber that is cut 5/4 or 1 ¼” (31.75 mm) after kiln drying can be 1 3/16” (30.16 mm) thick at the thinnest cutting used in establishing the grade.

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RULES CORNER

The Rules were developed on the basis that the lumber is first inspected as either air-dried or green and then later inspected again as kiln dried lumber.

The second question, “Are there any allowances for the minimum cutting widths after kiln drying?” To answer this question, we need to review a few different areas in the Rules Book. If the board is of the minimum width for a particular grade then the minimum sizes for the cuttings apply in all aspects. If the board is below the minimum width and is covered under paragraph 10, Minimum Widths, on page 6, as written below there is another option: “Ninety percent of the minimum widths mentioned in all grades of lumber shall be full width; the remaining ten percent may be up to 1/4” scant in width. This rule also applies to each stock width and to any specified width.” The option is listed under the grades of Number 1, 2 and 3 Common Grades listed similar to the 1 Common cutting sizes as: “Minimum cutting: 4” wide by 2’ long or 3” wide by 3’ long, except that in pieces less than 3” wide, under the minimum width rule, Paragraph 10, cuttings the full width of the piece are admitted.” The cutting sizes for boards that fall under the minimum board width and meeting Paragraph 10 requirements allow for full width cuttings, this would not allow a 2’ long cutting less than 4” wide to be scant. This would only apply to the 3” wide by 3’ long cuttings. The reason for the allowances of thickness and width is to help compensate for the shrinkage that occurs during the drying process. I hope that this helps to answer questions anyone may have. Submit your questions regarding the NHLA lumber grading Rules to Chief Inspector Dana Spessert at d.spessert@nhla.com or call the Chief at 901-399-7551.

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Millwide. Worldwide.

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JOB BOARD

* To view current job postings or to post a job, visit www.nhla.com/jobboard.

Sawyer Gutchess Lumber is seeking an experienced (minimum 2 years) sawyer. Sawyer is responsible for sawing logs for maximum value recovery by following daily cutting orders and achieving proper levels of yield. Accountable for proper operation of the carriage, feed works and log turner; checks lumber thickness at saw; conduct a daily physical inspection of all equipment. Send resume to jlortiz@gutchess.com to apply. Gutchess Lumber 10699 Maple Grove Road  |   Freedom, NY 14065 Fax: 607-428-8097 Lumber Inspector Murray Timber & log is seeking a lumber inspector for its new sawmill. Applicants will be responsible for the inspection of hardwood. Some experience is preferred. Murray Timber & Log offers competitive pay. To apply, please email murraytimber@att.net Murray Timber & Log 13331 Salem Hollow Rd   |   New Straitsville, OH 43766 Phone: 740-762-2018  |   Fax: 740-762-2040 Quality Assurance Supervisor Mendocino Forest Products seeks a Quality Assurance Supervisor. The Quality Assurance Supervisor is responsible for overseeing quality systems at the company’s sawmills, distribution centers, treating plants, vendors, and contract manufacturers and directing quality improvement efforts as well as implementing quality improvement initiatives within these areas. Minimum of 7 years experience is required. Mendocino Forest Products offers competitive pay and a comprehensive benefits package.

To apply please email cover letter and resume including salary history to recruiter@mendoco.com Mendocino Forest Products Ukiah, CA 95482  |   Fax: 707-764-4154 Sawyer James Grezenski Forest Products Inc. desires an experienced sawyer for their Stevens Point location. Applicants will be responsible for operation of the carriage. Applicants must have experience and knowledge in this field. This is a full-time position offering benefits and a competitive salary package. To apply please Call 715-344-0878 and/or email resume to bgrezenski@grezenskiforestproducts.com James Grezenski Forest Products Inc. 3158 County Road X North  |   Stevens Point, WI 54482 Phone: 715-344-0878  |   Fax: 715-344-1470 Green Lumber Inspector James Grezenski Forest Products Inc. is seeking an experienced green lumber inspector. Applicants must have experience in lumber inspection and the NHLA grading Rules. Applicants must have a high school diploma. This is a full-time position offering benefits and a competitive salary package. To apply please call 715-344-0878 and/or email resume to bgrezenski@grezenskiforestproducts.com James Grezenski Forest Products Inc. 3158 County Road X North  |   Stevens Point, WI 54482 Phone: 715-344-0878  |   Fax: 715-344-1470

Dry Kilns Dehumidification Kilns Indirect Fired Gas Kilns No Boiler needed!

lumber.nyle.com 207-989-4335 800-777-6953 20

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JOB BOARD

BWP Hardwoods offers competitive pay and a superior benefits package. If you share our vision of excellence, then we invite you to join our winning team! Send resume to jlortiz@gutchess.com to apply. BWP Hardwoods 12942 Route 322  |   Brookville, PA 15825 Phone: 724-537-6447  |   Fax: 607-428-8097 Hardwood Lumber Inspector White County Moulding, a division of Atlanta Hardwood Corp., is seeking a certified lumber inspector with at least 2 years experience in the field. Lumber inspector is responsible for grading green and kiln dry lumber as well as supervising line employees. Atlanta Hardwood Corp. offers competitive pay, overtime and production bonuses, health benefits and 401k opportunities. To apply, please send resumes to the following address: White County Mouldings 91 Appalchian Trail Drive PO Box 548  |   Cleveland, GA 30528 Phone: 404-323-7380  |   Fax: 706-219-2835 Apprentice Dry Kiln Operator Rex Lumber Company is seeking an apprentice dry kiln operator for their Englishtown, NY location. Responsibilities include all aspects of drying, such as proper sticking, drying schedules, wood waste boiler operation and kiln maintenance, and overseeing the lumber stacking operation. Qualified applicants must be mechanically inclined and familiar with lumber. Further training relative to the specifics of the company’s operation will be provided upon hiring.

To apply, please send cover letter and resume to careers@rexlumber.com

®

Rex Lumber Company offers medical, dental and vision benefits, as well as a 401k, life insurance and a flexible spending account. Salary is based on previous experience.

You Bring THE WOOD ...

SHADE-DRI

Lumber Inspector BWP Hardwoods, a division of Gutchess Lumber is seeking an NHLA certified lumber inspector. Lumber inspectors are responsible for visually inspecting lumber according to species, grades, and dimension using NHLA lumber grading rules.

We’ll Bring THE PROTECTION™

Rex Lumber Company Station Street  |   Englishtown, NJ 07726 Phone: 732-446-4200  |   Fax: 732-446-5036 Outside Sales Representative Ohio International Lumber is seeking an Outside Sales Representative for the European market region. Components for this position are Sales techniques, developing customers, following through with commitments and heavy communication for a new expanding company.

Protect logs and lumber from sun, dirt, wind and rain with SHADE-DRI ® mesh shade cloth.

Qualified applicants should email resume to: cgarrett16@frontier.com 1 - 8 8 8 - E N D - C O AT s a l e s @ u c c o a t i n g s . c o m w w w. u c c o a t i n g s . c o m

Ohio International Lumber 423 Hopewell Rd  |   Waverly, OH 45690 Phone: 740-941-1300  |   Fax: 740-941-1333 W W W. N H L A .CO M

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CALENDAR

WH ERE IN THE WOR LD IS N H LA? Inspector Training School 177 Class Graduation th

August 5-7  |   Elkins, WV Participating: Rich Hascher, Inspector Training School Instructor Dana Spessert, Chief Inspector

KFIA West Kentucky regional meeting

August 18-19  |   Central City,KY Participating: John Hester, Director of Membership

Western Hardwood Annual Convention

August 19  |   Portland, OR Participating: Mark Barford, CAE, Chief Executive Officer

178th Class NHLA Inspector Training School Program

Memphis, TN  |   September 2-November 19 Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller  |   901-399-7569  |   b.miller@nhla.com

Forest Products Marketing Workshop

Memphis, TN  |   September 3-4  |   NHLA Headquarters Instructor: Dr. Bob Smith and Dr. Henry Quesada, Virginia Tech Contact: Becky Miller  |   901-399-7569  |   b.miller@nhla.com

5-Day Lumber Grading Short Course

Hillman, MI  |   September 21-25  |   Northeast Michigan Works Instructor: Barry Kibbey, NHLA National Inspector Contact: Aleece Hodges  |   989-705-3733  |   ahodges@nemcog.org

Flex-Day Lumber Grading Short Course

Tecnomueble Show

August 19-23  |   Guadalajara, Mexico Participating: Dana Spessert, Chief Inspector

Winthrop, IA  |   September 28-October 2  |   Wieland & Sons Lumber Instructor: Barry Kibbey, National Inspector Contact: Becky Miller  |   901-399-7569  |   b.miller@nhla.com

Hardwood Federation Fly In

Flex-Day Lumber Grading Short Course

September 8-9  |   Washington, DC Participating: Mark Barford, CAE, Chief Executive Officer John Hester, Director of Membership

EDUCATION & TRAIN I NG Flex-Day Lumber Grading Short Course

Marcus Hook, PA  |   August 10-14  |   Alan Mcllvain Co. Instructor: Barry Kibbey, National Inspector Contact: Becky Miller  |   901-399-7569  |   b.miller@nhla.com

GLKDA Kiln Drying Short Course

Antigo, WI  |   August 11-13  |   Northcentral Technical College Antigo Campus Instructor: Travis Allen, Instructor of Wood Technology at Northcentral Technical College Contact: Continuing Education  |   715-803-1965  |   ce@ntc.edu

Progressive Inspector Training School Program: Block 1

Memphis, TN  |   August 17-28  |   NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller   |   901-399-7569  |   b.miller@nhla.com

5-Day Lumber Grading Short Course

Roscommon, MI  |   August 31- September 4  |   Northeast Michigan Works Instructor: Barry Kibbey, NHLA National Inspector Contact: Aleece Hodges  |   989-705-3733  |   ahodges@nemcog.org

Warren, PA  |   October 12-16 Warren Forest Higher Education Council Instructor: Barry Kibbey, National Inspector Contact: Donna Smith  |   814-723-3222  |   dsmith@hi-ed.org

5-Day Lumber Grading Short Course

Morehead, KY  |   October 12-16 Maysville Community and Technical College Instructor: Benji Richards, NHLA National Inspector Contact: Lorrina White  |   606-356-2100  |   lorrina.white@kctcs.edu

4-Day Lumber Grading Short Course

Elkins, WV  |   November 2-5  |   West Virginia Wood Tech Center Instructor: Barry Kibbey, NHLA National Inspector Contact: Matt Wyatt  |   304-637-7500  |   matt@wvwoodtech.com

Progressive Inspector Training School Program: Block 3 Memphis, TN  |   November 2-20  |   NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller  |   901-399-7569  |   b.miller@nhla.com

Flex-Day Lumber Grading Short Course

Indianapolis, IN  |   November 16-20  |   Wood-Mizer Products, Inc. Instructor: Barry Kibbey, National Inspector Contact: Denice Helmbrecht  |   317-875-3661  |   info@ihla.org

For applications, a complete listing of events and more information please visit www.nhla.com/calendar.

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THE GLOBAL GATHERING OF THE HARDWOOD COMMUNITY

DON'T MISS OUT! JOIN US IN MUSIC CITY!

2015 NHLA ANNUAL CONVENTION & EXHIBIT SHOWCASE OCTOBER 7-9, 2015 | OMNI HOTEL DOWNTOWN | NASHVILLE, TN More information and registration online at www.nhlaconvention.com


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