Hardwood Matters December 2017

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

2017

Convention Recap 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



december 2017

19 Alumni Notes

WHAT'S INSIDE feature 14 2017 NHLA Annual Convention & Exhibit Showcase READER SERVICES 6 8 26

President’s Message CEO's Message Educational Calendar

Instant TOP POST OF THE MONTH at facebook.com/NHLAOfficial National Hardwood Lumber Association What is the most creative item you built from pallets?

Join our online community! W W W. N H L A .C O M

CONTENTS

10 DEPARTMENTS

Rules Corner

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

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

December 2017 ▪ Issue 185 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

Brent Stief Huron Forest Products President

Jon Syre Cascade Hardwood LLC Unique Services

Darwin Murray McClain Forest Products Vice President

Nordeck Thompson Thompson Appalachian Hardwoods Rules

Pem Jenkins Turn Bull Lumber Co. Past President 2014-2016

Orn Gudmundsson, Jr. Northland Corporation Structure

NHLA STAFF

Mike Powers Maley & Wertz Industry Advocacy & Promotion

Lorna D. Christie CEO l.christie@nhla.com Amanda Hinesley Digital Marketing Specialist a.hinesley@nhla.com Renee Hornsby Director of Communications/Editor r.hornsby@nhla.com Jennifer VanDyke Marketing Manager j.vandyke@nhla.com

■■■ Trisha Clariana Office Manager

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

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American Wood Technology

9

King City/Northway Forwarding

21

A.W. Stiles Contractors, Inc.

23

Kuehne + Nagel

23 BreezeDried

23

Lico Machinery

12

Brewco, Inc.

IFC

Pike Lumber Company, Inc.

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Continental Underwriters, Inc.

25

SCSFP by Finna Group

25

Cooper Machine

13

TJT Consulting

19 Dunavant

7

Thompson Appalachian Hardwoods

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11

U•C Coatings

5

VisionTally

21 HMR 23

4

Julia Ganey Member Relations Manager Rich Hascher Inspector Training School Instructor

ADVERTISER INDEX

Euler Hermes

Desirée Freeman Controller

Jim C. Hamer Co.

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John Hester Director of Membership and Business Development Carol McElya Accounting Assistant & Publications Becky Miller Inspector Training School Administrator Dana Spessert Chief Inspector

Kevin Gillette Tioga Hardwoods Membership & Networking COMMITTEE CHAIRS Dave Mayfield Mayfield Lumber Co. Membership Dave Bramlage Cole Hardwood, Inc. Promotion & Advocacy Garner Robinson Robinson Lumber Convention Pem Jenkins Turn Bull Lumber Co. Nominating Steve Jones Ron Jones Hardwood Sales, Inc Inspection Services Orn Gudmundsson, Jr. Northland Corporation Finance Bucky Pescaglia Missouri-Pacific Lumber Co., Inc. ITS/Continuing Education Stephanie VanDystadt DV Hardwoods, Inc. Communications & Marketing Joe Snyder Fitzpatrick & Weller, Inc. Rules Darwin Murray McClain Forest Products Strategic Planning

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PRESIDENT’S MESSAGE

THE YEAR IN REVIEW As 2017 comes to a close, thoughts turn to how well we spent our time over the past 11 months. It is certainly true for me, as I consider how well NHLA delivered on its commitment to its members and the hardwood industry in 2017. October and November were very busy months for NHLA. Between the record-breaking convention in Nashville and the fall Board of Managers meeting in Memphis, your board and staff have been working hard to not only finish up on a successful 2017, but to set the stage for next year. A lot of improvements were put in to place in 2017. We implemented better marketing thanks to a staff addition, increased member engagement and successfully introduced new education. Great advancements were also made by looking at the Inspection Services program with a different eye. Like the industry, this important member value has had its ups and downs. As part of the 2017 strategic operating plan, staff and board members analyzed the Inspection Services’ business model to determine areas for improvement. The changes that made sense when we downsized the Inspection Services department are now catching up to us, making it tough to balance expenses versus revenue goals. We discovered that travel time and costs could be decreased if we located a new National Inspector in the Midwest region. This would also increase the number of billable days as the other Inspectors’ travel time would be decreased. When we reviewed the numbers, we recognized this strategy has the potential of decreasing expenses and increasing revenue. We learned we were selling the full value of our national inspectors short! They are our ambassadors to our members and potential members; aiding in both recruitment and retention. This year seventeen new members joined as a direct result of the National Inspectors’ efforts. We also realized the NHLA “National Man’s” value goes far beyond grading lumber. They can help our members understand how to improve yields by increasing upgrades, increasing grade outcomes and increasing production. They are also educators, providing a valuable service for our members. This year, the number of NHLA hosted education courses grew from five to 15. If your company needs training, just give us a call.

Have a wonderful holiday season. Let’s make 2018 a great year for the hardwood lumber industry. #NHLAmeansbusiness Regards,

Brent Stief, NHLA President Huron Forest Products

Over the past year, we have increased the marketing of the programs and services provide by the Inspection Services team. As demand for the Inspection Services team is on the rise, I encourage you to take stock of your company’s needs and set your appointment now with your regional National Inspector or contact Chief Inspector Dana Spessert today.

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For more than 20 years, Thompson Appalachian Hardwoods has manufactured and exported the highest-quality Appalachian hardwood lumber and logs. With control of raw material from the forest, Thompson Appalachian Hardwoods guarantees a consistent, high-quality product from start to finish.

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CEO'S MESSAGE

A MAN OF HONOR By all reports, the NHLA conference in Nashville was a great hit. We received numerous comments about everything from the quality of the exhibitor to the timeliness of the educational topics and of course, how everyone loves Nashville. I can’t imagine a better opening session speaker than Lt. Commander John Foley. Kudos to the NHLA Convention Committee for the selection. And while Foley is the ultimate storyteller, the highlight of the session for me was his presentation of the “Golden Helmet” award to Norm Murray. If you were in the audience, you will not soon forget the emotion on the stage as the two veterans greeted each other. In fact, there was such emotion, many of you may not know why Norm was selected for the award! According to Foley, the helmet “is an icon that represents our quest for high performance and continuous improvement, our commitment to each other and our special responsibility to serve as role models for people all over the world.”

Norm Murray receives the Culture of Excellence Award.

In my mind that is the definition of a hero, and I cannot think of a better individual than Norm Murray to receive the award. As we say in the South, I am proud to know him.

pictures of a soldier who died in Viet Nam or are interested in donating to build the Education Center.

Norm wears his status as a veteran with great pride. Using his gift for foreign languages, he was an interpreter and interrogator in Vietnam, serving in the Army from 1967-1970. His devotion to serving his country and his fellow soldiers is best characterized by the fact that he felt his most important duty during his time in Vietnam was to keep his fellow Americans from getting killed. In his off-duty hours, he could be found serenading the troops with his guitar. His honors included the Bronze Star, the Army Commendation Medal and the Republic of Vietnam Army Honor Medal.

I believe it was Emerson who said that “no person has ever been honored for what he received. Honor has been the reward for what he gave.” People who know Norm Murray will know what that quote means, and why he was an easy choice for the Golden Helmet award.

After returning home from the war, Norm completed his schooling and joined his father in the family business, U-C Coatings. He was instrumental in building the company from a one-man family enterprise into a multi-million dollar international business. He fell in love and married his wife Thuy, had two children, and moved forward in building a life well lived. He retired in 2013, but he certainly did not stop working.

Lorna D. Christie, CEO 901-377-1082 direct | l.christie@nhla.com

Norm’s life has been defined by his commitment to others, especially veterans. He spent years helping Vietnamese refugees resettle in the U.S. and most recently, he has focused his energy on working with the Vietnam Veterans’ Memorial Fund, raising money to build the new Education Center at The Wall, the Vietnam Veterans Memorial in Washington, DC. One of the Center’s key goals is to put a face on every one of the more than 58,000 names on the Wall. In addition to helping raise funds for the Center, Norm is also engaged in extensive research to locate photos and biographical information for each name. Please contact Norm by email at VNet@nickelcitycowboy.com if you have any 8

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RULES CORNER

THE SALES CODE: CANCELLATIONS, VIOLATIONS AND ENFORCEMENT By Dana Spessert, NHLA Chief Inspector

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his month will mark the completion of my series on the Sales Code. The final sections of the Sales Code describe the details of how to deal with a company that violates any portion of the Code. But before we discuss a Sales Code violation, let’s review an often over looked section of the Sales Code …Article XII – Cancellations.

ARTICLE XII – Cancellations Section 1. If the credit of a buyer is found to be impaired and the buyer upon request of the seller, fails to give satisfac- tory security for payment, the seller may cancel the order or any unfilled portion thereof. Section 2. If it becomes apparent that the seller cannot make delivery of stock covered by an order, or if delivery of the stock on the order, or any portion thereof, is unreasonably delayed, the buyer may cancel the order or any unfilled portion thereof.

The Sections above, describe the proper way to handle poor credit and delayed shipments and the cancellation options relating to such conditions. The Note section below, describes what is witnessed when the markets are going up and down. It clearly states in the “Note” that price fluctuations and over-purchases do not justify cancelling orders. Cancelling orders for these reasons is a violation of the Sales Code.

“Note: The fact that the seller has oversold his stock, or the fact that the buyer has over-purchased his requirements, is in neither case a justifiable reason for arbitrary cancellation. Neither does the condition of the market bear any relation to the inviolability of a contract of sale and purchase. If the market goes down, the buyer is obliged to receive the stock purchased by him. If the market goes up, the seller is obliged to deliver and receive payment for the stock sold by him. Cancellation of an order by either party for any of these reasons is wholly without warrant, and is in absolute opposition to the letter and spirit of this code, which is based upon the principles of good faith and square dealing.”

Under Article XI – Enforcement Section 1 of Article XI explains that if someone believes a Sales Code violation has occurred, that person has the right to send a

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written complaint to the NHLA Chief Inspector in order to begin an investigation. Section 1. Any person who believes a Sales Code violation has occurred shall have the right to file a complaint with NHLA. Such person shall complete, sign and deliver a standardized NHLA complaint form to NHLA headquarters. The NHLA Chief Inspector shall investigate the complaint and submit a report to a committee comprised of the following individuals: (1) First Vice President of the NHLA (2) Chairman of the Inspection Services Committee of the NHLA (3) NHLA Mission Leader regarding the Rules. This committee shall determine if a violation of the Sales Code has occurred. If the investigation uncovers a violation and no appeal is made to overturn the decision, NHLA may disclose to any NHLA member making an inquiry that a warning was sent and if there were any other warnings sent previously.

Section 2. If no violation is found, the complaint will remain confidential. No person shall be entitled to obtain any information regarding the complaint except that the complaining party will be notified that its complaint was dismissed. If a violation is found, the Inspection Services Committee Chairman shall send a letter of warning to the NHLA against whom the complaint was made. Such member shall be notified of its right to appeal, and any appeal shall be decided by the Inspection Services Committee. Pending disposition of the appeal, the complaint and the warning letter shall remain confidential. If no appeal is made or if the appeal is dismissed, then the NHLA may disclose to any NHLA member making inquiry that a warning was sent, the date on which the warning was sent, and whether any other warnings had been sent.

Section 3. After three (3) warnings in a twelve (12) month period, or five (5) warnings in a twenty-four (24) month period, a letter will be sent to an association member censuring them. A censured company will be identified to the NHLA membership.

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Protection starts at the first cut.

ANCHORSEAL®

The last Article of the Sales Code, identifies an alternative to court . . . arbitration. Arbitration is recommended as the best course of action by parties that do not agree on a dispute and want to avoid the need for the legal system outside of the hardwood industry. ARTICLE XIII – Arbitration Section 1. In order to adjust disputes arising between seller and buyer in the application of the principles of this code arbitration is recommended. Section 2. The customary procedure in arbitration cases is to select an arbitrator and in the event the buyer and seller cannot agree upon a sole arbitrator, each party should select one. If these two arbitrators shall disagree, they shall elect a third arbitrator and a majority decision of these arbitrators shall be binding upon the parties to the dispute. This article concludes my series on the NHLA Sales Code and I hope that everyone reading this series has learned a little more about the Code. If anyone has any questions or needs more clarity on any of these articles, please do not hesitate to contact me. Dana Spessert, NHLA Chief Inspector d.spessert@nhla.com / 901-399-7551

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Thanks

to those we serve!

2015, 2016 & 2017

PRESENTING SPONSOR

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2017 NHLA

Presented by

Annual Convention & Exhibit Showcase Brings Hardwood Industry Leaders to Nashville

THE NATIONAL HARDWOOD LUMBER ASSOCIATION HELD ITS 120TH ANNUAL CONVENTION & EXHIBIT SHOWCASE PRESENTED BY TJT CONSULTING OCTOBER 25-27 IN NASHVILLE, TENN.

T

he NHLA Annual Convention is the best place for those in the hardwood industry, or those looking to have a future in the hardwood industry, to come together, form new partnerships, strengthen existing ones and discover the future of the industry. The 2017 NHLA Annual Convention kicked off with the “Welcome to Nashville Reception”, sponsored by Cascade Hardwood Group, bringing together approximately 1150 hardwood industry professionals, representing more than 464 companies and 14 countries. Attendees got a chance to win several rockin’ prizes including a Fender Stratocaster guitar from Alder harvested, milled and sold by Cascade Hardwood! Thursday, October 26 was headlined by the Opening Session, sponsored by Rossi Group and a powerful keynote address by John Foley, former lead solo pilot of the Blue Angels. Mr. Foley outlined his “Diamond Performance” structure of steps that organizations and leaders should take to change culture, avoid complacency, manage problems, and achieve success. He used examples from his own experiences with the Blue Angels to describe the process toward excellence, and the high performance zone. Mr. Foley went on to outline the dynamics of debrief - five core principles that establish the foundation for success. Respect, Humility, Openness, Accountability and Gratitude. In each of the Blue Angels debriefing sessions, team members ended their reports by saying “I’m glad to be here,” as a simple demonstration of their enthusiasm for the job, and recognizing the work that goes into each performance. ­It was safe to say that at end of this performance . . . Everyone was “Glad to be Here”!

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Opening Session David Jacobs

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NASHVILLE 2017

WELcome Reception

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John Foley

Ted Rossi and John Foley

John Foley and Norm Murray Brent Stief NHLA President

Other notable events of the Opening Session were the acknowledgment of new NHLA members and companies celebrating 30, 50 and 75 years of membership with NHLA including a 100-year member, Robbins Sports Flooring located in White Lake, Wisconsin. The second day of the Annual Convention featured the General Session and Town Hall Meeting sponsored by Pennsylvania & Indiana Lumbermen’s Mutual Insurance Company. In the Friday morning business session, seven new

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members were elected to the National Hardwood Lumber Association Board of Managers. Newly elected were Rob Cabral of Upper Canada Forest Products, Darrell Keeling of Northwest Hardwoods, Jimmy Lee of Tides & Times, Jordan McIlvain of Alan McIlvain Lumber Co., Joe Pryor of Oaks Unlimited, Rich Solano of Pike Lumber and Ray White of Harold White Lumber Inc. Their three-year term begins on Nov.13 with the fall Board of Managers meeting. After the business side of the meeting was finalized special guest W W W. N H L A .C O M


Eric Chester

Left to right: Rob Cabral of Upper Canada Forest Products, Joe Pryor of Oaks Unlimited, Darrell Keeling of Northwest Hardwoods, Rich Solano of Pike Lumber and Ray White of Harold White Lumber Inc. Not pictured Jimmy Lee and Jordan McIlvain.

Yugon Kim, founding owner/partner of IKD, gave an inspiring presentation on the Indiana Hardwood CLT project titled the Conversation Plinth. During his presentation, he discussed the benefits of building with timber and specifically cross-laminated hardwood timber. The Indiana Hardwood CLT project has the potential to initiate a cascade of effects: positive job growth in rural forestry and manufacturing, expanding and diversifying hardwood lumber markets, higher forest land value and improved forest management practices to reduce wildfires and encourage biodiversity leading to an abatement of climate change. W W W. N H L A .C O M

NASHVILLE 2017

Yugon Kim

Following Mr. Kim, award-winning speaker and author Eric Chester provided insights on the lack of labor in the forest products industry and provided ideas and strategies for finding and keeping great people.

The NHLA Annual Convention presented a variety of educational topics, including family business relations, emerging markets of thermally modified hardwood and a panel discussion of tomorrow’s global markets presented by the American Hardwood Export Council. Other notable education events were “What’s Your Uber” presented by Tom Morrison. This energetic

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ITS Alumni Reception

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WHERE ARE THEY NOW?

ALUMNI NOTES

ROB MCCONNELL, 175th CLASS

WHAT AM I CURRENTLY DOING AND HOW HAS THE CLASS HELPED ME GET HERE? Not knowing much about the lumber industry at first, this class was the first step in helping me grasp how lumber is measured and sold. This first step has since propelled me through grading lumber, management, and currently sales and purchasing.

WHAT'S MY FONDEST INSPECTOR TRAINING SCHOOL MEMORY? Picking one memory may be difficult. There was the time when myself and five other class members loaded into a truck and drove three hours on a whim to eat at Lambert’s Café – home of the throwed rolls in Missouri. Or when most of the class headed to the dog track and ended up placing penny bets on races. I believe one of the guys won $100 that night. Or the couple of times we got together and played football at the park. Honestly I could keep going but meeting all those guys and the comradery that developed by working together would have to be the ultimate memory.

I am currently in Purchasing and Sales with Thompson Appalachian Hardwoods. WHAT IS YOUR FAVORITE ASPECT OF YOUR JOB? Engaging with other mills and yards. I have the opportunity to see the industry as a whole versus just our single piece of the puzzle. Are you an ITS Alumni? We'd love to hear from you. Send us your story or give us an update at alumninews@nhla.com.

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Exhibit Showcase

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NHLA Whiskey Trail Reception

and informative session provided the keys in researching and determining what future business disruption is coming your way. A highly-energized NHLA Grading Rules Open Forum regarding the proposed hardwood lumber grading rules changes for 2019 rounded out the breakout sessions. As always, it was a great time to catch up with fellow members, network with clients and potential 22

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clients and learn from peers, speakers and presenters.

The 2018 NHLA Annual Convention & Exhibit Showcase will be held October 2-4 at the Sheraton Centre in Toronto, Ontario, Canada. W W W. N H L A .C O M


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11/15/2017 2:29:48 PM


EDUCATIONAL CALENDAR

EDUCATION & TRAINING JANUARY

JANUARY

MARCH

MARCH

3-March 24

29-Feb 1

5-24

19-23

Inspector Training School 185th Class

Intro to Lumber Grading

Intro to Lumber Grading

NHLA Headquarters Memphis, TN

Mattie Lanier Richey Center Atlanta, Texas

Inspector Training School Progressive Program - Block 3

Instructor: Rich Hascher, NHLA ITS Instructor

Instructor: Mark Bear,

NHLA National Inspector

NHLA Headquarters Memphis, TN

Maysville Communmity and Technical College Morehead, KY

Instructor: Rich Hascher,

Instructor: Barry Kibbey,

NHLA ITS Instructor

NHLA National Inspector

APRIL

APRIL

JUNE

JUNE

9-21

30-May 2

4-7

19-21

Inspector Training School Progressive Program - Block 1

Intro to Lumber Grading

Intro to Lumber Grading

Intro to Lumber Grading

NHLA Headquarters Memphis, TN

Yoder Lumber Co., Inc. Millersburg, OH

Instructor: Rich Hascher,

North Carolina State University Raleigh, NC

Instructor: Barry Kibbey,

NHLA Headquarters Memphis, TN Instructor: Rich Hascher,

NHLA ITS Instructor

NHLA National Inspector

NHLA ITS Instructor

Instructor: Mark Bear,

NHLA National Inspector

*See all course offerings and register at www.nhla.com/calendar 26

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EDUCATION IS KEY TO YOUR COMPANY’S SUCCESS Register Online Today! At www.nhla.com "No better place to start in the lumber/forest industry. That knowledge can carry you in many avenues of our industry." —Michael Klingler, NHLA Inspector Training School 116th Class

Please check nhla.com for calendar updates.

JULY

AUGUST

16-19

6-18

Intro to Lumber Grading

Inspector Training School Progressive Program - Block 1

McKeever Environmental Center Sandy Lake, PA

NHLA Headquarters Memphis, TN

Instructor: Barry Kibbey,

Instructor: Rich Hascher,

NHLA National Inspector

NHLA ITS Instructor

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

29-Nov 17

11-13

29-Nov 17

26-Dec 8

Inspector Training School 187th Class

Intro to Lumber Grading Kamps Hardwoods, Inc. Caledonia, MI

Inspector Training School Progressive Program - Block 1

NHLA Headquarters Memphis, TN

Inspector Training School Progressive Program - Block 3

NHLA Headquarters Memphis, TN

Instructor: Rich Hascher,

Instructor: Barry Kibbey,

NHLA Headquarters Memphis, TN Instructor: Rich Hascher,

Instructor: Rich Hascher,

NHLA ITS Instructor

NHLA National Inspector

NHLA ITS Instructor

W W W. N H L A .C O M

NHLA ITS Instructor

D E C E M B E R 2 0 1 7 H A R D W O O D M AT T E R S

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Money Can Grow On Trees EARN Highly-Skilled Lumber Inspection Expertise INVEST Where 1,000’s of Companies Have Invested Before You

RETURN Engaged and Skilled Employees for Increased Profit Margin

Enroll your staff in our next 12-week Inspector Training School Program.

Registration Now Open

January 3-March 24 • Memphis, TN • NHLA Headquarters Register at NHLA.com or call 901-377-1818


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