December 2024 Hardwood Matters

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WHAT'S INSIDE

EXECUTIVE COMMITTEE

Bucky Pescaglia, Chairman Missouri-Pacific Lumber Co., Inc.

Stephanie VanDystadt, Vice Chairman Hull Forest Products

Jon Syre, Past Chairman 2022-2024 Cascade Hardwood, LLC

MISSION LEADERS

Sam Glidden, ITS and ITSEF GMC Hardwoods, Inc.

Ray White, Lumber Services Harold White Lumber, Inc.

Joe Pryor, Education Services Oaks Unlimited

Rich Solano, Convention Pike Lumber Company, Inc.

Bill Courtney, Membership & Networking Classic American Hardwoods

Rob Cabral, Market Impacts Upper Canada Forest Products, Ltd.

DEPUTY MISSION LEADERS

Chris Rider, Membership & Networking AHC Hardwood Group

Tom Coble, Market Impacts Hartzell Hardwoods, Inc.

Greg Fitzpatrick, Convention Fitzpatrick & Weller, Inc.

Tom Oiler, Lumber Services Cole Hardwood, Inc.

Trent Yoder, Lumber Services Yoder Lumber

Brant Forcey, ITS and ITSEF Forcey Lumber Company

George Swaner, Education Services Swaner Hardwood Co., Inc.

COMMITTEE CHAIRMAN

Sam Glidden, Rules GMC Hardwoods, Inc.

HARDWOOD MATTERS

THE VOICE OF THE HARDWOOD INDUSTRY

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 NHLA

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.

ADVERTISER INDEX

Darci

NHLA STAFF

Dallin Brooks, Executive Director dallin@nhla.com

John Hester, Chief Development Officer j.hester@nhla.com

Sam Leow, Chief Marketing Officer s.leow@nhla.com

Dana Spessert, Chief Inspector d.spessert@nhla.com

ACCOUNTING

Desiree Freeman, Controller d.freeman@nhla.com

Jens Lodholm, Database Manager j.lodholm@nhla.com

INDUSTRY SERVICES

Mark Bear, National Inspector m.bear@nhla.com

Tom Byers, National Inspector t.byers@nhla.com

Kevin Evilsizer, National Inspector k.evilsizer@nhla.com

Simon Larocque, National Inspector s.larocque@nhla.com

Benji Richards, Industry Services Sales Manager b.richards@nhla.com

Drew Snider, National Inspector d.snider@nhla.com

Marty Westeen, National Inspector m.westeen@nhla.com

INSPECTOR TRAINING SCHOOL

Roman Matyushchenko, Instructor of the Inspector Training School r.matyushchenko@nhla.com

MARKETING/MEMBERSHIP

Melissa Ellis Smith, Creative Director m.ellis@nhla.com

Brennah Hutchison, Junior Copywriter b.hutchison@nhla.com

Ashley Johnson, Convention and Events Director a.johnson@nhla.com

Chase Musarra, Member Services Advisor c.musarra@nhla.com

Darci Shannon,

d.shannon@nhla.com

&

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2024 IN REVIEW

As this year comes to an end, it is time to reflect on the accomplishments of 2024. For the NHLA, we have had many successes that will continue to shape our future.

Even during a historic low volume in Eastern US Hardwood Lumber production for our industry, over 30 new members joined our association, understanding the value that membership brings.

In July, we received a USFS grant that will allow us to offer a Production Yield Analysis to up to 200 member companies over the next two years at a 75% discount. This program will help operations evaluate every stage, from log selection to the end product. To meet demand for this service and other industry needs, we’ve also hired two new National Inspectors, bringing our team to a total of seven.

At the Spring Board of Directors meeting, five new task forces were formed to address priorities discussed during committee meetings. Topics ranged from new class structures for the Inspector Training School to the impact of log exports on the US Hardwood lumber industry. In the Fall, these task forces presented their findings to the board, and next steps will be shared with members through the NHLA Community App.

The NHLA Community App is an invaluable resource for members, fostering collaboration, networking, and dialogue within the hardwood industry. Following the presentation of task force findings at the Fall Board of Directors meeting, the app has become the go-to platform for staying informed about next steps and accessing updates on key initiatives. Additionally, it serves as a gateway to resources like the newly launched realamericanhardwood.pro website, which supports the Real American Hardwood® Coalition’s efforts to educate designers and architects about the benefits of using hardwood in their projects. Don’t miss out—download the app today by searching “NHLA Member Community” in your App Store to join the conversation, connect with fellow members, and explore tools that strengthen our industry.

In October, St. Louis provided a great central location for our annual convention, which drew over 800 attendees. The exhibit hall

was packed with vendors and featured state-of-the-art equipment, supplies, and resources for the hardwood industry. The convention wrapped up with one lucky attendee driving off in a new ATV!

During the business meeting at the convention, I was honored to be elected as the new Chairman. Stephanie Vandystadt with Hull Forest Products was elected as Vice Chair, and six new members were elected to the Board of Directors. In addition, two members will now serve in new board roles under our strategic plan, with Chris McQueen representing the Associate member class and Chuck Boaz representing the Sustaining members.

The Octoberfest Biergarten event at Anheuser-Busch Brewery and the Blue and Gold Gala on the final evening were both highlights. We also bid farewell to Renee Hornsby, a longtime staff member, and wish her all the best in her new role as Executive Director of the World Millwork Alliance.

Our advocacy partner, the Hardwood Federation, worked diligently to delay the EUDR regulations that could have posed significant challenges to our industry. Their support of industry allies in the recent elections further reinforces our voice in Washington, D.C.

Though 2024 brought its share of challenges, the NHLA has worked tirelessly to create value and support for our members. With your continued support, we look forward to growing and stabilizing our industry together.

It is a true blessing to serve as your Chairman, and I want to wish you and your family a Merry Christmas and a healthy, happy New Year!

AVOID THE PAIN, TAKE THE MEDICINE

Have you ever had surgery? I just went through my first one, and according to my wife Sariah, I am a wimp. It wasn’t so painful at first, but once the medicine wore off, it hurt—a lot. I had ankle surgery to repair an injury, and I still have another month of recovery. The doctor advised me to take my medicine consistently to stay ahead of the pain. “If you’re chasing the pain, you’ll constantly be experiencing it,” he said. It struck me that this advice applies to the hardwood industry as well. Too often, we react to challenges rather than proactively preparing for them.

It’s natural to feel defensive when faced with criticism. The hardwood industry has seen its share of misconceptions and has been under scrutiny from those who may not fully understand the role of responsible forestry. Terms like “clearcutting” often bring to mind images of large-scale destruction when, in fact, the practice can be as minimal as a single acre. Misunderstandings around deforestation and the need for sustainable materials have contributed to negative perceptions of our industry. This, in turn, fuels demand for alternative materials that only mimic the benefits of real wood.

So how do we move from being a reactive industry, always chasing the next problem, to a proactive hardwood industry prepared for future challenges? Just as my recovery requires a balanced approach—a combination of painkillers, vitamins, anti-inflammatories, and antibiotics—the hardwood industry needs a multi-faceted plan to stay ahead of the game.

Painkillers for our industry are strategic responses to misconceptions and concerns. Rather than ignoring public concerns, we need to engage. By writing editorials and sharing our sustainability story, we can show the truth about dynamic forests, responsible forestry, and the carbon-sequestering power of wood products. Educating the public and key stakeholders on how forestry supports both the environment and the economy can build understanding and support.

Vitamins for the industry involve investing in tools that demonstrate our commitment to sustainability, like the NHLA/ AWC carbon calculation tool at https://www.uspioneer.com/

AWCLciSurvey/Index. This tool helps measure carbon balance, creating an Environmental Product Declaration (EPD) that can be shared with customers and the public. It’s a proactive step in forest healthcare, showing our role in sustainable resource management.

Blood thinners for the industry are investments in automation. With labor becoming harder to source and more costly, staying competitive requires us to work smarter, not harder. Automation can help the industry cut costs and improve efficiency, preparing us for long-term challenges.

Anti-inflammatories for our industry involve seeking government support through grants. Programs that give back our tax dollars can be leveraged to fund innovation and automation projects, like those found at https://www.fs.usda.gov/science-technology/energy-forestproducts/wood-innovation. Deadlines are approaching on December 11th and 18th, and taking advantage of these resources can give our industry the boost it needs to stay viable and competitive.

Antibiotics for the industry—our best prevention against future challenges—are in product development. We need to continuously innovate, creating products that appeal to designers, architects, and homeowners by addressing common concerns like cost, installation, and maintenance. This proactive product development keeps the hardwood industry relevant and versatile.

Together, if we commit to this multi-faceted approach, we can stay ahead of the pain points that threaten our industry. We have a compelling story about sustainable forests, innovative practices, and the carbon-storing power of wood. By applying for grants, improving our operations, and working together as an industry, we can create new markets and new opportunities. Let’s take the medicine as a team, setting a common ground to showcase our strengths and build a stronger future.

| 901-377-0182

Celebrating Excellence at the NHLA Inspector Training School

National Hardwood Lumber Association Commemorates the Graduation of the 207th Inspector Training School Class

We’re thrilled to announce the graduation of the 207th class from the National Hardwood Lumber Association’s (NHLA) renowned Inspector Training School (ITS). The ceremony took place on November 1, 2024, at NHLA Headquarters in Memphis, TN, featuring inspiring speeches that celebrated the graduates’ achievements and the promising future of the hardwood industry.

NHLA Chief Inspector Dana Spessert opened the event by congratulating the students on mastering in eight weeks what was once a six-month curriculum. He highlighted the evolving nature of the grading industry, stating, “The future looks great for what you’re stepping into.”

Mark Scholl, a Class 190 graduate and representative of East Perry Lumber Co., praised Class 207’s unique position in the industry. Despite smaller class sizes, he reminded graduates of the exciting opportunities ahead: “Y’all are positioned perfectly… that will serve you well in the future.”

NHLA ITS Instructor and Associate Dean Roman Matyushchenko then expressed gratitude to sponsors and staff, urging graduates to “never stop learning” and to stay connected by sharing their accomplishments: “We want to hear your success stories.”

Class President Benjamin Fly of Fly Tie & Lumber Company, Inc., acknowledged the changing landscape of the industry and celebrated

Back row (standing L to r): ELisha coLEman, dustin LorEnz, Justin BuEnnEmEyEr, daniEL Bustard, kEn Lin Front (sE ating L to r): BEn FLy, roman matyushchEnko (instructor), kirstEn VandEnBErg

his class’s resilience. “As we move forward in this industry… we are facing challenges that our grandfathers did not… Collectively, we will keep this industry strong and moving forward,” he affirmed.

The graduates of Class 207 are:

• Justin Lee Buenneneyer – Sponsored by John Boos

• Daniel Bustard – Sponsored by Middle Tennessee Lumber Co., Inc.

• Elisha Burr Coleman – Independent

• Benjamin Fly – Sponsored by Fly Tie & Lumber Co., Inc.

• Ken Lin – Sponsored by Robinson Lumber Co.

• Dustin Lee Lorenz – Sponsored by East Perry Lumber Co.

• Kirsten Vandenberg – Sponsored by Snowbelt Hardwoods

NHLA proudly recognizes the achievements of the 207th Class, along with the following award winners and scholarship recipient:

• Highest Overall Average: Dustin Lorenz – ITSEF Award: $250 check and plaque

• Second Highest Overall Average: Benjamin Fly – Howard Hanlon Award: $150 check and plaque

• Highest Board Run Average: Dustin Lorenz – Westside Hardwood Club Award: $75 check and plaque

• Best Attitude/Citizenship: Kirsten Vandenberg – Milt Cole Award: $100 check and plaque

• Inspector Training School Educational Foundation (ITSEF) Scholarship Recipient: Elisha Burr Coleman

We look forward to the contributions these talented graduates will bring to the hardwood industry. Congratulations to all!

SUPPORT THE NEXT GENERATION OF INDUSTRY LEADERS

The NHLA Inspector Training School Educational Foundation (ITSEF) is dedicated to providing scholarships and opportunities for aspiring professionals. Your contribution helps invest in the future of the hardwood industry. To learn more or make a donation, visit our ITSEF webpage or scan the QR code below. Together, we can shape the future of the hardwood industry!

Are You Making the Most of Your NHLA Membership?

Attention, all NHLA members! You know that being part of NHLA is crucial for your business. From essential resources to industry expertise, we provide what you need to succeed in the hardwood market. But here’s something you might not know: Your NHLA dues, advertising, sponsorships, and even exhibit fees at our convention MAY all be tax-deductible!

Before you start celebrating, remember to always consult your tax professional to make sure you’re handling these deductions correctly and maximizing your tax benefits.

Why NHLA Membership Dues are Different

Let’s get real for a second. NHLA isn’t just another fun industry group. We’re unique because we provide critical, essential business services. That’s why the IRS often sees dues paid to 501(c)(6) organizations like NHLA as ordinary and necessary business expenses. Here’s why NHLA dues stand out:

1. Essential Business Support: Unlike other memberships that might be more about social connections or general networking, NHLA offers tools and services that are vital for doing business in the hardwood industry. From grading rules to specialized training, NHLA is directly tied to your day-to-day operations and industry compliance.

2. Beware of Non-Deductible Portions: Some of your dues may be allocated to lobbying activities, which the IRS considers nondeductible. NHLA automatically contributes 10% of your dues to the Hardwood Federation. Make your tax professional aware.

Talk to Your Tax Pro First!

Navigating tax deductions can be tricky, but your tax advisor is there to help you make sense of it all. Here’s why you should check in with them:

• Clarify IRS Rules: Your tax professional can confirm that your NHLA dues and related expenses meet the IRS’s criteria for “ordinary and necessary” business expenses—something that many other industry memberships do not qualify for.

• Get the Details Right: They’ll help you separate the deductible portions from any non-deductible expenses like lobbying fees, making sure you claim the correct amount.

• Maximize Your Deductions: Beyond membership dues, your tax expert can also help you deduct advertising, sponsorships, and even exhibit fees at our NHLA Convention. These are all expenses tied to promoting your business and making valuable industry connections, which are typically considered deductible business expenses.

What About NHLA’s Inspection Services?

Many NHLA members rely on our Inspection Services for compliance, training, and quality assurance. These services are a key part of doing business in the hardwood industry, and as such, they’re often deductible as ordinary and necessary business expenses. Once again, your tax professional can help ensure you’re claiming these correctly.

NHLA: More Than Just a Membership

We’re not just another industry group. NHLA is THE authority on North American hardwood lumber grading standards, offering tools, education, and guidance that are essential for your business. When you’re part of NHLA, you’re investing in the growth and compliance of your company.

Bottom Line: Consult Before You Deduct!

While NHLA membership dues, advertising, sponsorships, and inspection services are often deductible, every business’s situation is different. That’s why it’s crucial to work with your tax advisor— they’ll make sure you’re taking full advantage of these deductions while staying in line with IRS rules.

Don’t leave money on the table! Connect with your tax professional today to make sure you’re getting the most out of everything NHLA has to offer.

2.0

The 2024 Election is over. The voters have spoken. PresidentElect Trump will return to the White House on January 20, 2025, with significant Republican support in the U.S. House and Senate. While the pivot in leadership will have a significant impact on hundreds, if not thousands, of issues, the one question many in the Hardwood Industry are focused on is how the return of President Trump will impact trade and our ability to export our goods, particularly to China. The memory of the retaliatory tariffs imposed by China on U.S. lumber is still fresh for many in the industry, and concern is high about how a new round will impact our increasingly fragile businesses.

If the Administration holds on to the promises made on the campaign trail, tariffs will be back in a big way. Trump routinely stated he would impose tariffs of at least 60% on Chinese goods and 1020% tariffs on those from the rest of the world. But he has also been adamant that he wants to sell more U.S. products around the world.

How the two desired outcomes become a reality is unclear. And if there’s anything we learned during his first presidency, it’s that this is a man who is unpredictable. Exactly how and how much tariff pain he will inflict on the rest of the world is unknown. The rest of the world is also much better prepared for how the Trump Administration functions and many international companies have adjusted their supply chains, which may hold up better than they did four years ago. China’s economy is also in a much different place economically than it was during the first Administration, and they have already begun to take steps in anticipation of new tariffs. To what degree any of this will make a difference is, again, a great unknown.

Will the full 60% rate on China hit all imports or apply only to smaller sets of goods? Will tariffs be used more as a negotiating tool, as he did during his first term? Or will Trump turn to Congress to write legislation that allows duties to become a more permanent fixture? Although some in the anticipated Trump Administration are

strong proponents of imposing tariffs, particularly Robert Lighthizer, former (and possibly future) U.S. Trade Representative, others are less enamored. Who will have the last word?

How the incoming Administration rolls out new tariffs is also a question. Options include:

Executive Action: In 1977, President Jimmy Carter signed into law the International Emergency Economic Powers Act, which could allow Trump to enact large parts of his trade agenda on his first day in office if an “unusual and extraordinary threat” to national security, foreign policy or the U.S. economy” is identified. During his first term in office, he used this power to pressure Mexico to help slow the flow of illegal migrants to the U.S. Tariffs were never imposed.

Trade Investigations: Trump could also return to the 232, 301, and 201 provisions in trade laws that he used to impose duties on imports from China, as well as on steel and aluminum from trade partners from the European Union, Mexico, and Canada. This is the tool used in the first Administration on Chinese goods. It is important to note that many of these tariffs remained in place during the Biden Administration. Tariffs imposed under the 232 and 301 provisions require public comments and timelines, which could delay the imposition of new duties, although they attempt to link new tariffs to the U.S. Commerce Department and U.S. Trade Representative investigations from the first term, which could speed up the process.

Revoke Special Status: Congress could pass legislation that repeals China’s Permanent Normal Trade Relations (PNTR) with the U.S.,

which they did to Russia after President Vladimir Putin’s invasion of Ukraine in 2022. This move would reset tariffs on Chinese goods to the higher levels of the past.

Withdrawal from Trade Agreements:

Withdrawing or threatening to withdraw from existing international trade agreements could be used to renegotiate those deals, much as what happened with the North American Free Trade Agreement (now the U.S.-Mexico-Canada Agreement). This act would require Congressional consent.

How aggressively the incoming Trump administration will pursue implementation of the campaign trail tariff threats may be an open question, but how the Hardwood Federation takes proactive action is not. The team in Washington is already putting together a strategy to educate new Congressional members and remind returning members about the catastrophic impacts the first trade dispute had on the industry. The American Hardwood Export Council has significant and impactful data to illustrate our concern. We will also be working with our Board and other industry leaders to propose steps the U.S. government can take to insulate the industry should tariffs be imposed.

In the coming months, we will be reaching out to the industry for help with our efforts, particularly with members of Congress and administration appointees in key leadership positions. Stay tuned and get ready! Your political engagement will be essential in 2025!

What Made the 2024 NHLA Annual Convention Unforgettable?

The 127th NHLA Annual Convention & Exhibit Showcase in St. Louis, Missouri, was a resounding success, offering attendees a wealth of insights, networking opportunities, and celebrations that highlighted the dynamic nature of the hardwood industry. From engaging educational sessions to memorable social events, the convention provided a comprehensive experience for all participants.

ITSEF GOLF TOURNAMENT: AN EXCITING START

The convention teed off with the second Annual ITSEF Golf Tournament at Tapawingo National, fostering camaraderie and friendly competition among attendees. Highlights included:

Closest to the Pin Winners:

• Meramec Course: Ed Armbruster (#3) and Kevin Britt (#6)

• Woodlands Course: Sam Patterson (#3), Gary Carrier (#6), and Marty James (#8)

Top Teams:

• 1st Place (Score of 56): Matt Tietz, Chris Lowndes, Sam Ellis, and Denis Dube

• 2nd Place (Score of 62): Andy Nuffer, Henry German, Zack Rickman, and Jordan McIlvain

GENERAL SESSIONS WITH BOARD ELECTIONS

The General Sessions commenced with NHLA Executive Director Dallin Brooks delivering a comprehensive State of the Association address, outlining the organization’s achievements and future goals.

A significant highlight was the election of Bucky Pescaglia as the new NHLA Chairman, marking a pivotal moment for the association’s leadership.

Keynote speaker Mara Liasson, esteemed political correspondent for NPR and FOX News, provided an insightful analysis of the current political landscape. She emphasized the importance of seeking information over affirmation, stating, “Too many of us look to media for affirmations instead of information.” Her perspective encouraged attendees to critically engage with media sources to better navigate industry challenges.

SAWMILL & DISTRIBUTION YARD MEETING: MAXIMIZING PROFITABILITY WITH YIELD ANALYSIS

A focal point of the convention was the Sawmill & Distribution Yard Meeting, which highlighted the USDA grant-funded Yield Analysis Study. This program offers sawmills a structured two-day process to enhance operational efficiency:

• Day 1: Participants record log dimensions and grades, followed by waste measurement at the edger outfeed.

“Too many of us look to media for affirmations instead of information.”

and timing

By participating in this study, sawmills can reduce waste, improve Lumber Recovery Factor, and increase profitability.

For further details or to participate, contact NHLA Chief Inspector Dana Spessert at d.spessert@nhla.com.

EDUCATIONAL SESSIONS: NAVIGATING GRANTS AND MARKET TRENDS

The convention offered a series of educational sessions designed to equip attendees with actionable insights:

• Navigating the Forest Service Wood Innovation Grants: This session provided a comprehensive overview of the grant application process, eligibility criteria, and strategies to secure funding. Charlie Becker, a CF Wood Innovations Specialist with the U.S. Forest Service, shared his extensive experience in forestry and wood product innovation, offering invaluable insights into the resources available through these grants. Joel E. Dulin, President at Jozana Grant Services, brought his expertise in successfully securing grants for wood product companies, outlining key steps to increase the likelihood of approval. Claire Getty, CFO at Thompson Appalachian Hardwoods,

contributed her firsthand knowledge of navigating the grant process, emphasizing the importance of detailed preparation and strategic planning. Together, these panelists empowered participants with practical tips and real-world success stories, showing how leveraging these grants could significantly boost business growth.

Learn more about this initiative in the November issue of  Hardwood Matters

• Hardwood End-User Market Outlook: Industry experts discussed emerging trends affecting demand in sectors such as cabinetry, flooring, and furniture. The session featured panelists Tony Honeycutt, Vice President of Lumber Purchasing at Mullican Hardwood Flooring; Susan Pilato, Founder & CEO of Mantra Inspired Furniture; and Jeff Eichenseer, Director of Marketing and Product Development at Conestoga Wood Specialties. Their insights offered attendees a competitive edge in anticipating shifts and opportunities.

• Innovations and Challenges in the Hardwood Lumber Market: Led by NHLA Executive Director Dallin Brooks, this session explored technological advancements, the importance of cohesive industry messaging, and the impact of wood substitution on market dynamics. Brooks emphasized the need for collaboration, strategic investment, and research-backed marketing to ensure long-term growth.

• Day 2: Logs are sawn by grade, with NHLA inspecting the resulting lumber
the process at the head saw.

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Trade-ins for used equipment.

Consultation on setup and efficiency. One package equipment price for all. Choose your favorite brands of equipment. Existing mill upgrades.

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EXHIBIT SHOWCASE: A HUB OF INNOVATION

The Exhibit Showcase was a vibrant marketplace featuring over 100 exhibitors displaying the latest in hardwood products and technology. Attendees had the opportunity to explore innovations, engage with industry experts, and discover new business opportunities. The National Inspector Connection Hub provided a platform for direct interactions with NHLA National Inspectors, facilitating discussions on industry challenges and solutions.

MEMORABLE SOCIAL EVENTS

Networking was at the heart of the convention, with events designed to foster connections and celebrate the hardwood community:

• NHLA Inspector Training School Alumni Reception: Alumni reconnected and shared experiences, strengthening the association’s network.

• Oktoberfest at Anheuser-Busch Biergarten: Attendees enjoyed an authentic St. Louis experience with beer bratwurst, open bars, yard games, and the iconic Budweiser Clydesdales, blending industry camaraderie with local culture.

• Blue and Gold Gala: A Celebration of Leadership

The convention concluded with the Blue and Gold Gala at the Marriott St. Louis Grand Crystal Ballroom. Outgoing Chairman Jon Syre ceremoniously passed the gavel to Bucky Pescaglia, ushering in new leadership for NHLA. The evening featured live music by the Funky Butt Brass Band, creating a festive atmosphere that celebrated the community and industry that make the NHLA convention so special.

The 2024 NHLA Annual Convention & Exhibit Showcase was a testament to the resilience and innovation of the hardwood industry. Attendees left with valuable insights, strengthened connections, and a renewed commitment to advancing the industry in the years to come.

SAVE THE DATE

The 2025 NHLA Annual Convention & Exhibit Showcase will take place in the vibrant city of San Antonio, Texas at the Marriott Rivercenter, from October 1-3, 2025.

Shaping the Future of Character Grades

Since its inception, NHLA has worked hard to provide the industry with quality education and training. One of our most recent initiatives is the Hardwoods Processing 101 course, tailored to educate newly hired or promoted individuals on everything from tree seedlings to kiln-dried lumber and finished goods. This immersive experience not only equips students with vital knowledge but also sparks meaningful discussions about evolving industry needs.

For instance, in our latest class, Susan Pilato, CEO of Mantra Inspired Furniture, shared her perspective on the demand for more “character” in hardwood grades to satisfy unique design requirements. At Mantra Inspired Furniture, their mission to create furniture that is both beautiful and environmentally mindful is driven by a passion for sustainability. They carefully select sustainably sourced American hardwoods and implement eco-conscious production methods to enhance spaces while preserving the planet for future generations.

This feedback from Susan and our efforts to engage with the architectural and design community highlight a gap in our current 2023 Rules Book. While it outlines character grades like “Colonial Poplar” and “Rustic Oak,” these grades allow sound defects in the cuttings but do not explicitly require them. As a result, if priced higher

than Clear Face Cutting grades, these “Character” grades may lead to orders being filled with standard 1 Common boards.

With the upcoming Rules changes in 2025, I propose a potential “Character Grade” that addresses this gap, balancing the need for aesthetic character with structural requirements:

Character Grade – All Species

Widths: 4” & wider

Lengths: 6’ & longer

The entire board must be sound, except that stain is not allowed in species where stain is not admitted in Clear Face Cuttings. Boards yielding standard 1 Common or better for the respective species would not be admitted. Knot diameter should not exceed one-third the width of the piece, and no through holes are allowed. Variations must be specified in the contract.

Character Strips

Same as Character Grade, except no defects within ¼” of the edge

This idea could be included in the 2027 Rules Book if submitted to Chief Inspector Dana Spessert and passes through the Rules Committee with a 2/3 majority vote from Active members. We welcome your feedback on this or any other Rules submissions. Please reach out to Dana at d.spessert@nhla.com.

SHAPE

THE FUTURE OF OUR INDUSTRY—JOIN US!

Your collaboration and insights drive our progress as we meet the evolving needs of the hardwood industry. Ready to deepen your knowledge and sharpen your skills? Sign up for our next Hardwood Processing 101 course, happening March 26-28, 2025. Don’t miss this opportunity to enhance your expertise and connect with industry leaders.

Scan the QR code below to learn more and secure your spot today!

EDUCATIONAL OPPORTUNITIES

DEC

December 4-6

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

Venue: NHLA Headquarters Location: Memphis, TN

Instructor: Roman Matyushchenko, NHLA ITS Instructor

JAN 2025

Jan 6-Feb 28

Inspector Training School 208th Class

Traditional 8-week hands-on training to achieve a certificate of completion in Hardwood Lumber Inspection.

Venue: NHLA Headquarters Location: Memphis, TN

Instructor: Roman Matyushchenko, NHLA ITS Instructor

MAR

March 18-20

$PC: Control the Process to Improve Lumber Value

A 3-day course to teach your team the first steps in implementing your own Yield Improvement program using statistical process control techniques adapted to a sawmill environment.

Venue: NHLA Headquarters Location: Memphis, TN

March 26-28

Hardwood Processing 101

NHLA will host a workshop to broaden the knowledge of hardwood processing for those industries and people who support sawmills and mill operations. The 3-day workshop will explore the process path from tree to kiln and includes a tour of a local sawmill and concentration yard. Housing and meals are included.

Venue: NHLA Headquarters Location: Memphis, TN

MAR

March 31-April 11

Inspector Training School Online Training Program

MODULE 1 Two weeks of hands-on training.

Venue: NHLA Headquarters Location: Memphis, TN

Module 2: Online study Module 3: Three weeks hands-on training and final testing at NHLA headquarters.

Instructor: Roman Matyushchenko, NHLA ITS Instructor

MAY

May 12-23

Spanish Language

Intro to Hardwood Lumber Grading

For Spanish speakers an Intro class to gain a basic understanding of the NHLA hardwood lumber grading rules and how the rules affect the value of lumber. Housing and week-day meals are included.

Venue: NHLA Headquarters Location: Memphis, TN

Instructor: Roman Matyushchenko, NHLA ITS Instructor

Having freightmares about forest products?

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NHLA JOB BOARD

Here, you will find our current job listings. To see more details of the job or to post a job, visit www.nhla.com/resources/careers-center

HARDWOOD LUMBER INSPECTOR

ALTENBURG, MO

POSITION DESCRIPTION

Lumber inspection. Quality control. Machine operator.

SKILLS & EXPERIENCE REQUIRED

NHLA Graduates

SALARY & BENEFITS

Salary based on experience. Health insurance, 401k.

HOW TO APPLY

Please send all questions about this position, resumes & applications to James Schlimpert at jamesschlimpert@att.net.

HEAD SAWYER

MCKENZIE, TN

Head Sawyer for Hardwood Sawmill at Hurdle Mill. Must be able to saw for grade and keep saw up.

HOW TO APPLY

Please send all questions, applications and resumes to Ronnie Shomaker at shomakerlumber@bellsouth.net.

HEAD SAWYER

HARRISON, MI

Billsby Lumber Company is looking for a Head Sawyer for a Hardwood and Softwood Sawmill. Vertical Blade Sawmill with Vertical Edgers.

Skills & Experience Required

Must Have Experience sawing, circular saw and vertical edgers most preferred. Knowledge of NHLA Grading Rules a plus. Must be mechanically inclined, perform maintenance on saw, diagnosing saw problems, production quality control, motivated, responsible and ready to work.

Must have a drivers license, and pass all drug screening tests.

HOW TO APPLY

Please send all questions, resumes and applications to Jessica Bucher at info@billsbylumber.com.

HARDWOOD LUMBER INSPECTOR INDEPENDENCE, VA

Woodgrain is looking for an experienced Hardwood Lumber Grader for our Independence, VA sawmill to join our team!

The Hardwood Lumber Grader is a vital position in the lumber production process. They accurately inspect and properly grade hardwood boards to the standards set by the NHLA and in- house standards. The Grader is responsible for sorting through the lumber on the grader chains and marks out the common boards, oversize, and any special trimming that is needed. Grader examines both faces of a board then assigns and marks a grade on the board so that correct trimming decisions are made to increase the value of each board.

HOW TO APPLY

Please send all questions, resumes & applications to Michael Anderson at michael.anderson@woodgrain.com.

HARDWOOD LUMBER SALES REPRESENTATIVE INDEPENDENCE, VA

Woodgrain is looking for an experienced Hardwood Lumber Sales Representative for our Independence, VA and Elkin, NC sawmills to join our team!

This position will promote and generate profitable hardwood lumber sales along the East Coast and international markets for our operated sawmills. This includes but is not limited to prospecting and acquiring new hardwood lumber customers for one or more mills, implementing sales strategies, being a product coordinator, manage finished inventory and optimizing the supply chain, all the while adhering to Woodgrain’s values of Safety, Respect, Integrity, Customer Focus, and Servant Leadership.

HOW TO APPLY

Please send all questions, resumes & applications to Michael Anderson at michael.anderson@woodgrain.com.

SALES MANAGER

MOUNTAIN CITY, TN

New River Hardwoods is seeking a dynamic and experienced Sales Manager to join our team. This position will be responsible for the growth and diversification of New River’s customer base, with emphasis on growing its successful millwork/dimension operation in Mountain City, TN. This role requires a deep understanding of the hardwood lumber industry and a passion for delivering exceptional customer service.

HOW TO APPLY

Please send all questions, resumes and applications to David Bailey at dbailey@newriverhardwoods.com.

HARDWOOD LUMBER INSPECTOR

BRATTLEBORO, VT

Allard Lumber is seeking a full time lumber grader to grade

CHAIRMAN’S MESSAGE

primarily kiln dried hardwood at our heated dry division facility. We operate Monday – Thursday 7:00am to 3:30pm and on Fridays 7:00am to 1:00pm. We prefer to promote from within this company so there could be opportunities to grow for the right candidate.

SKILLS & EXPERIENCE REQUIRED

Must be a graduate of the NHLA grading school with at least 1 year of experience. Those with experience in the operation of hardwood kilns, forklifts and/or front end loaders would be ideal but not required.

HOW TO APPLY

Please send all questions, applications, and resumes to Jason Aplin at jasonaplin@allardlumber.com.

HARDWOOD LUMBER INSPECTOR

MUSCODA, WI

A Lumber Grader involves a mix of practical skills, knowledge, and certification. As a Grader you will inspect and grade milled, rough hardwood lumber.

KEY TASKS INCLUDE:

• Examine, grade, and accurately mark lumber for processing.

• Apply grading rules and guidelines to determine the grade of lumber based on visual appearance, size, and characteristics.

• Tally pieces of lumber according to grade and board footage.

• Scale board footage and record results.

• Maintain a clean and safe work environment.

• Collaborate with coworkers in a positive and respectful manner.

• Other duties as assigned.

HOW TO APPLY

Please send all questions, resumes and applications to Sarah Wieland at sarah@wlumber.com.

HARDWOOD MARKETS MATTER

Hardwood Markets Matter, and it is important for NHLA to share market details of the entire Hardwood Industry. We appreciate the support of allied associations and publishers in gathering and sharing this important market information that can help you understand the complete hardwood industry picture.

www.hardwoodreview.com

Through August, U.S. exports of Red Oak lumber were up by 22.5 million board feet year-over-year, more than any other species, with shipments up 14% to Asia, 8% to Europe, and 1% to the Middle East and North Africa. More recent comments from exporters have also been generally positive about #1/Btr Red Oak, suggesting the upswing has continued into Q4. In general, world economies have recovered some from the inflationary shock that dragged down consumer demand in 2023. Exports of Red Oak to China have recovered from sleepy 2023 levels; shipments to Vietnam are up nearly 50%; and Australia has purchased record-setting volumes thus far in 2024, in part to replace some native species that have been placed off-limits to harvesting. In addition, upper-grade White Oak prices hit new record levels this year, opening the door for increased substitution of Red Oak as a lower-priced alternative.

It usually isn’t a problem for sawmills to meet stronger demand for Red Oak, one of the most prevalent species in the woods.

Jan-Aug U.S. Red Oak Lumber Exports by Year

However, industry contraction over the past two years has kept supplies of #1/Btr Red Oak relatively tight. In addition, quotas on railroad ties and poor demand for flooring Oak are providing fewer outlets for the lower-quality portion of the log. A sawmiller recently halted a Red Oak cut because the math no longer added up; there just wasn’t enough money in the #1/Btr and he had no place to sell the lower grades. The traditional winter shift to Hard Maple production in the North will further limit Red Oak supplies, potentially reducing the availability of lumber to fuel export growth early in 2025.

www.hmr.com

The HMR Demand Index (HDI) is a feature in HMR Executive® that illustrates monthly trends in reported demand from 10 major domestic markets for hardwood lumber. Components of the index are color coded with various shades of blue when demand is slow, they transition to gray when demand is fair, and then to light red and deep red when demand moves from good to strong.

Index for October, which is published the first week of November.

HMR Demand Index (HDI)

Upholst.

Wood Components

Board Road

Pallets

Railroad Ties

www.rta.org

WOOD TIE GRADING MINISERIES:

Mainline Grade vs. Industrial Grade Comparison

Wood ties and timbers are essential components of our nation’s railroad infrastructure, supporting both freight and passenger trains and helping our country thrive.

In North America, there are more than 136,000 miles of track to maintain (Source: Railway Supply Institute). This requires a large effort, with wood tie and timber producers supplying 18-20 million ties to the marketplace (Source: Railway Tie Association)

These ties and timbers are more than “industrial” products; they are integral pieces of architecture, with strength and structural integrity at the forefront of the procurement process.

The Railway Tie Association (RTA) is the membership organization that represents both wood tie producers and the railroads that depend on them. Since 1919, RTA has been dedicated to keeping the wood tie market strong and sustainable.

One of RTA’s core commitments is providing education, which is exemplified by our premier annual event, the Tie Grading Seminar. This submission, on mainline grade vs. industrial grade comparison, offers an example of our Tie Grading Seminar’s prestigious

Comparison of Specifications for Grade and Industrial Grade (IG) Crossties

GRADE CROSSTIES

Shall be free of any defects that may impair their strength or durability for use as crossties, such as: decay, large splits, large shakes, slanting grain, or large or numerous holes or knots.

Wane:

6” x 8” ties: max 1” wane in top RBA

7” x 8” ties: min 8” face in RBA (no wane)

7” x 9” ties: max 1” wane in top RBA Max 1” wane anywhere on bottom

Dimensions: All dimensions are minimum for green ties, if 1” greater they will be rejected

Dry ties can be up to ¼” thinner/narrower

Decay: No decay accepted. Blue stain is ok.

Holes: No large holes, defined as ½” diam x 3” deep in RBA, or ¼ width of the surface on which it appears x 3” deep outside RBA; numerous holes = holes with equivalent dimensions

Knots: Allowed up to 1/3 width of the surface on which it appears in RBA, no limit outside the RBA

Shake: Not more than 1/3 tie width long (on end, see sketch in RTA Specifications section 3.1.1.4.6)) or nearer than 1” to any surface permitted

Splits: In green ties, up to 1/8” wide and/or 4” long is acceptable; in seasoned ties, splits no wider than ¼” and/or no longer than the width of the face on which it is seen (ex., 9” on a 9” face) In seasoned ties, splits exceeding these limits are acceptable if end-plated.

Checks: Continuous checks ok up to ¼ the thickness and ½ the length in fully seasoned or treated ties

Slope of grain: Ok up to 1” in 15” – not restricted for interlocked grain species

Bark seams: Ok if bark is no deeper than 2” from surface and/or <10” long

Manufacturing defects: No bow in excess of 1½”

No score marks exceeding ½”

Parallel top and bottom, within ½”

Tie ends must be flat, end sloped no more than ½”

INDUSTRIAL GRADE CROSSTIES

Except as noted, ties shall be free of any defects that may impair their strength or durability for use as crossties, such as: decay, large splits, large shakes, slanting grain, or large or numerous holes or knots.

Wane: 6” x 8” ties: min 6” face in RBA 7” x 8” & 7”x 9” ties: min 6” face in RBA

Outside RBA, up to 5” of wane is allowed on top & bottom

Dimensions: Dry ties can be 1” narrower or ½” thinner & length can vary ±6” for 8’6” and 9’ ties, and from -2” to +6” for 8’ long ties.

Decay: Smaller than 1.5”in diameter acceptable in RBA Slight incipient decay accepted if tie as a whole looks ok. Decay under 3” diameter accepted outside the RBA Decay not acceptable if over 2” diameter on both ends

Holes: Allowed up to 1-1/2” wide on any surface or 3” deep in RBA on any surface. Allowed up to 3” diameter or 4” deep on any surface outside RBA; numerous holes = holes with equivalent dimensions

Knots: Up to 3” in RBA, no limit outside of RBA

Shake: Permitted up to 5” long (on end, see sketch in RTA Specifications section 3.1.1.4.6). Shake may appear on one face or both ends as long as it do does not run the entire length of the tie. If end plates are used they must be mechanically applied to insure they are fully seated for maximum performance.

Splits: In seasoned ties, up to 1/2” wide and/or 11” long is acceptable. In seasoned ties, splits exceeding these limits are acceptable if end-plated.

Checks: Continuous checks up to one-half the tie length are acceptable if less than 2” deep or ¾” wide.

Slope of grain: Ok up to 2” in 15” – not restricted for interlocked grain species

Bark seams: Ok if bark is no deeper than 2” from surface and/or <10” long

Manufacturing defects:

No bow in excess of 2”

No score marks exceeding 1”

Parallel top and bottom, within 1”

Tie ends must be flat, end sloped no more than ½”

educational program, which focuses on identifying and understanding key wood tie defects and limitations.

Full limitations for crosstie defects are detailed in the AREMA 30 standards (Source: American Railway and Engineering Maintenance-of-way Association) and covered extensively at the RTA Tie Grading Seminar.

For more information about wood ties and timbers, the Tie Grading Seminar, and other RTA offerings, please visit rta.org.

SourceS:

Railway Supply Institute: https://www.rsiweb.org/data-technical-resources/rail-supply-economic-impact-study/

Railway Tie Association: https://www.rta.org/why-rta

American Railway and Engineering Maintenance-of-way Association: https://www.arema.org/AREMA_MBRR/Committees/30.aspx

WHAT IS YOUR VIEW OF CROSSTIE COMPETITIVE POSITION RELATIVE TO OTHER HARDWOOD PRODUCTS?

REGARDING YOUR ABOVE ANSWER, PLEASE PROVIDE CONTEXT FOR MARKET, WEATHER OR OTHER CONDITIONS.

EASTERN US

LAKE STATES

Minnesota, Iowa, Wisconsin, Michigan, N Indiana, N Illinois: Weather has been very dry. Larger mills are paying whatever they need too in order to beat everyone else on logs. Smaller mills can't afford it much longer.

ATLANTIC

West Virginia: A few mills are flush with logs but most are low for this time of year going into winter.

Virginia: Weather has been dry and good for logging, however not many logs moving to the mills given current market conditions. Stiff quotas and shutdowns are in place on all hardwood products.

NEW ENGLAND

New England 1: Mills are keeping log inventories low due to poor market conditions. Most mills will not make it through the winter with current log inventories they are carrying. With Fall wet weather approaching along with hunting seasons production in the woods and mills will decrease.

Pennsylvania: Log inventories are still mixed, but trending lower overall. Pallet and Blocking prices seeing yet another decline in volume and price. Timber Mats are mixed on demand and price.

MIDSOUTH

E Texas, NW Louisiana: Logging has improved a bunch but markets are still bad in every corner but ties.

SOUTHEAST

Mississippi: Lack of alternative markets has led to an over production of ties. Tie demand remains steady.

www.nwfa.org

EXPECTED DEMAND BY COLOR IN 2025

Nearly 66 percent of NWFA members expect increased demand for cleaner, more natural wood colors in 2025. According to Hardwood Floors magazine’s 2025 Industry Outlook survey, consumers are avoiding dark colors and gray stains.

“We

Hurdle is the MOST cost effective headsaw, no other sawmill can produce like this and keep total capital investment this low!”

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