Hardwood Matters Jan/Feb 2018 by National Hardwood Lumber Association

TH E VOIC E O F THE HARDWOOD IN DUSTRY

H A R D W O O D M AT T E R S Ja nua r y/Febru a ry 20 1 8

A NEW LOOK AT

HARDWOOD PROMOTION plus 184TH ITS CLASS GRADUATES 2019 NHLA RULES CHANGE VOTING RESULTS

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

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Quality lumber doesn’t just happen. It starts with quality logs and precision sawing. Checking lumber thickness along with inspectors at every machine center guarantees consistent manufacture and grade.

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CONTENTS January/February 2018 • Issue 186

WHAT'S INSIDE

ONLINE

feature

instant

16 A New Look at Promotion

TOP POST OF THE MONTH at facebook.com/NHLAOfficial

departments 8 10 14 20 21

Accolades Legislative Log Education Spotlight Rules Corner Alumni Notes

reader services

nhla.com

4 6 22

2019 NHLA RULES CHANGE RESUTLS ARE IN!

President’s Message In The News Educational Calendar

TORONTO 2018 SAVE THE DATE OCT. 2-4

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H A R D W O O D M AT T E R S T H E VO I C E O F T H E H A R DWO O D I N D U ST RY National Hardwood Lumber Association PO Box 34518 • Memphis, TN 38184-0518 901-377-1818 • 901-382-6419 (fax) info@nhla.com • www.nhla.com

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

ADVERTISER INDEX IBC Brewco, Inc. 9 Cummings Lumber Company, Inc. 7 DMSi 24 Dunavant 5 King City/Northway Forwarding BC Missouri-Pacific Lumber Company IFC Pike Lumber Company, Inc. 13 RossiGroup 3 TJT Consulting 11 Thompson Appalachian Hardwoods 19 U•C Coatings For advertising inquiries: Contact John Hester, Director of Membership at j.hester@nhla.com or 901-399-7558.

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 Desirée Freeman Controller Julia Ganey Member Relations Manager Rich Hascher Inspector Training School Instructor 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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NHLA PRESENTING SPONSOR 2015 • 2016 • 2017

now partnering with these fellow lumber associations…

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& CONTAINER ASSOCIATION

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PRESIDENT’S MESSAGE

A FOCUS ON THE FUTURE

t’s a new year and time for a fresh start. It’s an opportunity for NHLA to ask our members better questions and listen more carefully to their answers. It’s also the time that most of us decide on personal and professional goals for the new year. It is no secret that our global hardwood lumber industry has evolved dramatically since the “Great Recession” of 2008. Ten years later, we are smaller, leaner, and have embraced technology as part of our global business model.

NHLA is changing as well. We recognize that the Rules and Inspection Services will always be the core of our value to the industry. Last year’s member survey taught us that we need to do more, particularly in the area of emerging trends. Strategic planning efforts in August helped staff identify and focus on new opportunities and services that will be beneficial to our members. In November, the NHLA team presented carefully thought out goals from each department, along with an aggressive budget that included new staff additions. In the spirit of the New Year, let’s call the key goals, our New Year’s Resolutions. RESOLUTION #1 — Enhance member engagement, visibility, and services. NHLA’s membership team is already hard at work executing plans to create better virtual and in-person connections with all member categories, including associate, partner and sustaining. In 2018, you will see more communication thanking our members for their commitment to NHLA’s success. Equally important, we are creating new sponsorship and advertising options designed to offer members more visibility in front of companies that are important to their business. RESOLUTION #2 — Develop and deliver new educational programs tied to emerging trends and members’ changing needs. This goal is a partnership between Marketing/Communications and the Inspector Training School teams. We are already making progress in identifying new topics related to sawmill management,

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lumber grading, new market opportunities and technology trends. NHLA is also investigating new ways to deliver education. Most of our education is offered via the Annual Convention or at NHLA headquarters in Memphis. Stay tuned for more regional programs and expanded virtual offerings. RESOLUTION #3 — Launch new Inspection Services programs. Last year, the staff was successful in rebranding the National Inspectors as NHLA Ambassadors to emphasize that these dedicated industry experts have value beyond lumber inspection. Our Inspectors will soon be offering plenty of new ways to increase members’ profitability through new consulting services focused on such topics as sawmill management and quality control. RESOLUTION #4 — Build on last year’s successful NHLA Annual Convention in Nashville. We have big plans for Toronto. The NHLA Convention Committee is already focused on creating an exciting 2018 program. I would encourage everyone who attended last year to make the trip to one of Canada’s most amazing cities. Toronto is a world-class city with excellent restaurants and many entertainment options and its easy to get to . . . you won’t be disappointed. For those of you who are a bit jaded by the success rates of your own New Year’s resolutions, know that the Board of Managers has great expectations for a successful 2018. Your NHLA staff has a renewed focus and sense of purpose, and are committed to our members’ needs. As far as I am concerned, the sky is the limit in 2018! Regards,

Brent Stief, NHLA President | Huron Forest Products

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IN THE NEWS Japan December 2017

HARDWOOD EDUCATION AROUND THE WORLD NHLA Chief Inspector, Dana Spessert conducted hardwood lumber grading seminars in conjunction with AHEC Japan in Fukuoka and Shizuoka this past December. The training workshops were designed for hardwood wholesalers in two cities that are lumber distribution hubs: Fukuoka, in the southeastern island of Kyushu and Shizuoka, located midway between Tokyo and Osaka. Hardwood lumber samples were used to illustrate the NHLA lumber grading rules to participants and a special edition Japanese-language NHLA Rules Book was printed and given to the 90 participants. The Architects Newspaper January 5, 2018

HARD LESSONS IKD has pioneered hardwood cross-laminated timber Thanks to a two-year, $250,000 Wood Innovations Grant from the United States Forest Service, and with further support from the National Hardwood Lumber Association, Indiana Hardwood Lumberman’s Association, and the Indiana Department of Natural Resources, IKD is currently working on an advancement that may completely change the cross-laminated timber (CLT) market. Read the Article: https://archpaper.com/2018/01/ikd-columbus- clt-plinth/#gallery-0-slide-0

Business Wire January 5, 2018

UNIVERSITY OF TENNESSEE ARCHITECTURE STUDENTS DESIGN TALL WOOD STRUCTURE FOR NASHVILLE As the construction boom continues, sustainable urban building practices should be incorporated into every step of urban planning and development. Fourth year architecture students in the University of Tennessee College of Architecture and Design participated in the Nashville Civic Design Center’s (NCDC) Urban Design Studio challenge to design a wood-framed, high-rise multi-use structure. On December 4, the architectural students participated in the final review of the 15-story Timber Tower Studio project, which was co-sponsored by Nashville-based LP Building Products, a leader in high-performance building solutions, and the UT-Oak Ridge National Laboratory Governor’s Chair for High-Performance Energy Practices in Urban Environments. NCDC will release a publication and exhibition of the student work in the spring of 2018, and anticipates further partnerships exploring innovative wood design and construction in the coming year. www.civicdesigncenter.org | archdesign.utk.edu | www.LPCorp.com https://www.businesswire.com/news/home/20180105005729/en/ University-Tennessee-Architecture-Students-Design-Tall-Wood

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ACCOLADES

Congratulations

Milestone Members NHLA would like to recognize our members who are celebrating a milestone anniversary of 10 years or more during the months of January and February.

20 YEARS MITCHELL FOREST PRODUCTS, INC. | Active U1 | January 1998

Welcome New Members

NHLA would like to welcome the following NEW MEMBERS to the Association for the month of December 2017. ACTIVE U1 MEMBER Moretz Lumber and Millwork Deep Gap, North Carolina Tallulah Hardwood LLC Tallulah, Louisiana ACTIVE U2 MEMBER Elk Valley Hardwoods, LLC Fayetteville, Tennessee

BEST HOME FURNISHINGS | Associate | February 1998

30 YEARS BRAXTON LUMBER CO., INC. | Active U1 | February 1988

50 YEARS JOHNNY RICH LUMBER PRODUCTS, INC. | Active U1 | January 1968 J. E. JONES LUMBER CO. | Active U2 | February 1968

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LEGISLATIVE LOG

It Did Happen by DANA COLE, Executive Director Hardwood Federation

Legislation comprehensively revising the Internal Revenue Code, something that has not been achieved since 1986, passed Congress and was signed by the President in the waning days of 2017. While the 600 page bill addresses a wide range of disparate issues, the Hardwood Federation efforts were focused on the following areas.

S CORPORATION AND PASS THROUGHS: The Tax Cuts and Jobs Act creates a 20 percent deduction for the non-wage portion of pass-through income. Senators Daines and Johnson had negotiated a 23 percent deduction during Senate negotiations, but this was ratcheted back to 20 percent, coupled with a lowering of the top individual rate to 37 percent. This blended approach creates an effective tax rate for these entities of 29.6 percent. While this rate is higher than what was promised when leadership and the Administration offered their tax reform blue print back in September, it is certainly an improvement over the current treatment of these tax structures. One caveat—service industries are not eligible for the deduction, but that restriction should not affect our hardwood manufacturing facilities. The 20 percent deduction is limited to the greater of 50% of a business’s W-2 wages or 25% of a business’s W-2 wages plus 2.5% of the unadjusted basis, immediately after acquisition, of all qualified property held in the qualified business for taxpayers with income over $315,000 (married) or $157,500 (individuals). The limitation is phased in over the next $100,000 (married) of taxable income and $50,000(individuals).

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ESTATE TAX: The final bill maintains the estate, gift, and generation-skipping transfer taxes (currently at a 40-percent tax rate). For estates of decedents dying and gifts made after 2017, the new law doubles the exemption for all three taxes from $5,600,000 to $11,200,000 per person. The gift and estate tax exemptions would remain unified, so any use of the gift tax exemption during one’s lifetime would decrease the estate tax exemption available at death.

NET OPERATING LOSSES (NOLS): Current law generally permits a taxpayer to carry back a NOL two years and carry forward a NOL 20 years to offset taxable income. Effective for losses generated in tax years following 2017, the new law limits a taxpayer’s ability to utilize its NOL deduction to 80 percent of taxable income (determined without regard to the deduction). Additionally, carrybacks of all NOLs arising in tax years after 2017 are eliminated and instead would permit all NOLs in this category to be carried forward indefinitely.

EXPENSING/COST RECOVERY: The new law allows for 100 percent (up from 50 percent in existing law) expensing for investments in new and used property made after Sept. 27, 2017 and before January 1, 2023. A five-year phase down of full expensing begins in 2023.

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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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LEGISLATIVE LOG

SEC. 179 EXPENSING LIMITS: This benefit was made more robust by increasing the limit to $1 million, with a phase-out beginning at $20 million in total qualified property placed in service. The provision is expanded to include property used to furnish lodging and improvements to nonresidential real property including roofs, heating, ventilation and air-conditioning property, fire protection and alarm systems, and security systems.

BUSINESS INTEREST EXPENSE: This new provision targets interest payments, which companies have been able to deduct from taxation. Under the new law, the amount of interest expense companies can deduct from their taxes is limited to 30 percent of EBITDA or earnings before interest, taxes, depreciation and amortization. This runs through 2021 after which the basis will be EBIT, or earnings before interest and taxes. EBIT is a more restrictive test and will likely increase taxes for companies with considerable depreciation or amortization.

STATE AND LOCAL PROPERTY TAX DEDUCTIONS: The new law allows individual taxpayers to deduct for tax years beginning after 2017 up to $10,000 for any combination of state and local income taxes, property taxes, and sales taxes.

CORPORATE TAX RATE: The final agreement settled on a 21 percent tax rate for C Corporations, a notch higher than the 20 percent rate in both the House and Senate-passed versions. The corporate alternative minimum tax or AMT is also repealed. Inclusion of AMT at a 20 percent rate in the Senate version threatened to undermine any benefits of a newly lowered 20 percent rate for C Corporations.

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Note: Existing tax incentives for standing timber and reimbursements for reforestation costs were left along by tax writers. (This was an area of focus of the September HF Fly-In and we are pleased that Congress recognized the benefits of these incentives to maintain the viability of our nation’s working forests.) Final Note: All of the renewable energy tax credits that made it into the House tax reform bill were stripped out in conference. Leadership has vowed to pursue a follow-up package of so-called “tax extenders” to address these credits. One of the proposals in the mix is the Biomass Thermal Utilization or BTU Act, which would provide an investment tax credit for installing residential and commercial biomass heating units that run on chips or pellets. The Hardwood Federation has been advocating for this proposal as a means of addressing our residuals issues. A word of caution though—while we have attempted to describe the relevant provisions and their potential effect on our sector, each company will be impacted in different ways based on your unique circumstances. We strongly urge you to consult with your tax planners and accountants as this new law moves into the implementation phase.

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PRESIDENT’S MESSAGE

HARDWOODS

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EDUCATION SPOTLIGHT

The 184th Class of the NHLA Inspector Training School Graduate and Begin Their Career In the Hardwood Industry

HLA Alumni Gary Wallace and Ray White, delivered keynote remarks as twenty-five students graduated from the 184th Class of the NHLA Inspector Training School on Friday, November 17, 2017.

Gary Wallace, a graduate of the 25th class, recounted his experience at the School. “The lumber industry has been my life because of this School,” he recounted. Gary described each graduate as having 4 unique identities “You are a laborer, a teacher, an inspector and a banker,” he explained. “A banker, because as an inspector you will be assigning money to each board. Your decisions will determine if you are making money for the company you are working for or losing money.”

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Gary described his upward moving career path in the hardwood industry, equating the beginning of his career with military ‘basic training.’ “What does military basic training have to do with the Inspector Training School,” he asked. “Well, you have just completed the basic training of lumber grading and it is now up to you to apply these grading rules.” Ray White, president of Harold White Lumber Inc. also addressed the assembly. Ray thanked everyone for the privilege of speaking and explained his unique connection with the School and the 184th Class. “I speak to you today while standing on hallowed ground. And I mean that sincerely because of the thousands of students who W W W. N H L A .C O M

“

. . . One day you will be trading lumber with each other and I encourage you to cherish this very unique friendship and the time you’ve had together.”

have been before you and the companies who contributed to this organization to build this School. I am the 4th generation of my family business,” he explained. “I am a graduate of the 78th class, my brother graduated before me and my father was a member of the 12th class. I am here because my son and my nephew are both graduating today. As my brother and I look out at this class, we see the succession possibilities.” Ray told the graduates that the education they have received is the foundation, the core of their future. “I expect that most of you will transition into sales, leaders and eventually company owners. You will be the next leadership of this Association and this industry and I look forward to seeing you in the future. You have made friends for life. One day you will be trading lumber with each other and I encourage you to cherish this very unique friendship and the time you’ve had together.”

Special Thanks!

Students of the 184th class would like to thank Harold White Lumber for sponsoring the 184th class apparel.

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GRADUATES OF THE 184TH CLASS: Nick Armour, Drake Sawmill Joe Alan Atkinson, McCreary County Hardwoods Frank S. Beal, III, Beal Lumber Company Michael J. Bryant, Somerset Wood Products Kyler Burkman, B & B Timber Co., Inc. Garett Cauley, Independent Brady J. Elliott, Stateline Lumber Taylor Paul Felder, Independent Alexander Fischer, Maley & Wertz, Inc. Ian W. Gutchess, AHC Hardwood Group Joseph Hicks, Stephens Hardwoods Thomas Hunt, Kendrick Forest Products Jathan Iler, Gutchess Lumber Company, Inc. Honorable Mention to Tadeusz Jaszczur, Cherry Forest Products John Ross Tye Jordan, Associated Hardwoods Reilley Mastroe, Gutchess Lumber Company, Inc. Joshua David Morris, Clark Lumber Company Cody Pennington, Middle Tennessee Lumber Dylan Plowman, KyKenKee, Inc. Joshua Thornton, T J Moss Lumber Co. Jeffrey Weerdenburg, Cut Rite Lumber Limited Ray D. White, Jr., Harold White Lumber Sawyer E. White, Harold White Lumber Tracy Yang, Li Zhiyu

Andy Johnson of the Hardwood Market Report presented the individual achievement awards.

Joseph Hicks – John Thomson Award for Highest Overall Average Sawyer White – Howard Hanlon Award for Second Highest Overall Average Sawyer White – Westside Hardwood Club Award for Highest Board Run Average Frank Beale III – J.P. Hamer Award for Most Improved Student Joseph Hicks – NHLA Award for Best Attitude/ Citizenship Taylor Felder – Lumbermen’s Club of Memphis Leadership Award Garrett Cauley & Taylor Felder - Willard Scholarship Award Garrett Cauley & Taylor Felder - ITSEF Scholarship

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Success will require increased collaboration with other associations and organizations as well as new conversations on how the industry’s brand translates to consumer audiences.

A New Look at

Promotion

IN A RECENT NHLA MEMBER SURVEY, LACK OF INDUSTRY PROMOTION WAS NUMBER ONE OF THE TOP FIVE MEMBER ISSUES. MOST RESPONDENTS EXPRESSED CONCERNS ABOUT THE POTENTIAL OF INCREASED ACTIVIST ACTIVITY IMPACTING THEIR ABILITY TO HARVEST TIMBER ON PUBLIC LANDS, OTHERS CITED THE INCREASED COMPETITION OF FAUX WOOD PRODUCTS. ALL AGREED ON THE NEED TO CREATE BETTER CONNECTIONS WITH CONSUMERS.

ong term, sustainable promotional efforts have been on the hardwood industry’s wish list for decades. And while it seems that everyone has their own passionate definition of what success looks like, finding common ground has proven to be elusive. We have learned from experience that check-off programs can be divisive in a fragmented industry. And member and association funded public relations campaigns rarely receive enough consistent and broad- based donations to sustain a viable, long term effort. What does an effective promotional strategy look like for the hardwood industry? Most cite the “Got Milk?” campaign as the gold standard for industry promotion.The campaign utilized a classic integrated marketing communications approach, public relations, print and online advertising. It was widely popular with consumers—who doesn’t like celebrities with milk moustaches! It was creative, catchy, and a media darling. And the ad agency won numerous awards.

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There was only one problem—the campaign did not actually inspire consumers to buy more milk, nor did it identify the real problem behind the decrease in consumption. It was certainly entertaining, but it did not engage or influence consumers to change their behavior. The popularity of a promotional strategy doesn’t always mean effectiveness. An important lesson for the hardwood industry as we consider what our promotional efforts might look like moving forward. So if a multi-million dollar, 20 year public relations campaign doesn’t work, what does? What are the components of an effective promotional strategy? The answer is . . . it depends. The ultimate goal of any promotional effort is to move beyond consumer communications to consumer engagement. Effective promotion requires a toolbox of strategies and delivery vehicles to achieve that goal. How and when you use what is in the toolbox depends on your target audiences and their needs, budget, and the industry’s ability to participate in the process. W W W. N H L A .C O M

Forever Forest Exhibition at the Omaha Children’s Museum Perhaps Dave Bramlage, Chair of NHLA’s Promotion Committee identified the challenge best when he asked ”how do we get consumers to lean in and listen to the story of our industry?

Promotion and the Art of Storytelling Effective promotional campaigns utilize a variety of marketing tools and strategies to communicate their message. All are important, but none are more powerful than a good story. We all learn from stories, it is how our brain works. Research has shown that consumers prefer marketing strategies based on stories than traditional, fact based approaches. And the more we engage consumers with our stories, the more likely they are to pass them on to others. The good news is that the hardwood industry has incredible stories to tell, but we may need to re-think our traditional approach. While we are comfortable communicating what we do as an industry, consumers are more interested in stories focused on the “why” of what we do. The industry’s ability to translate our commitment to the environment and responsible harvesting into messaging that connects with consumers personal beliefs will be critical to the success of future promotional efforts. Other agricultural sectors have been successful in changing consumer perception through effective storytelling. These stories can be found on company websites and as part of national promotional campaigns. They also usually involve employees as “brand champions.” This “bottom up,” “top down approach has had a positive impact on consumer perception, and has played a role in countering false claims of activist organizations. W W W. N H L A .C O M

HARDWOOD FOREST FOUNDATION 2.0 Effective story telling can take many forms. Consider the innovative work of the Hardwood Forest Foundation and the Omaha Childrens’ Museum in creating the Forever Forest Exhibition. Since 1989, The Hardwood Forest Foundation (HFF) has offered a variety of science based educational programs and activities targeted to teachers throughout the United States and Canada. Their recent partnership with the Omaha Children’s Museum and industry supporters to create the “Forever Forest” traveling exhibition represents a new approach to story-telling. Forever Forest offers visitors a “Please Touch” learning experience on how all of our lives are connected to the forest. Exhibit highlights includes interactive scenes of forest life, responsible harvesting and lumber transportation, even a lumber yard. The exhibit is currently housed in the Omaha Children’s Museum in Omaha, Nebraska until April, when it will embark on a ten-year nation-wide tour. Thanks to the support of industry partners across the U.S, current tour stops include the Scott Family Amazeum in Bentonville, Ark., the Magic House in St. Louis, and the Minnesota Children’s Museum in St. Paul, Minnesota. Forever Forest is designed to address the real problem our industry faces—a profound lack of understanding of who we are, what we do, and the why and how of lumber harvesting, shipping and sales. It also promotes our commitment to sustainability. And HFF has evolved its traditional audiences and key influencers (teachers) to include parents and their children. Finally, the exhibit is designed to educate children through play, no better J A N / F E B 2 0 1 8 H A R D W O O D M AT T E R S |

way to tell a story, create a lasting memory and just possibly, change how the hardwood is perceived by the next generation of consumers. HARDWOOD MANUFACTURERS ASSOCIATION The Hardwood Manufacturers Association is yet another industry leader that should be recognized for its strategic, and long-term approach to promotion. In 1993, HMA created the American Hardwood Information Center. Today, the site is seen as the “authoritative resource for information about American Hardwoods, offering industry experts on design trends, care and maintenance, installation, and professional specifying.” The site is also known for its promotion of the “eco-friendly” and sustainable nature of American hardwoods. With over 500,000 hits per year, the site includes information for both consumers, industry members, architects and designers. HMA’s quarterly consumer editorial trends reaches an estimated 150 million people. The site is also well known as a resource amongst consumers, and the architectural and design communities.

Partnerships That Matter It takes a lot of time and effort to develop and maintain industry promotional strategies. Building alliances with other organizations can help reach new audiences, test messaging, and expand a campaign’s scope and effectiveness.

For the past year, NHLA’s Promotion Committee has been exploring alliances with organizations who can help enhance our promotional efforts. NORTH AMERICAN FOREST PARTNERSHIP The North American Forest Partnership (NAFP) is a non-profit organization created to help move the forest value chain from consumer communications to consumer engagement by telling its story more effectively. Members include a diverse group of companies and organizations throughout the United States and Canada representing agencies, conservation groups, companies, trade association, universities, foresters’ professional associations, and landowners. One of the primary goals of NAFP is to build and share a set of shared communications resources to promote consistent messaging across the industry. NHLA will be working with NAFP to share such resources to members. PROJECT LEARNING TREE Since 1976, Project Learning tree has been using trees and forests to increase K-12 students understanding of the environment and actions they can take to conserve it. Key components of the PLT program includes high quality instructional materials from kindergarten to graduation, carefully designed professional development programs for teachers and an extensive distribution and support network. The program is delivered in all 50 states and several countries through a large and diverse network of partners.

THE SMILE: American Tulipwood engineered into a pure and efficient stuctural form.

Promotion Success Story No one can debate the value of the American Hardwood Export Council’s approach to promoting American hardwoods overseas. AHEC’s multi-faceted approach to promotion has reached more than 28 million people in 24 countries. Working alongside industry trade associations and industry members, AHEC has provided the hardwood industry with countless opportunities to grow their business. 20

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Protection starts at the first cut.

Through R.I.S.E., The Gary Sinise Foundation is constructing one-of-a-kind specially adapted smart homes for our nation’s most severely wounded heroes. More than 20,000 educators attend teacher workshops held in regional areas across the country. The workshops helps educators how to integrate environmental education into their teaching and become comfortable teaching outdoors whether “outdoors” is in an urban, suburban, or rural environment.

ANCHORSEAL®

NHLA’s partnership with Project Learning Tree offers members the opportunity to support the program at a regional or national level. Opportunities for member involvement may include sponsoring teacher workshops in regional areas or visiting PLT classrooms. GARY SINISE FOUNDATION The Gary Sinise Foundation was established by actor Gary Sinise. The Gary Sinise Foundation’s broad mission includes building specially adapted smart homes for America’s severely wounded veterans through its R.I.S.E. program (Restoring Independence Supporting Empowerment). Each home features automated amenities to ease the daily challenges these heroes face. In addition, R.I.S.E provides adapted vehicles, mobility devices, and home modifications to injured, wounded, ill and/ or aging heroes from all conflicts. NHLA is proud to have been named a National In-Kind Sponsor of the Foundation. Members will have the opportunity to donate lumber and other hardwood products to support our heroes in the construction of their new homes. More information on how individual companies can support the Foundation will be available in February. Industry promotion is a journey, not a destination. As illustrated by the announcement of our new “promotional partners,” NHLA’s Promotion Committee is focused on creating new approaches and new member value designed to promote the hardwood industry. Success will require increased collaboration with other associations and organizations as well as new conversations on how the industry’s brand translates to consumer audiences. Look for updates in Hardwood Matters as we move forward. W W W. N H L A .C O M

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RULES CORNER

2019 NHLA Rules Change Voting Results The Rule for Aromatic Red Cedar will be changed for the 2019 NHLA Rules Book by DANA SPESSERT, NHLA Chief Inspector

he results of the Rules Change Proposals are in...and we had a much better response compared to previous years. This year a total of 139 votes were cast as compared to 65 and 85 votes in the previous Rules Change votes.

Note: Some ballots cast had only select Rules change proposals selected and not all four, so the total number of votes on each Rules proposal will not be equal.

The results of the vote are as follows, there is a 2/3 majority requirement to pass a Rules change:

1. Standard Inspection by Species

Aromatic Red Cedar - Page 34 Remove: “Variation in thickness may be 1/2” on 4/4” to 8/4”.” Replace With: “Standard Miscut Lumber Rule to apply.” Vote Results: For 101, Against 24, 81% Favorable Vote so the Rules Change Passed.

4. Standard Inspection by Species

Walnut & Butternut - page 28 FAS: Standard except Minimum cuttings: 4” wide by 3’ long, or 3” wide by 6’ long Widths: 5” and wider Lengths: 6’ and longer Pieces 6’ and longer, 5” and wider, 3’ to 7’ surface measure shall yield 10/12-( 83-1/3% )-clear face in two cuttings; 8’ and over surface measure in three cuttings, except that pieces of 12’ and over surface measure which will yield 11/12 –( 91-2/3% ) – clear face with one additional cutting are admitted. FIF: Pieces 6’ and longer shall grade FAS on the better face. The reverse side of the cuttings shall be sound as defined in Sound Cutting or the reverse side of the board grading not below No. 1 Common. Vote Results: For 51, Against 84, 38% Favorable Vote so the Rules Change Failed. If anyone has any questions please contact Chief Inspector, Dana Spessert, d.spessert@nhla.com.

2. Standard Inspection by Species

Basswood – page 24 Remove: “Note: Dormant twig buds to be considered as burls.” Vote Results: For 73, Against 54, 57% Favorable Vote so the Rules Change Failed.

3. Standard Grades

No. 2A Common & No. 2B Common – page 17 Remove: “No. 2A Common & No. 2B Common” Replace with: “2 Common” Remove: “Note: The grade of No. 2 Common is divided into two categories: No. 2A Common (clear face cuttings) and No. 2B Common (sound cuttings).” Remove: “Note: No. 2B common – All the requirements of the grade No. 2A Common apply except that cuttings will be sound as defined in Sound Cutting.” Vote Results: For 53, Against 84, 39% Favorable Vote so the Rules Change Failed.

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ALUMNI NOTES

WHERE ARE THEY NOW? MICHAEL R. KLINGLER, 116th CLASS

WHAT'S MY FONDEST INSPECTOR TRAINING SCHOOL MEMORY? The whole experience would classify as a fond memory but the camaraderie of such a large and diverse class with many good people and great times is some of my fondest memories. HOW DID THE CLASS FURTHER MY CAREER? I took the knowledge back to the small sawmill where I was employed and went right to work grading green lumber. I not only focused on the lumber but the logs that were producing the boards. The understanding of what each log will produce and the value of that product allowed me to become a log and timber buyer. During those years I also sold green lumber, oversaw the mill and became a certified logger. All of that experience got me to be the successful business owner that I am today. WHAT IS YOUR CURRENT OCCUPATION? In 2002, I started my own business Sugar Ridge Timber, Inc. We buy standing timber and cut logs supplying many sawmills and specialty markets. We also buy and sell lumber, operate a log concentration yard and a company log crew which earned me the 2004 “Indiana Logger of the Year” award. The NHLA Inspector Training School propelled me to where I am today. I’ve always used that knowledge as a stepping stone to whatever sector of the hardwood industry I had an interest. WHAT IS YOUR FAVORITE ASPECT OF YOUR JOB? My favorite aspect of grading lumber was always the fact that no two boards, like people, were the same. Each board coming from a similar source was unique in its own way. And my favorite aspect of my current position is timber management and supplying cut logs from a great renewable resource.

What is the NHLA Inspector Training School Progressive Class all about? The NHLA dictionary defines the progressive class as NHLA Inspector Training School Progressive Class

n·h·l·a \ in-ach-el-a \ in·spec·tor \ in-spek-ter \ train·ing \ trey-ning \ school \ skool \ pro·gres·sive \ pruh-gres-iv \ class \ klas \

A class designed to get your employees trained at a progressive pace saving you time and money. 1 Related to or characterized as progress; moving forward, onward; advancing. 2 A person employeed to grade lumber, to oversee the profits of a mill. 3 A body of students meeting regulary in person & online.

Block 1 • April 9-21 • Memphis, TN

www.nhla.com/education/inspector-training-school

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

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EDUCATION & TRAINING For hardwood business owners and their employees Register for classes at www.nhla.com/calendar

FEBRUARY

MARCH

20-22

5-24

Intro to Hardwood Lumber Grading

Inspector Training School Progressive Program BLOCK 3

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

Final block of study for ITS Progressive Program. Only students who have successfully completed Block 1 & 2 can apply.

MARCH

New! 15-16

Sawing and Edging Workshop

Improve your sawing & edging skills and improve the yield of higher grade lumber. More yield = more revenue Venue: University of Kentucky / Jackson, KY

MARCH

19-23 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: Dabney S. Lancaster Community College Clifton Forge, VA

Venue: NHLA Headquarters Memphis, TN

Instructor: Barry Kibbey, NHLA National Inspector

Instructor: Rich Hascher, NHLA ITS Instructor

MARCH

APRIL

27-29

9-21

18-20

30-May 2

Intro to Hardwood Lumber Grading

Inspector Training School Progressive Program BLOCK 1

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: Graber Lumber Company / Spencerville, IN

Alternative program to the 12week Inspector Training School Block 1: Two weeks of hands-on training Block 2: Online study time Block 3: Three weeks handson training and testing

Instructor: Barry Kibbey, NHLA National Inspector

Venue: NHLA Headquarters Memphis, TN

Instructor: Barry Kibbey, NHLA National Inspector

Venue: Maysville Communmity and Technical College / Morehead, KY Instructor: Barry Kibbey, NHLA National Inspector

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

Venue: Allard Lumber Company / Battleboro, VT

Venue: NHLA Headquarters Memphis, TN

Instructor: Jack English, NHLA National Inspector

Instructor: Rich Hascher, NHLA ITS Instructor

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EDUCATION IS KEY TO YOUR COMPANYâ&#x20AC;&#x2122;S SUCCESS "No better place to start in the lumber/forest industry. That knowledge can carry you in many avenues of our industry." â&#x20AC;&#x201D;Michael Klingler, NHLA Inspector Training School 116th Class

For Inspecor Training School info visit www.nhla.com/education/inspector-training-school

MAY

JUNE

16-Aug 3

4-7

Inspector Training School 186th Class

Intro to Hardwood Lumber Grading

Traditional 10 week hands-on training to achieve the certificate of completion in Hardwood Lumber Inspection.

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

Venue: Northwestern Michigan College Traverse City, Michigan

Venue: Yoder Lumber Co., Inc. Millersburg, OH

Instructor: Rich Hascher, NHLA ITS Instructor

Instructor: Barry Kibbey, NHLA National Inspector

JUNE

JULY

AUGUST

19-21

16-19

6-18

29-Nov 17

Intro to Hardwood Lumber Grading

Inspector Training School Progressive Program BLOCK 1

Inspector Training School 187th Class

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: North Carolina State University / Raleigh, NC

Venue: McKeever Environmental Center Sandy Lake, PA

Instructor: Mark Bear, NHLA National Inspector

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Instructor: Barry Kibbey, NHLA National Inspector

Alternative program to the 12week Inspector Training School Block 1: Two weeks of hands-on training Block 2: Online study time Block 3: Three weeks handson training and testing Venue: NHLA Headquarters Memphis, TN

Traditional 12 week hands-on training to achieve the certificate of completion in Hardwood Lumber Inspection. Venue: NHLA Headquarters Memphis, TN Instructor: Rich Hascher, NHLA ITS Instructor

Instructor: Rich Hascher, NHLA ITS Instructor J A N / F E B 2 0 1 8 H A R D W O O D M AT T E R S |

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