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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
For advertising contact: Chase Musarra c.musarra@nhla.com or 901-399-7557
Darci Shannon d.shannon@nhla.com or 901-399-7567
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, Content Strategist & Editor 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, Communication & Outreach Specialist d.shannon@nhla.com
The RossiGroup has been helping customers navigate the global hardwoods industry for almost a century.
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We deliver a world class selection of hardwoods – including the gold standard in cherry – all sorted, milled and dried to tolerances, consistencies, and yields that were not even possible five years ago. Visit us www.rossilumber.com or call 860-632-3505
COLLABORATION SUPPORTS GROWTH AND AWARENESS IN HARDWOOD
Collaboration: to work jointly with others, especially in an intellectual endeavor. To cooperate with an agency with which one is not immediately connected.
At NHLA, collaboration is more than a definition—it’s a cornerstone of our strategic plan. We are committed to fostering relationships both within and beyond the hardwood industry. Throughout my term as Chairman, I’ll use Hardwood Matters to spotlight the connections we’re building and the progress we’re making together.
For example, the NHLA Hardwoods Special Edition is an exciting collaboration created in partnership with Building Products and The Merchant Magazine. These trusted publications, with a combined circulation of over 20,000 industry professionals—ranging from lumberyards to manufacturers—will feature our special edition in February. This collaboration gives us an incredible platform to educate a broader audience about the unmatched value of hardwood and promote the industry we are all so passionate about.
The special edition will delve into critical topics for today’s environmentally conscious marketplace. It will emphasize the sustainability of hardwood as an unequivocally renewable resource and spotlight the innovative work of the Real American Hardwood® Coalition (RAHC). Readers will be introduced to the coalition’s website, realamericanhardwood.pro, which serves as a comprehensive guide for hardwood benefits for professionals. This platform showcases the powerful story of hardwood’s role in biophilic design and its health and environmental advantages. Whether it’s in architecture, furniture, cabinetry, millwork, or flooring, hardwood connects people with nature in a way no other material can.
What makes this edition even more special is the collaboration behind it. It features articles from industry experts like Rob Cabral, Vice President of Lumber and Inventory Management at UCS
Forest Group of Companies; Thea Rose Lemberger, M.S., an Ecologist; and Dan Meyer from Hardwood Review. Their insights and expertise enrich this publication, ensuring a comprehensive look at the hardwood industry’s many facets.
And here’s some exciting news: We’re making the special edition available online for our members to access, ensuring everyone has the opportunity to benefit from this valuable resource.
Producing the NHLA Hardwoods Special Edition is a reminder of how much we can achieve when we work together. As members, I encourage you to stay engaged in our promotion and education efforts throughout the year. Opportunities for collaboration are abundant, and your NHLA leadership is steadfast in its mission to promote hardwood and educate the marketplace about the unmatched benefits of our products.
Together, let’s continue to grow and strengthen our industry.
Bucky
Pescaglia
NHLA Chairman | Missouri-Pacific Lumber Co., Inc.
Rooted in Tradition, Growing Through Change
Change is constant. I used to hate change. As a kid, moving multiple times and losing friends was hard. I went to three different high schools, which was overwhelming. I wanted friends but often didn’t come across as friendly because I was too focused on adjusting to new environments. Over time, I’ve come to see that change is inevitable. Even when we choose to stay the same, things around us are constantly shifting.
Journalist Sydney J. Harris captured this paradox perfectly: “Our dilemma is that we hate change and love it at the same time; what we really want is for things to remain the same but get better.”
This brings us to an important question for our industry: Is it possible for the hardwood lumber industry to remain the same but get better?
To answer this, we need to break it down into three parts: the current state of the hardwood industry, what should remain the same, and what needs to improve.
THE CURRENT HARDWOOD INDUSTRY
The hardwood industry isn’t just about lumber prices and production dictated by supply and demand. It is a delicate and dynamic balance between forests and . . . well . . . everything else.
Hardwood lumber is a commodity derived from a natural resource, meaning the supply is inherently unpredictable. However, NHLA grades and tally systems provide consistency and quality assurance for customers, ensuring reliable outputs. This daily task of turning supply variability into predictable outcomes defines our industry.
Demand for hardwood is tied primarily to construction and furnishings, both domestically and internationally. Economic factors like GDP, unemployment rates, housing starts, and remodeling expenditures impact this demand. Additionally, hardwood products face competition from substitute materials, making it essential for our industry to adapt to an ever-changing economy. This competition drives daily price fluctuations and presents ongoing challenges for the hardwood market.
WHAT SHOULD REMAIN THE SAME
Some aspects of the hardwood industry are constants. Wood will always come from trees, and there will always be a need for buildings and furnishings. These fundamental elements of supply and demand form the bedrock of our industry.
But beyond these basics, is there really anything else we want to stay
the same? What we truly need is for trees to remain integral to construction and furnishings, and for the industry itself to stay viable.
WHAT NEEDS TO GET BETTER
We must focus on increasing recovery rates from log processing and achieving higher prices for lumber. Process innovation can optimize variability and reduce waste, enabling us to extract better wood quality and higher volumes. Embracing new equipment and technology is key to making this happen.
While price fluctuations will always be part of the hardwood market, we can mitigate their impact by changing how we position wood in the market. By differentiating our products and addressing demographic and economic changes, we can create new opportunities and stabilize the industry’s future.
The Answer: Can We Stay the Same but Get Better?
The answer is no. Optimizing a resource as variable as hardwood in a global market with price uncertainty makes “staying the same” impossible. Change is not just inevitable—it is essential.
This reality can feel overwhelming, especially when resources like money, staff, and time are limited. It reminds me of high school, when change seemed insurmountable. Yet, it was those difficult transitions that ultimately drove me to embrace what I once resisted. Change became the path to progress.
Finding Common Ground
My advice for life? Don’t move while your kids are in high school. My advice for sawmilling? Accept that supply uncertainty and price variability will always be part of the equation. Instead, focus on innovating processes and differentiating products to achieve stability in operations and growth in markets.
That is our common ground: to remain the same in our dedication to quality and sustainability while embracing the changes needed to make the hardwood industry better. Change may be hard, but it’s the only way forward.
Dallin Brooks NHLA Executive Director dallin@nhla.com
| 901-377-0182
Welcome New Members Milestone Members
(August-December)
ACTIVE MEMBERS
MacDonald & Owen Lumber Company, West Salem, WI
Berdoll Sawmill, Cedar Creek, TX
Hilltop Lumber, Carrollton, MO
M & S Hardwoods, Williamsfield, OH
Timber to Pasture Overnight LLC, Sterrett, AL
ASSOCIATE MEMBERS
Artisan Born, Jane, MO
Mantra Inspired Furniture, Norfolk, VA
SUSTAINING MEMBERS
Paychex, Allentown, PA
Rapid KC , Kansas City, MO
Tracy Export, Inc., East Dubuque, IL
Taylor Group Inc., Louisville, MS
Waldo Solutions, Inc., Cassell, MI
Woodus K Humphrey & Co, Shreveport, LA
Congratulations to these companies who are celebrating significant milestone anniversaries with NHLA.
5 YEARS
TROYER HARDWOOD LLC
Active | October 2019
MELLOTT MFG. CO. INC.
Sustaining | October 2019
FITZGERALD LUMBER LLC
Active | November 2019
25 YEARS
ANGELBECK LUMBER CO., INC.
Active | December 1999
GIORGIO GORI USA, INC.
Sustaining | October 1999
KEPLEY-FRANK HARDWOOD CO., INC.
Active | October 1999
PANNEAUX MASKI INC.
Active | October 1999
ROACH SAWMILL & LUMBER CO.
Active | October 1999
75 YEARS
MARSH LUMBER CO., INC..
Associate | November 1949
YOUR ENEMY IS NOT IN THIS ROOM
Back in October, Rob Cabral of UCS Forest Products, Chair of the Market Impacts Committee, stood up in front of his peers—industry leaders from across the hardwood sector— and made a statement that stuck with everyone in the room: “Your competitor is not in this room.” What Rob meant was crystal clear. Our real competition isn’t each other—it’s the look-alike products out there pretending to be hardwood. These imitators—laminates, vinyls, and other synthetic materials—are the enemy, and they’re who we’re fighting against every single day. And NHLA is leading that fight.
Just last January, I wrote an article titled A New Year – A New Resolution, outlining NHLA’s goal to produce a series of videos featuring experts from beyond our usual circles. The goal was ambitious: use these videos to influence the influencers—architects, designers, and specifiers—to recognize the unparalleled value of Real American Hardwood®. Well, we saw that goal through, and the results have been phenomenal. These videos, paired with RealAmericanHardwood.pro, give us a powerful platform to showcase hardwood’s beauty, durability, and sustainability. They’re tools to set the record straight and shift perceptions in favor of the real thing.
NHLA: Doing More With Your Money
Rob’s comment underscores why NHLA exists. We’re here to rally the industry together, not as competitors but as allies in a larger effort. As an NHLA member, your investment delivers unmatched value, amplifying your impact far beyond what’s possible anywhere else.
We’re not just producing videos—we’re influencing policy, funding groundbreaking research, and building resources to keep hardwood competitive in a global market. From sustainable forestry innovations to tools that help you connect with end-users, NHLA is making sure your investment pays off where it matters most.
Turning Influence Into Action
The hardwood industry doesn’t need more talk—it needs action. That’s exactly what NHLA is delivering. These videos aren’t just about marketing; they’re a strategic offensive to target the people who make material decisions. By demonstrating the unmatched advantages of real hardwood, we’re shifting demand away from look-alike products and back where it belongs—with us.
A United Industry
Rob’s words are a powerful reminder that we’re stronger together. NHLA fosters collaboration across the industry, creating a community of professionals dedicated to one goal: ensuring the success and longevity of hardwood. Whether through shared knowledge, innovative tools, or groundbreaking initiatives, NHLA keeps us all moving forward.
So, as we charge into 2025, let’s remember: our competitor isn’t in this room. And with NHLA leading the way, we’re not just defending our industry—we’re advancing it. Together, we’re shaping a future where Real American Hardwood® is the undeniable choice.
John Hester Chief Development Officer
THE 2025 CONGRESSIONAL LINEUP: A Busy Year Ahead
By DANA COLE, Executive Director of the Hardwood Federation
The Congressional calendars for the 119th Congress were released in early December, and 2025 is shaping up to be a packed year in Washington. Unlike the usual schedule where Members of Congress arrive in D.C. early in the week and leave by Thursday afternoon, the new calendars include several Fridays and potential weekend sessions. Both the House and Senate are preparing to tackle significant and complex policy issues, making full use of their time in Washington essential.
TAX POLICY: A CRITICAL YEAR
2025 is expected to be a pivotal year for tax policy. Industry insiders are calling it the “Super Bowl of Tax,” with multiple key provisions up for debate. Early plans suggest two budget reconciliation packages, which allow legislation to pass the Senate with a simple majority.
The first package may address energy, border security, and military readiness, while the second will focus on tax policy, including extending critical business tax benefits introduced in the Tax Cuts and Jobs Act (TCJA). Priorities include:
• Restoring full expensing tax benefits: Phased out in recent years, the goal is to reinstate 100% bonus depreciation retroactively.
• Extending the R&D tax credit: Expired in 2022, this credit’s restoration would reduce costs for businesses investing in innovation.
• Preserving the 20% pass-through deduction: A crucial provision for small businesses, this deduction is set to expire at the end of 2025.
The Hardwood Federation will advocate for these measures, ensuring the industry’s voice is heard as tax policy evolves.
THE FARM BILL: PROGRESS AND PRIORITIES
While 2024 did not see the enactment of a new Farm Bill, meaningful groundwork was laid. Proposals in both the House and Senate included increased funding for programs like Market Access and Foreign Market Development, support for innovative wood product manufacturing, and workforce development initiatives.
New leadership on the Agriculture Committees brings optimism for 2025. The Federation will continue to push for provisions that benefit the hardwood sector, aiming for a new Farm Bill to be signed into law this year.
TRADE: PREPARING FOR UNCERTAINTY
Trade policy remains a critical concern for the hardwood industry. President-elect Trump’s statements suggest a focus on renegotiating trade deals, with tariffs as a potential tool. The hardwood sector, which experienced significant challenges during previous tariff disputes, is bracing for potential impacts.
The Hardwood Federation is actively engaging with transition teams and Members of Congress to emphasize the consequences of tariffs on the industry. Advocacy efforts will ramp up if tariffs become a reality, and we will keep you updated on developments.
LOOKING AHEAD
As the 119th Congress convenes in January, the hardwood industry faces a year of opportunities and challenges. The Hardwood Federation team is closely monitoring developments and will keep you informed as the year progresses. Your continued engagement will be crucial in ensuring the industry’s priorities are addressed.
STRENGTHENING THE HARDWOOD INDUSTRY:
Log Exports and Product
Misinformation
The U.S. hardwood industry is at a pivotal crossroads, grappling with two critical issues: shifting log and lumber export trends and misinformation impacting market perception.
lumber. Its goal is not to stop log exports but to understand why logs are exported instead of being processed domestically and to provide actionable insights that improve the competitiveness of U.S. mills. The task force’s methodology focuses on three core areas:
1. Log Processing and Grade Models
2. Start-up and Operating Costs
3. Government Policy, Including Subsidies, Taxation, and Regulation
PROGRESS ON LOG PROCESSING AND GRADE MODELS
To address these interconnected challenges, the NHLA has established two essential task forces: the Log and Lumber Export Task Force and the Wood Truth Task Force. Together, these groups are working to analyze economic disparities, address false marketing claims, and develop actionable strategies to support the industry’s sustainability and growth. Their findings complement one another, providing a unified approach to strengthening domestic competitiveness and restoring consumer trust in hardwood products.
THE LOG AND LUMBER EXPORT TASK FORCE
The Log and Lumber Export Task Force was formed to analyze the factors driving the growing preference for log exports over processed
The task force is conducting a Log Yield Study to compare output market values under the traditional NHLA grading system versus Chinese grading standards. As part of this effort, multiple loads of logs that would have been destined for China are being processed domestically to assess differences in yield and value. Supported by grant funding from the U.S. Forest Service, the task force has already sawn two loads of logs at one facility and plans to replicate the study at additional sawmills to confirm the results.
“The topic of log exports arose at the 2024 NHLA Spring Board Meeting, and I volunteered to lead a task force to better understand the drivers behind these trends,” explains Tom Coble, Task Force Chair. “Our goal is to analyze the competitive balance between log and lumber exports, provide actionable data, and explore ways the industry can strengthen its position. Importantly, this isn’t about stopping log exports but equipping the hardwood sector with insights to navigate this shift effectively.”
UNDERSTANDING THE EXPORT SHIFT
The preference for logs, particularly for species like Walnut, Ash, and Oak, underscores the need for U.S. producers to adapt to offshore buyers’ preferences. Chinese mills, for example, prioritize flexible cutting practices to improve customer-specific yield outcomes. They accommodate specialty thicknesses and grade variations, which some domestic mills struggle to match due to NHLA’s standardized rules for millwork, cabinetry, and flooring segments.
While U.S. producers often question the profitability of the Chinese sawmill model, the Log and Lumber Export Task Force aims to answer fundamental questions: How does the Chinese sawmill model work, and are there learnings to make U.S. producers more competitive?
START-UP AND OPERATING COSTS
Chinese mills prioritize customer-specific yields by operating under a flexible, cost-efficient model. In contrast, U.S. mills face significant financial challenges:
• Equipment Costs: U.S. mills require high-quality, optimized equipment costing 2-20x more than low-cost, manual systems in China.
• Labor Costs: U.S. wages, ranging from $12-$24/hour, are 4-8x higher than China’s labor costs.
• Compliance: Strict U.S. regulations add 2-3x higher compliance costs, impacting operations further.
GOVERNMENT POLICY AND REGULATION
The task force is actively exploring how policies such as subsidies, tariffs, and taxation impact export dynamics. For example, foreign subsidies and Value Added Tax (VAT) advantages give Chinese mills a pricing edge, while U.S. mills struggle with limited government support and higher regulatory burdens.
THE WOOD TRUTH TASK FORCE
The Wood Truth Task Force was formed to address misinformation and marketing challenges that have eroded the hardwood industry’s market share. Its mission is to identify the root causes of these issues, combat competing narratives, and highlight hardwood’s superior sustainability, durability, and value. The task force’s methodology focuses on three core areas:
1. Countering Competing Narratives
2. Start-up and Legal Advocacy Costs
3. Industry Collaboration and Promotion
PROGRESS ON COUNTERING COMPETING NARRATIVES
The Wood Truth Task Force has prioritized combating misleading claims promoted by competing materials like vinyl flooring, Thermally Fused Laminate (TFL), and Luxury Vinyl Tile (LVT). These products have gained significant market share by emphasizing durability, cost savings, and low maintenance—claims often backed by well-funded marketing campaigns.
“Our industry has been facing significant challenges unlike anything we have seen in our time. We are witnessing unprecedented market erosion, and it has become clear that substitute products are the primary culprit,” explains Chris Rider, Chair of the Wood Truth Task Force. “We need to work together to collectively market hardwood’s sustainability and authenticity to prevent further erosion of our industry.”
The task force is committed to correcting these misconceptions by educating consumers on hardwood’s true environmental and economic benefits.
START-UP AND LEGAL ADVOCACY COSTS
Legal advocacy has played a critical role in holding competitors accountable for false advertising. For example:
• Mohawk Industries: The Decorative Hardwood Association successfully challenged Mohawk’s misleading claims in their “Wood Without Compromise” campaign.
• Wilsonart’s “Wood Grains” Claims: The WTTF is evaluating legal action to address similar concerns, though costs for such lawsuits often exceed $75,000.
These legal efforts are costly but essential for setting precedents that protect the integrity of hardwood products.
COMPARING CHINA AND U.S. SAWMILLS
Category China
Sawmill Equipment
U.S.
$5K–$50K, low quality, manual $100K+, high quality, optimized
Steel Low cost, low quality High cost, high quality
Concrete
Maintenance
Safety
Labor
Regulations
Subsidies & Taxes
Logs
Low cost, basic recycled concrete High cost, premium concrete
Minimal, simple mills High, for complex machinery
2–20x higher costs in the U.S.
2–3x higher in the U.S.
2–3x higher in the U.S.
Higher costs for U.S. mills
Minimal standards, high risk Strict regulations, high standards U.S. prioritizes safety
$700–$770/month $12–$24/hour + benefits
Minimal pollution controls
Some re-export subsidies
High-cost, demand for key species
Strict environmental/safety regulations
Limited subsidies, potential VAT issues
4–8x higher labor costs in the U.S.
2–3x higher compliance costs
Likely cost advantage in China
Variable, high-end logs sold to China U.S. handles diverse grades
Graph 1: This graph provides an in-depth look at key differences in equipment investment, labor costs, safety standards, and more, offering valuable insights into the factors that shape competitiveness in each region.
INDUSTRY COLLABORATION AND PROMOTION
The WTTF recognizes the importance of unifying the industry to promote hardwood’s competitive advantages and sustainability:
• National Advertising Division (NAD): Developing a centralized effort to detect false ads, enforce policy standards, and amplify truthful messaging through AI monitoring and outreach campaigns.
• Collaborative Marketing: Building on the success of initiatives like the Real American Hardwood® Coalition (RAHC) to foster cohesive messaging and strategic campaigns.
GOVERNMENT POLICY AND TAX INCENTIVES
The task force is advocating for federal incentives to promote hardwood products, inspired by the 30% federal tax credit for geothermal HVAC systems under the Inflation Reduction Act. Applying similar incentives to hardwood products could:
• Encourage adoption by showcasing hardwood’s carbon-negative properties.
• Promote strategic partnerships with architects and builders for sustainable construction projects.
• Drive consumer education campaigns that highlight hardwood’s environmental and long-term value.
Graph 2: Data sources: Hardwood Floors Magazine 2024 Industry Outlook Hardwood Floors Magazine and Vinyl Flooring Market Size Report Expert Market Research.
“Our industry has been facing significant challenges unlike anything we have seen in our time. We are witnessing unprecedented market erosion, and it has become clear that substitute products are the primary culprit.”
WHY THESE TASK FORCES COMPLEMENT
ONE ANOTHER
The Log and Lumber Export Task Force and the Wood Truth Task Force address two sides of the same challenge:
1 Economic Factors: The export task force identifies systemic disparities driving log exports and opportunities for improving domestic competitiveness.
2. Market Perception: The WTTF counters misinformation and positions hardwood as a superior material in terms of sustainability, durability, and value.
The hardwood industry thrives on data-driven solutions aimed at improving competitiveness and optimizing yield outcomes. Through focused advocacy and education efforts, we work to restore trust, counter false claims, and highlight the numerous benefits of
hardwood. By fostering unified action, we aim to align economic and marketing strategies, ultimately strengthening the industry's overall position.
CONCLUSION
The U.S. hardwood industry stands at a decisive moment. The Log and Lumber Export Task Force and the Wood Truth Task Force play complementary roles in tackling economic challenges and combating misinformation. Their data-driven insights and collaborative strategies are laying the foundation for a stronger, more competitive hardwood industry. By addressing export trends, promoting sustainability, and restoring market confidence, these task forces are helping secure hardwood’s position as the material of choice for generations to come.
YOUR VOICE MATTERS: NHLA Hardwood & Cypress Rules Change
By DANA SPESSERT, Chief Inspector
The National Hardwood Lumber Association is currently accepting rules change proposals for the 2027 Hardwood & Cypress Lumber Grading Rules. This is your opportunity to shape the future of the hardwood industry and ensure the rules reflect the evolving needs of the market.
WHY SUBMIT A RULES CHANGE PROPOSAL?
• Adapt to Market Changes: As the hardwood industry evolves, the grading rules must keep pace. Submitting a proposal can help ensure the rules remain relevant and practical.
• Improve Consistency: Clear and consistent grading rules are vital for fair and efficient transactions. Your input can help refine the rules to minimize confusion and disputes.
• Enhance Quality Standards: By proposing changes that promote higher quality standards, you can contribute to hardwood products’ overall reputation and value.
HOW TO SUBMIT A PROPOSAL
1. Identify the Need: Consider areas where the current rules may need to be clarified, updated, or adequately address specific industry challenges.
2. Develop a Clear Proposal: Clearly articulate the proposed change, including the specific rule section and the desired modification.
3. Provide Supporting Documentation: Offer any relevant data, research, or industry examples to strengthen your proposal.
4. Submit Your Proposal: Send your proposal to the NHLA by March 31st, 2025, @ d.spessert@nhla.com or by mail to Dana Spessert, P.O. Box 34518 Memphis, TN 38184.
RULES COMMITTEE MEETING
The Rules Committee comprises NHLA members from various regions and backgrounds within the hardwood industry. All Rule change proposals will be discussed and voted on by the Committee
to be included or excluded from the ballot. The Rules Committee will be held at the Inspector Training School in Memphis, TN, on June 4th, 2025. Anyone submitting a Rules change may speak to the Rules Committee the morning of the meeting with 1-week prior notification to NHLA that they shall attend.
THE IMPORTANCE OF VOTING
Once the Rules Committee has reviewed and selected the proposed changes, they will be presented to the NHLA membership through publications and at the Annual Convention for discussion. A ballot will be mailed to our Active members in November or December for a vote. Your vote is crucial in determining which changes will be implemented.
WHY YOUR VOTE MATTERS
• Shape the Future: Your vote directly influences the future of the hardwood industry by determining which rules will govern transactions.
• Protect Your Interests: By voting, you ensure that the rules align with your business needs and protect your interests.
• Support the Industry: Active participation in the rules change process demonstrates your commitment to the hardwood industry and its continued success.
TAKE ACTION
Take advantage of this opportunity to have a voice in shaping the future of the hardwood industry. Submit your Rules change proposals and cast your vote. Together, we can ensure that the NHLA Hardwood & Cypress Lumber Grading Rules remain a valuable tool for the entire industry.
For more information and to submit your proposal, please email the NHLA Chief Inspector, Dana Spessert, @ d.spessert@nhla.com or mail to P.O. Box 34518 Memphis, TN 38184.
EDUCATIONAL OPPORTUNITIES
MAR
March 5-7
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
March 20-21
$PC: Control the Process to Improve Lumber Value
A 2-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
MAR
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
March 31-April 11
Inspector Training School Online 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
JUNE
June 18-20
Kiln Drying
A 3-day course focused on Kiln Drying. You will develop an understanding of drying wood for value and defect reduction. Speakers include Dr. Adam Taylor, University of Tennessee Extension, Mr. Dana Spessert, NHLA Chief Inspector; as well as kiln drying expert Bob Pope from SII Dry Kilns. Yard personnel, kiln operators and supervisors should attend.
Venue: NHLA Headquarters Location: Memphis, TN
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
NEOSHO, MO
Missouri Walnut Group is looking for a skilled Lumber Inspector with a high attention to detail, safety standards, who will help ensure lumber is examined properly to determine quality and assign grades. On-the-job training is a good way to discover how to do the job better, so you should have a willingness to learn and improve. Being a team player is essential, the goal is to ensure that production procedures are carried out smoothly in order to maximize efficiency and profits. This position participates in our monthly profit-sharing bonus which is based on profitability of the company.
HOW TO APPLY
Please send all questions, applications & resumes to awilkie@missouriwalnutgroup.com.
HARDWOOD LUMBER INSPECTOR
RICHFIELD, PA
Full-time lumber inspector. Inspectors will be expected to grade green lumber. Primary species graded are White Oak, Red Oak and Poplar.
SKILLS & EXPERIENCE REQUIRED
NHLA inspection education is mandatory. Condensed program (short courses) or 8-week education is acceptable.
HOW TO APPLY
Please send all questions, resumes & applications to cherryhilljobs87@gmail.com.
DOMESTIC WOOD PRODUCTS PURCHASING MANAGER (REMOTE)
NORTHEAST/MIDWEST
This position’s primary role is taking over existing areas of our domestic wood purchasing program, responsible for purchasing assigned inventory items, maintaining appropriate levels of inventory, and collaborating with internal customers to keep everyone informed of pricing and market trends. The Domestic Wood Products Purchasing Manager drives business value by maintaining, analyzing, and reporting consumption and price information to identify and deliver improvement. The individual in this position must competitively bid on wood product purchases, to identify and deliver cost reduction as well as contribute to process efficiency. Also, must establish and maintain purchase information in LumberTrack and on Excel Spreadsheets for Accounts Payable and Purchasing, consistent with company goals and specifications for quality and timeliness. The Domestic Wood Purchasing Manager is a key team member to ensure supply continuity and drive total value.
**This position can be worked remotely but will require some travel. The ideal candidate should reside in the Northeast/ Midwest.
HOW TO APPLY
Please send all applications, resumes and questions to bsmc1975@yahoo.com.
HEAD SAWYER
HARRISON, MI
POSITION DESCRIPTION
Head Sawyer 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
• Drivers license, and pass all drug screening tests
SALARY & BENEFITS
Benefits and pay are based on individual candidates experience but does include: Competitive pay, paid training, BCBS Health insurance w/vision and dental coverage, life insurance, Individual retirement accounts, paid vacations, paid holidays, and a safety protection wear allowance. Benefits and Rate of pay discussed at interview.
HOW TO APPLY
Please send all questions, resumes and applications to Jessica Bucher at info@billsbylumber.com.
HARDWOOD LUMBER INSPECTOR
CHAIRMAN’S MESSAGE
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.
SALES PERSON MEMPHIS, TN
The National Hardwood Lumber Association (NHLA) is seeking a motivated sales professional to promote advertising opportunities, exhibit booths for our annual convention, NHLA services, and membership benefits. This dynamic role offers the chance to build relationships, drive growth, and make an impact in the hardwood industry.
HOW TO APPLY
Please send your resume to: dallin@nhla.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
Prevailing prices have risen in 2024 for many species, and, on a percentage basis, average KD prices have risen twice as quickly as green prices. Yet, very few hardwood producers or yards would say business has improved during the course of the year. There are several explanations for the disconnect.
First, the margin between KD and green prices is just one component of the overall margin for hardwood producers. Price spreads may be improving, and lumber prices may be up, but they have not gone up enough to offset the rising costs of all other manufacturing inputs. And, even though KD price growth has outpaced the rate of inflation growth this year, that has not been the case long-term. Based on our pricing index, after adjusting for inflation, average KD hardwood lumber prices are 40% lower today than 20 years ago, even though they are almost identical nominally. A year of modest price growth has done little to rectify that, especially coming off very weak 2023 pricing levels.
A second, and perhaps bigger, disconnect between rising prices and poor industry sentiments is that—with the possible exception of White Oak—price increases this year have been driven
by very low lumber production, not improved demand. Yes, both export and domestic demand are up a bit in 2024, but only incrementally from 2023’s disastrous lows. Production and inventories have been winding down since the summer of 2022, and have likely been below demand since this spring. Accordingly, few sellers have been carrying enough inventory to warrant deep discounting for cash flow purposes. They are not selling much lumber, but neither are they giving it away. The net effect has been steady to rising lumber prices in a very sluggish market.
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 December, which is published the first week of January.
HMR Demand Index (HDI)
Upholst.
Wood
Wood
Board Road
Pallets
Railroad Ties
www.rta.org
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: Logs are expensive and lumber is cheap - nowhere to go with low grade. Mills are worried about getting enough logs at the right price to make it through the winter - not too many are optimistic. Weather has been warmer so no frost left in the ground.
ATLANTIC
West Virginia: A lot of mills are running low on logs. Mills can move Fas and better grades fairly easy but the low grade is a challenge for some species.
Virginia: Flooring, Pallet, and Ties are slow to move. Crane Mats seem to be picking up momentum over the last month. Weather has been too wet to log.
NEW ENGLAND
New England 1: Log inventories are low due to poor market conditions. Most mills carrying roughly 60% of their average log inventories. Overall market conditions are still stagnant. Mills are starting to struggle to make ends meet.
Pennsylvania: Log inventories are low. Wet weather is prohibiting logging crews from working. Upper grade lumber is moving better than the low grade. Some uptick in exports, but most believe this may be largely driven by the threat of tariffs. Holidays have also slowed production down.
MIDSOUTH
E Texas, NW Louisiana: Board road and crane mats have picked up in my area , and its getting wet so hopefully with production going down the pallet market will improve as well.
SOUTHEAST
Kentucky, Tennessee: Winter weather and decreasing log supply is helping the price of lumber. We need millions of ties but the depressed lumber markets make them almost too available in my area for now. This may soon change with log supplies diminishing.
Mississippi: Unseasonably dry until recently. logging is only now beginning to be hindered. Markets for lumber & pallet are stagnant. Mat markets have improved and are somewhat steady. Tie demand remains steady.
www.ahec.org
Gains in 2024 Outweigh Losses in International Markets
By Tripp Pryor, International Program Manager, AHEC
Through October 2024, the latest available export statistics, US hardwood lumber exports to all markets have increased by nearly 44 million board feet from the same period last year. This graph shows the 10 markets that have shown the largest growth by volume, and the 10 markets that have shown the largest decline. The biggest winner, with an increase of nearly 18 million board feet, is exports of white oak lumber to Canada. This represents a 60% increase in volume, but only a 37% increase in value (from $46 million to $63 million Jan-Oct). This means that the per unit value declined by 14%, so a lot of this new growth is coming in the lower grade white oak products.
The second-place growth market is an encouraging one: red oak to China! A 16 million board foot (13%) increase is always welcome in a market that has certainly struggled over the last few years. Even with the Chinese market still trading at roughly half of 2017 levels, more red oak lumber is exported to China than all species of lumber combined go to Mexico. Unfortunately, you’ll notice several of the “Not Top 10” worst performing markets are also in China, including cherry (down 10.7 million bf, -20%), white oak (-7.6 million bf, -20%), maple (-4.6 million bf, -30%), alder (-4.4 million bf, -25%), and yellow poplar (-2 million bf, -9%). However, red oak growth, along with growth in walnut lumber, offset a good portion of the losses and the China export market is fairly stable with last year.
The drop in white oak lumber to China is more than offset by gains of white oak exports to UK and Vietnam, and in fact global white oak exports have increased 14% by volume compared to
2023 - showing that the product is finding other markets. The big question with China’s continued slump is what will happen with species like red oak and cherry that were heavily dependent on the market before the trade war? Fortunately, we’ve seen some global success with red oak, and in fact red oak to Australia makes the top 10 best performing markets (+3.3 million bf, +132%). Other markets like the UAE and Europe have increased their consumption of red oak, and in 2024 red oak exports increased by 21% by value and 13% by volume globally from 2023. We’re still a ways off from absorbing all of the lost demand from China, but we’re moving in the right direction.
Cherry is unfortunately a different story and has had trouble finding other international markets. In 2024, the Chinese market accounts for over 90% of all cherry lumber exports. Declines in Vietnam and Mexico have made China even more dominant, so economic issues or changes in fashion in China can have a major effect on the product. In the last year, AHEC has focused on promoting the key underutilized species of red oak, cherry, and maple throughout global design projects including Future Heirlooms at Milan Design Week, “Echoes of the Woods” in China, and our latest project with the students of Kingston University in the UK that challenged them to create furniture exclusively using lower grades of cherry for display at Clerkenwell Design Week. Where we have seen success with red oak in creating new markets and connecting designers with new materials, we see a road map for promoting wider adoption of beautiful, sustainable, American cherry.
Source: U.S. Census Bureau Trade Data, Jan-Oct data in Board Feet
Canada White Oak China Red Oak
White Oak
Vietnam Red Oak Vietnam White Oak
Other Vietnam Alder Canada Walnut Australia Red Oak
Vietnam Poplar
China Cherry China White Oak
Mexico Hickory
China Maple
China Alder Canada Other China Ash Mexico Ash
China Poplar Japan Tropical
Markets with Largest Volume Changes Jan-Oct 2023 vs Jan-Oct 2024
www.nwfa.org
COMPETITION FROM WOOD-LOOK PRODUCTS
Competition from wood-look products (such as LVT, WPC, laminate) continues to have a negative effect on real-wood sales, according to 69 percent of respondents to Hardwood Floors magazine’s 2025 NWFA Industry Outlook survey. Some say it is because wood-look products are advertised heavily and often cheaper than real wood flooring, while lack of consumer knowledge is another factor.
