2017 June Hardwood Matters by National Hardwood Lumber Association

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

70 Years of Education pl us

PREPARATION FOR SUCCESSION 10 WAYS TO ENCOURAGE EMPLOYEES TO TAKE OWNERSHIP IN THEIR WORK T H E O F F I C I A L P U B L I C AT I O N O F T H E N AT I O N A L H A R D W O O D L U M B E R A S S O C I AT I O N S T R O N G R O O T S . G L O B A L R E A C H . | W W W. N H L A . C O M

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WHAT'S INSIDE feature 22 Education, Training and Development and the role of NHLA READER SERVICES 6 8 26

Presidentâ&#x20AC;&#x2122;s Message Executive Director's Message Educational Calendar

Instant TOP POST OF THE MONTH at facebook.com/NHLAOfficial National Hardwood Lumber Association NHLA got a digital facelift! Check out our new website at www.nhla.com.

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24 Rules Corner

june 2017

Where in the World

CONTENTS

Labor

12 Advocacy

10 DEPARTMENTS

Family Business

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

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

June 2017 ▪ Issue 179 National Hardwood Lumber Association PO Box 34518 ▪ Memphis, TN 38184-0518 901-377-1818 ▪ 901-382-6419 (fax) info@nhla.com ▪ www.nhla.com

EXECUTIVE COMMITTEE

MISSION LEADERS

Brent Stief Huron Forest Products President

Jack Shannon J.T. Shannon Lumber Co. Unique Services

Darwin Murray McClain Forest Products Vice President Pem Jenkins Turn Bull Lumber Co. Past President 2014-2016 NHLA STAFF Lorna D. Christie Executive Director l.christie@nhla.com Renee Hornsby Director of Communications/Editor r.hornsby@nhla.com

ADVERTISER INDEX 21

Brewco, Inc.

TJT Consulting

13 DMSi

5, 14

Thompson Appalachian Hardwoods

King City/Northway Forwarding

U•C Coatings

IFC

Pike Lumber Company, Inc.

9 VisionTally

Rossi Group

Orn Gudmundsson, Jr. Northland Corporation Structure Mike Powers Maley & Wertz Industry Advocacy & Promotion Kevin Gillette Tioga Hardwoods Membership & Networking COMMITTEE CHAIRS

Melissa Ellis Smith Graphic Designer m.ellis@nhla.com

Dave Mayfield Mayfield Lumber Co. Membership

Kristina Thomas Community Manager k.thomas@nhla.com

Dave Bramlage Cole Hardwood, Inc. Promotion & Advocacy

Jennifer VanDyke Marketing Manager j.vandyke@nhla.com

Jon Syre Cascade Hardwood LLC Convention

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

Nordeck Thompson Thompson Appalachian Hardwoods Rules

Desirée Freeman Controller Rich Hascher Inspector Training School Instructor John Hester Director of Membership and Business Development Becky Miller Inspector Training School Administrator Dana Spessert Chief Inspector

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 Jeff Wirkkala Hardwood Industries, Inc. Member Value Joe Snyder Fitzpatrick & Weller, Inc. Rules Darwin Murray McClain Forest Products Strategic Planning

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PRESIDENT’S MESSAGE

THE RESULTS ARE IN - PART II As I sat down to write this article I was reminded that a trade association is a reflection of the industry and the membership it serves. And like our industry, NHLA is looking up. Both the NHLA staff and your Board of Managers are feeling a renewed sense of purpose. Thanks to enhanced marketing communications and new educational programs, registration numbers at the Inspector Training School are increasing, as are the number and registrants for our short courses. And leading companies are embracing KD Certification and NHLA Inspections as a cost saving opportunity. All signs point to a strong conference in Nashville, featuring the largest exhibit hall in our history. Member response to our new sponsorship opportunities has been positive, lapsed members are rejoining thanks to new communications strategies, and new member numbers are headed in a positive direction. Not a bad start for 2017. In last month’s issue of Hardwood Matters I spoke about the Board of Manager’s commitment to using the results of our recent member survey to take a new look at the value we offer our members. I am pleased to report that at the recent meeting in April, we did just that. I can tell you that every agenda item, every committee meeting, was focused on how we can use the results of the survey to offer our members more value today, and in the future. Let me be clear, the Inspection Services, the NHLA Rules, and our educational offerings will always be an important part of the NHLA brand, and the value we offer members. They are an important part of our past, and will play a critical role in ensuring our future as an industry. Survey respondents sent a clear message of their desire to be more involved in the rules making process. The Board tasked staff with the challenge of enhancing communications to ensure our members understand how to become more active in NHLA. The survey results also helped the Board recognize the need for NHLA to adopt a pro-active, versus reactive, value development strategy. Our industry is evolving toward a “new normal.” We must maintain our relevancy by anticipating, and pro-actively responding to, members’ needs along their journey. Leading examples of how members define such value include the need for more market driven information and improving the image of our industry. Now we all know there have been repeated attempts at providing a clear solution to the audacious goal of promotion. And while we know we have a compelling story to tell, despite our best efforts, we have never been able to get this important issue off the ground. There are a number of other industry associations with similar objectives. We must move this issue to the top of our list, forget about past animosities, and define strategies together that can accomplish a common goal. AHEC’s success in Europe provides us with lessons learned on what works. Their success also clearly

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demonstrates that there is no “magic bullet” when it comes to defining and defending the industry’s image. I am absolutely convinced that a failure to find the answers will impact our future success. The new Board meeting format implemented last year allowed for expanded engagement on the first day of the meeting. That change, along with an in-depth review of the member survey results, formed the basis for an incredibly productive spring Board meeting. But that was just the first step. We are also in the process of forming a Strategic Planning Committee to help us define the next generation of member value. Stay tuned for more about how NHLA’s commitment to our members is evolving!

Brent Stief, NHLA President Huron Forest Products

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Business Succession Planning Itâ&#x20AC;&#x2122;s what we do.

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Confidence, Commitment, Results

EXECUTIVE DIRECTOR'S MESSAGE

HOW TO TELL A GOOD STORY I was on the road many times during the first quarter, visiting members and attending industry functions. It seemed that no matter where I traveled, the conversation turned to the need to tell our story more effectively. It was certainly one of the top three issues in our recent member survey and was a major focus of conversation at the NHLA Board of Managers meeting in April. NHLA’s Promotion Committee, chaired by Dave Bramlage of Cole Hardwood, is charged with the responsibility of identifying short and long term strategies to promote effective story telling. As I have said before, there is no one solution to promoting our industry. But as we create our new approach, we are fortunate to be able to study the success of organizations like the American Hardwood Export Council (AHEC) who have been successfully promoting American hardwoods in Europe for over 25 years. No doubt about it, the American Hardwood Export Council (AHEC) knows how to tell a good story. One look at their new European website www.americanhardwood.org makes that statement an indisputable fact. If you are not familiar with AHEC, you should be. Headquartered in Washington, D.C. AHEC’s six overseas offices support marketing programs made possible by the joint efforts of the U.S. hardwood industry, including NHLA, and the Foreign Agriculture Service. Currently, AHEC is actively promoting our story in over 50 export markets worldwide. NHLA has been a proud AHEC member since its beginning. Every good story has a solid foundation, a theme that is carried to the end. In AHEC’s case, the foundation seems to be about creating successful, long term partnerships with designers and architects. This influential audience has been instrumental in spreading our message of the beauty, diversity, quality and sustainability of American hardwoods to their own unique audiences. Once exposed to American hardwoods, these influencers are also more likely to join AHEC in telling our story through design exhibitions and other public events. The “free press” generated by such events helps build new networks within new audiences, including the increasingly important consumer market. A good story also inspires emotions, connections to an audiences’ personal values. And, because of new communication technologies, today’s consumers connect to visual storytelling. They also want to buy products from companies they can relate to, one that can prove they share their own personal values. Once again, AHEC’s promotional strategies “hit the mark” by focusing on both the diversity, beauty and strength of American hardwoods in their design installations. And while the designs featured on www.americanhardwood.org are certainly visually inspiring, it is AHEC’s consistent promotion of our family run industry’s commitment to sustainability that resonates with today’s consumers’ personal values. 8

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Despite the values-based purchasing that today’s consumers are known for, they are also quite cynical. No wonder, as they are literally immersed in marketing messages 24 X 7! In this new, constantly changing environment an advocate can become an angry activist in just a few key strokes if a company cannot prove their messaging. Once again, a win for AHEC as its new site contains a wealth of science based information that supports the industry’s commitment to sustainability. If you are interested in looking for new opportunities to promote our industry, I hope you will take the time to visit www.americanhardwood.org. There are some great lessons to be learned as NHLA moves forward in developing effective and sustainable promotional strategies. Finally, if you are exporting American hardwoods and are not an AHEC member, I suggest you visit their American website www.ahec.org to learn more about the member benefits AHEC offers.

Lorna D. Christie, Executive Director 901-377-1082 direct | l.christie@nhla.com W W W. N H L A .CO M

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FAMILY BUSINESS

Preparation for Succession By Deb Houden, The Family Business Consulting Group

There are estimates that over the next 5 years nearly half of family businesses will be in a state of transition from one generation to the next, but only 37% have written a strategic plan for succession. So how do you have a successful succession? The first is to get rid of the notion that a successful transition has only one definition. Success can be defined in a myriad of ways if the family stays open, flexible and honest about their goals and desires. Here are some successful transitions: • Leadership from father to son, father to daughter, uncle to niece, etc. • Non-family managers take over until the next generation acquires enough skills • Operations are handed over to competent non-family leaders but family retains ownership • Offspring begin satellite companies that are complimentary to the mother company

TWO SCENARIOS: Leo is in his 80s. His daughter and son, both in their 60s, work in the business running critical parts of the day to day operations, but Leo comes to work every day, still owns all of the stock and makes all of the crucial financial decisions. Last fall, Leo suffered a health incident that left him mentally incapacitated for six months. The family could not legally make business decisions; if Leo died, all of the stock would transfer to his wife, who had never worked in the business. The wife and children are worried but even though Leo is now healthy, he still will not discuss the future. Across the country in another family business, Robert is in his early 60’s and healthy. His two sons work in the business and are assuming more and more of the day to day responsibilities. Robert has thought often about succession, but doesn’t know what to do. His boys are starting to get a little frustrated because they’ve been talking about it for three years yet nothing has happened. One of the most daunting obstacles the family business faces is the passing of the torch, for both the family and the business. The statistics on successful transition are startling: 33% survive into the second generation, 12 percent into the third, and 4% into the fourth. 10

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Why is succession so difficult? There are so many complex reasons, but without interested and able next generation family members, the business will not stay family controlled for long. Determining the interest and ability of next generation family members is not as easy as it sounds, and the decision does not rest on the senior generation alone. Even if you have capable and willing offspring, senior still needs to let go! So how do you have a successful succession? Over the next four months, leading up to the convention in October, I will be writing to you about components of succession and some ideas that may help you along the way. Here are areas that I will be focusing on: • Planning early • Communication • Next generation preparation • Letting go

PLAN EARLY: Start with the end in mind. Succession is a process, not an event. What does your life look like in 10 years? In five years? In the next year? Write it down on a piece of paper as best you can—bullet points are okay! Succession is transition; transition, by definition, is “Passage from one form, state, style, or place to another.” The operative word there is passage: a journey. A journey takes time and may fail by getting lost, running out of gas, not having W W W. N H L A .CO M

You Bring THE WOOD...

Come hear Deb Houden speak at the 2017 NHLA Annual Convention and Exhibit Showcase in Nashville. This educational seminar will focus on: • Conflict & Communication Management • Leadership & Next Generation Development

adequate lodging, whatever. If the interested parties in a succession all understand that it takes time, one hurdle is out of the way. All family members, even spouses, need to think honestly and realistically about what their hopes and dreams are for the next year, the next five years, and the next ten. Reflect about your lifestyle, your income needs, the business needs and your industry outlook. What are your options? Just start by making a list of your wants, needs and potential challenges for the company. And then put it aside. After a little (not a lot) of time has passed (a week or month, but no more) take the list out and adjust as needed. Once you have your thoughts on paper, it’s time to start the communication process.

NEXT MONTH: How to start communicating your hopes, dreams and ideas about the future.

Deb Houden is a senior consultant with The Family Business Consulting Group, she specializes in helping family-owned businesses with family communication, transition and next generation development by providing resources, tools and knowledge that are needed to navigate their specific issues.

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Deb has worked with numerous families on developing effective communication and conflict resolution skills, developing family meetings, beginning stages of board development, and working with next generational members of family firms (including adolescents). She is adept at developing processes that help families go through changes within the business and family systems.

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She is a regular presenter to industry groups, family business centers, and individual company retreats on topics including the next generation and succession, communication and conflict resolution, and perceptions of fairness.

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ADVOCACY

STORM THE HALLS OF CAPITOL HILL Join NHLA at the Hardwood Federation Fly-In By Dana Cole, Executive Director Hardwood Federation

new President with big plans and an ambitious agenda has taken up residence in the White House. New Cabinet and department officials are in place. Political debates are heating up and Congress is tackling tough issues. It is a critical time in Washington and vital that our voices are heard. Regulatory reform, tax reform, international trade; all are on the table this year and everyone wants their opinion heard. The annual Fall Fly-In is the Hardwood Federation’s biggest, most anticipated and most important event of the year. Each fall members of the hardwood industry gather in Washington D.C. to walk . . . and sometimes run . . . the halls and tunnels of Congressional office buildings to meet with Representatives, Senators and staffs from their - and other important - states to tell their stories. Our goal is clear and consistent: To have industry leaders provide their personal and professional perspectives about what the most important issues affecting the industry are and how our businesses are being impacted . . . and what Congress can do about it. The 2017 Fly-In will be held September 12-14. The Hardwood Federation Fly-In is a busy few days, but we make every effort to prepare and brief attendees. This year’s agenda includes the following: Welcome Reception (September 12): Participants gather the night before to meet and network with colleagues old and new. Breakfast Briefing (September 13): The Hardwood Federation provides a detailed briefing on issues to be covered during meetings on the Hill, navigating the Congressional office buildings, and what to expect during your meetings. Capitol Hill Visits (September 13): Prior to the Fly-In, Federation staff will schedule meetings with your elected representatives or those you are interested in meeting. Participants attend meetings in small groups to demonstrate the depth and variety of the industry. HFPAC Events (September 13 & 14): Participants will gather for an evening reception with Republican members of Congress on 12

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John Crites, John Crites II, Roger Sherman, Rep. McKinley, Mrs. McKinley, and Rep. Jenkins.

the 13th followed by a dinner on Capitol Hill. The next morning, we wind up the Fly-In with a morning breakfast reception with Democrats. These are additional opportunities to speak directly with members and acknowledge their support with a donation from the Hardwood Federation Political Action Committee. We hope you will take the time to join us in Washington. NHLA members are spread throughout the country and their experience, insight and ideas should be shared directly with those who write the laws and legislation impacting their businesses and employees. While it is a commitment of both resources and time, it is a commitment that can have direct impacts on your bottom line. The Hardwood Federation staff is proud to represent the industry in Washington, D.C. and over the years we have built excellent relationships with key members of Congress who look to us for advice and counsel on issues impacting the Hardwood industry. But when members hear from you, their constituents, employers in their district, and community leaders, the message takes on a special significance and impact. This year’s Fly-In will take place on September 12-14, 2017. Anyone related to the industry is welcome to join us in D.C. Our special rate at the host hotel expires on August 15; be sure to make plans before it is too late!! You may register for the Fly-In at www.hardwoodfederation.com. Please don’t hesitate to contact the Hardwood Federation staff at 202-463-2705 or dana.cole@hardwoodfederation.com if you have any questions or would like more information. W W W. N H L A .CO M

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ADAPTING TO CHANGE: A NEW ERA FOR BY-PRODUCTS

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MY DAD WAS ADAMANT, “IF YOU CAN’T GET RID OF YOUR CHIPS, DUST, AND BARK, THEY WILL BURY YOU.” NOT ONLY CAN THESE PRODUCTS BURY US, THE INABILITY TO SELL THEM CAN SUPPRESS LUMBER PRODUCTION AND LOG AVAILABILITY.

ne constant in life and in business is change. As technology is upgraded and industries adapt, there will always be a time of transition. I grew up in this industry, and for 57, I’ve experienced much change.

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JUST KEEP IN MIND, AS MY DAD ALWAYS SAID, “BE CAREFUL SON, THERE IS A FINE LINE BETWEEN A VISION AND AN ILLUSION.” When I began my career, lumber was traded by mail which took days to weeks, then by fax machine which shortened the time to days, and now by email which is practically instantaneous. Also, markets were predominately domestic and our staff would visit them with a drive to North Carolina. Now, our sales team boards a plane to reach customers all over the world. As our consumer markets have changed, our by-product and pulpwood markets have also evolved in correlation to changes in the pulp and paper industry. Pulp mills are closing, tightening up on specs, and issuing quotas. The consistent market for our by-products and pulpwood is now inconsistent. My dad was adamant, “If you can’t get rid of your chips, dust, and bark, they will bury you.” Not only can these products bury us, the inability to sell them can suppress lumber production and log availability. How do we, as an industry and individual businesses, adapt to these changing byproduct and pulpwood markets without eroding overall profitability? This issue can keep you up at night. In those sleepless, prayerful nights, I have found the need to stay focused on what my management team and I can control: manufacturing methods and keeping an open mind about potential by-products markets. Adapting to changes in the by-product space has meant re-evaluating the milling process. The first step we have taken is W W W. N H L A .CO M

to evaluate our kerf and overall yield. How much sawdust do we make per board foot of lumber produced? We continually evaluate all machinery centers to ensure minimal saw kerf or yield loss without sacrificing quality. We are also talking to equipment dealers to source new breakdown systems to match. We will never get away from making sawdust; we just want to make less of it per thousand. The same is true for chips. We may not fully eliminate our issues, but we are managing them on the front end. There’s also a payback to that — less chips and saw dust means more lumber out of the same logs. In addition to adapting to change with the manufacturing process, we are identifying opportunities to dispose of our by-products regionally and into diverse markets when available. In our area of the country, it is not profitable to convert by-products to wood pellets for biofuel. We do sell part of our chips to a distillery to be burned in their steam plant. However, quotas are being curtailed amid talks of natural gas conversion. Our pulp markets are facing similar challenges with weekly pulpwood, chips, and dust quotas. The questions we ask ourselves daily are: Is there opportunity for on-site consumption? Are there

alternative users for these products? Are we making something that meets the specs of alternative consumers? Where can we move these products to their highest and best value? Finally, we are examining the overall global consumption of North American hardwood fiber and our ability to compete as a low-cost provider. If we are, in fact, moving into an era when getting rid of the residuals becomes the determining factor of success, then whoever can move their chips and sawdust consistently and still make money will come out on top. Again, one constant in life and in business is change. The change has never slowed down. What works today may not work for my team tomorrow. We must constantly

IF WE ARE, IN FACT, MOVING INTO AN ERA WHEN GETTING RID OF THE RESIDUALS BECOMES THE DETERMINING FACTOR OF SUCCESS, THEN WHOEVER CAN MOVE THEIR CHIPS AND SAWDUST CONSISTENTLY AND STILL MAKE MONEY WILL COME OUT ON TOP. strive to adapt to change creatively, knowing that with change comes great opportunity. Just keep in mind, as my dad always said, “Be careful son, there is a fine line between a vision and an illusion.” To continue the dialogue on this subject visit www.nhla.com/blog.

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LABOR

WAYS TO ENCOURAGE EMPLOYEES TO TAKE OWNERSHIP IN THEIR WORK By Eric Chester, Award-Winning Speaker & Best Selling Author

very employee who works for you will eventually arrive at a crucial intersection, if they haven’t already.

At that point, you hope they turn right and buy-in to your leadership and the vision and values of your company. Turning that direction means that they see a future for themselves with your organization so they’ll invest themselves fully and go all-in.

Unfortunately, some will turn left and quit on you without actually quitting. They’ll take on the ‘me against the machine’ mindset and begin looking for shortcuts and ways they can do just the MDR (Minimum Daily Requirement) that it takes to fly below the radar and avoid getting called out or fired. Your leadership determines their direction. Here are 10 ways to encourage your people to turn right, own their job and control their future in your organization: 1. SHARE YOUR VISION. Help employees feel part of something bigger than themselves. Communicate your mission and vision to them early and often, and ask for their continual input so that they see what you see and are committed to working toward that result. 2. INVOLVE EMPLOYEES IN GOAL SETTING AND PLANNING ACTIVITIES. Seek out their ideas, knowledge, and insights, and invite them to help make important decisions. At the very least, let them see your process for making difficult decisions. 16

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3. EXPLAIN THE WHY. Don’t just tell someone what to do without making absolutely certain they also understand why that task needs to be completed and why you’ve selected that individual for the job. Give the job context in the bigger picture of your operation. 4. LET THEM CHOOSE THE HOW. Whenever possible, let your employees decide how to achieve the task you’ve assigned. Agree upon what constitutes a successful outcome, then let them chart their own course. This builds ownership in the process and they might figure out a method for getting the job done that is superior to the one you would have assigned. If that happens, call attention to it. If they choose a poor methodology, don’t jump in and scold them, but rather ask questions that enable them to see better options and give ’em another chance. 5. DELEGATE AUTHORITY, NOT JUST WORK. Give employees a leadership role in some of the meetings they attend. Leadership skills develop over time, and they require practice. 6. TRUST THEM BEFORE YOU HAVE TO. Eventually, you’ll have to trust them, but sometimes it’s worth the risk to trust them before that point to make a decision or step into a role that pushed them to the limit. Your trust in them will give them confidence, and that confidence is crucial to their personal development. 7. ENCOURAGE THEM TO SOLVE THEIR OWN PROBLEMS. Listen to their problems but don’t bark out the answer. Instead, ask probing questions that will lead them to determine the Continued on page 18

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herry • Har

Meet the people who’ll change your business. Your Employees

Continued from page 16

Friday, Oct. 27 at 8:30 am

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Come to the NHLA Town Hall Meeting and hear herry • Har Eric Chester, our Friday Keynote Speaker at the 2017 NHLA Annual Convention and Exhibit Showcase in Nashville.

herry • Har

right answer. When they get it, compliment them and tell them they they don’t need to ask you about similar situations; that you have faith herry • Har in them to figure it out. Don’t abandon them, but prove that you trust their judgment.

8. HOLD THEM ACCOUNTABLE. Remember that employer trust and herry • Har employee autonomy is a two-way street. Holding employees accountable for their work and for meeting established goals and deadlines motivates them to achieve better results. Don’t let ’em off the hook. Demand their best effort. herry • Har 9. PROVIDE CONSTRUCTIVE FEEDBACK. Regardless of the results, let them know how they’re doing, and give them the coaching they need to improve. Although they might not always ask for it, they want and need herry • Har your feedback to further develop their knowledge and skills.

TRAIN YOUR EMPLOYEES. BOOST REVENUE . NHLA can help you meet your business goals.

10. ACKNOWLEDGE THEM ON THE SPOT FOR STEPPING UP. A few seconds of genuine one-on-one acknowledgement and recognition can go a long way toward reinforcing an employee’s willingness to herry • Har step up and stand tall. Show you appreciate their above-and-beyond commitment with a reward that matches the result. Often times, the best reward is additional trust and an added level of responsibility. herry • Har ON POINT – If you want your employees to take ownership in their jobs and work for you the way they’d work for themselves, you must invite them to be more than just an order-taking drone by cultivating a culture of autonomy. herry • Har

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

Registration Now Open Memphis, TN - August 30 Register at NHLA.com or call 901-377-1818

PROVEN PATH TO SUCCESS COMPETITIVE EDGE • SAVES YOU MONEY

Since 1998, Eric Chester has been the leading herry • Har voice in attracting, managing, motivating, and retaining the emerging workforce. As an inthe-trenches workplace researcher and thoughtherry • Har leader, Chester has cracked the code on the tactics and strategies companies that are recognized as “best places to work” in their respective industries are using to win the talent wars.

herry • Har

Eric Chester has delivered more than 2000 paid keynote speeches on three continents and is a 2004 inductee into the National Speakers Association’s acclaimed Hall of Fame.herry • Har Companies that have invited Eric back multiple times to keynote annual conventions, conferences and meetings include Harley Davidson, McDonald’s, Sprint, Great Clips, and ALCOA, to name a few.

herry • Har

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rd Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood • Ash • Cherry • Hard Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood •

HARDWOODS

rd Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood • Ash • Cherry • Hard Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood •

Emporium, PA, USA

rd Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood • Ash • Cherry • Hard Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood •

SALES Sales@rossilumber.com rd Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood • Ash • Cherry • Hard Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood • www.rossigroup.net Middletown, CT, USA Ph 01 (860) 632 3505 Fax 01 (860) 613 3727

rd Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood • Ash • Cherry • Hard Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood •

rd Maple • Soft Maple le • Red Oak • White Oak • T Tuli ulipwood • Ash • Cherry • Hard Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood •

The Gold Standard for American Cherry for over 50 years

rd Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood • Ash • Cherry • Hard Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood •

rd Maple • Soft Maple le • Red Oak • White Oak • T Tulipwood • Ash • Cherry • Hard Maple • Soft Maple le • Red Oak • White Oak • T Tulipwood •

rd Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood • Ash • Cherry • Hard Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood •

rd Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood • Ash • Cherry • Hard Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood • W W W. N H L A .CO M

SEPTEM J UB N E RE 2 0 1 67 H A R D W O O D M AT T E R S

21 93

WHERE IN THE WORLD

THE MARKET OPPORTUNITIES FOR AMERICAN HARDWOODS IN INDIA By Dana Spessert, NHLA Chief Inspector

s spring rolled through Memphis, I embarked on a trip to India with the American Hardwood Export Council to conduct educational seminars with hardwood end-users (furniture & handicraft manufacturers), conduct trade servicing with hardwood end users and meet media contacts in that country.

believes that American tulipwood, as well as American cherry, soft maple, hard maple and sap gum, could all work well in the products being produced in Rajasthan and that, in their lower grades, they will also be cost-effective and high yielding enough for the type and quality of products being produced. The next step is to get some wood on the ground, so that the manufacturers can try it out and show the finished products to their customers abroad. Around 200 manufacturers attended the two events held in Jodhpur on May 6th and in Jaipur on May 8th. AHEC gave an overview of the US hardwood resource, legality, sustainability and the wide range of species, while I gave an introduction to hardwood lumber grading with a practical demonstration. The first of the two events was also attended by two Indian Government ministers and was covered on Rajasthan State TV news.

WH ERE IN THE WOR LD IS N H LA? The team and I had a primary purpose of hosting two educational seminars on American hardwoods and U.S. hardwood lumber grading for manufacturers in Jodhpur and Jaipur – two of India’s major hardwood furniture and handicraft manufacturing centers.

Timber 2017 Forest Products & Technology Exposition

Since January 2017, the availability of one of India’s major traditional hardwood species – sheesham (Dalbergia sissoo) – has become severely reduced due to its listing (along with the complete Dalbergia genus) under CITES. In addition, mango (Magnifera indica) – another traditional species used in furniture and handicraft manufacturing – is becoming more expensive and harder to source. As a result, there is an urgent need to find alternative hardwood species - this could present a major opportunity for certain American hardwoods.

Forest Products Machinery & Equipment Expo

The scale of furniture and handicraft manufacturing in Rajasthan is massive and at least three quarters of what is produced is destined for export markets in the United States, Europe and elsewhere. In Jodhpur alone, it is estimated that some 17 containers (roughly 500 cubic meters) of hardwood lumber are consumed every day. NHLA along with AHEC 20

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June 9-10 | College Station, Penn. Participating: John Hester, Director of Membership

June 14-16 | Atlanta, Ga Attending: John Hester, Director of Membership

AHEC 22nd SE Asia & Greater China Convention June 23 | Qingdao, China Participating: Dana Spessert, Chief Inspector

Sylva Wood Shanghai 2017 June 26-28 | Shanghai, China Participating: Dana Spessert, Chief Inspector

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J U N E 2 0 1 7 H A R D W O O D M AT T E R S

Education, Training and Development and the role of NHLA â&#x20AC;&#x153;In the late 1940s, demand for hardwoods was brisk and there was a recognized growing shortage of competent personnel to properly grade hardwoods under NHLA Rules. The expected happened: lumber was sold without adequate inspection and this in turn led to dissatisfaction with the product, causing a negative shadow on the entire industry and its products. Although short courses had been held to teach hardwood grading they were not enough to answer the real problem. And so . . . the NHLA Inspector Training School was born. WHY THE INSPECTOR TRAINING SCHOOL IS NEEDED Our global economy has become so complex that the gap between what people know about the hardwood industry and lumber grading, and what they need to know, is widening every day. The School is uniquely positioned to close this widening gap in knowledge and competence. Our educational program gives students a hands-on learning environment with teachers who have reallife industry experience including the global market. Students finish the program with a complete understanding of the material and are ready to begin a career as a lumber inspector. Our efforts for the past, almost 70 years, consistently result in positive student learning outcomes and have proven to be quite successful in achieving a broad national and global reach. A thorough understanding of the NHLA grading Rules and their experience at the School will contribute not only to their personal success; but to the successes of the businesses in which they work. This is why we are passionate about educating students about the NHLA hardwood grading Rules and the hardwood industry, an industry they will work in, benefit from, and ultimately, inherit. Why would you trust your education or the education of your employees to anyone other than the tried and true National Hardwood Lumber Association and the one and only Inspector Training School. Registration for the 184th Class is Now Open. Please visit www.nhla.com/education to learn more. 22

J U N E 2 0 1 7 H A R D W O O D M AT T E R S

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70 Years of Education

1948

1978 Board approves a proposal

to secure suitable property for the location of the School and the management offices of NHLA.

1948 The Inspector Training

School is founded in Memphis, Tenn. housed at Nickey Brothers, Inc.

1978 1980

1980 The School moves to the new building.

1984

1984 NHLA offers first

Continuing Education course.

1985 NHLA, with other hardwood

1985 1989 Hardwood Export Trade

Council (HETC) was reorganized and renamed â&#x20AC;&#x153;American Hardwood Export Council.â&#x20AC;?

1989

January 2009 NHLA opens a

Jan

2009

seasonal office in Shanghai, China staffed by previous ITS Director and former Chief Inspector Bob Sabistina.

May

May 2009 NHLA completes

2009

its first 3-Day Lumber Grading Course in Shanghai, China.

Summer 2014 NHLA offers first on-line

Summer 2013 NHLA hosts

2013

Chinese Inspector Training School with the use of Chinese language interpreters.

2018

2018 The NHLA Inspector Training School will Celebrate 70 years of education.

2014

Inspector Training School program.

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trade associations, established the Hardwood Export Trade Council as an organization to receive USDA funds.

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RULES CORNER

2019 NHLA RULES CHANGE PROPOSALS By Dana Spessert, NHLA Chief Inspector

elow is a list of proposed NHLA Rules and Sales Code changes submitted to NHLA for consideration by the upcoming Rules Committee to be held at the NHLA Headquarters in Memphis, TN on the 7th of June beginning at 8am CST. The Committee meeting will begin with an open forum for anyone wishing to speak in favor or against any Rules change proposed. The Open Forum will be approximately 1 hour in duration before the Rules Committee goes into closed session. Anyone wishing to be present at the Open Forum should contact the Chief Inspector, Dana Spessert at d.spessert@nhla.com or by phone at 901-399-7551 at least 1 week prior to the meeting date. PROPOSALS FOR CONSIDERATION 1. The Following to be added to page 26, under the Oak species specific section: a. In white oak for grades of Select and better on FAS face, 1 pin knot allowed which will not affect the grade detrimentally. On the reverse side of a Select and better board all pin knots are allowed. 2. Add Standard Grade: a. Rustic - To grade Standard 1 com except: i. Each cutting is required to have a minimum of 1 character feature and at least one additional feature for each 12 units per cutting. ii. Required character features include solid bark pockets, worm and grub holes, mineral, streaks, gum pockets, sound knots and knots with open inclusions up to ¾ in average diameter, bird peck and open holes or their equivalent up to ¾” in average diameter. Unsound features are admitted that do not seriously impair the strength of the cutting are permitted. Stain and rot are not permitted in the cuttings. iii. Wane is limited to ½” on either or both edges iv. Splits are limited to 12” in length 3. Change Walnut Rules – page 28: a. Eliminate defect grading for 6’ and 7’ FAS, change to Standard FAS Walnut cutting unit method. 4. Change Walnut Rules – page 28: a. Add “standard wane limitation for F1F” to FAS 1 Face Walnut.

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5. Standard Inspection By Species a. Aromatic Red Cedar - Page 34 i. (current wording) Variation in thickness may be 1/2” on 4/4” to 8/4”. ii. Proposal is to delete the sentence underlined. Add the sentence in bold after: iii. Thicknesses: Standard. (Currently Stated) iv. Standard Miscut Lumber Rule to apply. 6. Remove from Basswood – page 24 a. Eliminate the note in basswood that says “dormant twig buds to be considered burls”. i. The reason is that there is no definition for a dormant twig bud in the rule book. I feel that when a defect is identified in the rules it should be defined. The confusion is that some inspectors actually use this note to allow pin knots in the cuttings. According to the basswood rules pin knots are not allowed. I think that if the rules committee keeps the note it must be defined. 7. Sound Cutting Page 10, paragraph 31: a. Change first sentence to – “A cutting free from rot, pith, shake, wane and splits” 8. Standard Grades Change – Page 17: a. Eliminate the standard grade of 2B com. The standard grade of “2 Com” would designate only clear face cuttings just as “2A” does in the current Rules. 9. Standard Grades Change – Page 17: a. Eliminate the standard grade of 2B com. The standard grade of “2 Com” would designate only clear face cuttings just as “2A” does in the current Rules. W W W. N H L A .CO M

10. Change Walnut Rules – Page 28 a. Add “Standard” to F1F. 11. Poplar page 27: a. No 1 Common – Remove “except slight stain is admitted.” b. No 2A Common: Change “stain is admitted” to “slight stain is admitted” 12. Change the NHLA By Laws Article XIII – Inspection Rules (Change to “Inspection Rules and Sales Codes”) a. Some wording in paragraphs 5, 6, 7, 8, and 9 will need to be changes to include both proposed changes to Inspections Rules and also Sales Codes. 13. Some wording in paragraphs 5, 6, 7, 8, and 9 will need to be changes to include both proposed changes to Inspections Rules and also Sales Codes. 14. Sales Code a. Article X, Section 8: Replace “4% money value” with “4% quantitative total in board footage88.” (4% off grade) b. Designate footage disputes as separate from quality disputes in regards to NHLA inspection. Specify a 2% maximum per bundle discrepancy between buyer and seller allowed. 15. Sales Code: Article X Inspection: a. Section 6 – Change $15.00 per M Feet to $30.00 per M feet. b. Section 8. Should this dispute inspection result in not more than 3% deductible difference in money value on grade and/or 1% difference in footage from the gross amount of the invoice, the buyer is to pay all expenses of the inspection, accept all lumber and honor the seller’s invoice in full. If the deductible difference be more than 3% money value on grade and/or 1% difference in footage the seller is to pay all expenses of the NHLA inspection and the labor charges at actual cost or at a rate of $30 per M feet, whichever is less. The seller shall invoice for and the buyer shall retain and pay for all items reported on the dispute inspection certificate of the species and thickness ordered. All other items shall be held for disposition of the shipper.

GROW YOUR BUSINESS WITH NHLA ARE YOU NHLA CERTIFIED? As the hardwood industry searches for new markets, the NHLA Facility Grade Certification Program is a vital component of attracting new customers. This quality assurance program (QAP) is designed to help differentiate your business from the competition and assure customers that your lumber is on grade. Companies that participate in the NHLA QAP are illustrating to customers and potential customers, their willingness to openly submit to independent quality checks. Each participating member of the program pays an annual enrollment fee which covers all costs of the certification visits. A minimum of two facility grade inspections are conducted annually and coordinated with the NHLA Chief Inspector.

THE 2017 RULES COMMITTEE MEMBERS: Pillip Fischer, Maley & Wertz Sam Glidden, GMC Hardwoods Tony Honeycutt, Mullican Flooring Steve Jones, Ron Jones Hardwoods Tim Kassis, Kretz Lumber Paul Kephart, Northwest Hardwoods David Mayfield, Mayfield Lumber Bucky Pescaglia, Missourri Pacific Jim Plowman, Midwest Walnut Bill Rosenberry, Carl Rosenberry & Sons Joe Snyder, Fitzpatrick & Weller Pete Van Amelsport, Quality Hardwoods Tom Wright, Edwards Lumber W W W. N H L A .CO M

For more information on this program contact Dana Spessert, Chief Inspector at d.spessert@nhla.com or call 901-399-7551.

J U N E 2 0 1 7 H A R D W O O D M AT T E R S

EDUCATIONAL CALENDAR

EDUCATION & TRAINING JUNE

JUNE

5-8

6-8

6-Aug 10

13-15

4-Day Lumber Grading Short Course

3-Day Lumber Grading Short Course

Inspector Training School Summer Program-183rd Class

3-Day Lumber Grading Short Course

Yoder Lumber Millersburg, OH

Abenaki Timber Corp. Epping, NH

Keystone Community Education Foundation Oil City, PA

North Carolina State University Hodges Wood Products Lab Raleigh, NC

Instructor: Barry Kibbey,

Instructor: Jack English,

NHLA National Inspector

Instructor: Rich Hascher, NHLA ITS Instructor

Instructor: Benji Richards, NHLA National Inspector

JUNE

JULY

19-22

26-30

10-14

17-20

4-Day Lumber Grading Short Course

Flex-Day Lumber Grading Short Course

4-Day Lumber Grading Short Course

Monarch Millworks Grayling, MI

Deer Park Lumber Tunkhannock, PA

Instructor: Barry Kibbey,

Weiland & Sons Lumber Co. Winthrop, IA

Jonathan Creek Volunteer Fire Department Waynesville, NC

NHLA National Inspector

Instructor: Benji Richards, NHLA National Inspector

J U N E 2 0 1 7 H A R D W O O D M AT T E R S

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EDUCATION IS KEY TO YOUR COMPANY’S SUCCESS Register Online Today! At www.nhla.com "I have recently attended a short course in Menominee, MI. I think I speak on behalf of everyone in attendance when I say that Barry did an outstanding job presenting the material at both the pace and learning levels of everyone in class. He was always willing to make sure everyone was given an appropriate amount of time to get questions answered. I was blown away as to how available he made himself both before class and after class to get together with students who might need some additional help! From a value added perspective it would benefit any company to send employees to attend these classes. I am confident we left with not only information but the tools to begin using the information. Thank you Barry!" — Aaron Ruotsala, Ottawa Forest Products

JULY

AUGUST

17-21

23-25

28-31

30-Nov 17

5-Day Lumber Grading Short Course

3-Day Lumber Grading Short Course

4-Day Lumber Grading Short Course

Inspector Training School Program 184th Class

Emerging Technology Center Franklin, PA

Hardwood Industries, Inc. Sherwood, OR

Carver Hardwoods Waconia, MN

NHLA Headquarters Memphis, TN

NHLA National Inspector

Instructor: Tom Byers,

NHLA National Inspector

Instructor: Rich Hascher,

Instructor: Barry Kibbey,

SEPTEMBER

OCTOBER

11-15

18-22

16-19

5-Day Lumber Grading Short Course

4-Day Lumber Grading Short Course

Kamps Hardwoods Caledonia, MI

Wood-Mizer Products, Inc. Indianapolis, IN

West Virginia Wood Technology Center Elkins, WV

Instructor: Barry Kibbey,

Instructor: Jack English,

NHLA ITS Instructor

NHLA National Inspector

Instructor: Barry Kibbey, NHLA National Inspector

*See all course offerings and register at www.nhla.com/calendar W W W. N H L A .CO M

J U N E 2 0 1 7 H A R D W O O D M AT T E R S

THE GLOBAL GATHERING OF THE HARDWOOD COMMUNITY

JOIN US IN NASHVILLE Oct. 25-27

Registration for the 2017 NHLA Convention is OPEN! For more information, hotel booking and conference registration, visit NHLA.com. OMNI DOWNTOWN | NASHVILLE, TN