2015 March Hardwood Matters by National Hardwood Lumber Association

M A RC H 2 01 5

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

# Throwback

Thursday 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

DEPARTMENTS 1 4 16 18 21

Global Talk Legislative Log Rules Corner Foundation Focus

READER SERVICES 6 President’s Message 8 CEO’s Message 10 Inside NHLA 20 Job Board 22 Calendar

12 Photo Courtesy of AHEC

IN THIS ISSUE 12 #TBT THROWBACK THURSDAY SOCIAL MEDIA TREND HELPS PUSH THE HISTORY OF NHLA

CONTENTS W W W. N H L A .CO M

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

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;

March 2015 ▪ Issue 154 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

Pem Jenkins Turn Bull Lumber Co. President

Skip Holmes Thomas & Proetz Lumber Co. Unique Services

Brent Stief Huron Forest Products Vice President

Darwin Murray McClain Forest Products Structure

Scott Heidler Heidler Hardwood Lumber Co. Past President 2012-2014

Charlie Netterville Fred Netterville Lumber Co. Membership & Networking

promoting North American hardwood lumber and

Mark Barford, CAE Chief Executive Officer

Jack Shannon J.T. Shannon Lumber Co. Industry Advocacy & Promotion

advocating the interest of the hardwood community

NHLA STAFF

Gary Swaner Swaner Hardwood Co. Rules

in public/private policy issues; and providing a platform for networking opportunities.

Mark A. Barford, CAE Chief Executive Officer m.barford@nhla.com Kristina Bran Digital Media Manager k.bran@nhla.com

About the Cover: Shown on this month's cover is the 1st Class of the NHLA Inspector Training School. The class was held in 1948 in Memphis, Tenn.

Melissa Ellis Graphic Designer m.ellis@nhla.com Renee Hornsby Director of Communications/Editor r.hornsby@nhla.com

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

Desirée Freeman Controller Rich Hascher Inspector Training School Instructor

ADVERTISER INDEX

John Hester Director of Membership

Brewco Inc.

Picture Tally

Dunavant Global Logistics Group

IFC

Pike Lumber Company, Inc.

19 Froedge Machine & Supply Company, Inc.

Southern Forest Products Association

IBC

The Jacobs Team

TradeLanes, Inc.

UC Coatings Corporation

King City/Northway Forwarding

5 Lumbermen's Underwriting Alliance 13

NYLE Systems, Inc.

17 USNR

Dana Spessert Chief Inspector Denise Stewart Director of Administration

COMMITTEE CHAIRS Dave Bramlage Cole Hardwood Membership Dan Caldwell Atlanta Hardwood Corporation Hardwood Advocacy Jim Reader Downes & Reader Hardwood Continuing Education/ Member Services Orn Gudmundsson Jr. Northland Corporation Communications & Marketing Scott Heidler Heidler Hardwood Lumber Co. Nominating Darwin Murray McClain Forest Products Finance Bucky Pescaglia Missouri-Pacific Lumber Co., Inc. Inspector Training School Joe Snyder Fitzpatrick & Weller, Inc. Rules Brent Stief Huron Forest Products Strategic Planning Stephanie VanDystadt DV Hardwoods Convention

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

W W W. N H L A .CO M

SAFELY SPEAKING

LUMBERMEN’S UNDERWRITING ALLIANCE

Maintaining and Improving Emergency Access When an emergency occurs at your facility, time is of the essence. One of the most important things you can do to improve the response time of firefighters or medical personnel is to ensure that these responders can quickly and easily access all portions of your facility. Maintain adequate driveway access to buildings Your first priority should be sufficient, wellmaintained access to all areas. Establish roadways to all areas that can be kept clear and maintained to a level suitable for fire apparatus use. All portions of buildings should be easily reachable, and equipment like fire hydrants, automatic sprinkler connections, and utility disconnects should be kept clear and readily accessible. While local and state codes may dictate otherwise, both the International Fire Code and the National Fire Protection Association’s “Standard 1 - Uniform Fire Code” both require a minimum 20-foot wide road within 150-feet of all portions of the exterior walls of the first story of a building. This width is required to allow large apparatus to set-up and operate while allowing other apparatus to pass alongside as needed. In the case of aerial equipment that utilize stabilizers or where hydrants are adjacent to the roadway, this width may not be sufficient. Also, remember that fire apparatus may be taller than standard work trucks, so be sure that adequate vertical clearance (typically 13’ 6”) is provided to all obstructions. The best approach is to consult with your local fire department or code official. Not only is width and height important, but also the ability to support the excessive weight associated with large fire apparatus. If you do not have adequate roadway available, no specified material is required for providing suitable access, though a number of options exist. Driveways may be constructed of concrete or asphalt, or may be built up with crushed stone or other substrate. Concrete “grass pavers” are an aesthetically pleasing way of providing adequate support for vehicular traffic without giving up grassed areas.

W W W. N H L A .CO M

Presenting Sponsor of the 2015 NHLA Annual Convention & Exhibit Showcase

Maintenance of the roadway not only includes the actual construction of the access road, but also includes seasonal maintenance. This means that water should readily dissipate from the roadway and that any snow accumulations are kept clear at all times. In all cases, proper drainage is necessary to reduce the risks associated with potential flood waters or mud. Identify buildings and provide maps Even with good access, emergency personnel may not immediately know where they are needed. A small amount of pre-emergency planning by facility management can greatly improve response time. Develop a clear system for the identification of buildings and other notable areas on a property. This may be as simple as numbering all buildings, as well as the doors leading into them. A uniform naming system for the various areas of a facility will ensure consistency in an emergency, but to be effective, you must be sure that all personnel are familiar with the accepted names. Using those names, develop a simple site map that shows the various elements of a property and annotates them accordingly. These maps should be placed in all areas where emergencies may be reported. It is also beneficial to provide copies of the map to your local emergency responders for use in their pre-planning and response efforts. It is much more effective for the fire department to have adequate information about the facility prior to an emergency, giving them the ability to respond directly to the scene of a fire or medical need. For more information about LUA’s products and services ask your broker to contact us at 1-800-327-0630 or visit us at www.LUA.cc

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

PRESIDENT’S MESSAGE

NHLA BOARD REMAINS NEUTRAL ON CHECK OFF DISCUSSION One of the most interesting characteristics of the hardwood lumber industry and one of its greatest strengths is the fragmentation of the industry. This fragmentation creates huge opportunities for each and every member of NHLA. The fragmentation is also what allows so many of the stakeholders in the industry to be independent businesspeople. This very independence has also fueled a raging debate around the potential disadvantages and advantages of a Hardwood Check Off program. The purpose of this letter is to reconfirm to the membership and other stakeholders in the industry that the NHLA board has voted to remain neutral on the issue and to act solely as a conduit for the dissemination of information to our members pertaining to it. The publication last month of a press release by the Hardwood Check Off Committee in Hardwood Matters, after all sides of the debate were told by NHLA that no more articles would be published, was an error in judgment that required the executive committee to hold the staff accountable. The debate that the publication initiated is reflective of the passions surrounding this issue in the industry. Last month’s publication is also what initiated the publication of the press release from the U.S. Hardwood Industry Coalition in this month’s issue as a “quid pro quo”, so to speak. Neither press release represents the opinion of the NHLA Board of Managers or the Association. Going forward, NHLA will continue to serve its members by disseminating information with the goal of having an informed membership. NHLA will not publish “opinion type” pieces on the Check Off until the issue is closer to a vote or there is a material change in the process or the Order under review. I will never forget the NHLA convention where General Colin Powell spoke about leadership. General Powell stated that it is critical for any successful leader to face reality and look at the facts of a situation. He also stated that leaders who do not face reality and focus on facts are doomed to self-delusion or failure or both. The duration of the Check Off process has been divisive and frustrating for many people in the industry. The only way that the leaders of the member companies of NHLA can face the facts as prescribed by General Powell and make an informed decision on the Check Off is for us to have clear guidance as to next steps on the Check Off and for this we will all have to be patient for the process to run its course. In closing, I want to reiterate the position of the NHLA that the Board voted to remain neutral on the Check Off and to keep members informed on the issue and its status. As your President, I am committed to carry out the direction of the Board and the Board has directed NHLA staff to do the same. Let’s all hope that we get clarity on this issue soon so we all can get on with the primary challenges of running our businesses. Let’s also demand of each other that when we do have the facts, that we are all thoughtful in our discernment about what is the best course for our industry, our association and our companies.

I will never forget the NHLA convention where General Colin Powell spoke about leadership. General Powell stated that it is critical for any successful leader to face reality and look at the facts of a situation.

Thank you for the privilege of serving as your President,

Pem Jenkins, NHLA President Turn Bull Lumber Company 6

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

W W W. N H L A .CO M

A great business succession plan involves more than just handing over the company keys. A lot more! You’ve spent years building and nurturing your business and now it’s time to pass your company over to the next generation of leadership. At TJT Consulting we understand the gravity of such an important decision and know how to help you manage this major transition in your life. Our team of experts in the field of business succession planning will guide you through the essential steps it takes to assure you the confidence that your legacy will be left in good hands. Don’t leave your legacy to chance. Call the pro’s at TJT Consulting today to arrange for a free initial consultation.

TJT CONSULTING

Business Succession Planning 4001 Legion Drive • Hamburg, NY 14075 Toll Free: 866-287-5919 or (716) 649-4460 E-mail: djacobs@tjt4001.com www.tjtconsulting4001.com

Confidence • Commitment • Results W W W. N H L A .CO M

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

CEO’S MESSAGE

20/20 VISION FOR THE HARDWOOD LUMBER INDUSTRY I often speak on behalf of the hardwood lumber industry, and one frequent question asked of me is “what is the future of the hardwood lumber business?” “Will it survive and what will it look like?” The answer is yes it will survive and prosper, but the industry will look very different from what we see today. But, before I answer those questions, here are a few general points for consideration. First and foremost, we’ve got the trees. The U.S. Forest Service estimates approximately two trillion board feet of merchantable hardwood timber is currently standing in U.S. forests, and it is still growing at twice the pace of harvesting. One reason we know we will have a strong industry is the fact that we have a plentiful resource. Of course maintaining access to that resource, through sound policy and protecting private property rights will be an on-going challenge. Today, more than 90 percent of the world’s population is under the age of 60. Of the 7 billion people on earth, about 1 billion live in developed countries. By 2050, the world population is expected to hit 9 billion, with approximately 1 billion in developed countries and 8 billion in developing countries. With exports now consuming half of the grade hardwood lumber produced, the hardwood industry’s future is tied to world growth and expansion of the grades to all countries. The industry will approach 10 billion board feet of production in 2015, and surprisingly that amount matches the average annual production for the industry over the past 100 years. In other words, despite meteoric rises in population, the industry has remained approximately about the same size, indicating a case for considerable growth potential. My 20/20 vision for the hardwood industry comes down to the three C’s: China, Consolidation and Cash Flow. China is the easy one. Chinese imports of American hardwoods have nearly quadrupled over the past four years, with no end in sight. Current export projections are estimated at nearly 800 million board feet to China, and for perspective we sell roughly 400 MMBF to the domestic furniture industry. Consolidation will likely continue with more and more small and mid-sized family owned companies succumbing to the pressures of labor, regulations, costs and lack of marketing. Coming out of the most recent depression 50% leaner in sawmill operations, there are already fewer companies with increased production – a trend that will continue. And finally Cash Flow. With continued narrow margins, and the high level of equipment and personnel depreciation that took place over the past 10 years, the industry is having a hard time finding the money. Despite rosy predictions of housing growth, approaching the record housing starts of 15 years ago may not very soon happen. Most mills had a pretty good 2014, but nowhere near good enough to make up for the massive investments that individual companies and owners have made to keep mills running.

The U.S. Forest Service estimates approximately two trillion board feet of merchantable hardwood timber is currently standing in U.S. forests, and it is still growing at twice the pace of harvesting.

As someone who has watched this industry grow and change for more than four decades, I am inspired by the optimism shared by most people I talk with about the future. Those in the industry that can fit these future trends into their business model will be the ones leaving it to the next generation.

Mark Barford, CAE, Chief Executive Officer 901-377-1082 direct | m.barford@nhla.com 8

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

W W W. N H L A .CO M

IT DOESN’T MATTER WHO YOU ARE...THE B-1600 IS

EASY TO RUN See us at

HMA Nashville Booth #20

• Automation designed to keep operator

focused on one thing...turning cant to get best grade • All other functions automatically controlled • Feed Speed automatically adjusts based on width of cant • System stays butt-fed to allow highest production

MADE IN AMERICA

HEADQUARTERS: 607 Front St. Central City, KY 42330

800.237.6880 www.brewcoinc.com

W W W. N H L A .CO M

T H E

P I O N E E R

O F

H 2H 0 1 5I HN A R-D K W OE O DRMF AT T ER R S E S A9 W T H MEA R C T

INSIDE NHLA

A MESSAGE FROM THE EXECUTIVE COMMITTEE It has come to the attention of the Executive Board and staff of NHLA that the placement of a press release regarding the proposed USDA Check off in the most recent issue of Hardwood Matters was such as to suggest that it represented the viewpoint of NHLA, its Board, Staff and its members. This is not the case. The Board has adopted a policy of neutrality with respect to the proposed Check off. The placement of the press release from the Hardwood Check off committee in Hardwood Matters without an introduction and a clear and full disclosure as to the source was a mistake by the editorial staff of Hardwood Matters and

INSPECTOR TRAINING SCHOOL ASKING FOR VOLUNTEERS One of the biggest concerns expressed by NHLA members is the lack of "young blood" coming in to the hardwood industry. Since the NHLA Inspector Training School is where most hardwood industry leaders and management staff come from, a shortage of NHLA trained personnel could affect almost every facet of your business. NHLA is trying to remedy this concern but we need your help. The School is looking for volunteers, within the NHLA membership, to take Inspector Training School information packets to guidance counselors at your local high schools and job fairs in your area. Not only will you be helping to create skilled employees for the industry, you will help raise the quality of life for people in your community. Wouldn't that be a great thing? NHLA has ready made packets, we just need your help to distribute. If you are interested in helping grow the School, and by extension grow the hardwood industry please contact Becky Miller at b.miller@nhla.com or Ryan Wolfe at r.wolfe@nhla.com or call 901-399-7569. Thank you in advance for your consideration with this critical task.

though this was done in in the spirit to communicate and inform it is with much regret that this happened and that we are writing this letter. The purpose of this letter is to reiterate that the Board of NHLA is committed to a neutral position on the Hardwood Check off. Our sole purpose is the dissemination of information with the goal of helping our members make better-informed decisions. NHLA will not advocate pro or con for the Check Off. Â We are sorry for any misunderstanding as to the intent of the publishing of the press release and ask that those who are upset by the publication accept this apology in good faith. We also ask, no matter on which side of the issue you stand, that we all remember we are in this together. Furthermore, as we think about this and other issues impacting our industry, we give them careful and thoughtful discernment. The hardwood lumber business is a wonderful business with wonderful, hardworking people and we are stronger together than we are divided. Thank you, The Executive Committee of NHLA

USDA PUBLISHES COMMUNIQUE TO CLARIFY CHECK OFF STATUS. The USDA released the following statement on February 10. Recently, it appears there may have been some confusion regarding the current status of the proposed research and promotion program for hardwood lumber. To clarify, USDA is still in the process of evaluating the voluminous comments received on the proposed rules for the Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order and Referendum Procedures. We hope to complete our review shortly. AMS intends to publish any next step in this rulemaking process in the Federal Register, and, if appropriate, provide an opportunity for public comment. 10

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

W W W. N H L A .CO M

INSIDE NHLA

The opinions, beliefs and viewpoints expressed by the various authors in this magazine (Hardwood Matters) do not necessarily reflect the opinions, beliefs and viewpoints of the National Hardwood Association or official policies of the Association.

VIRGINIA FOREST PRODUCTS ASSOCIATION DECLARES OPPOSITION TO HARDWOOD CHECKOFF PROPOSAL The US Hardwood Industry Coalition lauds the action taken by the Virginia Forest Products Association (VFPA) to oppose the Hardwood Checkoff initiative. In a letter dated February 3, 2015, to the USDA’s Agricultural Marketing Service, the VFPA stated: Virginia Forest Products Association has officially changed its position from NEUTRAL to OPPOSITION regarding the aforementioned Hardwood Plywood Promotion program The Checkoff proposal was published in the Federal Register on November 13, 2013. A 90-day comment period ending on February 18, 2014, yielded more than 950 industry comments on the plan, which was targeted for a final proposal in May 2014. A majority of the comments were opposed to the proposed Checkoff blueprint. While the comment period for industry input on the structure and scope of the Checkoff has been closed for nearly a year, the 14-member advocacy group that proposed the original Checkoff, known as the Blue Ribbon Committee, stated in a January 8, 2015 press release that it anticipates “the next step to be publication of a revised proposal.” In its communiqué to the USDA, the VFPA indicated that its opposition includes “any reiterations of the proposal that might occur.” “I hope the stance that the Virginia Forest Products Association has taken will impress upon the USDA the widespread opposition to the Hardwood Checkoff and will eventually result in the formal termination of the proposal,” said Brian Brookshire, Executive Director of the Missouri Forest Products Association.The Missouri association has officially opposed the Hardwood Checkoff proposal since shortly after it was published in the Federal Register. The co-chairmen of the US Hardwood Industry Coalition, Jeff Hanks of Bill Hanks Lumber of Danbury, North Carolina, and Jeff Edwards of Edwards Wood Products of Marshville, North Carolina, issued the following joint statement: “We congratulate the Virginia Forest Products Association for taking this action. While we recognize the Checkoff process has worked for many agricultural commodities, the longer this concept W W W. N H L A .CO M

is debated for the hardwood industry, the clearer it becomes that the Checkoff model just does not fit our industry structure. “Moreover, the specific proposal put forth by USDA has all the makings of a government program, not an industry directed initiative. “Indeed, for USDA to proceed on revising the original proposal while the official public comment period is closed, as the Blue Ribbon Committee has suggested, would mean that the industry – both proponents and opponents – would be prohibited from providing USDA with any substantive input into a revised proposal. “At this point in time, the only viable action is to terminate any further proceedings on the proposed rule.” Under federal rulemaking procedures, once an official comment period is closed, there is a prohibition on ex parte communications. Ex parte communications include any discussions between federal agency decision makers and industry stakeholders regarding the substance of an agency’s proposed rule. Thus all parties are prevented from discussing with USDA any ideas or concepts for, or modifications to the Checkoff. The US Hardwood Industry Coalition submitted comments to USDA opposing the referendum procedures that exclude more than half of the industry from voting in any referendum on the Checkoff and the methodology that would weight any referendum vote by a company’s sales volume. Additionally, the Coalition commented that the proposal published in the Federal Register has more than a dozen cases where definitions and procedures are confusing, misleading, lack clarity or are unworkable. The Virginia Forest Products Association is the unified voice of Virginia’s more than $25 billion forest products industry. The Missouri Forest Products Association is dedicated to serving and promoting the forest products industry of Missouri. Founded in 1970, MFPA has more than 300 members. The US Hardwood Industry Coalition is comprised of hardwood lumber manufacturers nationwide who oppose USDA’s most recently published Checkoff proposal. In May of 2014, the Coalition commissioned a telephone research study about industry attitudes towards the Checkoff. Conquest Communications of Richmond, Virginia, questioned hardwood lumber manufacturers identified on a list from USDA of eligible companies to vote in any referendum on the Checkoff. A total of 257 companies responded. Those respondents represent 18 percent of the companies eligible to vote on USDA’s proposed check-off, which is a statistically representative sample of all hardwood lumber manufacturers. When presented with the question, “as the USDA check off proposal is written, do you plan to vote for it or against it?” a total of 83 percent of respondents indicated they would vote against the check off program. M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

#TBT T

HE NHLA STAFF HAS BECOME VERY nostalgic recently about the history of the Association and the Inspector Training School. With a little research and some help from the industry’s most influential people, NHLA began its Throwback Thursday segment on social media in January of this year.

If you’re not familiar with Throwback Thursday, it is the name of a weekly social media posting trend and hashtag game that users participate in to share and look back fondly on some of their favorite memories — hence the “throwback” theme. In this case, the “throwback” component of a post can pertain to basically anything that happened in the past. The acronym is usually written as ‘#TBT’ and is linked to other posts participating in throwback Thursday with a hashtag (#.)

Class of 194 8

TBT can be posted on Facebook, Instagram, Twitter or Tumblr. Participating in TBT is not only fun, but can also be used as a promotional tool for business. The benefits of using TBT for business are endless. For instance, it shows longevity and history, which are often times associated with success. Additionally, TBT posts give a little personality to an organization by showing creativity and the ability to stay current with trends while having a little fun. Furthermore, using the TBT hashtag immediately links an organization to the millions of social media users that participate in Throwback Thursday. The exposure an organization can get from such a simple, creative and fun tool is certainly enticing. NHLA is a great example of an association with a lot of history and a great story to tell. Follow us on Facebook and Twitter to see NHLA throw it back every Thursday. Here are some examples of TBT from the NHLA Facebook page:

OD HARDWO Training O N TH E r A Inspecto m was all T he N H L a te asketball nd 60’s. School b a ’s 0 in the 5 e g rmen’s ra e th e L u mbe th y b yed d Sponsore phis, the team pla m e M y Club of mphis Cit er f the Me as part o peting against oth e th om League c Any student from y. s. la m p a te to a are eligible s a w s s any la current c if the teams were n o a No word vertheless it was ne ity! Tony Felch's pa per good but uilding opportun airplane b m a te great TONY FELCH rain ing ctor T m Tony Felch, a graduate of the e p s n 117th class, set the world record ll Tea HLA I in 1985 for throwing a paper airplane, 193 The N ol B asketba feet. This feat earned him the Gui o nness Book Wo h rld Record for the longest thrown Sc distance of a paper airplane. When Felch attended the School in 1995, he decided to show his classma tes his secret talent using the paper airplane pictured above. This paper airp lane is still on display at the School today. 12

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

W W W. N H L A .CO M

Robin Perez

bs a Com B a rba r

Fred McClellan and Tessa Ketchum

YOU GO GIRL! In 1974, Barbara Combs became the first woman to attend and graduate from the Inspector Training School as part of the 54th Class. Barbara was class treasurer and participated on the yearbook committee. Her employer Hassel & Hughes Lumber Co. located in Collinwood, Tennessee sponsored her. A local newspaper received word that women were now enrolling in the School and published an article about Barbara and two other women who followed in her footsteps the following year.

an an d Fred McClell um w ith Tessa Ketch er Rich Hasch LOVE IS IN THE AIR AT NHLA! Fred McClellan and Tessa Ketchum met at the Inspector Training School when they were both students in the 119th class. The two fell in love and decided to get married at the School on July 7, 1997. The two were married by Jim Kaler from Central North Church in front a small group of people including School Instructor Rich Hascher.

Shirley Buck

Have an idea for an NHLA Throwback Thursday post? Send your stories and pictures to Kristina Bran, Digital Media Manager at k.bran@nhla.com.

Dry Kilns Dehumidification Kilns Indirect Fired Gas Kilns No Boiler needed!

lumber.nyle.com W W W. N H L A .CO M

207-989-4335 800-777-6953 M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

GLOBAL TALK

AHEC LAYS OUT 2015 PROMOTIONAL STRATEGY By Mike Snow, American Hardwood Export Council Executive Director With nearly 50 percent of graded U.S. hardwood lumber production now being exported, international promotion has never been more important to this industry. Globalization has meant not only the migration of manufacturing, but has also led to unprecedented growth in global purchasing power. Indeed, it has now become clear that much of the increased demand for hardwood products—including finished products—is coming from outside the U.S., especially in the rapidly growing economies of Asia. In terms of promotion, therefore, it is very important that our industry recognize and target not only the high-volume re-export manufacturing sectors of today and tomorrow (the search for the “next China”), but we must also identify new market opportunities and niches within well-established, so-called “mature” markets. The AHEC programs are designed to do both, as we provide a wide array of information to overseas importers, distributors, specifiers and end users of wood products. For 2015, AHEC has laid out a four-part strategy designed to “grow the pie” in overseas markets for US hardwood exporters. A brief outline of that strategy follows: 1. Seek out new markets for hardwood products: In areas of the world where there is low understanding of US hardwoods, most notably inland China, AHEC will continue to “push” demand through import channels by providing technical information, trade servicing and conducting technical seminars. In more mature markets, the focus will be to “pull” demand by targeting specifiers and manufacturers through a multi-pronged basket of activities that includes demonstration projects, design/architectural seminars, and a targeted PR campaign. 2. Promote new uses and applications within existing markets: “New markets” means more than just new geographical regions. In 2015 AHEC will continue to be actively involved in identifying and exploiting potential new market segments, such as hardwood use in structural applications through CLT development or the potential for thermally-modified or treated hardwoods to gain a foothold in the exterior applications market. 3. Continue to extoll environmental credentials: 2015 marks the official launch of the American Hardwood Environmental Profile (AHEP), an environmental profiling “tool” that will combine legality information (EUTR, Lacey requirement), sustainability data from the US Forest Service and LCA impacts from the AHEC research. The AHEP makes it possible to produce, at the push of a button, a two-page profile specific to every container of US hardwood exported. At the same time, a multi-pronged PR campaign will continue to target architects, designers and consumers with information on US hardwood forest management as well as the environmental attributes of American hardwoods. 4. Create Networking Opportunities for US Exporters: In 2015 AHEC will create a number of opportunities for US exporters to engage with overseas buyers. US hardwood pavilions will be organized at leading global trade shows such as Interzum Guangzhou, the Dubai Wood Show, SylvaWood Shanghai, and Intermob Turkey. AHEC will also sponsor Conventions in China, the United Kingdom and Mexico and host dozens of seminars and networking receptions around the globe. Below is a partial list of AHEC activities for the year:

AHEC ACTIVITY CALENDAR 2015

March 3-7 | Kuala Lumpur, Malaysia | Malaysia Int’l Furniture Fair

April 13 | Dubai, UAE | “Timber Talk” Seminar

March 13-16 | Singapore | International Furniture Fair

April 14-16 | Dubai UAE | Dubai Wood Show***

March 11-14 | Ho Chi Minh, Vietnam | VIFA Furniture Show

April 15 | Yamagata, Japan | AIA Architecture Seminar/Tour

March 16-20 | Bento Goncalves, Brazil | FIMMA Brazil

April 16-17 | Dubai, UAE | AHEC/NHLA Grading Seminars

March 23-27 | Australia (various) | Timber in Design Seminars

April 17-20 | Qingdao PRC | Qingdao Furniture Fair

March 24-26 | Shanghai, PRC | DOMOTEX Asia/CHINAFLOOR

April 18-19(TBC) | Amman, Jordan | AHEC Technical Seminars

March 28-Apr 1 | Guangzhou PRC | Interzum Guangzhou***

May 1 | Milan, Italy | EXPO/World’s Fair Opening

April 1-30 | Milan, Italy | Wallpaper Design Exhibition

May 5-8 | Cologne, Germany | Interzum Cologne

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

GLOBAL TALK

30% L

than 2 ger 013!

FOREST PRODUCTS

October (TBC) | Cairo, Egypt | Cairo WoodShow November 25-27 | Tokyo, Japan | Intâ&#x20AC;&#x2122;l Furniture Fair Tokyo

INNOTECH

INNOVATIONS AND TECHNOLOGY PROGRAM

December 11-14 | Taipei, Taiwan | Taipei Building and Construction ***Denotes Planned US Hardwood Pavilion

W W W. N H L A .CO M

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

LEGISLATIVE LOG

ENVIRONMENTAL RULES & REGULATIONS AND THE HARDWOOD INDUSTRY By Dana Cole, Executive Director Hardwood Federation

All businesses, regardless of size, scope, history or location, are regulated by local, state and federal laws. In terms of intent, regulation is not a bad thing. In the purist sense, rules and regulations are put into place to protect the environment, the community, the employees and the business itself. However, best intentions can often take a detour with the end result of messy layers of incompatible rules, guidelines and requirements.

standards on coal fired electric utilities. That is good news. However, the memo then went on to say that biomass could be considered to be carbon neutral if it is sourced in a sustainable manner. Unfortunately, EPA did not define “sustainable” in the memo and so there is concern about how that may be enforced. This issue will continue to be at the forefront in 2015 as we look for certainty and clarity about the benefits of biomass as a carbon neutral source of energy.

The Hardwood Federation pays attention to regulatory initiatives at the federal level, working to understand how efforts to “help” can turn into efforts that cause confusion and stress. Environmental regulations are often the most difficult to reconcile. Everyone wants a better environment, and indeed, data and science show that U.S. companies continue to reduce and negate harmful emissions into the air and water through more effective discharge systems and more thoughtful planning. But despite industry’s best intentions, new and “improved” regulations continue to be proposed that lead to more questions than solutions and more frustration than clarity for business owners and their employees.

Waters of the U.S. (WOTUS): The U.S. Environmental Protection Agency’s (EPA) proposal to expand the number and types of waters that would be subject to federal Clean Water Act permits has drawn considerable opposition from landowners of all types-row crop agriculture, forestry, livestock operations-as well as industries whose activities may affect these waters. The so-called Waters of the U.S. rule (WOTUS) could significantly increase the regulatory burden on impacted businesses and create increased workloads for permitting authorities already stretched to maximum capacity.

The Hardwood Federation is closely monitoring several proposed regulations that have a clear downside for the business community in general, including the hardwood industry. Carbon Neutrality/Biomass: In late 2014, the U.S. Environmental Protection Agency (EPA) released the so called the Biogenic Framework, specifying how carbon emissions from biomass combustion will be treated under the Clean Air Act. Throughout the year, the Hardwood Federation coordinated with other biomass-related trade associations, including the National Alliance of Forest Owners and the American Forest & Paper Association on information sharing and advocacy efforts. While the Framework is a bit vague and does not provide any definitive policy direction on biomass, a memo accompanying the document was encouraging. In it, EPA pronounced that biomass would be considered a viable pathway for states to comply with EPA’s new carbon emission

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

The issue, which has been debated for years, is how to address non-navigable water bodies that may have a “significant nexus” to a navigable waterway. The Clean Water Act is crystal clear that all discharges into a navigable water require a permit. What is not clear is what constitutes a “significant nexus.” EPA has taken a very broad view of this term in its WOTUS, which would apply permitting requirement to a broad, new universe of wet areas, leading to increased requirements for permitting where permitting has long been unnecessary. Congress is taking a close look at this proposal. On February 4, the Senate Environment and Public Works Committee and House Transportation and Infrastructure Committee held a rare joint hearing to hear from EPA Administrator Gina McCarthy and to take testimony from impacted business on the proposed Waters of the U.S. rule. The Federation has weighed in with the EPA, expressing our concerns. We will continue to actively engage EPA by ourselves as part of a broader industry coalition as this issue moves forward.

W W W. N H L A .CO M

LEGISLATIVE LOG

Everyone wants a better environment, and indeed, data and science show that U.S. companies continue to reduce and negate harmful emissions into the air and water through more effective discharge systems and more thoughtful planning.

Ozone: Late last year, EPA released a 626 page proposal that would tighten the current ground level ozone standard from 75 parts per billion (ppb) to somewhere in the range of 65-70 ppb. In addition, the proposal indicated that the agency would also contemplate ratcheting it down to as low as 60 ppb.Â EPA was under a court ordered deadline to release the proposal and it must finalize it by October 2015. The concern among the business community is that tightening the standard to levels that are being contemplated would bring virtually the entire country into non-attainment for the pollutant.Â Companies operating in ozone nonattainment areas have a harder time obtaining permits to expand operations, for example, and are subject to additional control measures compared to those situated in attainment zones.Â There is also a question of how effective currently available technology is in terms of reaching these very aggressive goals. The Hardwood Federation is monitoring developments on this issue and working with our general manufacturing trade association allies in ensuring that the concerns of job creators are effectively articulated to both the Agency and Capitol Hill. It is a very good bet that more issues will arise in 2015. The Hardwood Federation will remain your eyes and ears in Washington, D.C., tracking and taking action on those issues that most impact you and your business.

Millwide. Worldwide.

W W W. N H L A .CO M

2012-08_Package Kiln.indd 1

3/10/2014 4:02:54 PM

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

RULES CORNER

REMOVING CONFUSION By Dana Spessert, NHLA Chief Inspector Recent questions and issues regarding grades and Warp will be the focus of this month’s article. The first issue to address is the order in which the standard hardwood grades are prioritized when inspecting hardwood lumber. The answer to this is straight forward and defined when an order calls for the Standard Grades such as 1 Common, 2A Common, 3A Common, 2B Common, 3B Common and Sound Wormy. The confusion can occur when an order calls for 2 Common. The grade of 2 Common is defined in the NHLA Rules Book as 2A Common and 2B Common combined as one grade. When an order calls for 2 Common the inspector should include all of 2A Common and 2B Common that the logs produce as stated in the 2015 NHLA Rules Book, page 14, paragraph 51; “No. 2A Common and No. 2B Common may be combined as one grade, No. 2 Common, and when so combined and specified should be understood to include all the No. 2A Common that the logs produce.” When an order calls for 2 Common as described above it should be understood that the priority for the grades should now be 2A Common, 2B Common, 3A Common, 3B Common and Sound Wormy. The reason this can be an issue is that much of the time a 3A Common board can meet all of the requirements for a 2B Common board and vice versa; this can and does impact the overall value of a shipment depending on which way the inspector graded it. The second issue to discuss is how much Warp is allowed in the grades of FAS, FAS 1 Face and Selects? The warp limitation is actually explained in two different areas of the NHLA Rules Book. The first description of Warp limitation can be found in the definition of a Cutting, and the sentence that specifically mentions Selects and Better as written: “In the grades of Selects and Better the entire board must be flat enough to surface two sides to standard surfaced thickness (for skip limitations, see page 58 under the rule “Clear-Face” Cutting Grade)” 18

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

The second description of Warp is under the Standard Grades, FAS, page 15, paragraph 61 as a limitation for FAS: “Warp and Cup shall be admitted if the entire board will surface two sides to standard surfaced thickness in accordance with the rules for lumber surfaced two sides, except that cupped or warped pieces 12” and wider are admitted if they can be ripped to produce two pieces each of which would grade FAS and meet this Warp and Cup requirement. The exception as to pieces 12” and wider shall not apply to contracts for lumber in special widths 10” and wider.” As an inspector, Warp can be a very difficult problem to handle due to the inability to accurately measure the amount of Warp in a board. The specific type of Warp that is easiest for an inspector to measure is Cup. Cup is defined in the Rules Book as: “A distortion of a board in which there is a deviation flatwise from a straight line across the width of the board.” When measuring Cup, I prefer to lay the lumber rule on its edge across the width of the board at the area showing the maximum Cup in the standard length. Then, lay a sharpened pencil flat on the board, in the deepest area parallel to the edge of the board and see if the lead starts under the lumber rule. My rule of thumb for 6/4 thickness or less is to assume that the board has too much Cup to dress out, if the lead of the sharpened pencil will start under the edge of the lumber rule (unless the board is 12” and wider -11 ½” kiln dried -and will produce two FAS boards after ripping). The same method could be used for 7/4 thickness and more, as long as you make an adjustment to the amount of the pencil that can pass under the lumber rule due to being allowed ¼” to be removed for surfacing. I hope the above information is helpful and as always, please do not hesitate to contact me with any questions. Dana Spessert, NHLA Chief Inspector 901-399-7551 d.spessert@nhla.com

W W W. N H L A .CO M

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

JOB BOARD

You Bring THE WOOD...

* To view current job postings or to post a job, visit www.nhla.com/jobboard.

ANCHORSEAL

Saw Filer Located in the Smokey Mountains, T & S Hardwood, Inc. has an immediate need for an experienced Saw Filer/Carbide. The position offers great benefits and salary is based on experience. To apply please email resume to Ted Rowe at drowe.tshardwoods@yahoo.com. T&S Hardwoods Inc. PO 1004 | 3635 Skyland Dr. | Sylva, NC 287789 828-586-4044 | 828-586-6664 (fax) | www.tshardwoods.com Saw Filer Rutland Lumber is seeking a knowledgeable Saw Filer. Knowledgeable in all aspects of filing band saws, preferably at hardwood mills. Benefits include paid holidays, profit sharing, year-end bonus and insurance. To apply please call or email resume to tduncan@rutlandlumber.com. Rutland Lumber 1731 Sunset Rd | Collins, MS 39428 601-765-8892 | 601-765-4352 (fax) Lumber Inspector Graham Lumber Company, a division of American Hardwood Industries is seeking an experienced hardwood lumber inspector for its Linden, TN location. Graham Lumber offers a competitive compensation package and a broad range of benefits including health, dental, vision, life insurance and 401-K. American Hardwoods is an EEOC employer. Qualified candidates should have at least 2 years of experience. To apply, please send resume to the attention of Keith Snider at the address below or fax or call the office at 540-941-1488 or cell phone at 731-431-3658. Graham Lumber Company, LLC P.O. Box 679 | Linden, TN 37096 540-941-1464 | 931-589-5914 (fax)

We’ll Bring THE PROTECTION

Reduce Losses, Conserve Resources and Improve Yield with ANCHORSEAL ® and ANCHORSEAL 2 ®

Lumber Inspector Fred Netterville Lumber Co. is seeking a seasoned inspector (minimum of 2 years of experience) who can grade on dry end and is able to reman lumber when needed. Qualified candidates must have good work habits and the ability to communicate and work with your men. Fred Netterville Lumber Co. is an established business with a 64-year history offering pay at the top of the pay scale, great insurance and a 401-K package. To apply please call Charlie Netterville at 601-888-4343 or cell at 601870-5930 or email resume to: Charlie@nettervillelumber.com.

1 - 8 8 8 - E N D - C O AT s a l e s @ u c c o a t i n g s . c o m w w w. u c c o a t i n g s . c o m

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

Fred Netterville Lumber Co. 3975 Buffalo Road | P.O. Box 857 | Woodville, MS 39669 601-888-4343 | 601-888-6469 (fax) | www.nettervillelumber.com

W W W. N H L A .CO M

CALENDAR

WH ERE IN THE WOR LD IS N H LA? 2015 IHLA Convention & Exposition

March 10-12 | Indianapolis, IN | Indianapolis Marriott Downtown Attending: John Hester, Director of Membership

The 17 Domotex Asia / ChinaFloor 2015 th

March 24-26 | Shanghai, China Attending: Dana Spessert, NHLA Chief Inspector

International Lumber Grading Short Course March 30-April 4 | Kuala Lumpur, Malaysia Instructor: Dana Spessert, NHLA Chief Inspector

NHLA Board Meeting

April 22-24 | Napa Valley, CA The Meritage Resort

NWFA 2015 Wood Flooring Expo & 30th Anniversary April 28-May 1 | St. Louis, MO Participating: John Hester, Director of Membership Renee Hornsby, Director of Communication

Hardwood Manufacturers Association National Conference & Expo March 25-27 | Nashville, TN Attending: Mark Barford, CAE, CEO

EDUCATION & TRAIN I NG 176th Class NHLA Inspector Training School

Kentucky Forest Industries Association 50th Annual Meeting

March 25-27 | Lexington, KY Attending: John Hester, Director of Membership

Memphis, TN | January 7-March 26 | NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com

Interzum Guangzhou

Flex-Day Lumber Grading Short Course

Franklin, PA | April 13-17 | Franklin Industrial & Commercial Park Instructor: Barry Kibbey, NHLA National Inspector Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com

March 28-April 1 | Guangzhou, China quarter page ad Dana 2014.pdf Spessert, 2/9/2015 8:19:23 AM Attending: NHLA Chief Inspector

Go from Picture to Tally in Seconds

Progressive Inspector Training School Program: Block 1

Memphis, TN | April 6 -18 | NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com

Flex-Day Lumber Grading Short Course

Memphis, TN | May 4-8 | NHLA Headquarters Instructor: Rich Hascher, NHLA Inspector Training School Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com C

177th Class NHLA Inspector Training School Summer Program

Reduce Costs and Increase Productivity

CMY

“PictureTally gives us an exact width on each board in a bundle; accurate tally information at our fingertips both on and off site”

--Fred Doane Northland Forest Products.

 Contact us at (603) 686-5533 sales@picturetally.com

Elkins, WV | June 1-August 6 | West Virginia Wood Tech Center Instructor: Rich Hascher, NHLA Inspector Training School Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com www.inspectortrainingschool.com

4-Day Lumber Grading Short Course

Millersburg, OH | June 8-11 | Yoder Lumber Co., Inc. Instructor: Barry Kibbey, NHLA National Inspector Contact: Gayla Fleming | 614-497-9580 | info@ohioforest.org

4-Day Lumber Grading Short Course

Elkins, WV | November 2-5 | West Virginia Wood Tech Center Instructor: Barry Kibbey, NHLA National Inspector Contact: Matt Wyatt | 304-637-7500 | matt@wvwoodtech.com For applications, a complete listing of events and more information please visit www.nhla.com/calendar.

M A R C H 2 0 1 5 H A R D W O O D M AT T E R S

W W W. N H L A .CO M

WE ARE YOUR SINGLE SOURCE SOLUTION. From domestic transportation to international logistics, we are driven to provide superior customer service and get your needs squared away quickly.

888.955.3547

DUNAVANT.COM