2016 March Hardwood Matters by National Hardwood Lumber Association

M a rc h 2 01 6

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

HOUSING & HARDWOOD 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

10 Memorials 10 Inside NHLA 12 Legislative Log 18 Rules Corner

READER SERVICES 6 President’s Message 8 CEO’s Message 22 Job Board 23 Calendar

12 14

Photo Courtesy of AHEC

IN THIS ISSUE 14 Housing and Hardwood

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

M A R C H 2 0 1 6 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 2016 ▪ Issue 165 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

Orn Gudmundsson Jr. Northland Corporation Unique Services

Brent Stief Huron Forest Products Vice President

Mark Mah UCS Forest Group Rules

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

Darwin Murray McClain Forest Products Structure

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

Nordeck Thompson Thompson Appalachian Hardwoods Membership & Networking

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

Mark A. Barford, CAE Chief Executive Officer m.barford@nhla.com Melissa Ellis Smith Graphic Designer m.ellis@nhla.com Renee Hornsby Director of Communications/Editor r.hornsby@nhla.com Kristina Thomas Marketing Relations k.thomas@nhla.com

■■■ Desirée Freeman Controller Rich Hascher Inspector Training School Instructor For advertising inquiries: Contact John Hester, Director of Membership at j.hester@nhla.com or 901-399-7558.

ADVERTISER INDEX 9

Brewco Inc.

DongGuan Sungem Wood Co., Ltd. 11

Rossi Group

Dunavant Global Logistics Group

Simply Computing International

King City/Northway Forwarding

TJT Consulting

UC Coatings Corporation

21 Pennsylvania & Indiana Lumbermens Mutual Insurance Companies

IFC

Pike Lumber Company, Inc.

19 USNR

John Hester Director of Membership Dana Spessert Chief Inspector

COMMITTEE CHAIRS Dave Bramlage Cole Hardwood Membership Dan Caldwell Atlanta Hardwood Corporation Hardwood Advocacy Kevin Gillette Tioga Hardwoods Convention Scott Heidler Heidler Hardwood Lumber Co. Nominating Steve Jones Ron Jones Hardwood Sales, Inc Inspection Services Darwin Murray McClain Forest Products Finance Bucky Pescaglia Missouri-Pacific Lumber Co., Inc. Inspector Training School Mike Powers Maley & Wertz Communications & Marketing Jim Reader Downes & Reader Hardwood Continuing Education/ Member Services Joe Snyder Fitzpatrick & Weller, Inc. Rules Brent Stief Huron Forest Products Strategic Planning

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

W W W. N H L A .CO M

Business Succession Planning Specialists

Shown Above: Nick Thompson, Operations Manager, TAH • Caroline Thompson • Laura Ann Howell, Sales & Marketing, TAH • Mary Claire Thompson, Executive Director, TAH, • Nordeck Thompson, President & CEO, TAH • N. Clifford Nelson, Director of Investments, TJT • David A. Jacobs, Business Development, TJT

For each client we serve, TJT strives to create financial stability and security towards a goal of financial independence.

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

W W W. N H L A .CO M

"My family has greatly benefited from working with The Jacobs Team. Dave and Cliff have done an excellent job helping us prepare for the next generation at Thompson Appalachian Hardwoods." Nordeck Thompson, President & CEO Thompson Appalachian Hardwood M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

PRESIDENT’S MESSAGE

DOES ASSOCIATION CONSOLIDATION IN THE HARDWOOD INDUSTRY MAKE SENSE? As of this writing we are more than half way through the winter and at the beginning of the “spring meeting cycle”. The Indiana Hardwood Lumber Association convention was held in early February, the Appalachian Hardwood Manufacturers, Inc. is meeting shortly in Florida, the Hardwood Manufactures Association Annual Convention will be held early March in Fort Worth, Texas, the International Wood Products Association will hold its meeting in Austin, Texas in early April and our own NHLA board of managers meeting will be held in late April as well. There are a lot of associations in the hardwood lumber business and a lot of stakeholders that belong to many, if not all, of these associations. From where I sit, I find it very interesting that the industry associations have not succumbed to the same pressures of consolidation that many NHLA members have been subject to. The interesting question is does it make sense to consolidate any of the associations? I believe that an argument can be made for consolidation. The reasons I believe that consolidation is a reasonable outcome to consider is the following: • The hardwood lumber business is a small community and the multiple associations are redundant. • The core group of volunteers that lead our associations tend to crop up at most of the different associations. There is some diversity but it does seem that the same companies and the same participants tend to hold leadership positions at most of the associations. • Consolidating the various associations will lead to a reduction in expenses to belong to associations and to attend association meetings. • Consolidation should lead to fewer demands on participants’ calendars. • If consolidation occurs there will be greater networking opportunities at the meetings attended, i.e., more bang for the buck that result in greater commercial opportunities. The challenges with consolidation are as follows: • Each association has its own culture with its own unique goals. • Many of us are passionate about our associations and fear that consolidation will lead to different outcomes with folks from the other side! • Change is hard With multiple hardwood associations that exist in a stable mature industry that is not growing, what are the opportunities to take a first step? I think that a reasonable step to move towards consolidation is for multiple associations to consider holding their respective meetings at one site during the same week. I am not sure if this can work. I do think that it will save members with their travel budgets. I also think that it will save associations with their convention budgets and give participants a larger networking and learning opportunity.

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

The interesting question is does it make sense to consolidate any of the associations? I believe that an argument can be made for consolidation. At the end of the day I am not sure if consolidation is possible but I do think it is worthwhile to at least have a conversation about it. Thanks again for the privilege of serving as your President!

Pem Jenkins, NHLA President Turn Bull Lumber Company

W W W. N H L A .CO M

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

CEO’S MESSAGE

MY LIFE'S GOAL (The following comments were made by Mark Barford at the Indiana Hardwood Lumbermen’s Association Convention & Exposition; where he was recognized for his 40 years of service to the hardwood lumber industry) Forty-five years ago, as the youngest son of a minister, I went to forestry school to stop the harvesting of trees that I thought we were running out of. In college the truth became clear, the best way to protect a forest is to manage it, and the best way to encourage owners to manage their land is to add value. In other words, I learned the best way to protect the forest was by ensuring a strong and successful lumber business—this became my life’s goal. My journey began with various forestry positions: timber buyer, forest manager and logger. I volunteered for several associations and learned that there was a strong need for passionate leadership in these organizations. I saw great similarities between a church preacher and an association executive and I found my calling. I have worked for five different associations over my 35 years, capped off by running the largest and greatest hardwood association in the world, the National Hardwood Lumber Association. I will leave NHLA this spring, after nearly 10 years of service, in great condition. In 2015, we had more than 1,000 people at the convention in Nashville, graduated 25 students from the most recent Inspector Training School program, had more than 400 attendees to various lumber grading short courses, maintained 7 busy field personnel, and put money back in reserves for the next rainy day. But maybe the most important legacy I leave to NHLA is a great team of employees. With me today is three-quarters of the management team, Director of Communications Renee Hornsby, Director of Membership John Hester and Chief Inspector Dana Spessert while Controller Desiree Freeman is holding down the fort in Memphis. Also at the table is one of our highly capable NHLA National Inspectors Barry Kibbey and Executive Director of the Hardwood Forest Foundation Crystal Oldham. Management Guru Peter Drucker teaches there is a difference between “efficient” managers and “effective” managers. Efficiency is doing things right . . . effectiveness is doing the right thing. I hope, for my work at NHLA, that I will be remembered as an effective leader. Thank you to Ray Moistner and the entire membership of IHLA for this honor and thank you to NHLA for the opportunity to lead the greatest hardwood association in the world. My greatest thanks goes to the hardwood lumber industry for allowing an outsider like me to come in and be accepted as part of the family.

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

I hope, for my work at NHLA, that I will be remembered as an effective leader.

Mark Barford, has served as the Executive Director/CEO at NHLA since 2006 and is retiring this spring when a replacement is found.

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

W W W. N H L A .CO M

YOU CAN’T SURVIVE WITH THIS...

BUT YOU CAN THRIVE WITH THIS.

Cut with Circle Saw with .3125” Kerf

Cut with Bandsaw with .082” Kerf

Total # of boards: 15

Total # of boards: 19

Total Board Feet: 132.2

Total Board Feet: 158.25

% Overrun of Doyle Scale: 12.8%

% Overrun of Doyle Scale: 35%

BREWCO B-1600... 19.8% YIELD INCREASE Log diagram demonstrating actual yield savings of a B-1600 resaw system compared to a standard circle saw operation. This is based on a 16½” diameter log 12' long having a Doyle Scale of 117.2 BF.

MADE IN AMERICA

www.brewcoinc.com 607 Front St. • Central City, KY 42330 W W W. N H L A .CO M

800.237.6880

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

MEMORIALS

IN MEMORIUM: CHARLES HARRIS MICHLER, JR. Charles Harris Michler, Jr., age 59, died January 19 at his home from the effects of a brain tumor. He was the son of Jane Blount Michler and the late Charles Harris Michler, and was preceded in death by his beloved wife, Karen Temple Michler. He attended the University of Kentucky, and earned B.S., M.S., and Ph.D. degrees in horticulture from The Ohio State University, with specialties in plant physiology and biochemistry. He retired earlier this month after 30 years with the USDA Forest Service, serving the latter years as Program Manager, Director of the Hardwood Tree Improvement and Regeneration Center (HTIRC) and the Tropical HTIRC, and as an Adjunct Professor of Forestry at Purdue University. A celebration of his life was held on Saturday, January 23, 2016. Expressions of sympathy are suggested to Purdue Foundation (with memo note: Michler Graduate Endowment), Agriculture Development, Purdue University, 715 W. State Street, West Lafayette, IN 47907. You may sign the guest book and leave memories at www.soller-baker.com.

March is Home Remodeling Month INSIDE NHLA

MEMBERSHIP DIRECTORY APP LAUNCHES THIS MONTH New for 2016, the NHLA Buyers Guide book will no longer be printed. In its place is the NHLA Membership App. The App is for your desktop computer, tablet or mobile device. The App lists all members alphabetically, by state and by service. The App is updated monthly and provides interactive email and web links and one-click calling. NHLA members will be provided a link and password to access the App once it is ready for GO LIVE. Advertising opportunities are available. Please contact John Hester, Director of Membership at j.hester@nhla.com or call 901-399-7558 for advertising information.

BOX Giveaway Enter to WIN by following these 3 simple steps: • Follow us on Facebook www.facebook.com/nhlaofficial • Click the giveaway tab underneath our cover photo • Follow the prompts and you’re in the running to WIN! The winner will be announced on the last Friday of each month. Good luck!

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

W W W. N H L A .CO M

Solutions

Middlesex Corporate Center 213 Court Street | Middletown, CT | 06457 6th Floor | Suite 603

W W W. N H L A .CO M

Ph 860.632.3505 Fax 860.613.3727 www.rossigroup.net

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

LEGISLATIVE LOG

THE TRANSPACIFIC PARTNERSHIP: What's in it for Hardwood? By Dana Cole, Executive Director Hardwood Federation

The Trans Pacific Partnership or TPP is a much discussed and contentious topic in Washington D.C. It is also a hotly debated issue for business and labor interests beyond the beltway. The Hardwood Federation has been following the TPP debate over the last year and will continue to do so in 2016 as it winds its way through the next series of debates. The current status of the TPP and the challenges it faces going forward is below. In the fourth quarter 2015, twelve Pacific Rim countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam) concluded nearly eight-year long negotiations on the TPP. The TPP is the largest regional trade agreement in history, combining a market of nearly 800 million people and constituting 40% of the world GDP. The agreement is broad in its scope, covering more than 5,000 pages organized into 30 separate chapters, various annexes, national tariff schedules and many side letters. The TPP represents an important framework for trade and commerce in the region. For a number of developing countries, particularly Vietnam, the TPP has the potential to act as a key policy driver for structural reform and economic liberalization. The formal signing of the TPP Agreement by trade ministers now is scheduled for early February 2016. Following the formal signing ceremony, the TPP will need to go through the ratification process and be approved by the U.S. Congress and the legislatures of the other TPP countries before it becomes final. This is expected to take some time and it is by no means certain that the needed approval will be granted. Even if the U.S. Congress approves the TPP sometime in 2016, it will not go into effect until a critical mass of TPP countries approves as well. The question all business sectors are asking is, “How does the TPP impact us?” For the hardwood industry there are several considerations including: • MARKET ACCESS: In 2014, U.S. exports of forest products – wood and wood products, wood pulp and paper, paperboard and converted products – to all TPP countries amounted to $15.4 billion, representing about half of the industry’s global exports. The U.S. already has free trade agreements with Australia, Canada, Chile, Mexico, Peru and Singapore so paper and wood 12

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

products already enter these countries duty free or are being phased out. The potential commercial benefit to the U.S. forest products industry will come primarily from the elimination of tariffs on paper and wood products by Malaysia and Vietnam and the elimination of wood tariffs by Japan and New Zealand. U.S. exports of forest products facing barriers in these ‘new’ markets amounted to $1.2 billion in 2014, of which wood products comprise $1.1 billion. U.S. tariffs on wood products from these TPP countries will also be phased out. Commercially, U.S. exporters will have to compete with other TPP forest products industries (e.g., Canada), but they will now have an advantage over competitors from outside of the TPP region (e.g., China, the European Union and Russia). Also, the comprehensive nature of TPP, with tariff elimination for almost 100 percent of traded goods, is expected to facilitate trade and investment across the region and to stimulate economic activity. Indirectly, this should boost demand for wood products, and generate additional commercial opportunities for U.S. producers both in domestic and export markets. • ENVIRONMENT: As we know, Illegal logging is a major issue in a number of TPP countries, especially Malaysia, Vietnam and Peru. The TPP builds on the U.S.-Peru FTA with its provisions aiming to protect forests and fighting against illegal logging and trade in illegally sourced timber. TPP Parties agree to: • Effectively enforce their environmental laws and not to weaken environmental laws in order to encourage trade or investment. • Fulfill their obligations under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), which regulates trade in many tropical timber species. W W W. N H L A .CO M

• Take measures to combat and cooperate to prevent trade in wild fauna and flora (i.e., forest products) that has been taken illegally. • Promote sustainable forest management, and to protect and conserve wild fauna and flora that they have identified as being at risk in their territories, including through measures to conserve the ecological integrity of specially protected natural areas, such as wetlands. OUTLOOK FOR 2016: Much work remains before Congress will be in a position to consider and vote on the TPP. Senate Finance Committee Chairman Hatch has listed many serious concerns with the agreement both on substance and on process. He and his staff have publically said that the agreement does not follow many important provisions of the recently passed Trade Promotion Authority (TPA) legislation, and therefore runs counter to Congressional directives. The Chairman is most concerned with the intellectual property provisions, particularly as they pertain to pharmaceuticals. Additional concerns to be addressed include the carve-out of anti-tobacco measures from investor-state dispute settlement, and the fact that language prohibiting governments from requiring data be stored on local servers does not apply to the financial services sector. Chairman Hatch has also expressed disappointment with the labor provisions

which he says are unprecedented. Unions have also expressed serious concerns that the agreement will effectively transfer U.S. jobs overseas, another issue that must be dealt with before final passage. Under the provisions of TPA, the earliest Congress could consider the TPP would be March. However, that is highly unlikely. Members of Congress have very little interest in voting on a potentially controversial and politically charged trade agreement so close to the 2016 elections. The post-election lame duck session is a possible window for consideration. It looks as if much of 2016 will see in-depth discussions and negotiations between Congressional leaders and the Administration on how to “fix” the problems Hatch and others have with the agreement, without actually opening up the agreement itself. These can be done via side agreements, MOUs, implementation tools, etc. The Committee will hold hearings on the agreement in early-mid 2016 as well. The Hardwood Federation will continue to follow the TPP’s progress with an eye for both positive and negative impacts on the industry. As always, thank you for your interest and support . . . and please don’t hesitate to contact us with your thoughts!

In 2014, U.S. exports of forest products – wood and wood products, wood pulp and paper, paperboard and converted products – to all TPP countries amounted to $15.4 billion, representing about half of the industry’s global exports. W W W. N H L A .CO M

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

Housing and Hardwood

he December 2015 housing data for the U.S. was a mixed bag according to the Virginia Tech monthly housing report by Urs Buehlmann and Al Schuler. Total housing starts were down 2.5% month over month, with the important single-family starts down by 3.3% and new housing permits down by 3.9 percent.

However, housing completions were up by 5.6% month over month and existing home sales were up by 14.7% from Novemberâ&#x20AC;&#x2122;s data. As of December 2015, first time homebuyers are still at 32% well below the more typical 40% and overall household formation remains below trend. Multi-family housing is still strong with 34% of total and rental pricing is still increasing, thereby further strengthening the importance of multi-family construction. And according to a W W W. N H L A .CO M

study by the Urban Institute, rental demand may continue to increase for some time – another decade or two. According to the Urban Institute, rental demand will likely continue to increase due to demographics, a growing minority population, student debt and weak income growth. This study estimates that minorities will make up 75% of net household growth over the next 10 years, and 85% during 2020- 2030. Minorities are less likely to own homes (lower income is the main reason) so home ownership will continue to fall toward 60% by 2030. During this time, rental demand will increase. Although this is just one study, it provides food for thought. Buehlmann and Schuler pose one potential question with the study by the Urban Institute. Other studies show that although immigrants, for example rent initially, over time they purchase homes at a rate equal to or higher than native-born Americans. Why? People come to the U.S. to improve quality of life, and for most, this means homeownership. This suggests that the U.S. has to find solutions to immigration issues like “illegal immigration” while encouraging legal immigration. Immigrants seeking a better life founded this country and they are key to its future. At the same time, incomes for all minorities have to improve if home ownership is to return to the “good old days” Furthering the report from Virginia Tech is the latest Residential Remodeling Index (RRI) by Metrostudy that indicates a nationwide continued slow and steady growth pattern in remodeling and replacement activity. The latest update to RRI calculates that the economic conditions known to lead to remodeling work were 5.4% better than in the fourth quarter of 2014 and 0.9% above where things stood in the third quarter of last year. The RRI hasn’t shown a year-over-year decline since the first three months of 2012 and a quarter-to-quarter decline since the fall of 2011. Metrostudy predicts future W W W. N H L A .CO M

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

quarters to 2018 will post year-over-year gains ranging from 2.0% to 4.1%, while quarter-to-quarter rises will range from 0.5% to 0.9%. “Remodeling activity remains on solid footing, with the big driver being the existing home market,” Brad Hunter, Metrostudy’s chief economist, said in a statement. “Sales of previously owned homes in 2015 were the highest since 2006, and with low supply, home prices continue to trend upward. Increasing home values are bringing more homes on the market and spurring remodeling and replacement– before and after a sale. Another remodeling spark is the conversion of unsold singlefamily houses to renter-occupied. According to the Joint Center for Housing Studies (JCHS) since 2006, the number of singlefamily detached homes occupied by renters has increased by a third, from 9 million to over 12 million…and now accounts for 29 percent of all rental housing.

DIY WITH WOOD PALLETS Spring into spring-cleaning this month with the help of wood pallets. For many people, springcleaning means more than just the annual household wipe down; it can also mean organizing the clutter or upgrading furniture. Wood pallets are one of the easiest and least expensive (or free!) materials to get your hands on. Create something truly unique and functional for your home or backyard patio using inspiration from these wood pallet projects.

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

Disclaimer: images compliments of designrulz.com

W W W. N H L A .CO M

LIRA, the Leading Indicator of Remodeling Activity produced by the Joint Center for Housing Studies at Harvard University is projecting that annual spending growth for home improvements will accelerate to 4.0% by the first quarter of 2016. And according to the JCHS each demographic will continue to bring something to the remodeling table. Spending on home improvement activity peaks among owners in their mid-30s to mid-50s, a time when family sizes and household incomes are typically growing. In 2013, owners in this age range spent about 30 percent more on average on improvement projects than the rest of the population. The fact that most of the baby-boomer generation (born 1945–64) was in this high-spending age group during the housing boom no doubt contributed to the record levels of home improvement expenditures in the middle of the last decade. While baby boomers are moving out of the prime home improvement spending years, they are still active in the market. Meanwhile most gen-X homeowners (born 1965-1984) are now in their prime spending years. Although this generation originally numbered almost 10 million (12 percent) less than the baby boomers, years of strong immigration filled its ranks. By the time they were 20–39 years old in 2005, the number of gen-Xers thus equaled that of the baby boomers at comparable ages. In 2013, gen-Xers contributed over a third of home improvement outlays, with the leading edge alone accounting for over 20 percent.

All of this data points to continued growth for housing & home remodeling and good news for the hardwood industry. Looks like the millennial generation will be the key to strong growth in the remodeling and single-family housing market for decades to come.

Much of the millennial generation (born 1985–2004), in contrast, has yet to enter the housing market. Once the millennials begin to catch up with the gen-Xers in terms of progress in the housing market, however, their sheer numbers alone will drive up improvement spending. At more than 79 million births between 1985 and 2004, the number of native-born members of the millennial generation already equals the number of births of the baby-boom generation. By 2025, when millennials are more fully engaged in the housing market, immigration is expected to have increased their numbers to more than 86 million. This will make the millennial generation almost 7 percent larger than the baby-boomer generation at comparable ages.

You Bring THE WOOD...

ANCHORSEAL

While baby boomers are moving out of the prime home improvement spending years, they are still active in the market. Meanwhile most gen-X homeowners (born 1965-1984) are now in their prime spending years.

We’ll Bring THE PROTECTION

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

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

W W W. N H L A .CO M

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

RULES CORNER

SCANT BOARDS IN THE SHIPMENT OF KILN DRIED LUMBER By Dana Spessert, NHLA Chief Inspector

As NHLA continues to educate the world on the grading Rules for North American hardwood lumber, I realize that the more mature international markets have needs that NHLA has omitted from its lumber grading presentations. In order to simplify the Rules for the masses, a few critical items in my opinion, have been excluded. In this month’s Rules Corner, I am going to discuss a couple of these omissions. When NHLA originally started teaching the hardwood lumber grading Rules around the world they started simple, explaining the very basic concepts of the grading system but in what I believe was a slight oversight is the fact that very little green or air dried lumber is exported, the majority is kiln dried lumber. I have heard a few grumblings, while conducting international

lumber grading seminars when boards, on occasion, are allowed to be under the minimum width. The grumblings ultimately arise when inspecting F1F and Better and a board is 5 ½” wide, just after I have explained that the board must be 6” x 8’ minimum to meet the FAS requirement. I then explain to seminar attendees about the two areas of the NHLA Rules that cover this type of width variance. The first Rule that applies to this is located in paragraph 10 of the 2015 NHLA Rules Book.

20 YEARS VOICE EXPERIENCE LOG SCALING PRO

LUMBER INVENTORY

Voice Data Collection Handheld Batch Collection Pile Inventory / Tagged Logs Contract Payments Multiple Species, Log Rules, Yards Bar-coding

Bar-code Inventory Tracking Order Tracking Bill of Lading Invoicing Shipping Scheduling Wireless Real Time Data

WOOD BROKERAGE

d/b/a Voice Controlled Solutions

By Products Inventory Pile Management Automated Weight Scale Interface Accounting Interface

Offices in Maine & Ohio

Call for a Free Onsite Demo! Hardware Sales & Services / Network & Adminstration / Customized Software Development www.simplycomputing.com / 800-903-4122 / info@simplycomputing.com

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

W W W. N H L A .CO M

“Ninety percent of the minimum widths mentioned in all grades of lumber shall be full width; the remaining ten percent may be up to 1/4” scant in width. This rule also applies to each stock width and to any specified width.”

I realize that the more mature international markets have needs that NHLA has omitted from its lumber grading presentations.

The Rule actually applies to green or air-dried as well as kiln dried lumber. An example of this Rule is in the Standard Grade of FAS, for every 9 boards that are 6” wide, you may have 1 board that is 5 ¾” wide for a total of 10 boards. The other Rule that applies to minimum widths is the Standard Kiln Dried Rule. On page 56 of the 2015 version of the NHLA Rules Book, it states: “Kiln dried lumber will be graded and measured as such, the grading rules for air dried lumber to be applied in all respects, unless otherwise specified. Rough kiln dried lumber specified 3/8” to 1-3/4” thick may be 1/16” scant of the nominal thickness; 2” and thicker may be 1/8” scant and the 10% of scant quartered lumber admitted by Paragraph 36, may be 3/32” scant on one edge in 1” to 1-1/2” lumber and 3/16” on one edge in 2” and thicker. The minimum widths mentioned in all grades may be 1/4” scant in width and the 10% admitted by Paragraph 10 may be 1/2” scant in width. In other respects the rules for grading air dried lumber shall apply.” The last sentence in this Rule states that the minimum widths mentioned in all grades may be ¼” scant in width, with the paragraph 10 Rule also included that would allow for the occasional ½” scant board. I hope this helps explain why an occasional ½” scant board is included in the shipment of kiln dried lumber. If anyone has any questions, please feel free to contact Chief Inspector Dana Spessert at d.spessert@nhla.com or call 901-399-7551. W W W. N H L A .CO M

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

JOIN OUR LUMBER PARTY WE SUPPORT EVERY SIDE Managing domestic and international logistics from beginning to end, delivered with superior customer service.

DUNAVANT.COM

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

888.955.3547

W W W. N H L A .CO M

WHAT MAKES MUTUAL INSURANCE A BETTER CHOICE FOR BUSINESS OWNERS? FOR STARTERS, THERE ARE NO SHAREHOLDERS – SO THAT MEANS WE PUT THE NEEDS OF OUR POLICYHOLDERS FIRST. And that results in better service… suggesting ways to minimize risk… settling claims more fairly and quickly. No wonder business owners large and small choose mutual insurance. With PLM/ILM, you get an established MUTUAL insurance company that specializes in the lumber, woodworking and building material industries. We understand your business, your needs and your values. Other benefits of working with PLM/ILM: • Focused on the lumber, woodworking and building material industries since 1895 • Risk Management and Loss Control Specialists on staff help reduce your chance of loss • Enhanced products that provide unique, comprehensive coverage • Open brokerage – we can work with your local agent or broker of your choice • Financially strong – we carry an A- (Excellent) rating from A.M. Best, the industry leader in the independent rating of insurance carriers Become a part of something bigger. Become a member of a mutual.

PENNSYLVANIA LUMBERMENS MUTUAL INSURANCE COMPANY INDIANA LUMBERMENS MUTUAL INSURANCE COMPANY MAIN 800.752.1895

W W W. N H L A .CO M

WEB WWW.PLMILM.COM

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S

JOB BOARD

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

LUMBER INSPECTOR

Cersosimo Lumber Co. is seeking an NHLA certified lumber inspector with 2-3 years of experience, preferred. The salary is commensurate with experience. The inspector will work in a heated, modern sawmill and KD grading facility. Steady year-round work with benefits including 401k, vacation and holidays. To apply send resume to employment@cersosimo.com Cersosimo Lumber Co. 1103 Vernon Street | Brattleboro, VT 05301 Phone: 802-254-4508 | Fax: 802-451-7651 www.cersosimo.com

PRODUCTION MANAGER

Brownlee Lumber of Brookville, PA. a leader in the manufacture of premium quality hardwood products, is seeking a Production Manager to join the great team at our expanding facility. Qualified candidates will assume responsibility for production management at a 9 million board foot per year hardwood sawmill and 5 a million board foot per year kiln drying facility. A minimum of five years of relevant management experience with a hardwood sawmill or a dry kiln facility is required. Duties involve hands-on oversight of sawmill, dry kilns, grading lines, shipping department, etc. Candidates must possess a strong work ethic and leadership ability along with ability to proactively manage manufacturing processes and outcomes. A minimum of 5+ years of relevant management experience with a hardwood sawmill or a dry kiln facility is required. Competitive salary based on experience and qualifications. Qualified candidates may mail a cover letter & resume to 2652 Hazen Richardsville Rd., Brookville, PA 15825 or send via email to dan@brownleelumber.com Brownlee Lumber Co. Inc. 2652 Hazen Richardsville Rd. | Brookville, PA 15825 Phone: 814-328-2991 | Fax: 814-328-2422 www.brownleelumber.com

SAWYER

James Grezenski Forest Products Inc. desires an experienced sawyer for their Stevens Point location. Applicants will be responsible for operation of the carriage. Applicants must have experience and knowledge in this field. This is a full-time position offering benefits and a competitive salary package. To apply please call 715-344-0878 and/or email resume to bgrezenski@grezenskiforestproducts.com James Grezenski Forest Products Inc. 3158 County Road X North | Stevens Point, WI 54482 Phone: 715-344-0878 | Fax: 715-344-1470

M aArRcChH2 02 01 61 6HHAAR RDDWWOOOODDMMAT ATT TE ER RS S

LUMBER INSPECTOR

James Grezenski Forest Products Inc. is seeking an experienced lumber inspector. Applicants must have experience in lumber inspection and the NHLA grading Rules. Applicants must have a high school diploma. This is a full-time position offering benefits and a competitive salary package. To apply please call 715-344-0878 and/or email resume to bgrezenski@grezenskiforestproducts.com James Grezenski Forest Products Inc. 3158 County Road X North | Stevens Point, WI 54482 Phone: 715-344-0878 | Fax: 715-344-1470

LUMBER INSPECTOR

Blandy Hardwoods has an opening for a lumber inspector of kiln dried lumber. Salary is dependent upon experience. To apply call Lee Frick 704-2021028 or send resume by email to: kingmackoib@yahoo.com Blandy Hardwoods Gold Hill, NC 28071 | Phone: 704-279-8320

BOILER OPERATOR

Ohio International Lumber LLC is seeking a Boiler Operator for the daily operation of a high pressure boiler. The Boiler Operator will operate boiler and equipment, read gauges, meters, and charts to track boiler operations and monitor boiler water, air and fuel in boilers. Three to five years of experience is required. Salary is dependent on experience. To apply send resume to ajenkins_oil@frontier.com Ohio International Lumber LLC 423 Hopewell Rd | Waverly, OH 45690 Phone: 740-941-1300 | Fax: 740-941-1333

LUMBER INSPECTOR

Ohio International Lumber LLC is seeking a lumber inspector to inspect and grade rough sawed lumber according to the NHLA standards. The Lumber Inspector examines lumber on tables, moving belts, chain conveyor racks or defects. Will grade lumber to ensure specified dimensions and mark lumber to indicate grade. Will tally lumber according to grade and board footage. Three to five years of experience is required. Salary is dependent on experience. To apply send resume to ajenkins_oil@frontier.com Ohio International Lumber LLC 423 Hopewell Rd | Waverly, OH 45690 Phone: 740-941-1300 | Fax: 740-941-1333

W W W. N H L A .CO M

CALENDAR

WH ERE IN THE WOR LD IS N H LA?

EDUCATION & TRAIN I NG

Interzum

1 Day Kiln Drying Class Short Course

March 28 -April 1 | Guangzhou, China Attending Dana Spessert, Chief Inspector

IWPA World of Wood Convention

Memphis, TN | March 1 | NHLA Headquarters Instructor: Adam Taylor, Associate Professor and Wood Products Extension Specialist at the University of Tenessee Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com

April 5-8 | Austin,TX Attending John Hester, Director of Membership

1 Day Log Grading Short Course

NHLA Board of Managers Meeting April 18-20 | Charleston, SC Belmond Charleston Place

Memphis, TN | March 2 | NHLA Headquarters Instructor: Adam Taylor, Associate Professor and Wood Products Extension Specialist at the University of Tenessee Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com

5 Day Lumber Grading Short Course

NWFA 2016 Wood Flooring Expo April 27-30 | Charlotte, NC Participating John Hester, Director of Membership and Renee Hornsby, Director of Communications

Morehead, KY | March 7-11 Maysville Community and Technical College (Rowan Campus) Instructor: Benji Richards, NHLA National Inspector Contact: Lorrina White | 606-356-2100 | lorrina.white@kctcs.edu

Inspector Training School Progressive Program: Block 3

EXPO Richmond May 13-14 | Sandston, VA Participating John Hester, Director of Membership and Renee Hornsby, Director of Communications

Memphis, TN | March 7-24 | NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com To enroll visit: www.nhla.com/school

The International Woodworking Fair (IWF)

Inspector Training School Progressive Program: Block 1

August 24-27 | Atlanta, GA Participating John Hester, Director of Membership and Renee Hornsby, Director of Communications

Memphis, TN | April 4-15 | NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com To enroll visit: www.nhla.com/school

Flex Day Lumber Grading Short Course

Memphis, TN | April 25-29 | NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com

INDUSTRY EVENTS Hardwood Manufacturers Association National Conference & Expo

Inspector Training School 180th Class

March 9-11 | Fort Worth, Texas The Worthington Renaissance

Antigo, WI | May 16 – July 22 | NorthCentral Technical College Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com To enroll visit: www.nhla.com/school

Montreal Wood Convention March 22 -24 | Montreal, Canada

4-Day Lumber Grading Short Course

For applications, a complete listing of events and more information please visit www.nhla.com/calendar.

Millersburg, OH | June 6-9 | Yoder Lumber Co., Inc. Instructor: Barry Kibbey, NHLA National Inspector Contact: Gayla Fleming | 614-497-9580 | info@ohioforest.org

Flex-Day Lumber Grading Short Course

Memphis, TN | July 25-29 | NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com W W W. N H L A .CO M

M A R C H 2 0 1 6 H A R D W O O D M AT T E R S