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C ongratulations
TO THE FIRST GRADUATES OF THE ITS PROGRESSIVE PROGRAM
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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DEPARTMENTS 14 16 18
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Member To Member Legislative Log Rules Corner
READER SERVICES 6 President’s Message 8 CEO’s Message 10 Inside NHLA 20 Job Board 22 Calendar
Photo Courtesy of AHEC
IN THIS ISSUE 12 NHLA Inspector Training School Hits a Milestone
CONTENTS W W W. N H L A .CO M
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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;
May 2015 ▪ Issue 156 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 are our first graduates of the Inspector Training School Progessive Program.
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
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Dunavant Global Logistics Group
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Picture Tally
IBC
eLIMBS, LLC
IFC
Pike Lumber Company, Inc.
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NYLE Systems, Inc.
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The Jacobs Team
BC
NHLA Annual Convention
21
UC Coatings Corporation
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NHLA Inspector Training School
11 USNR
5 Pennsylvania & Indiana Lumbermens Mutual Insurance Companies
Dana Spessert Chief Inspector
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
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PRESIDENT’S MESSAGE
CHANGE IS INEVITABLE One of my favorite truths with a tale is that “the world turns one degree every four minutes whether you do or not”! As I write this letter, I am on a trip with my eighty-six year old father to a place that he has traveled to for the last twenty-five years. Yesterday, he said something notably to me, and I quote “the older I get the more I realize that no matter what you do change is inevitable”. The point of all this is I want to share with you one way your association is changing to meet the needs of a new world where we are all very busy, we are all connected twenty-four seven and the needs of our industry are changing. I am talking specifically about the ITS Progressive Program. The Progressive Program is a program that the National Hardwood Lumber Association (NHLA) has instituted to train lumber inspectors in a world that is connected to the web. The program brings students to NHLA headquarters for two weeks of onsite training. It then sends them home to get “on the job training”, so to speak or go back to their regular jobs. At the same time the students are completing the online portion of the course to understand the grading Rules. After successfully completing the online portion, the student then returns to NHLA headquarters for two more weeks of onsite training and a “final inspection test”. This is a great way to train our employees when it is not feasible to send them to a twelve-week course and I encourage each of you to consider this educational option. I also want to take this opportunity to point out that we are all very fortunate to have people in our industry that care enough about what we do and the Association that they are tweaking this program to make it even better for all of us. I am specifically talking about Skip Holmes of Thomas & Proetz Lumber Co. and Jim Steen of Pike Lumber Co., Both Skip and Jim serve on the NHLA board of managers and have investigated the first Progressive Program and initiated “tweaks” to make it better. All of us in the hardwood lumber industry are fortunate to have people like Skip and Jim who are willing to give back and committed to improving what the Association is doing. This clearly reflects the vision and mission of NHLA as stated below: The Vision of NHLA: To be the Global Standard for Hardwood Trade and Commerce The Mission of NHLA: To serve NHLA Members engaged in the commerce of North American hardwood lumber by: maintaining order, structure and ethics in the changing global hardwood marketplace; providing unique member services; promoting North American hardwood lumber and advocating the interest of the hardwood community in public private policy issues; and providing a platform for networking opportunities.
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The ITS Progressive Program does all these things and in my opinion is a clear representation that NHLA is changing to meet the needs of the industry. involved, please contact me or any other board member that you know. I will close with the fact that the world turns one degree every four minutes. It is up to all of us whether we want to accept this reality and change accordingly. The “Progressive Course” is just one area that I believe your Association is doing this.
The ITS Progressive Program does all these things and in my opinion is a clear representation that NHLA is changing to meet the needs of the industry. In closing, change is inevitable. The key is what decisions do we all need to make to meet the challenges of change that are inevitable. A close friend of mine once told me that “change will happen and with this change there will be people or organizations that will fail, there will be some that survive and there will be some that thrive.” Given this, what decisions need to be made to insure that we are one of those institutions that thrive?
Thank you for the privilege of serving as your President,
I believe that NHLA and the board are making those decisions and the Progressive Program is a great example of the changes being implemented. If you either disagree or want to get
Pem Jenkins, NHLA President Turn Bull Lumber Company
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CEO’S MESSAGE
WHERE IS THE INDUSTRY WHEN DEALING WITH OUR LARGEST MARKET FOR NORTH AMERICAN HARDWOODS? Two years ago, NHLA hired Marco Chan to lead a class entitled “Doing Business in China,” and we immediately put a cap on attendance because we knew with the growing importance of the exploding Chinese market we would fill the room – about a dozen people were in attendance. Then last year we invited Mr. Chan to come to our convention to lead a session on dealing with the Chinese and understanding Chinese culture – about one third of the convention attendees showed up. This year, NHLA has put together a truly one of a kind trip to China to learn first-hand about the country and to meet informally with most of the major players and as of this writing we have 10 people registered for the trip. My question is…”What is the industry thinking?” Marco Chan is accompanying us on the trip to China, and his background is impressive having developed the China market for FedEx Corporation based here in Memphis. Dr. Bob Smith, a Forest Products Marketing Specialist from the Department of Wood Science and Forest Products at Virginia Tech will also be joining the group. In addition, NHLA will be providing a large group of experienced staff including John Wang who is based in China along with Chief Inspector Dana Spessert who travels overseas about 10 weeks out of the year. The itinerary includes significant time with the experienced AHEC staff including their Executive Director Mike Snow, and Hong Kong based John Chan who has been an NHLA advocate for the past 25 years. What a special group we have assembled to make this a useful and informative trip. So where are you? By now you probably know both the current importance and future potential of the Chinese market to North American hardwoods. Just as a reminder, with half of our grade hardwood now going overseas and half of that going to China, they are far and away the single largest consumer of our product. When asked, “Where is the next China market?” Mike Snow gave a simple answer – in China. There are still vast areas of the country yet to use North American hardwoods and the potential is scary big. The Chinese love North American hardwood and they are using the vast majority for their own markets. Even if you don’t currently sell directly or indirectly to this behemoth market, you are affected by it. Where it is going is crucial to your being in business 5, 10 or 50 years from now. Why not come and learn? Better yet, why not send that next generation of hardwood lumbermen? We are so pleased to finally see the next generation taking a strong interest in coming into the business. The people signed up so far are a good mix of experienced lumbermen and newcomers to the industry. This is a great chance to meet these new folks and make new friends in the industry. What I wouldn’t have done for an opportunity like this back in the 1990’s when I first started travelling to China. This is truly an awesome opportunity you don’t want to miss!
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The Chinese love North American hardwood and they are using the vast majority for their own markets. Ok, I will get off my soapbox and submit that there are probably a dozen reasons not to go to China or send the next generation of leaders. I have heard many of them over the past month of meetings. All I ask as your humble servant is for you to at least consider it again. It likely will be an opportunity not to be repeated. I hope to see you in China.
Mark Barford, CAE, Chief Executive Officer 901-377-1082 direct | m.barford@nhla.com
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Are you looking to begin a career, ready to advance an existing career within the hardwood industry or aspiring to change careers? The Inspector Training School can provide the knowledge and training you need to succeed.
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Contact NHLA for more details or visit www.inspectortrainingschool.com. National Hardwood Lumber Association Becky Miller 901.399.7569 | b.miller@nhla.com
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INSIDE NHLA
NORTHWEST HARDWOODS ANNOUNCES TWO PURCHASES Northwest Hardwoods (NWH) President & CEO TJ Rosengarth recently announced the purchase of two companies by NWH. The first was the acquisition of seven mill facilities previously operated by Industrial Timber and Land (ITL) with $200 million in revenues. The second, two mill facilities formerly operated by Fitzgerald Lumber Co. in Virginia with $25 million in revenues. Mr. Rosengarth currently serves on the NHLA Board of Managers.
BARFORD TALKS ABOUT THE FUTURE OF NORTH AMERICAN HARDWOODS NHLA CEO Mark Barford recently spoke at two separate industry events. The first was the annual gathering of the National Wooden Pallet and Container Association which drew a record crowd of more than 500 attendees to Tucson, Arizona. The second event was the annual worldwide convention of the International Wood Products Association held in Las Vegas with 250 people in attendance. Both groups were told of the recent upswings in demand for hardwood over the past year as worldwide demand has increased. That positive news was balanced by a recent pull back in the markets that many see as temporary. Barford gave an historical overview and expressed confidence that the future looks bright and optimistic for the industry.
"We always look forward to meeting with and talking to our various partners in the hardwood industry," Barford noted. "The pallet producers are the largest single purchaser of hardwood lumber, and with the explosive worldwide use of North American hardwoods, this international audience including the largest traders of hardwoods was keenly interested in our view of the world. Both of these audiences included current and prospective NHLA members and I encouraged them all to attend the NHLA Annual Convention to be held October 7-9 in Nashville, TN."
NHLA STAFF ATTENDS HARDWOOD MANUFACTURERS ASSOCIATION ANNUAL MEETING IN NASHVILLE, TN Three members of the NHLA staff travelled to Nashville for the Hardwood Manufacturers Association (HMA) Annual Meeting to both attend the valuable sessions and also to make final preparations for the NHLA Convention to be held there October 7-9. As always there was a large number of companies who are members of both NHLA and HMA so there was great opportunity to meet with them including NHLA President Pem Jenkins, of Turn Bull Lumber Co. "As usual HMA put on a power packed program covering the issues of business planning and taking a look ahead at future business prospects," reported NHLA CEO Mark Barford. "The industry had a chance in various sessions to express some of their concerns as well. In addition to current concerns about over supply, the
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INSIDE NHLA
"We always look forward to meeting with and talking to our various partners in the hardwood industry," Barford noted.
issues of insurance, future employees such as loggers, and the threat of the Long Eared Bat regulations remind us that the industry is always being challenged and needs the strength of each other through continued cooperation of all associations."
NHLA ATTENDS THE KENTUCKY FOREST INDUSTRIES ASSOCIATION ANNUAL MEETING IN LEXINGTON, KY The Kentucky Forest Industries Association celebrated 50 years this year with a great annual meeting in Lexington, KY. Director of Membership, John Hester, was one of more than 350 in attendance this past March. Attendees were given the opportunity to attend important industry related topics, such as an update on the Northern Long Eared Bat, as well as the future of the wood industry presented by the Commissioner of Agriculture for the state of Kentucky. There was also a presentation from the sixteenth President of the United States, “Abraham Lincoln.� KFIA is extremely proud to be holding its annual meeting for 50 years and NHLA is proud to attend and looks forward to it every year.
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NHLA Inspector Training School Hits a Milestone
NHLA WELCOMES ANOTHER SUCCESSFUL GROUP OF GRADUATES
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ommencement exercises for the 176th class of the NHLA Inspector Training School were held on Thursday, March 26, 2015 with twelve students completing the program. Steve Banks, founder and CEO of Banks Hardwood, Inc. and graduate of the School, delivered the graduation address to a capacity filled room. As keynote speaker, Banks spoke about the importance of the School to the hardwood industry. “For me personally, this school and the confidence it gave me allowed me to start my career at a young age. Hardwood inspectors are at the heart and soul of our industry,” said Banks. Banks went on to explain how important NHLA certified lumber inspectors are to the hardwood industry. “Lumber inspection is not just a job, it is a great responsibility,” he said. “By graduating from this School you will always be a part of NHLA from here on out.” Graduates were: Daniel Mark Almendinger of Johnstown, Ohio – Almendinger Sawmill LLC Dylan J. Anderson of Saxon, Wisconsin – Snowbelt Hardwoods Brady Frances Banks of White Pigeon, Michigan – Banks Hardwoods, Inc. Roman Baumgartner of Moedling, Austria – A. Baumgartner GesmbH
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“For me personally, this school and the confidence it gave me allowed me to start my career at a young age. Hardwood inspectors are at the heart and soul of our industry,” said Banks. Michael A. Diehl of Kirksville, Missouri – Hartzell Hardwoods William R. Faircloth of Chattanooga, Tennessee – Thompson Appalachian Hardwoods, Inc. Cody A. Fox of Guin, Alabama – K & S Lumber Brian A. Johnson of Montreal, Wisconsin – Snowbelt Hardwoods Anthony J. Looper of Bismarck, Arkansas – Anthony Timberlands, Inc. Brennan G. Smith of Guin, Alabama – ATLACO, LLC David W. Steen of Silver Lake, Indiana – Pike Lumber Co., Inc. Derek W. Stone of Sterling, New York – Westbury Lumber Co. Class president, Brady Banks, gave a misty eyed speech while addressing the class to thank them for the fond memories and friendships made throughout the twelve-week course.
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Banks went on to acknowledge how much the school meant to her individual and educational development. “When I made the decision to come to this school, I never knew it would be the best personal growth experience of my life. This is my school.” Nathan Hascher from The Lumberman’s Club of Memphis presented the individual achievement awards. Outstanding individual awards recipients were as follows: Roman Baumgartner – John Thomson Award for Highest Overall Average Brian A. Johnson – Howard Hanlon Award for Second Highest Overall Average Brian A. Johnson – Westside Hardwood Club Award for Highest Board Run Average Anthony J. Looper. – J.P. Hamer Award for Most Improved Student Derek W. Stone – South Central Lumbermen’s Award for Best Attitude/ Citizenship Brady Frances Banks – Lumbermen’s Club of Memphis Leadership Award
THE FIRST CLASS OF THE ITS PROGRESSIVE PROGRAM
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ommencement exercises for the first members of the Progressive Program of the NHLA Inspector Training School were also held on Thursday, March 26, 2015 with three students completing the program. Compared to the original course, which includes twelve weeks at headquarters in Memphis, Tenn., the Progressive Program allows students to learn the same course curriculum online while weaving in hands-on classroom experience for a less amount of time. The program is comprised of three blocks, in which students must complete one block before moving on to the next. Block 1 requires two weeks of hands-on study at NHLA headquarters. Block 2 allows for up to 12 months of online study for memorization and study of required material. Block 3 requires an additional two weeks of classroom study and board runs at NHLA headquarters. James W. Steen, President of Pike Lumber Company and member of the NHLA Board of Managers, spoke about the importance and significance of the first Progressive Program graduating members. “The committee recognizes the pioneers in the first progressive class and are proud of all of you sitting here today.” Graduates were: Michael Diehl of Kirksville, Missouri – Hartzell Hardwoods
“The progressive class is a big deal. It was very special. Good things don’t come easy, we worked through all of the challenges of a new venture and I am extremely proud of these graduates. You can definitely term this as a success.”
Richard Hascher, NHLA Inspector Training School Instructor, reflected upon his thoughts regarding the new and innovative Progressive Program. “The progressive class is a big deal. It was very special. Good things don’t come easy, we worked through all of the challenges of a new venture and I am extremely proud of these graduates. You can definitely term this as a success.” Michael Diehl, graduate of the Progressive Program, explained why this alternative method to completing the inspection certification course at the School would be beneficial for many students in the future. “I would recommend the Progressive Program because there are some situations in life where you cannot be away from home for twelve straight weeks.” William R. Faircloth, another graduating member of the Progressive Program, spoke about his experience as a student in the recently developed course. “It is very beneficial because of the time flexibility. I am proud to be a graduate of the School because of the credibility it gives you in the industry.”
David W. Steen of Silver Lake, Indians – Pike Lumber Company William R. Faircloth of Huntland, Tennessee – Thompson Appalachian Hardwoods, Inc. W W W. N H L A .CO M
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MEMBER TO MEMBER
CAPTIVE INSURANCE COMPANIES: CONSIDERATIONS FOR TODAY'S BUSINESS OWNER By Robin Little, BB&T Insurance Services National Forest Products Practice
Over the past few months, several clients have expressed interest in learning more about captive insurance programs. Billy Richard, President of BB&T Assurance shares a little information about the captive insurance world that he works in each day. What is a Captive? A captive is a true insurance or reinsurance company. The captive’s business is primarily to insure the risks of its owner or owners. The owners participate in controlling the underwriting, claims, and investment decisions of the captive. From an insurance perspective, a captive solution is synonymous with control. According to Richard, “Captives represent a paradigm shift. You no longer are a purchaser of retail insurance. You own an insurance company.” How long have captives been an option? Captive insurance companies have existed for many years gaining legitimacy in the 1960s and enjoying tremendous growth in the 1970s and 1980s. As a result, captives have become a permanent part of the risk management landscape. Today, there are roughly 6,200 captives worldwide with 90% of the Fortune 500 companies having at least one captive. In addition, many entrepreneurial, mid-size companies with a commitment to employee safety and risk management are choosing a group captive option. Richard adds, “Captives are becoming part of the retail insurance fabric. They are no longer an exception.” What qualifies a captive to be an insurance company? To be considered an insurance company, a captive must be established with economic substance, i.e. there must be adequate risk transfer and risk distribution. It must operate in accordance with commonly accepted insurance standards. This is the case whether the entity is a single parent, group, or micro captive.
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What are the advantages and disadvantages of captives? The primary benefits of a captive are financial. A captive allows its owners to participate in the underwriting benefits of an insurance program that would have traditionally been retained by the carrier. The operating company pays premiums to an insurance company owned by the captive members or member. A good year(s) without significant loss experience will result in the captive earning underwriting profit. In addition, the captive owner(s) will earn investment income on tax-deferred reserves until a policy year is closed. “As opposed to bundled services in a traditional program, the captive owner(s) choose their service providers. They decide on the carrier, the auditor, claims management, investment advisor, and the captive manager – everything,” said Richard. There can be specific tax advantages to a captive when formed and managed properly. As mentioned previously, all captives must meet risk transfer and distribution requirements as prescribed by case law and the Internal Revenue Service’s guidelines. The specifics of these issues should be addressed with appropriate tax counsel. As for disadvantages, captives involve greater risk assumption and require sharing risk with other companies or within the economic family. In such situations, an additional cash infusion from the captive’s owner or the members of a group captive may be required. A captive is a bona fide insurance company. As a separate company, the captive will require business and financial management. This effort can potentially take time away from managing a core business. What lines of insurance coverage are typically in a captive? Workers compensation, automobile liability, and general liability are the core captive lines of business. It is possible to develop a reasonably accurate loss forecast for these lines due to the volume of claims once a company has reached a certain size.
MEMBER TO MEMBER Property has traditionally been a poor choice for a captive because losses are difficult to predict. Property losses tend to have large, quick payouts. Therefore, investment income potential is limited. What factors make a company eligible for a group captive? A commitment to employee safety and product quality, in conjunction with adequate size and proven loss experience are the key factors. A group captive candidate will have a five-year loss ratio no higher than 60% and minimum casualty premium of $150,000. A consortium of like-minded business entrepreneurs owns a group captive. The captive may be comprised of companies from the same class (homogeneous) or multiple classes (heterogeneous). New members must be invited to join the captive by the general membership. Invitation is predicated on a risk profile devised by the individual captive. Captives tend to be very successful because they are groupings of the best companies in terms of safety and loss credentials. In most cases, those invited to join a group captive never leave and only get better. Best practices are shared within the group to heighten awareness of risk management policies and procedures.
A captive insurance company is an excellent financial tool for business owners that fit the following profile: • Willing to accept and share risk • Commitment to loss control and risk management • Seeking cost control in insurance programs • Desire increasing quality from their insurance program “Captives are all about control. In a nutshell, it’s for those tired of paying the claims of others,” says Richard.
About Billy Richard, BB&T Assurance Company, Ltd. Billy Richard is President of BB&T Assurance Company, Ltd., a captive insurance company established in 2001 as a wholly owned subsidiary of BB&T Corporation. The captive was formed as a Class 3 Bermuda domiciled insurance company to insure selected risks of BB&T Corporation and its affiliates.
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LEGISLATIVE LOG
THE NORTHERN LONG EARED BAT: THE BATTLE CONTIUES By Dana Cole, Executive Director Hardwood Federation The much anticipated announcement from the U.S. Fish and Wildlife Service (FWS) regarding the Northern Long Eared Bat (NLEB) was released on Thursday, April 2. As with most news out of the federal government, the final determination on the NLEB’s status under the Endangered Species Act is a mixed bag. On the plus side, the FWS declared that the NLEB should be listed as “threatened” rather than “endangered.” While the difference in definition may seem small, in terms of application under the Endangered Species Act it is significant. An endangered listing would have triggered a number of extremely stringent protective actions under the law, limiting virtually any activity that is deemed disruptive to the bat’s habitat, regardless of how those activities actually impact the bat. The threatened designation does allow for some flexibility in protective measures and restrictions. At the same time the FWS announced their determination on the NLEB’s status, they also published a related interim 4(d) rule outlining required protective measures as well as exceptions to regulations, including forest management and timber harvests, in areas impacted by the WNS. This rule will be refined during the balance of 2015 with a final rule anticipated by the end of the year. The FWS does recognize that forestry related activities do not have significant impact on the NLEB and they freely acknowledge that the White Nose Syndrome (WNS), a fungal disease spread during winter months in caves and hibernation sites, is the main cause of the bat’s population decline. However, on the negative side, despite their recognition of the true cause of the NLEB population decline, the interim guidance does put restraints on timber harvesting particularly during the months of June and July when NLEB pups are born. IMPACTS ON FORESTRY The interim guidance impacts the hardwood industry in the following ways: 1. The FWS has designated “buffer zones” that are defined as areas within 150 miles of U.S. and Canadian districts where White Nose Syndrome has been detected. These zones effectively cover most of the eastern part of the U.S. with the exception of some of the most southern areas of southern states. 16
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2. Outside the buffer zones, the 4(d) rule essentially does not apply and business may proceed as usual. 3. For areas within the buffer zones, the 4(d) rule exempts the following activities from the guidance: a. forest management practices; b. limited tree removal projects, provided these activities protect known maternity roosts and hibernacula; c. removal of hazardous trees, maintenance and limited expansion of transportation and utility rights-of-way; and d. prairie habitat management. 4. However, the above activities must be conducted under the following restraints: a. Activity occurs more than .25 miles from known, occupied hibernacula (caves or bat hibernation sites). This applies for all months of the year; b. Activity avoids cutting or destroying known, occupied roost trees between June 1 and July 31 (pup season). How ever, trees near or next to roost trees may be removed although clear cuts would be prohibited; c. Activity avoids clearcuts (and similar harvest methods, e.g. seed tree, shelterwood and coppice) within 0.25mile (0.4 km) of known, occupied roost trees between June 1 and July 31 (pup season). 5. During months other than June and July, forest management activities, including timber harvests, may proceed as normal unless they are within the .25 radius of known hibernacula under the interim rule. The above presents several challenges for the forest products industry, including hardwood businesses: • Defining known hibernacula and occupied roost trees is a difficult and time consuming process. While studies do exist that identify these sites, they can be out-of-date and inaccurate leading to disputes between regulators and landowners where permits for harvesting are required, particularly on federal lands. • Pup season occurs in the middle of prime harvest season for many locations, leaving operators to struggle during months of more questionable weather. This will be particularly onerous on federal W W W. N H L A .CO M
LEGISLATIVE LOG
lands as this additional restriction will most likely become another point of contention for environmental groups that protest harvests on public lands. • The guidance provided above does nothing to solve the primary issue of the NLEB population decline: The White Nose Syndrome. The FWS has not addressed how to slow or cure the white nose syndrome, the only action that will have any appreciable impact on the bat’s sustainability. It is important to note that the interim rule released on April 2 and described above is virtually unchanged from the draft rule published for comment in January 2015. The rule released on April 2 does not take into account the extensive comments provided by the Hardwood Federation and our colleagues in the wood products industry. Because of the number of comments received by the FWS, they are taking more time to consider a final rule which will be issued by the end of the year. The final rule could incorporate our recommended changes and eliminate or reduce the current restrictions…or they could add to the current list. The FWS will continue to take comments until July 1, 2015. The Hardwood Federation and our allies will continue to push FWS to finalize a 4(d) rule that eliminates the timber harvest restrictions
that are in the current version. This will include additional comments, direct contact with FWS as well as working with the many members of Congress who have expressed great concern about the impacts of the rule on the forest products industry. THE BOTTOM LINE So far, developments have played out about as we expected. One thing is clear. If the Hardwood Federation and all of our forestry and forest products industry allies had not worked so hard over the last year educating the FWS and Congress, the NLEB would have been listed as “endangered.” Second, more work on this 4(d) rule is clearly needed. But it is also important to recognize that forestry was the only sector that received any accommodation at all in this proposal. We are hopeful that this recognition affords us the necessary toehold to have the remainder of our concerns addressed. Finally, this battle has been going on for well over a year and will most likely continue on into 2016. This issue remains the top priority for the Federation and we will continue to fight on behalf of the industry for realistic, practical and impactful solutions to the question of healthy forest management and healthy Northern Long Eared Bats.
U.S. Fish & Wildlife Service
Northern Long-Eared Bat Interim 4(d) Rule
White-Nose Syndrome Buffer Zone Around WNS/Pd Positive Counties/Districts
Map Created March 31, 2015 Counties/Districts with WNS/Pd Infected Hibernacula White-Nose Syndrome Buffer Zone Per Interim 4(d) Rule U.S. counties within 150 miles of positive counties/districts (Data as of 03/31/15; additional updates expected)
Northern Long-Eared Bat Range (As of 03/31/2015) Northern Long-Eared Bat range and WNS Buffer Zone subject to change as new data are collected. WNS = White-Nose Syndrome Pd = Pseudogymnoascus destructans; the fungus that causes WNS WNS Counties/Districts Data Provided By: Pennsylvania Game Commission Basemap Data: USGS
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RULES CORNER
COMMON PRACTICES THAT CAN CAUSE TROUBLE By Dana Spessert, NHLA Chief Inspector One service offered by the NHLA Inspection Services Department to the industry is in-house lumber grading training. Companies can use the NHLA National Inspectors to educate their staff including sales, production and management personnel. During a recent in-house training session I was asked a few questions that I would like to share with the readers of this month’s magazine. The first question asked, “Why is F1F mixed in shipments of FAS when the paperwork (bill of lading, purchase orders, etc.) specifically states FAS?” To answer, I explained: It is common practice among many suppliers to simply put FAS on the order and other paperwork, but
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the shipment will most likely include the F1F that is produced from the same run of logs as there is normally little to no difference in price. Although this is customary and simplifies writing of orders and bills of lading, it is improper to not fully disclose the actual grade in a shipment. The problem with the above scenario is that customary practices and the published Rules do not align when the receiver of the shipment does not understand the common practice. To explain how this can be an issue I will quote the Sales Code and illustrate how this “common practice” can be a bigger issue than expected. The NHLA Sales Code, Article X – Inspection, Section 6 states during a “Dispute Inspection”:
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RULES CORNER
Companies can use the NHLA National Inspectors to educate their staff including sales, production and management personnel.
If the result of the dispute inspection reveals that less than 80% of the total footage in the shipment is in accordance with the specifications of the order, the seller shall reimburse the buyer for any freight paid by the buyer on the shipment, and the shipment shall be held for the disposition of the shipper, who is to pay all expenses of the inspection and labor charges at actual cost or at the rate of $15.00 per M feet, whichever is less. When the purchase order or sales contract only states “FAS”, for instance, any other grades that the NHLA Inspector would find would be considered as “off grade”, including F1F. Another question that was raised, “How do you determine if the color meets the specification for 90/70 cherry, for example?” The color sorts for anything other than what is specifically stated in the NHLA Rules Book such as 1 & 2 White Maple and Red Birch, is by special order and the specifications need to be specifically stated on the purchase order or contract in order to determine if it meets the requirement. The NHLA Inspectors cannot use an unwritten specification to determine grade or color sort accuracy. I hope that this has cleared up some confusion and as always, feel free to contact me directly with questions. Dana Spessert, NHLA Chief Inspector / d.spessert@nhla.com / 901-399-7551
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JOB BOARD
* To view current job postings or to post a job, visit www.nhla.com/jobboard.
Sawyer Gutchess Lumber is seeking an experienced (minimum 2 years) sawyer. Sawyer is responsible for sawing logs for maximum value recovery by following daily cutting orders and achieving proper levels of yield. Accountable for proper operation of the carriage, feed works and log turner; checks lumber thickness at saw; conduct a daily physical inspection of all equipment. Send resume to jlortiz@gutchess.com to apply. Gutchess Lumber 10699 Maple Grove Road | Freedom, NY 14065 Fax: 607-428-8097 Assistant Sawmill Manager Gutchess Lumber desires a highly motivated and driven Assistant Sawmill Manager who is results oriented with experience in supervision and production management. Applicant must have a manufacturing background and experience dealing with process improvement driven by employee involvement. Leadership, management and administrative skills also required. Gutchess Lumber offers competitive pay, employee stock ownership, full health benefits, profit sharing and a 401k. To apply visit http://glc.applicantstack.com/x/openings Gutchess Lumber 10699 Maple Grove Road | Freedom, NY 14065 Lumber Inspector BWP Hardwoods, a division of Gutchess Lumber is seeking an NHLA certified lumber inspector. Lumber inspectors are responsible for visually inspecting lumber according to species, grades, and dimension using NHLA lumber grading rules. BWP Hardwoods offers competitive pay and a superior benefits package. If you share our vision of excellence, then we invite you to join our winning team! Send resume to jlortiz@gutchess.com to apply. BWP Hardwoods 12942 Route 322 | Brookville, PA 15825 Phone: 724-537-6447 | Fax: 607-428-8097
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Dry Kiln Technician Gutchess Lumber is seeking a dry kiln technician for their Cortland, NY location. Applicants must be able to work in a very fast-paced industrial manufacturing environment with emphasis on safety, quality, environmental concerns and production goals. Dry kiln technicians are responsible for controlling drying tunnels to condition while maximizing production, quality, and grade and value recovery. Applicant must have good knowledge of the working principles of steam distribution; heat transfer, air circulation, and condensate return systems. To apply visit http://glc.applicantstack.com/x/openings Gutchess Lumber 890 McLean Road | Cortland, NY 13045 Fax: 607-749-8098 European Hardwood Buyer Robinson Lumber Company is seeking an experienced European Hardwood Buyer with the ability to trade and purchase hardwood in Europe. Must have knowledge of the hardwood lumber grading rules and ability to identify hardwood species. Robinson Lumber Company is a 121-year-old family-owned business specializing in the import and export of tropical and domestic lumber, flooring, & decking products to over 1,200 customers in 62 countries. Please apply at www.roblumbo.com Robinson Lumber Company New Orleans, LA 70115 Sawyer Ordie Price’s Sawmill, Inc is seeking an experienced (minimum 2 years) sawyer. Sawyer is responsible for sawing logs for maximum value recovery by following daily cutting orders and achieving proper levels of yield. Applicant must be able to operate a resaw, aid in mill maintenance and load/unload kilns. Ordie Price’s Sawmill has been a family business since 1928. Please send resumes to op360@nep.net Ordie Price's Sawmill, Inc. 7025 Sr 92 | South Gibson, PA 18842 Phone: 570-222-3986 | Fax: 570-222-9006
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Ordie Price’s Sawmill has been a family business since 1928. Please send resumes to op360@nep.net Ordie Price's Sawmill, Inc. 7025 Sr 92 | South Gibson, PA 18842 Phone: 570-222-3986 | Fax: 570-222-9006
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LogSavers /FlitchSavers
Lumber Inspector Ordie Price’s Sawmill, Inc. is seeking an NHLA certified lumber inspector. Lumber inspectors are responsible for visually inspecting lumber according to species, grades, and dimension using NHLA lumber grading rules. Applicants must have a minimum of 2 years experience in the field.
You Bring THE WOOD ...
Lumber Inspector Deer Park Lumber, Inc. is seeking an NHLA certified lumber inspector. Ideal candidate must have the ability to grade both green and kiln dried lumber. Some experience is preferred. Deer Park Lumber, Inc. offers competitive pay, health benefits including dental and vision as well as 401k and paid vacations and holidays. Please send resumes to bobby@deerparklumberinc.com or call Bob Seidel at 570-836-1133. Deer Park Lumber, Inc 3042 SR 6 | Tunkhannock, PA 18657 Phone: 570-836-1133 | Fax: 570-836-6938 Lumber Inspector Fred Netterville Lumber Co. is seeking an NHLA certified lumber inspector. Applicants must have 3 years or more experience in the field. Applicants must be able to remanufacture lumber if needed on dry end. Fred Netterville Lumber Co. offers competitive pay and health benefits along with 401k and paid vacations.
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To apply call Charlie at 601-870-5930. Fred Netterville Lumber Co. P.O. Box 857 | 3975 Buffalo Road | Woodville, MS 39669 Phone: 601-888-4343 | Fax: 601-888-6469
We’ll Bring THE PROTECTION™
Protect your logs (and your fingers), with LogSavers ® and FlitchSavers ® .
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CALENDAR
For applications, a complete listing of events and more information please visit www.nhla.com/calendar.
WH ERE IN THE WOR LD IS N H LA?
EDUCATION & TRAIN I NG
Interzum 2015
Flex-Day Lumber Grading Short Course
May 5-8 | Cologne, Germany Participating: Dana Spessert, Chief Inspector
Memorial Day Holiday
May 25 | NHLA Headquarters Closed
NHLA Chinese Culture Tour of China
June 20-July 1 Participating: Mark Barford, CAE, Chief Executive Officer John Hester, Director of Membership Renee Hornsby, Director of Communication
Independence Day Holiday
July 3 | NHLA Headquarters Closed
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
5-Day Lumber Grading Short Course
Morehead, KY | May 11-15 Mayfield Community and Technical College Rowling Campus Instructor: Benji Richards, NHLA National Inspector Contact: Lorrina White | 606-356-2100 | lorrina.white@kctcs.edu
177th Class NHLA Inspector Training School Summer Program
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
Hardwood Lumber Grading Short Course
Sandy Lake, PA | June 20-23 | McKeever Environmental Learning Center Instructor: Barry Kibbey NHLA National Inspector Contact: McKeever Center | 724-376-1000 | info@mckeever.org www.mckeever.org
Progressive Inspector Training School Program: Block 1 Memphis, TN | August 17-28 | NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com
Forest Products Marketing Workshop
Memphis, TN | September 3-4 | NHLA Headquarters Instructor: Dr. Bob Smith and Dr. Henry Quesada, Virginia Tech Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com
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
Progressive Inspector Training School Program: Block 3 Memphis, TN | November 2-20 | NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com
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Registration Open!
THE GLOBAL GATHERING OF THE HARDWOOD COMMUNITY
Registration for the 2015 NHLA Convention is NOW OPEN! REGISTER TODAY! 2014 NHLA ANNUAL CONVENTION & EXHIBIT SHOWCASE OCTOBER 7-9, 2015 | OMNI HOTEL DOWNTOWN | NASHVILLE, TN More information and registration online at www.nhlaconvention.com