2018 October Hardwood Matters by National Hardwood Lumber Association

TH E VOIC E O F THE HARDWOOD IN DUSTRY

H A R D W O O D M AT T E R S O c to b er 2 0 18

Success in Family Businesses

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

Welcome to

TORONTO

for NHLA 2018

UCS Forest Group welcomes all NHLA Convention attendees to the NHLA Reception at the Hockey Hall of Fame. Your chance to see the Stanley Cup awaits! UCS Forest Group is a proud member of the NHLA.

Hockey Hall of Fame Wednesday, October 3, 6â&#x20AC;&#x201C;9pm

CONTENTS October 2018 • Issue 194

WHAT'S INSIDE 14

ONLINE

feature

instant

20 Managing Multi-Generational Success in Family Businesses

TOP POST OF THE MONTH at facebook.com/NHLAOfficial

departments

A Sunday funny for you . . .

9 Accolades 10 Education Spotlight 14 Legislative Log 26 Rules Corner

20 26

reader services 6 30 32

President’s Message Educational Calendar Job Board

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

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

ADVERTISER INDEX 29 A.W. Stiles Contractor 32 ASF Logistics 13 DMSi 16 DV Hardwoods, Inc. 11 Hardwoods Specialty Products 29 Heli Americas 8 King City/Northway Forwarding 25 Kuehne + Nagel 25 McClain Forest Products IBC Pike Lumber Company, Inc. 12 Qingdao Huatongyuan International Trading Co., Ltd. 5 Quality Hardwoods, Inc. 25 Robinson Lumber Co. 3 RossiGroup 23 TradeTec 24 TRN USA Forest, LLC 7 U•C Coatings, LLC IFC, 18 Upper Canada Forest Products, Ltd. 17 WoodEye 25 Wheeland Lumber Co., Inc. For advertising inquiries: Contact John Hester, Director of Membership at j.hester@nhla.com or 901-399-7558.

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EXECUTIVE COMMITTEE

MISSION LEADERS

Brent Stief Huron Forest Products President

Jon Syre Cascade Hardwood LLC Unique Services

Darwin Murray McClain Forest Products Vice President

Nordeck Thompson Thompson Appalachian Hardwoods Rules

Pem Jenkins Turn Bull Lumber Co. Past President 2014-2016

Orn Gudmundsson, Jr. Northland Corporation Structure

NHLA STAFF

Mike Powers Maley & Wertz Industry Advocacy & Promotion

Lorna D. Christie CEO l.christie@nhla.com Amanda Boutwell Marketing and Communications Manager a.boutwell@nhla.com Renee Hornsby Director of Communications/Editor r.hornsby@nhla.com

■■■ Trisha Clariana Office Manager Desirée Freeman Controller Julia Ganey Member Relations Manager Rich Hascher Inspector Training School Instructor John Hester Director of Membership and Business Development Carol McElya Accounting Assistant & Publications Becky Miller Inspector Training School Administrator Vicky Quiñones Simms Membership Development Manager Dana Spessert Chief Inspector

Kevin Gillette Tioga Hardwoods Membership & Networking COMMITTEE CHAIRS Dave Mayfield Mayfield Lumber Co. Membership Dave Bramlage Cole Hardwood, Inc. Promotion & Advocacy Garner Robinson Robinson Lumber Convention Pem Jenkins Turn Bull Lumber Co. Nominating Steve Jones Ron Jones Hardwood Sales, Inc Inspection Services Orn Gudmundsson, Jr. Northland Corporation Finance Bucky Pescaglia Missouri-Pacific Lumber Co., Inc. ITS/Continuing Education Stephanie VanDystadt DV Hardwoods, Inc. Communications & Marketing Joe Snyder Fitzpatrick & Weller, Inc. Rules Darwin Murray McClain Forest Products Strategic Planning W W W. N H L A .C O M

A new beginning for the Gold Standard for Cherry from Emporium, PA The Rossi Group announces the launch of its new State of the Art high-tech sawmill at Emporium in Pennsylvania to serve domestic and export markets from the sustainable Allegheny Forest resources with the highest quality Cherry and many other hardwood species.

Rossi Group LLC, www.rossilumber.com Tel: 1(860) 6323505

THANK YOU

TO OUR 2018 SPONSORS

NHLA ANNUAL CONVENTION & EXHIBIT SHOWCASE PREMIER SPONSOR

ALDER LEVEL SPONSOR Cascade Hardwood Group

Tioga Hardwoods, Inc.

Graf & Thomas Lumber Co.

TMX Shipping, Co.

Hardwood Distributors Association

WALNUT LEVEL SPONSOR Upper Canada Forest Products, Ltd.

TradeTec

Hardwood Industries, Inc.

Uâ&#x20AC;¢C Coatings, LLC

J.D. Irving Ltd./Hardwood Division

USNR

Maley & Wertz, Inc.

Pennsylvania Lumbermens Mutual Insurance Co.

WoodEye

McClain Forest Products

MAPLE LEVEL SPONSORS Abenaki Timber Corporation

Wood-Mizer, LLC

Missouri-Pacific Lumber Co., Inc.

CHERRY LEVEL SPONSORS Baillie Lumber Co.

Allegheny Wood Products

BIRCH LEVEL SPONSORS Ressources Lumber, Inc.

MM Industrial Sales Moss Lumber Industries, Inc. National Hardwood Magazine

Brewco, Inc.

RED OAK LEVEL SPONSORS ACES Division of Kuehne + Nagel, Inc.

Cherry Forest Products

Alan McIlvain Co.

Ontario Ministry Natural Resources & Forestry

Cole Hardwood, Inc.

Ally Global Logistics LLC

Pike Lumber Co., Inc.

DMSi

Anthony Oak Flooring, Inc.

Quality Hardwoods, Inc.

Hardwoods Specialty Products

APP Timber, Ltd.

Quality Hardwoods, Ltd.

Interglobo Morra N.A., Inc.

Atlanta Hardwood Corp.

Ron Jones Hardwood Sales, Inc.

King City/Northway Forwarding Ltd.

Breeze Dried, Inc.

TRN USA Forest LLC

Matson Lumber Co.

Carl Rosenberry & Sons Lumber, Inc.

TS Manufacturing Co.

Continental Underwriters, Inc.

Thompson Appalachian Hardwoods Inc.

Cummings Lumber Co., Inc.

Thompson Hardwoods, Inc.

Northwest Hardwoods

DV Hardwoods

Wheeland Lumber Co., Inc.

Robinson Lumber Co.

Falcon Lumber, Ltd.

SII Dry Kilns

Frank Miller Lumber Co., Inc.

American Wood Technology, LLC

McGriff Insurance Services National Forest Products Practice

Oaks Unlimited

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PRESIDENT’S MESSAGE

FINAL WORDS AS NHLA PRESIDENT

would like to take this opportunity to thank the membership, staff, board and executive committee for all their support over the past two years. Being president of NHLA has been a truly rewarding experience. I believe we have been through a renaissance and are on our way to even better value for our members. Thank you so much!

He then has to check with his suppliers as to current pricing—they offer a bundle of random with varying widths—hopefully it is an export tally, and he understands how to determine results. Then he decides how much he needs and allows some extra just in case. Next, he has to predict the delivery time and his millwork schedule; if we’re lucky, he calls the client back in the first two days.

I want to leave you with an idea that I hope deserves further discussion.

If he can buy strips of the perfect size, then things are considerably easier, but the contractor didn’t sell sizes that yield well from our typical sorts—he would never make that mistake with softwoods.

Let me be absolutely clear: This is my opinion, and is not something that has the approval of staff, the executive committee or the rules committee.

I believe that hardwood consumption would benefit from some standard sizes—maybe 4 to 5 different widths, likely 5.5” dry, is an obvious choice—though what the sizes are is debatable and would be a function of market demands, established sawing results derived from picture tallies, etc. If we choose intersections with high frequencies around desired sizes, we can win both ways. The point is not to make the price cheap, but to make it known. The reason I’m suggesting this, is to keep up with the competition and provide cost and yield certainty. We compete with plywood, plastics and MDF, among other materials—all of them offer a fixed price per piece. It is easy to understand, estimate costs for a project and decide if this is what you want. It is also much easier for less informed salespeople to promote without risks of losing money or trying to decide how they might schedule production. Imagine how it goes when a builder asks for quotes on MDF and cherry trim for a house . . . • The MDF is on the shelf in 10’ or 12’ lengths already moulded, pre primed and comes in two patterns at $12.38/ piece. • “How much is the cherry?”

Obviously, the cherry is more, but it also comes with many benefits: beauty, durability, doesn’t chip or need to be repainted within ten years, etc. If the salesman could say quickly a piece of 5”x10’ casing/ baseboard costs $25, then he would have at least given hardwoods a fair chance. We all buy lots of luxury products with longevity that cost twice as much or more than the cheapest alternatives. When we do, it is also because we know the price, we have compared to see that it is a reasonable deal and it comes with appropriate service. Not many would consider a Cadillac or Mercedes if we couldn’t quickly figure out the cost, compare it to alternatives and weigh the extra benefits against cheaper vehicles. Our market share of upscale housing is continuing to dwindle, not because other products are better or more desirable, rather they are an easier decision for everyone involved. If we could price moulder blanks with some certainty of yield—both clarity and color—we could compete more evenly with our competition. In fact, many successful companies are doing some of this already. By creating some standard sizes and availability, understanding would increase. We all know how much 2x4x12’ pressure treated costs, so we can plan projects like a deck and determine if it fits our budget before we even call a contractor. If we ask the same question of the cherry trim above, all we can say now is “it’s expensive”.

• “Ah . . . let me get back to you.”

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From the log yard to the shipyard, Anchorseal® is your first and best choice for log protection.

None of this is to suggest that random sawing needs to be replaced by standard size sawing—there are still markets where random sawing will still work—rather, we should offer standard sizes as an alternative. Standard sizes will become known and understood by the marketplace. They do not require the education and marketing budget we cannot afford. If the market gravitates to these sizes, then they will ultimately become more popular. Certain widths/ lengths will go up or down in price as demand shifts, but the market will also understand that if they design products around standard sizes, supply exists at a known price. All of the other building products benefit from standard sizing—why not us?

• Protect debarked logs during processing and export • Prevent up to 90% or more of end checking • Dramatically reduce blue stain • Increase yield and reduce waste

Visit us at Booth #501 at NHLA to learn more!

Brent Stief, NHLA President | Huron Forest Products brent@huronfp.com www.uccoatings.com 1-888-363-2628 sales@uccoatings.com

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ACCOLADES

Congratulations

Milestone Members NHLA would like to recognize our members who are celebrating a milestone anniversary of 5 years or more during the month of October.

5 YEARS Clark Lumber Company, Inc. | Active U2 | October 2013 Connor & Gallagher OneSource | Sustaining | October 2013

Welcome New Members ACTIVE U1 MEMBERS Yazoo Lumber & Mats / Yazoo City, MS Y-B Logging & Lumber / Middlefield, OH J M Logging & Lumber / Orwell, OH Tri State Timber Sawmill, LLC / Memphis, MO Forcey Lumber Company, Inc. / Woodland, PA

Little Creek Lumber | Active U1 | October 2013 ACTIVE U2 MEMBERS

Gene Brazeale Lumber Company, Inc. Sparkman, AR Hardy Valley Lumber LLC / Horse Cove, KY PARTNER MEMBER Jiashan Sentong International Trade Co., Ltd., Jiashan, China ASSOCIATE MEMBERS Peachey Wood Products / Reedsville, PA

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EDUCATION SPOTLIGHT

THE INSPECTOR TRAINING SCHOOL CELEBRATES THE 186TH CLASS Twelve students graduated August 3, 2018 when the NHLA Inspector Training School held its 186TH commencement exercises at Northwestern Michigan College in Traverse City, MI.

Front row left to right: Joshua C. Lee, Rich Hascher - ITS Instructor, Alicia Sedlacek and David A. Wenkel, Sr. Middle row left to right: Joseph C. Duncan, Preston W. Flack, Brandon L. Olson and Nicolas J. Redner Back row left to right: Dylan L. Pahssen, Adron Jameson, Lane T. Gorsuch, Randy J. Dutcher, and John R. Renfro (not pictured Andrew Saudan)

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MAKE YOUR LUMBER GATEWAY TO NORTH AMERICAN CUSTOMERS 61 250 330 + 35,000 + 3,800,000 +

US: 888-826-5528 CAN: 844-365-6995 hardwoods-inc.com

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LEGISLATIVE LOG

MOVING THE HARDWOOD INDUSTRY FORWARD by DANA COLE, Executive Director Hardwood Federation

Welcome to Toronto! The Hardwood Federation is excited

to be a part of this wonderful event. Congratulations to the Board of Managers, Board President Brent Stief, NHLA Executive Director Lorna Christie and the entire team at the National Hardwood Lumber Association on what promises to be another successful, exciting, and inspiring Annual Convention. The Hardwood Federation is proud to partner with, and represent NHLA and their members in our nation’s capital, Washington, D.C. Together we support policies that create a healthy economic environment for the hardwood community, including family businesses and small companies, lead to a fair and level international playing field, and ensure healthy and productive public and private hardwood forests. Having a coordinated and united voice in Washington is critical for the U.S. hardwood industry, and the Federation serves as that

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voice. NHLA and their members are significant and highly valued contributors to our efforts. The NHLA provides crucial financial and advocacy support to the Hardwood Federation, but at the same time, the direct participation of the NHLA’s membership cannot be underestimated, and we are grateful. NHLA members: • come to Washington to meet and discuss policies impacting the industry with Members of Congress; • educate Members of Congress by hosting them in mills, yards, and facilities to give them a first-hand look at the industry; • write letters to and call Congressional offices, raising concerns about bad policy and applauding good policy; and • contribute financial resources, both on an individual and company basis, to the Hardwood Federation’s Political Action Committee and Administrative Operating Fund, both essential to our continued success. W W W. N H L A .C O M

left to right:

John Hester, Representative Mike Rogers and Jeremy Garcia with Wellborn Cabinet.

What’s the return on all this support and involvement? It’s pretty significant. In 2018, the Hardwood Federation is advocating on your behalf on a number of issues that directly impact your business, including: • Advocating for policies that support robust and growing international markets for U.S. hardwood products; • Championing legislation to reform federal forest management practices, including increasing timber sales; • Prioritizing legislation that will support use of the biomass residuals currently piling up at hardwood sawmills; • Supporting efforts to reduce federal regulatory burdens that impact the hardwood industry; • Taking preemptive action against proposed changes to tax laws that will impose increased business costs on private forest owners, the primary source of hardwood supplies; • Ensuring that the Environmental Protection Agency recognizes the carbon neutrality of biomass combustion in its upcoming biomass carbon accounting framework; • Supporting legislative efforts that promote tall wood buildings and new markets for wood products; • Working with Congress and the relevant non-government organizations to ensure that U.S. made hardwood products are fully recognized and credited as a green building material. The Hardwood Federation is also continually tracking proposed policy and legislative initiatives that could have potential impacts on the industry . . . both positive and negative. We take our role in the process very seriously and strive to be the best representatives we can be for this remarkable industry. W W W. N H L A .C O M

Darwin Murray with U.S. Department of Agriculture Secretary Sonny Perdue.

The Trump Administration’s first two years have kept the Federation Team busy. Tax reform efforts were cheered by many in the industry; aggressive action on international trade policy has many concerned about the long term impacts on the industry. Issues like federal forest management reform and carbon neutrality continue to make slow, but steady, progress. All of these issues were discussion topics during our recent Hardwood Federation Fly-In when 90 of your peers, many of whom have an NHLA affiliation, stormed the halls of Capitol Hill making their voices heard. Keeping abreast of the issues and educating D.C. based policy makers has been and will continue to be our top priorities along with preserving progress that we have made and fending off the inevitable bad policy ideas that emerge on a regular basis. We cannot and will not be successful without the tireless energy and support of the entire NHLA team, staff and members alike. Thank you to each and every one of you . . . you are making a difference.

The Hardwood Federation staff will be at the NHLA convention and we look forward to meeting you and discussing our efforts in Washington. Please stop by our booth on the Convention Floor. Have a wonderful convention! O C T O B E R 2 0 1 8 H A R D W O O D M AT T E R S |

HARDWOOD STRATEGIES & CUSTOMIZED SOLUTIONS FOR LASTING PARTNERSHIPS

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Hardwood machine grading coming soon Come see us at NHLA Annual Convention & Exhibit Showcase, October 2-4, Sheraton Centre Toronto Canada

Proud NHLA Member W W W. N H L A .C O M

info@woodeye.com 404 -520 -0239

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TORONTO CAMBRIDGE EDMONTON CALGARY KELOWNA VANCOUVER VICTORIA CHICAGO DENVER SALT LAKE CITY ST. GEORGE SEATTLE PORTLAND LOS ANGELES

When our customers see the UCS tree, they know they are getting the best. Thank you to our hardwood supplier partners! We deliver your high quality lumber to our most discerning customers every day. We are grateful to work with our suppliers to consistently add value to our customersâ&#x20AC;&#x2122; businesses.

Delivering The Difference to customers and suppliers for over 30 years

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Managing Multi-Generational

SUCCESS in Family Businesses

o the uninformed, the term “family business” conjures thoughts of tiny Mom-and-Pop shops eking out a living in a world dominated by big business. However, while the large corporations grab the most news headlines, the real backbone of the economy are family businesses.

According to Forbes, family businesses account for 64 percent of the US Gross Domestic Product (GDP), employ 60 percent of the U.S. workforce, and create 78 percent of all new jobs. However, life isn’t all roses and rainbows for family businesses. They face challenges that other companies never have to worry about: succession plans, family feuding, and developing the next generation — all while retaining and growing a profitable business.

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A fifth-generation heir of the Hermes family business once said: “You don't inherit a family business; you borrow it from your grandchildren.” How accurate that statement is, considering a mere 30 percent of family businesses survive the transition from the first to second generation, and even fewer (12%) survive the transition from second to third generation ownership. Garner Robinson is the 5th generation of his family to own Robinson Lumber Company. When it comes to the longevity of his family business, he says, “The reason we’ve survived is that our company has always been bought and sold between generations — never inherited. That has spared us from the drain of non-working owners, and especially from non-contributing family members. Everyone here is here because they want to be, and because they have bought into our ownership mentality. That opportunity exists as much for non-family members as for family members – if anything, I think W W W. N H L A .C O M

“

The reason we’ve survived is that our company has always been bought and sold between generations — never inherited. That has spared us from the drain of non-working owners, and especially from non-contributing family members. Everyone here is here because they want to be.” —Garner Robinson

Five generations of the Robinson family are represented here. Each person is holding a framed photo of a past Robinson who contributed to the success of the family’s lumber business. Also, fourth generation Robinsons are holding photos of their own fathers. Pictured are: (back row, left to right) Toto Robinson, Courtney Robinson, Sam Robinson; and (front row, left to right): Wesley Robinson, Court Robinson, Garner Robinson”

“COURT” COURTNEY BAINE ROBINSON (2 01 4 -)

“DAVID” DAVID GIBSON ROBINSON (197 9-1 985 )

1st G e neratio n

2 nd G enerat i o n

3 rd G enerati on

4 t h G enerat ion

5t h G ene ration

ROBINSON LUMBER FAMILY TREE

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“COURTNEY” REGINALD COURTNEY ROBINSON (1 9 76 -201 7)

“JACK” JOHN TILGHMAN ROBINSON (1 9 4 8 -1 9 88)

“GARNER” WILLIAM GARNER ROBINSON (2009-)

“JOHN” JOHN TILGHMAN ROBINSON, JR. (1 974 -1 9 99)

“WES” CHARLES WESLEY ROBINSON, IV (2014 -)

“TOTO” CHARLES WESLEY ROBINSON, III (19 74-)

“IVENS” HAROLD IVENS ROBINSON (19 74-2012)

“TARWES” CHARLES WESLEY ROBINSON, II (19 4 8-19 9 2)

“MALLORY” MALLORY ANNE ROBINSON (2 016-)

“SAM” SAMUEL GILMORE ROBINSON, II ( 19 79- )

“TIZO” SAMUEL GILMORE ROBINSON (19 50-19 93)

“SUNNY JIM” ROBERT GIBSON ROBINSON (19 10 -19 58)

CHARLES WESLEY ROBINSON (1893-1912)

LUMBER COMPANY

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“

If you are going to have family involved in the business, ask your family member what they want to do. What is their goal for being involved? Drag the absolute truth out of them, then see if there is a path for them to achieve that goal.” —Jon Syre

David Syre and Jon Syre

family members have to work a little harder to show everyone that they mean business. I sure did.” Unlike a traditional business sale, the succession process for family businesses is much more nuanced and complicated. The most successful family businesses have strong planning skills that rely on communication and transparency, with everyone in the family involved in succession planning from the start. This foresight manages the expectations of family members when the company inevitably moves toward being handed to the next generation. The last thing a family business needs when it comes to succession is bickering between siblings and large family divisions. Jon Syre with Cascade Hardwood Group offers this advice when it comes to family business succession planning, “If you are going to have family involved in the business, ask your family member what they want to do. What is their goal for being involved? Drag the absolute truth out of them, then see if there is a path for them to

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achieve that goal. Over time, continue to check in with the family member to verify that that is still their goal or if it has changed. Family members involved in the business who don’t align with the team will slowly erode the camaraderie of the team and create a get deal of drama.” A large percentage of family business owners are planning to retire within the next five years, but only 53% of them have a succession plan in place. If you are among the 53%, don’t miss the “Keys to Multi-Generational Family Ownership” education session at NHLA’s 2018 Convention and Exhibit showcase in Toronto, October 2-4. Josh Baron, the co-founder of BanyanGlobal, will share the five key tools that every family business can use to help set the stage for multi-generational success. NHLA members W. Garner Robinson (Robinson Lumber Co.), Jon Syre (Cascade Hardwood Group) and Jeff Wirkkala (Hardwood Industries, Inc.) will make-up the family-business panel, discussing how their family business managed multi-generational success. W W W. N H L A .C O M

DON'T MISS OUT! 1:30-2:30pm | Civic Hall South 2nd Floor

THE KEYS TO MULTI-GENERATIONAL FAMILY OWNERSHIP: STRONG ROOTS BUILD A LASTING LEGACY

Josh Baron, Co-Founder and Partner at BanyanGlobal While survival is an issue for any type of company, it is of particular concern to most family businesses. Their companies are not just sources of wealth, but also of identity, pride, and legacy. They take seriously the impact that they have on employees, customers, and communities. As a result, the cost of failure is especially high.

MEET OUR PANEL

W. â&#x20AC;&#x2039;Garner Robinson Robinson Lumber Co.

Of course, there is no sure-fire way to guarantee that a family business will endure across generations. However, experience working with hundreds of family businesses across the globe suggests that the most common pitfalls to long-term survival can be avoided by working through a similar set of issues. There is no one-size-fits-all answer, but instead a common set of questions that can best position family businesses to last for the long-term. In this session, Josh Baron will share five key tools that every family business can

Josh useBaron to help set the stage for multi-generational success. The session will combine

an overview of the tools with a panel discussion where family business leaders share their experiences in applying them. In addition, participants will have the opportunity to complete a self-assessment survey so that they can leave the session with an identification of the priorities for their own family business.

Jon Syre Cascade Hardwood Group

Jeff Wirkkala Hardwood Industries, Inc.

www.TradeTec.com 800-278-1098

TradeTec supports NHLA and its members by providing information technology solutions to connect the mill; connect the warehouse; and connect the industry. Letâ&#x20AC;&#x2122;s connect in Toronto (booth #315) to discuss the financial impact of TradeTec solutions. W W W. N H L A .C O M

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125 REASONS WHY WE ARE 125 Our diverse global team, representing over 20 nationalities.

Exploring new parts of the world, new technologies, and new wood products.

Adapting to changing markets.

Committed stewardship of our planet's forests through sustainable harvesting.

YEARS

LUMBER COMPANY

20 23 24 25 GROWI NG TO GETH E R SI NCE 1893 W W W.ROBLUMCO.COM

LOGISTICS SOLUTIONS FOR FOREST PRODUCTS Kuehne + Nagel has more than 125 years of experience in specialized transportation management and the forest product market specializing in lumber and logs. Our solutions can help you optimize freight costs throughout the entire supply chain and minimize demurrage and detention issues.

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Flyer1.indd 1

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3558 Williamson Trail Liberty, PA 16930-9065 USA P: 570-324-6042 • F: 570-324-2127 WheelandLumber.com 2018 Impact Advertising • 18WLC-PQC-NHLA-ProgramAd

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RULES CORNER

NHLA ANNOUNCES Two New Programs To Increase Your Sawmill's Bottomline by DANA SPESSERT, NHLA Chief Inspector

ince its inception, NHLA has strived to be a partner with its members to enhance their businesses in manufacturing lumber and products from hardwood logs. The NHLA Rules were established to ease and streamline trade between manufacturers of lumber, hardwood products and everything in between. As the industry continues to evolve, the NHLA Inspection Services team continues to expand its services and programs to provide value to your company. It is with great pride that I announce two new programs . . . the NHLA Yield Analysis Study and Quality Control Program. With the uncertainty of today’s global and domestic markets, hardwood companies need to have a very firm grasp of their costs and margins. In my experience, lumber prices may fluctuate but log cost seem to only go up! For a sawmill, raw material costs can be as high as 80% of the overall costs. While most companies have a great understanding and control of their manufacturing costs to produce lumber, the question becomes “Do they have a good understanding of the potential of their raw materials?” After all, while a 3% reduction in costs to manufacturers is great, a 3% increase in yield will reduce raw material costs, while also lowering the manufacturing costs.

Left to right: Roman Matyushchenko, Thomas Byers, Mark Bear, Dana Spessert, Simon Larocque, Jack English and Barry Kibbey. Not pictured Kevin Evilsizer.

Through the NHLA Yield Analysis beta testing phase performed earlier this year, an average of $430,000 in potential annual revenue increase (per facility) was identified. NHLA is here to help. By having accurate and detailed information on everything from lumber recovery factors to grade yields by log grades and diameter classes, a manager can make split decisions on the price to pay for raw materials and have a better understanding of the lumber yields. There is an old saying, “You cannot manage what you do not measure.” This is a very true statement that should resonate with every

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manager in manufacturing. Along with the detailed raw materials study, the NHLA Inspection Services team is also offering an extensive quality assessment of the sawmill and lumber yard.

in order to set benchmarks. I believe, these benchmarks will be the performance catalyst to move the hardwood industry in to the future of sustainable and profitable manufacturing practices.

Depending upon the type of operation, NHLA is able to offer more than 15 different tests and our National Inspectors are prepared to partner with the company to initiate and deliver measurable results on the entire manufacturing process.

I would encourage everyone reading this article to join me when I present: Loss Profit Recovery Made Possible by the NHLA Yield Analysis Study on Wednesday, October 3 at 3pm.

The evaluation will identify weaknesses in machine capabilities and/or personnel training and offer solutions and training for these deficiencies. Companies who have opted in to these programs agree to have their data confidentially averaged and compared with others in the program

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If you are unable to attend this educational session, please contact me directly so I can explain how your company can benefit from this program. Contact Chief Inspector Dana Spessert at d.spessert@nhla.com or 901-399-7551.

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TRAIN YOUR EMPLOYEES. BOOST REVENUE. Enroll your staff in our next 12-week Inspector Training School Program.

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www.awscontractorsinc.com W W W. N H L A .C O M

Member

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EDUCATION & TRAINING For hardwood business owners and their employees Register for classes at www.nhla.com/calendar

OCTOBER

9-11 Intro to Hardwood Lumber Grading

Intro class to gain a basic understanding of the NHLA hardwood lumber grading rules and how the rules affect the value of lumber. Venue: HHP Inc. Henniker, NH Instructor: Jack English, NHLA National Inspector

OCTOBER

NOVEMBER

15-18

29-Nov. 16

27-Dec. 7

Intro to Hardwood Lumber Grading

Inspector Training School Progressive Program BLOCK 3

Intro class to gain a basic understanding of the NHLA hardwood lumber grading rules and how the rules affect the value of lumber. Venue: WV Wood Technology Center / Elkins, WV

Alternative program to the 12week Inspector Training School Block 1: Two weeks of hands-on training Block 2: Online study time Block 3: Three weeks handson training and testing

Instructor: Barry Kibbey, NHLA National Inspector

Venue: NHLA Headquarters Memphis, TN

Instructor: Rich Hascher, NHLA ITS Instructor

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! 9-11 w e N Walnut

Lumber Grading

This seminar is designed to teach Walnut lumber grading. This is the only species that will be discussed. Venue: Missouri-Pacific Lumber Co., Inc. / Fayette, MO Instructor: Mark Bear, NHLA National Inspector

Inspector Training School Progressive Program BLOCK 1

Alternative program to the 12week Inspector Training School Block 1: Two weeks of hands-on training Block 2: Online study time Block 3: Three weeks handson training and testing

OCTOBER

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EDUCATION IS KEY TO YOUR COMPANY’S SUCCESS "No better place to start in the lumber/forest industry. That knowledge can carry you in many avenues of our industry." —Michael Klingler, NHLA Inspector Training School 116th Class

For Inspector Training School info visit www.nhla.com/education/inspector-training-school

JAN. 2019

MARCH

APRIL

8-March 29

11-29

8-19

29-May 1

Inspector Training School 188th Class

Inspector Training School Progressive Program BLOCK 3

Inspector Training School Progressive Program BLOCK 1

Intro to Hardwood Lumber Grading

Traditional 12 week hands-on training to achieve the certificate of completion in Hardwood Lumber Inspection. Venue: NHLA Headquarters Memphis, TN Instructor: Rich Hascher, NHLA ITS Instructor

AUGUST

12-23 Inspector Training School Progressive Program BLOCK 1

Alternative program to the 12week Inspector Training School Block 1: Two weeks of hands-on training Block 2: Online study time Block 3: Three weeks handson training and testing Venue: NHLA Headquarters Memphis, TN

Alternative program to the 12week Inspector Training School Block 1: Two weeks of hands-on training Block 2: Online study time Block 3: Three weeks handson training and testing

Venue: NHLA Headquarters Memphis, TN

Instructor: Rich Hascher, NHLA ITS Instructor

Intro class to gain a basic understanding of the NHLA hardwood lumber grading rules and how the rules affect the value of lumber. Venue: NHLA Headquarters Memphis, TN Instructor: Rich Hascher, NHLA ITS Instructor

SEPTEMBER

4-Nov. 22 Inspector Training School 190th Class Traditional 12 week hands-on training to achieve the certificate of completion in Hardwood Lumber Inspection. Venue: NHLA Headquarters Memphis, TN Instructor: Rich Hascher, NHLA ITS Instructor

Instructor: Rich Hascher, NHLA ITS Instructor W W W. N H L A .C O M

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JOB BOARD LUMBER INSPECTOR

Scotland Hardwoods needs a lumber inspector who specializes in hardwoods. Experience Required. Excellent pay and benefits package included. Salary: Commensurate with experience. How to Apply: Email your resume to jbarone@rossilumber.com or fax to 860-423-1969. Scotland Hardwoods 117 Ziegler Road | Scotland, Connecticut 06264 Phone: 860-423-1233 | Fax: 860-423-1969

SAWMILL MANAGER

Scotland Hardwoods is in need of a Sawmill Manager to oversee a fully computerized hardwood sawmill, motivate and train employees, improve production quotas and maintain a safe workplace. A minimum of three years of experience is required. Salary: Commensurate with experience. How to Apply: Please send resumes to j.barone@rossilumber.com or fax to 860-423-1969. Scotland Hardwoods 117 Ziegler Road | Scotland, Connecticut 06264 Phone: 860-423-1233 | Fax: 860-423-1969

SAWYER

Scotland Hardwoods is seeking an experienced production grade sawyer needed for fully computerized mill. Only experienced sawyers should apply. Excellent pay and benefits package included. Salary: Commensurate with experience. How to Apply: Email your resume to jbarone@rossilumber.com or fax to 860-423-1969.

* To view current job postings or to post a job, visit www.nhla.com/industry-services/job-board.

Scotland Hardwoods 117 Ziegler Road | Scotland, Connecticut 06264 Phone: 860-423-1233 | Fax: 860-423-1969

Providing personalized logistics services to the forestry industry for over 40 Years. Come see us at Booth 310 in Toronto!

G COMIN ER B DECEM 2018

ATTENTION NHLA Sustaining Members

Introducing the 2019 NHLA Suppliers Guide

Introducing the 2019 NHLA SUPPLIERS GUIDE

Make this a part

of your 2019 Marketing Plans!

• Organized by product or service • Distribution in the December 2018 edition of Hardwood Matters and at various tradeshows throughout 2019 Contact us at rates@asflogistics.com or 251-445-6781 for your personalized quote. Visit our website at www.asflogistics.com.

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It’s a one-time cost that takes care of you all year long. For more information please contact: John Hester, Director of Membership and Business Development at 901-399-7558 or email j.hester@nhla.com Vicky Simms, Member Development Manager at 901-399-7557 or email v.simms@nhla.com W W W. N H L A .C O M

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THANK YOU TO OUR 2018 SPONSORS NHLA Annual Convention & Exhibit Showcase

Premier Sponsor ALDER LEVEL SPONSOR Cascade Hardwood Group WALNUT LEVEL SPONSOR Upper Canada Forest Products, Ltd. CHERRY LEVEL SPONSORS Baillie Lumber Co. Pennsylvania Lumbermens Mutual Insurance Co. MAPLE LEVEL SPONSORS Abenaki Timber Corporation Allegheny Wood Products American Wood Technology, LLC Brewco, Inc. Cherry Forest Products Cole Hardwood, Inc. DMSi Hardwoods Specialty Products Interglobo Morra N.A., Inc. King City/Northway Forwarding Ltd. Matson Lumber Co. McGriff Insurance Services National Forest Products Practice

Northwest Hardwoods Robinson Lumber Co. SII Dry Kilns Tioga Hardwoods, Inc. TMX Shipping, Co. TradeTec Uâ&#x20AC;¢C Coatings, LLC USNR WoodEye Wood-Mizer, LLC BIRCH LEVEL SPONSORS Ressources Lumber, Inc. RED OAK LEVEL SPONSORS ACES Division of Kuehne + Nagel, Inc. Alan McIlvain Co. Ally Global Logistics LLC Anthony Oak Flooring, Inc. APP Timber, Ltd. Atlanta Hardwood Corp. Breeze Dried, Inc. Carl Rosenberry & Sons Lumber, Inc. Continental Underwriters, Inc. Cummings Lumber Co., Inc.

DV Hardwoods Falcon Lumber, Ltd. Frank Miller Lumber Co., Inc. Graf & Thomas Lumber Co. Hardwood Distributors Association Hardwood Industries, Inc. J.D. Irving Ltd./Hardwood Division Maley & Wertz, Inc. McClain Forest Products Missouri-Pacific Lumber Co., Inc. MM Industrial Sales Moss Lumber Industries, Inc. National Hardwood Magazine Oaks Unlimited Ontario Ministry Natural Resources & Forestry Pike Lumber Co., Inc. Quality Hardwoods, Inc. Quality Hardwoods, Ltd. Ron Jones Hardwood Sales, Inc. TRN USA Forest LLC TS Manufacturing Co. Thompson Appalachian Hardwoods Inc. Thompson Hardwoods, Inc. Wheeland Lumber Co., Inc.

SAVE THE DATE: OCTOBER 2-4, 2019 | SHERATON NEW ORLEANS HOTEL | NEW ORLEANS , LOUISIANA