2019 September 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 September 2019

Year Two of the US-China Trade War Begins: Where do we go from here?

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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CONTENTS September 2019 • Issue 204

WHAT'S INSIDE 16

feature 16

Year Two of the US-China Trade War Begins: Where do we go from here? By Michael Snow

departments 6 10 14 20

Inside NHLA Education Spotlight

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TOP POST OF THE MONTH at facebook.com/NHLAOfficial National Inspector Kevin Evilsizer recently completed a short course for the Missouri Department of Agriculture & Missouri-Pacific Lumber Company (MO-PAC)! Trained employees are crucial to your business's success. Learn more about our educational offerings by visiting www.nhla.com/education.

ITS Class Graduation

Legislative Log Transportation Issues Roll Along

Rules Corner Ask the Chief

reader services 4 24 26

ONLINE

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.

MISSION LEADERS

Darwin Murray McClain Forest Products President

Bucky Pescaglia Missouri-Pacific Lumber Co., Inc. Unique Services

Jeff Wirkkala Hardwood Industries, Inc. Vice President

Kevin Gillette Tioga Hardwoods, Inc. Rules

Brent Stief Huron Forest Products, Inc. Past President 2016-2018

Mike Powers Maley & Wertz, Inc. Industry Advocacy & Promotion

NHLA STAFF Lorna D. Christie CEO l.christie@nhla.com Amanda Boutwell Marketing and Communications Manager a.boutwell@nhla.com

ADVERTISER INDEX

Renee Hornsby Director of Communications/Editor r.hornsby@nhla.com

27 American Wood Technology, LLC 23 Baillie Lumber Co. 28 Banks Hardwoods, Inc. IBC DMSi 12 eLimbs 23 Fr. Meyer's Sohn NA LLC 23 Hurst Boiler 5 King City/Northway Forwarding 27 Ohio Woods Products IFC Pike Lumber Company, Inc. 3 RossiGroup 27 Signode Industrial Group 7 TallyExpress by DMSi 13 TMX Shipping Co. 15 USNR 9 Wood-Mizer, LLC

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

For advertising, convention sponsorships and exhibit booth sales contact: John Hester, Director of Membership and Business Development at j.hester@nhla.com or 901-399-7558 or Vicky Simms, Membership Development Manager at v.simms@nhla.com or 901-399-7557

EXECUTIVE COMMITTEE

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■■■ 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 Jens Lodholm Data Administration Specialist Carol McElya Inspector Training School Administrator

Jon Syre Cascade Hardwood, LLC Structure David Mayfield Mayfield Lumber Co. Membership & Networking COMMITTEE CHAIRS Stephanie VanDystadt DV Hardwoods, Inc. Membership Rob Cabral Upper Canada Forest Products, Ltd. Promotion & Advocacy Garner Robinson Robinson Lumber Company Convention Scott Cummings Cummings Lumber Company, Inc. Inspection Services Bruce Horner Abenaki Timber Corp. ITS/Continuing Education John Griffin Frank Paxton Lumber Communications & Marketing Joe Snyder Fitzpatrick & Weller, Inc. Rules

Roman Matyushchenko Associate Dean of Education Vicky Quiñones Simms Membership Development Manager Dana Spessert Chief Inspector Rachel Spiers Marketing Associate r.spiers@nhla.com

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PRESIDENT’S MESSAGE

WOMEN IN

LEADERSHIP

W make up for in effectiveness.

omen leaders in the hardwood industry . . . now here is a topic you don’t see often in the pages of Hardwood Matters or any other industry publication. There is no debate that the female leaders in our industry are in a minority, but what they lack in numbers, they

Consider the leading hardwood companies that have been successfully run by women for years, or the family-run companies that helped build our industry. Even in our early years “Dad” was in charge of the external sales and operations while “Mom” worked behind the scenes, ensuring everything else ran smoothly. Today, her title would likely be Chief Operations Officer! Women in leadership roles are becoming more common and visible as both brothers and sisters are moving into executive roles in our family-run companies. In fact, family businesses are incubators for female leaders, and have generated many female senior executives. As our industry has evolved, so have the contributions of female leaders. And there are plenty of reasons why we should offer encouragement. Research tells us that teams made up of both men and women perform better because the different viewpoints often enable better problem solving and ideas that allow businesses to be more successful. With that in mind, it makes sense that gender diverse businesses do better financially than those dominated by one gender.

With that in mind, the Board of Managers recently approved the creation of the NHLA Women in Leadership Award to recognize the contributions of women leaders from our past, present, and future. Our goal in offering the award is to stimulate networking opportunities for women, and in doing so, help facilitate their career growth, while at the same time recognizing women with exemplary performance. The awards ceremony will be held at the NHLA Annual Convention beginning this year in New Orleans. The Board of Managers in conjunction with NHLA staff have chosen a candidate for 2019 to be recognized in New Orleans. Going forward, a process will be developed where members can submit names for consideration. If you know a woman with a proven track record of contributions at their company and to the industry, inspires others through her work, ideas and example, or gives back to the community through their time, talent and/or resources, submit their names to NHLA. I look forward to seeing you in New Orleans.

Darwin Murray, NHLA President McClain Forest Products dmurray@mcclainforestproducts.com

It has been my experience that there is no one size fits all for leadership, no perfect leadership profile. What is important to recognize, while male and female leadership styles can be completely different, having both at the table can translate into increased profits. The visibility of female role models plays a significant role in inspiring other women to pursue similar careers, and to define their own path moving forward.

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INSIDE NHLA

Exciting news at NHLA NHLA is very pleased to announce the promotion of Roman Matyushchenko to the position of Associate Dean of the Inspector Training School. Roman has been with NHLA for 6 years, serving as an NHLA International Inspector. During that time, Roman has gained experience in several areas of the hardwood industry that will assist NHLA in offering new educational opportunities. He has witnessed many obstacles that the international markets are facing and is going to be a vital part of our new and improved educational strategy. As Associate Dean of the School, Roman will bring his lumber grading knowledge, hardwood market awareness and teaching experience to build new educational activities, implement innovative teaching practices and expand the School's outreach. Roman will work alongside veteran ITS Instructor Rich Hascher as we continue the great standard that Rich has set over the last 27 years. Please join us in welcoming Roman to the School and Memphis! Roman can be reached at 901-399-7569 or r.matyushchenko@nhla.com

NHLA is also pleased to announce the promotion of Carol McElya to the position of Inspector Training School Administrator. Before accepting this position, Carol held the title of NHLA Accounting Specialist for 5 years. Carol is an idea generator and handles stress and simultaneous demands with a smile! She will use these attributes along with her highly developed organizational skills to help elevate the School experience to the next level. Carol can be reached at 901-399-7563 or c.mcelya@nhla.com

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INSIDE NHLA

Hardwood Promotion Collaboration: A Search for Answers

he hardwood industry is in the midst of unprecedented market challenges. We are all looking at an uncertain future as our markets continue to shrink and the world economy slows due to, among other things, an uncertain trade war with China. We have a wonderful story to tell about the beauty and desirability of the products, the history of the industry, our family business focus, the sustainability of our raw material, and the environmental and health benefits of using hardwood. Despite the best efforts of hardwood leaders, the industry has not yet been successful in developing a coordinated and collaborative initiative to promote the true story and science-based benefits of real American hardwood. Stiff competition from vinyl,

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plastic, ceramic and concrete products, and continued misleading campaigns about the sustainability of wood products are allowing our competitors and adversaries to frame public opinion and gain significant market advantage.

Call to Action

In August, a small group of hardwood association executives came together to brainstorm opportunities to develop a collaborative effort to promote North American hardwoods. Recognizing the need to be more inclusive, a follow up meeting was held with 19 hardwood association executives and association board members. A key take away from the meeting was the agreement that different industry segments may have different, yet complimentary, promotional needs. Recognizing those differences would be the first step in creating promotional activities that the entire industry could embrace. W W W. N H L A .C O M

PLEASE JOIN THE HARDWOOD PROMOTION DISCUSSION ON FRIDAY, OCTOBER 4 2:30PM AT THE 2019 NHLA ANNUAL CONVENTION & EXHIBIT SHOWCASE Learn about a new Hardwood Promotion Collaboration that is seeking ways to reach consumers and their influencers with messaging on Real American Hardwoods. This session will provide information on who is participating, goals and progress to date, and the next steps. Attendees will have a chance to ask questions and understand how to get involved in the future.

Moving Forward

By the end of the meeting the group agreed to move forward in a way that is open and engages all members of the diverse hardwood community, receiving input and respecting the differences of the various industry segments. Stage 1 – Identify and Assess Current Marketing Resources The group agreed to identify existing promotion efforts, research projects, advocacy efforts, and data related to consumer trends and competing product availability. Once we know what we have, we can identify what we need. This information will help us develop the strong brand statement we will need to effectively promote hardwood products. The effort to collect this information has already begun. Stage 2 – Collaborate to Educational Influencers The second priority is to identify university architecture and design school courses and competitions related to the use of hardwood. Once identified, we can share existing educational materials and recommend industry experts willing to participate in classroom presentations.

Stage 3 – Welcome Increased Collaboration Third, and probably most importantly, we must also identify and welcome all those who have an interest in working with us . . . and create a process that encourages and allows engagement in different, yet complimentary ways. A team has been identified to draft communication materials that can be widely shared at industry meetings over the next several months. Future meetings (to be scheduled soon) will be open to interested associations and companies alike. And communications about strategy development and implementation will be available to all. The task before us all, as members of the U.S. hardwood industry, is not an easy one. However, there is great optimism that if we can work together, we can overcome the obstacles we face. For more questions and information, please send a note to hardwoodpromotion@gmail.com.

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EDUCATION SPOTLIGHT

NHLA and NTC Partner for a 3rd Time to Graduate Seven Students from the 189th Class of the NHLA Inspector Training School

Front (L-R): Collin Foth, Rich Hascher, Jeremy Hopkins Back (L-R): Aaron Hoffman, Walter Rea, James Ulrick, Steve Moneel, Steve Au

he National Hardwood Lumber Association celebrated the graduation of the 189th class of the Inspector Training School on Friday, July 26, 2019 with seven students completing the program. These students completed the 10-week summer program with Inspector Training School instructor, Rich Hascher at Northcentral Technical College in Antigo, Wisconsin. “NHLA is proud to have a long-championed partnership with Northcentral Technical College,” said Dana Spessert, NHLA Chief Inspector & Dean of Education. “This makes the third collaboration

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with NTC since 2011, and I would like to personally thank Wood Science Instructor, Travis Allen for his outreach and support. Bringing the Inspector Training Program to the NTC Wood Science Center is a great complement to our agenda and we look forward to continuing this partnership in the future." Enrollment is now open for the 190th class, which begins at NHLA headquarters in Memphis, Tennessee on Sept. 4. To enroll or learn more about the program please visit www.nhla.com. W W W. N H L A .C O M

GRADUATES OF THE 189TH CLASS: Steve Au, Dong Guan Cheng JI Wood Co. LTD. Collin Foth, Central Wisconsin Lumber, Inc. Aaron Hoffman, Zabel’s Sawmill Jeremy Hopkins, River City Hardwoods, Inc. Steve Moneel, Buchman Lumber LLC

UNTRAINED EMPLOYEES ARE

COSTING YOU MONEY! ining and Tra n io t a c e Edu rovides ttom Lin NHLA P prove Your Bo To Im

Walter Rea, Chitko Bros. Lumber LLC James Ulrick, Granite Valley Forest Products/ Marathon City Branch

Tim Kassis, a graduate of the 52nd Class and a retired Export Sales Manager for Krezt Lumber presented the individual achievement awards. Outstanding individual awards recipients were as follows: Walter Rea – ITS Educational Foundation Award for Highest Overall Average Steve Au – Howard Hanlon Award for Second Highest Overall Average Collin Foth – Westside Hardwood Club Award for Highest Board Run Average James Ulrick – J.P. Hamer Award for Most Improved Student Jeremy Hopkins – NHLA Award for Best Attitude/ Citizenship

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LEGISLATIVE LOG

TRANSPORTATION ISSUES ROLL ALONG by DANA COLE, Executive Director Hardwood Federation

he Hardwood Federation team in Washington has been hard at work this year focused on the trade dispute with China and educating high-level decision makers in the Administration and Congress about the effects retaliatory tariffs are having on our sector. While this issue has occupied the bulk of our attention and resources, it is difficult to guess what will happen between writing this piece and the publication date. Tensions with China show no signs of easing in the foreseeable future, so the Federation team will be more than busy through the end of the year. Although the trade situation seems all consuming, there are important policy issues that are advancing in Congress in which we are also engaged. Primary among them is transportation. In July, just before the annual August recess, the Senate Environment and Public Works Committee approved a 5-year highway bill. S. 2302 (Americaâ&#x20AC;&#x2122;s Transportation Infrastructure Act of 2019) would replace the current highway bill known as the FAST (Fixing Americaâ&#x20AC;&#x2122;s Surface Transportation) Act which is scheduled to expire in the fall of 2020.

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Two notable provisions in this bill would grandfather truck weight limits on state roads in North Carolina and Kentucky that are slated to become interstate highways. In North Carolina, trucks travelling on state roads may haul up to 90,000 pounds. Several state roads, including critical arteries that serve forest products facilities near the coast, have been posted with signs recently indicating that they will be converted to federal interstates. If this occurs without enactment of a grandfather provision, the weight limit on these routes would automatically drop to 80,000 pounds, which is the maximum weight that trucks can operate on interstate highways. Maintaining a 90,000 pound limit on these routes is critical in terms of fewer truck trips and lessened impact on infrastructure, reduced fuel consumption and preserving the overall competitiveness of facilities that rely on freight and raw material that travel over these roads. A similar provision is included in the bill for Kentucky, where state roads have an 88,000 pound weight limit. W W W. N H L A .C O M

While only affecting two states, inclusion of the grandfathering language is helpful in setting the table strategically for enactment of the Safe Routes Act (H.R. 2453/S. 1509) as part of the overall highway bill reauthorization effort. Safe Routes is a simple, practical bill that would allow trucks loaded with raw forest products traveling at the maximum gross vehicle weight on state roads to access interstate highways at these higher weights. As is the case in Kentucky and North Carolina, a number of states around the country maintain higher weight limits for state roads than are permitted on the interstate. This has created a situation where large trucks are forced to travel on two lane roads through small towns, over rail road crossings, through cross walks, stop signs and school zones instead of on highways that are designed and engineered to handle these rigs. A few years ago, truck weight pilot programs were enacted for Maine and Vermont allowing heavier trucks to travel on the interstates. Data collected shortly after these pilots took effect showed that truck accidents decreased 25 percent and fatalities were reduced by 37 percent. In addition to increased safety,

include provisions of H.R. 2453 in any transportation reauthorization bill that the committee develops. The House is far behind the Senate in writing a new highway bill and is not expected to unveil a draft bill until early 2020. The objective of the Federation is to work toward including the Safe Routes language in the House version of a highway bill and then, subsequently, into any final deal that is sent to the President.

Attend the 2019 Hardwood Federation Fly-In, September 17-19 To register visit www.hardwoodfederation.com Dana Lee Cole Executive Director dana.cole@hardwoodfederation.com (202) 463-2705

the Safe Routes Act will deliver efficiencies in the supply chain as usually the most direct route from logging site to a hardwood mill includes an interstate highway segment. Rep. Mike Gallagher (R-WI), who sits on the influential House Transportation & Infrastructure Committee, is championing this measure in the House and is working hard with his colleagues on the committee to

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Year Two of the US-China Trade War Begins: Where do we go from here? by MICHAEL SNOW, Executive Director AHEC

t the time of this writing, year two of the US-China trade war is underway, and there is no end in sight. On August 1st President Trump announced the imposition of tariffs on the final $300 billion worth of Chinese imports—effectively impacting all Chinese exports to the United States. Conventional wisdom held that since the US exports far fewer products to China, their ability to retaliate would be limited. Conventional wisdom was wrong. Within 24 hours of the President’s tweet, the Chinese allowed their currency to depreciate to more than 7 RMB to the Dollar for the first time since 2008. The weaker Chinese currency makes Chinese exports more competitive and imports more expensive, effectively dampening the impacts of US imposed tariffs and magnifying the effects of Chinese tariffs on US goods. Perhaps the most damaging aspect of the trade war, however, is simply the creation of market uncertainty—and nowhere is that more striking than in the hardwood lumber industry. In this article, I will take a brief look at the history and impacts of the trade war so far, as well as discuss other potential markets that may help pick up some of the volume lost.

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HOW DID WE GET HERE? In order to understand where we are in the Chinese market, it is important to understand where we were before the trade tensions began to dominate the headlines. It’s a well-known, and often-cited statistic that nearly half of all grade lumber produced in the US is exported, and half of all exports were destined for China. In other words, nearly one out of every 4-grade boards ended up in China pre-trade war, so it is no surprise that we are now seeing extreme ripple effects throughout the industry. It is also true that the Chinese economy was showing signs of a slow down before the trade war erupted—and there are significant underlying weaknesses in the Chinese economy—although our industry had not yet felt the impacts. In fact, as can be seen in Graph #1, 2018 started at a record pace for hardwood lumber exports, increasing 10% over the previous record year of 2017. As additional rounds of tariffs that affected the Chinese

woodworking and furniture industry were announced, markets began to tighten, and hardwood exports dropped sharply. President Trump announced on September 17, 2018 that tariffs would go into effect at 10% and would increase to up to 25% on January 1, 2019. This led to a brief rush of purchases in October 2018 to try and beat the planned tariff increases, and then exports to China dropped to historic lows in November and December. Low purchasing levels continued into the spring of 2019, but reports seemed hopeful that an agreement would be reached. All of that changed on May 5, when President Trump announced that tariffs would increase to the full level just five days later. China matched the tariff increases starting June 1, which, among other factors, led to a June market for hardwood lumber in China that was 50% less by volume than in the previous year. The results have been devastating. In the twelve months since the trade war began, the US hardwood lumber industry has seen sales to China decline by more than $651 million, and that total only includes one month of trade at the full tariff rate! For some individual species, the results have been even more dramatic. Graph #2 shows the volume changes for US hardwood lumber exports to China over the first half of 2019, along with appropriate tariff level for each species. It is no surprise that red oak has been particularly hard

Graph #1

Graph #2 W W W. N H L A .C O M

It’s a well-known, and often-cited statistic that nearly half of all grade lumber produced in the US is exported, and half of all exports were destined for China. hit as pre-trade war China accounted for nearly 80% of all red oak exports. For the first half of 2019, red oak lumber to China declined by more than 72 million board feet compared to the same time period in 2018. When you consider that all exports of all species to the 28 countries of the EU over that same time period totaled 72 million board feet, the scale of the red oak crisis comes sharply into focus. Some species, like tulipwood/ yellow poplar have seen dramatic decreases in spite of only having a 5% tariff imposed. This is because a large percentage of Chinese furniture

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If we, as an industry are to fully recover from this downturn, we must not only continue to develop export markets but must also win back market share from nonwood substitutes right in our own backyard. Graph #3

Graph #4 being made with yellow poplar was used for exports – meaning a piece of furniture made in yellow poplar destined for customers in the United States gets hit with tariffs twice: 5% on the lumber coming in and 25% on the furniture going back to the US. WILL THE CHINESE MARKET EVER COME BACK? Even if the trade war were to end tomorrow and all tariffs lifted, it is hard to imagine the Chinese market returning to pre-war levels any time soon. While it is true that Chinese imports from all sources have declined slightly over the past 18 months, (see Graph #3) it is US exporters that have absorbed the contraction—and then some! Our market share in China has fallen from 31% in 2017 to 18% through the first half of 2019. Other suppliers have been quick to fill the void, and history shows that once change has been forced on supply chains, they are difficult to change back. From an environmental perspective as well, the damage from the trade war is only now beginning to be understood. With the loss of a sustainable,

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legal supply from the US, many Chinese firms have been turning to sources of dubious legality from countries such as Russia. As any student of Chinese history knows, that country’s “Century of Humiliation” began when China capitulated on trade to the west following the Opium War and was forced to surrender Hong Kong as well as other strategic ports. The current Chinese leadership will not forget that fact and are unlikely to respond positively to threats and increased pressure. It seems far more likely they will be content to wait out the 2020 US elections. And that is a real loss for our industry, as despite the recent slow-down there is still considerable “upside” in the Chinese market, particularly in the interior cities that are the focus of the Chinese end of the “Belt and Road Initiative”. There are still a lot of office buildings, hotels, retail centers and housing units to be built in the developing west, and all of those will need flooring, doors and furniture. The question is, will those be made of wood and if so, who will provide it? ARE THERE ANY OTHER MARKETS THAT CAN HELP OFFSET THE LOSSES TO CHINA? The short answer is unfortunately no—at least in the short run. As Graph #4 makes clear, when it comes to hardwood lumber importers, China is quite simply in a league of its own. What has made China such an attractive market for US exporters is the fact that the vast majority of wood shipped to China was processed with the end product also being consumed in China. It was very much domestic Chinese demand from the growing middle class that fueled our 15-year run of year-on-year growth—and the Chinese middle class loves red oak! There has been much discussion of the emergence of Vietnam, and it is true that the country has shown considerable growth potential

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Graph #5 and is up an additional 14% through the first six months of 2019. Unfortunately, Vietnam is not and never will be China. The country lacks the infrastructure to continue growing indefinitely, and almost all of Vietnam’s hardwood imports are used in the re-export furniture market not in the local market. To put Vietnam’s market size into perspective, US hardwood lumber exports to China are down 212.6 million board feet in the first half of 2019. This volume is roughly the same amount of lumber as was shipped to Vietnam in all of 2018 and actually exceeds the total amount of lumber we shipped to the European Union and Southeast Asia combined over that same time period (see Graph #5). Even if domestic consumption of hardwood products in Vietnam were to increase dramatically, that country’s population of 96 million is a far cry from China’s 1.4 billion. After Vietnam, the only top ten market for US hardwood lumber exports to show year-on-year growth through June is the United Kingdom, which increased 2%--and that market is under threat as many economists fear that a “no-deal Brexit” could lead to a collapse of the Pound as early as this November. A potential wild card—in the long run at least—is India.With a population poised to overtake China’s and a large, educated middle class India could one day be a major consumer of hardwoods. That day seems far off at present, however, and even the 200% increase in US lumber exports for the first half of this year to India only totaled 838,000 board feet.

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One final thought—a closer look at Graph #4 shows that after China, it is actually the United States that is the world’s second leading importer of hardwood lumber. If we, as an industry are to fully recover from this downturn, we must not only continue to develop export markets but must also win back market share from non-wood substitutes right in our own backyard.

To learn the latest news about international hardwood markets, make sure to attend Mike Snow’s educational seminar on

FRIDAY,OCTOBER 2 AT 1PM during the 2019 NHLA Annual Convention in New Orleans.

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RULES CORNER

ASK THE CHIEF

Let's Discuss the First Lineal Foot Rule by DANA SPESSERT, NHLA Chief Inspector

QUESTION: “Does the First Lineal Foot rule apply to the 1 Common side of an FAS One Face board?”

“Wane shall not exceed on either edge of the piece over one-half the length in the aggregate.” – page 14, paragraph 57

To answer this question, let’s take a look at the FAS One Face Rule found on page 16, paragraph 64 of the 2019 NHLA Rules Book, first paragraph:

“Shall grade not below FAS on the better face for the particular species, and not below No. 1 Common on the reverse side. The reverse side of the cuttings in both FAS and No. 1 Common are not required to be sound.”

If you look closely at the wording, it states that each face is graded independently from each other, indicating that each side of the board has its own requirements. For the FAS side, that would include all six defect limitations, including paragraph 59, as stated below:

“Within one lineal foot from the ends of the boards of standard lengths, there must be 50% clear wood and not less than 25% of sound wood in the aggregate.”

One of the more confusing things about FAS One Face is that the board can have wane that exceeds 1/3 the width, as long as that face will cut FAS in clear face cuttings and that all six limitations are met.

Dana Spessert, NHLA Chief Inspector can be reached by email at d.spessert@nhla.com or at 901-399-7551.

SAVE THE DATE: SEPTEMBER 26

For the 1 Common side, there is only one defect limitation for the grade of 1 Common, and this is listed on page 17, paragraph 72: “No piece shall be admitted which contains pith, boxed or showing, exceeding in the aggregate one-half its length.” This brings us to the last part of the explanation, the defect limitation specifically for FAS One Face.

“Wane on the No. 1 Common side is limited to the following: the width of wane from both edges, when added together, cannot exceed 1/3 the total width of the piece. The total length of wane on either edge cannot exceed 1/2 the length.” – The second paragraph under the FAS One Face rule located on page 16, paragraph 64.

As you can see, the wane for the FAS One Face is limited only on the 1 Common side of the board, because it is already limited on the FAS side from the wane limitation listed under FAS as one of the six defect limitations.

S E P T E M B E R 2 0 1 9 H A R D W O O D M AT T E R S

RULES CORNER GOES LIVE Every month we invite you to join us as NHLA Chief Inspector, Dana Spessert, answers your lumber-grading questions LIVE on Facebook. Please follow us on Facebook at NHLA_Official to receive notifications of our live broadcasts. The next “Live with the Chief” will be held on September 26, 2019 at 1:30pm Central. Everyone is welcome to send in questions in advance by emailing r.spiers@nhla.com.

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“

“In August, Harold White Lumber was proud to participate in one of the greatest programs NHLA has ever offered! The NHLA Sawmill Yield Analysis Study. The in-depth comprehensive study uncovered substantial areas for our sawmill to improve overall yield and reduce manufacturing costs. Our entire log and sawmill team was completely on board. I have the highest praise for the NHLA team of Dana Spessert, Mark Bear and Tony Parks. Their wealth of knowledge and problem solving was amazing. In today’s perilous markets; this is a program that every mill cannot afford to not participate in! In less than 2 weeks production, I will more than make up the cost of the study and affect my bottom line annually over $500,000! WTG NHLA!”

Ray White, Harold White Lumber

Announcing NHLA's Quality Control Services, our newest Members Only Benefit Because You Can't Manage What You Don't Measure! The complexity of today's global markets requires new tools to reduce costs and increase profitability for sawmill owners. To meet that demand NHLA is proud to announce the launch of the Sawmill Yield Analysis Study and Quality Control Checks.

After completing the Sawmill Yield Analysis study, Quality Control Checks can be performed on a monthly or quarterly basis to ensure the profits continue to move in the right direction. Check-ups include customized education designed exclusively for your mill employees.

The Sawmill Yield Analysis Program reviews the sawmill process from log selection to the end product and measures every step in-between. The purpose of the study is to enhance operations, reduce costs and help you squeeze more profit from every log.

Interested in learning more about how these member-only benefits can help your company prosper? Contact Chief Inspector Dana Spessert today at d.spessert@nhla.com or 901-399-7551.

Visit the NHLA Industry Services Booths 515 and 614 during the 2019 NHLA Convention or contact Dana Spessert today!

National Inspector Spotlight

IT’S ALL ABOUT WHO YOU

KNOW

NHLA helps hardwood companies achieve profitability and solve their top business challenges with data-driven, expert advice and hands-on training with our dedicated team of National Inspectors. How Can We Help You Reach Your Goals? Let's Talk!

Meet NHLA National Inspector Mark Bear Territory: USA - South Central and Midwest

Specialty: Dispute Resolution, Log Scaling/Grading, Lumber Inspection, Quality Control, Sawmill Management/Operation, Training, and Yield Analysis Mark Bear is a sixth-generation saw-miller and logger with over 30 years of experience in every facet of sawmill operations. Mark’s diverse skill set includes knowledge of sawing patterns and grade recovery, quality control, machine operations, sawmill management and consulting. He has a working knowledge of 25 American hardwood species and over 30 imported species and is conversational in Spanish. Mark has been a NHLA National Inspector since 2017 and graduated from the NHLA Inspector Training School in 1994. Mark can be reached at 205-295-8018 or by email at m.bear@nhla.com.

The man, the myth, the LEGEND. It’s been an honor and eye-opening experience to have Mr. Mark Bear from the NHLA in our mill for 4 days fine tuning our production. To say we’ve learned a lot is an understatement. The wealth of knowledge Mark has in this industry is remarkable. From our steel toes on up, we sincerely thank Mark for taking the time to work with us and helping us increase our services in producing quality lumber. — Tie Timber

Great Guy! Mark is an asset to our industry. He never fails to return a call and he's always willing to give advice and help any way he can. Thanks for all you do Mark. — Shane Coker, Sawmill Manager at Wellborn Cabinet, Inc.

To find the National Inspector in your area, visit NHLA.com. 22

S E P T E M B E R 2 0 1 9 H A R D W O O D M AT T E R S

W W W. N H L A .C O M

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W W W. N H L A .C O M

S E P T E M B E R 2 0 1 9 H A R D W O O D M AT T E R S |

NHLA PROVIDES EDUCATION AND TRAINING TO IMPROVE YOUR BOTTOM LINE Register for classes at www.nhla.com/education. SEPTEMBER

SEPTEMBER

3-5

3-14

Intro to Hardwood Lumber Grading

Inspector Training School Online Training Program MODULE 1

Intro class to gain a basic understanding of the NHLA hardwood lumber grading rules and how the rules affect the value of lumber.

SEPTEMBER

4-Nov. 22 Inspector Training School 190th Class

SEPTEMBER

9-Nov. 22 Inspector Training School 191st Class

Traditional 12-week hands-on training to achieve the certificate of completion in Hardwood Lumber Inspection.

Traditional 10-week hands-on training to achieve the certificate of completion in Hardwood Lumber Inspection.

Venue: NHLA Headquarters Memphis, TN

Venue: New River Community and Technical College (Nicholas County Campus) Summersville, WV

Instructor: Rich Hascher, NHLA ITS Instructor

Instructor: Mark Depp, NHLA National Inspector

S E P T E M B E R 2 0 1 9 H A R D W O O D M AT T E R S

Two weeks of hands-on training.

Venue: Northwest Hardwoods Marion, NC

Instructor: Mark Bear NHLA National Inspector

Module 2: Online study Module 3: Three weeks handson training and final testing at NHLA headquarters.

SEPTEMBER

10-12 Intro to Hardwood Lumber Grading

SEPTEMBER

16-19 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: Kennebec Lumber Co. Solon, ME

Venue: WV Wood Technology Center Elkins, WV

Instructor: Jack English NHLA National Inspector

Instructor: Mark Depp NHLA National Inspector

W W W. N H L A .C O M

UNTRAINED EMPLOYEES ARE COSTING YOU MONEY! Employee turnover, low employee morale, and hiring new employees are costly! 40% of employees who receive little or no training quit in the first year Entry-level positions face the highest level of turnover (65-80% annually) Improve Efficiency, Reduce Costs, and Increase Retention & Morale

DECEMBER

2-13 Inspector Training School Online Training Program MODULE 1 Two weeks of hands-on training.

Venue: NHLA Headquarters Memphis, TN Instructor: Rich Hascher, NHLA ITS Instructor Module 2: Online study Module 3: Three weeks handson training and final testing at NHLA headquarters.

W W W. N H L A .C O M

SEPTEMBER

OCTOBER

23-27

28-30

28-Nov. 9

Intro to Hardwood Lumber Grading

Inspector Training School Online Training Program MODULE 1

Intro class to gain a basic understanding of the NHLA hardwood lumber grading rules and how the rules affect the value of lumber.

Venue: Wood-Mizer, LLC Indianapolis, IN

Venue: Purdue University West Lafayette, IN

Instructors: Barry Kibbey, and Kevin Evilsizer, NHLA National Inspectors

Instructor: Barry Kibbey NHLA National Inspector

Instructors: Barry Kibbey, and Kevin Evilsizer, NHLA National Inspectors

Module 2: Online study Module 3: Three weeks handson training and final testing at NHLA headquarters.

Two weeks of hands-on training.

Venue: Purdue University West Lafayette, IN

JANUARY

7-March 27 Inspector Training School 192nd 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

S E P T E M B E R 2 0 1 9 H A R D W O O D M AT T E R S |

JOB BOARD LUMBER GRADER

Graf Brothers Flooring, Inc. is searching for an experienced Full-Time Lumber Grader for their South Shore, KY location. The qualified candidate will be NHLA trained or have equivalent knowledge and experience. Candidates who possess the ability to accurately apply the NHLA grading rules and have a minimum of one (1) year of experience grading green and/or kiln dried domestic lumber will be considered. Job Responsibilities: • Grade and mark all lumber sorted according to NHLA rules & guidelines • Communicate effectively with your team and other departments • Adhere to all safety standards and policies while performing all tasks safely and responsibly Qualifications and Required Skills: • 1-year experience grading green and/or kiln dried lumber • NHLA training or equivalent knowledge Salary: Based on experience. Benefits: Competitive pay. Matching 401K. Medical, dental, and vision insurance. Paid vacations and holidays. How to Apply: Please apply online at www.grafbro.com/careers/ Graf Brothers Flooring, Inc. PO Box 458 | South Shore, Kentucky Phone: 606-932-3117 | www.grafbro.com

LUMBER INSPECTOR

Northern Hardwoods is searching for a Lumber Inspector to grade lumber (Maple, Oak, Birch, Ash, Cherry, Hickory, etc.) by NHLA standards and guidelines as well as to customer specs. Expect 40 to 50 hours weekly. Qualifications and Required Skills: NHLA Certification and/or 5 years of experience grading hardwood lumber.

MILLWRIGHT

The Millwright at Kember Kreative Sawmill, Inc. will be responsible for maintenance issues, including breakdowns and troubleshooting, follow-up maintenance from previous shifts, shift rounds, completing operating work orders, and supporting operations during times of issue. Job Responsibilities: • Respond to mill breakdowns in a timely and efficient manner while working closely with area operators to resolve maintenance related issues • Identify root causes of equipment failure and make accommodations for long term fixes • Assist in developing PMs • Lead troubleshooting and maintain a log book of all maintenance related items • Communicate maintenance related issues to Plant Manager • Make work requests for required follow-up work • Be aware of maintenance issues throughout the mill • Work closely with the Plant Manager and other planners • Support crew in operating and maintaining the equipment to keep the mill operating during times of emergency or short staffing • Responsible for safety considerations for self and others • Completing safety work orders in timely manner with an understanding of priority • Lead the process of shutting down a piece of equipment the possesses a potential safety concern to workers or the equipment Qualifications and Required Skills: • 3 year industrial machining experience required. Includes bearings, hydraulics, pumps, gearboxes, etc. • 2+ years of welding and fabrication skilled • Ability to use mechanical troubleshooting equipment and techniques such as laser alignment • Experience in reliability techniques & knowledge of lubrication principals • Strong troubleshooting skills • Self-motivated leader willing to oversee a staff • Strong organizational skills • Maintain assigned lockout certifications Salary: Competitive, based on experience.

Salary: Based on experience. Benefits: Medical, Dental, Vision, Competitive Pay & Production Bonuses

Benefits: Health Insurance, Paid Holidays, Vacations, Simple IRA with Company Match

How to Apply: Apply by sending your resume via email to Jay Andrews at jandrews@northernhardwoods.com

How to Apply: Apply by sending your resume via email to Cari Francis at cari@kemberfloors.com

Northern Hardwoods 45807 HWY M-26 | Atlantic Mine, MI 49905 906-487-6410 | www.northernhardwoods.com

Kember Kreative Sawmill, Inc. 4144 Lyle Rd. | Beavertion, MI 48612 | 986-643-0101

* To view current job postings or to post a job, visit www.nhla.com/industry-services/job-board. 26

S E P T E M B E R 2 0 1 9 H A R D W O O D M AT T E R S

W W W. N H L A .C O M

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S E P T E M B E R 2 0 1 9 H A R D W O O D M AT T E R S |

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