HARDWOOD MATTERS
CELEBRATING EXCELLENCE AT THE NHLA INSPECTOR TRAINING SCHOOL
POSITIONING HARDWOOD IS A SHIFTING POLITICAL LANDSCAPE
BRIDGING THE GAP: MODERNIZING HARDWOOD DESIGN VALUES FOR TODAY'S MARKET plus
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INSIDE
EXECUTIVE COMMITTEE
Jon Syre, Chairman Cascade Hardwood, LLC
Bucky Pescaglia, Vice Chairman Missouri-Pacific Lumber Co., Inc.
Jeff Wirkkala, Past Chairman 2020-2022 Hardwood Industries, Inc.
MISSION LEADERS
Sam Glidden, ITS and ITSEF GMC Hardwoods, Inc.
Ray White, Lumber Services Harold White Lumber, Inc.
Joe Pryor, Education Services Oaks Unlimited
Rich Solano, Convention Pike Lumber Company, Inc.
Stephanie VanDystadt, Membership & Networking DV Hardwoods, Inc.
Rob Cabral, Market Impacts Upper Canada Forest Products, Ltd.
DEPUTY MISSION LEADERS
Burt Craig, Membership & Networking Matson Lumber Company
Tom Coble, Market Impacts Hartzell Hardwoods, Inc.
Dennis Mann, Convention Baillie Lumber Co.
Tom Oiler, Lumber Services Cole Hardwood, Inc.
Brant Forcey, ITS and ITSEF Forcey Lumber Company
George Swaner, Education Services Swaner Hardwood Co., Inc.
COMMITTEE CHAIRMAN
Sam Glidden, Rules GMC Hardwoods, Inc.
HARDWOOD MATTERS
THE VOICE OF THE HARDWOOD INDUSTRY
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 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.
ADVERTISER INDEX
For advertising contact: John Hester
or 901-399-7558 Chase Musarra c.musarra@nhla.com or 901-399-7557
NHLA STAFF
Dallin Brooks, Executive Director dallin@nhla.com
John Hester, Chief Development Officer j.hester@nhla.com
Renee Hornsby, Chief Operating Officer r.hornsby@nhla.com
Sam Leow, Chief Marketing Officer s.leow@nhla.com
Dana Spessert, Chief Inspector d.spessert@nhla.com
ACCOUNTING
Desiree Freeman, Controller d.freeman@nhla.com
Ashley Johnson, Office Administrator a.johnson@nhla.com
Jens Lodholm, Database Manager j.lodholm@nhla.com
INDUSTRY SERVICES
Mark Bear, National Inspector m.bear@nhla.com
Tom Byers, National Inspector t.byers@nhla.com
Kevin Evilsizer, National Inspector k.evilsizer@nhla.com
Simon Larocque, National Inspector s.larocque@nha.com
Benji Richards, Industry Services Sales Manager b.richards@nhla.com
INSPECTOR TRAINING SCHOOL
Roman Matyushchenko, Instructor of the Inspector Training School r.matyushchenko@nhla.com
MARKETING/COMMUNICATIONS
Melissa Ellis Smith, Creative Director m.ellis@nhla.com
Brennah Hutchison, Junior Copywriter b.hutchison@nhla.com
Darci Shannon, Communication & Outreach Specialist d.shannon@nhla.com
Julia Ganey, Member Relations Manager
Chase Musarra, Member Services Advisor c.musarra@nhla.com
Welcome to Member Insights, a new section in Hardwood Matters for sharing your thoughts and experiences on the hardwood industry. We invite you to contribute!
The Future of Red Oak in a Cost-Driven Market
Submission by BILL COURTNEY, CEO of Classic American Hardwoods, Inc.
In a letter originally sent on August 3, 2017, Bill Courtney, CEO of Classic American Hardwoods, Inc., warned the U.S. hardwood industry about the dangers of exporting raw logs to China. He observed that Chinese sawmills are using these logs to produce cheaper lumber, undercutting U.S. prices and threatening the long-term viability of the U.S. hardwood market. Despite the preference for higher-quality U.S.-produced lumber, the price difference drives customers to buy the Chinese-sawn alternatives. Courtney urged the industry to reconsider this practice, emphasizing that it’s within their control to protect their resources and prevent the U.S. hardwood industry from suffering the same fate as the outsourced textile and furniture industries.
To Those Who Make Their Livings in the United States Hardwood Industry:
This marks the first time, in over 20 years in the hardwoods lumber business, that I have ever felt compelled to speak out. Our fragmented, very independent industry can rarely agree on much. What fits in Appalachia doesn’t necessarily fit in the upper Midwest, and what makes sense in the Allegheny region may often seem ridiculous in the Southeast. Certainly, we all make our livings with a similar natural resource, but operationally, our approach can differ wildly and often be equally successful. Given this, I have always reserved comments about these different approaches, even when some made little sense to me because the truth is, while I like to think that I have a clear understanding of what my challenges and opportunities are in my little footprint of our industry, I admittedly have very little understanding what those challenges and opportunities look like for a similar business located 1000 miles away in a different hardwood producing region. So, while I often wonder why and how many competitors do things, I have kept those thoughts to myself so as not to open my mouth and demonstrate my own ignorance.
Share Your Voice in Hardwood Matters!
Send your submissions to NHLA at info@nhla.com and join the conversation shaping our industry's future.
Having said all this, I am now convinced that we are currently engaging in a practice that is universal to all of our detriment regardless of region, and I hope to start some dialogue about it.
Yesterday, I returned from a 15-day visit to China. We were in three distinct markets during that time and visited many customers. These various customers were both manufacturers and wholesalers, all of whom were experiencing decent to very good business. The activity in each meeting was typical in Chinese sales calls. Hot tea, plant or warehouse tours, a bit of political banter regarding President Trump and North Korea, more hot tea, and then, of course, price negations for the sale of new products was a seemingly endlessly repeated process. While each meeting and customer obviously had its differences, the highlights just described always happened – and frankly, to my delight. It has been some time since I had been to China, and I thoroughly enjoyed all the time invested in visiting and putting faces to the names that I normally see on a daily sales ledger. After all, it doesn’t matter if we sell our products in Shanghai or Des Moines; personal relationships will always matter.
On this trip, though, a topic of interest was being discussed that was new. In the first couple of days, I thought maybe it was just a coinci-
Please note that while we value all submissions, we cannot accept all pieces. Thank you for understanding and for your consideration. — continued on paage 10
Facing the Uncomfortable Truth: A Call for Collective Action in the Hardwood Industry
Ihave written a number of letters regarding change. Some of my letters have been about the challenges of adapting to change, and others have been meant to encourage our industry, as we are very savvy when it comes to accepting change and adapting to a new normal.
Taking a step back and looking at our industry, I am concerned we are ignoring a significant change that most of us don’t want to address. We are all very good at adapting to different manufacturing needs, straightline ripping, width sorting, tweaking grades, shipping methods, etc. I like to focus on those things as I can see immediate results in the change I am working on. However, I feel like we are all ignoring a change in our industry that is not new and, unfortunately, is not going away.
Our industry has done a less-than-stellar job supporting our associations and representatives, who are defending our industry from environmental misinformation. As a result, our industry is in significant decline and has been for a number of years.
The insanity of repeatedly doing the same thing and expecting a different result comes to mind. The belief that our current method of conveying our environmental story will impact the end-use consumer is irresponsible. We need to help each other to grow and stabilize the hardwood industry! This is exactly what the NHLA’s mission is, adopted last spring as part of the five-year strategic plan. Individually, we will not succeed in changing the current false narrative about hardwood lumber either in the consumer’s eyes or in our representatives in political office! More voices need to be heard, and new ways of communication need to be adopted.
Lumber markets are, at best, challenging right now, so I respect the tight economic constraints many of you are dealing with. I ask you, however, to look forward and think about the long-term viability of our industry without significant changes in the current strategy regarding messaging and political representation, clarifying the environmental truth of hardwood lumber. Who will carry our message? What is our message? How will it be efficiently communicated?
Donating directly to the Hardwood Federation and/or the Real American Hardwood® Coalition (RAHC) is ideal. NHLA contributes significantly to these efforts, with 10% of your membership dues going to support the Hardwood Federation and 5% to the RAHC. Addition-
ally, NHLA has spent tens of thousands of dollars this year to deliver a campaign supported by high-quality videos and marketing materials and fully funding the website www.realamericanhardwood.pro. This campaign targets architects, designers, and specifiers to influence more incorporation of Real American Hardwood® into their projects. The videos additionally combat misinformation on hardwoods and hardwood products that, unfortunately, many believe. NHLA has been actively combating this false information spread for far too long.
If the economics don’t align, continue to support your representative association like the NHLA. Ensure your association is contributing to the efforts described; if not, question why. Encourage your business competitors and suppliers to join you in supporting our industry. This is not about individual advantage, but about the collective strength of our industry.
Adapting to specific markets with new and innovative manufacturing techniques unique to your operation is fantastic! Adapting to the need to defend our industry together is paramount so we can continue to tailor our products to specific demands!
The good news is we have a story that cannot be replicated! We are an industry poised for growth if we can combine our voices! Our message for the world is that here we are, answering all the environmental questions with truth and integrity. We manufacture environmentally sensitive products! The consumer wants to make a better choice, and they want to be educated! Together, we can change the message heard by our consumers and successfully grow and stabilize the hardwood industry; individually, we will not succeed. Please join me and others in working to make our truths louder than the propaganda of substitute products.
I hope this letter has stirred a bit of emotion in you. Maybe it made you feel uncomfortable; it was meant to. The time for change is now.
Thank you
Jon Syre NHLA Chairman | Cascade Hardwood
Fire is One Common Ground We Can Agree On
Iattended the National Association of State Foresters meeting in Huntsville, Alabama, in July. These are government employees from Republican and Democrat-run states. I was still determining what to expect from them and their perspectives on the hardwood industry. I was surprised to learn how much they value sawmills, logging, and using wood products.
On a tour through Sewanee University Forest, I asked several state foresters if they would see more uncontrolled fires happening in the South and East if we didn’t start harvesting more deciduous trees; they all answered emphatically, “Yes.” They all appreciate fire and use it to control undergrowth and help create/maintain healthy multi-story forests. These two to three-story forest canopies are critical to helping the forest adapt to change. The Maryland State Forester, Dr. Anne Hairston-Strang, gave me the quote, “A forest that pays, stays.” This means that a forest that generates income through sustainable harvesting practices is more likely to be preserved. Forest diversity can be maintained with shelterwood harvesting, fires, and even clear-cuts, ensuring forests stay productive and growing.
I also learned how essential fires were in growing Southern forests. I had previously thought they didn’t need fire or have them because their forests were mostly private and well-managed. I was wrong; fire is an integral part of forest change everywhere. We all know that forests are constantly changing. Forests are a dynamic ecosystem that is impacted by natural and manmade changes. Trying to hold a forest static, pristine, and untouched is one of the major causes of the forest fires in California and Canada. The public doesn’t think about the forest changing and that trees die naturally from infestations, rot/decay, fire, and other natural phenomena. Discussing climate change in relation to forests can be misleading because the public often views forests as the solution but mistakenly believes that this means preventing fires & avoiding all tree cutting. Tennessee State Forester Heather Slayton captured these assumptions well when she told me, “We love our forests to death.”
Fire is essential for keeping forests healthy, and aging forests are a significant cause of fires. What does this mean for loggers, sawmills, concentration yards, distributors, and wood product manufacturers? Your supply is not going away; we need to continue to use hardwood, not just in the 21st century but also in the 22nd and beyond. Don’t use substitutes; the forests need you as much as you need the forests. Boldly talk about how you are helping forests change and stay healthy.
The smoke is unfortunate, as is the loss of life and property, but more small fires and harvesting can prevent the big fires. We must act now, or we will have mega-fires in the South and East in another 40 years. As a manufacturer, adapt to the trees in your local forests and keep optimizing, automating, and innovating. Everyone fears uncontrolled forest fires, but forest managers respect the role of small fires and responsible harvesting. We need to communicate the importance of using more hardwoods and their role in our forests’ future. While not everyone understands the benefits of tree harvesting, most people grasp the necessity of preventing fires. We must highlight the risk of future uncontrolled fires if we don’t increase the harvesting of hardwood trees in the South and East. The leave-it-onthe-ground model has already been proven to burn in the West.
Fire is One Common Ground We Can Agree On.
Dallin Brooks NHLA Executive Director dallin@nhla.com | 901-377-0182
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— Member Insights continued from page 3
dence that every customer wanted to talk about it, but as time went on and appointments mounted, it became obvious that it was a topic that our customers were discussing among themselves. With not one single exception, in all of our meetings, it was brought up, and as I learned more and more, I became interested, then vested, and now concerned.
The export of US logs to Chinese sawmills is a problem, and history matters in understanding what is happening. The vast majority of Chinese sawmills are in the North. Certainly, others exist, but the North is where the sawmill industry has decades long roots. For many years, their business was cutting both Chinese species indigenous to the North and Russian species that came across the border. In the past few years, government policy changes threatened that industry’s existence. First, the Chinese government forbade the felling of trees. Second, the Russian government changed its policy for log exports, thus cutting the raw material for the sawmills. The result was that these Chinese mills and industries existed with no material to run through them.
Their answer, with the unprecedented growth in demand for US species, has been to buy US logs and beat us at our own game, and they are. Chinese-sawn US hardwoods are sold cheaper than US-sawn hardwoods, and it’s having a suppressing effect on our markets. Without exception, the customers we discussed this with would all rather have US-produced US hardwood lumber. Our grading is better, our drying is better, and our service is better. But, given the price spread, increasingly, more customers are at least supplementing their inventories with the Chinese sawmill products. Additionally, because it’s cheaper, the Chinese market is using this pricing to suppress US manufacturers’ pricing. The irony here is that we sell logs at high prices to Chinese export markets but then give back the gains when our lumber is sold cheaper than it should be because it’s competing with lumber sawn from our own raw material. It’s ludicrous, and even our customers agree.
After we began having these discussions daily with customers, we started asking what I think to be an obvious question. How much are we keeping prices down by exporting logs? So, we took a very unscientific poll of our customers, and the average of all the responses was 7%. In other words, if US lumber wasn’t available from Chinese sawmills, our own customers readily admit that they think our lumber prices would be an average of 7% higher than they are today! I admittedly don’t know about my competitors’ margin efforts, but we spend copious hours around here trying to figure out how to squeeze a point here and a point there out of production and price. We would go nuts over 7%, and our own customers are shaking their heads at us, wondering why in the hell we are giving that up.
We are making a big mistake exporting logs. Currently, it’s costing us margin and market share, but if it grows, it could cost us much more.
This is what is happening today, but even more concerning is the question of tomorrow. Only a fool would fail to recognize China’s appetite for growth and willingness to invest and build. If we continue to sell our precious resources, what will happen to our industry? My guess is that in 1950, if you told folks in North Carolina that both the furniture and textile industries by 2010 would be gone and shipped off to Asia, they would have laughed at you, citing American work ethic, ingenuity, financial strength, etc. Are we going to be next? The difference in my mind is that these industries could be taken, but ours is wholly dependent on the amazing, renewable natural resource that sustains our lives. If we protect it, our industry will survive as no one else has what we have. But if we sell it off, and China sees our willingness to sell it, they will build sawmills, they will build kilns, they will consume it all if we let them, and who could blame them?
We are making a big mistake exporting logs. Currently, it’s costing us margin and market share, but if it grows, it could cost us much more. It is a conversation we must have as an industry because it affects us all regardless of location or approach. We are engaged in a foolhardy practice whose foresight is either blind or ignorant, and unlike many manufacturing industries who have succumbed to geo-economic forces outside of their control, this one is completely in our control, and I fear if we don’t act, future generations will do exactly what our Chinese customers did during our last two weeks’ visits – just shake their heads in disbelief.
Sincerely,
Bill Courtney CEO, Classic American Hardwoods, Inc.
LEAD FROM WHERE YOU ARE
Have you ever been driving to a place you’ve been to dozens of times, only to look around and think, “I have no idea where I am?” Or is that just me? Anyone who has ever traveled with me will tell you I’m a terrible navigator. We might both be in trouble if you rely on me to guide you. I will get caught up in our conversation and forget to tell you where to turn. I think that’s why someone invented GPS.
GPS is a useful tool. It knows the fastest route, warns you of offroad hazards, and even helps you avoid speed traps. But while it’s great at providing directions, it’s not the leader of your trip. You are. The GPS can suggest a path, but it doesn’t decide when to stop, detour, or choose a different destination. It’s there to assist, but the leadership of the journey remains in your hands.
I recently watched an Instagram Reel about wolves and how they travel. Contrary to what you might expect, the strongest wolf, the Alpha, often leads from the rear. The Alpha positions themselves at the back, ensuring no one is left behind, guiding the pack while allowing others to set the pace. It’s a unique kind of leadership. It’s rooted in trust and an understanding that the journey isn’t just about the destination but ensuring everyone gets there together.
In life, business, and within the NHLA, this approach can be so powerful. Being a leader doesn’t always mean being at the front, dictating every move. It’s about knowing when to step back, observe,
and trust in the abilities of those around you. It’s about guiding the process, providing support, and stepping in when necessary, all while allowing room for others to grow and contribute.
Just like the wolf, whose job is to ensure the safety and success of the pack by leading from behind, NHLA members also have to recognize when it’s time to take the reins and when it’s time to step back and trust the journey. Your GPS may show you the way, but your decisions, instincts, and leadership will ultimately determine where you end up.
So, whether navigating your personal life, steering your business, or contributing to the NHLA community, remember that authentic leadership isn’t about always being at the front. It’s about guiding with purpose, leading with confidence from wherever you are, and ensuring that the path you choose aligns with your goals and values. Embrace the role of the Alpha wolf and lead your journey with the understanding that while tools can guide you, real leadership lies in how you choose to use them.
John Hester Chief Development Officer
Celebrating Excellence at the NHLA Inspector Training School
National Hardwood Lumber Association Commemorates the Graduation of the 206th Inspector Training School Class
L to R: Andy MAssing, sAMueL RisheL, KAthRyn sMith, JoRdAn Fitch, RoMAn MAtyushchenKo (instRuctoR), JAcob stone, iAn gReenAwAy, MAtthew nyeMsceK, MAhLon Kuhns
The National Hardwood Lumber Association (NHLA) is proud to announce the graduation of the 206th class of its esteemed Inspector Training School (ITS). The ceremony celebrated the achievement on August 2, 2024, at Pennsylvania College of Technology’s Schneebeli Earth Science Center.
Brant Forcey, President of Forcey Lumber & Veneer, delivered an inspiring address emphasizing the graduates’ significant contributions to the hardwood industry. His speech resonated deeply, mainly because some graduates had already secured job offers before graduation, a testament to the high demand for their skills and expertise and a promising sign for the industry’s future.
The graduates of the 206th class include:
• Jordan Fitch, Wheeland Lumber Co., Inc.
• Ian Charles Oakley Greenaway, Independent
• Mahlon Kuhns, Independent
• Andrew Massing, Independent
• Matthew A. Nyemscek, Independent
• Samuel E. Rishel, Rishel’s
• Kathryn Smith, Westbury Lumber Company
• Jacob Stone, Wheeland Lumber Co., Inc.
Outstanding individual award recipients were as follows:
• Mahlon Kuhns – Highest Overall Average
• Matthew Nyemscek – Class President and Second Highest Overall Average
The ceremony also featured speeches from prominent leaders and educators, including Russell E. Redding, Pennsylvania Secretary of Agriculture, and Michael J. Reed, President of Penn College. Their words of wisdom and encouragement stressed the critical role these newly minted inspectors will play in advancing the industry.
In his address, Reed underscored that this 8-week course “strongly aligns with the instruction we offer here at Penn College.” This alignment is further strengthened by NHLA’s collaboration with various Pennsylvania partners, including the Pennsylvania Hardwoods Development Council, Allegheny Hardwood Utilization Group, Keystone Wood Products Association, Northern Tier Hardwood Association, Pennsylvania Forest Products Association, Pennsylvania Department of Agriculture, and Pennsylvania Forestry Association.
A special acknowledgment goes to Lewis Lumber for their generous donation of lumber for this course. Their support was integral to the students’ hands-on learning experience and is greatly appreciated
The NHLA is excited to see the positive impact these graduates will have on the hardwood industry and congratulates the 206th class on their remarkable achievements.
IS YOUR TEAM READY FOR THE FUTURE?
The NHLA Inspector Training School is now accepting registrations for Class 208, starting January 6, 2025. Ensure your team is prepared for the future by sending qualified employees to this intensive 8-week program to equip them with essential lumber inspection skills. Whether you need to train a backup grader, engage a new generation, or advance your career, this is the opportunity to secure your company’s success.
www.nhla.com/education
EHS Support: Pioneering EH&S Excellence in the Hardwood Industry
Thanks to nearly two decades of expertise and strong partnerships within the wood preservation sector, EHS Support has emerged as a leader in the environmental, health, and safety (EH&S) industry. With a global presence and a diverse team of over 190 professionals, EHS Support excels in navigating complex regulatory landscapes and delivering practical solutions.
NHLA recently spoke with Monica Meyer, Senior Health & Safety Specialist at EHS Support, to delve into the company’s journey, milestones, and unwavering commitment to enhancing EH&S standards in the hardwood industry. Through its valued membership with the NHLA, discover how EHS Support continues to foster a culture of excellence and innovation while addressing the evolving challenges of sustainability and compliance.
EHS Support’s approach is distinguished by its ability to translate complex science into actionable business strategies, enabling clients to make quick, informed decisions that align with regulatory and business objectives. Their extensive services range from EH&S management systems auditing and environmental compliance to mergers and acquisitions, liability cost estimation, PFAS management, and more.
Over the past 11 years, EHS Support has incorporated advanced technologies to achieve significant milestones, guiding clients through regulatory shifts and building solid relationships. Their dedication to the wood industry is evident in their commitment to conducting over 100 EH&S audits at wood preservation facilities across North America. “EHS Support is committed to delivering practical solutions to solve the EH&S challenges the wood industry faces,” Meyer emphasized. This October, in partnership with NHLA, EHS Support will offer a 3-day Environmental Health and Safety Management training class aimed at helping managers and coordinators maintain safe work environments. The training will focus on a deeper understanding of compliance with regulations, safety principles, hazard identification, and risk mitigation strategies while emphasizing the importance of creating a safety culture in operations.
EHS Support’s effectiveness lies in its strategic initiatives. Utilizing integrated management systems ensures EH&S considerations are embedded in every aspect of a client’s operations, from procurement to production. “By aligning EH&S goals with business objectives,” Meyer explained, “clients maintain high standards without compromising efficiency or quality.”
Sustainability is also a cornerstone of EHS Support’s services. They assist clients in adopting sustainable practices that reduce waste and energy consumption, enhance cost savings, and improve product quality. The company fosters a culture of continuous improvement through employee empowerment in EH&S decision-making processes and the promotion of health and wellness initiatives.
Deeply rooted in the wood preservation sector, EHS Support proudly serves key associations like RTA, AWPA, TWC, and WWPI and is now excited to join the NHLA family. Their active engagement with these organizations and participation in industry forums and outreach initiatives solidify their leadership in the sector. By staying involved in these forums, EHS Support remains ahead of regulatory changes and contributes to developing new standards and regulations.
EHS Support understands that the hardwood industry is evolving rapidly and is driven by a focus on sustainability and innovation. Meyer highlighted, “Embracing circular economy principles and recycling wood products are essential to promoting sustainability and minimizing the environmental footprint.” Technologies like drones, IoT, and AI optimize supply chains, monitor forest health, and ensure worker safety.
The company’s dedication to EH&S excellence is further demonstrated through their memorable experiences in the field. “We’ve trudged through the mud to oversee construction efforts, shivered in
freezing temperatures to evaluate equipment, climbed onto roofs to support solar panel installations, and celebrated when we created a strong case against a regulatory agency,” Meyer shared. These experiences underscore their unwavering commitment to pushing boundaries, ensuring safety, and fostering a sustainable future.
EHS Support’s unwavering commitment to excellence, innovation, and sustainability has made them a trusted leader in the hardwood and wood preservation industries. Their ability to integrate EH&S considerations into every facet of operations and their proactive approach to regulatory compliance and industry engagement ensures that their clients meet today’s challenges and are well-prepared for the future. With their recent membership in the NHLA, EHS Support is further solidifying its role as a critical player in the industry, expanding its influence and contributing to developing industry standards. As they collaborate with organizations like the NHLA, EHS Support remains dedicated to fostering safe, sustainable, and efficient practices that benefit their clients and the environment.
Learn more about EHS Support at www.ehs-support.com
October 21-24
Register at www.bit.ly/EHS_Safety
Effective Safety Management & Leadership Strategies Equip yourself with the expertise to create a safe work environment, ensuring company-wide benefits through improved regulatory compliance, hazard awareness, and a strong culture of safety.
Positioning Hardwood in a Shifting Political Landscape
By DANA COLE, Executive Director of the Hardwood Federation
We’re just wrapping up summer, but the uncertainty of the Presidential election makes it feel like the end of the year is just around the corner, especially with the 118th Congress in session. The House decamped Washington a week early this year for its August recess, axing the final week of July in favor of heading home to campaign. Although Congress is slated to be in session after Labor Day and through the end of September, it is expected that the printed schedule will not stand and September will be cut short. This means that for most of the fall—some of September, all of October, and half of November, Members of Congress will be back in their states/districts and not here in D.C. working on legislation.
In terms of “must pass” items, there are only a few that Congress has to act on before the curtain closes on this Congress. One is funding operations of the federal government. We fully expect that a Continuing Resolution to keep the lights on past the close of the fiscal year on September 30 will be taken up and passed next month. The duration of this “CR,” as it is known, will likely extend through mid to late November and will afford time for Congress to take up a more significant Fiscal Year 2025 appropriations deal in the Lame Duck session. The other action that Congress must take is reauthorizing the National Defense Authorization Act or NDAA. This statute underpins our country’s national defense programs and the nuclear weapons programs at the Department of Energy and must be approved by Congress every fiscal year. As part of this year’s process, we are pleased to report that Senator Jeanne Shaheen (D-NH) has secured report language as part of the Senate NDAA bill to press the Department of Defense and General Services Administration on switching to Red Oak and away from Apitong for its truck trailer beds. We remain hopeful that Congress will unite in the Lame Duck on reauthorizing the Farm Bill. Still, sides remain far apart, and it looks increasingly like an extension of current law into 2025 is the likely scenario.
With limited substantive action on many Federation policy priorities likely for the remainder of 2024, we have begun to look ahead strategically in 2025 to identify areas where policy action is likely and where we can influence. Tax will be incredibly active. Recall that the House passed a very good, bipartisan bill (H.R. 7024) earlier this year that retroactively restores key “Main Street” business tax incentives and pairs those extensions with a more robust Child Tax Credit. The legislation, unfortunately, is stalled in the Senate. Still, the fact remains that there is strong support for restoring these benefits, and that sentiment will only get stronger as the bonus depreciation phase-out, for example, progresses. The benefit (100 percent bonus depreciation allowing businesses to write off the total cost of machinery and equipment in the same year it is purchased) took a 20 percent haircut in 2023 and another 20 percent reduction this year. It is slated to reduce again by 20 percent by January 1, 2025. In addition to this benefit and extending the research and development tax credit, several key tax benefits from the Tax Cuts and Jobs Act of 2017
expire at the end of 2025. At a recent fundraising breakfast that the Hardwood Federation team attended, House Ways & Means Committee Chairman Jason Smith (R-MO) emphasized that $4.6 trillion in tax benefits would go away at the end of next year if Congress fails to act. Among these is the Sec. 199A deduction (20 percent) for S-Corporations and other pass-through entities.
Outside the tax lane, a Farm Bill must be reauthorized at some point. The Federation team has continued to meet with Members of Congress on and off the Agriculture Committees to advocate for doubling funding for export promotion programs, forest and forest products workforce provisions, biomass carbon neutrality, and our Hardwood Access Program. Regarding the latter, our bill introduced in January—the Hardwood Access and Program Development Act (H.R. 6880)—will have to be reintroduced next year as all pending legislation automatically dies at the conclusion of a two-year session of Congress. In advance of the 119th Congress gaveling in early January, we will recruit a Democrat lead for this bill as our current champion, Rep. Annie Kuster (D-NH), is retiring. In addition, we will be working to line up Senate leads to introduce a companion bill in the upper chamber next year.
As with any year following a significant election, there will be several new faces in the House and Senate with whom we must connect and introduce our sector and policy priorities. This process will begin with open houses on swearing-in day in January and continue throughout the first quarter of 2025. There will also be movement and shuffling of membership on committees that handle our issues. Identifying and meeting with new members on panels that we care about will be a top priority for the Federation early next year. Also notable is the fact that there will be changes in leadership on some of the committees important to us. Take, for example, the House Energy and Commerce Committee, which handles most of the environment and energy-related legislation in the lower chamber. Current Chair Cathy McMorris-Rodgers is retiring at the end of this Congress. If Republicans remain in the House, Rep. Brett Guthrie (R-KY)—a long-time Federation supporter—is poised to take this vital gavel. This would mean a complete turnover in committee staff, and getting to know these new faces would also be a top priority.
The bottom line is that although we continue to explore opportunities to move our policy agenda this year, persistent headwinds in Presidential election politics and a shortened Congressional calendar have prompted us to begin looking ahead strategically in 2025. As we start our preparations for next year and the 119th Congress, we will look at NHLA and our other hardwood association members to help inform our preparatory efforts and guide our decision-making in advance of what is shaping up to be an active, consequential year.
MIC Insights: Quarter 3
The Road Ahead: EUDR’s Influence on North American Hardwood Markets
Will the EU Deforestation-Free Regulation be the most significant export barrier the North American Hardwood industry has ever faced?
By BRENNAH HUTCHISON, Junior Copywriter
Welcome to the third edition of our quarterly column from the Market Impacts Committee (MIC). In this installment, we focus on a crucial and timely issue: the influence of the EU Deforestation-Free Regulation (EUDR) on the North American hardwood markets. As this new regulation imposes strict and often unclear requirements, its impact on the North American hardwood industry is becoming increasingly evident. In our first quarter, Mike Snow, Executive Director of the American Hardwood
Export Council (AHEC), highlighted the complexities and unresolved issues surrounding the EUDR. To better understand how the industry can prepare on a smaller scale, the NHLA has narrowed the scope to focus on individual businesses. We draw insights from key industry figures, including Bucky Pescagalia, President of Missouri Pacific Lumber Company (MO PAC), and Tom Coble, Vice President of Hartzell Hardwoods Sales, to explore these challenges and their implications for our industry.
In 2023, Europe was the United States’ fourth-largest market for hardwood, with lumber export volumes reaching an impressive 106,221,150 board feet. This substantial market presence underscores Europe’s vital role in the North American hardwood industry’s overall health and growth. Snow highlighted the sweeping implications of the new regulation: “The EU Deforestation Regulation (EUDR) represents a significant change in the regulatory environment not only for the primary wood products exported to the EU but also because of the global nature of trade in finished wood products.” This means that the EUDR’s impact extends beyond
raw lumber, influencing a broad spectrum of finished products that incorporate North American hardwood, thereby affecting supply chains and market dynamics on a global scale.
Processing the intricacies of new regulations can indeed be overwhelming. To gain clarity, NHLA spoke with Pescagalia about how individual businesses can navigate these stringent requirements. Pescagalia revealed that even the most proactive businesses face significant challenges. At the Missouri Forest Products Association Summer Meeting held July 26-27 in Branson, MO, he was
The EUDR was rapidly implemented due to the impending EU elections and the environmental urgency of the European Green Deal, which aims for climate neutrality by 2050 with an interim goal of reducing carbon emissions by at least 55% by 2030.
surprised to find many industry peers were either unaware of or did not fully grasp the EUDR’s extensive impact on the American hardwood industry. “No one knew the facts…Many don’t know this exists,” he remarked. This shared lack of awareness underscores the need for collective action and mutual support. Despite MO PAC’s diligent preparations, Pescagalia highlighted that the regulations are only one aspect of the industry’s broader challenges. He noted that European customers knew the rules but struggled to understand North American forest management practices. As Pescagalia elaborated, “When I was explaining to a European customer that this was ridiculous because of how we manage our forests, he said, ‘You have to understand that your most liberal-leaning people in the United States could be considered conservative in Europe . . . You’re not going to delay it. You need to prepare for it.’”
The EUDR was rapidly implemented due to the impending EU elections and the environmental urgency of the European Green Deal, which aims for climate neutrality by 2050 with an interim goal of reducing carbon emissions by at least 55% by 2030. This swift passage with minimal stakeholder consultation has caused widespread confusion and concern within the industry. The significant regulatory shift has frustrated many, mainly due to the challenge of identifying geolocation coordinates for all hardwood harvest sites. This requirement is especially burdensome for the North American hardwood industry, where 90% of logs come from private non-industrial family forest owners.
Coble expressed similar concerns: “We can meet five of the six requirements, but the requirement asking for ‘Geo-Coordinates of all plots of land where the wood was harvested’ is extremely challenging, if not impossible, for sawmills like ourselves. We strongly feel that this requirement needs to be revised to allow mills to provide the county of harvest for each log. Using counties to fulfill the location requirements will provide the EUDR with all the necessary compliance information.”
In addition to these logistical challenges, there are antitrust and confidentiality concerns surrounding the geolocation of individual properties, including the disclosure of names and addresses. The AHEC has proposed a “county-level” geolocation option to address these issues. This option suggests using county-level data instead
“To meet the geolocation requirements, mills must invest in additional technology and add processes and headcount to track and trace the material through the system. This will ultimately drive the cost of lumber and limit the number of mills that can comply.”
of specific geolocation coordinates, which would still provide the necessary compliance information while addressing the concerns of individual property owners. However, as of the drafting of this article, the EU has yet to accept this proposal. Further complicating matters, the US Departments of Agriculture and Commerce, along with the Executive Office of the President, sent Mr. Maroš Šefčovič, Executive Vice President of the European Commission, a letter highlighting the fact that “the EU has yet to establish a final version of the EUDR Information System for producers to submit mandatory due diligence statements” and “many EU member states have not designated a competent authority to enforce the regulation.”
Furthermore, the EU’s definition of “deforestation” is straightforward: it does not consider land deforested if it is used for harvesting timber
NHLA IS SEEKING A NATIONAL INSPECTOR
Eastern Region (WV, KY, MD, VA, NC, SC and surrounding area)
Position: As a NHLA National Inspector, you will play a pivotal role in maintaining and upholding the quality standards of the hardwood lumber industry. Your primary responsibilities will include teaching the NHLA Hardwood Lumber Grading Rules and conducting thorough inspections of hardwood lumber across various facilities.
Required: Must be a graduate of the NHLA Inspector Training School and have 5+ years of experience. Strong communication and teaching skills, with the ability to effectively convey complex information. Attention to detail and a commitment to maintaining the highest quality standards. The ability to travel is a must.
To Apply: View the complete job description on the NHLA job board. Send all questions and resumes to Chief Inspector Dana Spessert at d.spessert@nhla.com
rather than being converted for agricultural purposes. However, the regulations extend this definition to speculate on the future use of such land, complicating compliance for the hardwood industry. This complexity arises particularly for timber harvested from private property. Pescagalia stressed this issue, annoyed with the regulation’s ambiguous scope: “We have no way of knowing what someone is going to do with their private property the minute we leave.” The economic impact is substantial. Coble explained, “To meet the geolocation requirements, mills must invest in additional technology and add processes and headcount to track and trace the material through the system. This will ultimately drive the cost of lumber and limit the number of mills that can comply.”
Non-compliance with the EUDR can lead to significant penalties, including fines of up to 4% of a company’s annual EU revenue, confiscation of non-compliant products, and exclusion from public procurement processes. This complex regulatory environment will undoubtedly impact global trade, even affecting countries exporting to the EU if products are processed outside the EU before reaching their markets. In addition, the regulation allows NGOs and competitors to file complaints. This heightened scrutiny underscores the need for North American exporters to remain vigilant and proactive in their compliance efforts.
As businesses brace for the EUDR’s rigorous criteria, they must prepare to supply the following information to their EU customers starting in January 2025 for large importers and June 2025 for “small and medium” importers:
• Tree species: Scientific name of harvested logs.
• Country of harvest: The country where logs were sourced.
• Geolocation coordinates: These are the specific coordinates for all plots of land where timber was (or may have been) harvested.
• Date or time range of harvest: When the timber was harvested.
• Legal harvesting evidence: Documentation proving the timber was harvested in compliance with local and international laws.
• Deforestation-free proof: Certification or evidence that the harvested timber did not contribute to deforestation.
To meet these requirements, companies must invest in new technology. Coble noted, “At Hartzell, we will be forced to adopt new processes internally to track the incoming lumber through our system so we can provide the needed data once the material is dried and ready for shipment. We will also have to work with our suppliers to educate and help them adopt new practices to provide the necessary location information for each log cut and processed.”
Snow pointed out a silver lining amid these challenges. He suggested that the EUDR’s concise definition of “deforestation” could position the North American hardwood
Snow pointed out a silver lining amid these challenges. He suggested that the EUDR’s concise definition of “deforestation” could position the North American hardwood industry as a leader in sustainable practices.
industry as a leader in sustainable practices. As consumers become more aware of greenwashing, having verifiable proof that North American hardwood is environmentally conscious and harvested ethically can enhance its market appeal. This added layer of transparency aligns with global sustainability trends and offers a competitive edge in a marketplace that values ethical sourcing.
Lastly, the EUDR may disadvantage smallholders in developing countries as companies prefer larger suppliers who can more easily meet the stringent requirements. Engaging in ongoing dialogue with EU customers and regulatory bodies will be crucial for navigating these challenges and ensuring continued market access. As Pescagalia advised, “Follow the lead of AHEC and NHLA. They are leading this change by communicating with the EU and the industry.”
STAY INFORMED ON EUDR DEVELOPMENTS!
Join Us at the NHLA Annual Convention & Exhibit Showcase Friday, October 4 at 8am for the General Session
Developments on the EUDR are ever changing! Stay informed and join us on Friday, October 4th when Mike Snow will present the latest insights and strategies to navigate the EUDR and its impact on the North American hardwood markets.
Bridging the Gap: Modernizing Hardwood Design Values for Today's Market
By DANA SPESSERT, Chief Inspector
The NHLA was formed in 1898 for the sole purpose of creating a set of standards for the trade of hardwoods. The grades over time grew as more products were being produced and needed a standard way of establishing quality and value.
The US Department of Commerce began standardizing all commodities in the 1920s to create a more level playing field for producers and consumers. Through a series of meetings involving wood products (soft and hard), the Commerce Secretary, Herbert Hoover (1921 – 1928), decided to assign the hardwood grading standards writing to the NHLA, as they had already published and educated the industry on using the standards.
Through members providing rules changes, and those submitted changes being vetted by the NHLA Rules Committee, they are then written on a ballot that our members vote on. The changes take a 2/3 majority vote to be implemented in the next published Rules Book that many of us know and use regularly.
The standards that were assigned to be governed by the NHLA were not then, nor has ever been, solely for yield (appearance)- based grades for remanufacture; they also included structural lumber to be used similarly to today’s softwoods. As a matter of fact, there are Timber grades that are clearly defined in the Rules Book and are utilized by our US Military on a regular basis.
The NHLA is currently in the process of reinvigorating the construction grades for all forms of hardwoods to allow the hardwood industry to utilize lower-grade materials to be used in the construction industry on a more regular basis.
One of the challenges facing the hardwood industry is that the Design Values readily available for hardwoods have not been updated and published for many years. This opportunity is being addressed by a strategic alliance with Universities, the US Forest Service, NHLA, and others to allow future versions of our Rules Book to provide the bridge between suppliers, architects, designers, engineers, and construction.
While we understand that the challenges facing our industry won’t be resolved overnight, we firmly believe that we’re moving in the right direction. As we continue to make progress, we’ll be reaching out to our industry for their invaluable support in terms of time and materials, knowing that their contributions are crucial to our collective success.
As always, please send your hardwood lumber grading questions to Dana Spessert at d.spessert@nhla.com or call 901-399-7551.
EDUCATIONAL OPPORTUNITIES
SEPT
September 9-13
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.
Host: Indiana Hardwood Lumbermen's Association
Venue: Wood-Mizer, LLC
Location: Indianapolis, IN
Instructor: Kevin Evilsizer, National Inspector
September 9-Nov 1
Inspector Training School 207th Class
Traditional 8-week hands-on training to achieve a certificate of completion in Hardwood Lumber Inspection.
Venue: NHLA Headquarters Location: Memphis, TN
Instructor: Roman Matyushchenko, NHLA ITS Instructor
OCT
October 15-17
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.
Host: New Hampshire Timberland Owners Association
Venue: UNH Sawmill Location: Durham, NH
Instructor: Tom Byers, National Inspector
New
October 21-24
Effective Safety Management & Leadership Strategies
A 3-day safety leadership course focusing on safety and creating a culture of safety at your site. The seminar will be taught by EHS Support LLC, a new NHLA member company. EHS Support is a US company that originated in 2005 and has expanded globally. The trainers have over 25 years of experience in environmental, health and safety training.
Venue: NHLA Headquarters Location: Memphis, TN
NOV
November 5-8
Hardwood Processing 101 NHLA will host a workshop to broaden the knowledge of hardwood processing for those industries and people who support sawmills and mill operations. The 3-day workshop will explore the process path from tree to kiln and includes a tour of a local sawmill and concentration yard. Housing and meals are included.
Venue: NHLA Headquarters Location: Memphis, TN
November 11-22
Spanish Language Intro to Hardwood Lumber Grading
For Spanish speakers an Intro class to gain a basic understanding of the NHLA hardwood lumber grading rules and how the rules affect the value of lumber. Housing and week-day meals are included.
Venue: NHLA Headquarters Location: Memphis, TN
Instructor:
Roman Matyushchenko, NHLA ITS Instructor
DEC
December 4-6
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: NHLA Headquarters Location: Memphis, TN
Instructor: Roman Matyushchenko, NHLA ITS Instructor
December 9-12
$PC: Control the Process to Improve Lumber Value
A 3-day course to teach your team the first steps in implementing your own Yield Improvement program using statistical process control techniques adapted to a sawmill environment.
Venue: NHLA Headquarters Location: Memphis, TN
HARDWOOD MARKETS MATTER
Hardwood Markets Matter, and it is important for NHLA to share market details of the entire Hardwood Industry. We appreciate the support of allied associations and publishers in gathering and sharing this important market information that can help you understand the complete hardwood industry picture.
www.hardwoodreview.com
Red Oak exports through the first five months of 2024 were up 3%, despite shrinking demand from China. While shipments have expanded to Asian markets other than China, there has also been, perhaps more importantly, a sudden rise in demand from Australia, and growing acceptance in Europe.
The most significant recent increase in Red Oak purchasing has come from Australia—which, like Europe, has long been a White Oak-dominant market. Not a stick of Red Oak shipped to Australia in 2014, but a record setting 3.6 million board feet shipped there last year. And, through May, 2024 shipments were nearly seven times ahead of last year’s pace. Rather than substituting for White Oak, however, Red Oak is taking the place of native Australian hardwood species, as bans on logging in the states of Western Australia and Victoria have limited supplies of Ash and other species commonly used by Australian flooring and furniture manufacturers.
The American Hardwood Export Council has been promoting increased Red Oak usage in Europe for years, though the extreme market gyrations of the last several years have made it difficult
to see the impacts. However, while Red Oak shipment volumes to the EU-28 have not been increasing, Red Oak has steadily accounted for a larger portion of the species mix shipped to the region. Red Oak accounted for less than 3% of U.S. hardwood lumber shipments to the EU-28 in 2014, but nearly 14% in 2023. And, with White Oak prices hitting record highs again this year, numerous exporters indicate more of their European customers are shifting to Red Oak.
Red Oak's Share of U.S. Hardwood Lumber Exports to Europe
www.hmr.com
The HMR Demand Index (HDI) is a feature in HMR Executive® that illustrates monthly trends in reported demand from 10 major domestic markets for hardwood lumber. Components of the index are color coded with various shades of blue when demand is slow, they transition to gray when demand is fair, and then to light red and deep red when demand moves from good to strong.
Index for July, which is published the first week of August.
HMR Demand Index (HDI)
Upholst.
Wood
Wood Components
Board Road
Pallets
Railroad Ties
www.rta.org
The cover photograph for the new booklet features air-drying crossties as a large treating plant. These crossties are stacked “germanstyle” with alternating layers, and elevated, to allow maximum airflow and dry the ties more efficiently and uniformly in preparation for preservative treatment.
RTA Updates Pocket-Sized Specifications Booklet for 2024
By Nate Irby & Kristen McIntosh, Railway Tie Association
The Railway Tie Association (RTA) recently undertook the task of updating its pocket-sized specification booklet, which provides essential guidelines for timber crossties and switch ties. This booklet includes definitions and limitations for defects in both grade and industrial-grade crossties and switch ties.
KEY FEATURES
• Joint-Venture Specifications: These specifications represent a collaborative effort between RTA and the American Railway Engineering and Maintenance-of-Way Association (AREMA), reflecting industry standards for timber applications in track.
• Sourcing and Grading Guide: The booklet offers a general understanding of sourcing and grading green timber crossties and switch ties.
• Comprehensive Reference: For an in-depth understanding of the entire process flow of green timbers to treated timbers in track, refer to AREMA Manual Chapter 30.
NEW UPGRADES
• Grade vs. Industrial-Grade Comparison Table: A new addition for easy reference.
• Rail-Bearing Area Determination: Clarifies specifications for this critical aspect.
• Improved Section Organization: Enhanced flow and readability.
• Table of Contents: Helps readers quickly find the information they need.
• Tie Grading Guide App Reminder: A graphic reminder at the end to download the Tie Grading Guide smartphone application for grading information on-the-go.
The updated Specifications booklet now houses this sideby-side comparison of grade crosstie specifications with the lower, industrial-grade, specifications in an easy-toread, quick comparison.
GRADE CROSSTIES
Shall be free of any defects that may impair their strength or durability for use as crossties, such as: decay, large splits, large shakes, slanting grain, or large or numerous holes or knots.
Wane:
6” x 8” ties: max 1” wane in top RBA
7” x 8” ties: min 8” face in RBA (no wane)
7” x 9” ties: max 1” wane in top RBA Max 1” wane anywhere on bottom
Dimensions: All dimensions are minimum for green ties, if 1” greater they will be rejected
Dry ties can be up to ¼” thinner/narrower
Decay: No decay accepted. Blue stain is ok.
Holes: No large holes, defined as ½” diam x 3” deep in RBA, or ¼ width of the surface on which it appears x 3” deep outside RBA; numerous holes = holes with equivalent dimensions
Knots: Allowed up to 1/3 width of the surface on which it appears in RBA, no limit outside the RBA
Shake: Not more than 1/3 tie width long (on end, see sketch in RTA Specifications section 3.1.1.4.6)) or nearer than 1” to any surface permitted
Splits: In green ties, up to 1/8” wide and/or 4” long is acceptable; in seasoned ties, splits no wider than ¼” and/or no longer than the width of the face on which it is seen (ex., 9” on a 9” face) In seasoned ties, splits exceeding these limits are acceptable if end-plated.
Checks: Continuous checks ok up to ¼ the thickness and ½ the length in fully seasoned or treated ties
Slope of grain: Ok up to 1” in 15” – not restricted for interlocked grain species
Bark seams: Ok if bark is no deeper than 2” from surface and/or <10” long
Manufacturing defects: No bow in excess of 1½” No score marks exceeding ½” Parallel top and bottom, within ½” Tie ends must be flat, end sloped no more than ½”
INDUSTRIAL GRADE CROSSTIES
Except as noted, ties shall be free of any defects that may impair their strength or durability for use as crossties, such as: decay, large splits, large shakes, slanting grain, or large or numerous holes or knots.
Wane: 6” x 8” ties: min 6” face in RBA 7” x 8” & 7”x 9” ties: min 6” face in RBA
Outside RBA, up to 5” of wane is allowed on top & bottom
Dimensions: Dry ties can be 1” narrower or ½” thinner & length can vary ±6” for 8’6” and 9’ ties, and from -2” to +6” for 8’ long ties.
Decay: Smaller than 1.5”in diameter acceptable in RBA Slight incipient decay accepted if tie as a whole looks ok. Decay under 3” diameter accepted outside the RBA Decay not acceptable if over 2” diameter on both ends
Holes: Allowed up to 1-1/2” wide on any surface or 3” deep in RBA on any surface. Allowed up to 3” diameter or 4” deep on any surface outside RBA; numerous holes = holes with equivalent dimensions
Knots: Up to 3” in RBA, no limit outside of RBA
Shake: Permitted up to 5” long (on end, see sketch in RTA Specifications section 3.1.1.4.6) Shake may appear on one face or both ends as long as it do does not run the entire length of the tie. If end plates are used they must be mechanically applied to insure they are fully seated for maximum performance.
Splits: In seasoned ties, up to 1/2” wide and/or 11” long is acceptable. In seasoned ties, splits exceeding these limits are acceptable if end-plated.
Checks: Continuous checks up to one-half the tie length are acceptable if less than 2” deep or ¾” wide.
Slope of grain: Ok up to 2” in 15” – not restricted for interlocked grain species
Bark seams: Ok if bark is no deeper than 2” from surface and/or <10” long
Manufacturing defects: No bow in excess of 2” No score marks exceeding 1”
Parallel top and bottom, within 1” Tie ends must be flat, end sloped no more than ½”
Purchase Information: Specification booklets are available for purchase at $6 each, including shipping, at RTA.org/publications.
Comparison of Specifications for Grade and Industrial Grade (IG) Crossties
WHAT IS YOUR VIEW OF CROSSTIE COMPETITIVE POSITION RELATIVE TO OTHER HARDWOOD PRODUCTS?
REGARDING YOUR ABOVE ANSWER, PLEASE PROVIDE CONTEXT FOR MARKET, WEATHER OR OTHER CONDITIONS.
EASTERN US
LAKE STATES
Minnesota, Iowa, Wisconsin, Michigan, N Indiana, N Illinois: Mills are getting squeezed due to quotas and low prices across all hardwood markets. Log inventories are very low at all mills. And rainy weather looks to continue next week.
ATLANTIC
Virginia: Quotas are in place on ties. Poplar, Pallet, Flooring and ties are not moving good. Weather has been wet over the past month and taking a toll on log inventories.
NEW ENGLAND
New England 1: Loggers are on quotas to keep log inventories low. All hardwood markets are at low pricing and low demand. Tie production is down due to several reasons including low pallet and lumber demand and quotas.
Pennsylvania: Weather has been dry and good for logging over the last month. Log inventories are adequate. Timber costs remain stubbornly high and availability seems to be decreasing. Mat and lumber markets are slow overall.
MIDSOUTH
E Texas, NW Louisiana: With July being very wet and pallet market in the tank now with the grade market it look dim to say the least for sawmillers.
SOUTHEAST
Mississippi: Crossties continue to hold a strong place in the market and demand is steady.
www.nwfa.org
2024 SALES OUTLOOK
Less than a fifth of the wood flooring industry is optimistic for strong growth in 2024, with 15 percent of respondents in Hardwood Floors magazine’s annual NWFA Industry Outlook survey expecting sales to be up significantly (8 percent or more). About a third expect sales to be up somewhat (3 percent to 7 percent). And close to a third expect sales to be the same in 2024 as in 2023.
www.ahec.org
HARDWOOD LUMBER TO VIETNAM RECOVERING WITH GROWTH FROM OAK MARKETS
By Tripp Pryor, AHEC International Program Manager
Through the first half of this year, US Hardwood Lumber exports to Vietnam have strongly rebounded from a disappointing 2023. The United States has exported over 94 million board feet of lumber to Vietnam so far in 2024. This is a 34% increase from the same period last year (70.6 million board feet). This is the best first half of a year for exports to Vietnam by volume since 2021 (99.7 million board feet).
As one of the most price competitive American hardwoods, yellow poplar has always been the most popular species in Vietnam. However, over the last five years, the market has diversified to purchasing other American species. In 2019, yellow poplar accounted for over 46% of all US hardwood lumber exports to Vietnam by volume, and it accounted for over 51% of the total in 2020! This year, while yellow poplar is still the most popular species in Vietnam, it’s “market share” of the total volume is just 35%. The export volume of yellow poplar lumber to Vietnam has
increased by over 8 million board feet from the first half of last year, but the market share went down this year due to strong markets for red and white oak, western red alder, and other species. In fact, every species of American hardwood lumber tracked by HS code has sold more in Vietnam this year than last year.
White oak exports to Vietnam have been a relatively steady 20% of the total market and have shown a nice growth of over 3 million board feet through the first half of the year (+20%, total 20.7 million board feet). Red oak has picked up steam and grown from a 7% total market share in Vietnam in 2019 to now a 13% share in 2024. Red oak lumber exports to Vietnam are over 12 million board feet through the first half of the year, an increase of 4 million bf (+45%) from last year. Western red alder has also jumped 72% to returned to the market average of around 8 million board feet after a down year in 2023.
NHLA JOB BOARD
Here, you will find our current job listings. To see more details of the job or to post a job, visit www.nhla.com/resources/careers-center
HARDWOOD LUMBER INSPECTOR BRATTLEBORO, VT
Allard Lumber is seeking a full time lumber grader to grade primarily kiln dried hardwood at our heated dry division facility. We operate Monday – Thursday 7:00am to 3:30pm and on Fridays 7:00am to 1:00pm. We prefer to promote from within this company so there could be opportunities to grow for the right candidate.
HOW TO APPLY
Please send all questions, applications, and resumes to Jason Aplin at jasonaplin@allardlumber.com.
Allard Lumber 74 Glen Orne Dr. | Brattleboro, VT 05301 802-254-4939
HARDWOOD LUMBER INSPECTOR
MUSCODA, WI
A Lumber Grader involves a mix of practical skills, knowledge, and certification. As a Grader you will inspect and grade milled, rough hardwood lumber.
HOW TO APPLY
Please send all questions, resumes and applications to Sarah Wieland at sarah@wlumber.com.
Wieland & Sons Lumber Co. 1429 WI-133 Trunk | Muscoda, WI 53573 608-537-2999
INDUSTRY RELATIONS MANAGER
REMOTE | COLUMBIA, TN
We are seeking a dynamic and ambitious individual to join our team as an Industry Relations Manager. This unique role combines elements of sales, account management, and customer operations, with the primary objective of onboarding businesses to Lumber Marketplace and driving transactions on the platform. This opportunity is more than just a job; it’s a chance to be at the forefront of building our vision for “the world’s greatest company” right here in Tennessee.
HOW TO APPLY
Please send all questions, resumes and applications to Anthony Gallegos at anthony.g@lumbermarketplace.com.
Lumber Marketplace 931-201-9838
YARD MANAGER
BROOKVILLE, PENNSYLVANIA
Matson Lumber Company, a family-owned and operated business dedicated to excellence in the hardwood lumber industry, is seeking a proactive and experienced Yard Manager to oversee our yard operations to include goal setting, overall profitability and operational costs, promoting safety, quality, productivity, scheduling, employee staffing, training and discipline, supervision, facility appearance, inventory and maintenance.
HOW TO
APPLY
Please send all questions, applications and resumes to Jen Sorek at info@matsonlumber.com
Matson Lumber Company 814-849-5334
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