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H A R DWO O D M AT T E R S T H E VO I C E O F T H E H A R DWOO D I N D U ST RY
Made in America 2014: Wood Production is Growing 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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3DJH
DEPARTMENTS 16 18 20
Legislative Log Education Spotlight Rules Corner
READER SERVICES 4 President’s Message 6 Executive Director’s Message 7 Letters to the Editor 9 Inside NHLA 23 Job Board 24 Calendar
10 Photo Courtesy of AHEC
IN THIS ISSUE... 10 MADE IN AMERICA 2014: Wood Production Is Growing By Karen Koenig
CONTENTS W W W. N H L A .CO M
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H A R D W O O D M AT T E R S T H E VO I C E O F T H E H A R DWO O D I N D U ST RY
THE MISSION OF NH LA To serve NHLA Members engaged in the commerce of North American hardwood lumber by: maintaining order, structure and ethics in the changing global hardwood marketplace; providing unique member services; 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.
September 2014 ▪ Issue 149 National Hardwood Lumber Association PO Box 34518 ▪ Memphis, TN 38184-0518 901-377-1818 ▪ 901-382-6419 (fax) info@nhla.com ▪ www.nhla.com
EXECUTIVE COMMITTEE
MISSION LEADERS
Scott Heidler Heidler Hardwood Lumber Co. President
Skip Holmes Thomas & Proetz Lumber Co. Unique Services
Pem Jenkins Turn Bull Lumber Co. Vice President
Charlie Netterville Fred Netterville Lumber Co. Industry Advocacy & Promotion
Dave Redmond Highland Hardwood Sales, Inc. Past President 2010–2012
Greg Patenaude Péladeau Lumber, Inc. Membership & Marketing
Mark A. Barford, CAE Executive Director
Brent Stief Huron Forest Products Structure
NHLA STAFF
Gary Swaner Swaner Hardwood Co. Rules
Mark A. Barford, CAE Executive Director m.barford@nhla.com Renee Hornsby Director of Communications/Editor r.hornsby@nhla.com
■■■ Rich Hascher Inspector Training School Instructor This Month's Feature: Special Thanks to Wellborn Cabinet, Inc. Hardwood Matters would like to thank NHLA member company, Wellborn Cabinet, Inc. for their photo submissions that are featured in this month's article "Made in America 2014". Wellborn Cabinet came through on a last minute request and it is truly appreciated. On that note, Hardwood Matters is always in need of member/industry photos. If you are a member of NHLA and would like to submit photos of your company, employees, manufacturing process, etc. please send with a full description via email to r.rhornsby@nhla.com or by mail to:
John Hester Director of Membership Dana Spessert Chief Inspector Denise Stewart Director of Finance/CAO
NHLA Headquarters | Attention Hardwood Matters Editor PO Box 34518 | Memphis, TN 38184
COMMITTEE CHAIRS Jeff Durst Hull Forest Products Inspection Services Orn Gudmundsson, Jr. Northland Corporation Communications & Marketing/Finance Mark Mah Upper Canada Forest Products Hardwood Advocacy Darwin Murray McClain Forest Products Continuing Education Jim Reader Downes & Reader Hardwood Co. Membership Joe Snyder Fitzpatrick & Weller, Inc. Rules
For advertising inquiries: Contact John Hester, Director of Membership at j.hester@nhla.com or 901-399-7558.
Jim Steen Pike Lumber Co., Inc. Inspector Training School Kim Vollinger W. M. Cramer Lumber Co. Convention
ADVERTISER INDEX 9
Augusta Lumber Company, Inc.
17 Brunner-Hildebrand
2
20
Dunavant Global Logistics Group
5
Hardwood Forest Foundation
ibc
King City Forwarding USA, Inc.
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NHLA Convention
19 ifc
Pennsylvania & Indiana Lumbermens 21 U•C Coatings, LLC Mutual Insurance Companies 15 USNR Pike Lumber Company, Inc. 17 Wood-Mizer Blades
24 Simply Computing International, Inc. 3
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The Jacobs Team
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PRESIDENT’S MESSAGE
Las Vegas and The Hardwood Check-Off In November of 2013 the USDA rolled out the proposed Hardwood Check-Off for a comment period. After the initial roll out, NHLA confirmed its commitment to be a source of information for the North American hardwood industry. NHLA has not and will not take a stance on the Hardwood Check-Off. Taking a stance on either side of this issue will not only upset some portion of our membership, but more importantly it will not promote, educate, or enhance the Rules for the inspection and trade of hardwood lumber. Instead, NHLA has made the commitment to disseminate information concerning the Hardwood Check-Off through various mediums. To emphasize the commitment, NHLA started a blog on the Association website and has been printing letters to the editor in Hardwood Matters as they have been submitted. In addition, NHLA will now hold a Hardwood Check-Off Discussion & Panel Open Forum at this year’s NHLA Convention & Exhibit Showcase. The Hardwood Check-Off Discussion & Panel will be held on Thursday, October 9 from 4 p.m. to 6 p.m. Please check the on-site convention schedule for the exact location. The format will consist of a 15-minute introduction by the supporting and opposing viewpoints. Jeff Hanks will represent those opposed to the Check-Off on the panel. Those supporting the Check-Off will be represented on the panel by Jim Howard. After the introduction and comments, there will be an hour and a half open discussion forum with the opportunity for anyone in attendance to ask questions of either viewpoint. At the end of this open forum, it is my hope that those in attendance will have a full understanding of the proposed Check-Off and how it will affect our industry as well as their individual companies. I hope I will see you next month in Las Vegas at the 2014 NHLA Convention & Exhibit Showcase! Respectfully,
NHLA will now hold a Hardwood Check-Off Discussion & Panel Open Forum at this year’s NHLA Convention & Exhibit Showcase.
Scott Heidler Heidler Hardwood Lumber Co. 773-847-7444
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COME BOWL
WITH TOMMY MAC! Hardwood Forest Foundation
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EXECUTIVE DIRECTOR’S MESSAGE
Where Do Hardwood Lumber Markets Go From Here? The recent jumps in lumber prices have been most welcome for an industry that has seen the markets in a general decline for the past 10 years. Over the years of decline, there have been a few false starts with certain species and grades but this spring saw the first general, across the board increase that the industry has needed. The biggest question now is “what’s next?” To make an educated prediction, the industry needs first to understand the monumental shift that the hardwood markets have made, and will continue to make. Companies that survived the past decade had two common attributes – the ability to change their internal management model and the willingness to find new markets. Internally, we have seen many longtime companies and employees leave the hardwood lumber industry. All companies scaled back and reduced overhead. Some companies that tried to stay in business probably wished they had pulled out sooner before they spent their hard earned savings and then closed up anyhow. Stories of longtime family members and dedicated employees retiring early became common. The remaining hardwood industry is now lean and mean! New markets literally have been chased around the world. The North American hardwood industry now exports the majority of its high grade lumber, with China and Vietnam showing the biggest gains in North American imports. Europe remains in the doldrums but is still an important market. Some emerging markets find our prices not competitive with less expensive hardwood suppliers from other countries and there are problems when competing against the world suppliers and not just the mill around the corner. Issues such as exchange rates and government assistance affecting the fair trade model that we are accustomed are just the beginning. In general, it is the world that will guide our product demand curve in the coming years.
In general, it is the world that will guide our product demand curve in the coming years.
The outlook for China remains strong, despite recent warnings of reduced growth. The U.S. GDP growth rate is estimated at approximately 2 percent this year, making the 7 percent expected growth in China strong. The strength and stability of the overseas market for North American hardwoods depends on diversity of both buyers within a geographic area and expansion into other countries. Here is where the industry must remain vigilant.
Sincerely,
The answer to the question of “what’s next?” – the hardwood lumber industry will continue to expand to meet growing markets both domestically and around the world. With a resource that is growing twice as fast as it is being utilized, the raw supply is not an issue, we just have to find the markets to stabilize demand and reduce shocks like we have endured over the past decade.
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Mark Barford, CAE, Executive Director National Hardwood Lumber Association 901-377-1082 direct | m.barford@nhla.com www.nhla.com
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LETTERS TO THE EDITOR
Fundamental Change in Production Makes Check Off Program Unrealistic Dear Editor: Firstly, I appreciate NHLA for providing me the opportunity to express my views on the Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order, commonly referred to as the “hardwood check off.” In my opinion, at one time such a program would have made a meaningful contribution to the future of the hardwood industry. I was an NHLA board member, when the “check off” was first proposed years ago. At that time, I fully supported the idea, believing it would give us a much greater capacity to promote the resource and educate the public. However, due to different circumstances in the hardwood economy, I no longer believe this to be the case. Under the Order’s section titled "Need For a Program," proponents note the reduction in the volumes of hardwoods used in the cabinet and flooring sectors. While not disputing the reduction, I believe it is primarily a result of the near collapse of the housing industry. As the economy generally and housing specifically recovers, hardwood markets have indeed followed. It is unlikely that a hardwood promotion program could or would result in any meaningful decoupling of this basic economic relationship.
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The section also points to a reduction in the use of hardwood lumber and plywood by the domestic furniture industry. One of the primary reasons I once supported the “check off” was, at that time, we had a domestic furniture industry. No more. There has been a fundamental change in the furniture industry to outsource manufacturing to areas with lower costs of production such as Southeast Asia and Mexico. I believe the hardwood promotion program is unlikely to influence or reverse this trend. I don’t have a vote in this process, but I do have an opinion. I think the justifications for the program are flawed, and the results of the program are likely to fall short of expectations. The assessment and the costs of the program’s administration will divert precious dollars that could be used to update and repair plants and equipment, acquire new technologies, and to purchase raw materials. This, in my opinion, will better prepare the industry to face the future. Sincerely, Matt Bennett | Emmet Vaughn Lumber Company Knoxville, TN
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LETTERS TO THE EDITOR
An Opportunity for Industry Advancement The Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order is an opportunity for industry advancement. As stated in the Commodity Promotion, Research and Information Act of 1996, which authorized commodity programs, the primary purpose is to: Develop, finance and carry out an effective, continuous and coordinated program of generic promotion, research and information regarding agricultural commodities [hardwood lumber and hardwood plywood].
The goals of the program are:
1. Strengthen the position of [hardwood lumber and hardwood plywood] industries in the marketplace;
2. Maintain and expand existing domestic and foreign markets and uses for [hardwood lumber and hardwood plywood];
3. Develop new markets and uses for [hardwood lumber and hardwood plywood]; or
4. Assist producers in meeting their conservation objectives.
Our industry meets regularly. At each gathering, these same goals are passionately discussed. The Federal Research and Promotion Program established by the Act of 1996 is a viable means to turn our conversations into actions to affect positive change for our industry. The Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order is not the first “Check-Off” of its kind, nor is the hardwood industry the first with unique products, grades and end uses. The following industries, including Paper and Paper Based Packaging and Softwood Lumber, have active Check-Off programs. ■ ■ ■ ■ ■ ■ ■ ■ ■
Beef Blueberries Christmas Trees Cotton Dairy Products Eggs Fluid Milk Hass Avocadoes Honey Packers and Importers ■ Lamb ■ Mangos
■ Mushrooms ■ Paper and Paper Based Packaging ■ Peanuts ■ Popcorn ■ Pork ■ Potatoes ■ Processed Raspberries ■ Softwood Lumber ■ Sorghum ■ Soybeans ■ Watermelons
Each of these commodity programs uniquely drives demand for their products through research and consumer messaging. Each industry decided that a collective effort was better than fragmentation. Each industry now has funds to develop and tell its story. The hardwood industry also has a vibrant story to tell – something we all agree on. (Continued on page 22)
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INSIDE NHLA
NHLA EXPLORES NEW MARKETS IN BRAZIL NHLA Chief Inspector, Dana Spessert recently attended the four-day ForMobile furniture industry show in Sao Paulo, Brazil at the invitation of the American Hardwood Export Council (AHEC). In addition to hosting NHLA, the AHEC pavilion played host to several organizations including Northwest Hardwoods, Hardwood States Export Group with representatives from Indiana and Pennsylvania, and the Hardwood Plywood and Veneer Association (HPVA). Visitors to the pavilion trickled by slowly on day one with a gradual gain in flow throughout the week. Although there seemed to be interest in the “Exotic American Hardwoods� most visitors indicated that they were very small furniture builders and requested small amounts of hardwood lumber. There was a request from a neighboring city official for education about North American hardwoods, its uses and grades. The Brazil hardwood industry appears to be somewhat underdeveloped when it comes to imported species, as the country has its own species and supply, making the import concept a very new idea to most.
AHMI SUMMER FAMILY CONFERENCE Executive Director Mark Barford and Director of Membership John Hester attended the Appalachian Hardwood Manufacturers, Inc. (AHMI) Summer Family Conference in beautiful Hot Springs, VA at The Homestead. The meeting was extremely well attended and spirits were high with the continued improvement seen in the Appalachian market. During the program, Mark Barford had the pleasure of presenting and explaining the NHLA Kiln Drying Certification Program to a capacity crowd. It was also a great time to network, on a regional level, with NHLA members and non-members alike. As always, Tom Inman and the AHMI staff did a fantastic job and we look forward to attending next year.
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Made in America 2014:
Wood Production Is Growing
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By Karen Koenig Good news for Americans: U.S. manufacturing continues to rise, with industrial production up 4.3 percent in June compared to the same period a year ago, according to recent figures from the Federal Reserve. W W W. N H L A .CO M
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The trend can be seen across market segments, and the wood products industry is no exception. Federal Reserve figures by industry show the wood products sector growing 5.5 percent in production year over year, with furniture and related products advancing 5.9 percent in June 2014 compared to a year ago. This is borne out almost weekly, where WoodworkingNetwork.com reports on wood products manufacturers opening new plants, expanding business and/or reshoring production. The news is coming from large and small manufacturers in all market segments: cabinetry, furniture, millwork and components, flooring and more.
Some examples from 2014 include: ■ Ethan Allen announced plans for a major expansion of the company’s U.S. residential furniture manufacturing efforts following a profitable 2013 fiscal year. ■ Dimension lumber and component manufacturer, Quality Hardwood announced it would expand its operations, creating 25 new jobs. ■ United Furniture said it will invest approximately $5 million to convert a former North Carolina factory into an upholstered furniture plant, creating 200 jobs. ■ MasterBrand Cabinets Inc. announced plans to expand its Indiana operations, creating up to 262 new jobs by the end of 2016.
■T he sister company of flooring maker Trout River Lumber, Trout River Dry Kiln is investing $5.5 million in its operations, creating 40 new jobs. ■C abinet manufacturer RSI Professional Cabinet Solutions capped off a busy 2013 with the completion of a 50,000-square-foot expansion at it Mira Loma, CA, facility. ■A fter inking a five-year deal with IKEA, RTA giant Sauder Woodworking said it will hire 150 employees and invest $13 million to expand its furniture production. ■D elta Furniture recently expanded its operations in Mississippi to accommodate an increase in upholstered furniture production. The move creates 50 new jobs. ■P rime-Line, an Arkansas-based manufacturer of MDF moulding and millwork, opened a new plant. One of Lowe’s largest product suppliers, the company invested $7.2 million in a new plant in the state, and will double its workforce as business grows a projected 10 to 15 percent over the next three years. ■ A nd in an example of industry reshoring, Armstrong World Industries began construction this year on its Lancaster, PA, facility where it is expanding manufacturing capacity for its flooring lines to include luxury vinyl tile for residential and commercial use. The company’s decision to make the $41 million investment and onshore its LVT production from China suppliers was announced in October 2013.
Photo Courtesy of Gat Creek Furniture
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Photos Courtesy of Wellborn Cabinet, Inc.
The Reshoring Trend Boston Consulting Group’s 2011 report “Made in America, Again: Why Manufacturing Will Return to the U.S.” and the 2012 follow-up, “U.S. Manufacturing Nears the Tipping Point,” explain the reshoring trend and the reasons behind the growing phenomenon. Chief among the factors, the rise in foreign wages is helping to level the playing field between China and the United States. Since 2000, when factory wages in China averaged 52 cents an hour, they have risen by double digits, averaging increases of 19 percent between 2005 and 2010. By contrast, BCG notes, wages of U.S. factory workers rose by less than 4 percent during the same period. “Companies that continue to treat China as the default low-cost option for supplying U.S. markets on the basis of wage rates alone could soon find themselves at a competitive disadvantage,” the study notes. Technology, higher U.S. worker productivity, supply chain logistics and other factors also will continue to drive the reshoring effort, particularly among the seven “Tipping-Point Industries” identified in the study: transportation goods; computers and electronics; fabricated metals; machinery; plastics and rubber; appliances and electrical equipment; and furniture.
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According to the report, these “tipping-point industries” account for almost $2 trillion of U.S. consumption and nearly $200 billion in imports from China. Of note, furniture accounted for $75 billion of the consumed goods, and $13 billion in Chinese imports. According to the study, an estimated 10 to 30 percent of goods currently imported from these seven industries could be reshored in this decade. “We project that manufacturing in the seven tipping-point industries, combined with increased U.S. exports to Western Europe and other developed markets, will add $80 billion to $120 billion in annual output to the U.S. economy and create 2 million to 3 million jobs over the coming decade, of which manufacturing jobs will represent about 25 percent,” say the authors.
Labor Costs Spur Reshoring A survey completed earlier this year by the Entrada Group also illustrated the popularity of reshoring and near-shoring by companies, with the United States ranked as the most attractive “low-cost” manufacturing location worldwide, followed by Mexico. “With labor costs rising in the Far East, it isn’t surprising that companies are considering production locations in their own
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backyard,” said Doug Donahue, principal and vice president of Business Development with Entrada Group. “Additionally, for the past decade or so, manufacturers have seen increased pressure to produce in the same region where their product is sold. Thus, for many manufacturers, the U.S. is becoming more attractive due to rising costs in China coupled with this trend of regionalization.” A survey last year by BCG offered similar results. The group noted a significant jump in the number of large U.S.-based manufacturing companies – with sales greater than $1 billion – that were considering the reshoring of their production from China. Of the more than 200 executives surveyed, 54 percent said they were “planning” or “actively considering” it, compared to 37 percent only 18 months earlier. This is good news for the U.S., which has already seen an estimated 100,000 jobs returning in the last four years from companies reshoring production, notes the non-profit organization The Reshoring Initiative. According to Harry Moser, founder and president, additional benefits for companies reshoring include: improved product quality and consistency, improved turnaround time between order entry and shipment, reduced cost of ownership, reduced intellectual property and regulatory compliance risk, and the ability to cluster manufacturing near R&D facilities to enhance innovation.
Global Investments in America U.S. manufacturing is also getting a boost from global investments. Two recent examples in the woodworking industry are Belgium-based BuzziSpace Inc.’s announcement earlier this year that it would locate a plant in North Carolina, and German-based Menck’s investment in a window production plant in Massachusetts, part of a manufacturing partnership between Menck USA and Menck-Fenster. And despite a recent setback, Chinese furniture maker GOK has said it still plans to open a woodworking plant in Virginia, a move that would create hundreds of new jobs in the state. In the meantime, Chinese-based Zeyuan Flooring said it would take over GOK’s lease at the industrial park in order to open its first U.S. manufacturing facility. There are many more examples of foreign plant investment in recent months. According to information presented at The M&A Advisor’s symposium on The New American Renaissance in Manufacturing, foreign capital investment in America jumped nearly 40 percent in 2013, to $208 billion. Experts predict that number will continue to grow in the coming years. “A growing number of global companies are realizing there has never been a better time to invest in America,” said U.S. Secretary of Commerce Penny Pritzker during the recent Reinvesting in America, Creating Jobs at Home forum. “Many of them are finding that the total cost of production and other expenses related to manufacturing abroad can carry costs and risks that outweigh the benefits and are considering domestic operations. “Businesses across the globe are looking to invest in U.S. manufacturing and services, and through Select USA, the Commerce
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Department is continuing its work to support and educate companies interested in reshoring,” she continued.
Furniture abruptly closed its doors in January 2013. In an interview with WBTV, Lincolnton Furniture President and CEO Bruce Cochrane cited price competition with Chinese furniture, plus unanticipated costs to retrofit the existing plant, as contributing to the shutdown. The company manufactured bedroom and dining room furniture.
“Many companies that have offshored are unhappy with the quality of goods produced overseas,” added Rep. Frank Wolf, chairman of the House Appropriations subcommittee that funds the Commerce Department.
It bears mentioning that another challenge for those particularly in the wood products industry continues to be employee recruitment, in particular the lack of skilled labor. A number of programs are already in place at local and national levels, including those offered by various trade groups, which are intended to alleviate this problem over time. ■ This article is reprinted courtesy of Woodworking Network, Vance Publishing Corp. www.WoodworkingNetwork.com
“Labor costs are rising rapidly. Shipping costs are rising rapidly. The cost due to the theft of intellectual property by the Chinese government is almost incalculable. That’s why there has been so much more interest in reshoring manufacturing over the last several years. I believe this trend will continue to accelerate, especially with encouragement from the government and business community. “A great nation cannot survive by exporting ideas and innovations alone. It needs to also produce these items as well. Our future depends on it,” Wolf added.
Challenges of Reshoring Of course, not all reshoring efforts have been successful. Of note was Stanley Furniture’s unsuccessful attempt to bring its Young America production back to the United States, due in part to the inability to “achieve an acceptable level of revenue within an adequate time frame to assure sustainable profitability.” The closure of the Young America plant was not from a lack of effort. Stanley Furniture invested millions in outfitting its production with new technology, but found consumer demand for its Americanmade products waned when faced with a higher price tag. In an interview with the New York Times, president and CEO Glenn Prillaman also cited competition from China, particularly for U.S.-sourced lumber and veneer, as a contributing factor to the problem. Stanley’s Young America was not the only company to reshore, only to encounter problems. Approximately one year after being lauded by President Barack Obama as an example of America’s manufacturing resurgence, Lincolnton W W W. N H L A .CO M
Millwide. Worldwide.
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LEGISLATIVE LOG
Reach Out and Be Heard This Fall By Dana Cole, Executive Director, Hardwood Federation September is upon us and the United States Congress will be returning to Washington shortly from their home states and districts. However, they will not be here long! The bulk of the fall months will be spent on the campaign trail. November 4, 2014 is Election Day and it is a big one. Retirements, surprise primary upsets, and closely contested races are making this one of the more interesting campaign seasons in a while. Because Members of Congress will be spending more time at home and less time in Washington over the next few months, this is an excellent opportunity for you, as a member of the hardwood business community to reach out and make your voice heard. The Hardwood Federation does this on a daily basis in Washington, D.C., but raising important issues that impact you as a voter in a senator or congressman’s own home can send a powerful message as well. The Hardwood Federation will be holding our annual Fly-In to Washington on September 9 and 10 this year. Many of you and your colleagues are registered to attend, and we very much appreciate their willingness to give their time to forwarding our agenda. Whether you plan to attend the Fly-In or not, you can still be a part of the process. Below are just a few points that you can make to current office holders and candidates. These are the same issues and points we will be making in September‌and the rest of the year.
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Your help in spreading the word at home will have a tremendous impact. Northern Long-Eared Bat (NLEB) The US Fish and Wildlife Service (USFWS) is considering listing the NLEB as an endangered species. If the bat is listed as endangered, it would trigger a number of restrictions that would have a chilling effect on timber harvesting in 39 states between the months of April and October. The general consensus (including USFWS) is that the sole threat to these bats' populations is a fungal disease discovered in 2006 called White Nose Syndrome (WNS) which has no direct link to forestry related activities. Unfortunately, there is not yet a cure for WNS and shutting down timber and harvesting activities would do nothing to stem the spread of the White Nose Syndrome which is devastating the NLEB population. Talking Points: â– A sk your Member of Congress to contact USFWS and urge them NOT to list the bat as "endangered." Banning access to private and federal lands to save the NLEB will do nothing to address the devastating impacts of WNS on the bat population.
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LEGISLATIVE LOG
■ A sk your Member of Congress to support more federal funding for applied research to find a cure for WNS. ■ A sk your Member of Congress to encourage USFWS to work closely with state government agencies in impacted states on this issue. They are on the front lines of managing the bat populations and have valuable insight and information. USFWS should also be sure that they have considered the most recent science related to how WNS is spread. Biomass and Carbon Neutrality The U.S. Environmental Protection Agency is poised to release a document in the month of August that will determine how carbon emissions from biomass combustion will be treated under the Clean Air Act. This document, known in EPA's parlance as the "biogenic framework," could very well determine the fate of the concept of biomass carbon neutrality. This internationally recognized principle accepts that carbon is released when biomass is burned, but acknowledges that the forests from which that biomass is sourced are constantly sucking up and storing carbon from the atmosphere. It is a dynamic cycle that ensures terrestrial carbon emissions are stable or even declining over time. EPA has said many of the right things in public testimony and in private meetings on the issue. What we need now is simply to have the draft proposal released so that the regulated community can have ample time to react to it and provide our input. Talking Points: ■ U rge your Member of Congress to communicate to EPA the need to release the biogenic framework as soon as possible. ■ A s part of this communication, reinforce the need for this document to fully recognize the natural carbon cycle and acknowledge that biomass has a neutral or negligible impact on atmospheric carbon
ANY WAY YOU CUT IT,
IT’S GOT TO BE
WOOD-MIZER
■ L et your Member of Congress know that if EPA treats biomass carbon emissions the same way coal and other fossil fuels are treated, it will severely harm every link in the forestry/forest products sector. Look for your Members of Congress at campaign rallies, parades, community celebrations, church events, business association meetings, and scheduled town hall sessions. Take the time to become engaged in your backyard…it really is true that all politics is local. And you can make a difference.
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LAMES À BANDE INDUSTRIELLES
8/7/14 10:01 AM
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EDUCATION SPOTLIGHT
THE NHLA INSPECTOR TRAINING SCHOOL EMBRACES NEW TECHNOLOGY AND FURTHERS ITS EDUCATIONAL OUTREACH By Dana Spessert, Chief Inspector Ever since I graduated from the NHLA Inspector Training School, I knew that I was among the elite professionals in the hardwood lumber industry. At the time, I thought that graduating from the School was the only way to succeed in the hardwood industry. Over the years, I have learned that you can survive the hardwood industry without attending the NHLA Inspector Training School – but why? It takes years for non-graduates to learn what I did in just 14-weeks. The NHLA staff has been working very hard to offer more educational opportunities to the industry. To give nontraditional students the opportunity to gain the vital knowledge they need to succeed in the hardwood industry. I am happy to announce that for the first time ever, NHLA will offer a combined classroom and distance learning Inspector Training School Program. The newly developed “Progressive Lumber Inspector Training Program” is a block of classes comprised of three block segments.
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■ Block 1 requires two weeks of classroom study and board runs at the NHLA Inspector Training School in Memphis, TN. ■ B lock 2 allows for up to 12 weeks online study for memorization and study of required material. ■ B lock 3 requires an additional two weeks of classroom study and board runs at the NHLA Inspector Training School in Memphis, TN. Students who successfully complete all 3 required blocks will receive a certificate of completion. NHLA will continue to offer the traditional 12-week lumber grading program and remains committed to the ongoing education of the hardwood lumber industry’s future leaders and employees.
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RULES CORNER
UNDERSTANDING PROPRIETARY GRADES By Dana Spessert, Chief Inspector As the Chief Inspector for NHLA, I have learned that a little bit of understanding of the NHLA Rules can and does go a long way in providing continuity between buyer and seller. I recently had a hardwood flooring producer contact me about inspecting lumber that was purchased using a proprietary grade. Using proprietary grades is not uncommon and quite frankly in some cases very efficient and useful. The problem with proprietary grades is not that companies can and do have different needs or requirements, it is relaying this requirement to the proper people at the manufacturer’s facility. When a specification is written using terms like, “some," “small amount,” “ugly defect” or “large hole” the trained Lumber Inspectors in this industry have no clue how to interpret this rule/language. If when writing a proprietary grade the author would consult an experienced Lumber Inspector and use terms like “NHLA 1 Common: Standard Except: Sound knots, bird peck or similar defects allowed without limit in the required
Sound Knot
cutting area” then the proprietary grade can be repeated and verified resulting in longer term relationships. I would like to highlight a grade that is probably not well known to most of the industry, but I do hear of similar “Proprietary Grades” from time to time, “Colonial Poplar.” This little known grade has a lot of similarities to what I have heard termed “Rustic Grade.” Below is the description of this grade copied from the 2011 NHLA Rules Book.
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RULES CORNER
■ Widths: 4" and wider – Lengths: 6' to 16'. ■ M inimum cuttings: 4" wide by 2' long, or 3" wide by 3 long. Each required cutting will admit without limits sound knots, spot worm holes, pin worm holes, bird peck, streaks, stain, and burls. ■ Th e reverse side of each cutting shall be sound as defined in "Sound Cutting," except that holes larger than 1/8" in diameter are not admitted. ■ K nots admitted may contain checks or splits not exceeding in depth one-half the thickness of the piece. ■ Admits pieces that will yield 66-2/3% in cuttings as follows: – – – – –
Pieces 2' to 4' surface measure in 1 cutting Pieces 5' to 7' surface measure in 2 cuttings Pieces 8' to 10' surface measure in 3 cuttings Pieces 11' to 13' surface measure in 4 cuttings Pieces 14' & over surface measure in 5 cuttings
■ B y agreement between buyer and seller, defects on the edges and/or ends may be marked off. When this method is agreed upon, the surface measure and grade shall be determined inside the markings on the piece. Rustic Oak ■ Th e grading rules for Colonial Poplar shall apply in all respects, except that one additional cutting is allowed.
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If I were selling a product that my customer asked to be a “Rustic Grade” I believe I would utilize this grade. Worst-case scenario, you will have the NHLA Rules, Inspection Services and Sales Code to back you when challenged with a claim!
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Questions about the NHLA Inspector Training School or the NHLA grading Rules should be directed to: Reduce Losses, Conserve Resources and Improve Yield with ANCHORSEAL ® and ANCHORSEAL 2 ®
Dana Spessert NHLA Chief Inspector 901-399-7551 | d.spessert@nhla.com
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LETTERS TO THE EDITOR
An Opportunity for Industry Advancement (Continued from page 8) Admittedly, there are contentious issues – the Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order originated in big government, but so do transportation systems that move our products domestically and abroad. Yes, the Order allows hardwood lumber product and hardwood value-added product manufacturers to deduct hardwood lumber purchases while hardwood lumber and hardwood plywood manufacturers are unable to deduct raw material costs (hardwood logs) associated with producing hardwood lumber and plywood. However, I, as a sawmill owner and primary manufacturer, take responsibility to build a stronger industry. It is time to take a step towards collective, comprehensive promotion and research to better our industry for today and future generations. The Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order is an effective means to do so. Therefore, I support the Hardwood Check-Off. Sincerely, Nordeck Thompson | Thompson Appalachian Hardwoods
It’s Time for the Government to Help Our Industry I have operated a hardwood sawmill since 1978. During this time I have witnessed a dramatic decline in demand for our product. This trend must change for our industry to remain viable. Hardwood industry people do not sit back and let things happen to them. We take action. I feel, after careful consideration, the Check-Off program is a must. We must band together to promote the use of our Sustainable Hardwood Products and reverse the trend of decline. I, as most everyone else, would like for the government to leave our businesses and us alone, but this is unrealistic. They tax, fine, and regulate us; now it's time for them to help us. The money raised by the Check-Off puts resources in the hands of industry control and can go a long way in helping raise demand for U.S. hardwoods. Respectfully, Leslie Rutland | Rutland Lumber Co.
SUBMIT A LETTER Letters to the Editor should be sent to Renee Hornsby, Director of Communications/Editor of Hardwood Matters at r.hornsby@nhla.com, by fax at 901-382-6419 or by mail to: NHLA, Attention Renee Hornsby | PO Box 34518 | Memphis, TN 38184 Comments are also accepted at www.nhla.com/nhlablog The letters which appear are the opinions of the authors and do not represent the opinions of the Association.
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JOB BOARD
Lumber Inspector Hartzell Hardwoods is seeking a Lumber Inspector with a minimum of 2 year’s experience in grading walnut lumber along with other hardwoods species. NHLA schooling is preferred but not mandatory.
pre-tax Health Savings Account, 401 (k) Retirement Plan with company match, paid vacation, paid holidays and Employee Assistance Program. Salary is based on experience. To apply please submit your resume and letter of interest to: greg.liceraga@northwesthardwoods.com
WORKING FOR US MEANS... Health and Life Insurance, Incentive Programs, Retirement Benefits/401 (k), Sick Pay and Medical Leave, Vacation and Holidays, Work-Life Programs, Fitness Reimbursement Benefit, Flexible Spending Accounts, Tuition Reimbursement and Many More!
Northwest Hardwoods, Inc. 657 76th St. SW | Byron Center, MI 49315 616-455-3510 www.northwesthardwoods.com
To apply visit: https://home.eease.adp.com/recruit/?id=9239931 or www.hartzell.com
Operations Manager
Hartzell Hardwoods 3310 N. Industrial Dr. | Kirksville, MO 62501 937-773-6295 Lumber Inspector Shamrock Plank Flooring is seeking to hire a Lumber Inspector. The successful candidate's duties will include consistent and accurate grading of surfaced and green lumber in a manufacturing operation. The successful candidate must be NHLA Certified or have equivalent experience; must have a good work history and desire to learn and grow; and must complete successful background check. Shamrock Plank Flooring provides competitive compensation and benefits. Salary is based on experience. To apply contact the HR Department at scollie@jtshannon.com Shamrock Plank Flooring 2200 Cole Road | Horn Lake, MS 38637 800-473-3765 | 662-280-6096 (fax) www.jtshannon.com
Hartzell Hardwoods is seeking an Operations Manager for its Piqua, Ohio location. The Operations Manager leads the Piqua Operations to meet Customer expectations and exceed internal commitments in the areas of Safety, Quality, Delivery and Cost. The Operations Manager will focus on process improvement, quality, productivity, inventory, delivery and margin improvement. ■ Q ualified candidates will have the following qualifications and required skills: Bachelors degree from an accredited college with a degree in Operations, Engineering, Business or other related field is strongly recommended. ■ M inimum of 5 years experience in a supervisory role in a manufacturing environment. ■ K nowledge of hardwoods operations a plus. ■ E xperience in Lean manufacturing and process improvement initiatives. Demonstrated record of safety improvements, reducing safety related incidents. Proven ability to develop collaborative relationships and influence up, down, and across organizational lines. ■ E xcellent teamwork and communications with Suppliers, Customers, Customer Service and Associates.
Lumber Inspector Northwest Hardwoods, Inc. is seeking a Lumber Inspector. Primary duties and responsibilities include consistent and accurate grading of surfaced and green lumber in a high production manufacturing operation.
■ E xcellent analytical, problem solving/decision making skills; ability to make timely, effective, fact based decisions. ■ K nowledge of Microsoft office suite software (e.g. Word, Excel, PowerPoint, etc.).
The successful candidate must be NHLA certified or have equivalent experience, have the flexibility and ability to work in a team oriented, fast paced work environment with primary focus on personal and team safety behaviors. Good work history and safety record with a strong desire to learn are required. Job offer is contingent on successful background check and drug screen.
To apply visit: https://home.eease.adp.com/recruit/?id=9908711
Northwest Hardwoods provides a highly competitive compensation program with profit sharing plan. A comprehensive benefit package includes: medical, dental, prescription and vision care coverage, company paid life insurance, short term disability,
* To view current job postings or to post a job, visit www.nhla.com/jobboard.
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Hartzell Hardwoods 1 025 S. Roosevelt Ave. / Piqua, OH 45356 937-773-6295
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CALENDAR
WH ERE IN THE WOR LD IS N H LA?
EDUCATION & TRAIN I NG
Virginia Forest Products Association Annual Convention
1 75th Class NHLA Inspector Training School
Hot Springs, VA | September 5–7 Speaking: Mark Barford, CAE, Executive Director
Hardwood Federation 2014 Fall Fly-in
4/5 Day Lumber Grading Short Course
Washington, DC | September 8–10 Participating: Mark Barford, CAE, Executive Director
2014 NHLA Annual Convention & Exhibit Showcase
Las Vegas, NV | October 8–10 Red Rock Casino, Resort & Spa
NHLA Board Meeting
Memphis, TN | November 16–18 The Peabody Hotel
Memphis, TN | September 3 – November 21 | NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com
Elkins, WV | September 8–12 | West Virginia Wood Tech Center Instructor: Barry Kibbey, NHLA National Inspector Contact: Matt Wyatt | 304-637-7500 | matt@wvwoodtech.com
Flex-Day Lumber Grading Short Course
Indianapolis, IN | November 3–7 | Wood Mizer Products, Inc. Instructor: Barry Kibbey, NHLA National Inspector Contact: Denice Helmbrecht | 31 7-875-3660
1 75th Class Graduation NHLA Inspector Training School
Memphis, TN | November 21 | NHLA Headquarters 8am Open House | 9am Graduation Ceremony Visit www.nhla.com/calendar for more updates.
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LAST CHANCE TO PLACE THE WINNING BET! REGISTER TODAY FOR THE NHLA ANNUAL CONVENTION 2014 NHLA ANNUAL CONVENTION & EXHIBIT SHOWCASE OCTOBER 8–10, 2014 | RED ROCK CASINO RESORT & SPA | LAS VEGAS, NV www.nhlaconvention.com