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TH E VOIC E O F THE HARDWOOD IN DUSTRY

H A R D W O O D M AT T E R S A p ri l 20 1 8

Doing More to PROMOTE the Hardwood Industry as a Career Path

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FOREST INDUSTRY TECHNOLOGY AND CASH FLOWS FROM TIMBERLAND INVESTMENTS UNDERSTANDING OF THE NHLA GRADING RULES

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


Consistency. Yield. Trust. Specializing in Premium Pennsylvania Hardwood Lumber and Logs • Red Oak • White Oak • Hard Maple • Soft Maple

• Cherry • Poplar • Ash • Hickory

® Matson Lumber Company 132 Main St. Brookville, PA 15825

Your trusted source for exceptional quality and consistency for more than 200 years.

Phone: (814) 849-5334 Fax: (814) 849-3811 www.MatsonLumber.com info@MatsonLumber.com


CONTENTS April 2018 • Issue 188

WHAT'S INSIDE

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ONLINE

feature

instant

12 Forest Industry Technology and Cash Flows from Timberland Investments

TOP POST OF THE MONTH at facebook.com/NHLAOfficial Happy Friday Hardwood Industry! Time to put on our wood pants and get through this day. #funfriday

14 Doing More to Promote the Hardwood Industry as a Career Path

departments 8 Accolades 10 Legislative Log 20 Rules Corner 21 Alumni Notes

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nhla.com reader services

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President’s Message In The News Educational Calendar Job Board

ON THE ROAD AGAIN! INSPECTOR TRAINING SCHOOL SUMMER 2018 TORONTO 2018 SAVE THE DATE OCT. 2-4

Follow us

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H A R D W O O D M AT T E R S T H E VO I C E O F T H E H A R DWO O D I N D U ST RY National Hardwood Lumber Association PO Box 34518 • Memphis, TN 38184-0518 901-377-1818 • 901-382-6419 (fax) info@nhla.com • www.nhla.com

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

ADVERTISER INDEX 5

King City/Northway Forwarding

EXECUTIVE COMMITTEE

MISSION LEADERS

Brent Stief Huron Forest Products President

Jon Syre Cascade Hardwood LLC Unique Services

Darwin Murray McClain Forest Products Vice President

Nordeck Thompson Thompson Appalachian Hardwoods Rules

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

Orn Gudmundsson, Jr. Northland Corporation Structure

NHLA STAFF

Mike Powers Maley & Wertz Industry Advocacy & Promotion

Lorna D. Christie CEO l.christie@nhla.com Amanda Hinesley Digital Marketing Specialist a.hinesley@nhla.com Renee Hornsby Director of Communications/Editor r.hornsby@nhla.com Jennifer Reith Marketing Manager j.vandyke@nhla.com

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IFC Matson Lumber Company

Trisha Clariana Office Manager

IBC Pike Lumber Company, Inc.

Desirée Freeman Controller

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Julia Ganey Member Relations Manager Rich Hascher Inspector Training School Instructor

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Thompson Appalachian Hardwoods

John Hester Director of Membership and Business Development

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Thompson Hardwoods, Inc.

Carol McElya Accounting Assistant & Publications

For advertising inquiries: Contact John Hester, Director of Membership at j.hester@nhla.com or 901-399-7558.

Becky Miller Inspector Training School Administrator Dana Spessert Chief Inspector

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

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rd Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood • Ash • Cherry • Hard Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood •

HARDWOODS

rd Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood • Ash • Cherry • Hard Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood •

Emporium, PA, USA

rd Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood • Ash • Cherry • Hard Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood •

rd Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood • Ash • Cherry • Hard Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood •

SALES Sales@rossilumber.com rd Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood • Ash • Cherry • Hard Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood • www.rossigroup.net Middletown, CT, USA Ph 01 (860) 632 3505 Fax 01 (860) 613 3727

rd Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood • Ash • Cherry • Hard Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood •

rd Maple • Soft Maple le • Red Oak • White Oak • T Tuli ulipwood • Ash • Cherry • Hard Map Maple • Soft Map Maple • Red Oak • White Oak • T Tuli ulipwood •

The Gold Standard for American Cherry for over 50 years

rd Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood • Ash • Cherry • Hard Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood •

rd Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood • Ash • Cherry • Hard Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood •

rd Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood • Ash • Cherry • Hard Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood •

rd Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood • Ash • Cherry • Hard Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood •

rd Maple • Soft Maple le • Red Oak • White Oak • T Tulipwood • Ash • Cherry • Hard Maple • Soft Maple le • Red Oak • White Oak • T Tulipwood •

rd Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood • Ash • Cherry • Hard Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood •

rd Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood • Ash • Cherry • Hard Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood •

rd Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood • Ash • Cherry • Hard Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood •

rd Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood • Ash • Cherry • Hard Maple • Soft Maple • Red Oak • White Oak ak • T Tulipwood • WW W.. N NHHLLAA. .CCOOMM WW

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PRESIDENT’S MESSAGE

CALL FOR BOARD NOMINATIONS

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very year, we have open seats on the NHLA Board of Managers. This is an important opportunity to serve not only your industry but to learn from the best and brightest minds the hardwood industry has to offer.

The NHLA board is represented by all facets of the “active” category membership. Big and small, sawmills and yards, domestic and export, and members from all regions of the U.S. and Canada. If you think you have something to offer, you probably do. As a person who runs a very small sales company, I can attest to the fact that you don’t need to be an industry titan to belong or contribute. It is the diversity of ideas that gives the board its strength. Serving on the NHLA board requires a degree of commitment, but it’s certainly not overly taxing. We meet twice a year for 2-3 days and have committee conference calls once or twice between meetings, so not terribly onerous. The common thread I notice at board meetings is passion. Our board is loaded with passion for making our association and industry better and more profitable for all. We certainly do not always easily agree on the best route; our debates can sometimes be lively and passionate. But we all have one thing in common – we all want NHLA and its members to succeed. I can tell you from personal experience that the biggest reward of being a board member is learning from diverse points of view. We have plenty of very successful participants that bring all their experiences and expertise to the table to share. I assure you that you will not be disappointed about the ROI of your participation.

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A key component of a successful Board is diversity. And while we have broad representation of our active member categories, we have recognized that we could benefit from increasing participation from our “gen-next” members. Whether they are male or female, an increasing number of these members are taking a leadership role, particularly in our family-run companies. We will need their input to maintain our relevancy. If you fit in that category, please consider volunteering. If you are ready to serve, or just curious and want to learn more, please let us know. You can have a friend or colleague nominate you or can nominate yourself! Send an email to nhlanominations@nhla.com to indicate your interest or to nominate a worthy candidate. Please understand that because of our regional and business diversity requirements, a position may not be available to you on the first try. Most who share the passion will be nominated to the board in a year or two, as great talent and commitment to our industry is generally obvious. We need the best and brightest to continue to make your association as strong as possible. Please take this opportunity to promote a new slate of industry leaders. Regards,

Brent Stief, NHLA President | Huron Forest Products brent@huronfp.com

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IN THE NEWS UMD RIGHT NOW February 8, 2018

NEW PROCESS WILL LEAD TO THE REPLACEMENT OF HARDWOODS IN FURNITURE Wood Concrete Architect-The Journal of the American Institute of Architects February 22, 2018

ALTERNATIVE WOOD PRODUCTS AND PROCESSING METHODS TO WATCH By Blaine Brownell Researchers at the University of British Columbia (UBC) have made a wood-based concrete. Rather than creating masonry units, the scientists have fashioned non-structural panels intended as replacements for wall panels, countertops, or flooring. The UBC wood comes from local trees ravaged by the mountain pine beetle (MPB). “Normally, cement repels organic materials, such as wood,” said Sorin Pasca, an ecosystem science and management master’s student working on the project. “But for some reason, cement sticks to lodgepole pine and this compatibility is even stronger when the tree has been killed—or you could say, enhanced—by the mountain pine beetle.” Unlike Lignacite’s product, the MPB wood concrete uses wood chips instead of gravel as its aggregate. It may therefore be modified using typical woodworking tools, permits nailing without pre-drilling, and is water-resistant. The material also provides a path to commercializing MPB wood, which sawmill operators have struggled to process in conventional ways.

At the University of Maryland, engineers have developed a process to make wood 12 times stronger and 10 times tougher. According to Liangbing Hu, the materials science and engineering professor leading the research, the modified material “could be a competitor to steel or even titanium alloys, it is so strong and durable. It’s also comparable to carbon fiber, but much less expensive.” The method involves removal of lignin, wood’s intercellular glue, and subsequent compression under low heat. The resulting material is reduced to 20 percent of its original thickness, with its fibers now held together by strong hydrogen bonds. In a UMD press release, Brown University professor Huajian Gao described the technology as “a highly promising route to the design of lightweight, high-performance structural materials, with tremendous potential for a broad range of applications where high strength, large toughness, and superior ballistic resistance are desired.” The researchers anticipate that the process will lead to the replacement of hardwoods in furniture and other applications with modified softwoods that grow more rapidly and are more widely available. https://umdrightnow.umd.edu/news/umd-researchers-createsuper-wood-stronger-most-metals

https://www.unbc.ca/releases/2007/wood-concrete

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MEMORIALS

WALTER RALSTON West Virginia native Walter Lee Ralston Jr., 89, passed away peacefully in his sleep recently in Arcadia, CA.

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mainstay in the lumber industry for nearly seven decades, Ralston’s 67-year sales career began in 1951 with Cherry River Lumber company of West Virginia and spanned subsequent decades with Georgia-Pacific (where he transitioned to Southern California), Coastal Lumber Company and most recently with W. M. Cramer Lumber Co., of Hickory, NC. A WWII Navy Veteran, having served on the USS Elokomin AO55 from 1946 to 1948, Ralston was also active in the Arcadia Community Church, a 32nd degree freemason in Pasadena, CA, a Shriner and an avid wood carver. Ralston is survived by his wife of 63 years, Joyce, his only son Brian, daughter-in-law, Heather, and his only granddaughter, the apple of his eye, Madison Lee Ralston. He is also survived by his younger brother John Neil Ralston and sister-in-law Mary Ralston of Arbovale, WV, sister-in-law Betty Ralston of Ronceverte, WV, and his many nieces and nephews. In lieu of flowers, the family requests that donations be made to the Prostate Cancer Foundation of Santa Monica, CA. To donate, visit www.pcf.org/donate.

2018 NHLA Annual Convention & Exhibit Showcase Oct 2-4 Sheraton Centre Hotel Toronto

Booths are selling fast! Don’t wait contact John Hester today. 901-399-7558 j.hester@nhla.com

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What is the NHLA Inspector Training School Progressive Class all about? The NHLA dictionary defines the progressive class as NHLA Inspector Training School Progressive Class

n·h·l·a \ in-ach-el-a \ in·spec·tor \ in-spek-ter \ train·ing \ trey-ning \ school \ skool \ pro·gres·sive \ pruh-gres-iv \ class \ klas \

A class designed to get your employees trained at a progressive pace saving you time and money. 1 Related to or characterized as progress; moving forward, onward; advancing. 2 A person employeed to grade lumber, to oversee the profits of a mill. 3 A body of students meeting regulary in person & online.

Register Now

Block 1 • April 9-20 • Memphis, TN Block 1 • August 6-17 • Memphis, TN www.nhla.com/education/inspector-training-school

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ACCOLADES

Congratulations

Milestone Members NHLA would like to recognize our members who are celebrating a milestone anniversary of 10 years or more during the months of March and April.

10 YEARS

50 YEARS

eLIMBS, LLC | Sustaining | March 2008

Harold White Lumber Inc. | Active U2 | March 1968 Baird Brothers Sawmill, Inc. | Active U1 | April 1968

30 YEARS East Ohio Hardwood Lumber Co. | Active U2 | April 1988 Rutland Lumber Co., Inc. | Active U1 | April 1988

ON THE ROAD AGAIN! THE NHLA INSPECTOR TRAINING SCHOOL IS ON THE ROAD THIS SUMMER AND HEADING TO TRAVERSE CITY, MICHIGAN. Take advantage of the summer ten week course! This program will teach the rules and applications of the NHLA grading system and prepare students for a new career in the hardwood industry. Class will be held May 16 – August 3* at Northwestern Michigan College. Space is limited so register TODAY! For more information, contact Becky Miller at 901-377-1818 or b.miller@nhla.com or visit www.nhla.com to register today. *Class dates span 11 weeks with a one week break for the July 4th holiday.

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For more than 20 years, Thompson Appalachian Hardwoods has manufactured and exported the highest-quality Appalachian hardwood lumber and logs. With control of raw material from the forest, Thompson Appalachian Hardwoods guarantees a consistent, high-quality product from start to finish.

SPECIES A S H · C H E R RY · C Y P R E S S · H A R D MA P L E · P O P L A R · R E D OA K · WA L N U T · W H I T E OA K

S P E C I A LT I E S K I L N D R I E D H A R DWO O D S · S T E AM E D WA L N U T · E X P O RT V E N E E R LO G S · E X P O RT S AW LO G S · G R E E N O N L AT H E LUM B E R Q UA RT E R S AW N H A R DWO O D S · S 2 S · S T R A I G H T - L I N E R I P · G A N G R I P · C U S TO M S O RT I N G C U S TO M PAC K AG I N G · E X P O RT P R E P

P.O. Box 160, 100 Harless Drive PHONE

931.469.7272

sales@thompsonappalachian.com

Huntland, Tennessee 37345 USA FAX

931.469.7269

w w w.thompsonappalachian.com


LEGISLATIVE LOG

2018

A Path Forward by DANA COLE, Executive Director Hardwood Federation

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n February, the Hardwood Federation’s Board of Directors and Hardwood Federation PAC Board of Directors met for their annual winter meetings in Washington D.C. The Federation Boards were pleased to welcome White House Director of Legislative Affairs and Assistant to the President, Marc Short to the meeting. Marc shared some of the Trump Administration’s upcoming policy priorities and took questions on a number of topics from the Board members present. It was a fascinating and enlightening look into the working of the White House and today’s political landscape. The primary agenda item for the Federation winter meeting is to set the direction and priorities of our efforts for the year. As this is an election year, there is a short window of opportunity to make meaningful progress on important legislative issues. Board members reviewed 2017 advocacy activity and studied the results of the annual Hardwood Federation Priority Policy Survey before considering the

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appropriate course of action for 2018. The ever, and often swiftly, changing world of politics and policy can shift some of this course, but reviewing our issues with industry experts on the Board at the start of every year is a tremendous help to the Hardwood Federation staff and an efficient way to focus efforts to provide the best possible assistance to the hardwood industry. In 2018, the top industry issues identified by the survey were Log Exports to China, Regulatory Reform, Federal Forest Management and Tax Reform. Issues closely behind those were Funding Government Programs that Enhance Exports, Biomass, Innovative Wood Products, and Trade. While most of these are not new topics for the Federation, the issue of log exports to China has quickly emerged over the last months and is clearly top of mind for many in the industry. The Federation

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The issue of log exports to China has quickly emerged over the last months and is clearly top of mind for many in the industry.

is considering all sides of the issue and researching what authority the federal government has regarding this issue. We are also closely monitoring, recent moves the Trump Administration has taken regarding international trade and what impacts these actions may have on the situation.

2018 may be a short legislative year, but it will be a busy one. Congress will continue to hear from us why it is important that the right decisions are made when considering reform measures in these areas . . . and why the wrong decisions can devastate our industry.

NHLA representatives to the 2018 Hardwood Federation Board of Directors include Scott Heidler, Heidler Hardwood Lumber Company (who also serves as Hardwood Federation Board Chair), Darwin Murray, McClain Forest Products (Hardwood Federation Immediate Past Chair), Ted Rossi, Rossi Group (Hardwood Federation Development Chair), and Jeff Wirkkala, Hardwood Industries, Inc. 2018 Hardwood Federation PAC Board Members representing NHLA include Troy Brown, Kretz Lumber Company, Darrell Keeling, Northwest Hardwoods, Charlie Netterville, Fred Netterville Lumber Company, and Mark Vollinger, WM Cramer Lumber Company. Thank you all for your willingness to serve! We would also like to note that long time Hardwood Federation Board Member Pem Jenkins completed his term in February; his tireless energy and dedication to our efforts will be missed. We thank him for his contributions.

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FOREST INDUSTRY TECHNOLOGY AND CASH FLOWS FROM TIMBERLAND INVESTMENTS by BROOKS MENDELL, PH.D. / www.forisk.com

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ach quarter, my team at Forisk publishes a set of industry assessments and forecasts for the forest products and timber industries. Our North American clients include (1) large timberland owners and managers and (2) woodusing manufacturers such as firms producing lumber, pulp, pellets, panels and pallets. This article is the first of three quarterly industry updates we will publish with NHLA in advance of my presentation at NHLA’s Convention in Toronto later this year. The purpose of these articles is to provide an update on trends across the forest industry and timberland-investing sector. Please feel free to contact me with questions!

This quarter begins with notes on how technology influences the forest products industry. Then, we highlight themes with respect to forest industry supplies and structural changes in timber markets that inform expectations for future timber and log prices. Finally, we compare the dividend yields of timber REITs to the earnings generated by private timberland investments to consider how this makes forest owners think about the commitment they have to investing in their lands.

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EXECUTIVE PERSPECTIVES ON FOREST TECHNOLOGY

In December 2017, Forisk hosted “Wood Flows & Cash Flows” in Atlanta, with sessions on the ranking of markets for locating wood using mills, analysis of forest industry supply chains and logging capacity, and reviews of timber industry forecasts. Attendees highlighted the Forest Industry Executives Panel, which included: • Howe Wallace, Jr., CEO of PalletOne, the largest pallet manufacturer in the U.S.; • Lynn Wilson, Director of Natural Resources at Louisiana Pacific; and • Alan Robbins, Sales Manager with USNR, the world’s largest supplier of equipment and technology to wood-processing firms. Panelists addressed technological advances affecting their firms and industries, and how changes in technology affect the ways in which their firms think about the use of wood. Key themes emerged from the panel. First, technology increases customer expectations. The “big box” stores and buyers of hardwood and of softwood forest products expect more in terms communication, quality control and inventory management, and point to technology as the reason and the means. They simply want more from their suppliers. W W W. N H L A .C O M


For investors and forest owners, the value of a tree is determined by the returns on the capital committed to owning, growing and marketing the tree. Second, technology provides gains through precision and consistency. As one panelist noted, “machines don’t call in sick.” Technology investments pay off through automation, optimizing processes, reducing variance, and making better use of logs and lumber. Applications are targeted and returns are specific. Technological gains are not “generic.” Third, technology has a “people aspect.” The use of mechanization to improve safety, expenditures to enhance the work environment (e.g. improved lighting in mills), and efforts to train and communicate can be just as important as that new flux capacitor.

Cash/Income Yields from Timberland Investment Vehicles by Year

FOREST SUPPLIES AND FUTURE TIMBER PRICES

While log prices in the West surge and bounce, sawtimber prices in the South stagnated in 2017. This quarter, our team compared the supply-demand relationships with log prices in the South from before to after the recession. The analysis points to how, during periods of stable forest supplies, timber demand and prices tend to move “in tandem”; during periods of supply disruption, these relationships break down. Sawtimber inventories continue to shift. We see prices responding more readily in states with growing mill investments. Also, while export volumes represent a small portion of U.S. log and chip volumes, the locations of log exports correspond with higher relative log prices in markets such as Coastal Washington and Oregon and ports along the Eastern coastline in Georgia, Florida, and South Carolina. The logging force required to deliver these logs continues to adjust, as well. Year-over-year logging employment fell in every U.S. region for the first time since the recession ended. However, this data requires context. Heading into the recession, national logging employment had been dropping for years, as logging productivity outpaced the growth in wood demand. Productivity and efficiency gains help explain much of the story. Meanwhile, logging employment has grown locally in markets with strong demand. Timber markets remain uniquely local.

TIMBER REITS AND TIMBERLAND INVESTMENTS

For investors, the fundamental value of an asset derives from the cash flows generated by the asset. For timberland, cash distributions take different forms across investment types. While timberland owning REITs – such as Weyerhaeuser, Rayonier, PotlatchDeltic and Catchmark Timber – consistently pay quarterly dividends to shareholders, private timberland owners receive periodic income flows depending on the specific harvesting, marketing and real estate activities on their assets. How do these cash yields compare for timber REITs versus timberlands? W W W. N H L A .C O M

Data sources: Forisk Timber REIT Weekly; NCREIF The results above assume you bought one share of each available public timber REIT on January 1 of each year. The yield sums all dividends received that year divided by what you paid for the shares, assuming no transaction costs. This analysis reminds us that we realize value through a combination of cash flows (e.g. distributions) and appreciation. The analysis reminds us, as well, that timber REITs and timberlands are two fundamentally different investment vehicles. One comprises shared ownership in a business, while the other reflects direct ownership in a hard asset. And with this ownership comes obligations and options. For investors and forest owners, the value of a tree is determined by the returns on the capital committed to owning, growing and marketing the tree. The cash flows generating these returns do not flow through a vacuum. Rather, they are subject to influence by changes in technology, by the local market balances between forest supplies and wood demand, and by the investment vehicles through which the assets are managed. For firms and investors operating in the timber space, primary advantages and benefits accrue over time through disciplined execution of operable investment, forest management and wood procurement plans.

Brooks Mendell is president and CEO of Forisk Consulting (www.forisk. com), which publishes the Forisk Research Quarterly from which portions of this article are drawn. Dr. Mendell will speak at the 2018 NHLA National Convention in Toronto. A P R I L 2 0 1 8 H A R D W O O D M AT T E R S |

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Doing More to PROMOTE the Hardwood Industry as a Career Path Labor is a major topic of concern for most NHLA member companies; and the main area of concern . . . trying to recruit and retain qualified employees. In a recent article published online at industryweek.com, author Larry Fast explains why “We must do more to promote manufacturing as a rewarding career path.” And while the manufacturing industry may not be identical to the hardwood industry, the problems and opportunities affecting both certainly overlap and the shared strategies could be beneficial. The following article is reprinted with permission. We Must Do More to Promote Manufacturing as a Rewarding Career Path. Here’s How. Copyrighted 2018 .Informa. 261224.0318SH

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nstead of wringing our hands about how hard it is to fill manufacturing jobs, let’s attack the problem with the same vigor that we would major customer or cost issues in the shop.

Thanks to Steve Minter for his recent insightful and upbeat article (1Will Millennials Change Manufacturing?) on the potential impact of millennials on manufacturing. These are wonderful testimonials to the challenging and rewarding careers available now! That’s fantastic news, especially for engineering and other technical degreed students. The bad news is, according to various estimates, there are still about 6 million manufacturing jobs going unfilled. (See 2 Millions of Manufacturing Jobs Could Go Unfilled and 3 There Have Never Been This Many Job Openings in America) In my opinion, there are at least two primary reasons for these unfilled positions: 1) applicants don’t have the skills necessary to do the jobs; and 2) potential applicants have a lack of interest in manufacturing largely due to old and outdated paradigms such as factories are unsafe, dirty

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work places; shift work; and a “manufacturing isn’t cool” image. Sure, there are still factories out there stuck in the Stone Age, but they are a minority in 2018. It’s time for manufacturing to assert itself into the headlines as a viable, even a preferred occupation for young people, some of whom will love what they read and hear. Others will be surprised and may now consider the prospect of a manufacturing career based simply on the fact their misconceptions have been challenged. Learning to see manufacturing in a new light creates interest regarding the potential opportunities that manufacturing companies offer. The before mentioned links identify the opportunity and need for more people to choose manufacturing as their career paths. For those of us who have been fortunate enough to enjoy long careers in the field, we may take the positives for granted. I’d urge us all to think a bit more outside the box and contemplate how we can help motivate women and men to develop an interest in manufacturing much earlier in our school systems. We need passionate new blood continuously entering our field, individuals who will carry W W W. N H L A .C O M


the CI torch with new energy, enthusiasm and commitment. Let’s agree to start here: America’s manufacturing companies do too little to promote manufacturing as an exciting and rewarding career for both salaried and hourly positions. This is absolutely necessary if we expect to change this recruiting issue from a problem into an opportunity. Most of this needs to happen at the local level. Let’s, en masse, look at the issue both short and long term, and act accordingly now.

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In the short term we have little choice but to compete with the almighty dollar to recruit basic unskilled or semi-skilled labor positions, so promote the idea that manufacturing pays better than many other positions. For example, a person working in a fast food restaurant may make $10 to $15 per hour working on what amounts to a first or second shift job in a plant. Working in manufacturing, that same person likely would start on 2nd or 3rd shift, which often pays $15 to $25 per hour for unskilled or semi-skilled labor. While these manufacturing positions may not be the ultimate destination for these workers, they are a way for them to get their foot in the door where numerous other opportunities will be available to them as they increase their skills. If they already have, or are willing to learn, the mindset necessary for helping the business improve, they will do very well.

2)

Market to these young people that they can be part of a proud workforce building great products for customers—and then help them succeed. For example, in the interviewing process take the time to get real insight into an applicant’s thinking. Ask “Are you willing

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to take additional training to upgrade skills? Do you take initiative to identify and solve problems? Are you a team player? As an hourly employee in a support role, do you have interest and ambition to become a machine operator—a very responsible and important hourly job that may pay in a range of $25 to $50 per hour? Do you aspire to someday be a supervisor or a quality technician?” Manufacturing jobs are more available now than they’ve been in a long time. Our mission as leaders and recruiters is to attract these folks and encourage them to “go for it” then support them when they sign on.

3)

Aggressively recruit necessary technical skills with local tech schools and junior colleges. Many millennials who aren’t interested in a four-year degree have grown up with modern technology, are comfortable working with it and likely can be trained to do jobs such as programming of CNC machines, becoming an expert electronic technician, quality technician, tool and die maker, etc.

4)

Visit local schools and tell the story of manufacturing as a career path for students just like them. Promote expanded use of Junior Achievement programs that are offered in elementary, middle and high schools. Attend every jobs fair in your area and tell your story. It’s all about marketing isn’t it? What is your value proposition to attract new talent into manufacturing?

5)

Plan resources for an in-house education and training resource(s) where high numbers of people will require the same training (Lean 101, green belt certification, being a good teammate, etc.) for years

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to come. This is a long-term process to sustain training needs, but the plan needs to be done now with implementation to commence in the short-term.

6) The local plant and HR managers, along with the school board,

chamber of commerce, local and regional government should join forces to create a strategy that supports programs that promote manufacturing careers. Plant managers, take the lead! Educate these important community leaders.

7)

At a more macro level, it’s high time that senior manufacturing leaders increase their presence to market their companies as great places to work. (Of course, make sure this is a fact, not smoke.) For example, they should be proudly taking credit for: the sea change in safety results over the last two decades; working to change factory cultures to be much more inclusive and collaborative with all employees (hourly folks no longer have to check their brains at the time clock and pick them up when they leave); marked improvements in customer service; increasing use of state-of-the-art technology; jobs that pay great wages and benefits, etc. The only company that immediately comes to mind for promoting manufacturing on major media is GE. What I’ve seen is targeted specifically to engineering graduates, and it’s fair to say that companies do a far better job in recruiting for salaried positions. I went

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through several Google screens trying to find other companies promoting manufacturing in a broader way and gave up.

8)

What about social media? Nearly everyone these days is on some kind of social media and checks it regularly. Has anyone ever seen on any form of social media (Facebook, Snapchat, LinkedIn, Twitter) a “recruiting/selling” ad that advocates working in manufacturing? CEOs, senior marketing and HR leaders of manufacturing companies need a plan and a broad-based strategy to be highly visible on select media so the world knows: “We have great employment opportunities at ACME Manufacturing, Inc.”

9) Add your own thoughts here. Most companies do a great job of marketing their companies to customers and shareholders but do very little, if any, marketing to prospective employees looking for opportunities. There should be a compelling story for both degreed and non-degreed people. Sell the positive changes like the present day working conditions, culture and opportunity for those seeking a fulfilling career and providing a better life for their families. I see this as a huge opportunity but, as a group, we’ve been nearly invisible on this topic and that needs to change. Who in your company has the ball on this?

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LONGER-TERM

10)

Establish apprenticeship programs, college tuition assistance, campus recruiting. Form partnerships and develop the relationships to the point where you are “placing orders” for future graduates year after year.

11)

Manufacturing organizations, corporations, small businesses: Develop ongoing updates of progress in the factories and speak with a loud voice about clean, safe, working conditions, better wages and benefits. If we don’t sell this, then who will? Making product that has great value is gratifying work. Growth opportunities for those who have the ambition, interest and wherewithal to work with evolving technologies provides upside for the best people. Make the career-long commitment and bake this in as a continuous process in your company.

12)

Here’s a start on a list of organizations that I’d like to see become much more visible and vocal on a national level, such as manufacturing recruiting commercials on the nightly news. Apply the same thinking to your local radio/TV stations, advertising in local media, etc. Remember, we need to be selling mindset, perception changes and well-paying opportunities. • National Association of Manufacturers: http://www.nam.org • Junior Achievement: https://www.juniorachievement.org/web/ ja-usa/ja-programs • Association of Manufacturing Excellence: https://www.ame.org • Manufacturing.gov https://www.manufacturing.gov/programs/

13)

We need to help public school systems recognize the importance of making their student body aware of manufacturing as a career. Invite local manufacturing business leaders into the classrooms starting in grade 4 or so. (See Junior Achievement above.) Field trips to parks, botanical gardens, and zoos are important and a normal part of education at most schools.

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Why not make one of those annual field trips to a factory? Give students exposure to jobs for which they might aspire. For example, arrange for students to take a tour of a successful factory in the school district. In addition to the jobs on the shop floor, show them the people working in various office capacities such as human resources, accounting, purchasing, logistics and distribution, quality, maintenance, facility engineering. A few lightbulbs likely will turn on, or at least the experience may create a more open mind to the possibility of working in manufacturing.

14) Add your own thoughts here. Bottom line: No need to wring our hands and be frustrated about why it’s so hard to fill manufacturing jobs. Instead, let’s attack this problem with the same vigor that we would major customer or cost issues in the shop. It’s a paradigm smash to be sure, but let’s apply what we’ve learned.

We all smashed long-standing paradigms and started our continuous journeys on the shop floor. Each company needs a strategy and an execution plan. Nothing new here. Just a new topic for applying good process. Larry Fast is founder and president of Pathways to Manufacturing Excellence and a veteran of 35 years in the wire and cable industry. He is the author of The 12 Principles of Manufacturing Excellence, A Lean Leader’s Guide to Achieving and Sustaining Excellence, 2nd. Edition. http://www.industryweek.com/talent/will-millennials-changemanufacturing https://www.bloomberg.com/news/articles/2017-03-16/millions-of-manufacturing-jobs-could-go-unfilled http://money.cnn.com/2017/08/08/news/economy/job-openingsrecord-high/index.html

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NHLA

is dedicated to providing our members with the services and tools they need to be competitive in the complex global marketplace.

WHAT WE DO FOR YOU MAKE CONNECTIONS WITH BUSINESS LEADERS TO INCREASE SALES NHLA conventions and educational programs provide vital networking links. SAVE THE DATE: for the 2018 NHLA Annual Convention & Exhibit Showcase. Oct. 2-4, 2018 • Toronto, Canada

$

SAVE MONEY WITH ACCESS TO INDUSTRY EXPERTS NHLA National Inspectors have a combined 200+ years of expertise, which means they have been through most any situation you are facing and can help. They stand ready to make your business profitable by ensuring your hardwood transactions are made on a level playing field.

ADVOCATE ON YOUR BEHALF Through its support of the Hardwood Federation, NHLA serves as your advocate in Washington D.C.

NHLA CERTIFICATION PROGRAMS Distinguish your company and enhance your reputation and profits by participating in one of our certification programs.

MAINTAIN & FOSTER THE RULES Since 1898, the NHLA hardwood lumber grading Rules have protected our members’ interests by providing a common language for trade on both a domestic and global platform.

TRAIN YOUR EMPLOYEES, BOOST YOUR REVENUE From the Inspector Training School to technical short courses to on-site company training; NHLA has the expertise to take your company to the next level!

Join Today To Help Shape Your Company’s Future! Contact John Hester, Director of Membership and Business Development at j.hester@nhla.com or 901-399-7558.

www.NHLA.com


RULES CORNER

GAINING A CLEAR UNDERSTANDING OF THE NHLA GRADING RULES by DANA SPESSERT, NHLA Chief Inspector

U

nderstanding and applying the NHLA Rules takes experience and exposure to variances. This month, I would like to discuss two questions that were recently asked of me in hopes that this knowledge will help you get a step closer to understanding the application of the NHLA hardwood lumber grading system. The first question I would like to discuss pertains to manufacturing defects. As you may know, there was a ruling made in the past about manufacturing defects not being considered wane. As the Chief Inspector, I do see them as wane, as the definition for wane does not distinguish between natural lack of wood and man-made lack of wood. As the NHLA Rules Book clearly states on page 4, paragraph 4: “Lumber shall be inspected and measured as the inspector finds it, of full length, width and thickness. No allowance shall be made for the purpose of raising the grade, except that in rough stock, wane, and other defects which can be removed by surfacing to standard rough thickness shall not be considered. Nothing herein shall be construed as prohibiting the shipper from improving the grade or appearance of the lumber at time of or prior to shipment.”

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In my opinion, hardwood lumber inspectors have enough to deal with on a daily basis, they do not need the added stress of determining the reason a defect exists. The second question I would like to discuss relates to the Sap Hard Maple. The question posed, “Does there need to be a sap face on the 1 Common side of a FAS 1 Face board.” The answer can be explained in the Rule itself on page 23, under the heading “Sap Hard Maple (When Specified)”. The Rule clearly states that “Each required cutting shall have one clear sapwood face.” The confusion comes on FAS1Face and Selects due to the nature of these two grades. Each face is graded independently and some would believe this rule applies to the limitations such as the amount of sapwood required for this grade. In reality, if only one face of the cutting is required to be sapwood, then the FAS side would be the ruling side for this color sort. I hope this article was informative and if anyone has questions, please send them to me at d.spessert@nhla.com.

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ALUMNI NOTES

WHERE ARE THEY NOW? PETER VAN AMELSFOORT, 85th CLASS HOW DID THE CLASS FURTHER YOUR CAREER? The class allowed me the opportunity to have steady work in the sawmill business and led to the opportunity to start in a supervisory position at a sawmill, then kiln operations and finally buying and selling green and kiln dried lumber. WHAT IS YOUR CURRENT OCCUPATION? I am currently the Chief Lumber Pilit at Quality Hardwoods; managing yard, kilns, purchasing and sales. I have a great group of experienced people who make the job a pleasure. WHAT IS YOUR FAVORITE ASPECT OF YOUR JOB? My favourite aspect of my job is the constant day to day challenges with variable products, customer needs, evolving markets, and costing and pricing. Are you an ITS Alumni? We’d love to hear from you. Send us your story or give us an update at alumninews@nhla.com.

GET ON BOARD

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

APRIL

APRIL

APRIL

APRIL

9-20

18-20

23-26

30-May 2

Inspector Training School Progressive Program BLOCK 1

Intro to Hardwood Lumber Grading

Intro to Hardwood Lumber Grading

Intro to Hardwood Lumber Grading

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

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

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

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

Venue: Allard Lumber Company / Battleboro, VT

Venue: Ohio State Univeristy South Centers / Piketon, OH

Venue: NHLA Headquarters Memphis, TN

Instructor: Jack English, NHLA National Inspector

Instructor: Tom Byers, NHLA National Inspector

Instructor: Rich Hascher, NHLA ITS Instructor

JUNE

JUNE

22-24

4-7

19-21

Walnut Lumber Grading

Intro to Hardwood Lumber Grading

Intro to Hardwood Lumber Grading

Instructor: Rich Hascher, NHLA ITS Instructor

MAY

16-Aug 3 Inspector Training School 186th Class

! MAY

New

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

This seminar is designed to teach Walnut lumber grading. This is the only species that will be discussed.

Venue: Northwestern Michigan College Traverse City, Michigan

Venue: Ohio State University South Centers / Piketon, OH

Instructor: Rich Hascher, NHLA ITS Instructor

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Instructor: Tom Byers, NHLA National Inspector

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

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

Venue: Yoder Lumber Co., Inc. Millersburg, OH

Venue: North Carolina State University / Raleigh, NC

Instructor: Barry Kibbey, NHLA National Inspector

Instructor: Mark Bear, NHLA National Inspector

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

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

JUNE

JULY

26-28

17-19

Intro to Hardwood Lumber Grading

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.

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

Venue: Deer Park Lumber, Inc. Tunkhannock, PA

Venue: Ron Jones Hardwood Sales, Inc. / Union City, PA

Instructor: Barry Kibbey, NHLA National Inspector

Instructor: Tom Byers, NHLA National Inspector

AUGUST

AUGUST

SEPTEMBER

SEPTEMBER

6-17

29-Nov 17

11-13

17-21

Inspector Training School 187th Class

Intro to Hardwood Lumber Grading

Intro to Hardwood Lumber Grading

Inspector Training School Progressive Program BLOCK 1

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

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

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

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

Venue: Kamps Hardwoods, Inc. Caledonia, MI

Venue: Wood-Mizer, LLC Indianapolis, IN

Instructor: Jack English, NHLA National Inspector

Instructor: Barry Kibbey, NHLA National Inspector

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

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JOB BOARD LUMBER INSPECTOR

C-wood Lumber Company, Inc. is currently seeking a Lumber Inspector. Must be an experienced Lumber Inspector both green and kiln dried. Please send an email to Brenda Sandusky at bsandusky@cwoodlumber.com or mail your resume to: C-wood Lumber Company P.O. Box 216 Collinwood, TN 38450. C-wood Lumber Company, Inc. 624 West Indian Creek Road | Collinwood, TN 38450 Phone: 931-724-9174

LUMBER GRADER

Connor Sports Flooring is currently seeking a Lumber Grader. Responsibilities include coordinating inspection and processing of purchased lumber, validate board foot and grade of individual boards and bundles; establish conformance to PO specifications utilizing the optical scanner and operator interface console; create and download files used to track utilization of the lumber. Must hold or be willing to obtain NHLA certification. Hardwood processing/ sawmill exp preferred. Position requires overnight travel to attend paid training program in Memphis, TN. Effective written and verbal communication and math skills are required. Connor offers an excellent benefit package including Medical, Dental, Vision, 401K matching, paid vacation and holidays. We provide a competitive salary commensurate with experience. Salary is $18.00 per hour Non-exempt. Please send resume/letter of interest to: Careers@GerflorUSA.com. Connor Sports Flooring 251 Industrial Park Road | Amasa, MI 49903 Phone: 906-822-7311

LUMBER INSPECTOR

Bennett Hardwoods is seeking a Lumber Inspector. Responsibilities include grading green and/or kiln dried lumber. Experience preferred, but not required. Must hold NHLA Certification Benefit package including Health, Dental, Vision, Life Insurance, Simple IRA, Paid holidays and vacations.

GENERAL MANAGER

Superior Hardwoods is currently seeking a General Manager for their sawmill and kiln operations located in Montezuma, Indiana. This modern sawmill includes two head-saws and two resaws, operating over two shifts producing 25 million board feet annually. The drying yard handles 25 million board annually feet over 2 kiln dried lines. General Manager Key Purposes of this Position: • Direct and manage sawmill and kiln operations in the areas of safety, production, maintenance, profitability, and quality. • Strive to continuously improve all areas of mill performance General Manager Responsibilities: • Establish and monitor overall plant performance for safety, production, profitability, and quality standards for a workforce of 125 employees. • Oversee mill activities to ensure the total manufacturing objectives are accomplished in a timely and cost effective manner. • Ensure the safe operation of all mills. Be aware of OSHA regulations and maintain all mills in accordance withal local, state, and federal rules and regulations. • Manage capital asset maintenance for division. • Control and minimize labor overtime and repair expenses at each location. • Ensure that the plant facilities and equipment are maintained; replace, adjust to plant facilities and equipment when necessary. • Provide leadership and training to accomplish the company goals and objectives. • Provide direction, development and leadership to Managers. • Encourage and foster a sense of high, positive morale among the workforce General Manager Desired Skills and Experience: • 4-year degree, in a related field is a plus, but not required • 10+ years of related management work experience desired • Ability to manage multiple sawmill and kiln operations • Proven ability to respectfully manage a diverse workforce • Proficient in MS Excel, Word, and Outlook To apply please contact Teddy Royal at troyal@baillie.com. Superior Hardwoods 6429 W 100 N | Montezuma, IN 47862

Email resume to: Bennetthardwoods@aol.com Bennett Hardwoods 810 McLeod St | Prairie du Chien, WI 53821 Phone: 715-845-9663 | Fax: 715-842-1252

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

LUMBER INSPECTOR

Hermitage Hardwood is looking for an experienced lumber inspector for our yard in Cookeville, TN. Responsibilities include grading of both green and kiln dried lumber consistently, while supervising a team. Seeking an NHLA trained inspector with at least 2+ years experience. Medical insurance and 401K options. Great location in the middle Tennessee area. Competitive salary based on experience. Email resume to: wesley@hermitagehardwood.com or call 931-526-6832. Hermitage Hardwood Lumber Sales 105 Ridgedale Drive | Cookeville, TN 38501 Phone: 931-526-6832

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THE GLOBAL GATHERING OF THE HARDWOOD COMMUNITY

TORONTO 2018

NHLA ANNUAL CONVENTION & EXHIBIT SHOWCASE

EARLY BIRD REGISTRATION

NOW OPEN!

{Don’t forget Passports are required} SHER ATON CENTRE | W W W.NHL ACONVENTION.COM

Profile for National Hardwood Lumber Association

Hardwood Matters April 2018