December 2022 Hardwood Matters

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HARDWOOD MATTERS THE VOICE OF THE HARDWOOD INDUSTRY December 2022 THE OFFICIAL PUBLICATION OF THE NATIONAL HARDWOOD LUMBER ASSOCIATION STRONG ROOTS. GLOBAL REACH. | WWW.NHLA.COM The Most Rockin' Convention Yet was in Cleveland!
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Shout out to NHLA National Inspector, Simon Laroque and the students of our recent 4-Day Introduction to Hardwood Lumber Grading in Whitney, Ontario! Thank you to McRae Lumber Company for being such gracious hosts.

WWW.NHLA.COM DECEMBER 2022 HARDWOOD MATTERS | 1 CONTENTS December 2022 • Issue 240 feature 14 The Most Rockin' Convention Yet was in Cleveland! 2022 NHLA Annual Convention & Exhibit Showcase departments 6 One Common Ground Hardwood Matters by Dallin Brooks Executive Director 8 Accolades 10 Allied Angle Feeling Good About February by Ray Moistner Executive Director of Indiana Hardwood Lumbermen's Association 12 Legislative Log Election 2022-New Congress Starting to Take Shape by Dana Cole Executive Director Hardwood Federation 22 Rules Corner The New NHLA Rules Book is HERE! Changes You Need to Know by Dana Spessert Chief Inspector WHAT'S INSIDE
ONLINE Follow us 12 24 14 TOP POST OF THE MONTH at facebook.com/NHLAOfficial reader services 4 Chairman’s Message 24 Educational Calendar 26 NHLA Job Board 28 Market Trends

HARDWOOD MATTERS

THE VOICE OF THE HARDWOOD INDUSTRY

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

THE MISSION OF NHLA

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

EXECUTIVE COMMITTEE

Jon Syre Cascade Hardwood, LLC

Chairman

Bucky Pescaglia

Missouri-Pacific Lumber Co., Inc.

Vice Chairman

Jeff Wirkkala

Hardwood Industries, Inc.

Past Chairman 2020-2022

NHLA STAFF

Dallin Brooks

Executive Director

Amanda Boutwell

Marketing and Communications Manager

Julia Ganey

Member Relations Manager

John Hester

Director of Membership and Business Development

Renee Hornsby

Director of Marketing & Communications

Jens Lodholm

Data Administration Specialist

Roman Matyushchenko

ITS Instructor and Associate Dean of Education

Carol McElya

Education Services Project Manager

Amber Signaigo

Controller

Vicky Quiñones Simms

Membership Development Manager

For advertising contact:

John Hester, Director of Membership and Business Development at j.hester@nhla.com or 901-399-7558 or Vicky Simms, Membership Development Manager at v.simms@nhla.com or 901-399-7557

Melissa Ellis Smith

Graphic Designer

Dana Spessert

Chief Inspector

MISSION LEADERS

Sam Glidden

GMC Hardwoods, Inc.

Unique Services

Ray White

Harold White Lumber Inc.

Rules

Joe Pryor Oaks Unlimited Industry Advocacy & Promotion

Rich Solano

Pike Lumber Company, Inc.

Structure

Stephanie VanDystadt

DV Hardwoods, Inc.

Membership & Networking

COMMITTEE CHAIRS

Burt Craig Matson Lumber Company

Membership

Rob Cabral

Upper Canada Forest Products, Ltd.

Promotion & Advocacy

Dennis Mann

Baillie Lumber Co. Convention

Tom Oiler

Cole Hardwood, Inc.

Inspection Services

Brant Forcey Forcey Lumber ITS/Continuing Education

George Swaner Swaner Hardwood

Communications & Marketing

Joe Snyder

Fitzpatrick & Weller, Inc.

Rules

2 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM
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WORKING TOGETHER

The holiday season, both wonderful and stressful all at the same time. There are so many requirements for our time and attention. I am grateful that Thanksgiving comes first. It helps me calibrate the entire season before I get overwhelmed by all the requirements.

Thanksgiving is a time to pause and think of what we are all thankful for.

Having just returned from the annual fall board meeting in Memphis, I am thankful for the NHLA staff and leadership and thankful for the board members.

The fall board meeting had an energetic and proactive feel to it. Board members were engaged in their committees, staff was energized and Dallin, our new executive director was providing new and exciting leadership to the agenda.

The convention committee is finalizing plans for the Louisville convention, which will be amazing, and they are also discussing future locations and events. The inspector training school and education committee has developed new ideas to bring additional students to our school and webinar topics for membership to get involved in. The promotion committee is investigating a new computer interface system to help easily bring promotional materials directly to all our employees so we can share with them how amazing our industry is! The inspection services committee is enthused to roll out more opportunities for yield studies and quality control inspections. Get signed up with Dana before all the slots are full! Lastly, the communications and marketing committee continues to provide innovative and creative ways to reach new members, new students, and new convention attendees!

During the full board meeting, there was discussion and updates on the Real American Hardwood Coalition and the Hardwood Federation

and PAC. Dana Cole provided the update on those two topics, her tireless enthusiasm for our industry is very impressive.

The full board meeting also included an update on the NHLA strategic planning process. This impressive process is being led by Dallin and is hitting its stride digging into some of the tough questions regarding NHLA focus and foundation.

I have taken the time to explain what each committee is working on, and what was discussed at the full board meeting not to just take up space in my letter but to highlight how many people are involved and are taking their time to think and provide input and leadership regarding the future of our industry. I have been to several board meetings, and I always come away thinking how impressed I am by the willingness of our fellow industry partners to be an active part

4 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM
CHAIRMAN’S MESSAGE
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HARDWOOD MATTERS

Ihope that you had a happy Thanksgiving. As a kid, my parents made us go around the table saying what we were thankful for each year. I hated it, not because I was ungrateful but because it seemed forced and contrite, and we were all grateful for the same things. For that reason, I never make my kids do it. We talk about what we are thankful for, but it is a conversation, not a listing of things. I let them decide if they want to add to the conversation— unfortunately, most of the time, they do not.

As I age, I see the error in letting them sit passively in the gratitude conversation instead of strongly encouraging them to make a list. They just silently agree with the common things but never express them. When you express it, you benefit, the others around you benefit, and God appreciates it. The same is true for hardwood promotion.

We can let the Real American Hardwood Coalition do all the promotion and the sharing about how critical wood is to our society, its cultures, history, and progression. We can let other members pay for and build on the things we have in common, but if we miss an opportunity to tell our unique story, to show our gratitude for what wood is, the foundation for life on earth. I can’t say it enough; the world owes wood a debt of gratitude. It owes wood manufacturers appreciation for the quality of life that they enjoy.

So, let’s not just sit around and listen to the conversation of others. Let’s list the things we do and appreciate about hardwoods. We need to talk about wood constantly at home, school, work, church, shopping, or elsewhere. Every person on the planet is impacted by someone using hardwoods every day, either in transportation and shipping or in appearance and functionality.

I can tell you this, while the National Hardwood Lumber Association gives 5% of membership dues to the Real American Hardwood Coalition, it is not enough. Money alone will not solve our problems if we don’t tell our own stories. We need to use social media and daily conversations to tell people how much hardwood matters to them.

We all know that people don’t recognize all the impacts wood has on them. So, what are we going to do about it? I encourage you to donate to the Real American Hardwood Coalition and share with someone the benefit hardwood has on their life. Here is an easy way to do that. Take a picture of the wood around you - at home, school, work, while running errands or playing, and at church. Preferably photos with people in them. Then share them on social media, text them to friends or send the pictures to the NHLA account info@nhla.com so we can share them. Tell your story to the wood industry, your kids, your friends, your fellowman, and the rest of the world. Have a conversation about how hardwoods make things more beautiful, transport things, and build our society, and give them your common list of reasons to be grateful for hardwoods. Common ground builds common gratitude.

P.S. If you like, use the hashtag #Hardwoodmatters because it does, and so do you. Anything you do to tell the hardwood story is appreciated. Thanks for letting me get up on my soapbox.

6 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM ONE COMMON GROUND
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ACCOLADES

Welcome New Members

(August-October 2022)

ACTIVE U1 MEMBERS

B & D Sawmill LLC, Glenwood, IA

Buchan Sawmill, Inc., New Haven, IN

PJ Lumber Company LLC, Prichard, AL

Walnut Acres Sawmill, Rockville, IN

Woodgrain Millwork Inc., Independence, VA

ACTIVE U2 MEMBERS

York Legacy Mill, Burkesville, KY

ASSOCIATE MEMBERS

Koppers, Inc., Pittsburgh, PA

Somerset Hardwood Flooring-Eagle Plant, Somerset, KY

SUSTAINING MEMBERS

Aiken Controls, Lenoir, NC

Biobiowood Pte Ltd, Singapore

Greenbridge, Mentor, OH

The Lilly Company, Memphis, TN

Manitoulin Global Forwarding, Mississauga, ON

Real Performance Machinery, Independence, VA

Milestone Members

Congratulations to these companies who are celebrating significant milestone anniversaries with NHLA.

5 YEARS

BILLSBY LUMBER COMPANY

Active U1 | October 2017

CARBOTECH

Sustaining | October 2017

COBBLE CREEK LUMBER LLC

Active U1 | October 2017

ELK VALLEY HARDWOODS

Active U2 | December 2017

HUNT FOREST PRODUCTS LLC

Active U2 | October 2017

JONES LUMBER, LLC

Active U1 | November 2017

LUCIDYNE TECHNLOGIES

Sustaining | October 2017

PA FOREST PRODUCTS ASSOCIATION Research | November 2017

10 YEARS

GREENTREE HARDWOODS LLC

Active U1 | October 2012

20 YEARS

DRY RUN LUMBER CO.

Active U1 | December 2002

GAGNON LUMBER INC.

Active U1 | October 2002

GRANITE VALLEY FOREST PRODUCTS - WELTER

Active U4 | November 2002

25 YEARS

AJD FOREST PRODUCTS

Active U1 | November 1997

SCIERIE ARBOTEK INC. Active U1 | November 1997

50 YEARS

ROBERT S. COLEMAN

LUMBER CO., INC.

Active U2 | December 1972

8 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM

NHLA EDUCATIONAL WEBINARS

Visit www.NHLA.com to find our online learning portal. In this area, you will find and access live online courses and webinar replays.

Webinar replays are FREE to NHLA Members. Non-members can view for a fee.

FEELING GOOD ABOUT FEBRUARY

We are officially in the holiday season, but my thoughts have already turned to February. Not many people in the Midwest celebrate February, but for me, it answers some questions that have long been on my mind.

The obvious question is, “Why do over a thousand hardwood industry professionals come to Indianapolis in the grey of winter?”

And the second: “Why would a company (let’s say Coca-Cola, for example) pay five million dollars for 30 seconds of a TV ad during the Super Bowl?”

After years of thought, I found the answer as I worked with my talented colleagues across the country to develop the Real American Hardwood campaign. And the answer is simple, but before I reveal it, and before you plan to watch the Bills-49ers Super Bowl after your return home from the IHLA convention, let’s talk about those Super Bowl ads.

Isn’t Coke well-known enough NOT to need to advertise during the Super Bowl? Wouldn’t the same be true for Budweiser, Chevrolet, and McDonald’s?

After countless meetings with Canvas United and the RAH team, here’s what I have decided: It’s not about the product; it’s about feeling good. Does McDonald’s talk about how tasty their food is? Never?

Does Coke tout healthy choices? Of course not. But what their Super Bowl ads do is create conversation, provide memorable experiences (Mean Joe Green), and trigger emotions.

Most importantly, these ads embed themselves deep in our subconscious, so while we stand in the grocery store in July, weighing the decision about Coke versus a cheaper, or generic option, we end up reaching for the Coke because it makes us feel good. We chose Coke in July because of the trigger Coke planted during their Super Bowl ads over several years.

When we bought our daughter’s first car, there were plenty of comparable choices, but at the critical moment, my mind returned to a TV ad where one company emphasized their car’s safety record, and my decision was made.

So, if Coke didn’t continue to advertise, I assume sales would go down proportionately, or even worse, it would raise the odds for a less expensive competitor. Finally, it also creates a good feeling after the purchase, so when you have those guests over for the next Super Bowl, you feel good – no, make that GREAT – about the fact you have beautiful hardwood floors in your home and you can offer them Coke instead of an off-brand cola.

When you receive that registration form to come to the IHLA convention this month, you don’t think about whether or not you should attend. You think, “How fast do I need to fill this out and return it?” because from experience, you know the hotels will sell out and the best restaurants will fill up. You don’t want to miss out on the positive vibes and business advantages you always get from Indianapolis each February.

The best advertising minds have designed your Real American Hardwood campaign, which is supposed to invoke emotions and educate the public about the benefits of hardwoods. It is there to plant that seed today so that when consumers make decisions later, their minds will go back to why they should choose real hardwoods over the imposters. It’s there; we need the industry to fund it at a rate that is collectively very affordable. It unites our industry and benefits everyone from the landowner to the sellers of finished goods.

Invest your marketing dollars in good feelings. If it works for Coke and Bud, it’ll work for wood!

10 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM ALLIED ANGLE
Ray Moistner is the executive director of Indiana Hardwood Lumbermen's Association. He can be reached at raym@ihla.org.
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ELECTION 2022

New Congress Starting to Take Shape

Editor’s Note: The 2022 election results were not final as of press time

The following information was as of November 14, 2022.

While the dust has not quite settled yet on the 2022 midterm election, it’s safe to say that an early top-line narrative doesn’t include a major “red wave” that many experts predicted for the midterm election. That said, there were some important takeaways from the November 8th elections. For one, voter interest and turnout were high, signaling that Republican and Democrat voters believed their votes mattered. And across the board, candidates who lost their races conceded gracefully, defying some media predictions. A positive outcome.

As bigger picture takeaways unfold, outcomes in many specific races remain undetermined days after the election. At press time, no one can say for certain what the final outcome will be in the U.S. House of Representatives. Either party needs to reach 218 to gain the majority. What we can say is that the margin will be slim, whichever party takes control.

Control of the Senate was decided after several days of careful ballot counting in Arizona and Nevada. Democrats will control the gavel and the agenda with at least 50 members; Republicans will hold at least 49 seats. Georgia declared a run-off to be held in early December to determine whether incumbent Democrat Sen. Raphael

Warnock can stave off a challenge from Republican Herschel Walker for the final Senate seat. Democrats picked up a high-profile win in Pennsylvania, with John Fetterman defeating GOP candidate and talk-show host Mehmet Oz. Republicans, on the other hand, kept a hotly contested Senate seat in Ohio when J.D. Vance defeated popular Democrat Rep. Tim Ryan.

So what does all of this mean? The biggest impact by far will be in the House, where all of the committee chairmanships potentially could change at the beginning of the 118th Congress in 2023. Following is a snapshot of key committees for the Hardwood Federation and prospective new leaders. The good news in the House is that hardwood champions will be in key leadership roles regardless of the final vote tally.

• Longtime ally Rep. Glenn “GT” Thompson (R-PA-15) will serve as chair or ranking member of the Agriculture Committee. Rep. Abigail Spanberger (D-VA-7) is also a good friend and has chaired the Conservation and Forestry Subcommittee.

• Rep. Vern Buchanan (R-FL-16) will play a leadership role on the Ways and Means Committee. Influential members Rep. Suzan

12 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM LEGISLATIVE LOG

DelBene (D-WA-1) and Rep. Earl Blumenauer (D-OR-3) also are known well to the Hardwood Federation.

• Rep. Bruce Westerman (R-AR-4) will have the one or two spot on the Natural Resources Committee. Rep. Jim Costa (D-CA-16) also sits on Natural Resources, and he and the federation have developed a good relationship over the years.

In the Senate, key committee leadership positions played out in a win-win scenario for the hardwood industry. Industry champions include longtime allies such as the following:

• Likely, Agriculture Committee Chair Sen. Debbie Stabenow (DMI) and Ranking Member Sen. John Boozman (R-AR) bode well for moving priorities in the farm bill in 2023.

• Party leaders on the Natural Resources Committee offer another favorable scenario, with Sen. Joe Manchin (D-WV) as Chair and Sen. John Barrasso (R-WV) poised to be the Committee’s Ranking Member.

Members of Congress will return to Washington in November and December for what promises to be an active “lame duck” session of Congress. Key items include consideration of an end-of-year tax package, which may include an important deduction for heavy-

duty equipment, the National Defense Authorization Act (NDAA), which promotes mass timber programs, and spending legislation to fund the federal government beyond December 16, the expiration date of the current “Continuing Resolution.”

THE HARDWOOD FEDERATION PAC –HOW DID OUR CANDIDATES DO?

The vast majority of those supported by HFPAC were successful in their bids for office this year as of November 10. Of the 11 HFPACsupported senate candidates who were up in 2022, 10 have won or are expected to win their election bid, with only Sen. Lisa Murkowski’s (R-AK) race remaining undecided. On the House side, so far, 49 out of 59 PAC picks will be returning to Congress in 2023. Five candidates either lost their primaries, retired, or in the case of longtime friend Rep. Jackie Walorski (R-IN-2), sadly passed away earlier this year. Five others remain on the fence and, therefore, open the possibility of adding to the list of HFPAC winners as the dust settles on the midterm elections.

The Hardwood Federation will be watching the election results closely as they trickle in and reporting the results through our weekly Cheat Sheet and Action Alerts. If you are not on our email list already and would like to be, you can sign up at hardwoodfederation.com.

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In the Senate, key committee leadership positions played out in a win-win scenario for the hardwood industry.

The Most Rockin' Convention Yet was in Cleveland!

The National Hardwood Lumber Association held its 125th Annual Convention & Exhibit Showcase September 21-23 in Cleveland, Ohio. Thank you to the premiere sponsor, Rossi Group. The NHLA Annual Convention is the best place for those in the hardwood industry - and those looking for a future in the hardwood industry - to come together to form new partnerships, strengthen existing business relationships, and discover the future of the industry.

The 2022 NHLA Annual Convention kicked off on Wednesday, September 21, with a welcome reception sponsored by Cascade Hardwood LLC, bringing together 1,000 hardwood industry professionals. The gathering was the perfect time to network with people in the industry and catch up with long-time partners. To give back to the hardwood

community, Cascade Hardwood donated 3 guitars to be auctioned off to support three 501c3 organizations. One guitar raised $1,600 for the Hardwood Federation, another raised $1,400 for the North American Forest Foundation (NAFF), and the third raised $1,000 for the Inspector Training School Educational Foundation. (ITSEF).

Day two of the convention began with the Opening Session, sponsored by Classic American Hardwoods, Granite Valley Forest Products, Hardwood Industries Inc., and Mayfield Lumber. NHLA Chairman, Jeff Wirkkala, welcomed attendees and encouraged everyone to donate to the Real American Hardwood Coalition, saying, “The hardwood lumber industry is going to be a big part of the solution to a greener world.”

The keynote speaker was Chester Elton, author of best-selling leadership books “All In, The Carrot Principle” and “The Best Team Wins.” He delivered a rousing address offering solutions to the challenges of hiring quality employees and retaining them in the long run. Chester energized the crowd and said the three main strategies for attracting and retaining staff revolve around company culture, employee mental health, and gratitude.

14 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM
2022 NHLA Annual Convention & Exhibit Showcase

The welcome reception sponsored by Cascade Hardwood LLC, brought together 1,000 hardwood industry professionals.

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After the opening session, the Exhibit Showcase opened, featuring over 100 exhibiting companies. The exhibit hall was the place to be with live demonstrations, Bloody Mary Bars, Coffee Stations, Beer Booths, free lunch, and more.

Day two wrapped up with an after-hours private reception at the Rock & Roll Hall of Fame sponsored by NWH. Convention attendees could tour the world-class venue, while networking with industry leaders as they enjoyed the displays, cocktails, and hors-d’oeuvres. NWH led a scavenger hunt at the Hall, offering prizes. They also held a silent and live auction for items like a PRS Private Stock Guitar, a Fender Guitar, an autographed “The Who” album, art, photos, and more. In total, about $30,000 was raised for the Real American Hardwood Coalition.

The third and final day of the Annual Convention featured NHLA Board Elections, where John Syre of Cascade Hardwood became the new Chairman of the National Hardwood Lumber Association.

Outgoing Chairman Jeff Wirkkala thanked NHLA members, staff, his wife, and family. Wirkkala received a standing ovation as he passed the gavel to John Syre.

The NHLA membership also elected as Vice Chairman, Bucky Pescaglia of MO PAC Lumber Company. Two board members officially retired: Bruce Horner of Abenaki Timber Corp and Jason Smith of Westbury Lumber Company.

Friday’s General Session, sponsored by Pennsylvania Lumbermens Mutual Insurance, featured an update from the Real American Hardwood Coalition (RAHC). They shared the latest steps they have taken in promoting North American hardwoods. RAHC showed an outstanding video portraying hardwoods as the healthiest and most sustainable choice. They also shared their new consumer-facing website, discussed how social media content creation will help to build the brand, and provided an update on fundraising efforts.

16 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM

The Exhibit Showcase featured over 100 exhibiting companies and was the place to be with live demonstrations, Bloody Mary Bars, Coffee Stations, Beer Booths, free lunch, and more.

WWW.NHLA.COM DECEMBER 2022 HARDWOOD MATTERS | 17
18 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM

The NHLA Annual Convention presented a variety of educational topics. The first educational session was hosted by Nate Irby, the Executive Director of the Railway Tie Association. Nate shared an overview of the dynamics of the wood tie market. He also explained the entire scope of the tie sector, a line of sight into tie sawing solutions, and summarized the future demand for railway ties.

Advancements in Hardwood Cross-Laminated Timber (CLT) was another education session that stood out. Sponsored by A.W. Stiles Contractors, Inc., the seminar was presented by an expert panel hosted by Dr. Henry Quesada, Assistant Director of Extension and Leader for the Agriculture and Natural Resources program at Purdue University. Panel members included Dr. Brian Bond from Virginia Tech, Tom Inman with AHMI, David Venables with AHEC, and Brant Cobb, an avid believer in CLT. In their session, they discussed how the hardwood lumber industry has excellent opportunities in the Cross Laminated Timber market.

Friday’s education sessions began with “Planes, Trains, and Supply Chains,” sponsored by Carbotech-Autolog. Dr. Tom Goldsby, Chair of Logistics at the Haslam College of Business at the University of Tennessee-Knoxville, spoke about supply chain issues affecting the hardwood industry. Dr. Goldsby pointed out that a lack of labor availability and retention plays a significant role in the current bottlenecks we face regarding logistics.

The final education session was hosted by Mike Snow, the Executive Director of AHEC. It was sponsored by Kuehne + Nagel, Inc. Snow’s session, “Enhancing Access to Export Markets in a Time of Global Transformation,” covered the ways global climate change policies offer significant opportunities for hardwood exporters if they are prepared. Mike discussed export trends, outlined what a potential “jurisdictional certification” program might look like for the hardwood industry, and the steps AHEC has taken in that direction.

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The NHLA Annual Convention presented a variety of educational topics. Tom Inman, Dr. Brian Bond, and Dr. Henry Quesada Mike Snow Nate Irby Dr. Tom Goldsby
20 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM

From exclusive receptions to big parties, everyone attending the 2022 Annual NHLA Convention had fun opportunities to network in a relaxed setting.

The convention ended in style with the “I Love Rock & Roll Gala.” Attendees celebrated three days of making new connections and strengthening existing relationships with top-notch celebrity impersonators, a dueling piano show featuring Elton John and Billy Joel look-alikes, dinner, and dancing. The party was sponsored by DV Hardwoods, Inc. and MO PAC Lumber Company.

During the Gala, the Inspector Training School Educational Foundation announced the winner of its 50/50 drawing. Tickets for the drawing had sold out, providing ITSEF with a $10,000 donation and one lucky winner a check for $10,000. ITSEF will use all of the raised money to improve the School and provide scholarships to worthy students.

As always, The NHLA Convention was a great time to catch up with fellow members, network with clients and potential clients, and learn from peers, speakers, and presenters.

THE 2023 NHLA ANNUAL CONVENTION & EXHIBIT SHOWCASE WILL BE HELD OCTOBER 4-6 AT THE OMNI HOTEL IN LOUISVILLE, KENTUCKY.

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The New NHLA Rules Book is HERE! Changes You Need to Know

Later this month, NHLA member companies will receive the 2023 edition of the NHLA Rules Book for the Measurement & Inspection of Hardwood & Cypress. As a reminder, there are three Rules changes to this year’s edition. You will also see updates to the NHLA Sales Code and formulas added to the Tally section of the Rules Book. All the updates are listed below.

HARDWOODS FOR CONSTRUCTION

Page 66, Select Car Stock: Change split limitation from - “SPLITS: Shall not exceed 6” in length in any one end or the aggregate equivalent in one or both ends of the piece.” To – “SPLITS: Shall not exceed 12” in length in either end of the piece of Standard or specified length.”

Page 67, Common Dimension: Change Split limitation from –“SPLITS: Shall not exceed 12” in length in any one end or the aggregate equivalent in one or both ends of the piece.” To – “Splits shall not exceed in the aggregate in inches in length twice the surface measure of the piece of Standard or specified length, except when one foot or shorter.”

CYPRESS RULES

Page 50, paragraphs 98 & 99, No. 1 & No. 2 Peck – Combine paragraphs 98 & 99 to create “Peck” as follows – “Each piece must contain peck, with a minimum area of 10% of the Surface Measure, well distributed on one side. Each piece must be suitable for ordinary handling and construction without breakage.”

SALES CODE

Page 79, ARTICLE V – Quantity & Loading has been changed to: Note: Shippers shall make every attempt to ship full, accurate tallies for both grade and measurement on all shipments under the sales code as defined by the order. Attempts to intentionally under ship footage and/or ship a percentage of off-grade material in order to fall within Article X (Inspection) regulations, or to vary tallies and grade by the trend in market conditions are discouraged as they do not

accurately portray the intended purpose of Article X, and therefore, represent a breach of good faith under the sales code.

MEASUREMENT & TALLY

Page 7, below paragraph 16, a formula was added:

Formula to calculate Surface Measure

(Actual W x Std. L)/12 = SM Rnd.

Actual W = Full width, including fractions.

TALLYING ON A 12 FT. BASIS

Page 7, below paragraph 16, a formula was added:

Formula to calculate Surface Measure (Length & Width Tally)

((Nominal W x # pcs.) x Std. L)/12 = SM Rnd.

Nominal W = Width rounded to the nearest inch

The 2023 NHLA Rules Book and changes become effective on January 1, 2023. If you have any questions, please feel free to contact me: Chief Inspector Dana Spessert, at d.spessert@nhla.com.

RULES

FOR THE MEASUREMENT & INSPECTION OF HARDWOOD & CYPRESS

Plus NHLA Sales Code & Inspection Regulations

Effective January 1, 2023

22 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM RULES CORNER
How’s your edger performing? Let NHLA help you become more efficient and more profitable. Our team will evaluate your process from log selection to end product and thoroughly analyze every step in between. The purpose of the program is to identify potential profits that already exist. Contact Chief Inspector Dana Spessert to setup your evaluation today! 901-399-7551 | d.spessert@nhla.com | www.nhla.com THE EDGER IS THE LARGEST CAUSE OF YIELD LOSS IN SAWMILL OPERATIONS. The NHLA Yield Analysis Program has identified an average of $400,000 per company in edger loss.

NHLA PROVIDES EDUCATION AND TRAINING TO IMPROVE YOUR BOTTOM LINE

DEC

Dec. 5-7

Intro to Hardwood Lumber Grading

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

Venue: Cherokee Wood Products, Inc.

Location: Upland, CA

Instructor: Dana Spessert, NHLA Chief Inspector

JAN

Jan. 9-Mar. 3

Inspector Training School

201st Class

Traditional 8-week hands-on training to achieve the certificate of completion in Hardwood Lumber Inspection.

Venue: NHLA Headquarters Location: Memphis, TN

Instructor: Roman Matyushchenko, ITS Instructor

MAR

March 20-31

Inspector Training School Online Training Program MODULE 1

Two weeks of hands-on training.

Venue: NHLA Headquarters Location: Memphis, TN

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

Instructor: Roman Matyushchenko, ITS Instructor

APR

April 24-26

Intro to Hardwood Lumber Grading

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

Venue: NHLA Headquarters Location: Memphis, TN

Instructor: Roman Matyushchenko, ITS Instructor

24 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM Register for classes at www.nhla.com/Education.
ITS
CALENDAR

“I enjoyed and was extremely impressed with our 3-day Intro to Grading Hardwood Lumber class. The class was very informative and truly gave me a different perspective on what’s involved in the hardwood lumber grading process. Roman did an awesome job as our instructor. Everyone at NHLA welcomed us and treated us as a part of their family. I applaud everybody involved for a job well done.”

Frank Hooks

NHLA certified lumber grader at Beasley Flooring Products

AUG

Aug. 21- Sept. 1

Inspector Training School

Online Training Program

MODULE 1

Two weeks of hands-on training.

Venue: NHLA Headquarters Location: Memphis, TN

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

Instructor: Roman Matyushchenko, ITS Instructor

SEPT

Sept. 6-8

Intro to Hardwood Lumber Grading

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

Venue: NHLA Headquarters Location: Memphis, TN

Instructor: Roman Matyushchenko, ITS Instructor

Sept. 25- Nov. 17

Inspector Training School

203rd Class

Traditional 8-week hands-on training to achieve the certificate of completion in Hardwood Lumber Inspection.

Venue: NHLA Headquarters Location: Memphis, TN

Instructor: Roman Matyushchenko, ITS Instructor

NOV

Nov. 27-Dec. 8

Inspector Training School

Online Training Program

MODULE 1

Two weeks of hands-on training.

Venue: NHLA Headquarters Location: Memphis, TN

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

Instructor: Roman Matyushchenko, ITS Instructor

WWW.NHLA.COM DECEMBER 2022 HARDWOOD MATTERS | 25

NHLA JOB BOARD

FACULTY, WOOD SCIENCE INSTRUCTOR - WAUSAU, WI

NORTHCENTRAL TECHNICAL COLLEGE

Northcentral Technical College (NTC) is seeking a knowledgeable, energetic, professional full-time faculty member to teach in its Associate Degree Wood Science Program. This unique two-year program is taught out of NTC’s beautiful, one-of-a-kind 27,000-square-foot Wood Technology Center of Excellence. This bright and modern facility houses state-of-theart equipment used for both the Associate Degree program as well as several certificates and Continuing Education classes. Due to the unique learning environment, businesses send students from around the country to NTC for this exceptional training. Located in Antigo, Wisconsin, the area offers many lakes and expansive forested areas featuring numerous outdoor activities, including hunting, fishing, hiking, golfing, camping, skiing, snowshoeing, and biking. With a population of around 7,700, the city of Antigo has a small-town feel yet is large enough to meet your daily needs with multiple dining and retail businesses, and it is only 40 minutes from Wausau.

Skills & Experience Required

• Must have a minimum of two years (4,000 hours) full-time (or equivalent) demonstrated relevant wood industry occupational experience, one of which must be within the last five years.

• Bachelor’s degree in Wood Science and Technology or related field, or an Associate’s degree with the agreement to obtain a Bachelor’s degree upon hire.

• Willing/able to meet Wisconsin Technical College System (WTCS) and Higher Learning Commission (HLC) requirements, accreditation standards, and/or licensing standards where applicable.

• Experience in teaching and working with diverse populations is preferred.

Salary & Benefits

• Health and Dental Insurance

• Vision Insurance

• Life and Long-Term Disability Insurance

• Short Term Disability

• Wisconsin Retirement System

• 403(b) Pre-Tax Retirement Savings

• 457 Deferred Compensation Plan (Pre-tax & Roth Option)

• 529 Plan

• The Standard -Accident, Critical Illness (voluntary)

• Paid Holidays & Sick Leave

• Professional Development

How to Apply

Send your resume to: katrina@ajdforestproducts.com

Northcentral Technical College

1000 W Campus Dr. | Wausau, WI 54401 715-803-1483

PROCUREMENT FORESTER - MILLERS CREEK, NC

CHURCH & CHURCH LUMBER COMPANY, LLC

Church and Church Lumber is seeking a Procurement Forester.

Duties include:

• Evolve business around cost and profitability within its procurement practices.

• Purchase and maintain adequate stumpage inventory

• Maintain strong relationships with timber/landowners

• Develop and uphold strong relationships with logging contractors

• Cruise, purchase, and negotiate timber sales

• Coordinate with sawmill and log yard managers on log grades, yields, and scheduling

• Manage log re-sale program

• Analyze and provide detailed reporting

Skills & Experience Required

• Energetic, personable, self-motivated, detail-oriented, team-player

• Precise timber cruising utilizing cruise software

• Appraise logging rates

• Accurate timber value estimation

• In-depth knowledge and experience in all facets of logging

• Preferred bachelor's degree in Forestry

• Computer skills in GIS, Excel, and Word

• Highly motivated and committed to providing exemplary work

Salary & Benefits

• Salary negotiable

• Benefits include: Health Insurance, Retirement Plan, Paid Vacation

How to Apply

Send your resume to: office@churchandchurchlumber.com :

Church & Church Lumber Company, LLC

PO Box 619 | Millers Creek, NC 28651 336-973-5700

WWW.NHLA.COM 26 | DECEMBER 2022 HARDWOOD MATTERS
Here you will find our current job listings. To see more details or to post a job, visit www.nhla.com/industry-services/job-board.

NHLA JOB BOARD

Here you will find our current job listings. To see more details or to post a job, visit www.nhla.com/industry-services/job-board.

YARD MANAGER - MILLERS CREEK, NC

CHURCH & CHURCH LUMBER COMPANY, LLC

Church and Church Lumber Company is seeking a Yard Manager to work at Sleet Hardwoods. Select Hardwoods is a concentration yard with 6 kilns processing up to 10 million feet of hardwood lumber per year. We are looking for a yard manager to join our growing team.

Duties include:

• Oversee lumber inspectors grading & reman, line management.

• Train inspectors to manage the pullers and machine operators.

• Use NHLA reports, customer feedback, and management's suggestions to target areas of improvement.

• Conduct after-hours NHLA grade training with the inspectors and others.

• Oversee line crew to ensure all lumber is graded, tallied, tagged, and inventoried properly.

• Assist manager in updating QC protocol.

• Report on sawmill and kiln defects.

• Assess current QC procedures and make revisions where needed.

• Implement and train appropriate personnel to follow QC protocol to assure the best quality product is shipped.

Skills & Experience Required

• Hardwood lumber inspection applying NHLA rules: 2 years (Required)

• NHLA Inspector Training School Certificate (Required)

• Must have NHLA training and experience grading hardwood lumber, preferably kiln-dried.

• Must have the ability to inspect lumber when needed.

• Must have the ability to operate a forklift when needed.

• Must have the ability to assist warehouse personnel in building loads when needed.

• May assist in kiln operation duties, cutting kiln samples and wafers, weighing & calculating MC.

• Must maintain a safe and clean work environment.

• Coordinate with the manager, warehouse manager, and inventory specialist to plan the processing of the lumber in an efficient and organized fashion.

• Report supply needs in advance of running out.

• Report PM if it has been neglected.

• Organize crew rotations.

Salary & Benefits

• Salary: $60,000 - $90,000

• Medical Insurance (after 90 days)

• Paid vacation

• Company % Match Retirement Plan

• Direct Deposit

How to Apply

Send your resume to: office@churchandchurchlumber.com

Church & Church Lumber Company, LLC

PO Box 619 | Millers Creek, NC 28651

336-973-5700

LUMBER INSPECTOR - MILLERS CREEK, NC

CHURCH & CHURCH LUMBER COMPANY, LLC

Church & Church Lumber Company is in search of a Lumber Inspector to grade at their mill in Millers Creek, NA.

Responsibilities include:

• Visual inspection of KD hardwood lumber according to NHLA rules and customer specifications.

• Maintain production flow on the line, including streamlining changeovers by guiding line workers.

• Oversee inspection and tally of incoming loads, making sure the invoiced lumber is what we received in grade in volume

• Coordinate with the Yard Manager to help plan daily production goals.

• This position has the opportunity for advancement to Yard Manager

Skills & Experience Required

• Hardwood lumber inspection applying NHLA rules: 2 years (Required)

• NHLA Inspector Training School Certificate (Required)

• Extensive knowledge of NHLA inspection rules.

• Ability to maintain a fast-paced production rate.

• Good communication skills to manage line crew.

• Ability to identify production issues to communicate to the sawmill.

• Ability to identify specie as well as grades.

• Ability to tally. Allegro handheld, Tally Express picture tally, and line tally preferred.

Salary & Benefits

• Salary: $18.00 - $22.00 per hour

• Medical Insurance (after 90 days)

• Paid Vacation

• Company % Match Retirement Plan

• Direct Deposit

How to Apply

Send your resume to: office@churchandchurchlumber.com

Church & Church Lumber Company, LLC

PO Box 619 | Millers Creek, NC 28651 336-973-5700

DECEMBER 2022 HARDWOOD MATTERS | 27 WWW.NHLA.COM

HARDWOOD MARKETS MATTER

Hardwood Markets Matter and it is important for NHLA to share market details of the entire Hardwood Industry. We appreciate the support of allied associations and publishers in gathering and sharing this important market information that can help you understand the complete hardwood industry picture.

U.S. exports of hardwood lumber fell 19.0% in the third quarter, second only in the last five years to Q3 2018’s drop of 19.6%. However, second-quarter volumes in 2018 were hyper-inflated by last-minute shipments—and lastminute Chinese purchasing—ahead of the start of the trade war. Peak shipments are usually in the second quarter, so third-quarter shipments generally fall off. While third-quarter export volumes this year were certainly not awful—in fact, they were higher than in 2019 and 2020— absent the 2018 anomaly, this year’s third-quarter slowing was the worst in 33 years, in terms of percentage decline, and the worst ever by volume.

Importantly, exports to Latin American markets (namely Mexico) held up significantly better in the third quarter than shipments to Canada, Asia and Europe. Third-quarter shipments were down 8% to Mexico, but up a combined 11% to smaller secondary Latin American markets. By comparison, third-quarter volumes dropped 20% to Asia (including 26% to China), 27% to Europe, and 26% to Canada.

Likewise, third-quarter declines varied widely by species. Somewhat surprisingly, Red Oak exports held up best in the third quarter, dropping

only 8%, overall, and actually rising 16% to Latin America. In contrast, White Oak, Walnut and Hard Maple exports fell off about 25%, and Alder and Soft Maple exports dropped 30% and 40%, respectively.

While strong U.S. domestic demand played a significant role in the market price runup that began in the fall of 2020, exports also contributed, with volumes climbing slowly and steadily from the pandemic lows of early 2020 through the first half of this year. Certainly, exports are not as significant in terms of overall demand for U.S. hardwoods as before the trade war, but the sharp drop-off in third-quarter volumes this year clearly has contributed to the rapid price declines we’ve seen since July.

28 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM MARKET TRENDS
0 100 200 300 400 500 600 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 Million Board Feet Quarter Quarterly U.S. Hardwood Lumber Exports 2017 2018 2019 2020 2021 2022
Source: USITC, Hardwood Review
www.hardwoodreview.com

www.ahec.org

EXPORT MARKETS COOL, BUT STILL HIGHEST DEMAND SINCE 2018

Through the first 9 months of 2022, US hardwood lumber exports are up 6% by volume and 11% by value from 2021. This is slowdown on pace from earlier this year, but still the best export showing since 2018. Exports of all hardwood lumber species through September 2022 have totaled 2.7 million cubic meters, a value of $1.8 billion.

The big concern in export markets continues to be a lagging recovery in the Chinese market. US hardwood exports to China are limited by reduced demand from within the country as their housing and infrastructure development has cooled off considerably since 2018. Export volumes of US hardwood lumber to China increased compared to last year, but are still less than half of what they were pre-trade war China also continues to pursue a “Zero COVID Policy” that means city-wide lockdowns aren’t going anywhere anytime soon.

However, in spite of the reduced demand in China, US hardwood lumber exports have increased every year since 2020. Exports to China in 2022 were over

110,000m3 lower than in 2020, but overall exports grew by 394,000 m3 in that period. So to look at that another way, markets outside of China have grown by over 500,000m3 through September of this year compared to 2020. The export markets leading this growth have been Europe, Canada, Mexico, and smaller growth dispersed through SE Asia. Interestingly, Vietnam has declined in volume every year since 2019. There are many factors contributing to this decline, including supply chain issues, strict COVID lockdowns, and a heightened competition for labor with many manufacturers looking to relocate from China

Strong demand for US hardwood products in traditionally developed markets like Europe, Mexico, and Canada are encouraging for the future of our industry. As we continue to promote underutilized species like red oak, maple, and hickory in these markets, we look to continue to drive new growth and appreciation for American hardwood products worldwide.

WWW.NHLA.COM DECEMBER 2022 HARDWOOD MATTERS | 29
1,530 1,816 1,649 1,012 958 826 847 394 421 413 401 312 487 494 278 283 286 264 233 343 419 286 333 370 398 382 341 323 232 249 237 232 198 274 319 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2016 2017 2018 2019 2020 2021 2022 Thousands (m3) Hardwood Lumber Exports (Jan-Sept) OTHER South Korea Indonesia Thailand Japan Mid. East & N. Africa Lat. America Vietnam Europe Canada China & HK
Source: USDA GATS (Jan-September Each Year)

www.hmr.com

The HMR Demand Index (HDI) is a feature in HMR Executive® that illustrates monthly trends in reported demand from 10 major domestic markets for hardwood lumber. Components of the index are color coded with various shades of blue when demand is slow, they transition to gray when demand is fair, and then to light red and deep red when demand moves from good to strong.

Cabinets

Residential Flrg

Truck Trailer Flrg

Upholst. Furniture

Wood Furniture

Moulding/Millwork

Wood Components

Board Road

Pallets

Railroad Ties

30 | DECEMBER 2022 HARDWOOD MATTERS WWW.NHLA.COM
Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22
Quite Slow Slow Fair/Steady Good Quite Good

www.rta.org

WOOD TIE INDUSTRY CONTINUING EDUCATION

The concept of creating an off-the-shelf Wood Ties 101 is a popular topic among wood tie producers focusing on educating their railroad customers. Corporate turnover is a real issue. Which means every 18-24 months, you probably have a new end user/railroad person to interact with. So, one better get used to training. The Railway Tie Association offers outreach and education events to help bridge some of those gaps, as we have been the advocate for the wood crosstie industry from tree to track for over 100 years.

Our premiere educational event is called the Tie Grading Seminar. This is a three day all-inclusive deep-dive into all things wood ties. We teach the students the alpha to omega of the wood tie supply chain, so they get impactful information both upstream and downstream from their

respective roles but we instill the concept each individual has the ability to question the quality of a tie, and each individual is equally important in the transformation of a tie from tree to track. Wood species identification is explained and helpful tips presented to give the students insights into categorizing wood ties by species group. Tie defects are defined and full size ties shown to assist students in grading real ties for end-use. The culmination of these taught principles gives TGS students a direct line of sight and the ability to classify ties.

RTA’s key networking event is called the Member’s Only Field Trip and usually occurs mid-June. This event offers robust raw material to end-use real-world perspectives of the industry. The slate typically includes a sawmill trip, treating plant visit, and a rail yard stop, all-the-while offering informative programs and a fun activity or two. This level of engagement is fairly intimate as space is limited – long term business partnerships and friendships are created via participation in this event.

The largest event RTA puts on each year is called the Annual Symposium and Technical Conference which is in the Fall. The conference includes exhibits, technical sessions, fun activities, and attendees garner a comprehensive scope of the pulse of the industry by attending. With all these events, our goal is to provide the platform for our industry to learn and grow through establishing a sense of community and providing continuing education for any individual, from new entrants to tenured personnel, there is appropriate context for all.

The Railway Tie Association membership works together to keep wood tie markets strong and sustainable.

WHAT IS YOUR VIEW OF CROSSTIE COMPETITIVE POSITION RELATIVE TO OTHER HARDWOOD PRODUCTS?

REGARDING YOUR ABOVE ANSWER, PLEASE PROVIDE CONTEXT FOR MARKET, WEATHER OR OTHER CONDITIONS.

EASTERN US

LAKE

STATES

Minnesota, Iowa, Wisconsin, Michigan, N Indiana, N Illinois: Log prices are starting to come down, but mills are still keeping a low log inventory. Some Amish mills that would normally start sawing after crop harvest are still sitting on their hands. Mild weather has been good for logging.

ATLANTIC

Virginia: Markets for pallet and flooring are dropping considerably. Mills are starting to cut more ties. Weather has been fairly dry for the past month and good conditions for logging.

North & South Carolina: Lumber markets are soft and over produced

West Virginia: Lumber pirces continue to drop. Some mills are low on logs for this time of year of heading into winter. Some of that is by choice because of dropping prices and sales orders.

NEW ENGLAND

New England 1: With the markets up in the air, mills are looking for consistency and looking toward increased production of industrial products. Getting harder for mills to move their lumber. Red oak lumber is much lower that it was. Ties and pallet demand is still high, and mills are increasing production fo that material. Wet weather and hunting season will slow logging production.

Pennsylvania: Weather has been wet and not good for logging. Competing markets have softened somewhat.

WWW.NHLA.COM DECEMBER 2022 HARDWOOD MATTERS | 31

BE PART OF BUILDING SOMETHING BIG

Where We’ve Been

It’s no secret, the hardwood industry has been losing market share to products that look like wood, but have none of the natural benefits or authentic attributes of Real American Hardwood™ products. In order to recapture market share and improve industry stability, hardwood organizations united to form the Real American Hardwood Coalition.

Where We Are

The goal is to develop a national consumer promotion campaign on a scale that’s never been seen before. And a lot has been accomplished in a short period of time—including the completion of an extensive consumer research initiative, establishing brand guidelines, registering trademarks, and launching social media profiles.

Where We’re Going, Together

The next steps will have the largest impact on the industry and require buy-in from all industry stakeholders. The Coalition is preparing to launch a comprehensive promotion campaign—including a consumer-oriented website, in-store promotion at top big box stores, a broad media relations campaign, social media influencer partnerships, print and web advertising, and much more.

How You Can Get Involved

Moving the campaign forward and expanding its reach will take the support of the entire industry—for the benefit of the entire industry.

■ Make a voluntary contribution to help fund the consumer promotion campaign.

■ Use the Real American Hardwood logo on your sales and marketing communications, facilities and vehicles, products, and website.

■ Follow @RealAmericanHardwood on Instagram and Facebook, and tag #RealAmericanHardwood in your social media posts.

Visit RealAmericanHardwood.org to learn more and get on board.
VISIT DMSi.COM TO LEARN MORE
TIMBER, LOGGING & LUMBER Handheld & desktop software HARDWOOD END TALLIES Mobile app with A.I. DISTRIBUTION AND RETAIL Inventory and order management
ONE SOFTWARE PARTNER FROM TIMBER TO CONSUMER
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