December 2023 Hardwood Matters by National Hardwood Lumber Association

TH E VOIC E O F THE HARDWOOD IN DUSTRY

H A R D W O O D M AT T E R S December 2023

Year In Review Recap

The 2023 NHLA Annual Convention & Exhibit Showcase

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CONTENTS December 2023 • Issue 251

WHAT'S INSIDE features 16

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Chairman’s Message Educational Calendar NHLA Job Board Market Trends

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Bucky Pescaglia, Vice Chairman Missouri-Pacific Lumber Co., Inc. Jeff Wirkkala, Past Chairman 2020-2022 Hardwood Industries, Inc.

MISSION LEADERS

Sam Glidden, ITS and ITSEF GMC Hardwoods, Inc. Ray White, Lumber Services Harold White Lumber Inc.

One Common Ground From Scout Law to Lumber Grades: Finding Freedom in Guidelines by Dallin Brooks, Executive Director

Joe Pryor, Education Services Oaks Unlimited

Accolades

Stephanie VanDystadt, Membership & Networking DV Hardwoods, Inc.

Membership Matters The Season for Progress and Improvement by John Hester, Chief Development Officer

Rob Cabral, Market Impacts Upper Canada Forest Products, Ltd.

Member of the Month

Member Spotlight Pennsylvania Lumbermens Mutual Insurance Company (PLM)

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Jon Syre, Chairman Cascade Hardwood, LLC

departments

reader services

Exploring Hardwood Horizons at the 2023 NHLA Annual Convention & Exhibit Showcase by Amanda Boutwell, Marketing Communications Manager

EXECUTIVE COMMITTEE

Legislative Log Bypartisan House Lawmakers Introduce "Jobs in the Woods Act" by Dana Cole Executive Director Hardwood Federation Rules Corner The Impact of Thickness Measurements by Dana Spessert, Chief Inspector

Rich Solano, Convention Pike Lumber Company, Inc.

DEPUTY MISSION LEADERS

Burt Craig, Membership & Networking Matson Lumber Company Tom Coble, Market Impacts Hartzell Hardwoods, Inc. Dennis Mann, Convention Baillie Lumber Co. Tom Oiler, Lumber Services Cole Hardwood, Inc. Brant Forcey, ITS and ITSEF Forcey Lumber Company George Swaner, Education Services Swaner Hardwood Co., Inc.

COMMITTEE CHAIRMAN Sam Glidden, Rules GMC Hardwoods, Inc.

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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 15 31 31 IFC 9 23 3 21 5 21 BC 9 IBC 11 7 23

The AGL Group Baillie Lumber BID Group DMSi Software Industrial Vision Systems JoeScan King City Forwarding USA Kuehne + Nagel, Inc. Lumber Marketplace Novum Underwriting Partners NWH Pennsylvania Lumbermens Mutual Insurance Company Pike Lumber Company, Inc. Showcase Equipment, LLC UCS Forest Group Wood-Mizer

For advertising contact: John Hester j.hester@nhla.com or 901-399-7558 Vicky Simms v.simms@nhla.com or 901-399-7557

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NHLA STAFF Dallin Brooks, Executive Director dallin@nhla.com John Hester, Chief Development Officer j.hester@nhla.com Renee Hornsby, Chief Operating Officer r.hornsby@nhla.com Dana Spessert, Chief Inspector d.spessert@nhla.com

ACCOUNTING Desiree Freeman, Controller d.freeman@nhla.com Jens Lodholm, Data Administration Specialist j.lodholm@nhla.com Amber Signaigo, Assistant Controller a.signaigo@nhla.com

INDUSTRY SERVICES Mark Bear, National Inspector m.bear@nhla.com Tom Byers, National Inspector t.byers@nhla.com Mark Depp, National Inspector m.depp@nhla.com Kevin Evilsizer, National Inspector k.evilsizer@nhla.com Simon Larocque, National Inspector s.larocque@nha.com Benji Richards, Industry Services Sales Manager b.richards@nhla.com

INSPECTOR TRAINING SCHOOL Geoff Webb, Dean of the Inspector Training School g.webb@nhla.com Roman Matyushchenko, Instructor of the Inspector Training School r.matyushchenko@nhla.com

MARKETING/COMMUNICATIONS Amanda Boutwell, Marketing and Communications Manager a.boutwell@nhla.com Melissa Ellis Smith, Art Director m.ellis@nhla.com

MEMBERSHIP Julia Ganey, Member Relations Manager j.ganey@nhla.com Vicky Quiñones Simms, Membership Development Manager v.simms@nhla.com W W W. N H L A .C O M

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CHAIRMAN'S MESSAGE

REFLECTING ON 2023

he end of the year is always a time to reflect on what we have accomplished. What did we do well? What should we have done better? How can we improve? Reflecting on the past year, what is the top ten list of accomplishments? I recall watching Letterman doing his top ten lists and watching the different countdowns for New Year’s Eve celebrations. Top news stories, top influential people, and top music videos. All the essential stuff. At our company, I review what we are doing well more than annually, but performance is always on my mind at year’s end. This year has been challenging, so could we have done anything better along the way? Yes, there are always opportunities for improvement and lessons learned. At NHLA, it has been quite a year! During the spring board meeting, we adopted and implemented a new strategic plan we have been working on over the last few months! This plan has changed the trajectory of the Association’s focus. The plan was a result of asking if we could do better. Yes, we can, and we have! There is a new membership structure, new training school focus, new promotional efforts, new meeting schedules, new grant opportunities, new board member representation, and a new committee focus at the board meeting. Our industry is changing, and the NHLA staff and board are adapting to the unique needs of the membership.

The NHLA Annual Convention in Louisville, Kentucky, was a great success, hosting a crowd of nearly a thousand attendees. The convention was a great success. Educational and exciting seminars such as “AI and ale” were held and attracted and intrigued attendees. There were many networking opportunities, and the exhibit hall was full of expertise, new ideas and products, enthusiasm, and Bloody Mary bars! We will meet in St. Louis, Missouri, again on October 2-4, 2024.

continues to look at new ways of bringing the school curriculum to a specific location in need. The convention committee is creatively thinking about unique and thought-provoking educational seminars for next year. The market impacts committee continues to identify industry threats and generate innovative solutions for our membership to implement. The board and staff are all hyper-focused on bringing meaningful value to your membership dollar. Our industry is changing, and the Association is changing and adapting with it! The board and staff are engaged, dynamic, and focused on the challenges and opportunities ahead. It has been a good year. The challenges we have all encountered have helped us sharpen our focus on what is truly important, and NHLA is no different. Highly focused on member value, NHLA is poised to embrace the changes needed in 2024 to successfully grow and stabilize the hardwood industry. Thank you for taking the time to read my letter. Merry Christmas to all of you, and Happy New Year! Best wishes to you and your family.

Jon Syre NHLA Chairman | Cascade Hardwood

The Board of Managers met for the fall board meeting this October in Memphis, Tennessee. Embracing the strategic plan mantra of “Grow and stabilize the hardwood industry,” I believe dynamic and urgent are good words to describe the conference vibe. Some highlights of committees are that the Inspector Training School

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ONE COMMON GROUND

From Scout Law to Lumber Grades: Finding Freedom in Guidelines

hief Inspector Dana Spessert writes the Rules Corner, but I hope you don’t mind me sharing an experience and relating it to the hardwood industry and the NHLA Grading Rules.

Twenty years ago, I served as a Scoutmaster for a local church unit in Vancouver, BC. I was a full-time student at UBC, had two kids, and worked full-time as a locksmith. But I took time each Tuesday night to put on scouting activities for a group of inner-city boys. I also took them camping once a month. Learning about God and Scouting together was a great combo for my life, and I was trying to give it back. But I was a young and inexperienced leader, overwhelmed by how much I had to learn. The boys had other friends who had no rules in their life. These friends did whatever they wanted, and the Scouts I led wanted that life, too. They saw the voluntary rules (religious commandments and Scout law) as restrictions on their freedom, and four boys left. I was heartbroken; I spent a lot of time trying to help these boys. I remember a single mom calling me at 2:00 am, asking me to find her son because he had not come home yet and his friends had been caught breaking school bus windows. I dressed and drove around unsuccessfully for several hours, looking for him in the back alleys. Their expressions of freedom ended up getting them into difficult situations. One got juvenile detention, another was suspended from school for drugs, and another had teenage pregnancy and marriage before graduating high school. Their future plans and dreams were shattered, at least for a while. The moral of the story is that rules aren’t just restrictions; rules are necessary for true freedom. Not following the rules creates more restrictions.

drift over to your side? The confidence that others will follow the rule of not crossing the yellow line gives you the confidence to speed down the road. NHLA Grading Rules are the same thing. They do not restrict your freedom; they allow you the freedom to sell hardwood lumber. You might think the NHLA Rules are too restricting or not strict enough, or your customer might want something different. That is fine; the NHLA Rules are voluntary and don’t compete with your proprietary grades. But at the end of the day, the real restrictions begin if everyone stops following them. Increased claims, government intervention, and much more will happen. The NHLA Rules give you options, not restrictions. That is why we need to update and refine the NHLA Rules. If the market has changed, we must change the rules, not hold onto outdated and unused rules simply for traditions. We should not wait four years to update our issues with them today. I encourage you to follow the rules, just as I encouraged the Scouts. The NHLA Grading Rules give you options and freedom to sell hardwood lumber. That is one common ground we can all appreciate.

Dallin Brooks NHLA Executive Director dallin@nhla.com | 360-823-3898

Just as a solid yellow line on the road is a rule to keep you in your lane, it also gives you the confidence that no one else will go the other direction in your lane. Yes, that rule keeps you from driving on whatever side of the road you want, but would you go as fast without it? Wouldn’t you constantly worry that someone else will

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ACCOLADES

Welcome New Members (August - October 2023)

ACTIVE MEMBERS

American Made Lumber, LLC, Middlefield, OH Khaya Woods Trading Corp., Boca Raton, FL Mountain Timber, Inc., Hector, AR Smyrna Lumber LLC, Smyrna, ME Tusco Hardwoods LLC, Sugarcreek, OH W. W. Lumber Company, Scottsboro, AL Whitewater Forest Products LLC, Batavia, OH

ASSOCIATE MEMBERS

Ort Flooring, Weyauwega, WI Pack Universe International, Inc., Mississauga, ON

SUSTAINING MEMBERS

Associated Auction & Liquidation Co., Clarksburg, TN Delta ERC, Shelby, NC Forest to Furniture, Dallas, TX H.E.L.P. Services Inc., Pelham, AL Hurdle Machine Works, Inc., Moscow, TN Jeff Miller Inc., White Pigeon, MI KOCH Machinery, Acworth, GA Koval Digital, Vancouver, WA LPS Equipment & Acquisition Co., Clarksburg, TN Lumber Marketplace, Columbia, TN Merchant Cost Consulting, Boston, MA Richard Murray & Co., Mobile, AL Speed Global Logistics Inc., Miami, FL VMG Technics, Lithuania Yoder Saws Inc., Kahoka, MO 8 | D E C E M B E R 2 0 2 3 H A R D W O O D M AT T E R S

Milestone Members

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

YEARS

B & B LUMBER INC. Active | September 2018 BOLDESIGN, INC. Sustaining | November 2018 EPICOR SOFTWARE CORP. Sustaining | September 2018 FORCEY LUMBER COMPANY Active | September 2018 GENE BRAZEALE LUMBER COMPANY, INC. Active | September 2018 HARDY VALLEY LUMBER Active | September 2018 OHC, INC. Active | November 2018 PEACHEY WOOD PRODUCTS Associate | September 2018 PHIL ETIENNE'S TIMBER HARVEST, INC. Active | November 2018 SMITH MOUNTAIN LAND & LUMBER, INC. Active | December 2018 TREELINE LUMBER LLC Active | September 2018 TRI STATE TIMBER SAWMILL, LLC Active | September 2018 WEST VIRGINIA WOOD TECHNOLOGY CENTER Research | December 2018

YEARS

YEARS

BEGIN & BEGIN INC. Active | December 1998

YEARS

QUALITY HARDWOODS, INC. Active | September 1973 YOUNG MANUFACTURING CO., INC. Associate | September 1973

YEARS

C. C. COOK & SON LUMBER CO., INC. Active | December 1948 W W W. N H L A .C O M

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Risk Management

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MEMBERSHIP MATTERS

THE SEASON FOR PROGRESS AND IMPROVEMENT

s we approach the holiday season, our industry finds itself navigating an extremely challenging market. In the spirit of Christmas, it’s time for companies to unwrap the gift of opportunity.

In down markets, companies may be inclined to tighten their belts. But now, more than ever is the opportune time to invest in strategies that will strengthen your future. The services NHLA provides are a lifeline for businesses looking to weather the storm and emerge stronger on the other side. Imagine this as a season of transformation—a time to enhance operations and refine the quality of the lumber you produce. Our expertise in maximizing yield is like unwrapping a present that keeps on giving. By utilizing our inspection services, companies can ensure they deliver a product that meets and exceeds market expectations.

This holiday season, let’s transform challenges into opportunities, embrace the gift of growth, and invest in the future. Let’s bring prosperity back to the hardwood lumber industry. This is not just the season for giving. It’s the season for progress and improvement. I wish you a Merry Christmas and a Happy New Year.

John Hester NHLA Chief Development Officer j.hester@nhla.com | 901-399-7558

In the spirit of continuous improvement, we encourage you to invest in your employees. The courses NHLA provides are more than just educational opportunities. They are the workshops where skills are honed and knowledge is expanded. A commitment to ongoing education is a gift that pays dividends, especially in challenging times.

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MEMBER OF THE MONTH

YODER SAWS Member Since 2023

As a new member of NHLA, Yoder Saws shines as the Member of the Month! Yoder Saws makes it a point to ensure their customers always get the maximum value out of their equipment and saws. Yoder is also proud to offer many services, including band saw repair, carbide saws (and carbide tipping), circular saw hammering and repair, knife grinding, and more. To learn more about Yoder Saws, contact them online at www.yodersaws.com or call them at (660-727-1464). We are proud to recognize Yoder Saws as our Member of the Month. Thank you for becoming a member!

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MEMBER SPOTLIGHT Pennsylvania Lumbermens Mutual Insurance Company (PLM)

PLM: Rooted in Tradition, Ready for the Future

Sean Briscoe

s the hardwood industry continues to evolve, facing numerous challenges such as escalating labor costs, supply chain bottlenecks, climate-induced catastrophes, and the introduction of new automation, it should be comforting to know that there are companies that have been around for a long time that understand how to navigate change and the challenges it creates.

Pennsylvania Lumbermens Mutual Insurance Company (PLM) was founded in 1895. They have been through every major challenge the hardwood industry has faced over the past 128 years. They’ve stuck by the hardwood industry through two World Wars, the Great Depression, and the 2008 housing crisis that had many of us on edge. How did they manage to withstand the test of time? By focusing exclusively on the wood industry and staying true to its roots.

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This niche focus isn’t accidental; it’s a deliberate strategy that sets PLM apart from the insurance providers that have diversified into unrelated areas and lost their edge in the wood industry as a result. Sean Briscoe, Assistant Vice President of Underwriting at PLM, said, “We have always been laser-focused on the wood industry. We have created longstanding partnerships with those we insure, employees, and resource partners. We’ve been in this business long

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Left to right: Michael D'Angelo (Point Global Logistics), Susan Cho, and Sean Briscoe

“We’re always mindful of the current challenges and aim to help our clients mitigate them.” enough to serve third and fourth generations of some of our client’s companies! That’s how we have continued to grow every year.”

the latest news is essential, saying, “We’re always mindful of the current challenges and aim to help our clients mitigate them.”

Rooted in this industry and with over 120 years of industry-specific experience, PLM offers unparalleled insights and tailored services to its clients. Sean continues, “When insurance carriers stray outside their expertise, they face risks. We’ve always stayed true to our roots and focused on our clients’ needs.”

In 2024, PLM plans to educate clients even more, especially when it comes to understanding their risk exposures due to the rising costs of building materials and labor. They will also focus more on vehicular safety protocols, as they have seen a growing need recently.

What distinguishes PLM is its client-centric business model. Imagine a triangle, Sean explains, “We put the client at the top of the triangle, with PLM and the broker at the base. We’re here to answer questions directly from our clients. Most carriers only want to deal with brokers, but we believe in direct communication.” This proactive approach is particularly evident in emergency situations. Sean uses an upcoming storm as an example: “If we know a storm is coming (based on weather patterns), we reach out and directly call clients that could be affected. We check in before and after the event—even before any claims have been reported. It’s that personal touch that sets us apart.” The wave of natural disasters over the past 12 months has prompted PLM to double down on preparedness education. They share information as much as possible, distributing tips and advice through their website, newsletters, and webinars. Sean says staying on top of

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PLM is a longtime member of NHLA and a generous sponsor of many NHLA events. Sean proudly said, “Our membership with NHLA allows us to keep our finger on the pulse of what’s happening in the industry. It’s meaningful to us, and we enjoy participating in events like the convention because we are part of the hardwood community.” PLM embodies a business plan steeped in industry specialization, client engagement, and preparedness—a trifecta that aligns well with the ethos of the NHLA. As we navigate the dynamic landscape of the hardwood industry, it’s reassuring to know that organizations like PLM are not just insurers; they are partners committed to the industry’s long-term success. Reach out to PLM online at www.plmins.com or call 1-800-752-1895.

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LEGISLATIVE LOG

BYPARTISAN HOUSE LAWMAKERS INTRODUCE "Jobs in the Woods Act" By DANA COLE, Executive Director of the Hardwood Federation

n recent years, the hardwood industry has identified workforce development to address chronic staffing shortages as a critical hindrance to economic growth, with nearly 60% of respondents to a December 2022 survey ranking the issue as a high priority. In early September, Reps. Lori Chavez-DeRemer (R-OR) and Marie Gluesenkamp Perez (D-WA), both members of the Agriculture Committee, introduced the bipartisan Jobs in the Woods Act (H.R. 5344). This important legislation will create a grant program that promotes jobs in the understaffed timber industry and the U.S. Forest Service. Specifically, the bill seeks to: • Establish education programs for states, nonprofits, and colleges through $500,000-$2,000,000 grants. • Create programs in rural and low-income areas to spur economic development, pushing significant investments into rural and underserved communities. • Establish a broad applicant pool of trained candidates to bridge the workforce gap in the timber industry. This will create high-quality jobs promoting forest management and addressing the industry’s supply chain challenges. • And leverage existing resources by partnering with established programs with a demonstrated track record of preparing students to embark on forest industry careers. The Hardwood Federation has joined nearly 60 forestry and forest product associations to sign on in support of the bill. Industry notes that “targeted workforce education and training programs have been effective recruitment tools in computer programming, utility vegetation management, and automotive industries” and could therefore address the needs of the forest sector. To bolster rural economies, the bill’s supporters state that “regional forest industry training hubs would allow participants to stay in or near their communities, which reduces the cost to participate” and allows program managers “to meet regional needs through ties to local forest product employers.”

Fortunately for the industry, House champions of the bill have been vocal about their support for promoting jobs in the forest sector. Rep. Chavez-Deremer (R-OR) has stated that she has “heard repeatedly

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from constituents in forestry-related industries that a lack of workers is negatively affecting their operations.” The congresswoman goes on to remark that the bipartisan bill “will help expand education opportunities in an effort to grow our workforce.” The congresswoman’s colleague and bill cosponsor, Rep. Marie Gluesenkamp Perez (D-WA), has stated that “the only way we’ll keep the woods working for future generations is if we provide the next generation a pathway to pursue careers in forestry.” She goes on to state that this “bipartisan bill will make that possible and connect people to careers in this critical field that is essential to southwest Washington.” The bipartisan list of cosponsors includes Reps. Ann Kuster (D-NH), John Rutherford (R-FL), and Andrea Salinas (D-OR). The bill has been referred to the House Education and Workforce Committee, where a path forward has yet to be discovered. Industry expects that a companion bill will be introduced in the Senate in the near future. That said, the bill’s champions are working to insert provisions of H.R. 5344 into the upcoming reauthorization of the farm bill. However, this remains an uphill battle in 2023 as Congress operates under a stopgap funding measure and continues to debate its top legislative priority, Fiscal Year (F.Y.) 2024 funding bills, none of which have been passed into law since the fiscal year began on October 1. The Hardwood Federation Team will continue to monitor this and other relevant legislative actions. W W W. N H L A .C O M

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Exploring Hardwood Horizons at the 2023 NHLA Annual Convention & Exhibit Showcase By AMANDA BOUTWELL, Marketing Communications Manager

HLA held the 2023 Annual Convention & Exhibit Showcase, presented by Rossi Group, October 4- 6 in Louisville, Kentucky. With 900 industry leaders, 100 industry-specific exhibiting companies, and more than $200,000 raised for the Real American Hardwood Coalition. The NHLA Annual Convention has long stood as the premiere event in the hardwood industry for coming together to strengthen existing business relationships, form new partnerships, and discover what’s next for the industry. This year, the Convention was bursting at the seams with Education Sessions, exhibit showcase displays, excellent speakers, networking receptions, and so much more. In fact, the NHLA Annual Convention was so busy that there were two pre-convention events!

Pre-Convention

Almost 100 hardwood industry professionals woke up early Wednesday morning to come together at the first Annual ITSEF Golf Tournament to raise money for the Inspector Training School Educational Foundation. Others attended the Pre-Convention Sawmill Symposium, which featured a three-hour deep dive into the best practices for operational efficiency. Benji Richards, the NHLA Industry Services Sales Manager, hosted the Symposium.

Day 1

The 2023 NHLA Annual Convention officially kicked off later Wednesday afternoon when Cascade Hardwood sponsored the welcome reception. As attendees sharpened their networking skills, they enjoyed delicious food, cocktails, and conversation. Many took the opportunity to catch up with industry friends, while others made new connections. There was a vibe in the air, that unique vibe you can only get at the NHLA Annual Convention; things were hopping, and everyone was raring to go.

“

Eric Traupe

Together we are unstoppable. When we work together as one cohesive unit, we can achieve greatness." — NHLA Chairman Jon Syre

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Left to Right: Jon Syre, Eric Traupe, Nathan Jeppson, Ted Rossi and Dallin Brooks. D E C E M B E R 2 0 2 3 H A R D W O O D M AT T E R S |

Day 2

ITS Alumni Reception

Mark Harms

The second day of the Convention began on Thursday, October 5, with a packed house for a remarkable Opening Session sponsored by NWH. The Opening Session featured Keynote Speaker Eric Traupe, former CIA Assistant Director and national intelligence leader. Traupe first acknowledged the hardwood industry’s position, saying, “You all have been carrying a heavy load for a long time over the last several years through some pretty turbulent times.” He went on to discuss key geopolitical flashpoints, focusing on the Russia-Ukraine conflict’s implications for energy security and market impacts, including the potential repercussions for the hardwood industry. Traupe also spoke about China’s political and economic landscape, highlighting President Xi Jinping’s consolidation of power, China’s economic struggles, and the implications of its property market crisis. He also touched on the risks of decoupling from China and suggested alternative markets for the hardwood industry, such as India and parts of Africa. A running theme throughout the NHLA Annual Convention was to support the Real American Hardwood Coalition (RAHC). The RAHC needs continued monetary donations to keep promoting the benefits and use of real American hardwood to the consumer. At the Opening Session, NHLA Chairman Jon Syre welcomed attendees by encouraging everyone to donate to RAHC, saying, “Together we are unstoppable. When we work together as one cohesive unit, we can achieve greatness. In supporting the RAHC, I do not doubt that we will continue to thrive and innovate.” NHLA Executive Director Dallin Brooks shared the same message repeatedly as the NHLA Annual Convention continued.

“

The NHLA Annual Convention is the big league for the hardwood industry. So, this is always our biggest show. We focus on it all year; this year has been no exception. We’ve met tons of great people and gotten some great leads." — Exhibitor Jeremy Pitts, Nyle Dry Kilns Left to Right: Garner Robinson, Susan Coulombe and Jon Syre

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After the Opening Session, people from all industry sectors gathered together for the event many had been waiting for: the opening of the Exhibit Showcase. After the ribbon cutting, everyone was allowed to enter the Exhibit Showcase for the first time, and what an Exhibit Showcase it was! Exhibitors pulled out all the stops this year with putting greens, fantastic and unique giveaways, outstanding booth setups, and live demonstrations. The Exhibit Hall was the place to be throughout the Convention with Bloody Mary Bars, Coffee Stations, Beer Booths, complimentary breakfast and lunch buffets, and more! Exhibitor Jeremy Pitts with Nyle Dry Kilns extolled how fantastic the NHLA Annual Convention was, saying, “The NHLA Annual Convention is the big league for the hardwood industry. So, this is always our biggest show. We focus on it all year; this year has been no exception. We’ve met tons of great people and gotten some great leads. I think everyone in my lead folder on my computer is here, so it’s like a who’s-who of everyone in Hardwood. Another thing I love about the NHLA Convention is you’re always doing fun, outside-ofthe-box things for our receptions and stuff like that. So, thanks for what you guys do, giving us something fun and making great memories for all of us.” Two Education Sessions were held on Thursday—The first was the “2024 Guide to Hardwood Trends, Forecasts, and Insights (Part 1)”, sponsored by A.W. Stiles Contractors, Inc. NHLA Executive Director Dallin Brooks moderated a panel of three experts that included Sally Augustin, Ph.D., Principal at Design with Science; Mark Harms, Global Marketing Director at Sherman Williams; and Kenn Busch, founder of Material Intelligence LLC and Climate Positive NOW. W W W. N H L A .C O M

Each panelist discussed the constantly changing role of wood in construction and design. Sally Augustine focused on the connection between neuroscience and design, highlighting the growing knowledge and application of biophilic design principles, which underscore the value of wood in enhancing the well-being and brain power of people surrounded by nature. She sees an upward trend in the interest and research surrounding wood, linking it with health and environmental benefits. Mark Harms from Sherwin Williams explored current trends in wood finishes, discussing how color, texture, and environmental considerations shape consumer preferences and the furniture industry as a whole. He noted a shift towards organic textures, matte finishes, and eco-friendly materials, reflecting a broader trend in sustainability and aesthetic appeal in wood products. Ken Bush addressed the challenges of communicating the value and sustainability of wood to architects and designers. He emphasized the need for compelling storytelling and education to change misconceptions and promote wood as a desirable, sustainable material. Together, the panelists painted a broad picture of the current trends and future potential of wood in design, highlighting both the opportunities and challenges faced by the industry. The second Education Session was “From Automation to Ale, Exploring AI Over Drinks.” Garner Robinson, CEO of Robinson Lumber Company (and the sponsor of the Ed Session), moderated a panel of professionals who spoke of the effects of AI and technology on the hardwood industry. Panelists included Susan Coulombe, D E C E M B E R 2 0 2 3 H A R D W O O D M AT T E R S |

Left to Right: Tom Oiler, Paul Miller, and Burt Craig

Jeremy Pitts General Manager of JD Irving Limited; John Green, Operations Engineer with Middle Tennessee; and Jon Syre, CEO & Rick Barrett, Sales Manager of Cascade Hardwood LLC. After grabbing a drink, the audience settled in to learn from the panelists how technology has solved business challenges and improved their operations. Cascade solved their rising log costs with CT scanning technology to achieve the highest profit from each log. Middle Tennessee Lumber had been struggling with its old tilt hoist, a problem that technology solved with a new tilt hoist using automation, which resulted in them saving money and increasing efficiency. Finally, JD Irving Limited solved workforce turnover by implementing AI and robotics in their mills, significantly improving efficiency. After the Ed Session, every Convention attendee was invited to tour Robinson Lumber to see their new Combi-Lift CSS (Container Slip-sheet), specifically designed for fast-loading freight containers in under 6 minutes. It was an incredible presentation on futuristic technology entering the hardwood lumber space. In the spirit of making the Annual Convention even better, there were three Thursday afternoon networking events. The NHLA Inspector Training School Alumni reception, Sponsored by Cole Hardwood, was filled with School graduates reminiscing and learning the latest news from the School. Meanwhile, the Exhibitor Appreciation Reception was just down the hall, where exhibiting companies were shown appreciation for supporting the NHLA and the Convention. The “Bluegrass, Bourbon, & Banter” reception wrapped up the busy day, sponsored by NWH. Guests enjoyed an evening of tasting Kentucky’s finest bourbon while enjoying music from the Bourbon

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Revival Band. People made their way through six different bourbon stations, with professionals offering samples and education on each bourbon. In addition to the bourbon samples, there was also an open bar and many delicious appetizers. The networking during the reception was buzzing, with people exchanging business cards all night.

Day 3

The third and final day of the Annual Convention featured the General Session, sponsored by PLM. The session included the recognition of milestone NHLA members, a State of the Association presentation, elections for the board of directors, a vote on Bylaws changes, and a presentation from Mike Snow, the Executive Director of AHEC (American Hardwood Export Council). Jordan McIlvaine, with Alan McIlvaine Company, officially retired from the Board of Directors. McIlvaine served on the Communications and Marketing Committee and the Convention Committee. Board members elected for a second term included Bill Courtney with Classic American Hardwoods, Greg Fitzpatrick with Fitzpatrick and Weller, Inc., Tom Coble with Hartzell Hardwoods, Inc., and Trent Yoder with Yoder Lumber Company. W W W. N H L A .C O M

The member companies also voted on several proposed changes to the NHLA bylaws that were needed to align with the new Strategic Plan. After a lively discussion, NHLA member companies voted on the new bylaws, and they all passed. Keynote speaker Mike Snow with AHEC wrapped up the session with a lively presentation on the European Union’s Deforestation Regulation (EUDR) certification systems. Snow invited guest speakers, including Phil Guillery, Rupert Oliver, and the AHEC global directors. He received a lot of questions from the audience and ended with an enormous round of applause. The penultimate Education Session, sponsored by Delta ERC, focused on “Personal Investing 101.” Speaker Eric Lynn’s presentation offered an in-depth analysis of investment strategies and market dynamics. Lynn delved into the concept that ‘Cash is not King,’ explaining the pitfalls of sitting on cash and not investing it. Lynn also discussed the global investment landscape, recommending a diversified portfolio that includes both U.S. and international equities. He provided historical data to show how market dominance shifts over time, underscoring the behavioral aspects of investing, specifically during market downturns. Lynn stressed the importance of staying disciplined and not making hasty decisions based on short-term market fluctuations. The 2023 Annual NHLA Convention ended in style with a Grand Finale party at the Kentucky Derby Museum. Attendees celebrated three days of making new connections and bolstering existing relationships with cocktails and hors d’oeuvres before being seated for a delicious dinner followed by dancing to music performed by the Bourbon Revival Band. Granite Valley and MO PAC Lumber Company sponsored the party. As always, The NHLA Convention provided an excellent opportunity to reconnect with colleagues, network with current and prospective clients, and gain valuable insights from peers, speakers, and presenters.

SAVE THE DATE October 2-4, 2024 St. Louis, Missouri

PICK A BOOTH

2024 Exhibit Booths Now on Sale Visit nhla.com/convention W W W. N H L A .C O M

D E C E M B E R 2 0 2 3 H A R D W O O D M AT T E R S |

RULES CORNER

The Impact of Thickness Measurements By DANA SPESSERT, Chief Inspector

llow me to tell you a story from when I was a Quality Control Manager at a previous job. This story revolves around thickness measurements at the seven hardwood sawmills the company operated in my division. We began by measuring thicknesses and recording the results in a database. We measured 3 points along the edge of five boards at each machine center between every saw change. I would be untruthful if I said we did this every time, but that was the goal. The mills eventually began relying on these measurements, and things started to happen. 1.

The planning mill began complaining about the extra load of chips that they were getting each week.

We began reducing the target thicknesses at each machine because they had confidence in the results, and the thin lumber became a nonissue.

The saw filers began to reduce kerfs and saw plate thicknesses as they were over-engineered due to the unknown results they now had at their disposal.

The consistencies we achieved improved the sawmill yields and positively affected the kiln-dried lumber. As the company also had kilns, we could see less warping and cupping results due to the consistent thicknesses, which improved our grade yields significantly. Hardwood mills are missing a huge opportunity. We over-engineer the lumber to compensate for poor performance (perceived or otherwise) to avoid issues when the answer is to monitor and begin lowering target thicknesses.

The NHLA Grading Rules allow the minimum thicknesses to be 1/16” in up to 7/4 thickness and 1/8” on 8/4 and up thicknesses. This rule can be found in the NHLA Rules Book on page 56 under the heading “Standard Kiln Dried Rule.” If you were to do the math, you would derive that on a 4/4 board that can shrink up to 8%, and the allowance for the kiln-dried shrinkage at 1/16” (0.0625”), and a Standard Deviation of the sawn lumber of 0.030”, you could theoretically cut lumber at 1.0475 as a target and have very few issues. I am not recommending anyone do this; the mills I worked for never reached that number. Studies have shown that by reducing lumber thicknesses or saw kerf by 0.010”, the yield will improve by 1%. So, with the formula illustrated above, the yield would increase by approximately 7.5%. Who would not want to improve their yields? Yields increase value and production. The arguments I always hear revolve around the idea that customers accept the over-thickness but want and need a consistent thickness. I caution the readers not to jump into the deep end without researching and making minor improvements that can (verifiably) be repeated. NHLA has software, experts, and training to help anyone interested in learning more and starting down the road to constant improvement and yield recovery. As always, please send your hardwood lumber grading questions to Dana Spessert at d.spessert@nhla.com or call 901-399-7551.

In the Forest Products Laboratory publication, Drying Hardwood Lumber, studies show the shrinkage of all major hardwood species. The shrinkage chart shows that the maximum shrinkage for plain-sawn lumber is approximately 8% in the radial direction, with most species being closer to 6% in thickness. Quarter-sawn lumber shrinks much more in thickness (tangential), so consult the book for those amounts. The book is available for purchase through NHLA or from the Forest Products Laboratory in Madison, Wisconsin.

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D E C E M B E R 2 0 2 3 H A R D W O O D M AT T E R S |

ITS CALENDAR

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

MAR

Jan. 8-March 1 2024

March 20-22

Inspector Training School 205th Class

Intro to Hardwood Lumber Grading

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

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

Jan. 9-12

Intro to Hardwood Lumber Grading

APR

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

Inspector Training School Online Training Program MODULE 1

Venue: Glenville State University Location: Glenville, WV

Venue: NHLA Headquarters Location: Memphis, TN

Instructor: Mark Depp, National Inspector

April 8-19

Two weeks of hands-on training.

Module 2: Online study Module 3: Three weeks hands-on training and final testing at NHLA headquarters. Instructor: Roman Matyushchenko, ITS Instructor

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AUG August 12-23

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

August 28-30 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 Sept. 9-Nov. 1

Inspector Training School 208th Class

Traditional 8-week hands-on training to achieve a certificate of completion in Hardwood Lumber Inspection. Venue: NHLA Headquarters Location: Memphis, TN Instructor: Roman Matyushchenko, ITS Instructor

NOV November 11-22

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

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NHLA JOB BOARD Here you will find our current job listings. To see more details of the job or to post a job, visit www.nhla.com/resources/careers-center HARDWOOD GREEN LUMBER SALES REPRESENTATIVE

WISCONSIN OR THE UPPER PENINSULA OF MICHIGAN Besse Forest Products Group, headquartered in Gladstone, MI, is one of the leading producers of hardwood lumber, veneer, and plywood in North America, operating four sawmills, a lumber concentration yard, three veneer mills, one plywood plant, and employs over 350 people. They seek a highly motivated and results-oriented Hardwood Green Lumber Sales Representative to join their team. As a Lumber Sales Representative, you will primarily promote and sell their green lumber products, pallet lumber, pallet cut stock, and railroad ties. Other opportunities are in the sale of Industrial Plywood and KD Lumber. Your primary goal will be to develop and maintain strong customer relationships, identify new business opportunities, and achieve sales targets. The position will be in Northern Wisconsin or the Upper Peninsula of Michigan. HOW TO APPLY Send your resume to: atiernan@bessegroup.com

Besse Forest Products Group 933 N 8th St. | Gladstone, MI 49837 906-280-3153

TIMBER BUYER

WILKESBORO, NORTH CAROLINA Church and Church Lumber Company, LLC seeks to hire an experienced Timber Buyer. Extensive knowledge and experience will be required within the following: • Evolve business around cost and profitability within its procurement practices. • Purchasing and maintaining adequate stumpage inventory. • Maintaining solid relationships with timber/land owners.

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• Developing and upholding strong relationships with logging contractors. • Directing foresters in cruising, purchasing, and negotiating timber sales. • Coordinating with sawmill and log yard managers on log grades, yields, and scheduling. • Managing log re-sale program. • Analyzing and providing detailed reporting. HOW TO APPLY Send your resume to: wilma@churchandchurchlumber.com

Church & Church Lumber Company, LLC 863 New Browns Ford Rd. | Wilkesboro, North Carolina 28697 336-973-5700

LUMBER INSPECTOR

COOKEVILLE, TN Hermitage Hardwood Lumber Sales seeks an experienced lumber inspector for their Cookeville, TN, yard. The position will be for grading both green and kiln-dried lumber, as well as supervising a crew. HOW TO APPLY Send your resume to: wesley@hermitagehardwood.com

Hermitage Hardwood Lumber Sales 105 Ridgedale Dr. | Cookeville, TN 38501 931-526-6832

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MARKET TRENDS

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. Quarterly Hardwood Export Totals Asia

Canada

Europe

Latin Am

MENA

Asia (Million BF)

200

www.hardwoodreview.com

150

100

Through the third quarter of 2023, U.S. exports of hardwood lumber were 21% below the 2022 50 pace, with volumes down 15% to Asia, 20% to Latin America, 28% to Canada and 39% to Europe. A 4% increase in Q3 shipments to Asia was wel0 comed—with volumes increasing for a third month in September—but that Q3 gain was more than offset by declines to Europe, Latin America and the Middle East and North Africa (MENA). Likewise, it was encouraging to see that exports to neighboring Canada and Mexico in September were the highest in a year. In the bigger picture, however, the ongoing depression in global demand is deeper and more widespread—by country and species—than any since the Great Recession of 2008-2009. Year-over-year exports through September were down to 17 of the 20 largest global markets. Only Australia (+4%), Portugal (+0.1%) and the UAE (+23%) had increased purchasing through September, but the combined net gain to these countries was less than 2 MMBF for the year. In addition, 2023 exports were down

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100

Other Markets (Million BF)

250

Q1 '22

Q2 '22

Q3 '22

Q4 '22

Q1 '23

Q2 '23

Q3 '23

through September for every species tracked by government data, except Cherry—as were exports of lumber in the catchall “other hardwoods” category. Absent a fourth-quarter turnaround, which is not expected, 2023 will finish as the weakest export year since at least 2011, with roughly 2,250 fewer containers shipping every month this year than last. And, with Europe the poorest performing regional market, the American Hardwood Export Council’s work to find a workable solution to meet the onerous new European import regulations is all the more important.

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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.

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 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23

Index for October, which is published the first week of November.

Cabinets Residential Flrg. Truck Trailer Flrg. Upholst. Furniture Wood Furniture Moulding/Millwork Wood Components Board Road Pallets Railroad Ties Quite Slow

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Slow

Fair/Steady

Good

Quite Good

D E C E M B E R 2 0 2 3 H A R D W O O D M AT T E R S |

www.rta.org

WOOD TIE GRADING MINISERIES: BARK SEAM/FIRE SCAR By Nate Irby, Railway Tie Association (RTA)

Wood ties and timbers used on our nation’s railroad infrastructure support the freight passenger trains and help us thrive as a country. There are over 136,000 miles of track in North America to maintain. This requires considerable effort. Wood tie and timber producers annually bring 18-20 million ties to the marketplace. These ties and timbers are not simply “industrial” products; they are integral pieces of architecture with strength and structural integrity at the forefront of the procurement process. The Railway Tie Association is the membership group representing tie-producing entities and end-users that run railroads on them, which helped keep wood tie markets strong and sustainable since 1919. One of our annual tenants is providing education in our premiere event called the Tie Grading Seminar. This article is a representative snapshot highlight of that prestigious educational offering focusing on knots and holes in wood ties and timbers. Mainline railroad crossties today are generally 7”x9”x8’6” grade 5, predominately oak and hickory, “sleepers” or pieces of wood utilized to hold up rail, anchor in ballast, and have locomotives and railcars roll over the top of them. When it comes to wood tie grading, defects can express themselves in various ways and in a myriad of capacities. Bark seams (and fire scars) are encased in the xylem, and if they are substantial in depth, length, and width, they can drastically reduce wood tie quality.

Bark seams realized in wood ties result from branching while the tree grew. That branching was within close proximity of each other and formed a new tree “trunk” in the process of growing together (see photos). Such encapsulated branching embedded in the wood can be a stress concentration point if the wood product is placed under a load, i.e., trains rolling over ties with bark seams in or near the rail-bearing area. Many railroads offer a specified diameter and depth limitation per tie grade (Mainline Grade, Industrial Grade, or Reject/Cull) for bark seam and fire scar (likewise, most group them together). With the addition of southern yellow pine as an acceptable species for some tie and timber applications, the prevalence of fire scar is exponentially greater as southern pine plantation burning is a common (annual) management/wildlife enhancement practice. Bark seams and fire scars can alter the service life of tie and timber, so they should be scrutinized accordingly in the inspection/ grading process. Limitations for crosstie defects are delineated in the AREMA 30 standards and covered extensively at the RTA annual Tie Grading Seminar. Please visit rta.org for more information on wood ties and timbers, the Tie Grading Seminar, and other offerings RTA provides to our industry. SOURCES: • Railway Supply Institute: https://www.rsiweb.org/data-technical- resources/rail-supply-economic-impact-study/) • Railway Tie Association: https://www.rta.org/why-rta • McConnell and Irby, 2013: https://senr.osu.edu/sites/senr/files/imce/ files/McConnell_forestry/F_85_13.pdf) • American Railway and Engineering Maintenance-of-way Association: https://www.arema.org/AREMA_MBRR/Committees/30.aspx)

Examples of bark seams encased in wood ties that are allocated to the reject bay at the processor.

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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 remain too high for mills to make a decent margin. WAY too much rain - loggers now waiting for ground to freeze. Mills are reducing hours now (3 days/wk.) in hopes of stretching their log supply further into winter months. Hunting season, time change, and holidays all are on the horizon and may slow production more. ATLANTIC West Virginia: Majority of mills in the region are going into winter with low log decks for this time of year with holidays and winter weather coming soon.

MIDSOUTH E Texas, NW Louisiana: The pallet market is hurting mills along with paper mills as I've said before the tie market is holding sawmills up. SOUTHEAST Kentucky, Tennessee: I would estimate 75% of the mills I work with have fewer logs on hand than they would like to have. Alabama, Florida, Georgia: Log supply has increased over the last month Pallet demand had declined. Mississippi: The demand and production remain strong. Warm dry weather is providing ideal logging conditions.

Virginia: Flooring, pallet, and Poplar markets have all slowed. Ties are one of the best products mills have left to saw and make some money on. NEW ENGLAND New England 1: Log prices are too high for mills to pay, and still increasing. Wet conditions and hunting season have or will have most logging stopped until freeze up. Some mills will be temporarily stopping production to gain log inventory. Pennsylvania: Some prices increases in some grades of lumber. Wet weather is slowing logging.

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D E C E M B E R 2 0 2 3 H A R D W O O D M AT T E R S |

www.nwfa.org

For expected demand by type in 2024: National Wood Flooring Association (NWFA) members report in Hardwood Floors magazine’s 2024 Industry Outlook that consumers are demanding longer, wider boards and engineered wood flooring.

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2023-11-08 10:27

D E C E M B E R 2 0 2 3 H A R D W O O D M AT T E R S |

Our industry has stories to tell.

We’re telling them. Contribute Now to Build Your World

The Real American Hardwood Coalition has launched its Build Your World™ campaign in partnership with Magnolia Network. The ads are inspiring a national audience by educating them on the benefits of Real American Hardwood® products. The campaign was made possible thanks to voluntary contributions from the hardwood industry. Your continued support is critical to advance the initiative and reclaim market share for the benefit of all industry stakeholders. Help Build Your World. Learn more about the RAHC’s promotion efforts, see a list of supporters, and make a voluntary, tax-deductible contribution at RealAmericanHardwood.com/industry or scan the QR code.

Real American Hardwood is a registered trademark, and Build Your World is a trademark of the Real American Hardwood Coalition.

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