Jan-Feb Hardwood Matters

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H A R DWO O D M AT T E R S T H E VO I C E O F T H E H A R DWOO D I N D U ST RY

THE U.S. ECONOMY IS POISED FOR OPTIMISTIC GROWTH T H E O F F I C I A L P U B L I C AT I O N O F T H E N AT I O N A L H A R D W O O D L U M B E R A S S O C I AT I O N S T R O N G R O O T S . G L O B A L R E A C H . | W W W. N H L A . C O M

Providing Quality, Service and Forest Stewardship to the Hardwood Lumber Industry

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P.O. Box 247 Akron, Indiana 46910 Sales@PikeLumber.com www.PikeLumber.com

(800) 356-4554 (574) 893-4511 (574) 893-7400 fax

DEPARTMENTS 1 2 14 16 1 8

Education Spotlight Legislative Log Rules Corner Foundation Focus

READER SERVICES 4 President’s Message 6 CEO’s Message 7 In Memoriam 8 Inside NHLA 19 Job Board 20 Calendar

10 Photo Courtesy of AHEC

IN THIS ISSUE 10

THE U.S. ECONOMY IS POISED FOR OPTIMISTIC GROWTH

CONTENTS W W W. N H L A .CO M

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H A R D W O O D M AT T E R S T H E VO I C E O F T H E H A R DWO O D I N D U ST RY

THE MISSION OF NH LA To serve NHLA Members engaged in the commerce of North American hardwood lumber by: maintaining order, structure and ethics in the changing global hardwood marketplace; providing unique member services;

January/February 2015 ▪ Issue 153 National Hardwood Lumber Association PO Box 34518 ▪ Memphis, TN 38184-0518 901-377-1818 ▪ 901-382-6419 (fax) info@nhla.com ▪ www.nhla.com

EXECUTIVE COMMITTEE

MISSION LEADERS

Pem Jenkins Turn Bull Lumber Co. President

Skip Holmes Thomas & Proetz Lumber Co. Unique Services

Brent Stief Huron Forest Products Vice President

Darwin Murray McClain Forest Products Structure

Scott Heidler Heidler Hardwood Lumber Co. Past President 2012-2014

Charlie Netterville Fred Netterville Lumber Co. Membership & Networking

promoting North American hardwood lumber and

Mark Barford, CAE Chief Executive Officer

Jack Shannon J.T. Shannon Lumber Co. Industry Advocacy & Promotion

advocating the interest of the hardwood community

NHLA STAFF

Gary Swaner Swaner Hardwood Co. Rules

in public/private policy issues; and providing a platform for networking opportunities.

Mark A. Barford, CAE Chief Executive Officer m.barford@nhla.com Kristina Bran Digital Media Manager k.bran@nhla.com Melissa Ellis Graphic Designer m.ellis@nhla.com Renee Hornsby Director of Communications/Editor r.hornsby@nhla.com

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

Rich Hascher Inspector Training School Instructor John Hester Director of Membership

ADVERTISER INDEX 3 DMSi

Dana Spessert Chief Inspector

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Pennsylvania & Indiana Lumbermens Mutual Insurance Companies

13 Froedge Machine & Supply Company, Inc.

IFC

Pike Lumber Company, Inc.

IBC

The Jacobs Team

BC

NHLA Annual Convention

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TradeLanes, Inc.

20

NYLE Systems, Inc.

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UC Coatings Corporation

15

Dunavant Global Logistics Group

Denise Stewart Director of Administration

COMMITTEE CHAIRS Dave Bramlage Cole Hardwood Membership Dan Caldwell Atlanta Hardwood Corporation Hardwood Advocacy Jim Reader Downes & Reader Hardwood Continuing Education/ Member Services Orn Gudmundsson Jr. Northland Corporation Communications & Marketing Scott Heidler Heidler Hardwood Lumber Co. Nominating Darwin Murray McClain Forest Products Finance Bucky Pescaglia Missouri-Pacific Lumber Co., Inc. Inspector Training School Joe Snyder Fitzpatrick & Weller, Inc. Rules Brent Stief Huron Forest Products Strategic Planning Stephanie VanDystadt DV Hardwoods Convention

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J A N / F E B 2 0 1 5 H A R D W O O D M AT T E R S

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PRESIDENT’S MESSAGE

NHLA IS STRONGER AND GETTING STRONGER Happy New Year! As we begin the New Year the hardwood lumber market feels like it is in a much different place than it was at this time last year. Many members had a solid year in 2014 and pricing in most species went up. Your Association completed the year with a budget surplus and added to the reserves. 2014 was a good year. What will 2015 bring?

In the ten days of 2015 the S&P 500 has fallen approximately 4 percent, risen 4 percent and as of this writing has fallen 2 percent all in the span of a week. Crude oil has dropped from over $100 per barrel to under $50 per barrel in six months. Media reports indicate that growth in China is the slowest in fifteen years. Is the stock market telling us that 2015 will be bumpy? - Yes. Is it telling us we will have a recession? – No. Will crude oil prices reduce demand for industrial products going to the oil fields? - Who knows? Will the growth in the US economy be strong enough to support a robust housing market and increase demand for flooring oak and give producers a good year? Will sawmills out produce the market?

Maybe. I do not have the answer to these questions. The reports that I read indicate that 2015 will be OK, not great. The same reports indicate that 2016 will be considerably better.

What I do know about 2015 is that NHLA is strong and getting stronger. Mark Barford and his staff are working tirelessly every day on our behalf to make sure that NHLA is fulfilling the board’s vision to be the “Global Standard for Hardwood Trade and Commerce”. Mark and his staff are also working to achieve the board’s mission “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.” Several examples of these efforts are the ongoing work for KD Certificates and certification to replace Phytosanitary certificates for shipments to many parts of the world, conducting a members tour to China this summer and by having a “progressive” inspection training class that allows students to come to the School for two weeks, go home and study remotely via the computer for several weeks and then return to the School for a final two week session. The staff is also already at work preparing for the 2015 Convention in Nashville which is arguably one of the premier networking venues for hardwood lumber men and women in the United States. All of these efforts are being pursued with the vision and mission in mind. With hard work and good communication I predict that NHLA will finish 2015 with another strong year.

Mark Barford and his staff are working tirelessly every day on our behalf to make sure that NHLA is fulfilling the board’s vision to be the “Global Standard for Hardwood Trade and Commerce”.

Thanks again for the privilege of serving your Association!

Sincerely,

Pem Jenkins, NHLA President Turn Bull Lumber Company

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CEO’S MESSAGE

NEW PROJECT HIGHLIGHTS 2015 NHLA TRAVELS TO CHINA During the NHLA fall board meeting, the board endorsed a new benefit of membership project– a Cultural Tour of China to be held June 20 – July 1.

The trip will cover three major urban areas: Guangzhou, Nanning and Shanghai and will be limited to 35 people. Marco Chan, CEO of AMAsia Corporation will lead the excursion, along with NHLA staff including China based employee John Wang. Marco led an extended two-day seminar in 2013 entitled “Doing Business in China” and was a speaker at the 2014 Las Vegas convention last year. He has a background with development of the FedEx China market.

Two important parts of the trip include participation in the AHEC Southeast Asia and Greater China Convention in Nanning and the SYLVA Wood tradeshow in Shanghai.

NHLA is partnering with AHEC on these events and will work closely with the staff to coordinate a worthwhile trip for NHLA members. The trip is aimed at those NHLA members who have never or rarely travelled to China, but is open to all members of the Association on a first come basis. Information about costs and registration will be available at www.nhla.com or by contacting John Hester, Director of Membership at 901-399-7558. Below is a tentative schedule and a partial list of activities.

Saturday, June 20: The NHLA delegation members arrive in Hong Kong and NHLA will host an evening reception and tour kick-off meeting.

Sunday, June 21: NHLA delegation will board a charter bus from Hong Kong hotel and travel to Guangzhou.

The delegation will check-in to the hotel in Guangzhou with no formal activities planned.

Monday, June 22: Delegates will travel by bus to nearby lumber merchandising market for meeting with several NHLA members present in the market and a general tour of the area. Bus will return late afternoon to the hotel with no formal activities planned.

Tuesday, June 23: Several activities around Guangzhou City area will be planned, followed by an AHEC hosted evening reception with U.S. trade representatives.

Wednesday, June 24 –Friday, June 26: Delegates will travel by air as a group to Nanning on Wednesday to attend the AHEC Southeast Asia & Greater China Convention. Several activities are planned including seminars, receptions and dinners. The AHEC convention brings together buyers, sellers, association leaders and government officials involved in the trade of American hardwoods.

Saturday, June 27: Delegates will travel by air from Nanning to Shanghai.

Sunday, June 28: Cultural day in Shanghai Monday, June 29 – Wednesday, July 1: Delegates will attend an AHEC hosted evening reception on Monday and the Sylva Wood Show Monday through Wednesday. Companies are encouraged to take a booth inside the AHEC American Hardwood Pavilion. NHLA will host a wrap-up dinner and discussion of the trip for delegates on Tuesday evening.

Wednesday July 1: Sylva Wood Show ends with delegates departing from Shanghai back to the states on their own schedule. The formal tour ends.

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Two important parts of the trip include participation in the AHEC Southeast Asia and Greater China Convention in Nanning and the SYLVA Wood tradeshow in Shanghai.

We look forward to a very successful member service, and plan to look at other countries in the future including Mexico, SE Asia and Europe.

Mark Barford, CAE, Chief Executive Officer 901-377-1082 direct | m.barford@nhla.com

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MEMORIALS

David W. Richardson, Sr 82, of Sheboygan Falls, passed away on Sunday, November 9, 2014, at his cabin at Post Lake in Elcho, Wisconsin David was born on June 26, 1932, in Sheboygan, son of Joseph and Evelyn (Hayden) Richardson. He was a 1950 graduate of Sheboygan Falls High School and earned his Bachelor’s degree in English Literature from UW-Madison. In 1954, he married Jane Cooper. In 1992, he married Lynda Ramaker in Fort Lauderdale. David was co-owner of Richardson Industries.

David was a founding member of the Lake States Lumber Association (LSLA) and a contributor to the Sharon S. Richardson Community Hospice. He was a musician and lover of jazz. David enjoyed flying, boating, building model airplanes, woodworking, reading, and was a collector of antique cars and boats.

One of David’s greatest accomplishments and honors was being a pilot. Over the span of sixty years he logged almost 8,000 hours in the air. He was a member of Aircraft Owners Pilots Association (AOPA), EAA, Seaplane Pilots Association, and most recently the UFO (United Flying Octogenarians), having flown the last time at the age of 80. His second love was boating, no matter what the size or the year of the boat. He traveled the Great Circle Waterway and completed it three times. David’s love for the outdoors showed through in every venture. He loved spending time “up-north” at his cabin on Post Lake.

He lived life his way and it was a life worth living.

David was preceded in death by his parents and his twin brother and best friend, Charles Richardson, Sr. A memorial fund has been established in David’s name for the Animal Resource Center of Sheboygan and Bookworm Gardens.

For online condolences and additional information please visit www.wenigfuneralhome.com W W W. N H L A .CO M

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David is survived by his wife of 22 years, Lynda; two daughters, Elizabeth Richardson and Holly Richardson, both of Sheboygan Falls; two sons, David (Fiancée Wendy Jeske) of Sheboygan Falls and Robert (Rachel) Richardson of Sheboygan; two step –daughters, Barbara (John) Techel of Elkhart Lake and Paula (Kevin) Hirschmann of Plymouth; one step-son, Keith (Tammy) Pipping of Sheboygan; ten grandchildren, Benjamin (Charmaine) Richardson, Clint (Joy) Johnson, Jennifer Richardson, Carolyn Mauer, Anthony Richardson, Sarah (Chris) Folsom, Melissa Richardson, David Richardson III, Robert Richardson Jr. and Ryan Richardson; four step-grandchildren, Krysta and Shaunna Hirschmann, Dean Beck, and Sara Pipping; eight great-grandchildren; and one brother, Joseph (Betty) Richardson II.

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INSIDE NHLA

NHLA BOARD MEMBER AWARDED FORESTRY LEGACY AWARD Missouri forestry producer, Darwin Murray was recognized by Director of Agriculture Richard Fordyce at the 45th Missouri Governor’s Conference on Agriculture with the 2014 Missouri Forestry Legacy Award; recognizing him for leadership in Missouri’s forestry industry.

“At the Department, we are constantly reminded of the forestry industry’s $5.7 billion impact in Missouri,” said Director Fordyce, “Whether by a phone call from international buyers interested in buying a container of high-quality wood for furniture or a local winemaker looking to build a Missouri-grown wine barrel. Forestry is alive and well in Missouri, and we’re glad to honor Darwin for his contributions to that success.”

Murray, president of McClain Forest Products and Legacy Wood Products, Pictured from left to right: Richard Fordyce, Missouri leads one of Missouri’s Director of Agriculture; Darwin Murray, President, largest forest products McClain Forest Products and Judy Grundler, Division companies. The companies Director of Missouri Department of Agriculture’s Plant primarily produce kiln dried Industries lumber for domestic and international shipment, and also manufacture hardwood flooring at two different facilities in the Ozarks. Murray’s companies employ more than 150 people in small Ozark communities.

Active in both state and local advocacy, Murray works tirelessly to promote sustainable and responsible management of Missouri’s forests. He is chairman of the Missouri Forest Products Association’s Forest Health Committee through which he represents the industry in the promotion of sound forest management practices that ensure the long-term health and sustainability of the state’s forests. Murray is on the board of the National Hardwood Lumber Association, serves on committees of the National Wood Flooring Association and is very involved with the Hardwood Federation

NHLA CHIEF INSPECTOR TRAVELS SOUTHEAST ASIA In late December, NHLA Chief Inspector Dana Spessert, travelled to South East Asia to speak at two seminars sponsored and organized by the American Hardwood Export Council (AHEC).

The first seminar was held in Ho Chi Minh City, Vietnam on December 4, at the new GEM Convention Center. The GEM Convention Center is a true testament to the beauty of North American hardwoods as it is decorated entirely in North American Ash. The seminar was well attended with approximately 110 designers, architects, distributors and manufacturers. Questions from the audience about grades and species indicate that the awareness and interest in American hardwoods is growing.

Mr. Spessert then travelled from Vietnam to southern China to join NHLA representative, John Wang and NHLA Inspector, Roman Matyushchenko for a Lumber Grading Short Course held at Tianrun headquarters.

The last stop on the Southeast Asia trip was at the Taipei Building Show in Taipei, Taiwan. While in Taipei, another Lumber Grading Seminar was conducted for local designers, architects and traders. The seminar was sponsored and organized by Southeast Asia/Greater China AHEC Director John Chan. The seminar attracted a solid crowd with approximately 70 attendees.

NEW YEAR, NEW BUYERS GUIDE

Production of the 2015 Buyers Guide is underway. Visit www.nhla.com and click “MEMBER AREA” located in the upper right hand side of the homepage. You will be prompted to login with your username and password. Once you are logged in you can make any necessary changes or updates to your company profile. Please note, ONLY the primary contact has access to change the company information. Should you need to make changes to the primary contact please contact Julia Ganey, Member Relations at 901-399-7556 or by email at j.ganey@nhla.com.

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WELCOME NEW MEMBERS APRIL - DECEMBER 2014 ACTIVE MEMBER WITH ANNUAL SALES LESS THAN $5 MILLION

Dong Guan Lianchuen Commerical and Trading Co. – Daling Shan Town, China

Mahild Drying Technologies GmbH – Nurtingen, Germany

Cameron Lumber, LLP – Homer City, Pennsylvania

Hung Hoang – Ho Chi Minh, Vietnam

Marathon Solutions, Inc. – Overland Park, Kansas

Jiuhe Wood Co., Ltd. – Shanghai, China

Concannon Lumber Company – Portland, Oregon

Ju Niu Chair Hangzhou – Jiande, China Langfang Huari Furniture Share Co., Ltd. – Langfang, China

Hidden Sawmill – Fredericktown, Ohio I K World Trading Co. Ltd. – Toronto, Canada

Ningbo Huamao International Trading Co., Ltd. – Ningbo, China

Mason’s Mill and Lumber Co. – Houston, Texas

Ningbo Shiding Import & Export Co. Ltd. – Ningbo, China

Phillips Forest Products, LLC – DeKalb, Texas

Shanghai J & Crown Forest Products, Ltd. – Shanghai, China

Red Bluff Interests, Inc. – Houston, Texas ACTIVE MEMBER WITH ANNUAL SALES BETWEEN $5 -$20 MILLION

SUSTAINING MEMBER Ally Global Logistics LLC – Scituate, Massachusetts

R.Booe & Son Hardwoods, Inc. – Center Point, Indiana

Arca World Logistics, LLC – Charlotte, North Carolina

ACTIVE MEMBER WITH ANNUAL SALES OVER $40 MILLION Weaber, Inc. – Lebanon, Pennsylvania

Eberl North America, LLC – Leola, Pennsylvania

PARTNER MEMBER

Industrial Appraisal Company – Pittsburgh, Pennsylvania

Crowley Hardwoods – Ennis, Ireland

Laufer Group International – Kansas City, Missouri

System TM A/S – Odder, Denmark Wagner Meters – Rogue River, Oregon ASSOCIATE MEMBER Acme Pallet, Inc. – Holland, Michigan CG Universal Wood, S.A. DE C.V. – Guadalajara, Mexico Oakbridge Timber Framing – Loudonville, Ohio Saint Raymond Veneers – St. Raymond, Canada Shanghai Jihe International Trade Co., Ltd. – Shanghai, China INSPECTOR MEMBER Scott Bowe – Madison, Wisconsin Lawrence Mann – New Albany, Mississippi Norman E. Murray – East Amherst, New York If you know a company that could benefit from membership in NHLA please contact John Hester, Director of Membership at 901-399-7558 or j.hester@nhla.com.

HARDWOOD CHECKOFF COMMITTEE APPLAUDS USDA DECISION TO MOVE FORWARD The Hardwood Checkoff, an idea which has been under review and debate for nearly five years, has been given a “green light” for further action at the United States Department of Agriculture. The proposed program was published in the Federal Register in November of 2013, opening an extensive public comment period which drew input from hundreds in the hardwood industry. Nearly every hardwood association also featured Checkoff panels at meetings throughout last year to discuss the proposal and answer questions relating to how the program would work.

this Committee ever dreamed the process would take this long, we are pleased that so many have been given a say and brought improvements along the way. USDA has listened, and we are pleased that they remain committed to continuing the pursuit of a Hardwood Checkoff.”

News of USDA’s decision came via a request to the Hardwood Committee to commit to funding the agency’s work on the Hardwood Checkoff for another year.

According to Jamey French, CEO of Northland Forest Products and Outreach Co-chairman for the Hardwood Checkoff Committee, “It is hard to imagine an idea which has been given as much deliberation, discussion and analysis in the hardwood industry. While none of us who joined

“We anticipate the next step to be publication of a revised proposal and we hope to see many of the improvements suggested during the comment period” said Jim Howard, CEO of Atlanta Hardwood and Co-Chairman of the Hardwood Checkoff Committee. “Our Committee believes this will bring us closer to the up-or-down referendum vote required to put a Checkoff program in place and we

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are confident a majority of the industry will join in support. We will continue to reach out to those who have suggestions for changes in the details of the proposal and believe we can find common ground. Certainly we all agree that promotion, research and education programs need to be at the forefront if our industry is to grow and thrive.”

The Hardwood Committee is comprised of leaders of US hardwood companies who have volunteered time and resources to develop and work towards final passage of a Hardwood Checkoff program. Checkoff programs are funded by industry, run by voluntary industry boards, and aimed at expanding markets for commodity products. Checkoffs are in place for over 25 commodities including softwood, paper, cotton, and propane - many having shown demonstrated success for decades. www.hardwoodcheckoff.com J A N / F E B 2 0 1 5 H A R D W O O D M AT T E R S

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THE U.S. ECONOMY IS POISED FOR OPTIMISTIC GROWTH

As the New Year unfolds, the view of the economic outlook appears to be mixed.

S

IX YEARS SINCE ITS FINANCIAL SYSTEM NEARLY sank and nearly that long since the recession ended, the United States is expected to grow in 2015 at its fastest pace in a decade. Its expansion from July through September — a 5 percent annual rate — was the swiftest for any quarter since 2003. Plunging oil prices will save the average U.S. household $550 on gas next year, according to the U.S. Energy Information Administration. That means more money to spend on other big-ticket items. And fortunes are looking up for more households as Americans’ debt, as a percentage of income, has dropped to 2002 levels.

slight negative for growth” in the near term.

But the New Year doesn’t look quite so bright in other major countries.

In some ways, the U.S. economy actually benefits from slower growth abroad. Investors in search of safety have plowed money into Treasurys, thereby helping hold down inflation and U.S loan rates, including for mortgages. Lower rates, in turn, could fuel more home sales and construction next year.

China is slowing as it transitions from investment to consumption. Japan has slid into a recession. Russia appears headed for one. Europe is barely growing. Lower economic growth in Europe and Japan in particular, “certainly is a weight on U.S. economic growth,” said Gus Faucher, a senior economist with PNC Financial Services Group. “Trade has roughly been a net positive for growth over the past year or so, but I think trade is going to be a

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The U.S. has a lot going for it at the moment, Faucher said.

“The fundamentals in U.S. domestic demand are pretty strong, and pushing down oil prices has been a big positive for U.S.” However, he said, “That’s still not going to offset the drag from weak global growth.”

The growth of the US economy and appreciation of the dollar could benefit the hardwood industry domestically but cause friction with international exports.

A boost in home sales and construction could provide vast opportunities for the hardwood industry domestically including an increase in jobs.

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The gap between the United States and the rest of the world reflects a fundamental trait of the American economy: It’s more insulated from the rest of the world’s ups and downs than other major economies.

RECAP OF HARDWOOD EXPORTS 2014: U.S. hardwood lumber exports set records for volume and value so far this year, in October 2014 reaching at 154 million board feet and $219 million. Volume was up 9% from the prior month and 8% ahead of October 2013. Ash and Hickory exports set one-month records in October, and it was the second strongest month ever for Red Oak exports.

Year-to-date export volume was up 14% through October and will easily set a record for the year. Export value was up 28% through October to $1.97 billion, surpassing the 2013 full-year record of $1.86 billion.

U.S. hardwood log exports were 42% higher this October than last—the fourth straight month in which shipments were at least 40% higher than the same month one year earlier—and year-todate shipments were 32% ahead of last year’s pace. In December, shipments to Europe and Latin American slowed for the holidays, while most Asian markets remained fairly active. Importantly, buyers throughout the world, especially Europe, said the U.S. dollar’s rise against most currencies has started to have bigger impacts on demand than in prior months. Labor disputes at ports on the U.S. West Coast forced some U.S. exporters to use Canadian ports.

According to an AP Economic article, swirling global headwinds might hamper what could otherwise be a very strong U.S. economic recovery. The gap between the United States and the rest of the world reflects a fundamental trait of the American economy: It’s more insulated from the rest of the world’s ups and downs than other major economies. Exports account for just 14 percent of U.S. output, the smallest share among the 34 mostly rich members of the Organization for Economic Cooperation and Development.

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The concern is less that other major economies are stuck in the doldrums will bring the U.S. into recession with them, but that they will hamper what could otherwise be a very strong U.S. economic recovery.

Faster growth will likely lead the Federal Reserve to raise interest rates in 2015, which could draw more investment from overseas.

The inflow of capital would raise the dollar’s value and potentially cause destabilizing drops in other currencies. Governments and businesses overseas that borrowed in dollars would find it harder to repay those debts.

And of course there are those who warn that continued low prices at the pump will eventually hurt the industry that has been the most consistent producer of well-paid-low-skilled jobs.

Despite the mixed feelings and unknowns of long-term cheap gas and slowing global markets, it does appear that the U.S. economic outlook for 2015 is at minimum that of optimistic growth.

(Endnotes) 1. Can the U.S. Boom While the World Busts? By Rob Garver, The Fiscal Times - January 6, 2015 2. U.S. Hardwood Export Pinched by Dollar's Rise, Port Strikes By Andy Johnson Woodworking Network - December 31, 2014

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Education Spotlight

NHLA GRADUATES THE 175TH CLASS OF THE INSPECTOR TRAINING SCHOOL Commencement exercises for the 175th class of the NHLA Inspector Training School were held on Friday, November 21, 2014 with twenty-four students completing the program. Ryan Wolfe, graduate of the 155th class, delivered the graduation address to a capacity filled room. As keynote speaker, Wolfe spoke about the impact the School has on the future of its students.

“The Inspector Training School is a great foundation for where you want to go. Rich Hascher, the School’s long-time instructor, has done more to shape the industry than anyone or anything.

You will automatically get respect when people learn that you graduated from the School.” said Wolfe.

Wolfe went on to explain the imprint each student can make on the industry. “One of the proudest moments of my life was graduating from the School. It’s one of the hardest things I have ever had to do. The lumber under your feet, the mark you put on each board, is your name so make sure it’s a good name. That lumber and your name are going around the country and now, more and more, around the world.”

Class president, Mason Thomas, also addressed the class to thank them for the fond memories and friendships made throughout the twelve-week course.

Graduates were:

n Jason W. Abendschein of New London, Wisconsin – Granite Valley

Forest Products n Jonathan Burks of Marlinton, West Virginia – ITL Corp. n Dalton M. Carver of Morehead, Kentucky – Harold White Lumber, Inc.

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n Jake Cherry of Reelsville, Indiana – C. C. Cook & Son Lumber

CO., Inc. n Carlo Dulce of Rome, Italy n Tyler Dubre of Summer Shade, Kentucky – James Ritter Lumber Co., Inc. n James T. Fancett of Saint Johns, Michigan – Maple Rapids Lumber Mill, Inc. n Garrett Hemman of Frohna, Missouri – East Perry Lumber Co. n Garrett House of Van Buren, Missouri – McClain Forest Products, LLC n Joseph N. Hobbs of Piketon, Ohio – Ohio Valley Veneer, Inc. n Kevin Mancl of Marathon City, Wisconsin – Granite Valley Forest Products n Graham X. Martter of Bowling Green, Kentucky – The Woodworks n Ryan J. McCommon of Middleton, Tennessee n Robert McConnell of Huntland, Tennessee – Thompson Appalachian Hardwoods n Bryan Milton of Dover, Tennessee – Milton Lumber Co., Inc. n Thad Moseley of Linden, Alabama – Linden Lumber Company, Ltd. n Brandon E. Norris of Ashland, Alabama – Wellborn Cabinet, Inc. n Dalton Peacock of Winona, Mississippi – Winona Hardwood n Todd John Perry, Jr. of Summer Shade, Kentucky – James Ritter Lumber Co., Inc. n Asael C. Reyes of Desoto, Texas – Sitco Lumber Company n Jared C. Rotramel of Marion, Illinois n Mason Thomas of Arrington, Virginia – Turman Tye River, LLC n Adam T. Thornburgh of Linden, Alabama – Linden Limber Co., Ltd n Trevon D. Wise of Arrington, Virginia – Turman Tye River, LLC

Enrollment is now open for Block 1 of the Progressive Program, which begins April 6, 2015. To enroll or learn more about the program please visit www.inspectortrainingschool.com.

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LEGISLATIVE LOG

A LOOK BEHIND; A LOOK AHEAD

By Dana Cole, Executive Director Hardwood Federation

Congress returned to Washington D.C. on January 5 from their 2014 holiday break. The House and the Senate are now both operating under Republican leadership and many eyes are closely watching to see if promises of “regular order” and “bipartisan compromise” are fulfilled by the new management.

sis (FIA) program. This figure exceeds what our industry was seeking and is good news. FIA is critical in ensuring an up to date snapshot of what is happening in our forests so that public policy affecting forests and forest users is based on the best, most current data on current growing stocks.

Before leaving for the December break, Congress did pass legislation funding the government through September 2015, a move that many doubted would happen. There is one small caveat, the Department of Homeland Security is only funded through Feb. 27, 2015 allowing the new Congress to deal with immigration issues that no one wanted to touch as 2014 came to an end. It is anticipated that this department budget will be hotly debated during the first two months of 2015. No one seems sure what the outcome will be, but you can be sure it will be closely watched.

Lacey Act Funding: Increased funding for Lacey Act compliance measures was also included in the budget bill. The Department of the Interior received a total of $66.7 million, up $2.5 million from the previous year, for the Office of Law Enforcement. These dollars are designated for increased efforts to combat illegal wildlife trafficking and natural resources trade as well as for three (3) additional agents in the Fish and Wildlife Service’s Special Investigations Unit and enforcement of Lacey Act illegal logging violations. APHIS has plans to add additional regulatory and compliance specialists in 2015. They have also launched the on-line Lacey Act Web Governance System (LAWGS) which should facilitate reporting measures required under the law.

There was something for everyone to love and everyone to hate in the final budget deal that made its way to the White House for the President’s signature in the closing days of the old year. The Hardwood industry seems to have come out on the positive side of the agreement as it includes several measures that benefit our industry, including: Export Program Funding: Full funding for the Market Access Program (MAP) and Foreign Market Development (FMD) Program for 2015. These programs are administered by AHEC to support the export of U.S. hardwood timber and products.

Northern Long Eared Bat (NLEB): Although the Northern Long Eared Bat (NLEB) is not mentioned specifically in the budget agreement, there are several references to White Nose Syndrome (WNS) and efforts to curb or eliminate this disease which has been so devastating to multiple bat populations. The Interior Appropriations section of the bill contains $3 million for WNS surveillance and monitoring. WNS research funding remained level at $2.5 million for FY 2015. Within the ecosystems portion of the U.S. Geological Survey portion of this bill, $1.05 million is allotted for “white nose syndrome in bats.” The Interior Appropriations bill also directed the Forest Service to make significant investments in research and development and to prioritize research related to WNS in bats.

Forest Inventory and Analysis (FIA): Interior Appropriations includes $70 million to fund the Forest Inventory and Analy-

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Federal Forest Management: Interior Appropriations language directs the Forest Service to examine ways to improve the management of the stressors impacting forests and the development of markets to offset the increasing costs of federal forest management. While not the strong language and detailed direction we would have preferred, it is a step in the right direction. In addition, Senator Roy Blunt inserted report language into the omnibus that recommends that no funds be used in specific portions of the Mark Twain National Forest until more analysis is done regarding the effectiveness of these programs in maintaining and increasing the quantity of marketable timber on the land. Both actions strongly indicate that forest management issues are moving up on the priority list.

Wildfire Funding: Although the budget agreement did not separate wildfire suppression funds from the Forest Service budget, a fix that the forestry and forest products industry was trying to secure, this was one of the last measures removed from the agreement and proponents, including the Hardwood Federation, are already looking forward to pushing this issue forward in 2015.

Tax Extenders: While not part of the budget agreement, a package of expired business tax provisions, commonly referred to as Tax Extenders, were retroactively extended for the 2014

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LEGISLATIVE LOG

business year. The legislation includes extensions of several priorities for Hardwood Federation members including bonus depreciation and enhanced Section 179 expensing.

Bonus depreciation will allow businesses to immediately expense an extra 50% of the cost of qualifying property, such as equipment and computer software, instead of depreciating the value over time. The enhanced Section 179 expensing provision will extend higher limits and phase out thresholds for property used for business purposes. Businesses will be able to expense as much as $500,000 in property with the extension. The deduction will phase out when a business’s total cost of qualifying assets exceed $2 million.

And for those of you that bought a wood or pellet stove this year to heat your home, be sure to file for the $300 tax credit on those purchases. As part of the extenders package, the “non-business energy property” credit was renewed and includes this $300 stocking stuffer. It isn’t much, but it’s something.

shelf life. The tax extenders will once again expire as of January 1, 2015. The Hardwood Federation will work with other business trade organizations in the 114th Congress to extend these provisions which offer predictability in the tax code for both large and small business.

2014 ended with a flurry of activity, most of it positive. 2015 is off to a fast start. At least for the first several months, the Hardwood Federation will be focused on how the U.S. Fish and Wildlife Service will address the status of the Northern Long Eared Bat and what impacts that decision will have on the forest products industry. We will also be looking at a host of additional issues, including federal forest management, energy efficiency, a potential repeal of the Waters of the U.S. rule and an increasing focus on comprehensive tax code reform. It is a big list but we are ready to take it on!

Thank you for your support in 2014 and we look forward to working with you on a productive and successful 2015!

While the legislation will prevent an immediate tax increase on companies that use these provisions, the victory has a very short

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17

RULES CORNER

WHAT'S NEW WITH THE NHLA RULES

By Dana Spessert, NHLA Chief Inspector The new NHLA Rules Book has recently been printed and distributed to the NHLA membership. In this month’s article I will give a brief description of the changes that are in the 2015 version.

Note: There was a misprint under Cypress Rules for the grade of No. 1 Common: The last sentence “Grade same as No. 1 common except admits: unlimited diameter sound or (unsound knots), pith knots and slight peck.” This sentence should be under the No. 2 Common grade and it is not part of the No. 1 Common grading rules.

1. Inside front cover statement for mistranslations there is added: “In the event of a translation difference, the English version shall supersede.”

2. Miscut Lumber Rule on page 5 paragraph 9, has been changed to: Rough lumber shall be categorized for Standard Thickness by the measurement taken at the thinnest cutting used in establishing the grade. If there is a greater variation in thickness over the entire length of the piece than shown in the following table, the board shall be classed miscut.

• 3/8”, 1/2”, 5/8”, and 3/4” minus 0” / plus 3/16” • 4/4 and 5/4 minus 0” / plus 1/4” • 6/4 and 7/4 minus 0” / plus 3/8” • 8/4, 10/4 and 12/4 minus 0” / plus 1/2” • 14/4 to 24/4 minus 0” / plus 5/8”

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3. Measurement & Tally on page 7, paragraph 16, the use of the End Tally was added: Note: End Tally refers to the method of board footage measurement where lumber is tallied on a 12 Ft. basis as described in paragraph 21 except all width measurements are taken from the ends of boards after the lumber has been stacked in bundles.

It is recognized that there will be some minor differences in end tally measurement from “board measure” method.

In cases of footage dispute caused by the use of both measurement methods, the footage as determined by “board measure” will supersede.

4. To determine the amount of Side Bend on page 12, paragraph 41 was removed. The paragraphs were not renumbered as to not change the paragraph references elsewhere in the Rules Book.

5. Special Combined & Face Grades were moved to page 22 immediately after the grading chart and prior to the beginning of the “Standard Grades By Species” section.

7. The species of Aspen on page 33, was removed from

6. Walnut & Butternut species were moved to page 28; the FAS grade has been separated into two sections for FAS: Standard, except – for the 8’ and longer and FAS (6’ & 7’ long only): no changes were made to the grades, this was done for clarity.

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RULES CORNER

the previous grouping of “Sap Gum, Cottonwood, Black Gum, Tupelo, Magnolia, Willow & Aspen (Popple)”, the change was made because stain is not allowed in the clear face cuttings of the grades of FAS, F1F, Selects and 1 Common in Aspen.

8. Pacific Coast Red Alder beginning on page 35, had numerous changes in the restructure of the rules for clarification as well as the addition of the grade of “KNOTTY ALDER: PREMIUM/RUSTIC/CHARACTER (GRADE):” on page 37.

9. Cypress beginning on page 41, contains several changes: a. Moisture Contents added on page 42, paragraph 12. b. Standard Thicknesses added on page 42, paragraph 13. c. Warp & Cup added on page 43, paragraph 15. d. Selects & Better – page 49 under “Defects which can be substituted for 1 medium knot” i. Removed: “Fine shake (Par. 64”) equal to the width of the board” ii. Removed: “3 Medium Surface Checks – 1 medium surface check is 4” – 10” long and 1/32” wide” iii. Added: “Season checks that can be removed by surfacing to ¼” under standard thickness shall be admitted.” e. No. 1 Common - page 50 i. Added: Admits any number of the following or equivalent: checks not extending through the piece and not impairing the strength of the piece, stain, slight peck, and pin worm holes. ii. Added: Will admit split equal to the width of board in the aggregate. iii. Removed: Shake that does not go through, stain, splits that do not exceed the width of the board in inches.

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f. No. 2 Common – page 50: i. Removed: Grade same as No. 1 common except admits: unlimited diameter sound or (unsound knots), pith knots, slight peck, shake and checks.” ii. Added: Grade same as No. 1 common except admits: unlimited diameter sound or (unsound knots), pith knots and slight peck. iii. Added: Checks not extending through the piece shall be admitted without limit providing they do not impair the strength of the piece. iv. Added: Shake is limited to one face only and no more than 10% of the length of the piece in the aggregate.

There were other minor changes made for clarity, if anyone has any questions please contact me at d.spessert@nhla.com or 901-399-7551. The 2015 English edition is now available for purchase through the store on the NHLA website at www.nhla. com. The 2015 NHLA Rules Book is currently being translated into Chinese, French, Spanish and Vietnamese. These translated versions will be available soon.

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FOUNDATION FOCUS

NEW YEAR, NEW GOALS FOUNDATION SEEKS ANOTHER RECORED YEAR With a new year comes new goals…and the Foundation’s number one goal is to surpass a record year in the number of children reached through its educational programs, specifically its Truth About Trees initiative.

“The Foundation’s message potentially reached more than 400,000 children in 2014, so the bar is higher than ever in terms of outreach…and with that comes a higher bar for fundraising,” said Crystal Oldham, Foundation Executive Director.

“Truth About Trees kit distributions are at an all-time high. This is the result of many things, including winning a Bronze Telly Award for the video version of the program, a nomination for a Tennessee Governor’s Environmental Stewardship Award, the work of our Emmy Nominated Spokesperson Tommy MacDonald, countless industry partnerships and a passionate drive from a Board of Directors like no other,” Oldham added.

to return to the Earth naturally through the rotting process, all of the carbon it has taken in throughout its lifetime is released back into the atmosphere. Well…that…and when you hold up a roll of toilet paper and ask them if they’ve used a tree product that day,” Oldham said.

Simplicity and truth. That’s what the Foundation is working hard to provide inside classrooms across North America- spoonfed, readymade, award winning curriculum that provides a modernized education promoting the truth about harvesting and the forest products industry.

Beyond the Truth About Trees curriculum is another ‘truth.’ The Foundation can’t do it without you. It is funded 100 percent on donations made from the forest products industry. And the rapid growth that 2014 brought created a need for funds now, more than ever.

All contributions are 100 percent tax deductible. To donate, log onto www.hardwoodforest.org or simply mail a check to: Hardwood Forest Foundation PO Box 34518 • Memphis, TN 38184

In a world where the reputation of the forest products industry is anything but positive, the Foundation’s message is hitting hard, backed by science and for the first time ever, being validated by a study released by Yale University.

“The misperception about our industry has been abundant for far too long and through our experience in classrooms across North America, educators are open to learning the truth because it is supported with science…not emotion. The ‘light comes on’ when you simply tell folks that if you leave a tree in the forest 20

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JOB BOARD

* To view current job postings or to post a job, visit www.nhla.com/jobboard.

Lumber Inspector

Sawyer

Gutchess Hardwoods is seeking a Lumber Inspector. We offer competitive pay and a superior benefits package. If you share our vision of excellence, we invite you to join our winning team!

Gutchess Lumber is seeking a Sawyer. Saws logs for maximum value recovery by following daily cutting orders and achieving proper levels of yield. Accountable for proper operation of the carriage, feed works and log turner; checks lumber thickness at saw; and conducts a daily physical inspection of all equipment.

The Lumber Inspector inspects incoming and outgoing lumber according to NHLA rules at the assigned grading deck and to saw list requirements.

The qualified candidate will have a High School diploma or higher education with experience providing skills suitable for this position, with NHLA grading rules training.

The Lumber Inspector will visually inspect lumber according to species, grade, and dimension using NHLA lumber grading rules to inspect the lumber.

The qualified candidate will have two or more years of experience.

To apply email: jlortiz@gutchess.com Gutchess Lumber | 607-428-8097 (fax) | www.gutchess.com 10699 Maple Grove Road | Freedom, NY 14065 Assistant Sawmill Manager Gutchess Lumber desires a highly motivated and driven Assistant Sawmill Manager who is results oriented with experience in supervision and production management. The individual needs to have a manufacturing background and experience dealing with process improvement driven by employee involvement. Candidate should demonstrate leadership/management/administrative skills and have success in a primary wood manufacturing environment.

To apply email: jlortiz@gutchess.com Gutchess Hardwoods | www.gutchess.com 724-537-6447 | 607-428-8097 (fax) 185 Devereux Road | Latrobe, PA 15650 Export Sales Bingaman and Son Lumber is searching for an export salesperson. The ideal candidate would have all of the following skills and experience: A willingness and ability to sell hardwood products overseas along with the knowledge and experience of hardwood lumber grading rules, and hardwood characteristics (for example, having the ability to identify individual species, etc.) An ability to work with the necessary technology for overseas communication such as the use of computers, cell phones, e-mails, voice mails and Skype. The ideal candidate would have a sales back ground, and a college degree in international business/marketing. This person will be able to drive, climb, walk, lift, bend, and twist (with a 30 pound board) in order to handle forestry requirements and mill opportunities. They should be willing and able to spend time in other company facilities and willing to develop working relationships with Bingaman production teams, customers and others throughout the hardwood industry. They will have the ability to use commercial airlines for travel, though most of their work time will be in an office setting. (Overseas travel is required with an estimate of 5 to 6 trips a year with each trip being 7 to 12 days). They will have good listening, communication, and writing skills. They would have knowledge of at least one foreign language, and a genuine interest and acceptance of different cultures. They will have a good work ethic, being a team player, self-starter and hard worker. As an overview; this export salesperson will work with our Export Sales staff to sell all of our products to specific markets overseas. These products include logs, kiln dried lumber, strips and glued products in a variety of North American species, grades, and thicknesses. This job needs a readiness to travel and eagerness to observe/check the quality of our shipments at our customer’s facility. This job is done best when the person projects an objective, professional, and flexible attitude in every situation.

For consideration and/or an application please send your resume to: Mike Worrell, PO Box 247, Kreamer PA. 17833. FAX 570-374-0799 or email mworrell@bingamanlumber.com.

For an online application, please find one at http://bingamanlumber.com

Responsibilities include: proper log/cant breakdown; proper edging/trimming decisions; zero downtime on all machine centers; start-up completed before the shift starts; develop personnel to minimize overtime; insure all safety procedures are followed; completely train each person to his or her maximum potential; develop team attitude; perform quarterly evaluations.

To apply visit: http://glc.applicantstack.com/x/openings Gutchess Lumber | www.gutchess.com 10699 Maple Grove Road | Freedom, NY 14065 Lumber Inspector Lindsay Hardwoods, a family owned grade hardwood sawmill established in 1976, is seeking a hardwood lumber inspector. Lindsay Hardwoods primarily cuts Red Oak, White Oak and Poplar.

The position offers excellent pay and benefits and is located in a small southern town with two colleges and great schools.

To apply contact Eric Lindsay at 434-392-8615 or email lindsayhardwoods@gmail.com or send resume via mail.

Lindsay Hardwoods, Inc. | 434-392-8615 | 434-392-8615 (fax) P.O. Box 343 | Farmville, VA 23901 Lumber Inspector AHC Clarksdale has an immediate opening for an experienced lumber inspector. Competitive salary, 40K and health insurance is offered. To apply send resume to kbergeron@hardwoodweb.com AHC Clarksville | 931-472-0389 ext 17 | 931-472-0391 (fax) 310 Dover Rd. | Clarksville, TN 37042

Bingaman and Son Lumber | 570-374-1108 | 570-374-0799 (fax) 1195 Creek Mountain Rd | PO Box 247 | Kreamer, PA 17833 W W W. N H L A .CO M

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CALENDAR

WH ERE IN THE WOR LD IS N H LA?

Kentucky Forest Industries Association 50th Annual Meeting

Lake States Lumber Association Winter Meeting Green Bay, WI | January 15-16 Attending: John Hester, Director of Membership

Lexington, KY | March 25-27 Attending: John Hester, Director of Membership

NHLA Board Meeting

Napa Valley, CA | April 22-24 The Meritage Resort

Hardwood Federation Board Meeting Washington, DC | February 9-10 Attending: Mark Barford, CAE, CEO

NWFA 2015 Wood Flooring Expo & 30th Anniversary

Canadian Hardwood Bureau Annual Meeting Montreal, Quebec | February 16-18 Attending: Dana Spessert, Chief Inspector

St. Louis, MO | April 28-May 1 Participating: John Hester, Director of Membership Renee Hornsby, Director of Communications

Penn-York Lumbermen's Club Monthly Meeting

EDUCATION & TRAIN I NG

Ellicottville, NY | February 24 Attending: Mark Barford, CAE, CEO

176th Class NHLA Inspector Training School

Memphis, TN | January 7 – March 26 | NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com

2015 AHMI Annual Meeting

Bonita Springs, FL | February 25-March 1 Attending: Mark Barford, CAE, CEO

2015 IHLA Convention & Exposition

Progressive Inspector Training School Program: Block 1

March 10–12 | Indianapolis, IN | Indianapolis Marriott Downtown Attending: John Hester, Director of Membership

Hardwood Manufacturers Association National Conference & Expo Nashville, TN | March 25-27 Attending: Mark Barford, CAE, CEO

Memphis, TN | April 6 -18 | NHLA Headquarters Instructor: Rich Hascher, NHLA ITS Instructor Contact: Becky Miller | 901-399-7569 | b.miller@nhla.com

INDUSTRY EVENTS Montreal Wood Convention

February 17– 19 | Montreal, Canada | Fairmont The Queen Elizabeth Visit www.nhla.com/calendar for more updates.

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