No. 535 October 2013 WHA Board of Directors

Mike Lipke President

Lee Jimerson Vice President

Kurt Landwehr Treasurer

Darrin Hastings Immediate Past President

Adam Brennan

Nils Dickmann

Jeff Marthaller

John Smith

Lindy Stallard David Sweitzer Secretary/Manager P.O. Box 1095 Camas, WA 98607 Ph: (360) 835-1600 Fax: (360) 835-1910 Web: www.westernhardwood.org Email: wha@westernhardwood.org

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This event will bring together primary producers, secondary producers,

wholesalers, and importers and exporters for the opportunity to establish

relationships and develop future business. Anyone who works with or

supplies goods and services to attending companies will also benefit from

the opportunity to make contact with key people.

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Continued recovery in U.S. home building

markets is critical to the health

of the hardwood industry. We

have commented many times

about the unreliability of

government statistics on

housing activity. The data is

often inflated on initial release and then quietly revised

down in subsequent months. Employment and

unemployment statistics can be equally misleading. The

public and unwary business decision-makers are lured

by an ‘Alice In Wonderland’ picture that obscures the

truth. –excerpted from Hardwood Review Express

Lumber market activity continues to improve say

West Coast hardwood suppliers. One contact in Oregon

said that things are going up across the

board. Another West Coast contact

commented, “The lumber market is strong

in most items. The export business is up

and most material is in short supply right now. Prices

are up to levels we haven’t seen in a long time.

The principle cause of the forest products industry

downsizing over the past two decades is the reduction of

timber coming from our federal forests, plain and

simple. Timber harvest levels in Oregon have been

reduced by half as a result of the efforts of ...the

environmental movement. Nearly all of the reduction

has occurred from federal forest lands. The industry is

half the size it once was. The math is pretty simple. -

excerpted from “Despite timber supplies, future is bright for Oregon

loggers” by Jim Geisinger, Associated Oregon Loggers Read article

* ICE

* FYI

* Outlook

* News in the News

* Legislative Update

* Upcoming Events

* Get Motivated

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The U.S. economy continues to improve, albeit it

slowly. The unemployment rate, which peaked at 10.0

percent in October 2009, is down to 7.3 percent as of

August. GDP growth remains modest at below two

percent over the last four quarters ending in June. The

housing market continues to show positive signs: new

housing starts in the first seven months of 2013

averaged 912,000 (seasonally adjusted annual rate) and

average U.S. housing prices have increased in each of

the last 12 months through June. The U.S. economy

still faces significant challenges. There are still too

many unemployed workers, though some have reentered

the workforce after having left; the financial and

economy crises in Europe are improving, but several

European countries remain in recession; China’s

economy has slowed; and the U.S. government has still

not implemented a coherent, growth-driven economic

policy. -WA DNR September 2013 Economic and Revenue Forecast

While the players remain the same in terms of

heat treated (HT) wooden pallets, presswood, paper or

plastic, the makeup of the export pallet market is

changing. One of those key trends seems to be in the

growth of alternative material pallets versus solid

wooden packaging and pallets for export shipments.

While numerous policy issues confront the forest

sector in the U.S., three main themes emerge as top

priorities: 1)The regulatory environment needs reform,

direction, and stability. Certainty in the regulatory

environment is critical to the sector making necessary

investments to grow; 2) A fair playing field and

meaningful incentives to use forest products in the

growing “green building” movement will allow for

continued success and growth in the sector; and 3)

Relevant Farm Bill provisions and other incentive-based

efforts to reach private landowners need reform and to

be reimagined. –excerpted from Hardwood Review Express

Most wood furniture manufacturing and sizeable

portions of other secondary wood products industries

that supply U.S. markets shifted offshore during the

early 2000s, causing contractions throughout the U.S.

wood products supply chain. The supply chain took an

even larger hit in the late 2000s and early 2010s with the

economic and housing market

downturns. Employment in U.S.

primary and secondary wood

products manufacturing fell 42%

from 731,200 in January 2001 to

422,300 in January 2012,

according to data from the Bureau of Labor Statistics

(BLS). During the same period, the total umber of

manufacturers in these sectors slid 29% from 44,400 to

31,400.

Industry employment has started to rebound over

the last year-and-a-half. Employment fluctuates

monthly, but averaged about 440,500 during the first

seven months of 2013, up from 428,400 during the same

period in 2012.- excerpted from Hardwood Review Express

On the international front, manufactur ing

activity in China and Europe continues to stabilize,

which should bode well for improvements in exports.

The HSBC Flash China Manufacturing PMI rose to its

highest level since March, expanding for the third

straight month. New orders, output and exports picked

up their pace from the previous month, albeit with

modest growth rates and hiring still a challenge.

Elsewhere, the HSBC Flash Eurozone Manufacturing

PMI rose marginally from 51.1 in September to 51.3 in

October. This was the fourth

consecutive monthly expansion

and a sign that the continent has

begun to recover from two

years of recession. On a

country-by-country basis,

however, growth rates differ

sharply. For instance, production has been rising in

Germany, while French manufacturing activity

continues to contract. - excerpted from NAM Monday Economic

Report

Oregon has chosen not to secure

independent certification that timber-cutting practices

in its forests comply with the standards set by the

Forest Stewardship Council and/or the Sustainable

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Forestry Initiative. Tony Andersen with the Oregon

Department of Forestry reports that his agency began

discussing the possibility 12 years ago, and then in

2005 it examined whether to obtain FSC certification

for forest land in the Klamath Lake District,

ultimately deciding not to. The department felt that

certification was too expensive and would not be

sufficiently flexible to meet state mandates for timber

production, among other factors. Andersen says when

the department considered applying for FSC

certification, it cost an estimated $1 an acre, and

independent audits would cost about 20 cents an acre.

"It's just not penciling out at the moment," he notes.

State forests are required under the law to earn money

for the Common School Fund and adjacent counties

through the sale of timber. Such mandates can change

on a yearly basis, and are vulnerable to political

pressures and budget considerations. To date, four

U.S. states have obtained FSC certification, while

eight have dual certification from the FSC and the

Sustainable Forestry Initiative. - Law, Steve,

(9/19/13).”Oregon Decides Not To Certify State Forests”. Portland

Tribune. http://portlandtribune.com/sl/194948-%20oregon-decides-not-

to-certify-state-forests.

Roseburg Forest Products announced today that

it will be making capital expenditures at the Dillard, OR

sawmill that will allow it to utilize a broader range of

fiber in its manufacturing process. The raw materials

targeted for the project will be small diameter logs, or

“whips and tops” as they are also called in the business.

A new study by Chuck Ray of Penn State

University et al. (to be published in the February 2014

issue of the journal Renewable Energy)¹, compares the

potential for converting fossil-fuel boilers to woody

biomass in 37 eastern states. While the rapidly

expanding bioenergy industry is not yet dinner-table

conversation for most hardwood folks, it is generating

Upcoming Meetings

November 20, 2013 Workshop: Energy Reductions Using Lean Thinking Princeton, WV Email: quesada@vt.edu

November 21, 2013 Volcanic Forest Soils of the Pacific Northwest Coeur d’Alene, ID Email: richard@westernforestry.org

December 2013 (date TBD) WHA Board Meeting Portland, OR Email: wha@westernhardwood.org

December 3, 2013 Markets, Methods, & Innovations Driving PNW Timber Production Vancouver, WA Email: richard@westernforestry.org

December 18, 2013 Washington Hardwoods Commission Meeting Olympia, WA Email: w hc@wahardwoodscom m .com

January 17-21,2014 Western Pallet Association Annual Meeting Rancho Mirage, CA Email: wpa@westernpallet.org

January 23, 2014 Mapping the Course Vancouver, WA Email: richard@westernforestry.org

February 4 -5, 2014 How to Use Skyline XL & LogCost/Haul Spreadsheets Grand Mound, WA Email: richard@westernforestry.org

February 11 -12, 2014 How to Use Skyline XL & LogCost/Haul Spreadsheets Redding, CA Email: richard@westernforestry.org

Have upcoming event or company news? Let us know and we’ll help you get the word out, both here and on our website. Drop us a line and let us know!

plenty of discussion throughout the broader forest

products industry—especially within the procurement

areas of new or proposed pellet plants and cogeneration

facilities. The advent of new markets for thinnings and

mill and log residues can increase financial returns for

landowners, mills and loggers and provide the funding

to conduct much-needed but otherwise uneconomical

forest management activities. Bioenergy also appears

to have significant carbon advantages over the fossil

fuel energy it replaces. –excerpted from Hardwood Review

Express

¹Ray, Charles D., Li Ma, Thomas Wilson, Daniel Wilson, Lew

McCreery, Janice Wiedenbek. “Biomass boiler conversion potential in

the eastern United States.” Renewable Energy Volume 62 (2014): p

439-453.

A new calculator can be used to estimate the

amount of biomass materials

available on forest lands. A

biomass calculator is

designed to help determine

the amount of wood biomass

available for potential

biofuel development. The tool also helps determine the

viability of bringing in a biofuel facility, according to

Luke Rogers, a University of Washington research

scientist and engineer. It will indicate, too, that the U.S.

Forest Service needs to step up forest health efforts if

they are to have an impact.

After multiple pulp and paper mills have closed

in recent years, in western Montana, the forest

products industry is looking alive. Three businesses

partnered in Bonner, Montana, earlier this year with

local forest landowners and logging companies to

produce wood chips—a boost to the local economy and

creating more jobs in the area.

One of the partners, Willis Enterprises, runs a half

dozen chip mills in the Pacific Northwest using

hardwood and softwood. Richard Lane, Willis

Enterprises’ log buyer, said that when Smurfit-Stone

closed in 2010, it left a gap in western Montana's

market for timber known as pulp wood. He explained

that these small diameter logs that you find in the

understory of a forest that aren’t utilized as sawlogs

were pushed into a pile and burned. They simply went

to waste.

Environmental activists held a public meeting in

Roseburg, Oregon this month as part of their effort to

block any solution to restore balanced, active

management to Western Oregon’s O&C lands.

The groups showcased a report, authored by Ernie

Niemi and sponsored by the Pacific Rivers Council, that

claims our rural communities don’t need the jobs and

economic activity that would result from putting more

people back to work in the woods.

However, a recent review of this report

commissioned by the Association of O&C Counties

found numerous flaws and a clear bias toward keeping

policies that have impoverished rural communities and

made our forests more vulnerable to fire, insects and

disease.

On October 17th, Oregon Federal

District Court Judge Panner issued an order which

immediately lifted suspensions of federal timber

contacts nationwide.

On October 11th, the House voted 223-189 to

direct negotiations to begin with the Senate to develop a

new five-year Farm Bill. The Senate passed

their version of the Farm Bill in June. After

failing to secure sufficient votes to pass its

Farm Bill, the House split it into two parts

and passed them separately in July and

September. While the Farm Bill is best

known for programs that provide support for crop

subsidies, food stamps and other Agricultural related

issues, there are a number of important forestry

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provisions in play in both versions. Some of the key

provisions include:

Both the House and Senate versions would

reauthorize stewardship contracting authority for

the Forest Service and BLM, The Senate would

make it permanent, the House for five years.

The house bill would allow all states to use the

Good Neighbor Authority to provide the Forest

Service the ability to work with states to accomplish

important forest health work on the National Forest

System.

The House bill would direct the Forest Service to

designate critical areas with deteriorating forest

health conditions and extend Healthy Forest

Restoration Act (HFRA) authorities. A new 10,000

acre Categorical Exclusion (CE) would be created

to expedite forest management projects in these

areas. The Senate bill does not include a CE, but

includes a more limited expansion of HFRA

authorities to treat insect and disease infestations.

The House bill would expand the use of designation

by description and designation by prescription on

all timber sales, not just stewardship contracts.

The House bill would also ensure that approved

projects using CE’s are not subject to administrative

appeals.

It also incudes a legislative fix to the Ninth Circuit’s

decision that forest roads are point sources of

pollution under the Clean Water Act.

The U.S. House approved HR 1526 - the

Restoring Healthy Forests for Healthy Communities

Act - on a bipartisan vote. Considered the most

significant piece of forest legislation to be passed in

years, HR 1526 is considered a

big step toward restoring the

health of our forests and

communities. Following

another summer of

catastrophic forest fires,

momentum is growing for

solutions that restore forest health while putting people

back to work in our federal forests. Many Americans

depend on this renewable resource for their livelihoods

and the bill shows that Congress is serious about

addressing environment and economic issues that are

plaguing the forests. The bill was also supported by

NEA which represents approximately three million

educators across America. They also urged House

members to approve HR 1526 and restore economic

opportunities and education funding in rural

communities.

What to do when you are

in a goal-scoring SLUMP!

By Ryan Walter

The game of hockey, by its competitive nature, is

far from linear, much like the game of life. Ups and

downs, the elation of scoring and the disappointment of

defeat, injuries, wins, and losses all play out on

hockey’s amazing sheet of ice. Since life is not a linear

journey on our way to perfection, then we should expect

to have the odd goal scoring slump. The question then

is... how should we best respond?

I actually enjoy watching people go through

prolonged scoring slumps or

tough times. It’s not that I like

to see people suffer rather, I

make a habit of watching the

best-of-the-best go through the

slump because I am keenly

interested in understanding the process that puts them

back on track. Here are some great examples of famous

people worthy of our attention:

Michael Jordan was cut from his high school

basketball team.

Walt Disney was once fired from a newspaper for

lacking ideas. In addition, his first cartoon

production company went bankrupt.

The great I Love Lucy comedian, Lucille Ball was

told that she had no talent and should leave the

drama school she was attending.

Actor Dustin Hoffman worked as a janitor and a

hospital attendant after failing his first attempt at

acting in New York.

Bob Dylan was booed off the stage at his high

school talent show.

Dr. Seuss wanted to burn the manuscript of his first

book after 27 publishers rejected it. We are all

thankful that he did not!

Due to his average grades, Steven Spielberg was not

accepted to UCLA film school.

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Steve Jobs was fired from Apple at age thirty.

Oprah Winfrey was reportedly once told she wasn’t

fit for television and was fired as a news anchor.

Goal-scoring slumps or small failures are always

accompanied by fundamental shifts in 3 specific

areas:

- Our focus

- Our expectations

- Our physiology

Athletes going into slumps make the critical

mistake of increasing their focus on outcomes and

away from the process that gives them their desired

outcome.

“Oh, oh, I haven’t scored in 12 games.”

“Not again, my sales are down this quarter.”

Once our daily focus gets firmly placed on outcome

thinking it becomes very difficult for athletes as well as

non-athletes to get unstuck. This is where expectations

combined with change of focus really pile on the non-

productive pressure.

“I can’t believe that I only have 3 goals in the past

20 games.”

“Why isn’t there enough money at the end of the

month?”

Our undisciplined minds love to ruminate on and

feed the poor me mindset. “I can’t believe that this is

happening to me.” “I wonder what my coach is going to

do?” “I wonder if my boss is going to fire me?”

Change of focus and unmet expectations amazingly

create an actual change in the physiology (the science

that deals with the ways that living things function) of

an athlete. I have heard many hockey experts say, “He’s

gripping the stick,” during my 50 years around our great

game of hockey. Of course, they are using a metaphor

to explain the physical change (tightness of body) that

accelerates when athletes choose the wrong mental

focus.

I played for the Montreal Canadiens in the early

80’s when there was a personal and cultural high

expectation for me to score goals and generate offense.

Before learning these and other important mental skills,

I remember that during a long slump I gripped the stick

so hard, I lost control of the puck on a breakaway and

ended up in the corner.

Let’s move on now to the important part. How

do we help players create positive change through a

difficult time? We start by adjusting our focus.

It is imperative to re-focus on small controllable

parts of the process rather than positive or negative

outcomes. We need to turn our focus back to the things

we can control (shooting pucks after practice, not

missing the net while shooting in practice), and deflect

thoughts, as they come into our minds, which try to

redirect our focus toward underachieved outcomes.

Secondly, we need to re-adjust our expectations

from outcome to process. Develop smaller goals that,

when achieved, will help you score goals again. For

example, “In tonight’s game, I expect to get 4 shots on

net. In today’s practice, I expect to never miss the net.”

Better process creates a better outcome. Build

expectations into your process; do not focus them on

your end result.

NCAA Basketball coach John Wooden put it

well, “I never worry about winning or losing

(outcomes); I focus a lot on practicing the details

(process) that give us the win.”

Finally, relax and project the right posture. Find

ways to have fun with teammates on the ice or outside

of the game. Have you noticed how our body language

changes during slumps? Our shoulders shrug, our face

crumples, we give off a feeling of "non-confidence."

Eric Jaffe suggests that science would tell us to

change our physiology in order to change our

psychology.

"Modern science has confirmed the wisdom of this

perception time and again. People feel happier when

their facial muscles are positioned into a smile. And

they feel sadder when they're made to hunch over. And,

sure enough, they feel a surge of power when their

chests and arms are expanded — so much so that their

testosterone levels increase. The expression of power

indeed intensifies the emotion, all the way down to its

physiological roots."

Players at their best, in the ZONE, are relaxed,

having fun, with a confident body language... focussed

in the moment.

Slumps result from a change in our thinking.

We pull out of slumps by re-adjusting our

thinking and enjoying our process.

Changed thinking + changed posture = a great

week! - Ryan Walter, www.ryanwalter.com

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