No. 533 August 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: [email protected]
WHA
Grade School
Sherwood, OR
October 17-18, 2013
2
The Economic Impact of Privately-Owned Forest
in the United States report reveals forest owners
support 2.4 million jobs, $87 billion in payroll, $223
billion in sales an 5.7 percent of all U.S. manufacturing.
“Europe’s economy starts to grow...the recession
has ended”; “Auto sales back to pre-crisis levels—
housing recovery helps”; “Corn prices fall
sharply...cheap corn means fat wallets for consumers.”
What does all this have to do with hardwood
production? Everything! It does not mean a magical
growing housing recovery. This means that people are
spending more on things they want, like a new(er) house
or upgrades to their existing home—and that means
hardwood products being produced for installation.
“Wood product pricing should be solid for the next
two years or so due to (1) improving domestic housing
market and export, (2) demand for wood products
outstrips supply as previous production cutbacks catch
up with demand, and (3) structural
products (framing lumber, OSB, plywood), and
hardwood based products like furniture, kitchen
cabinets, flooring, all benefit from residential
construction including new construction plus
remodeling. -VA Tech Monthly Housing Report, June
2013.
Hardwood production in 2013 started out slowly
and picked up in late spring. The summer production
appears to be about the same as 2012, but the positive
market components should accelerate sales and
production during the remainder of the year. YTD
hardwood production is still running at about 80% of
2007’s peak production and by year end should be
closer to 85%. -Norm Murray, U*C Coatings Corp.
Canadian hardwood lumber production
gradually increased from 780 MMBF in 2003 to 868
MMBF in 2006. With single-family detached
housing starts at record levels of around 120,000 per
year and remodeling expenditures rising about 10%
per year, manufacturers of hardwood flooring and other
secondary products steadily expanded production and
lumber purchases. Canadian hardwood exports were
* Grade School
* FYI
* Outlook
* News in the News
* Legislative Update
* Upcoming Events
* Get Motivated
In This Issue:
Jo in WHA First time membership is $150 the first year and for a limited time, $150 for the second year also.
The WHA is the only organization dedicated exclusively to the availability and promotion of Western Hardwoods. Membership benefits include: online membership directory listing one free newsletter ad company profile in newsletter our monthly email newsletter important industry updates by email a free banner ad on WHA’s website cost effective newsletter advertising networking at the Annual Meeting discounts on Association meeting registration
Joining is quick and easy. Use the online membership application and simply pay by credit card, www.westernhardwood.org.
Find us on Facebook!
also strong during much of that period.
In 2007 domestic and overseas demand remained
solid, but production slid to 788 MMBF on plummeting
exports to the U.S., where housing markets had started
to collapse. As the U.S. housing recession worsened
and spread to Canada, production plunged to 664
MMBF in 2008 and 517 MMBF in 2009. Production
rebounded in to 646 MMBF in 2010, according to
StatsCan. Much improved Canadian home building, a
24% increase in exports to the U.S.—albeit from a much
smaller base—and stronger Asian demand all
contributed to the turnaround.
Production fell 3% to 623 MMBF in 2011—as U.S.
demand turned back down and European markets
continued to contract—and another 12% to 550 MMBF
in 2012. Production was up 8% year-to-date through
April 2013, however, and will total nearly 600 MMBF
for the year if growth remains at 8%. –excerpted from
Hardwood Review Express
U.S. hardwood lumber exports in the second
quarter of 2013 shattered the
prior quarterly record by 8.6%,
continuing the steady growth in
exports we’ve seen since global
markets bottomed out in the first
quarter of 2009. June shipments
were lower than April or May
due to typical seasonal
slowdowns, but all three months
were the highest on record for those particular months—
as were January and February. Compared to the first six
months of 2012, U.S. exports in 2013 were up 7.5% to
717 MMBF. In a normal year, second-half exports
traditionally fall short of first-half volumes by 7-8%. In
growth years like the last three, however, the second-
half dip averages less than 3%. If that pattern holds
again in 2013, total exports for the year will exceed
1.41BBF.
On the West Coast, contacts have noted that
supply conditions have improved, emphasizing kiln-
dried availability. One Washington
source adds that harvesting conditions
for the loggers in that region have
improved with the drier weather.
“We’re heavy into the export market
and we’ve been selling a lot into those markets,” he
said. Regarding transportation and trucking availability,
he shared that transportation has improved greatly in the
last few weeks and they have been able to get what they
need to move what they need to move.
A source in Oregon said his markets are ‘status quo’
and they haven’t seen much change in the
last few weeks although the market has
flattened out a bit in the last couple of
weeks., Most species seem to be selling
and they were not having any availability issues.
For Quebec, sawmill production saw its regular
slowdown in July as the construction
industry took its break. Demand for kiln-
dried and green birch is keeping pace
with production, with higher prices being
noted for enhanced lengths and color
characteristics.
According to contacts in Ontario, demand for
hardwoods is favorable due to the
industrial markets being healthy, along
with export volumes to China and Asia
also picking up again following a spring
slump. The rise in residential
construction in the U.S. is also assisting
sales of Canadian hardwoods.
What’s ahead for 2013? The balance of 2013 will
be characterized by slightly improved hardwood
demand. On the supply side, we estimate that U.S.
hardwood lumber production will increase in 2013 to
9.08 BBF, about 4% higher than last year, and that
hardwood lumber imports will grow to 280 MMBF. –excerpted from Hardwood Review Express
Housing markets continue to improve, but not as
rapidly as some headlines suggest: domestic demand for
hardwood lumber will probably grow at a slower pace
during the second half of the year than during the first
half; Chinese demand should resume its climb in the
fall, exports to Europe should improve slightly in the
3
4
fourth quarter; and production will track more loosely
with demand over the next two months before supply
tightens back up.
From the Rockies to the West Coast, improving
distribution yard markets, increasing demand from
cabinet plants, and expanding sales of rustic moulding
and millwork make the near-term outlook for alder quite
good. Distributors in the eastern U.S. could also see
more demand for alder, but they may have difficulty
procuring more volume. Following a relatively weak
January, U.S. alder exports from February through May
2013 were 16% above the same period last year. Alder
shipments to China—which now account for nearly
75% of alder exports—should keep growing through the
summer as buyers try to avoid potential shortages later
on. Relatively high prices for some alder items haven’t
significantly impacted demand yet, but could if prices
go much higher. If not, all grades of alder should move
well from Superior down to Frame for the foreseeable
future.
With industrial markets hot, most sawmills will
continue to convert beech logs into pallet cants, railroad
ties, board road and crane mats rather than grade
lumber. Production and demand for beech grade lumber
will be very limited. -excerpted from Hardwood Review Express
The U.S. trade deficit plummeted to its lowest
level since October 2009, down from $44.1 billion in
May to $34.2 billion in June. Goods exports recorded
an all-time high, providing some encouragement that
global demand might be picking up. If so, this would be
welcome news for manufacturers, with many
experiencing disappointingly slow growth in exports so
far this year. Manufactured goods exports have been up
just 1.7 percent in the first six months of 2013 relative
to the same tie period in 2012. This suggests a
deceleration from the 15.8 percent and 5.7 percent
growth rates for the past two years, respectively. -Monday
Economic Report, National Assoc. of Manufacturers.
Federal wildlife officials plan to dispatch hunter s
into forests of the Pacific Northwest, beginning with the
Hoopa Valley Indian Reservation this
fall, to shoot one species of owl to
protect another facing extinction.
The U.S. Fish and Wildlife Service
released a final environmental review
of an experiment to see if killing
barred owls will allow northern
spotted owls to reclaim territory they’ve been driven out
of over the past half-century.
Upcoming Meetings
September 5, 2013 WHA Board Meeting Portland, OR Email: [email protected]
September 9, 2013 Forecasting Emerging Markets & Supplying Existing Markets for Building Materials Portland, OR Email: [email protected]
September 10, 2013 Forecasting Emerging Markets & Supplying Existing Markets for Building Materials Tacoma, WA Email: [email protected]
September 18, 2013 Washington Hardwoods Commission Meeting Olympia, WA Email: w hc@wahardwoodscom m .com
September 24, 2013 2013 PNW Reforestation Council Vancouver, WA Email: [email protected]
October 9, 2013 Forest Tech 2013 Portland, OR Email: [email protected]
October 17-18, 2013 Grade School Class Portland, OR Email: [email protected]
November 20, 2013 Workshop: Energy Reductions Using Lean Thinking Princeton, WV Email: [email protected]
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!
U.S. Rep. Steve Daines, (R-MT), got two
amendments attached to legislation intended to speed
up timber harvests on national forest land. One
amendment to the Restoring Healthy Forests for
Healthy Communities Act requires that the U.S. Forest
Service give priority to forests bordering Indian
reservations in need of hazardous fuels reduction, in
accordance with the Tribal Forest Protection Act of
2004.
The second would give the Forest Service more
authority to deny appeals of projects it uses under its
categorical exclusion rule. Categorical exclusions are
intended for small-scale or repetitive actions that
shouldn't need full-scale agency analysis before
approval. “Without this provision, decisions on
important, low-impact projects conducted by the Forest
Service which were once completed in 5-10 days, will
continue to be delayed by at least 30 days, and in some
cases, up to 145 days,” Daines said.
The Hardwood Federation, in a letter this month
to Gina McCarthy, administrator of the U.S.
Environmental Protection Agency, noted that the recent
ruling by the U.S. Court of
Appeals for the District of
Columbia Circuit vacating
EPA’s Deferral Rule for
biogenic carbon emissions
under the Tailoring Rule has created significant
uncertainty for biomass and forest products facilities
that have begun operations, construction, or major
modifications since the July 20, 2011, effective date of
the Deferral Rule. Companies and municipalities have
made—and are planning to make—significant capital
investments, including investments to comply with
other environmental regulations (e,g., Boiler MACT),
improve energy efficiency, produce biofuels, manage
the nation’s wastewater treatment facilities effectively,
and meet the growing global demand for pulp, paper-
based packaging, wood products and energy, which
now could be in jeopardy.
The Agency was urged to recognize the significant
and growing body of scientific findings concluding that
carbon emissions from biomass do not introduce new
carbon into the existing natural carbon cycle. For
instance, in the United States, more wood is grown than
harvested each year. So long as forest carbon stocks
nationally are stable of increasing, biogenic carbon is
not contributing to overall increases in atmospheric
greenhouse gases and, therefore, PS and Title V permit
requirements should not be triggered. EPA’s policies
should also recognize that use of agricultural residuals,
non-forest biomass residuals and byproducts, and
purposefully grown energy crops including crop-
derived bio-materials, do not increase overall
atmospheric carbon.
The letter was signed by approximately 170
industry businesses and associations.
Taxpayers Protection Alliance (TPA) President
David Williams questions the effectiveness, market
influence, and cost to taxpayers of the U.S. Green
Building Council’s new LEED v.4 standard. The new
criteria are in line to become the General Services
Administration’s choice for federal construction and
renovation projects. Since 2010, the federal
government, 35 states, and more than 170 cities have
required LEED certification for public building projects
or have given tax credits for LEED-certified buildings.
However, Williams says TPA has issued warnings that
the new standards for LEED v.4 harm taxpayers and
businesses by offering a competitive advantage to
favored industries while discouraging and targeting
other industries. TPA maintains that LEED v.4 punishes
certain products, seeking to eliminate materials that
help improve a building’s energy performance and
sustainability, such as reflective roofing and solar
technology. TPA points out that some members of
5
Business Growth Opportunity:
Advertise in the Hardwood Stand!
$50/month - includes business card ad in newsletter; banner ad in the email newsletter preview, as well as on the WHA website home page; and a write-up in the newsletter about your company. Each will contain a link to your company website.
LIMITED TIME OFFER:
BUY 3 MONTHS, GET 3 MONTHS FREE!
OR BUY 6 MONTHS, GET 6 MONTHS FREE, PLUS A 2ND WRITE-UP!
Contact WHA office for information:
Phone: (360)835-1600
Email: [email protected]
USGBC’s board, including the Veterans
Administration, the National Institute of Standards and
Technology, and the Department of Health and Human
Services voted against using LEED as the only standard
for government buildings. TPA also has testified at
congressional hearings regarding LEED, seeking
greater transparency and accountability, and made
several Freedom of Information Act requests to better
understand the relationship between GSA and USGBC,
without results. - The Hill (08/06/13) Williams, David
I Dare You to Read This
By Robert Wilson
Recently, a reader wrote me to suggest that rather
than trying to encourage someone, a better way to
motivate them is to issue a challenge. So, I felt
challenged to write about it.
Whenever I think of laying down a challenge, I
think of a classic story about Charles Schwab the
magnate of Bethlehem Steel. One day, he was visiting
his least productive mill to discover why it was
underperforming. During his inspection, he discovered
that everything seemed to be in order: the workers all
knew their jobs, the equipment was top-notch, and the
manager highly educated. Despite all of that, it was
producing far behind all his others.
He ended his tour of the facility a few minutes
before shift change. Stopping in front of one the
furnaces, he asked a worker, “How many heats has your
shift made today?” “Six,” the man replied. Schwab then
asked for a piece of chalk. He took it, wrote a large
number “6" on the floor, then left the building.
When the second shift arrived, they saw the chalked
“6" on the floor, and inquired about it. “The big boss
was in here today,” said one of the men. “He asked us
how many heats we made, and we told him six. He
chalked it down.”
The next morning Schwab visited the same mill. He
saw that the “6” had been erased by the second shift and
a large number “7” written in its place. He returned to
the mill again at the end of first shift, where he saw that
the “7” had been replaced with a “10.” With a piece of
chalk, Schwab started a lively competition that
continued until that mill was producing more than any
other.
This particular challenge worked because it pitted
the esprit de corps of two teams against each other. I’m
not sure that particular challenge would work today
with the added burden of government regulations and
union rules.
I also believe that a challenge does not stand alone
as a motivator. There has to be something behind it. It
may be pride, prestige, or fear that drives the need to
overcome the obstacle.
Challenges are always obstacles whether it is an
athletic, academic, intellectual, work-related, health-
related, a personal goal or a personal tragedy.
Sometimes the challenge is given by a boss, a team
mate, a spouse, or simply the zeitgeist.
Many times a challenge will be issued with the
following words: “I’ll bet you can’t...” or “I dare you
to...”
A challenger draws a line in the sand and defies us
to cross it. Hmmm, isn’t that what the game of
American football is all about?
The advertising industry loves to use a challenge to
get us to try their product or service. We frequently see
words such as “Take the Taste Test,” or “Give Us 30
Days and You’ll Become a Believer.” I remember this
one from Gillette: “Take the SensorExcel Challenge:
One shave and we bet you’ll get rid of your disposable
razor for good.” Perhaps the most famous challenge ad
is this one: “Be All That You Can Be: In The Army.”
We love fun challenges such as problems that
stimulate our ingenuity: crossword
puzzles and sudoko for example. We
enjoy the challenge of improving our
skill at games and sports. OK, the love/
hate challenge of golf not withstanding.
Ultimately, all our challenges are self-given because
it is human nature to want to improve. Pablo Picasso
said it best, “I am always doing that which I cannot do,
in order that I may learn how to do it.”
The personal challenges we give ourselves create
the journey known as life. Enjoy the pitfalls and peaks
as they come because as Leo Buscaglia, author and
professor, put it most bluntly, “Death is a challenge. It
tells us not to waste time.”
I challenge you to heed his advice and get on with
the important things in your life. Robert Evans Wilson, Jr. is
an author, humorist and innovation consultant. For more information
on Robert, please visit http://www.jumpstartyourmeeting.com
6
WHA GRADE SCHOOL
OCTOBER 17-18, 2013
PORTLAND, OR
Name(s): _____________________________________________________________
Company: ______________________________________ Phone: ______________
Address: _____________________________________________________________
_____________________________________________________________
Credit Card # _____________________________ Exp. Date: _______ CVV: ________
Grade Stick (optional): $ __________
Total due: $ ________________
Mail form and check to: WHA, PO Box 1095, Camas, WA 98607 / Fax to: (360)835-1910
Online registration: www.western hardwood.org Information: (360)835-1600