No. 531 June 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

Lindy Stallard David Sweitzer Secretary/Manager P.O. Box 1095 Camas, WA 98607 Ph: (360) 835-1600 Fax: (360) 835-1900 Web: www.westernhardwood.org Email: wha@westernhardwood.org

W HA Website Proves to be Valuable

For the past 8 full years of measuring hits to the WHA website (2005 – 2012), we

have been impressed with the traffic it has generated. Even though we tend to peak just

before a major WHA event, several menu choices consistently get exceptional attention.

Some of the top choices include the membership directory, newsletter, and hardwood

facts and workability characteristics.

Find many important resources on the website:

events

newsletters

member directory by Sawmills, Manufacturers, Re-Manufacturers, Pallet

Producers, Wholesaler/ Distributors, Landowners, Timber Owners, Service

Organizations (freight companies, Truckers, Consultants, etc.)

annual meeting presentations

hardwood silviculture

hardwood workability specifications

interactive grading descriptions

links to important hardwood contacts

Free banner ads are available for all members - contact WHA office for information

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The Benefits of Using Biomass

Produce affordable, local, renewable energy and other

products of value by using material that would

otherwise be wasted.

Stimulate rural economies, providing jobs and keeping

dollars in the community by collecting, processing and

using the resource locally.

Support needed forest restoration projects by offsetting

some of the costs and using market forces to leverage

the federal dollars spent on forest health to bring

broader benefits to the community.

Reduce air pollution through more controlled burning,

be creating markets for material that would otherwise

be burned openly in slash piles or wildfires.

Reduce net carbon emissions to the atmosphere—

although both fossil fuel and biomass release carbon

when burned, biomass removes it from the atmosphere

while it is growing.

“A market is never saturated with a good product, but it is very quickly saturated with a bad one.”

-Henry Ford

ently, the Senate passed a Farm Bill with

several important forestry provisions by a wide margin, 66

to 27. The strong vote should generate some pressure on

the House to follow suit. The Senate bill includes

authority for the Forest Service to expand the use of Healthy Forest Restoration Act authorities to lands which

may be threatened by insects or catastrophic fire (current

law only allows them to apply these provisions on lands

currently under insect attack or lands adjacent). The bill

also includes permanent reauthorization of Stewardship

Contracting Authority.

Following the passing of the Farm Bill by the Senate,

the House voted in favor of an amendment to the 2013 Farm Bill offered by Representatives Jaime Herrera

Beutler (R-WA) and Kurt Schrader (D-OR) to clarify that

forest roads do not require EPA clean water permits.

The amendment, which is identical to the bipartisan

Silviculture Regulatory Consistency Act (H.R. 2026),

would codify the EPA’s long-standing policy that forestry

activities and forest roads are nonpoint sources under the

Clean Water Act and are most effectively regulated by

states through Best Management Practices (BMPs). It will restore legal certainty, promote water quality and protect

jobs by preserving EPA’s longstanding policy that such

roads are nonpoint sources.

* Legislative Update

* Outlook

* 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 politically active through the

Hardwood Federation

Joining is quick and easy. Use the online membership application and simply pay by credit card, www.westernhardwood.org.

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The U.S. multifamily housing market has largely

recovered and entered a state of equilibrium and

sustainability, according to a first quarter report released

by the National Association of Home Builders (NAHB).

The organization also continues to see a shortage in

workers with basic construction skills and higher costs for

some building supplies.

North American hardwood lumber prices have

been rising almost continuously for over seven months.

Price increases seem to be driven, at least in part, by

higher demand, not just low production. U.S. hardwood

lumber exports during three of the first four months of

2013 set records for those particular months. Finally, kiln-

dried lumber inventories are low, and sellers have lots of

orders booked for lumber now in kilns.

-excerpted from Hardwood Review Express

Exhibitors, buyers, and observers headed to the

Spring 2013 High Point Furniture Market—the world’s

largest wholesale home furnishings show, with more

optimism than they’ve had in some time. Reports about

the Market were quite positive and seem to indicate that

furniture demand is finally gaining some momentum.

Wood furniture suppliers introduced myriad new

bedroom and dining room collections in a broad range of

styles and finishes, as well as case goods

with innovative features and multiple

functions, according to reports from

FURNITURE/Today®. While clean lines

and smooth surfaces were the rule, many

new wood introductions featured distressed

finishes and rough edges, as designers and

manufacturers recognize that a fair number

of consumers still want casual or rustic-

looking furniture. This market also

included more reclaimed wood—and some new wood

processed to look like reclaimed wood—though it remains

a very small niche. Darker finishes with familiar names

like espresso, sable and mocha were still more prevalent in

the wood categories than light or medium finishes. Fresh

splashes of color were found here and there in case goods

lines, mostly as accents to the primary browns, blacks and

grays.

In contrast, the bright colors now fashionable in

clothing were prominently featured in new upholstered

furniture collections. Oranges and yellows along with

bright shades of blues and greens, like turquoise and

emerald, could be found in showroom after showroom. –excerpted from Hardwood Review Express

On the West Coast, lumber is moving faster

for hardwood lumber suppliers and buyers.

Buyers are choosing to accept price increases

or go without. According to one southern

California contact, most species are turning

quickly.

A Washington source says that demand has picked

up and is mostly fueled by increased

orders from China and rebounds in

domestic residential construction activity.

The source, who markets to both end-

users and distribution yards in the U.S.

and overseas, also notes that his customers expect growth

for the year and expect more to come, something they

haven’t heard in awhile.

Quebec area contacts said as the spr ing

break-up period was upon them, log

supplies were low. Some reported being in

good shape, while others were building

their inventories.

Contacts in Ontario are still expressing concerns

over supply issues for several species.

This is in part caused by spring break-up

and weather in general, and some complex

factors, such as the strain on supply caused

by a reduction in overall production

needed to respond to market demand and

the resurgence of the U.S. housing sector.

The U.S. Department of Transportation has

released a schedule for completing its truck weight study

as mandated under MAP-21. The study must be

completed by November 2014 with a preliminary draft out

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in the spring of 2014. DOT is planning on holding at least

four stakeholder outreach events, and the entire study will

be guided by CDM Smith & Associates.

The Hardwood Federation is working with allies on

the House Transportation and Infrastructure Committee to

drum up support for H.R.6212, the Safe an Efficient

Transportation Act of 2013 (SETA). The Act would raise

truck weights from 80,000 lbs. to 97,000 lbs. with the

addition of a sixth axle. The act could help level the

playing field amongst trade competitors/partners while

simultaneously leading to improvements in safety,

efficiency, and economic value.

The logging industry in North Carolina is coming

back to life. Loggers in NC wetland forests are clear -

cutting decades old trees and bringing jobs back to area

communities that were hard hit by mill closures in the last

several years. Many of the larger, older tree trunks go for

lumber. The smaller trees and limbs go to a mill close by

where they are ground up, compressed into pellets, and put

on ships bound for Europe where an environmental push is

putting pressure on some coal-burning power plants to

switch to wood to reduce the use of fossil-fuel and carbon-

dioxide emissions. Since the European forest don’t have

spare wood for fuel and U.S. forests are larger with fewer

restrictions, they are devouring wood from the U.S. One

firm said that they can barely keep up the demand for

pellets from Europe.

The Environmental Protection Agency (EPA) has

proposed two new rules limiting the amount of

formaldehyde emitted from hardwood plywood, medium-

density fiberboard, particleboard, and finished goods that

are sold, supplied, offered for sale, manufactured, or

imported into the U.S.

EPA’s standard would set limits on how much

formaldehyde may be released by composite wood

products and include requirements for testing and product

labeling, recordkeeping, chain of custody documentation, a

stockpiling prohibition, and enforcement provisions.

The second proposed rule would create a framework

for a third-party certification system to ensure that

manufacturers have their composite wood products

certified through an accredited third-party certifier.

Up Coming Meetings

July 8-11, 2013 Advanced Insect & Disease Field Session Hood River, OR Email: richard@westernforestry.org

September 4, 2013 WHA Board Meeting Portland, OR Email: wha@westernhardwood.org

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: richard@westernforestry.org

October 9, 2013 Forest Tech 2013 Portland, OR 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!

The 2013 edition of Green Book's Softwood Marketing Directory is available ONLINE! This service gives softwood lumber sales representatives instant access to over 3,800 woodworking and industrial plants' Softwood lumber purchasing needs. It is a free service with a

qualifying Ad program in The Softwood Forest Products Buyer. Without an Ad program, it can be accessed for $900 per year. Each listing includes species, grades, thicknesses and quantities of lumber purchased regularly. It also gives the lumber buyer's name, address, telephone and fax numbers, e-mail and web address. The 2013 edition of Green Book's Hardwood Marketing Directory is also available for lease in both a printed version and ONLINE! It is filled with over 6,000 woodworking plants and distribution/concentration yards throughout North America. This directory contains the same type information as the Softwood directory and can be accessed for $1,900 per year, or at a discounted rate with a qualifying Ad program in National Hardwood Magazine or Import/Export Wood Purchasing News. For more information on either Green Book, contact Grayce Thurman at 901-372-8280 or greenbook@millerwoodtradepub.com

I n d ep endence Day

Ju ly 4th Ju ly 1 s t

The California State Board of Equalization has delayed until September a final decision on the controversial “Lumber Products Assessment”. In question and needing more accurate data is the methodology and the number of businesses affected and their revenue projections. While the measure was intended to make California’s timber producers more competitive with other states, in reality it provides funding for more state employees to monitor timber operations and adds considerable expense to the retailers who are expected to collect the assessment.

The NHLA and Hardwood Federation scored a victory in May after years of working with Congress, agencies, and member companies to have NHLA Kiln Dry Certificate approved throughout the world. Vietnam is accepting this change in policy an the first shipment using the program were accepted by the Vietnamese in early May. This is a very large first step towards extensive global acceptance of the program.

Great By Choice

By Gabriel Curry

One hundred years ago, two teams raced to be the first humans ever to reach the South Pole. The winning team, led by Norwegian Roald Amundsen, took no risks with unproven technology. He dressed in animal skins like an Eskimo and traveled with skis and dogsled.

The competition, led by Englishman Robert F. Scott, sought to gain advantage using motorized sledges and high-tech clothing. His men not only trailed Amundsen’s in reaching the pole; none of them made it back alive.

This bleak history lesson serves as the backdrop to business writer Jim Collins’ most recent book, Great by Choice. If you are familiar with Collins’ first best-seller, Good to Great, you will

already be familiar with his analytical dissection of businesses as a means of finding common traits that separate successful businesses from their inferior competitors. This time, he is joined by co-author Morten Hansen, and they exhaustively analyzed 7 companies who enjoyed tremendous success during a 15 year period ending in 2002 and compared them to 7 competitors during the same time frame. To add a little zing to the storytelling, he used the South Pole story as a metaphor to illustrate their findings. It seems the same traits that characterized success with the companies he studied could be neatly applied to the expeditions. In a nutshell, here’s what the data reveal about successful companies:

1. They are highly disciplined. This sounds like a no-brainer. But there are nuances to the concept of discipline. It means pushing yourself to meet your goals in spite of adverse weather; it also means

forcing yourself not to go further than your goal on a good day when you should be resting. Collins nicknames this principle the 20-Mile March. “The 20-Mile March ,” the authors write, “creates two types of self-imposed discomfort: the discomfort of unwavering commitment to high performance in difficult conditions, and the discomfort of holding back in good conditions.”

2. They are not necessarily the ones with the best ideas. They do, however , devote a lot of resources to good ideas after thoroughly testing them. It’s a principle Collins calls Bullets, Then Cannonballs. “The best leaders we studied did not have a visionary ability to predict the future,” the authors say. “They observe what worked, figured out why it worked and built upon proven foundations.”

3. They sleep with one eye open. Even when everything is going great, successful companies are vigilantly looking for the slightest sign of trouble. Dubbed Productive Paranoia, this is the temperament that causes a company to prepare in advance for bumps in the road and have a defensive posture that enables them to survive the blows that would otherwise cause the company to fail.

The book is subtitled, “Uncertainty, Chaos, and

Luck—Why Some Thrive Despite Them All.” And that

for me is the main takeaway. Success isn’t really possible

without that word “despite” somewhere in the story—

despite the economy, despite changing circumstances,

despite conventional wisdom… there’s always an element

of overcoming in any success story. It reaffirms my belief

that when economic downturns come, you don’t have to

participate. People like to believe that the times we live in

are some kind of historic anomaly, when in fact all of

history is one upheaval after another. And if turbulence

and change are a common element to all of human

experience, then the ones who succeed are the ones who

don’t let the weather deter them from their goals. If you sit

in your tent and wait for the weather to moderate every

time a storm passes through, you may not make it home

alive.

-Curry, Gabriel. “Great By Choice”. Hub Industrial Supply Blog.

02 May 2013. <http://blog.hubindustrial.com/archives/newsletters/

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