No. 529 April 2013 WHA Board of Directors

[Pages:7]Authoritative resource for a sustainable, profitable, and growing Western hardwood industry.

No. 529 April 2013

WHA Board of Directors

Mike Lipke

President

Lee Jimerson

Vice President

Kurt Landwehr

Treasurer

Darrin Hastings

Immediate Past President

Adam Brennan Gevin Brown 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: Email: wha@

In This Issue:

* Welcome New Member * Legislative Update * Member Profile * Outlook * Get Motivated * Upcoming Events

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W elcome New Members

AMERICAN

INTERNATIONAL

PRODUCTS

Wholesaler..

5560 SW 107th Avenue

Beaverton, OR 97005

Contact:

Whitney LaRuffa

Ph: (503)641-1611

Fax: (503)366-1611

Web:

Email: laruffa@

FOREST

EVERGREEN HARDWOODS, INC.

Wholesaler, exporter, veneer manufacturer.

1600 Lind Avenue SW

Suite 250

Renton, WA 98057

Contact:

Steve Tanaka

Ph: (425)271-9292

Fax: (425)271-6969

Web:

Email: stanaka@

POLLMEIER, INC.

Sawmill.

10200 SW Greenburg Road

Suite 450

Portland, OR 97223

Contact:

Doug Martin

Ph: (503)452-5800

Web: pollmeier-

Email: doug@

F YI

Make sure your forklift drivers stay legal! Federal OSHA regulations require all forklift drivers to be trained at least every three years on the safe operation of the truck or yard-based forklifts they may be using.

Q uote of the Month

"From energy development to grazing to logging, tourism and outdoor recreation, our lands and waters power our economy and create jobs." - Interior Secretary

Nominee Sally Jewell

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L egislative Update

Southern Oregon's congressman DeFazio expressed frustration regarding how Oregon's senior senator has responded to the plight of Oregon timber counties. Rep Peter DeFazio said if he were in the influential position held by Senator Ron Wyden, he would hold hearings and advocate for a specific solution. But after "politely" asking Wyden for a hearing on a bill proposed by DeFazio and two other Oregon congressmen, "we have had no response," DeFazio said.

"I kind of think the ball is in their court." So, will Oregon's Senior Senator grab the gold ring? As Chairman of the US Senate Energy and Natural Resources Committee, Senator Wyden is perfectly positioned to resolve the federal forest health/timber supply/county payments conundrum and claim a grand prize. -excerpted The World and NW Timber Blog

The House Natural Resources Committee recently had a hearing to discuss several recent draft bills designed to boost timber harvests on federal lands and reduce the threat of wildfires. The lead bill, the "Restoring Healthy Forests for Healthy Communities Act", released by Committee Chairman Rep. Doc Hastings (R-WA), is designed to increase timber harvests on national forests in an effort to help Western US counties reduce federal aid under the Secure Rural Schools program by increasing the revenue that the Forest Service generates from forest projects. Another bill being proposed by Rep. Peter DeFazio (D-OR), Rep. Kurt Schrader (D-OR), and Rep. Greg Walden (R-OR) aims to end conflicts concerning the approximately 2.4 million acres of timberlands in western Oregon.

O utlook

The global economy has seen some progress since last fall, but growth remains modest at best. There is also a "two steps forward, one step back" feel to some of the latest data. Six of the top 10 markets for USmanufactured goods expanded in March, according to Markit. This is down from seven last month, but up from four last October. Canada, our largest trading partner, saw its manufacturing activity decline, with weaknesses in new orders, exports and hiring. Softness in the United States and Europe were cited as factors. -excerpted from

NAM Global Manufacturing Economic Update

Growth in residential and commercial construction, remodeling activity, and exports will further stimulate demand for hardwood lumber over the next several months. Companies throughout the hardwood supply chain should enjoy increased business, with sales limited more by supply than demand.

The stage appears set for decent Alder business over the next few months. Domestically, alder shipments to Western distribution yards should tick up as their sales improve, and expanding homebuilding and remodeling activity will likely bolster demand from cabinet plants. Internationally, alder was on a roll during the last five months of 2012, with exports 17% above the same period in 2011. Shipments to China.--which comprise nearly three-quarters of Alder exports-- surpassed 5 MMBF every month in Q4 2012 after falling short of that mark in 8 of the previous 10 months. Though Alder exports slipped in January, its versatility may attract customers seeking refuge from higher prices on other species, especially the Maples. -excerpted from Hardwood

Review Express

The first of the year always seems to be different or anomalous compared to the previous year, so I wait until the end of the March to produce the year's first ANCHORSEAL Index. After the euphoric ending to 2012, the beginning of 2013 could be viewed as downright depressing.

The snows and rains during the first quarter, especially in the South and Midwest, exacerbated limited hardwood log supplies. As a result, first quarter hardwood production, from grade lumber to crane mats, was down 5%-10% compared to 2012, with some sectors harder hit than others. However, I am confident that the rest of the year will be much rosier than the first 3 months.

With demand outstripping supply and the consequent improvement in hardwood prices, production will be strong as the woods dry up and more logs become

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available. With continued confidence in all the factors cited in the Dec. 2012 AS Index, my prediction: 2013 total production will be 10%+ greater than 2012, and more profitable for hardwood producers. -Norm Murray, U*C

Coatings Corporation

West Coast hardwood lumber suppliers indicated not only improved sales activity, but also noted an improvement in business practices overall--gradual, but steady.

An Oregon contact says market conditions are improving according to his customers. He notes that optimism is high and it looks like the hardwood business is continuing to slowly improve. Those he talks with this year seem to have a more positive outlook.

Supply is still a concern according to contacts in Quebec. Inventories have declined that cushioned supply strain for lumber yards and secondary manufacturers. The contracted sawmill production may have more to do with logging companies that are faced with limited timber or financial resources and, in some cases, both.

Improved demand and decreased production of hardwoods has affected the availability of most prominent species in the Ontario region. The most affected by the strain is the No. 1 Common and Better grades for volume production thicknesses. As a result, prices have reportedly moved

higher and continue to show signs of pressure.

M ember Profile

Up Coming Meetings

April 30-May 2, 2013 Western Hardwood International and Exposition Portland, OR Email: wha@

Convention

May 1, 2013 Western Hardwood Association Annual Meeting Portland, OR Email: wha@

May 1, 2013 Washington Hardwoods Commission Meeting Portland, OR Email: whc@

Annual

May 24, 2013 Workshop: Drying Lumber with a Solar Kiln Blacksburg, VA Email: bbond@vt.edu

June 5, 2013 WHA Board Meeting TBD Email: wha@

June 19, 2013 Washington Hardwoods Commission Meeting Castle Rock, WA Email: whc@

June 19-21, 2013 Conference: National Conference on Diversity in Nature Resources Blacksburg, VA Email: quesada@vt.edu

June 24-25, 2013 Logging Workshops--Felling Oakville, WA Email: kirk@

June 26, 2013 Logging Workshops--Yarding Oakville, WA Email: kirk@

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

New WHA member, RAPTOR INTEGRATION, INC. is based in Salmon Arm, BC and was founded in 2009. Raptor Integration Inc. was formed to provide advanced automation solutions to the wood processing industry.

We are the sawmill industries' "Integration Specialists" for lumber handling equipment. We integrate "best in class components" that complement our scanning and controls architecture to provide ideal systems that meet our customer's needs.

Pich? Inc. - Raptor is the western agent for Pich? Inc. lumber handling equipment. Pich? specializes in high quality hardwood lumber handling equipment. Based in Daveluyville, Quebec, Pich? is a privately owned family run business and an established suppler since

1983. Pich? has a number of flag ship products; Trimmer Lines Sorters ? pusher, drag chain, J hook, flooring Electric Stacker and Stick placer Electric Tilthoists Planer Infeeds Pallet Lines Planermill or Sawmill, Raptor has the expertise to

provide the lumber handling solution that meets your specification and budget. We manage the technical, logistical and commercial aspects of capital projects to

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meet jointly agreed upon targets. We are there with you at start-up to coordinate and participate in system commissioning tasks to ensure productivity goals are realized.

Raptor Control Systems - Raptor has over eighteen years of experience in design, configuration, programming & support of industrial control systems for the sawmill industry. Our specialists have the ability to closely tailor a custom control system for your specific application.

Raptor WEBSort - Lumber Sorting System is a user interface for the purpose of configuring machine centers and tracking production on a lumber handling trimming and sorting line. The program runs in any web browser on the local network. Raptor's WEBSort implements a modern strategy to tackle several common problems experienced with many sorter tally user interfaces.

Raptor FX85 Board Optimizer - Raptor Integration provides high density scanning that creates a perfect 3d image of the lumber. Grading algorithms are customized to maximize production, control and recovery our customers of lumber. The easy to use interface simplifies system setup and allows for expedited training of operators.

Another new WHA member, GOBY WALNUT, was founded in 1975 by Dr. Gary Goby, a muzzle loader rifle enthusiast. Gary began harvesting urban salvage Oregon Black Walnut (a type of Claro Walnut) to supply

his hobby. Dr. Goby ended up with so much walnut that he began selling lumber and slabs. Goby grew to encompass 6 acres of air drying walnut, a small DH kiln, a re-man shop and kiln dried inventory. Goby Walnut was purchased January, 2007 by Art Blumenkron a local Portland, OR businessman and wood aficionado. Art moved Goby to its current location on St. Helens Rd in NW Portland. Sales at Goby have grown fourfold in the last 5 years and now employs 9 people. Goby operates 2 band mills on site, a Wood-Mizer WM 1000 with a 67" capacity and a LT 50 with a 28" capacity. Goby uses 4 Nyle L200 dh kilns with a total of 12,000BF capacity, a Nyle L500 with 12,000 BF capacity and a Vacutherm vacuum kiln with 3,500 BF capacity to dry NW Hardwoods. Goby Walnut Products continues to specialize in fine urban salvage Oregon Black Walnut (4/4 - 16/4 with an emphasis on wide and long 12/4 slabs), gunstock blanks, tone wood, veneer and unique burls. Goby has expanded its urban salvage hardwood selection to include Big Leaf Maple, Oregon White Oak, Ash, Madrone, Tan Oak, Myrtle, Black Locust and Elm. Goby exports internationally and ships extensively throughout the United States. Goby has developed a fine reputation for

providing unique, hard to find NW hardwoods in an ECO friendly manner.

Art Blumenkron is the President of Goby Walnut Products. Art graduated from Reed College in 1978 and has been somewhat of a serial entrepreneur ever since. Art has either founded or operated 5 NW based businesses ranging from Aluminum and Stainless distribution, to manufacturing dental and medical equipment to his current position as President of Goby Walnut Products.

N ews in the news

Citing a lack of federal timber, Rough & Ready Lumber is closing its 90-year old sawmill in Cave Junction, the last mill operating in southwest Oregon's Josephine County. The closure, announce this month, means the loss of 85 jobs. It comes amid a Congressional stalemate on plans to boost logging in US Bureau of Land Management forests. "for 23 years now, we've been pleading with members of Congress and the federal agencies to do something about these log supplies," said Jennifer Phillippi, the family-owned mill's CEO and coowner. ?excerpted from The Oregonian.

The President's proposed Fiscal Year 2014 budget proposal for the Forest Service got a chilly reception this week, with the bi-partisan leadership of the Senate Energy & Natural Resources Committee blasting the proposal. The budget reduces timber harvest and boosts land acquisition. The budget recommends a 9.9% reduction in timber harvest while recommending 9.8% increase in land acquisition. Further, the budget proposes an additional 20% cut in the NFS roads budget, and once again proposes the creation of a consolidated Integrated Resource Restoration line item. IRR would consolidate funds from Wildlife and Fisheries,

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Forest Products, Vegetation and Watershed Management, Legacy Roads & Trails, and Hazardous Fuels funds to create a $756.788 million line item. The agency projects a timber output level of 2.38 BBF, a drop of 242 MMBF, down from 2.64 BBF accomplished in FY 2012, and less than expected this year. This would be a 9.9% drop from FY 2012, and a 15% reduction from the planned 2013 level (prior to sequester and CR).

The extent of illegal logging is difficult to assess, but the World Bank estimates that it generates US $10-15 billion in criminal revenues annually. Many countries have lax forest ownership laws and forestry regulations and thus, widespread illegal logging. Under the EUTR, such "high risk" countries could suffer significant reductions in forest products exports.

U.S. hardwood exporters have a leg up on much of the competition when it comes to demonstrating legality. A study sponsored by AHEC and released by independent consulting firm Seneca Creek Associates in 2008 established that US hardwoods have very low risk of illegal derivation. Thus, US exporters can already provide European importers with documentation substantiating the strong legal credentials of US hardwoods. While separate from the legality issue, the development of Life Cycle Analysis-based environmental product declarations should also bolster acceptance of US hardwood lumber and hardwood products even in the most environmentally sensitive European markets.

G et Motivated

WAT NOW

By Larry Dennis

A few days ago I was driving south on I-5 when I noticed the license plate on the car in front of me. It read "WAT NOW." I enjoy trying to figure out what these personalized plates mean. I had to wonder why, where that came from, how long that message had been on their car, and the story behind its' special meaning for them. I wanted to pull the car over and ask the middle aged

woman driver the source and meaning of her special plates. I thought a minute about following her home or wherever she was going so I could ask. I guess I'll never know her

special reason for this message to the world. This question "WAT NOW" could be a good one for us to ask when things aren't going our way. Instead of asking the victim question, "Why me?", which is unknowable and unanswerable. "Why me?" is looking backward. To be victors instead of victims, we must ask, "What now?" or better yet, "What next?" "Why me?" is the question of a victim who somehow feels put upon, feels out of control and disempowered. "What next?" is the question of an empowered person who is looking forward, and though not happy with some aspect of their life or current circumstance, knows that by taking the appropriate next action, they can once again direct their life and affairs.

We create, promote or allow everything that exists in our lives. The way to allow a condition we are not happy with to continue to remain part of our life is to ask, "Why me?" The way to change your world it is to ask, "What next?" So the next time you feel yourself on a road filled with potholes or ruts, ask the magic question, "What now?" / "What next."

"Concentrate on the vital few; ignore the trivial many." - Vilfredo Pareto

Acting on what Vilfredo Pareto called the "vital few," we become victorious winners. One of our chief challenges in life is sorting out the trivial many that clamber for our attention to find the vital few. Knowing the true vital few things to give our limited time and attention is in itself empowering.

We can't always control what is going on around us; we can always control our response to it. You can ask, "What now? What next?" Unfortunately, many, perhaps most, live in a reactive state, which means every bump in the road jars them. We can't always determine the quality of the road we are on, how smooth, rough or rutted it is. We have absolute control over the way we respond to our circumstances. So look beyond the challenges of the moment, the mistakes of the past; look forward and ask, "What now? What's next?" You will be the empowered person you were created to be.

"The best way to predict the future is to create it." - Peter Drucker

Larry Dennis is the founder of Turbo Leadership Systems, an executive team building and leadership skills development organization. For more information about his programs, please visit .

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Western Hardwood Int'l Convention & Exposition Agenda

April 30:

7:30 a.m. 7:30 a.m. 9:30 a.m.

10:30 a.m. 11.30 a.m.

Morning Session Registration opens Exhibitor set-up Opening Keynote Speaker - US Congresswoman Jaime Herrera-Beutler - Regulations and Political Climate Affecting Harvest and Shipment of PNW Hardwoods Exhibitor Showcase Lunch

1:00 p.m. 2:30 p.m.

3:30 p.m.

Afternoon Session

Seminar #1: Environmental Policies-Trade and Impacts on the PNW Hardwood Industry - Mike Snow, American Hardwood Export Council (AHEC)

Seminar #2: Exporting and Importing Hardwoods Without Costly Mistakes - Panel: Mike Snow, AHEC; Brenda Barnes, Allports; Jeff McEwen, Hanjin Shipping; Jennifer Woods, US Commercial Service, US Dept. of Commerce

Exhibitor Showcase

Evening

5:30 p.m.

Reception, Dinner, Auction

May 1:

8:00 a.m. 9:00 a.m. 10:30 a.m.

12:00 p.m. 1:00 p.m.

1:30 p.m.

2:00 p.m. 2:30 p.m.

3:30 p.m. 5:00 p.m.

May 2:

8:00 a.m.

Morning Session Exhibitor Showcase Seminar #3: UW Western Hardwood Inventory Assessment - What's Available in 2013 to 2040 for Harvest - Team headed by Bruce Bare, Dean Emeritus, University of Washington, Director Institute of Forest Resources Seminar #4 - Concurrent Sessions Design Trends Affecting PNW Hardwoods - Amy Running, Boora Architects; Ryan Temple, Sustainable Northwest Wood; Ian Hanna, Forest Stewardship Council Western Hardwood Grades and Their Use - Dana Spessert, National Hardwood Lumber Association; Steve Wilson, Collins Companies; Jeff Wirkkala, Hardwood Industries Lunch

Afternoon Session Seminar #5 - Concurrent Sessions Manufacturing with Hardwoods - Mike Lipke, Trillium Pacific Millwork; Lee Jimerson, Collins Companies; Scott Leavengood, Oregon Wood Innovation Center Alder Growth & Yield Model - Andrew Bluhm, Oregon State University Seminar #6 - Concurrent Sessions PNW Hardwood Veneer Production and Use Trends - Tim Schallich, Columbia Forest Products Superior Seedlings for Superior Alder - Barri Herman - Washington State University Exhibitor Showcase Concurrent Sessions WHA Annual Meeting - Mission, Certification, Membership, Elections WHC Annual Meeting - Impact of Government Regulations, Lacey Act, Elections Exhibitor Showcase

Evening Oregon Microbrew Reception in Exhibit Hall

Mill Tours (more information on website) - choice of: Portland--Urban Timberworks, Sustainable NW Wood, The Joinery Boardman--GreenWood Tree Farm, Upper Columbia Mill (Pacific Albus), CFP veneer plant

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