Pallets West Magazine for WPA Members December 2015 Garnett Wood

ProductsCelebrates 50 Years!

50th50thNew Member Notes

WPA Member News:RotochopperBakerL&R

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WPA EXECUTIVE

DIRECTORS

Eric ConklinAnnie MonteyLindsey SheanJohn SwenbyGreg VipondTom Worthen ASSOCIATE DIRECTORS Jeff CarrTyrone KonecnyRob MyersDerek Sampson Please direct inquiries about the WPA toDavid Sweitzer, Executive Vice-PresidentP.O. Box 1095, Camas, WA 98607Ph. 360 335-0208Email:wpa@westernpallet.orgWebsite:www.westernpallet.org

www.westernpallet.org

LIFTOFF!

W P A M A G A Z I N E

Upcoming Events/New Members N.A. Softwood Trends Garnett Celebrates 50 Years New Member Notes 2016 WPA Annual Meeting Update Rotochopper, Key Knife Baker, KASCO Join Forces L&R's James Ruder SHARP Safety Program Housing Starts Increase Importance of U.S. Forests asCarbon Offset Global Wood Production Corrugated Pallets Expansion Advertisers/Membership

PresidentVice-PresidentSecretary/TreasurerPast PresidentExecutive VP

Carolyn Beach-SkinnerKathleen DietrichDave UppalKelly BennionDave Sweitzer

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PalletsWest

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DECEMBER 2015

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North AmericanSoftwood Prices Weekly softwood lumber prices to November 17, 2015 are shown below,sourced at http://www.nrcan.gc.ca/forests/industry/13309.

Upcoming Events 1/15/2016-1/19/2016WPA Annual MeetingRancho Mirage, Californiawww.westernpallet.org 2/9/2016WestPackAnaheim, Californiawww.westpack.packagingdigest.com 3/2/2016-3/4/2016NWPCA Annual LeadershipConferenceOrlando, Floridawww.palletcentral.com

New Members

The WPA is pleased to introduce thefollowing new members: Lina MontesG.O. Pallets, Inc.15642 Slover AvenueFontana, CA 92337ph: (909)823-4663web: www.gopalletsinc.comemail: lmontes@gopalletsinc.comsponsor: Norm Normile, NW Norm Shari BradleyFlyers Energy2360 Lindbergh StreetAuburn, CA 95602Ph: (775)830-0575web: www.flyersenergy.comemail: sharib@4flyers.com

DECEMBER 2015

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Garnett Wood Products Celebrates 50Years in Business

Garnett Wood Products Company, Inc. recently celebrated the 50th anniversary ofbusiness. Mark Garnett, past President and Board member of the Western PalletAssociation is the company owner and President. In early October of 1965, Mark’s father, Jess Garnett purchased the business inorder to make use of trees that were growing on some acreage the family hadacquired in southern Missouri. When Jess approached a local sawmill aboutbuying the trees on the property, the sawmill owner told Jess he could purchasehis sawmill and cut up his own trees. And so the story began… The product line has expanded over the years to include pallet production, the saleof wood components, and various wood products and the production of charcoalpowder which is used in the manufacture of charcoal briquettes. With the help of the approximately 40 employees on the Garnett Wood Productsteam, several of whom have over 30 years of service at Garnett Wood Products,Mark and Diann Garnett, strive every day to keep customer service and workingtogether safely their top priorities. Per Mark, “Garnett Wood Products has historically provided the high quality andelevated level of customer service expected by our customers- and we willcontinue to do so in the future!”. Workplace safety is a key component of the company’s success. “Working Safely iseveryone’s responsibility,” states Larry Frans, GWP’s Operations Manager andSafety Director. “ It is each person’s responsibility to watch out for themselves aswell as everyone working around them at all times.” This priority is kept top ofmind through daily interaction. “When the Operations Manager, or the Pallet MillSuperintendent, or Charcoal Plant Superintendent walks through the plant he asksevery person-on a daily basis- ‘Whose responsibility is working safely?’- Theproper response which must be given verbally from each employee is ‘Everyone’s’. “GWP is committed to our employees and customers,” continues Mark. “Diann andI are especially proud of our employees for breaking the old safety record of 683days without a lost time accident and for establishing the current record 904 dayswithout a lost time accident- which was celebrated at GWP’s Recent 50thAnniversary Party”.

WPA in the News

Group photo fromthe 50th anniversarycelebration atGarnett WoodProducts

DECEMBER 2015

White & Company Launches Best Load and BestPallet Version 2.1, Will Exhibit at WPA Meeting

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WPA in the News

Watch the Date: 2016 WPA Annual Meeting

Don't miss the upcoming 2016 WPA Annual Meeting, to be held in Rancho Mirage,California, January 15 - 19, 2016. Online registration is available. Speakers for the 2016 Annual Meetinginclude:Patrick Atagi: NWPCA:NWPCA, WPA and You - Working Together WorksLeanne Seeger, Hub International: How Tech is Changing the Landscape of Employee BenefitsLori Collins, Sierra Pacific: Lumber SupplyChaille Brindley, Pallet Enterprise:Lean, Mean, Fighting MachineRalph Rupert, Millwood, Inc:Pallet Quality in the 21st Century

Atagi Seeger Collins Brindley Rupert

G.O. Pallets Joins WPA The WPA is pleased to announce G.O. Pallets, Incorporated as a new member. G.O.Pallets was founded in 1984 by Guadalupe Ojeda, sho establidhrf unwaveringethics and quality workmanship as core values. The family owned palletmanufacturing company is located in Fontana, California. For more information,please visit www.gopalletsinc.com.

New Member Notes

About G.O. Pallets The WPA is pleased to announce G.O. Pallets, Incorporated as anew member. G.O. Pallets was founded in 1984 by Guadalupe Ojeda, whoestablished unwavering ethics and quality workmanship as core values. The familyowned pallet manufacturing company is located in Fontana, California. For moreinformation, please visit www.gopalletsinc.com. About Shari Bradley, Flyers Energy Come meet representative Shari Bradley atthe Flyers Energy booth at the WPA Annual Meeting this coming January in RanchoMirage, California. Shari has more than 20 years’ experience in the PetroleumIndustry, in cardlock fuel management, bulk fuel, and lubricants. Shari has been

White & Company Launches Best Load and BestPallet Version 2.1, Will Exhibit at WPA Meeting

industrial lubricants,wholesale and brandedretail fuel, as well asgeneration of renewablefuels and power in theUnited States. The largestmember of the CommercialFueling Network, Flyers isalso the marketer for morethan 100 Chevron, Shell,Valero, and 76 branded fuelstations, and offerscommercial fueling at230,000 retail gas stationsnationwide with the FlyersFleet Card.

with Flyers for 12 years, 10 ofwhich were with the NorthernNevada team. She recentlyrelocated to Southern California tosupport our new acquisitions in LosAngeles, Inland Empire, and SanDiego. Flyers Energy, LLC operationsinclude transportation, distributionof passenger car, heavy duty, and

WPA in the News

DECEMBER 2015

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New Key Knife Chipper Package

Rotochopper and Key Knife announce the launch of the KeyKnife chipper knifepackage, which allows horizontal grinder owners to chip and grind with a singlemachine. “ Unlike other grinder to chipper conversion packages, the Rotochopper Key Knifesystem is simple, reliable and adds more flexibility to our B66,” said Steve Marksof Marks Lumber in Clancy, MT. “Because this system is simple, there are fewerproblems the operator has to deal with when downtime occurs. Also, with thissystem we can add more value added products to our line of products made withour B66. Simply said, as with other Rotochopper equipment, there is great value inthe Rotochoppper Key Knife package.” To switch from grinding to chipping, the operator does not need to swap the wholerotor drum or assemble a complex overlay onto the grinding rotor—the operatorsimply swaps the grinder tooth mounts with chipper knife mounts.

WPA in the News

The chipper knife package is abolt-in option that works with thestandard patented replaceablemount rotor for the RotochopperB-66 and B-66 E. This chipper knifesystem makes it simple todiversify into chippingapplications without a complexconversion kit or a secondmachine.

A single operator can switch from grinder teeth to chipper knives quickly andeasily:- No rod pullers or other specialized tools required (just a torque wrench)- No need to swap rotors, re-align sheaves, or re-tension drive belts- Just two bolts per knife mount and two bolts per knife clamp- Simplified Maintenance & Operation This system utilizes patented Key Knife® technology to minimize knifereplacement costs. Key Knife chipping inserts are indexable (reversible). By simplyloosening the knife clamp bolts, the operator can flip the knife to utilize a secondchipping edge. A Key Knife insert uses significantly less steel than a traditionalchipper knife, making handling and replacement easier. The chipper blade on eachmount is much narrower than traditional chipper knifes, helping to minimize themaintenance costs that can result from rocks, metal, and other contaminants.

Baker Products and KASCOWoodMaxx Blades Join Forces to Win

Shootout December 11, 2015 (Ellington, Missouri): A cold and rainy October day did notdampen Baker Products’ spirits (or performance) in this year’s Sawmill Shoot-Outat the Paul Bunyan show in Cambridge, Ohio. The team of sawyer Hank Somer andtailman Clay Hedrick operated a Baker Blue Streak 3665D mill and a KASCOMaxx-7 blade to out-shoot the completion at this year’s event. Baker Products andKASCO blades earned first place honors in the hydraulic mill category by sawingtheir way to an impressive production rate of 1,273 BF/hr and a productionoverrun of 1.07. For the competition Hank Somer brought his new Baker Blue Streak Model 3665Dfrom New Hampshire where he runs a one-man sawmill business. The Baker BlueStreak Model 3665D is a 65 HP Cummins diesel powered band mill that offers acutting capacity of 36 in. x 20 ft. (D x L). His blade of choice was KASCO’s Maxx-7blade. KASCO’s high-performance Maxx-7 blade features an aggressive 7-degreehook angle and 7/8” tooth spacing. Hank runs this blade on a daily basis andclaims he hasn’t found any other that outperforms the Maxx-7 blade from KASCO.

DECEMBER 2015

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WPA in the News

L&R's James Ruder Featured in Pallet Enterprise

L&R's James Ruder was featured in the"You Said It" feature of Pallet EnterpriseMagazine. To read the completeinterview, click here. James offered a range of valuableadvice. One was with respect to thepressure facing customers, and how thatcan sometimes translate intounacceptable behavior towards L&RPallet Service. According to James, one thing thecompany addressed in achieving theculture it was looking for was to revisit customer interactions. " I had customers who were really rude to my drivers and my management," Jamestold Pallet Enterprise. "At the beginning of this year I went through my customerlist and went to those that were treating my staff horribly and told them that Iwould not permit them to treat my people that way, that we were making culturalshifts and were seeking customers that want to partner with us. I lost some, butone of my bigger customers in particular realized what he was doing, apologized,and we now have one of the best relationships." Another noteworthy comment had to do with L&R's efforts to reduce staffturnover, which is now down to only one or two employees per month. " Like a lot of pallet companies," James said, "we used to go through 200 to 300employees a year. But in the last 90 days we’ve stopped turnover...and I thinkthat’s based on how we receive them and make them feel like part of what’s goingon." The company emphasises training, communication and discipline as part of itsemployeee retention efforts. L&R also offers a chaplaincy service as well asEnglish classes after work.

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Boise Cascade Sawmill EmbracesSHARP Safety Program

Boise Cascade Company’s sawmill in Pilot Rock has received an award forcompleting its second year of involvement in the Safety and Health AchievementRecognition Program (SHARP). SHARP provides an incentive for Oregon employers to work with their employeesto find and correct hazards, develop and implement effective safety and healthprograms, and continuously improve. The program aims to encourage employersto become self-sufficient in managing workplace safety and health issues.Currently, about 28 employer locations in Oregon participate in SHARP. That's inaddition to about 142 employers that have graduated from the program. Anemployer becomes a graduate when it completes five years of SHARP. Boise Cascade employs morethan 5,000 people acrossNorth America, includingabout 85 at the company'ssawmill in Pilot Rock. Thesawmill produces pineindustrials that areremanufactured by othercompanies into door andwindow framings. Travis Wart, senior humanresources specialist at thePilot Rock facility, said thefacility’s participation inSHARP was driven byemployees who wanted to“take that extra step and getto that next level of safety.” Oregon employers that havebeen in business for morethan one year are eligible toapply for SHARP regardless ofsize or type of business,although the program isprimarily designed to helpsmall and mid-sizebusinesses.

SHARP Program

Did you know that Edwards WoodProducts of Liberty, North Carolina,was the first sawmill and palletproducer in the state of NorthCarolina to achieve certification inthe Safety and Health AchievementRecognition Program (SHARP)? Thecompany was featured in a recentarticle in Pallet Enterprise (clickhere to read more.) To read frequently asked questionsabout SHARP, click here. To find out about SHARP at thestate level, click here.

DECEMBER 2015

Forests An Under-Recognized

Opportunity to Address ClimateChange in The U.S.

The Forest Climate Working Group (FCWG), a coalition of landowners, conservationorganizations, forestry advocates, forest products companies and scientistsdelivered a letter to President Obama calling for increased recognition of thecritical role American forests must play in meeting our greenhouse gas reductiontargets, following the Paris COP21 agreement. Accompanied with the letter, theFCWG released a toolkit to help states reduce greenhouse gas emissions byincreasing the capacity of forests and forest products to sequester and storecarbon. “We heard significant discussions about international forests during the climatenegotiations in Paris, but very little was focused on American forests,” said JadDaley, Director of Climate Conservation at the Trust for Public Land and co-chair ofthe FCWG. “Domestic forests currently offset 13 percent of our annual emissions,setting the foundation of our international greenhouse gas emissions agreementand will be essential to our ability to meet this agreement moving forward.”

Housing Data Shows

Positive Growth November housing starts bounced back from a seven-month low as building permits moved to afive-month high. Starts increased by 10.5 percent to a 1.17 million unit annual pace last month.Building permits were at their highest point since June, jumping 11 percent to 1.29 million. Withpermits leading starts, this signals support for further strong housing activity in the followingmonths. For the eighth consecutive month, housing starts have exceeded a one-million unit annual pace,marking the longest run since 2007. An average of 1.1 million units is expected for the currentyear, up from 1.0 million last year, and the highest total since 2007.

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To put our forest sink into context, “the 766 million acres of America’s forestscapture 38 percent of the total carbon emitted into our atmosphere from thecombustion of fossil fuels for electricity produced in this country each year,” saidCynthia West, Director of the Office of Sustainability and Climate Change for the U.S. Forest Service. “New U.S. Forest Service research shows our forests are at riskdue largely to increasing development pressures, combined with loss to wildfire inthe west.” sequester and store carbon. With 56 percent of the nation’s forests, owned andcared for by private owners and families, a strategy for working with theseindividuals is an essential component of any forest carbon strategy. “The USDA and Forest Service, through their Climate Smart Agriculture andForestry Building Blocks, have already taken significant steps to ensure Americanforests, especially our private forests, continue to play a role in mitigating climatechange,” said Rita Hite, Executive Vice President of the American ForestFoundation and co-chair of the FCWG. “More can be done at the federal level butthere is a significant opportunity at the state level as well.” To help states respond to the opportunity to pursue forest carbon strategies, theFCWG state toolkit builds on the USDA Building Blocks, providing states withpolicy recommendations to keep forests as forests, plant more trees, bettermanage existing forests, protect urban forests, and encourage the use of moreforests products. These policy recommendations include: Creating incentives for increased forest carbon through a state’s Clean Power Planallowance revenueMaintaining or increasing state tax incentives for forest conservationExpanding the use of wood products in construction The FCWG and its participants are committed to working with the administrationto improve forest policy, and with states across the country as they try to maintainand increase their forests’ ability to sequester and store carbon.

Domestic forests currentlyoffset 13 percent of our

annual emissions

DECEMBER 2015

To support and grow thiscrucial forest sink, theFCWG recommends a suiteof policy options both atthe federal and statelevels that can helpprivate forests and forestproducts continue to

Global Wood Production Received Largest Boost Since

the Recession - UN

Worldwide major wood production has undergone a revival over the past year as ithas seen the greatest leap since the global economic downturn of 2008-2009,according to the latest data released by the United Nations Food and AgricultureOrganization (FAO). “We are seeing now the highest growth of the global wood industries in the lastfive years, which is important to national economies and the wellbeing andlivelihoods of millions of forest-dependant people worldwide," said ThaisLinhares-Juvenal, head of the FAO’s Forest Economics and Statistics Team, whilerecognizing that “wood industries were among the hardest hit by the recent globaleconomic downturn in 2008-2009.”

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global production and consumption, while thesituation in Asia more than doubled in 2014 over the previous year, said the data. The study also noted that in 2014, paper production stagnated in Europe anddeclined in North America, due to the prevailing use of digital media. China,however, is by far the largest producer and consumer of paper and wood-basedpanels. Its paper production and consumption resumed growth in 2014, after apause in 2013, driving the overall growing trend in the Asia-Pacific region. Turning to wood-based panels and sawnwood, the study noted there has been aworldwide strong gain in both production and consumption, with wood-basedpanels surged most in production by six per cent. South America, attributing for 30 per cent of worldwide exports of wood pulp, hasgradually emerged as a new ‘big player’ in the global market, with new millsbeing built in Brazil, Chile, and Uruguay. The Statistical Yearbook of Forest Products, published by FAO annually, aims toprovide countries with informative tools to assess the forest products to globaland national economies and sustainable development, and to improve theirforest management and forestry policies.

Worldwide majorwood productionhas undergone a

revival over the pastyear as it has seen

the greatest leapsince the global

economic downturnof 2008-2009.

The new statistics showed that in 2014,major wood products, such as industrialroundwood, sawnwood, wood-based panelsand pulp and paper, have increased fromone to five per cent, surpassing the pre-recession levels of 2007. It is alsonoteworthy that the Asia-Pacific region,Latin America and the Caribbean have thefastest growth in production. Production of wood pellets, mainly used asfuel, increased dramatically in recent years,setting a new record in 2014 and growingby 16 per cent over the previous year,reaching 26 million metric tons. Europe andNorth America accounted for the most

DECEMBER 2015

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The Corrugated Pallets CompanyEstablishes Manufacturing and Sales

Presence Across the Caribbean I to replace heat treated wood pallets, but cost less, while being up to 75 percentlighter. TCPC and INTEGRAL, SRL are collaborating to sell corrugated pallet equipment inboth the Latin America and Caribbean marketplaces and recently attended theACCCSA ~ Conference & Trade Show, where representatives from 12 countriesviewed TCPC’s patented pallet design and automated equipment.“We’re proud to partner with INTEGRAL, SRL and support them as they introduceour low cost, durable and lightweight corrugated pallet offering to businessesacross Latin America and the Caribbean,” commented TCPC’s Mike MacDonald. “After reaching out to TCPC online, we visited their facility in late 2014 and werevery impressed with their product offerings and manufacturing process,”commented INTEGRAL, SRL’s Máximo Galván . “We also had the opportunity tomeet with several of TCPC’s suppliers and customers, which further helped usunderstand why the company was growing so strongly. The product, process andpeople are all excellent, and we are looking forward to a long, mutually rewardingpartnership with the TCPC team.” With manufacturing facilities in Toronto, Ontario and assembly arrangements inTN and southern CA (effective Summer 2015) The Corrugated Pallets Company(TCPC) has been the “go to” solution for customers who want a durable,lightweight alternative to new heat-treated wood pallets so they can lower costs,increase efficiency, protect worker safety, and reduce their environmentalfootprint.

The Corrugated Pallets Company (TCPC), a low-cost leader in manufacturing durable andlightweight corrugated pallets, has expanded itsmanufacturing and sales footprint into LatinAmerica and the Caribbean. Dominican Republic-based INTEGRAL, SRL isnow manufacturing TCPC’s corrugated palletsunder a licensing agreement that covers patentsowned by TCPC. The pallets manufactured byINTEGRAL, SRL are strong and durable enough

WPA Membership Drive Competition We are almost at the finish line for thisyear's membership drive. Now is the time fora final push to the finish line, or if you havenot participated, it is a time to getinvolved. Help others enjoy the benefits ofWPA membership by recruiting them in time for the 2016 Annual Meeting, January 15-19. In addition to valuable cash prizes, thewinner now also receives the membershiptrophy, presented at the Annual Meeting. A regular influx of new members helps maintain the strength of the WPA, as wellas to build on our reputation of being "the friendliest Association in pallets." Whenyou recruit new members, the entire WPA membership is the winner!

Pallets West Advertising Sponsors

Advance LumberNorth American Forest ProductsNorthwest HardwoodsPRSPallet Machinery GroupRotochopperTimber Products InspectionViking Engineering & Development

DECEMBER 2015

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