No. 549 December 2014 WHA Board of Directors

Lee Jimerson President

Kurt Landwehr Vice President

Nils Dickmann Treasurer

Mike Lipke Immediate Past President

Doug Martin

Jamie Price

John Smith

Lindy Stallard

Sam Stenerson

Jeff Stoddard 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

Wood, the New Building Material

For all of you in the forest products industry this may shock you as much as it

did me while attending the annual meeting of the Washington Forest Protection

Association (WFPA) in Olympia November 6th. Dr. Thomas Maness, Dean of

the College of Forestry at Oregon State University made this observation during

his opening comments that emphasized building our future with wood: the most

natural resource.

He said wood is being featured throughout the world, and the Northwest

wood basket is well positioned to compete in global markets for “green

buildings” made from engineered wood products. Wood sequesters carbon,

perhaps for hundreds of years, and does not add to the possible deleterious effects

on the atmosphere as does concrete and steel.

The Northwest is the best place in the world to grow high value trees. The

worst thing that could happen is to not grow trees in the Northwest. As people

are part of the landscape, we are challenged as to how to live on the landscape

and not destroy it.

Michael Green, one of the strongest architectural advocates of using wood,

was featured in a video that showed multiple uses of wood. A Canadian

architect, he is designing multiple story structures employing the strength of

Cross Laminated Timber (CLT). Architects need to be educated on the multiple

uses of wood.

Washington Governor Jay Inslee, keynote speaker, said the forest products

industry is pivotal to answering the problem of increasing carbon pollution while

increasing the use of wood in construction. He is solidly behind the use of wood

building construction and urges all kinds of incentives be put on the table, such as

building codes, loan programs for housing, and economic development

opportunity.

Kevin Godbout, Weyerhaeuser Company, was introduced as the incoming

WFPA president replacing Norm Schaaf, Merrill & Ring. –Dave Sweitzer, Secretary /

Manager Western Hardwood Association

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Vanport International, Inc.

Contact: David Stallcop

PO Box 97

Boring, OR 97009

Phone: (503)663-4466

Fax: (503)663-2610

Web: www.vanport-intl.com

Email: david.stallcop@vanport-intl.com

Sponsor: Lee Jimerson, Colllins

West Coast hardwood lumber activity

is steady according to key players in the

industry there. Construction has picked up

just about everywhere and business

compared to a year ago is very good noted

a California supplier.

One Washington supplier says his current inventory

is at a reasonable level and prices are

up. Domestic hardwoods have been

climbing all year and because some

prices are very high, he expects a

crash to correct it, although not all the

way back to where they were before.

Competition was a main concern for an Oregon

contact who talked about the high cost of transportation.

While gas prices are high, transportation costs are going

to be high and since other industries also need

transportation, the competition for it is

high and it boils down to logistics. They

are working to manage product so that

trucks don’t go out empty or half full and

maximize route planning as part of the

logistics on their end.

Manufacturers, wholesalers, and

endusers are focusing their attention to

year-end and to the winter season and

early spring. It’s the time of year for

restocking inventories of whitewoods, so

most in Quebec feel that sawmill

production will likely increase through fall and winter.

Wet weather conditions delayed logging

recently in most parts of Ontario and

there did not seem to be any major

effects as supply was reported as being

steady. The threat of stain was a

possibility, however, causing some

concern for drying schedules.

Heading into 2015, the demand for Nor th

American hardwood species looks good, but not great.

In the U.S., official data show

improved economic growth and

employment levels, but most

Americans aren’t feeling this and are being cautious.

New home construction is flat and existing home sales

continue to lag behind 2013. Growth in remodeling and

commercial construction activity helped sustain

domestic hardwood demand during much of 2014, but

both markets appear to be slowing. Secondary wood

products manufacturers are stocked up with lumber and

have slowed purchases, and with their markets showing

signs of weakening, many expect to keep purchases low

through year-end.

Despite economic stagnation in Europe and slower

growth in China, U.S. hardwood lumber exports

continue to pace well ahead of last year’s record level,

including the strongest September shipments ever. Even

* Welcome New Member

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In This Issue:

if export growth slows during the next few months,

exports will remain a bright spot for North American

hardwood producers.

Alder – Steadily increasing demand from Western

distribution yards, cabinet manufacturers, and

Chinese endusers have kept Alder sales booming

during the last two years. Demand from Western

distributors will keep growing, as their business is

improving and Alder is a staple. However,

shipments to the cabinet sector will likely plateau

due to sluggish home construction and minimal

growth in remodeling.

Ash – Ash demand has held strong so far, despite

declining Red Oak prices.

Beech – Large price increases for most species from

2013 through mid-2014 drew more component and

institutional furniture manufacturers to Beech. With

Beech lumber prices remaining low, however,

sawmills continue to push most of their Beech into

ties and other industrial products offering higher

returns.

Cottonwood – Cottonwood exports have been slow

to Asia and Europe in the last two months, and that

probably won’t change in the near term, but with

Cottonwood production down this year, domestic

markets haven’t had to absorb any extra.

Poplar – Poplar sales have been strong for some

time, and while they might not expand much in the

months to come, neither will they contract..

Excerpted from –Johnson, Andy. "North American Hardwood

Species Forecast" Hardwood Review Express 14 (7 Nov. 2014):

n. pag. Print.

The USFS claims it exceeded its 2014 restoration,

timber goals. The Forest Service issued a press release

Thursday touting their restoration efforts in Fiscal Year

2014. "The Forest Service has made strategic

investments across all agency programs to advance our

efforts to create resilient forests and sustainable

communities," said U.S. Forest Service Chief Tom

Tidwell. "This work reduces the

wildland fire threat to communities

and firefighters and minimizes the risk

of forest pests and climate change,

while supporting American jobs and

rural economies." The numbers look

great - on the surface.

The Forest Service says they "reduced hazardous

fuels" on 1.7 million acres. According to the National

Interagency Fire Center, the Forest Service conducted

prescribed burns on 1.1 million acres this year, or about

64% of the acres that had "fuels reduction."

Interestingly, 81% of these acres were in the Southern

Region. It's hard to see how maintenance burns in pine

flatwoods address the pressing need to thin overstocked

stands in the Western U.S., where the bulk of the

agency's firefighting and NEPA budgets get consumed.

The U.S. Green Building Council is extending

the 2009 LEED rating system through October 31,

2016. This is a fast response to the survey conducted a

few weeks ago at the October Greenbuild conference,

which showed that the industry needs more time to

prepare. Nearly two-thirds of respondents reported that

they were "not ready" or "unsure" if they were ready to

pursue the elevated requirements of LEED v4.

International users, who account for about 50% of all

new LEED registrations, also requested more time.

According to Rick Fedrizzi, USGBC's CEO and

founding chair: “LEED v4 wasn’t designed to be easy.

It is the next generation of green building, and we are

confident the market will meet us there as they have in

years past.” - Source: Woodworking Network, October 29, 2014.

Chatham House Released New Reports On

Illegal Logging. Progress in the fight against illegal

logging has been slow in key wood-producing countries,

experts at Chatham House report. Recently-released

studies show that momentum has declined in Brazil.

While the country has invested in law enforcement,

flaws in the timber tracking system are undermining

efforts. Reports conclude that Ghana and Indonesia have

made at least some progress in reducing illegal logging

and improving forest governance. Recently, Laos began

to prioritize tackling illegal timber. - Source: Chatham

House, October 29, 2014.

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The Oregon Board of Forestry voted

unanimously Nov. 5 to proceed with a new plan to

create specific timber harvest and conservation zones on

600,000 acres of state-owned forests west of Portland

and along the north coast.

The Oregon Department of Forestry currently uses a

single management strategy to pursue both timber

revenue and conservation goals, but officials concluded

in 2012 that approach was not generating enough

money. The new concept is known as land allocation. It

grew out of recommendations from a stakeholder group

that included representatives from the timber industry,

environmental organizations, anglers and county

governments.

The U.S. EPA released the long awaited carbon

accounting framework for biomass. On cursory review

by the Hardwood Federation, the

documents released acknowledge

that biomass residuals, like

sawdust produced in our

hardwood mills, will be

considered a carbon neutral fuel source. This is a very

positive step.

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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.

Video can be used for course credit.

The benefits of beech from Europe are detailed in

European Beech: Durable, Sustainable and Versatile,

a video and online learning course presented by

Pollmeier Inc. The video discusses the benefits of

using more wood, not less, to lower carbon emissions. It identifies which hardwood species are the most abundant

and where some of the best managed certified hardwood forests are located.

In addition, the physical and performance properties of European beech are compared to eight other temperate

hardwoods, such as hard maple, white oak, red oak, cherry, yellow birch, alder, soft maple and black walnut.

The course is approved by the American Institute of Architects and other groups.

The video also covers life cycle assessment of wood, and how it is the only carbon-negative sustainable

building material. Characteristics of the world’s forests and the beech forests of Europe are also discussed,

along with the growth of European beech as the most available and accessible temperate hardwood. The video

describes such beech characteristics as redheart.

The Forest Stewardship Council (www.fsc.org) and the Programme for the Endorsement of Forest Certification

(www.pefc.org) are the most widely used certification programs in Europe and are described here.

Applications described for European beech include flooring, cabinets, doors and millwork, ceiling panels and trim,

and furniture. Surface treatments for European beech are also covered. For more information, contact Pollmeier

Inc., 503-452-5800, www.pollmeier-usa.com.

Fighting a wildfire requires a lot of manpower

and a lot of equipment, including helicopters and

airplanes for aerial support. The

problem with the humans in those

aircraft, however, is not only that

do they put their lives at risk—

and sometimes lose them—

they’re not actually very efficient.

Pilots need to do things like eat,

use the bathroom, and sleep. That

means spotter planes and water

bombing helicopters spend more

time on the tarmac than they do

actually fighting fires.

That’s why Lockheed Martin decided to take the

self-flying helicopter it developed for the battlefields of

Afghanistan and send it to the combustible forests of

the United States. The K-MAX, produced by Kaman

Aerospace and outfitted for autonomous flying by

Lockheed, flew thousands of missions in Afghanistan

between 2011 and 2014, carried more than 4.5 million

pounds of cargo, sometimes through areas that would

be considered unacceptably risky for human pilots. It

can carry up to 6,000 pounds of cargo at sea level and

4,300 pounds at 15,000 feet. Swap out a pallet of

military supplies for an enormous bucket of water, and

you’ve got a self-flying, fire-fighting chopper. - excepted

from Golson, Jordan. "Military's Self-Flying Helicopter Gets Modded

to Fight Wildfires | WIRED." Wired.com. Conde Nast Digital, 16 Nov.

0014. Web. 25 Nov. 2014.

The global economy has seen its share of

challenges this year. These include deflationary worries

in Europe, decelerating growth in China and declining

activity in South America. The U.S. economy grew 3.5

percent in the third quarter, and manufacturers are

largely upbeat about demand and production for the

coming months. October saw signs of progress for

manufacturers worldwide. –excepted from Nat’l Assoc. of

Manufacturers Global Manufacturing Economic Update, November 14,

2014

In a job openings and labor turnover survey, the

Bureau of Labor Statistics reported that manufacturers

hired 280,000 workers in September, a sharp uptick

after the soft 236,000 hires observed in August. The

September figure was the fastest pace in hiring since

November 2010.

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Upcoming Meetings

December 4, 2014 WHA Board Meeting Wilsonville, OR Email: wha@westernhardwood.org

December 4 -5, 2014 Measuring and Improving Timber Harvesting Productivity Portland, OR Email: amanda@westernforestry.org

December 8, 2014 Washington Hardwoods Commission Meeting Olympia, WA Email: whc@wahardwoodscomm.com

December 12,2014 Workshop-Interntional Marketing for Forest Products Companies Memphis, TN Email: b.miller@nhla.com

January 16-20, 2015 Western Pallet Association Annual Meeting Rancho Mirage, CA Email: wpa@westernpallet.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!

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Affordable pricing for members.

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Courtesy Lockheed

Martin

At the same time, the number of manufacturing separations—including layoffs, firings and retirements—also increased, rising from 237,000 to 268,000. Therefore, there were 12,000 net new hires (or hires minus separations) in September, an improvement from the net loss of 1,000 manufacturing employees in August. In addition, net hiring has averaged 15,600 per month over the past five months (May to September), which is progress from the 5,000 average over the five

months prior to that (December to April). –excepted from

Nat’l Assoc. of Manufacturers Monday Economic Report, November17, 2014

Senator Ron Wyden’s (D-OR) S.1784,

Representative Doc Hastings’ (R-WA) H.R. 1526, and

Senator John Barrasso’s (R-WY) S. 1966 all seek to

create logging and milling jobs, raise new revenues for

rural counties and mitigate wildfire risks. All three

have seen fierce opposition from conservation groups,

some sportsmen, and Democrats.

The 2015 Annual Convention will celebrate 60 years for

the Western Hardwood Association. It will be held in

Portland, Oregon. Input from the membership to the

Board of Directors is important in planning this exciting

convention. An email was sent to the membership with a

request for date preference and topics of interest. The date

has been selected but if you haven’t had a chance to

respond yet, please take a few minutes and email the

WHA office with any suggestions for topics of interest.

Date: August 17-20, 2015

Brief Agenda:

Monday – Welcome reception, Modera Hotel in

downtown Portland

Tuesday – Salmon derby on Columbia River and mill

tour followed by reception

Wednesday – Speakers on topical subjects and

exhibits at World Forestry Center, reception, dinner,

and auction

Thursday – Golf tournament and tour

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BUCK the Status Quo Sometimes You Have to Kiss

“Tradition” Good-Bye

By Rob Wilson

When we attend the movies, we frequently engage

in a willing suspension of disbelief, which enables us

to accept implausible scenarios, and enjoy the show. It

keeps us from yelling, “No way!” at the screen when

revolvers fire more than six shots, when car thieves

find the keys under the sun visor, and when a paperclip

can pick any lock.

Some people, however, don’t leave that ability at

the theater door.

Innovators willingly suspend disbelief - all the

time. It enables them to imagine airplanes and

telephones or Game Boys and Super Soakers. It frees

them from the boundaries that contain most of us, so

they can pursue ideas that others think are

preposterous. As M. C. Escher, the artist famous for

his drawings of impossible structures, put it, “Only

those who attempt the absurd will achieve the

impossible.”

One of the cardinal characteristics of creative

thinkers is their willingness to abandon the traditional

ways of viewing things. They question authority, and

challenge the status quo. They ask questions, like:

Why does it have to be this way? Why can’t it be that

way?

Some who have gone against the prevailing

beliefs, have done so at their own demise. Galileo

famously went against the Catholic Church by

defending the theory that the earth revolves around the

sun instead of vice versa. He was tortured and

sentenced to life in prison for his differing views.

Sometimes it’s necessary to go against the status

quo. Henry Ford said, "If I had asked my customers

what they wanted, they would have said a faster

horse."

However, innovators cannot always ignore the

status quo. Culturally speaking. If you travel the road

of adversity in a culture that is not aligned with your

way of thinking... bottom line culture always wins.”

Unfortunately, some companies protect the status

quo to their own detriment. Paul Paetz, CEO of

Innovative Disruption, Inc., offers this example:

“Kodak invented the digital camera in 1975, but

decided it wasn't good enough to commercialize and

that it would undermine their film, paper and

chemistry businesses. So, they did nothing with it,

allowing Sony to be first to market with a digital

camera in 1981.” Today Kodak is facing bankruptcy.

Challenging the status quo isn’t all about science

and business; it even works in fields as rigid as

religion. My friend, Lisa Leeper, told me, “John

Eldredge, of Ransomed Heart, recast completely for

me what it means to be a Christian by putting it all in

terms of a relationship with a loving God who's

romancing me, rather than me trying to appease a

forbidding, disappointed judge.”

I love the story of Billy Beane, General Manager

of the Oakland Athletics, who went against the grain in

sports. It is told in detail in the book and movie titled,

Moneyball. Beane did not have the budget to recruit

top players for his team. So, he used player statistics to

acquire team members rather than the traditional

method of subjective scouting. It enabled him to get

talented, yet undervalued players, and build a winning

team.

The good news is that new products are introduced

to the market every year by small business owners

who are not content with the way things are. Jake

Rothschild, of Ohmgbrands, was told that it was

impossible to create a non-dairy ice cream with the

pleasing texture of the real thing. Unwilling to accept

that, he experimented for five years. Using a

combination of almond milk, coconut milk, avocado

and plantain, he came up with a formula that he calls

Joyscream. It’s a success. I tasted Joyscream; and it

really does have the taste and texture of ice cream.

Just because things are going well, doesn’t mean

you shouldn’t question authority or challenge the

status quo. There’s always room for improvement -

whether it is in business or your personal life - asking

questions may enlighten you to problems before they

occur. Speaker bureau owner, Andrea Gold says,

"Status quo living does not allow for challenging one's

beliefs and habits." - excerpt—Robert Evans Wilson, Jr. is an

author, humorist and innovation consultant. He works with companies

that want to be more competitive and with people who want to think

like innovators. For more information on Robert, please visit http://

www.jumpstartyourmeeting.com

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