by Web Editor | Sep 7, 2018 | News
In a recent message from the National Hardwood Lumber Association encouraging member companies to contact representatives in Washington regarding the tariff situation, NHLA passed on this information from the Hardwood Federation on the importance of the wood products industry to the United States.
The wood products industry in the United States is an important contributor to the U.S. economy, accounting for approximately 4 percent of the total U.S. manufacturing GDP. Wood products companies are among the top ten manufacturing sector employers in 47 states, producing $210 billion in products annually.
The industry employs nearly 900,000 people; more than the automotive, chemicals and plastics industries. Many of them are in rural areas where employment opportunities are limited.
Hardwood is an important sub-sector of the wood products industry and has a heavy reliance on export markets for its survival.
In 2017, U.S. hardwood producers shipped $4.04 billion worth of U.S. products to global markets; $2.09 billion to Greater China, including Hong Kong and Macau. Combined, China, the NAFTA countries and the E.U. make up 82 percent of hardwood exports. Dependable, long-term export markets are vital to the sustainability of the hardwood industry. In 2017, the U.S. had a trade surplus of $1.475 billion in hardwood lumber, up from $1.1 billion in 2015.
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/how-important-us-wood-products-industry?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news
by Web Editor | Jun 11, 2018 | News
Hardwood manufacturers are looking at positive growth continuing in 2018, but they need to expect rising prices for both hardwood lumber and panel products.
According to a report from Forecon Inc., “Lumber prices for our major (by value) species have all shown heavy demand, and most have seen a consistent upward trend in price throughout 2017 and certainly coming into 2018.” Forecon Inc. is one of the oldest established professional forestry consulting firms operating in the hardwood regions of the Eastern United States.
Forecon is reporting high demand for ash lumber in the face of concerns about the emerald ash borer damaging ash timber resources. Another hardwood on the rise is black cherry, which is seeing higher demand, especially from export markets, particularly from China and other Asian countries. But there is also elevated demand in the domestic market.
There is continuing strong demand for hard maple, especially green lumber (not kiln-dried), and reports are that there has been a specific increase in demand from cabinet manufacturers. This is another case where strong export demand, especially in Asia, continues to boost the price. Soft maple is not in as much demand as hard maple, with prices actually dropping a bit in the first half of this year.
One of the steadiest and strongest species of all continues to be red oak, which has set record export levels in volume and dollars this past year, and both international and domestic are staying strong in 2018. Forecon predicts sustained high prices for oak, keeping prices high and possibly climbing even higher into the summer months.
Read more on this from Woodworking Network at https://www.woodworkingnetwork.com/news/woodworking-industry-news/higher-prices-seen-hardwood-trends.
by Web Editor | Oct 30, 2015 | News
There will be no Hardwood Checkoff promotions program.
The U.S. Department of Agriculture has stopped the rulemaking process on the controversial “Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order.” Published in the Oct. 28 Federal Register, the notice from the USDA’s Agricultural Marketing Service states: “Based on comments received, outstanding substantive questions and significant proposed modifications from stakeholders, USDA is terminating the proceeding.” The termination is effective Oct. 29.
Originally published in the Federal Register in November 2013, the proposed Hardwood Checkoff sought to set a tax on lumber producers to help promote wood sales, similar to the “Got Milk?” and “Pork: The Other White Meat” ad programs. The USDA said it received more than 900 comments to the original proposal, the majority of which opposed the program.
A supplemental notice was issued in June 2015, with comments collected through Sept. 7. The sponsoring Blue Ribbon Committee also submitted revisions in September in an attempt to gain the necessary support for the program. Those revisions, which included the removal of plywood, flooring and green mills, and the scaling back of fees, would have reduced the generated revenues significantly below the $10 million sought in the original proposal.
However, the USDA said, “In response to the supplemental notice, USDA received over 300 comments; a majority of the comments continued to oppose the program. Based on all the comments received, outstanding substantive questions and significant proposed modifications to the proposed program from stakeholders, USDA is terminating the proceeding. This action also terminates the proposed rules on the referendum procedures.”
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/usda-kills-hardwood-checkoff-program?ss=news,news,woodworking_industry_news,news,almanac_market_data,news
by Web Editor | Sep 11, 2015 | News
Plywood, flooring and green mills would be removed and fees would be scaled back under a simplified proposal for the Hardwood Checkoff program – an ad promotion program for hardwood lumber manufacturers similar to the ‘Got Milk’ program run by milk producers. The proposed changes to the “Hardwood Lumber and Hardwood Plywood Promotion, Research, and Information Order” would result in program funding being cut from an estimated $10 million down to around $3 million to $4 million.
Hardwood Checkoff sponsor The Blue Ribbon Committee submitted a letter to the USDA dated Sept. 7 calling for the changes. The public comment period closed Sept. 9, with more than 1,300 woodworkers weighing in on the USDA’s June 9 re-proposal of the Hardwood Checkoff.
The latest changes involve a notable reduction in the scope of the program — from the original 1,426 mills targeted to approximately 375 mills selling kiln-dried lumber only. The eligible mills would be assessed at a flat rate of $.50 per $1,000 in sales, while mills under $2 million would continue to be exempted.
According to the BRC, “The changes we are recommending would significantly reduce [the checkoff], resulting in a roughly $3 to $4 million annual program…we would point out that even this lowered amount is over 10 times what has ever been collected through voluntary programs in the past.” The committee also noted the greater ability to leverage checkoff funds through building on the programs already begun by the softwood and paper checkoffs.
The BRC said opposition to the original proposal convinced it “that the target would need to be reduced.” Specifically, the BRC agreed to remove green mills, plywood, and unfinished flooring from the program, and to simplify the assessment rate to one calculation, lowered from $1 to $.50 per $1,000 in sales.
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/plywood-flooring-dropped-hardwood-checkoff-proposal?ss=news,news,woodworking_industry_news,news,almanac_market_data,news
by Web Editor | Apr 22, 2015 | News
Total exports of U.S. hardwood lumber and veneer to the Middle East and North Africa (MENA) region reached a record USD 108.93 million for the year 2014, according to the American Hardwood Export Council (AHEC), the leading international trade association for the American hardwood industry. The statistics, which have been compiled from the latest data released by the United States Department of Agriculture (USDA), reveal an overall 20 percent increase over 2013 figures. The announcement was made on the sidelines of the Dubai WoodShow 2015 where AHEC is hosting the largest ever American Hardwood Pavilion, featuring twenty-one U.S. hardwood lumber and veneer exporters.
According to the data released, exports of American hardwood lumber reached a value of USD 79.07 million and a volume of 98,425 cubic meters during 2014. This equates to an increase in value of 23 percent over 2013 and an increase in volume of 8 percent. Direct exports of U.S. hardwood veneers to the MENA region reached a total value of USD 29.86 million last year, rising by 12 percent from 2013. However, it is important to note that American hardwood veneers are also shipped to the region from European countries and China, while veneers are also produced in the region – notably in Turkey – from imported American hardwood logs. U.S. hardwood log exports to the MENA region reached a total volume of 34,957 cubic meters and a value of USD 20.47 million in 2014.
Commenting on the record exports to the region, Roderick Wiles, AHEC Director for Africa, Middle East, South Asia and Oceania, said: “The most significant increases in shipments of U.S. hardwood lumber were seen in the United Arab Emirates (up by 48 percent to 15,723 cubic meters), Egypt (up by 22 percent to 11,614 cubic meters), Jordan (up by 18 percent to 5,949 cubic meters), Lebanon (up by 23 percent to 4,735 cubic meters), Qatar (up by 55 percent to 3,015 cubic meters) and Morocco (up by 31 per cent to 2,329 cubic meters). However, a marginal downturn in volume of only 2 percent was seen in shipments to Turkey, which reached 12,700 cubic meters and a slight downturn was seen in shipments to Saudi Arabia, which reached 10,513 cubic meters.”
From Zawya: https://www.zawya.com/story/Exports_of_US_hardwood_lumber_to_MENA_reaches_record_USD10893m_in_2014-ZAWYA20150415105310/
