NHLA: How Important Is The U.S. Wood Products Industry?

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

Pacific Northwest: Study Touts Jobs Growth Tied To Cross-Laminated Timber

The production of cross-laminated timber, or CLT, has the potential to create significant job growth in the Pacific Northwest, according to a study published in July 2017 by Oregon BEST, a Portland-based nonprofit.

CLT is made of layers of glued 2-inch-thick dimensional wood crossing over each other at a 90-degree angle, creating a strong panel that can be used in tall buildings.

The 110-page study, “Advanced Wood Product Manufacturing Study for Cross-Laminated Timber Acceleration in Oregon and SW Washington,” was funded by $120,000 from the U.S. Economic Development Administration. The study included wood products companies from across the region, including D.R. Johnson in Riddle, the first structurally certified CLT producer in the U.S.

Valerie Johnson, president of D.R. Johnson, said she agrees with the study that cross-laminated timber will increase employment for rural areas in Oregon like Douglas County. D.R. Johnson started its first glue-laminated timber, or glulam, plant in 1967 in Riddle, and began producing cross-laminated timber in fall 2015.

“The community is part of the fabric of this company. It’s not only where our employees live it’s where our families have grown up and continue to live, and making this a successful venture is really important to us,” Johnson said. “We’re giving it all we can because we really want it to be successful.”

From Treesource: https://treesource.org/news/goods-and-services/cross-laminated-timber-jobs/

Timber Construction Has Mill Machinery Rolling

Timber construction is opening a new market that has been keeping lumber and milling machinery busy at a growing number of wood products companies, including Montreal’s Nordic Structures, Sauter Timber in Rockwood, Tennessee, SmartLam, in Columbia Falls, Montana, and D.R. Johnson, in Portland, Oregon.

Oregon-based D.R. Johnson Wood Innovations, a subsidiary of D.R. Johnson, specializes in the manufacture of cross-laminated timber, or CLT, and glue-laminated beams from Douglas fir and Alaskan yellow cedar. D.R. Johnson Wood was the first U.S. company to receive APA/ANSI certification to manufacture structural CLT panels – and CEO Valerie Johnson plans to help grow the U.S. market.

D.R. Johnson has received the first U.S. certification to manufacture cross-laminated timbers (CLT) under a new standard approved last year by the American National Standards Institute. D.R. Johnson is one of only three North American companies certified by the Engineered Wood Association to construct CLT for use in buildings.

Johnson’s company employs 125 at a traditional sawmill and laminating plant, which was recently expanded by 13,000 square feet for increased CLT production. They’re currently fielding calls from hopeful builders, and manufacturing samples to be tested for fire safety and structural quality. One recent new wood construction project is a 14-story wooden apartment tower being built in Portland, Oregon.

From Woodworking Network: https://www.woodworkingnetwork.com/wood/pricing-supply/timber-construction-has-lumber-milling-machinery-rolling

Idaho Grant Helps College Train Woodworkers, Address Skill Gaps

North Idaho College has been awarded a $482,582 grant by the Idaho Department of Labor to train more than 200 workers in the wood products manufacturing industry.

The two-year grant is a partnership with Lewis-Clark State College and five wood products manufacturing companies in North Idaho. The positions will pay wages ranging from $15 to $25 per hour plus employer-assisted medical benefits.

“This grant will go a long way in training the next generation of wood products manufacturing workers,” said NIC President Rick MacLennan. “These are solid, high-paying jobs and an outstanding opportunity for more than 200 people in North Idaho. We’re grateful for the Idaho Department of Labor’s foresight and the hard work put in by many people to make this grant a reality.”

The funds will be used to address skill gaps for high-wage, high-demand occupations in the forest products industry and increase the employment and wages of Idaho workers in mostly rural areas. The project also supports the Apprenticeship Idaho program, which expands innovative apprenticeships into high-growth occupations and industries. Idaho Forest Group, Potlatch Land and Lumber LLC, Stimson Lumber Co., Empire Lumber Co. and Plummer Forest Products (a total of 11 mills) are the five business partners in the grant. A match is required from industry partners, who gave a total of $141,834.61 in cash and in-kind donations.

The North Idaho College Wood Products Center of Excellence will provide training along with structured on-site training at the mills.

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/grant-helps-college-train-200-woodworkers-addresses-skill-gap?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news

Competition Drives Oregon Mill Investments

To be competitive in the wood products industry, companies must stay on the cutting edge. But to get to the forefront, wood products companies must invest in their production facilities to increase automation and efficiency, and to lower manufacturing costs, experts say.

“It’s a competitive market,” said Jon Anderson, president and publisher of Random Lengths, a wood products industry trade publication based in Eugene. “Unless people are investing in their plants, they’re going to fall behind and, ultimately, fall by the wayside probably in the tougher markets.”

In the past couple of years, Swanson Group in Springfield, Seneca Sawmill in Eugene, Weyerhaeuser in Eugene, and International Paper in Springfield have made major investments in their facilities totaling about $273 million. Such upgrades are part of a trend throughout the North American woods products industry, Anderson said. Wood products companies in the Pacific Northwest, Canada and the southern United States have improved their operations, he said.

The improvements can help firms capture market share during strong markets and allow them to stay afloat when the economy weakens. “It’s the more efficient, more productive producer that is going to survive the downturns,” Anderson said. “We’re not in a downturn now, but most of these operators have gone through ups and downs in their time, and they are going to get ready for the next one.”

Seneca Sawmill on Highway 99 in Eugene is nearing the end of a major facilities renovation, including the installation of new kilns, revamping its shipping and loading facility and expanding its log yard. Early this year, the company plans to upgrade its planer, the equipment that smooths lumber. By the time it’s finished, the firm will have spent $63 million on improving its operations.

From The Register-Guard: https://registerguard.com/rg/business/bluechip/35084194-62/competition-drives-mill-investments.html.csp