hm - Aug13 - cover.indd - National Hardwood Lumber Association

EXECUTIVE DIRECTOR’S
MESSAGE
POSITIVE HARDWOOD INDUSTRY NEWS
INSPIRES STRATEGIC PLANNING
First, the good news; recent industry reports indicate what most of the hardwood lumber
industry has experienced first-hand, increased demand and corresponding prices. Markets have
increased in all segments including housing, furniture, cabinets, exports and industrial use. In
fact, housing is showing a nearly 30 percent increase and flooring shipments have increased
more than 20 percent so far this year. Cabinet sales are up more than 15 percent, and exports
continue to show improvement by more than 5 percent. In the industrial area, the pallet
industry increased its position as the top consumer of hardwoods, while railway ties and crane
mats continue steady consumption. Wow! Is this the real recovery
And now, the bad news; the industry is not prepared to meet the new increases in demand.
For a variety of reasons, the industry as a whole is not able to “gear up” production. Some of the
major reasons being log supply, which is so heavily dependent on weather and loggers as well
as money issues, as banks are still reeling from the big hits of the past five years which makes
for money lending reluctance, especially to an industry such as ours which is hard to predict.
Other reasons include labor supply, timber quality and the big one – market uncertainty.
So now is the time to do some strategic planning. Like all good strategic planning, company
leaders need to begin by coming to a consensus as to their best guess for the future demand of
product. Specifically, where will the demand come from, and what product(s) will companies
need to produce. For example, with the increase in the industrial use of hardwood, would a
mill be best suited to concentrate on low grade production If the Asian market continues to
grow, how does a company position itself to benefit from that growing market Where will the
demand for upper grades shift if the Europeans lag behind the recovery
Strategic planning is really strategic thinking. NHLA will utilize its biennial (every two year)
planning session this November to dig down into some of these issues and prepare for those
same needs and opportunities. How does NHLA keep the Inspection Service Program modern
What will the Inspector Training School look like in the years ahead and how do we increase
attendance Is the Annual Convention meeting current but also future needs What changes
does the Association staff need to make to better serve the members in general All of these
questions and more will be part of the upcoming NHLA strategic planning efforts.
Markets have increased
in all segments including
housing, furniture, cabinets,
exports and industrial use.
The industry and its associations need to prepare to meet the needs of its customers in the most
efficient and effective manner. I will report back on the developments of the Association and
I invite you to let us know of your company’s strategic plans so that we may work together to
realize the continued growth potential ahead.
Sincerely,
Mark Barford, CAE, Executive Director
National Hardwood Lumber Association
www.nhla.com
6 AUGUST 2013 HARDWOOD MATTERS WWW.NHLA.COM