nelma - nawla boston - special edition - Miller Publishing Corporation

July/August 2012 Page 15SPECIAL EDITION -Continued from page 11last year’s NAWLA Special Editionwere enthusiastic about the free featurearticle and photos that they received inthe publication. This unique marketingtactic is also available this year.NAWLA, or North American WholesaleLumber Assoc., is an international tradeassociation with more than 650 leadingforest products and building materialindustry wholesalers, manufacturersand industry affiliated companiesthroughout the United States andCanada. NAWLA is dedicated toenhancing professionalism and efficiencythroughout the lumber distributionchannel and to the responsible use offorest resources. NAWLA membersserve as the unifying force for efficientforest products and building materialsdistribution.The forest and building products industrieswithin which NAWLA membersoperate has highly developed characteristicsthat help shape the role of both thewholesale distributor and the role ofNAWLA. The industry is highly diversifiedboth in terms of product and geography.Aside from species differences,products of the tree include solid lumber,veneer and non-veneer panels, andmanufactured products such as fencingand decking.Lumber wholesalers have evolved themost efficient distribution system in theworld, helping to make possible thewidespread use of wood products in theconstruction of residential, commercialand industrial buildings across theUnited States and Canada. NAWLA’srole is to aid wholesale distributors inaddressing and solving common industrychallenges in the areas of transportation,government and environmentalregulations, e-commerce and technologyand certainly ongoing education.For more information about being part of thisyear’s NAWLA Special Issue, contactRachel Stokes at 901-372-8280, or emailstokes@millerwoodtradepub.com.•Rolling Meadows, Ill. –The NorthAmerican Wholesale Lumber Association(NAWLA), located here, recently hostedDr. Lynn O. Michaelis, executive advisorwith RISI, for a webinar presentation entitled:“The Beginning of the END….of thePain!”Michaelis’ overall message was positive,heralding various bright spots in trendingissues related to the lumber industry.He re-capped his key messages of thepresentation by noting:• Prospects for sustained GDP andemployment growth look very positive;• The housing correction is on track,with multi-family leading the recoverythis time;• Domestic product demand improvesslowly – decline in export demand for2012;• Product prices remain near cashcosts with volatility as demand picksup momentum.Michaelis predicted the industry will experience“more upside than downside riskthrough 2015.”Some individual key notes Michaelis citedinclude the fact that while single familyhousing starts fell below 500,000, multifamilyhousing shares take up the slack,which is a positive signal. He noted thatunlike previous economic cycles, housingstarts are not responding to low interestWebinar Offers Positive Messagerates. Instead, housing is following growthin GDP and employment.The good news is that over the last sixmonths, employment has noticeablyimproved. The unemployment rate stoodat an average of 9.0 percent last year, andthis past February, it had declined to anaverage of 8.3 percent nationally,Michaelis said. The labor force (in millions)rose to 154.9 this past February, climbingfrom 153.1 in 2007 and 153.7 in 2011.Based on improving employment figures,Michaelis said, “Growth in employmentsuggests some improvement (in housing)in 2012 (and beyond).”He noted, too, that excess inventory ofhomes continues to decline as well.Michaelis said, “We could eliminate another500,000 units of excess (homes) thisyear.”He added that overall domestic growth is,and expects to be, healthy, but concernshave increased about global growth.Europe, especially the Southern Tier, isgoing into a recession, he said, and thedebate continues about how China willmanage a “soft” landing economically –given the role of construction there.However, he noted that China’s woodneeds are expected to grow in trend.Michaelis said two currencies are crucialto the forest products industry – theCanadian dollar and the Euro.U.S. government spending continues todrag down thedomestic economyas well, he said.New housing andremodeling willbe critical to therebound, andMichaelis said remodelingexpendituresare rebounding.He said that industryexperienced modestgrowth in 2012 comparedto 2011 andstronger growth isanticipated in 2013.Dr. Lynn O. Michaelis,RISIHe advised that exports are not a gamechanger for the lumber industry. Michaelissaid exports do help the industry, but notenough, and the bigger issue facing theindustry by 2015 will be capacity issues inCanada.He noted that lumber pricing outlooksare driven by:• Industry operating rate: margins;• Delivered cost of Canadian lumber:average mill cost plus freight;• Log costs for U.S. mills.Michaelis explained the short-term outlookhas an upside with no recession inthe near future, a very positive businessinvestment outlook and housing startscontributing to overall economic growth.•WASHINGTON SCENE -Continued from page 10supply chain still are faced with the realitythat any administrative action by EPAwill take months if not years to be put inplace and will be open to court challenge.“We believe that the best means of providingmuch-needed certainty to the situationis a favorable U.S. SupremeCourt ruling. Without Supreme Courtintervention, there will be considerableconfusion as states and EPA attempt tosort out how to comply. This only perpetuatesan atmosphere of uncertainty,which is harmful to our industry and its900,000 employees that deepened on asteady supply of fiber to make productsessential for everyday life,” Harman concluded.As an alternative to Supreme Courtreview or summary reversal, AF&PAasked the Supreme Court to considerdelaying a decision on the case untilEPA has issued its rulemaking.•