National Hardwood Magazine - July 2014

HMA UPDATE PASSING IT

HMA UPDATE PASSING IT FORWARD Every day, a lot of information comes across my desk and through my email. It’s sometimes challenging, giving each “its due,” but I make every effort to read each communication because it just may be an important management or costsaving tool that ought to be shared with the HMA membership. That’s what they expect – added value in the form of business advancement strategies, industry information sharing and American Hardwood promotion. And so, many of you know that throughout the year HMA offers its members - via meetings and presentations, postings on www.HMAmembers.org, special reports, HMA’s monthly newsletters, and topic-specific communiques - information and strategic tools related to a variety of significant topics. Most recently, for example: Innovation - “Your ability to innovate – to problem solve, experiment, ideate, dazzle customers, drive growth, collaborate, think ahead of the curve, and otherwise add value – gives you and your organization a competitive edge that can never be taken away.” In today’s ultra-competitive world, it’s everyone’s business and a crucial tool for long-term growth. (Robert B. Tucker-The Innovation Resource-global consulting and executive development firm devoted exclusively to strategic innovation. www.innovationresource.com) Industry Analysis – During the last economic and business down turn, it’s been the industrial lumber products markets – pallets, railway ties, and board road/mat timbers - that have carried our industry. •In 2013, pallets make up 42.7 percent of the industrial market. It is projected that as the U.S. economy continues to recover, the pallet market will reflect that growth. •Zigzagging across the U.S. is 220,000 miles of railway tracking and at every 20 inches along that track is a cross-tie. Going forward, it is anticipated that increased North American oil production and imports will drive the need for new track. •Projected growth in market sectors utilizing board road/crane mats - oil/gas drilling sites, marine platforms/decking, pipelines, electric transmission/generation, bridges, excavation support – will drive demand for those products, as well. (Judd Johnson, Hardwood Market Report) Human Resource Best Practices - The final employer mandate Pay or Play rules for the Affordable Care Act have been issued and contain certain surprises. Full-time employee determinations have changed. The maximum 90 day waiting period for health coverage may not work the way you think. You might be penalized for your stand-alone cafeteria plan or HRA reimbursement account. YOU may be responsible for reporting, filing and paying fees related to certain plans. Be on audit alert. Certain government agencies are increasing the frequency and scope of benefit plan audits. Be sure to coordinate with your carriers. (“Managing Your Most Valuable Resource,” 2014 SHRM panel presentation) And my latest read – The New Manufacturing – “a new hybrid of manufacturing and services that blends mind and machine in new and exciting ways.” It’s all very interesting and Please turn to page 57 BY LINDA JOVANOVICH, EXECUTIVE VICE PRESIDENT, HARDWOOD MANUFACTURERS ASSOCIATION, PITTSBURGH, PA 412-244-0440 www.HMAmembers.org About the Hardwood Manufacturers Association The Hardwood Manufacturers Association is a national trade organization with membership limited to U.S. Hardwood lumber producers and processors. HMA is a member-driven association; providing member companies peer-networking opportunities, valuable information exchange and strategic management tools. The Association also conducts a focused, far-reaching promotion campaign, directed to both consumers and build professionals, extolling the beauty, environmental preference and lasting value of American Hardwood flooring, furniture, cabinetry and millwork. www.HMAmembers.org 14 JULY 2014 ■ NATIONAL HARDWOOD MAGAZINE

AHEC REPORT AHEC Works With Cutting Edge Designers To Showcase American Hardwoods The American Hardwood Export Council collaborated with five teams from design collective OKAY Studio to produce an eclectic mix of innovative designs for Clerkenwell Design Week 2014. The project celebrates the fifth edition of Clerkenwell Design Week and demonstrates the versatility of five American Hardwood species. Mathias Hahn, Liliana Ovalle, Ed Swan, Andrew Haythornthwaite and Peter Marigold (collaborating for this project), and partnership Hunting & Narud, each approached the project with their own unique style and the finished result is a diverse collection of fresh and invigorating pieces culminating in the exhibition, ‘FIVE’. The exhibition design itself is the brainchild of Andrew Haythornthwaite and is open at The SCIN Gallery, the only materials gallery on Old Street. In February this year, the design teams were presented with the five timbers - American Ash, Cherry, Hard Maple, Red Oak and Tulipwood and were asked to present a design inspired by these timbers and the number five. Demonstrating OKAY Studio’s creative flair, the designs are unique and inspired, studying the beauty, texture, color and performance of American Hardwoods through sculptures, furniture and tableware. Kent-based maker, Adam Kershaw, has been integral to the project, offering guidance during the design process, and eventually making three of the five projects – Apex Tables, Shift Series and Claroscuro. The fabrication of Tulou and Runcible was outsourced. Adam Kershaw, who is renowned for his craftsmanship and skill with wood comments, “Working with OKAY Studio has been an extremely refreshing experience; their perception of materials is intuitive and untainted by tradition and practicality, resulting in challenging and innovative designs. It was interesting to work with timber species that are not commonly specified by clients, yet are the most abundant and versatile timbers in the U.S. Hardwood forest and have the potential to make a much greater contribution to 21st century product design. It’s important that we share this knowledge with designers.” The material was provided by Morgan Timber based in Rochester, one of the biggest suppliers of quality timber in South East England. David Venables, European Director of the American Hardwood Export Council commented, “The vast temperate Hardwood forests of the Eastern United States provide an abundance and diversity of timber species. Given current furniture fashion you may be forgiven for thinking our forests are all about White Oak and Walnut. This is not the case; White Oak is not the most abundant Oak species and Walnut is less than 1 percent of the standing Hardwood trees in the forests. The five species we selected for this project (Ash, Maple, Red Oak, Tulipwood and Cherry), account for over 50 percent of the resource. Establishing a balance between market demand and the dynamic of the forest is essential to achieve true sustainability. I love the enthusiasm that OKAY Studio brought to this project and hope we have inspired them to use these sustainable Hardwoods in future product design.” ■ BY MICHAEL S. SNOW, EXECUTIVE DIRECTOR, AMERICAN HARDWOOD EXPORT COUNCIL RESTON, VA 703-435-2900 www.ahec.org JULY 2014 ■ NATIONAL HARDWOOD MAGAZINE 15