National Hardwood Magazine - May 2022

AHMI MEETING Continued

AHMI MEETING Continued according to Johnson’s data. In 2018, domestic grade lumber consumption was 2.222 billion board feet (BBF). Johnson reported that during 2021, lumber consumption was 1.954 BBF. While that was a drop from 2018, it was an improvement over 2020 when consumption fell to about 1.8 BBF. Johnson added that lumber consumption by the U.S. furniture industry, alone, peaked in 1997 at 3 billion board feet. However, in 2021, the consumption estimate was .373 billion board feet, which, he noted, is a loss of 2.627 billion board feet of domestic grade lumber usage. •Regarding specific Hardwood species, Johnson illustrated that from February 2018 to February of this year, Hard and Soft Maple prices were up more than 100 percent from the respective low points. These prices were for kiln-dried 4/4 FAS Nos. 1 and 2 White Hard Maple and Sap & Btr Soft Maple. 4/4 Poplar prices hit a record high in August 2021 at 35/M (price per thousand board feet) and 4/4 Hickory and Basswood prices at the time of Johnson’s presentation were at record highs. Meanwhile, wooden kitchen cabinet and countertop imports to the U.S. increased 21.9 percent to a record high from 2020-2021. His presentation showed that back in the early 2000s, the emphasis was on Oak cabinets. Then in the mid-2000s, design shifted to natural finished light woods. Design trends didn’t significantly Real American Hardwood Seeks Support The Real American Hardwood Coalition is in the final development of a consumer website to educate and encourage people to buy Hardwoods. RAHC members Amy Snell of the Wood Components Manufacturers Association and Ray Moistner of the Indiana Hardwood Lumbermen’s Association presented the update at the 2022 AHMI Annual Meeting. The group has completed its research, branding, industry website, and funding strategy. The emphasis now is the consumer website which should be launched this spring and funding for it and other work. Snell recapped the progress to date highshift again until years after the Great Recession when painted cabinets became a trend around 2013. This was followed in 2019 and 2020 with a sizeable dip in imports due to tariffs on Chinese imports, Johnson stated. •Solid Hardwood flooring shipments from U.S. manufacturers in 2021 were 20.6 percent higher than they were in 2020, said Johnson. This is the highest level for this product since 2007. His presentation illustrated that in 2021 U.S. market consumption of solid Hardwood flooring far outpaced imports, which had cornered considerable market share in the mid-2000s. Millwork saw an uptick in 2021 (0.453 BBF) over 2020 (0.431 BBF). So lumber consumption for millwork is getting close to being as high as it was in 2019, when it reached its highest level in nearly 10 years at 0.495 BBF. Johnson explained that from 2013 to 2021 lumber consumption for millwork rose 17.1 percent and in 2020-2021 it still gained ground at 5.1 percent despite the pandemic. •Regarding U.S. exports of Hardwood lumber, Johnson said 2021 total exports were just over 1.4 BBF. That is 8.4 percent higher than 2020 and 2.5 percent higher than 2019, but below 2016-2018 averages. Hardwood Federation Advocacy In 2022 Hardwood Federation Executive Director Dana Lee Cole said the group will deliver four key messages to Congress this year: •Forest products are part of the climate solution and must be counted in federal carbon accounting programs. •Tax and regulatory reforms must be favorable to growing and sustaining the Hardwood industry and facilitate passing family-owned businesses to the next generation. •Infrastructure and transportation legislation must address barriers to shipping over land and water. •Healthy export markets are key to industry success. HF advocates for a broad swath of issues, and we need to continually build relationships with lawmakers from diverse political and geographical backgrounds, Cole said. Policy impacting the Hardwood sector is rarely passed on a partisan level. Insurance Forum Covers Crucial Business Issues During the AHMI annual meeting, four AHMI member insurance professionals presented key details about issues the Hardwood industry is currently facing in 2022. Two takeaways were: the cost of insurance for the Hardwood sector is rising as carriers move away from offering coverage and company leaders must review policies to make certain they have adequate coverage. The four presentations were titled: (1) General Liability, Commercial Automobile, Workers’ Compensation: Joe Hughes of ECM Solutions (2) Umbrella / Excess Liability Coverage: Ryan Harman, Mountcastle Insurance (3) Cyber Security & Best Practices: Toye Oshoniyi and Duke Baldridge, Dominion Risk (4) Contractual Risk Transfer Agreements Specific to Logging / Hauling: Dawn Daum, McGriff Insurance. These presentations are available to view at www. appalachianhardwood.org and offer more details than can be reported here. The contact information for each presenter is included in their slides and readers of this publication are encouraged to contact them directly with questions or for more information. Please turn the page Barry Corcoran and Christy Siebert, ECM Solutions, Charlotte, NC; and Jeff Dougherty, Ally Global Logistics, Jacksonville, FL Nancy and Paul Stringer, Stringer Industries Inc., Tylertown, MS; and Kimm and Steve Merrick, and Connie and Troy Jamieson, Somerset Wood Products, Somerset, KY John Crites II, Allegheny Wood Products Inc., Petersburg, WV; Roy and Lynn Zangari, Meadow River Hardwood Lumber Co. LLC, Roanoke, VA; Bo Hammond, Collins Hardwood, Kane, PA; and Dean Alanko, Allegheny Wood Products Inc. Mark Haddix, Farm Credit of the Virginias, Elkins, WV; Jim Burris, Corley Mfg. Co., Chattanooga, TN; and Steve Hamer, Jim C. Hamer Co., Kenova, WV Ryan and Joy Harman, Mountcastle Insurance, Lexington, NC; and Andy Nuffer, DMSi Software/eLIMBS/TallyExpress, Winston-Salem, NC Roy and Kim Cummings, Cummings Lumber Company Inc., Troy, PA; and Paul Miller Jr., National Hardwood Magazine, Memphis, TN Stephen Zambo, Ally Global Logistics LLC, Jacksonville, FL; Bo Hammond, Collins Hardwood, Kane, PA; and Peter McCarty, TS Manufacturing Co., Dover-Foxcroft, ME Angela Hammond, Collins Hardwood, Kane, PA; Tom Sheets, Blue Ridge Lumber Co. LLC, Fishersville, VA; Jay and Reza Reese, Penn-Sylvan International Inc., Spartansburg, PA; and Tom Inman, Executive Director, AHMI, High Point, NC 34 MAY 2022 n NATIONAL HARDWOOD MAGAZINE MAY 2022 n NATIONAL HARDWOOD MAGAZINE 35