National Hardwood Magazine - November 2011

MUELLER BROS Timber,

MUELLER BROS Timber, Inc. News Developments EPPERSON EXPECTS MARGINAL GROWTH IN 2012 Tracey Mueller, Log Procurement SAW MILL AND TWIN BAND RESAW PLAIN SAWN AND RIFT & QTR IN RED OAK • WHITE OAK MANUFACTURERS OF: 4/4 - 8/4 GRADE LUMBER SPECIALIZING IN: • WALNUT • COTTONWOOD • SYCAMORE • HICKORY • RED OAK • WHITE OAK • SOFT MAPLE • HARD MAPLE • ASH 400,000’ DRY KILN CAPACITY 1,000,000’ DRY STORAGE PLANER STRAIGHT LINE RIP DOUBLE END TRIM EXPORT PACKAGING CONTAINER LOADING Randy Mueller Sales Kevin Mueller Mill Manager Grooved sticks used on all whitewoods and White Oak. P.O. BOX 175 OLD MONROE, MO 63369 PHONE: 636-665-5193 FAX: 636-665-5812 E-mail: randy@muellerbros.com Industry analyst Jerry Epperson of Mann, Armistead & Epperson Ltd., is now calling for a 2.9 percent increase in consumer spending on furniture and bedding this year. According to Epperson most of it is due to price increases rather than actual growth. He is, however, looking for gains of 4 percent in the coming year and 5.7 percent for 2013. “Without the distraction of the presidential election and with stronger existing home sales (above five million units), we expect the closest to normal activity the home furnishings industry has seen in almost six years in 2013,” he said. Epperson also expects consumer spending to continue growing at 4.1 percent in 2014 and 5 percent in 2015. The spending figure is projected at .3 billion this year and is forecast to top 0 billion in 2015. “We do not expect a double-dip recession, but agree with many that it has a 25 percent to 30 percent chance of occurring, most likely in early 2012—if at all,” he wrote in his new forecast. Basing his economic assumptions on the University of Michigan projections for 2011 and 2012 and using a blend of five other long-term forecasts for 2013-2015, he said he expects U.S. economic growth will reach or exceed 3 percent next year. That will finally give the economy a perceivable level of growth, he said. Epperson’s complete forecast is available at www.maeltd.com. A recent report from the Centre for Industrial Studies (CSIL), based in Milan, Italy, states retail furniture consumption has grown with an estimated worth of 9 million, up 29 percent from a year earlier. CSIL FORECASTS EXPANISION OF CHINESE MARKET According to CSIL, the China market will continue to expand, with real growth in furniture demand of 8 percent expected for 2011 and in the following year. An overview of the report includes several charts and tables covering trends of rising costs, trade barriers, challenges and changes in the marketplace. Factors such as production, demand, exports and imports are all discussed. Approximately 103 manufacturers and distributors are profiled in the report. For more information visit www.worldfurnitureonline.com/market-research/furniture-industry-china.html. GIBSON GUITAR UPDATE Gibson Guitar Corp., a large end user of Ebony, Rosewood and other hard-to-find imported woods, has been raided for the second time. The corporation’s first raid took place in 2009 at their Nashville operation. The new raid took place at the corporation’s Memphis, Tenn. facility. 8 Hardwoods Have Workability

News about North American industrial Hardwood consumers and overseas updates, including mergers, plant expansions, association activities and personnel Allegedly violating the Lacey Act, importing illegal woods, federal agents say Ebony and Rosewood exported from India to Gibson was “fraudulently” labeled to conceal a contravention of Indian law. Environmentalists, forest product manufacturers and lumber association representatives concur with the enforcement of the Lacey Act. Mark Barford of the National Hardwood Lumber Association was quoted in news reports as supporting the Lacey Act indicating that the low price of illegal wood makes it difficult for legitimate operations to compete. Another well-known guitar manufacturer said companies using exotic materials can and should abide by the law, which was amended in 2008 to apply to forest products. Certain politicians, however, are opposing the raids stating that Gibson has been subjected to intimidation during the armed raids. Henry Juszkiewicz, chief executive officer of the closely held company, said in an interview that a broker probably made a mistake in labeling the goods but that the sale was legal and approved by Indian authorities. Gibson’s seized items included guitars, wood and electronic records. HIGH QUALITY NORTHERN HARDWOODS SPECIALIZING IN HARD MAPLE & BIRCH GREEN AND KILN-DRIED LUMBER, S2S, S4S EASTERN WHITE CEDAR Capacity: 55 million MBF - Hardwood 8 million MBF kiln-dry annually 20 million MBF - Eastern White Cedar Certified Sustainable Products www.fsc.org FSC ® C081657 The mark of responsible forestry CRAWFORD FURNITURE FILES BANKRUPTCY PROTECTION Crawford Furniture Manufacturing, based in Jamestown, N.Y., recently closed its wood furniture plant and filed for Chapter 11 bankruptcy protection. The company operated for approximately 127 years. In a recent statement, officials of the firm said the bankruptcy filing would allow it to continue operating its businesses while company officials assess their operations. It also mentioned that the retail stores would remain open during the bankruptcy. “During this time, all Crawford Furniture store locations, warehouse and customer service departments will remain open and continue to operate,” stated a representative. According to the statement, all current orders will be delivered as scheduled and all warranties will remain valid. “During these difficult economic times, Crawford Furniture will continue to labor and find a way to keep selling a great American-made product,” the statement said. “We will fight for our employees and families of western New York.” Tel: (506) 632-7777 Tel: (506) 992-9020 Fax: (506) 992-9021 NOVEMBER/2011 9