Mark BarfordExecutive DirectorNational HardwoodLumber AssociationMemphis, TN

National Hardwood Lumber Association Headquarters

Hardwood Growing Stock

1948 2010

Merchantable

Timber (> 12”) 400 BBF 1 TBF

Species mix

52% Red & White Oak

11% Poplar

Hardwood lumber use – Million BF

2000 2010Furniture 3,700 500 Cabinets 900 500 Flooring 500 600 Dim/mould 1,000 400Exports 1,100 700Industrial 6,800 4,300Total Prod.14.0 BBF 7.0 BBF

Hardwood lumber competition

1) World suppliers of hardwoodRussia, SE Asia, Eastern Europe

2) Substitute materialslong term BIGGEST threat

3) Our own selves! - Log Exports

4) False environmental claimsGreen Sourcing

Forest Certification – not lumber

FSC, SFI, Tree Farm, PEFC (European)

Industry will need to show:

1) Sourcing location

2) Product is legal

3) Location is sustainably managed

Bad news

• Housing – Current Production 500,000(was 2 million at peak)

• Pulp Mills - Never another new mill in US

• Shipping - Container Rates Skyrocket

• Log prices – Quick to move back up

Good news

• Housing – Pent up demand

• Wood Energy – Pellets/ethanol

• World GDP Stronger – More Exports

• Low interest rates

• Partnerships with other manufacturing groups

• Production to remain low

Outlook – Five years?

• Even smaller hardwood lumber industry

• Increased International business

• Increased NA hardwood forests certified

2010 NHLA

• Increased overseas grade training and inspection services

• Why North American Hardwoods brochure

• Hardwoods 101 for clerical workers

• Leadership Training for the Hardwoods Industry

• Inspector Training School in Michigan