steven milauskas

USDA FOREST SERVICE

State and Private Forestry

USDA FOREST SERVICE


Shifting SeasonsCollege of Menominee Nation

June 7, 2012

Steve Milauskas, Director

Shifting SeasonsCollege of Menominee Nation

June 7, 2012


USDA FOREST SERVICE State and Private ForestryUSDA FOREST SERVICE State and Private Forestry

WERC States - Eastern HardwoodsWERC States - Eastern Hardwoods

93% total Eastern forest = private + other public83% total Eastern forest = private only

162 Million Acres are in the Eastern Hardwood Forest Type


Wood Education and Resource CenterWood Education and Resource Center

Main Office, Training Annex, Shop and Rough Mill


WERC’s Mission WERC’s Mission

Enhance opportunities for sustained forest products production in the eastern hardwood forest region of the United States, by fostering interaction and information exchange with the forest products industry


WERC’s Primary Goals WERC’s Primary Goals

Improve knowledge, skills, and capacity of workforce and management

Increase communication, cooperation, and collaborative problem solving

Improve efficiency in manufacturing and utilization

Promote sustainable use of woody biomass for energy and products

Promote local and regional wood products business and employment by leasing gov. owned facilities & equipment.


WERC’s Mission & GoalsWERC’s Mission & Goals

Audience: Primary Hardwood Manufacturing Industry

(sawmills and related businesses)

Secondary Hardwood Manufacturing Industry

(furniture, kitchen cabinets, flooring, pallets, moulding, architectural woodworking, etc.)

Entrepreneurs, Small wood businesses, Woody biomass businesses, Arborists


WERC ClusterWERC Cluster

Facilities – offices, training, manufacturing

WERC

Training

Technology Transfer

Research

Work force - labor

InfrastructureForest Resources

Investment Capital

Public / Private Partnerships


WERC Promotes:WERC Promotes:

Tech transfer that is: practical, applied, creative and useful

Shorter-term projects with immediate industry impacts

Innovation & problem solving

Regional economic development


WERC CapacityWERC Capacity

Training & manufacturing facilities

Technical assistance

Grants opportunity

Current & past biomass projects

Dedicated staff


WERC’s Competitive Grant ProgramWERC’s Competitive Grant Program

One key to implementing mission and goals

Funded and partnered on a wide array of projects

WERC has funded 185 projects in 26 states since 2005 ($11.5 million), not including biomass conversion feasibility studies.

Grants Budget – approx. $1 million last five years

Overall WERC budget down 65% since FY2008

WERC FY 2011 Grant AwardsProject Org. State Award Direction

1 Reinventing Hardwood Markets NCSU NC 78,149 WERC

2 Educational Outreach – Business skills NCSU NC 28,975 WERC3 Vacuum Ash Treatments for Pests VA Tech. VA 50,993 WERC4 Hardwood Processing Efficiency WVU WV 69,968 WERC5 Thermowood Forum UMN MN 10,140 WERC6 Black Ash Basket Marketing ME Indian Alliance ME 70,000 WERC7 Multi-State Boiler Assessment SE MI RC&D MI 70,000 WO8 Renewable Heating – Job Corps Glacierland RC&D WI 70,000 WO9 Wood Fired Heating & Cooling DC Council Of Gov. DC 350,000 WO10 Wood Systems-User Group Needs No. Country RC&D NH 41,900 WO11 Biofuels Workshop NCSU NC 23,435 WO/WERC12 Green Product Innovations WVU WV 62,475 WO/WERC13 PA 2011 TPO Survey PA BOF PA 91,425 WO/CARP14 Mechanized Biomass Harvesters MO Forest Fndn. MO 35,800 WO/WERC15 Sustainable Energy-Bldg. Profess. BTEC DC 70,064 WO/WERC16 Community Biomass Assmt. Tools NY Farm Viability I. NY 39,892 WO/WERC


Funded WERC ProjectsFunded WERC Projects

Log & lumber scanning Use of underutilized species Plastic/wood composites Lean Manufacturing research & training Marketing handbooks & training Log bucking training China Import / export conference


Funded WERC Project ExamplesFunded WERC Project ExamplesUtilization of ash infested with emerald ash borer


Emerald Ash Borer InvasionEmerald Ash Borer Invasion


Firewood sanitation issues – reducing the threat of spreading invasive speciesFirewood sanitation issues – reducing the threat of spreading invasive species

Heat Sterilization of Ash Firewood for Thermal Eradication of EAB

Heat Treatment of Firewood – Meeting Phytosanitary Requirements

http://spfnic.fs.fed.us/werc/finalrpts/07-DG-114.pdf


Funded WERC Projects Funded WERC Projects

Wood Manufacturing Skill Standards, Evaluations, & Credentials

Industry-approved standards for the woodworking profession

Skill standards developed by Woodwork Career Alliance as a means to support the woodworking industry in preparing productive workers

Many partners and volunteers involved to bring this effort to reality via Woodwork Career Alliance of North America (http://woodworkcareer.org)

Architectural Woodwork Institute – FS grantee

Wisconsin Madison Area

Tech. College

Monona Grove H.S.

Madison West H.S.

Monroe H.S. DeLeers

Millwork Wisconsin

Built Burger Boat


4. Funded WERC Projects4. Funded WERC Projects


Wood Energy Technical AssistanceWood Energy Technical Assistance

Preliminary feasibility assessments Schools, hospitals, commercial buildings, industrial

buildings

Sullivan County School District Elementary and High School Complex March 9, 2010



Establishing Long-Term Fuel Supply Agreements for Wood Energy Facilities

- Empire State Forest Products Assoc.

- insight on establishing long-term supply agreements for wood energy facilities.

- Two business models identified:

* Diesel Fuel Adjustment

* Financing of Biomass Prod. Equip.

http://spfnic.fs.fed.us/werc/finalrpts/07-DG-105.pdf


Funded WERC ProjectsFunded WERC Projects

Using Industrial Clusters to Build an Urban Wood Utilization Program: A Twin City Case Study

- St. Paul/Minneapolis, MN

- Summarize wood utilization activities

http://www.dovetailinc.org/reportsview/2010/sustainable-forestry/pdr-steve-bratkovichp/urban-wood-utilization-and-industrial-cl


District Energy – St. Paul/MinneapolisDistrict Energy – St. Paul/Minneapolis

District heating – 185 buildings & 300 homes

District cooling – 95 buildings

90 megawatts – clean wood chips



Indiana Forest Products Community

- On-line industry directory

- http://www.indianaforestproducts.com/

USDA FOREST SERVICE


USDA FOREST SERVICE


WebinarsWebinars Ash urban wood utilization Energy cost impacts on hardwood manufacturing Mineral stain in red oak Community wood reclaimation Vacuum steam treatment of wood pallets Life cycle inventory tools Mechanized processing of urban trees Making wood pallets Carbon storage in wood products Computer technologies in furniture making Biomass utilization seminars - many in the last year


Other Items of InterestOther Items of Interest

Urban Forest Products Alliance Linked-in Group

Quarterly webcasts on ash-urban wood utilization (July 10, 2012)

WERC Update Newsletter Manufacturing and Marketing Lumber

and Related Products Using Thin-Kerf Sawmills by Dan Cassens, Purdue University



Project information location- WERC web site:

http://spfnic.fs.fed.us/werc/p_search.cfm


Where are we?


Reasons for Change


US DOL BLS EMPLOYMENT Industry: Wood products

NAICS Code: 321

US DOL BLS EMPLOYMENT Industry: Wood products

NAICS Code: 321

ALL EMPLOYEES, THOUSANDS

The wood product manufacturing subsector consists of these industry groups:

Sawmills and Wood Preservation: NAICS 3211 Veneer, Plywood, and Engineered Wood Product

Manufacturing: NAICS 3212 Other Wood Product Manufacturing: NAICS 3219

2002

Productivity


US DOL BLS EMPLOYMENT Industry: Furniture and related products

NAICS Code: 337

US DOL BLS EMPLOYMENT Industry: Furniture and related products

NAICS Code: 337

Industry: Furniture and related productsNAICS Code: 337Data Type: ALL EMPLOYEES, THOUSANDS

The furniture and related product manufacturing subsector consists of these industry groups:

Household and Institutional Furniture and Kitchen Cabinet Manufacturing: NAICS 3371

Office Furniture (including Fixtures) Manufacturing: NAICS 3372

Other Furniture Related Product Manufacturing: NAICS 3379


US DOL BLS EMPLOYMENT Industry: Paper and paper products

NAICS Code: 322

US DOL BLS EMPLOYMENT Industry: Paper and paper products

NAICS Code: 322

Pulp, Paper, and Paperboard Mills: NAICS 3221 Converted Paper Product Manufacturing: NAICS

3222

Productivity


US DOL BLS EMPLOYMENTIndustry: Forestry & Logging

NAICS Code: 113

Guess what th

e productivity

trend is

?

Number of companies


Re-shoring, Expansion, Start-upRe-shoring, Expansion, Start-up Furniture Expos featuring “Made in USA.” (Las Vegas, Highpoint,

Lancaster, PA)

Lincolnton Furniture, NC. 55 employees to 180. Stanley Furniture, NC. $4 M upgrade. Vaughan Basset, VA. $8M purchase & upgrade, 630 employees. Kimball Hospitality, IN. new mfc. La-Z-Boy added 3 new US production lines. To replace off-shore. Ashley furniture, NC. New $80M facility to employ 1,100.

1st quarter exports of hardwood lumber up 8.6% over 2011. Hancock Lumber, ME. 25% production to export, no layoffs at 3

mills.


ImplicationsImplications

Wood industry jobs recovery? Re-shoring? Productivity trend implications?

Employment vs. competitiveness Sustainable forest management-wood industry-

cultural & socio economic trends Skilled labor availability? Less participation in

workforce with high unemployment. Federal & state budgets - intense funds competition Training & education focus is shifting

USDA FOREST SERVICE


USDA FOREST SERVICE


Training & EducationTraining & EducationChallenges:• Industry & organizations must see value• Attracting people to on-site training• Funding expenses• Relevance in a perceived shrinking industry

Opportunities:• Increased emphasis on webinars• Training in conjunction with other events• Technology transfer through web-sites• Education through partnerships

USDA FOREST SERVICE


USDA FOREST SERVICE


Training & EducationTraining & Education

Training is now much more than teaching a worker how to operate a machine


Training & EducationTraining & Education

Mass customization Lean manufacturing & productivity Community support – branding, certification, local jobs,

sustainable forestry

Value-added-products and marketing Lifetime skills development – worker through mgt.

Strategic alliances – industry, gov’t, communities, NGO’s

Creativity & innovation = the future Education + raw material + creativity + people +

skills + capital + government policies + ???? = potential success.


WERC Roles– including biomassWERC Roles– including biomass

Technical assistance – wood processing & biomass

Facilitator roles Information clearinghouse / web-site Leadership on cutting edge and current issues in

wood utilization & marketing – invasives, urban, green, jobs, etc.

Industry re-shoring – new opportunities & workforce needs – woodworking Career Alliance

Hardwood check-off program Local/regional economic development Integrated program efforts across landscapes .


WERC - Looking AheadWERC - Looking Ahead Continue 35 state hardwood industry focus Focus on hardwood industry sustainability Enhanced woody biomass utilization role –Wood

Energy Assistance Program Economic dev. efforts (local / regional / 35 states) Workshops & webinars – on site & other locations Partnerships – internal & external Competitive Grants Program?


For more information contact:For more information contact:


E-mail: [email protected]

http://www.na.fs.fed.us/werc/

steven milauskas

Education

usda forest servicestate

usda forest service

forest products industry

total eastern forest

private forestrywercs

private forestrywood

werc fy

wide array of projects