Registration - Western HardwoodLumber, millwork, and finished products will be highlighted. Topical information, training seminars and a mill tour will also be featured during the

No. 527 February 2013 WHA Board of Directors Mike Lipke President

Lee Jimerson Vice President

Kurt Landwehr Treasurer

Darrin Hastings Immediate Past President

Greg Antle Adam Brennan Gevin Brown Nils Dickmann Jeff Marthaller Lindy Stallard David Sweitzer Secretary/Manager P.O. Box 1095 Camas, WA 98607 Ph: (360) 835-1600 Fax: (360) 835-1900 Web: www.westernhardwood.org Email: [email protected]

Registration

An estimated 300 Asian, European and U.S. East Coast buyers will be exposed to a smorgasbord of western hardwoods from primary producers, secondary producers, and wholesalers, plus importers and exporters. More than 30 exhibitors will be available to show over a dozen western hardwood species. Lumber, millwork, and finished products will be highlighted. Topical information, training seminars and a mill tour will also be featured during the three-day event.

The convention will open April 30th with keynote speaker, Representative Ja e Herrera Beutler (R-WA). Herrera-Beutler will address regulations and political climate affecting harvest and shipment of NW hardwoods. She was elected to Congress in 2010 and has developed a record of working productively with both Republicans and Democrats on important issues. During her first term in Congress she introduced the "Small Business Opportunities Act" -- a bipartisan reform to the federal contracting process that increases opportunities for thousands of America's small businesses. This initiative was included in the 2013 defense authorization bill that the President signed into law on January 2, 2013. She also spearheaded a bipartisan effort to protect Southwest Washington manufacturing and forest-product industry jobs from a costly government regulation known as the “Forest Roads Rule.”

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OREGON LUMBER Manufacturer. PO Box 711 Lake Oswego, OR 97034 Contact: Charles Couch Ph: (800) 824-5671 Fax: (541) 672-1600 Web: www.oregonlumber.com Email: [email protected]

“A pound of pluck is worth a ton of luck.” - James A Garfield

After some improvements

in late 2012, industrial production declined in January. Manufacturing activity fell 0.4 percent, according to the Federal Reserve Board, with reduced production in motor vehicles pushing the index lower. Year-over-year, manufacturing production was up just 1.7 percent, well below the 6.3 percent pace of January 2011 or the 5.2 percent pace of January 2012.

In contrast to the industrial production figures, the Empire State Manufacturing Survey showed improvements in activity in January. This was the first non-contracting month for the New York Federal Reserve Bank’s District since July, led by improved sales and increased expectations. Consumers and small businesses were slightly more upbeat in the most recent sentiment surveys, and yet, they continue to highlight persistent

* Welcome New Member * Legislative Update

* Outlook * Get Motivated * Upcoming Events

In This Issue: Jo in WHA

First me membership is $150 the first year and for a limited me, $150 for the second year also.

The WHA is the only organiza on dedicated exclusively to the availability and promo on of Western Hardwoods. Membership benefits include: online membership directory lis ng one free newsle er ad company profile in newsle er our monthly email newsle er important industry updates by email a free banner ad on WHA’s website cost effec ve newsle er adver sing networking at the Annual Mee ng discounts on Associa on mee ng registra on poli cally ac ve through the Hardwood

Federa on

Joining is quick and easy. Use the online membership applica on and simply pay by credit card, www.westernhardwood.org.

Find us on Facebook!

Sponsors, Exhibitors and Partners

April 30 - May 2, 2013 • DoubleTree Lloyd Center • Portland, OR

Full page ad in program book, logo on souvenir carry bag, feature in promotion materials, recognition in monthly newsletter, 3 free registrations, free premier exhibit space, free banquet, on- site banner.

¾ page ad in program book, logo on souvenir carry bag, feature in promotion materials, recognition in monthly newsletter, 2 free registrations, free premier exhibit space, on site banner.

½ page ad in program book, logo on souvenir carry bag, feature in promotion materials, recognition in monthly newsletter, 1 free registration, on-site banner.

¼ page ad in program book, logo on souvenir carry bag, feature in promotion materials and on-site sponsor banner, recognition in monthly newsletter, 1 free registration.

⅛ page ad in program book, logo on souvenir carry bag, feature in promotion materials and on-site sponsor banner, recognition in monthly newsletter.

Alder

Pacific Albus

Big Leaf Maple

Oak

Madrone

$10,000

$5,000

$3,000

$1,000

$500

An estimated 300 Asian, European and U.S. East Coast buyers will be exposed to a smorgasbord of western hardwoods from primary producers, secondary producers, and wholesalers, plus importers and exporters. More than 30 exhibitors will be available to show over a dozen western hardwood species. Lumber, millwork, and finished products will be highlighted. Information and training seminars will also be featured during the two-day event.

Sponsor Information

Exhibit Information Partner Organizations

The Expo agenda will include exclusive time slots in the morning and afternoon on both days for attendee exhibitor visitation. The fee does not include registration.Premier location - $400 per 10' booth. (including back wall and side bar draping, skirted table, sign)Regular location - $250 per 10' booth. (including back wall and side bar draping, skirted table, sign)

Organizations will promote the Expo on their website, newsletters, and emails, all with link to the conference registration page.Partner organizations will receive one free registration and banquet ticket and organization logo on all conference promotional materials.

To be a Sponsor, Exhibitor, or Partner sign up online or email: Western Hardwood Association

P.O. Box 1095, Camas, WA 98607 USA • 360-835-1600 www.westernhardwood.org • [email protected]

Western HardwoodInternational

Convention & Exposition

concerns. The National Federation of Independent Business’s (NFIB) Small Business Optimism Index, for instance, found that owners remain worried about the economy and frustrated with the political environment.

New residential construction soared to 954,000 in December, capping a year that saw tremendous gains in housing activity and showing that the still-struggling sector has begun to move in the right direction. The January housing starts figures are expected to show a slight pullback, but the longer-term trend should be for residential starts and permits to move upward.

Hardwood production finished strong in 2012. A robust start to the year slowed down as we moved into summer, but then production strengthened with a vengeance for the last months of 2012, finishing the year almost 13% ahead of 2011 (the “green line of happiness” on the AS Index). And, if you look at the Q4 2012 graph, in 2012 we climbed to over 80% of 2007’s peak production!

2013 is looking to be a complex year, and I believe most of it favors hardwood producers. First of all, the economy in the new year is expected to continue its gradual improvement, strongest in the first half of the year. Even with slower growth in the second half and predicted mild recession in 2014, hardwood has several things going for it.

First, housing starts are growing stronger and expected to continue increasing in the coming years. Nearly 4% of the U.S. population moved a significant distance in 2011 and again in 2012, an indicator of both a healthier economy and future growth. Annual increases of 150,000-200,000 starts – hitting 1.1 - 1.2 million by 2015 – will buffer some of the 2014 downturn for hardwood producers.

Next, part of the fiscal cliff legislation extended a tax credit for Short Line railroads: 50¢ for every $1 invested in track rehab. With a new projected demand of 23 - 25 million ties in 2013, that’s 35 - 40 million board feet more than 2012’s usage. And, we have already seen an increase from crane mat producers going into the new year. Industrial lumber will provide strong support for hardwood producers throughout 2013.

While U.S. hardwood production has been pushing up toward the 2007 highs, the log exports from the vast Russian resources have declined nearly 60% from their 2007 levels. This will aid in keeping the demand for U.S. hardwoods strong and growing in the overseas markets.

Finally, the remnants of the Great Recession and tight credit will continue to limit the ability or desire of most hardwood manufacturers to overproduce into strengthening markets. Limited log supplies should also help control supply and help strengthen profit margins, for domestic as well as export sales. Realistic production planning strategies will help keep prices firmer and

margins better in the coming months and years. As always, our politicians will try to muck things up,

and will make a bunch of decisions that protect their party or their job, instead of the American people. Nevertheless, I look for 2013 to be a slowly improving year for all of us – continue to be prudent and judicious in your business operations, with strong, measured growth instead of wishful overextension.- Norm Murray, U*C coatings Corp.

On the West Coast, hardwood suppliers noted winter business has followed the same peak/valley trend

that they’ve seen for the past year. A source in California said that rather than trying to maintain market share, more mills are focused on the items they can sell profitably. Understandably, end users are seeking to maintain the Bush-era price points.

In Oregon, a hardwood supplier said the market is “normal for this time of year.” A full distribution company, the supplier, which handles alder through walnut along with some imports, said his key species are red oak, walnut, and maple.

Quebec contacts report difficulty building log decks due to fast-rising sawlog prices which is keeping the margins thin. Some noted dealing with expired Crown timber contracts as well as the ongoing high loonie, making it difficult to export to the U.S. The mild and rainy weather also impacted

logging activity in certain areas.

Sawmills and wholesalers in Ontario report inventories are declining. A number of key items of kiln dried stock are thin. Soft and hard maple are showing a solid to growing demand.

Here’s When Creative Thinking Kicks In By Robert E Wilson, Jr.

In the early 1980s, when I was a young man fresh out of college, I wanted to work in the advertising industry as a writer. I took the traditional approach and sent resumes with my three best writing samples to 80 advertising agencies. The response I got: ZERO. I made several follow

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up phone calls only to learn that my resume had not even been looked at. One creative director told me that he had a stack of resumes from writers that was four feet high and that he had not looked at one of them. I was frustrated... but that frustration stimulated a humorous way for getting those creative directors’ attention.

Around that time I had begun to notice a number of homeless people having particularly good success at begging by holding up a piece of cardboard ripped from a box with these words written on it: “Will Work for Food.” They had discovered an effective way to advertise and motivate people to give them money. Recalling the old saying, “imitation is the sincerest form of flattery;” I created my own such sign which read: “Will Write Ad Copy for Food.” Then I had a friend photograph me holding it. I made 80 copies; stamped my contact information on the back; and mailed it to those same ad agencies. It was amazing, I heard back from more than half of them!

Innovation and creativity are all about solving problems or satisfying needs. And, there are three times when we are most likely to think creatively. The first one is when we are forced into it. Suddenly you find your back against a wall with nothing at your disposal but spit and a prayer (you’d give anything for some duct tape). There is a proverb you’ve heard dozens of times that succinctly describes this situation: “Necessity is the mother of invention.”

The second occasion in which we are likely to be creative is when something annoys us. Irritation motivates us to fix the problem. Remember it is the “squeaky wheel that gets the oil.” I wrote about this at length in a previous column, titled STOP Bugging Me! In it, I suggested that applying some creative thinking to some of the tasks you hate to do each day could lead you to a million dollar idea.

The third occasion in which we are likely to be creative is simply when we want to be. It is human nature to improve things. Whether it is an artistic pursuit or something more practical, developing something new brings us joy and fulfillment.

Sometimes it is simply inspiring to observe all the innovation around you. Just look around you at all the man-made objects, whether it’s the building you are in, the ballpoint pen on your desk, or the chair you are sitting in - each one began with a thought... an idea. And, it’s not just about things you make, it’s about new theories, new ways of doing things, new efficiencies, the list is endless... and always will be as long as men’s minds are free to create.

Have you been neglecting your ideas and creative energy? Take some time today to get back to it. You’ll be glad you did.

Robert Evans Wilson, Jr. is an author, humorist and innovation consultant. For more information on Robert, please visit http://www.jumpstartyourmeeting.com"

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WHA Membership

Renewal

Invoices for membership dues were mailed out December 1st, and payable on January 1st. Thank you for your continuing support in our 58th year!

Click here to RENEW NOW

Up Coming Meetings March 6, 2013

Western Hardwood Association Board Meeting Portland, OR Email: [email protected]

March 7-8 2013 OWIC Innovation Days Corvallis, OR Email: [email protected]

March 13-14, 2013 Forest Health: Identification & Management of Forest Insects & Diseases Spokane, WA Email: r [email protected]

March 20, 2013 Washington Hardwoods Commission Meeting Castle Rock, WA Email: [email protected]

March 27-28, 2013 Financial Analysis for Resource Managers Olympia, WA Email: r [email protected]

April 2, 2013 Skyline Analysis With Skyline XL Springfield, OR Email: r [email protected]

April 3, 2013 Timber Sale Appraisals With LogCost & HaulCost Springfield, OR Email: r [email protected]

April 30-May 2, 2013 Western Hardwood International Convention and Exposition Portland, OR Email: [email protected]

Register online at www.westernhardwood.org

Meet Our Expo Sponsors and Partners