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No. 498 August 2010 WHA Board of Directors Darrin Hastings President
Mike Lipke Vice President
Lindy Stallard Treasurer
Jeff Nuss Immediate Past President
Gevin Brown Dean Duchi Lee Jimerson Rob Johnson Scott Lilley Brent Monroe Bill Robbins Gregg Wilkinson Randy Wisner 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]
Expanding the world’s knowledge of Western hardwoods since 1955.
FIVE REASONS! Network with other WHA members.
Introduce NHLA members to WHA - invite them to attend and sit at your table.
Recognition on tables, emails, website, newsletters.
Can help grow our membership.
Sponsor an entire table before August 20th and receive a free half page newsletter ad.
The WHA event will be held Friday, October 15th, 10:30 a.m.-1:00 p.m. NHLA meeting is Oct 13-16, 2010 in Vancouver, BC.
Sponsor an entire table at the WHA luncheon, auction and mini grading class for just $400. There are only 5 tables with 8 seats each still available. Smaller sponsorships are also available. Contact the WHA office, (360)835-1600 or email WHA, [email protected] with your commitment today!
Rose City
Wood
Products
WHA Table Sponsors
W elcome New Member
Dayspring Hardwood & Moulding, Inc. 2816 Cessna Prineville, OR 97754 Manufacturer. Contact: Michael Newman Phone: (541) 447-0222 Fax: (541) 447-0223 Web: www.dayspringinc.com Email: [email protected]
M ember Profile
Dayspring
Hardwood & Moulding, Inc.
Dayspring Hardwood & Moulding, Inc. has been providing World-Class hardwood products for over 25 years to clients throughout the Western United States and Canada. From it’s headquarters and manufacturing plant in Prineville Oregon, Dayspring provides over 35 species of domestic and exotic hardwoods (including many different grades of Western Alder).
The creative Engineering Team at Dayspring helps its clients create/design over 1,000 different items including: Handrails, Crown Moulds, Hand-scraped Flooring, Specialty Stair Treads up to 3” thick and 16’ long, Panels, S4S, Risers, Siding, Stair Parts, Corner Guards, Fingerjoint, Jambs, and any other product our client can sketch.
Dayspring has focused on providing its consistently repeatable high quality products in a timely manner (6.8 days average shipping time per item) to it’s customers primarily located in the 12 Western United States. From multiple truck load quantities to a couple of pieces, the manufacturing team quickly and efficiently produces orders utilizing the latest technology and equipment.
Dayspring is FSC Certified and has experience processing over 100 different species of hardwoods.
Contact: Michael Newman, 2816 Cessna, Prineville, OR 97754
Phone: (541) 447-0222; Fax: (541)447-0223
Web: www.dayspringinc.com
Email. [email protected]
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* Welcome New Member * Member Profile
* News in the News * Legislative Outlook * Upcoming Events * Get Motivated
In This Issue:
Do you have news to share? One of the best benefits of belonging to WHA is the monthly newsletter. It’s a great way to stay in the loop and network. So let us know when your company has an important announcement. We’ll help get the word out. Send news items and pictures to:
NATURAL RESOURCE ILLUSION
The United States and other affluent countries consume vast quantities of global natural resources, but contribute proportionately less to the extraction of many raw materials. This imbalance is due, in part, to domestic attitudes and policies intended to protect the environment. Ironically, developed nations are often better equipped to extract resources in an environmentally prudent manner than the major suppliers. Thus, although citizens of affluent countries may imagine that preservationist domestic policies are conserving resources and protecting nature, heavy consumption rates necessitate resource extraction elsewhere and oftentimes under weak environmental oversight. A major consequence of this “illusion of natural resource preservation” is greater global environmental degradation than would arise if consumption were reduced and a larger portion of production was shared by affluent countries. -excerpted from “The Illusion of Preservation: A Global Environmental Argument for the Local Production of Natural Resources Summary” by Mary M. Berlik, David B. Kittredge, and David R. Foster
N ews in the News
SII DRY KILNS While sales in the US were extremely slow during the
last two quarters of 2009, SII found a new market in Russia. Working with WoodProM, a company with offices in Russia and the US, SII, a WHA member, sold four (4) kilns currently being installed near Tyumen
City. The total holding capacity of the four kilns is 900 m³ or approximately 380,000 bd. ft. There are two (2) SII center fan wall kilns and two conventional kilns. Dan Mathews, President of SII Dry Kilns, traveled to the job site in late May to assist the owner’s installation crew with the initial stages of installation. SII will send a start up technician to provide start up and operator training in the fall of 2010.
In addition, SII has recently started up several new package kilns and fan sheds in the US and has both package and track loaded kilns in various stages of production and installation. Other recent installations have included heat treating chambers for pallets, with holding capacities ranging in size from one to four truck loads. Firewood companies, who dry firewood or need to meet USDA requirements, make up the newest branch of the forest industry that SII serves.
All of us at SII want to extend our appreciation to our loyal customers for their continued support during this difficult time for our industry. Since we are all in this together, we are excited to be “bouncing back” with you!
UNPARALLELED UNCERTAINTY Most of the Bush tax cuts for businesses are set to
expire at the end of 2010. Congress is in no hurry to decide which ones to extend while President Obama is proposing several tax increasing measures resulting in unparalleled uncertainty for businesses regarding their future tax obligations. The policy changes listed below could significantly impact business taxation in 2011. Some will result in tax increases only if Congress acts; others will automatically increase taxes unless Congress acts.
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H ot News?
Get it in the HARDWOOD STAND. Promotions, new products, company news - we
want to help you get the word out. Contact the WHA office at (360)835-1600 or by email, [email protected].
Capital Expensing—Businesses are allowed to immediately deduct a certain percentage of capital investment costs in the first year, and then depreciate the balance over time according to a regular schedule. The American Recovery and Reinvestment Act of 2009 kept
the $250,000 expensing limit in place through 2009, and the Hiring Incentives to Restore Employment Act of 2010 (HIRE) extending it through the end of 2010. The Obama Administration’s FY 2011 budget baseline assumes
a $125,000 expensing limit will be made permanent (indexed to inflation) for 2011 and all future tax years. However, if Congress does not act, the expensing limit will automatically fall 90% next year to the 2002 level of $25,000.
Bonus Depreciation—Bonus depreciation is a special tax provision that allows businesses to immediately deduct an additional percentage of the cost of qualifying capital investments above and beyond standard first-year depreciation limits. Bonus depreciation was available to businesses during much of the last decade, and the percentage deduction was raised from 30% to 50%. Unfortunately, bonus depreciation has not been extended into the 2010 tax year. President Obama's FY 2011 budget proposed to extend 50% bonus depreciation to businesses that put qualifying capital investments in place during 2010.
LIFO—President Obama’s FY 2011 budget proposes to prohibit business from using the LIFO (last in, first out) inventory accounting method in their federal income tax calculations for all tax years beginning after December 31, 2011.
International Tax Reform—President Obama is urging Congress to close several tax loopholes which he claims are being used to avoid taxes by U.S. based companies with foreign interests.
Carried Interest—Carried interest is the portion of income a partner or manager of an investment fund, venture capital firm or real estate development company receives on capital gains. Carried interest income has traditionally been taxed at long-term capital gains tax
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Y our Ad... Advertise here! Contact the
WHA office (360)835-1600 or by email, [email protected] for more information and affordable ad pricing.
The 2010 edition of Green Book’s Soft-wood Marketing Directory is now availa-ble ONLINE! This service gives Softwood lumber sales representatives instant ac-cess to over 4,100 woodworking and in-dustrial plants’ Softwood lumber purchas-ing needs. It is a free service with a quali-fying Ad program in The Softwood Forest Products Buyer. Without an Ad program, it can be accessed for $900 per year. Each listing includes species, grades, thicknesses and quantities of lumber purchased regularly. It also gives the lumber buyer’s name, address, tele-phone and fax numbers, e-mail and web address.
The 2010 edition of Green Book’s Hard-wood Marketing Directory is also availa-ble for lease in both a printed version and ONLINE! It is filled with over 6,800 wood-working plants and distribution/concentration yards throughout North America. This directory contains the same type information as the Softwood directory and can be accessed for $1,900 per year for the Online Version or $1,200 per year for the printed edition, or at a discounted rate with a qualifying Ad pro-gram in National Hardwood Magazine, a WHA member, or Import/Export Wood Purchasing News.
For more information on either Green Book, please contact Charlene Jumper at [email protected] or call(901)372-8280.
WHA MEMBERSHIP CONTEST FOR WHA MEMBERS
For every new member you bring in prior to the October 15th annual meeting, you receive $25, doubled if you attend the meeting in Vancouver, BC. When the member renews it membership for the second year, you receive $50. Plus, if you bring in FIVE new members, your dues are waived the following year. First year/first time membership is only $150.
rates, which now top out at 15% and could rise to 20% in 2011. President Obama and many Democrats in Congress view this practice as a loophole that allows wealthy hedge fund managers to dodge taxes. As such, the Obama budget proposed to tax carried interest as ordinary income subject to tax rates of up to 36%, or 39.6% if marginal tax rates are allowed to reset in 2011. -excerpted from Hardwood Review Express
AS INDEX EASING OFF A report from U*C Coatings Corp, a WHA member,
notes after 12 months of steady gains, we see the Anchor Seal (AS) Index easing off a bit, as expected (June 2010 AS Index). Many customers have now restocked their depleted inventories. Business will continue to grow, but as a slower pace. As the economy continues its painfully slow recovery, a double dip recession is not expected. The bigger problem would be overproduction that drives down margins. The hardwood business is truly a supply and demand business, so preparation and flexibility to meet fluctuating, increasing order levels is more important than muscle that produces too much inventory without customers to buy it. -Norm Murray, U*C Coatings Corp.
L egislative Outlook
CA FORMALDEHYDE STANDARDS In 2009, the California Air Resources Board (CARB)
began enforcing reduced levels of formaldehyde emissions for composite wood products. As CARB was in the process of educating businesses about the new standard prior to implementation, a group of 25 organizations and 5,000 individuals petitioned the Environmental Protection Agency (EPA) to adopt the CARB standards nationally. The EPA chose to examine the issue, and even prior to completions of a new study on the potential health effects of formaldehyde, it was clear that the CARB standard would likely be adopted nationwide.
While the majority of formaldehyde emissions are from cars, the EPA was focused primarily on indoor emissions. As far back as 1984, the EPA had studied formaldehyde emissions and found the majority of them in the home are from composite wood products. Ever since the Sierra Club exposed the high levels of formaldehyde in the travel trailers used to temporarily house Hurricane Katrina victims, environmental groups have been pushing for tighter regulation of the chemical. In April 2010, James J. Jones, deputy assistant administrator of the EPA’s Office of Chemical Safety and Pollution Prevention, testified before the House Subcommittee on Commerce, Trade and Consumer Protection. He stated that the soonest the EPA
might be able to pursue a new formaldehyde regulation would be in 2011, with implementation between 2012 and 2014. –excerpted from Hardwood Review Express
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Up Coming Meetings August 24-26, 2010
Target Seedling Symposium Portland, OR Email: r [email protected]
August 28, 2010 Washington-Oregon Forest Owners Field Day Longview, WA Email: [email protected]
September 1, 2010 Washington Hardwoods Commission Meeting Olympia, WA Email: [email protected]
October 9, 2010 Seedling Management and Economics for the Tree Farmer Washington Tree Farm Program Longview, WA Info: www.watreefarm.org/forestryseminar.pdf
October 13-16, 2010 Western Hardwood Association Annual Meeting *in conjunction with NHLA Vancouver, BC Email: [email protected]
October 21, 2010 1st Annual Pacific Northwest Reforestation Council Vancouver, WA Email: r [email protected]
November 17, 2010 WFPA Annual Meeting Forestry—Everybody’s Green Investment Olympia, WA Email: [email protected]
The Hardwood Stand is sent by e-mail and available on the website, www.westernhardwood.org. Please be sure we have your correct email address. We know you want to be included!
HARDWOOD RESOLUTION S. Res. 411, the Senate ‘Hardwood Resolution’, was
passed by unanimous consent on August 5th. It was sponsored by Senator Blanche Lincoln (D-AR), and co-sponsored by 12 key senators from across the country. This resolution recognizes U.S. hardwood products as a sustainable resource, and urges that these products be given full consideration in any program to promote
construction of environmentally preferable commercial, public, or private buildings. Senators were urged to sign on to S. Res. 411 by 297 individuals
that generated 594 letters to senate offices. S. Res. 411 is the Senate counterpart to House Resolution 81 (H. Res. 81), which unanimously passed the House last September with 52 bipartisan co-sponsors.
EPA BLOWS GREENHOUSE GAS CELL The EPA recently decided to
consider biomass combustion equal to emissions from fossil fuels in their Prevention of Significant Deterioration (PSD) and Title V Greenhouse Gas Tailoring Rule. The academic community fears that the Tailoring Rule could dampen advances in biomass and alternative fuels research, and even encourage some facilities currently using biomass to convert to fossil fuel use.
BOILER MACT REGULATIONS
The Hardwood Federation is joining the fight against new EPA regulations. The changes to the Boiler MACT regulations target the emissions of boilers with capacity greater than 10 million BTUs - which would impact many in the hardwood industry. Older boilers that produce at this capacity could be considered non-compliant.
HOME STAR BILL AMENDED After much wrangling, the Hardwood Federation’s
efforts to have wood products recognized in President Obama’s HOME STAR legislation have been successful.
Senator Ron Wyden (D-OR) successfully amended the Senate version of the legislation that establishes a rebate program for homeowners who upgrade or install
energy efficient products to allow for rebate credit to be calculated with “software or databases...that analyze, integrate, or optimize the installed energy performance of building materials and products, such as energy efficient wood products…”
ENVIRONMENTALLY SAFE FOREST JOBS The Washington State Labor Council (WSLC)
unanimously adopted Resolution 20 at its August 2010 convention in Tacoma. It declares that Washington forests are sustainable, that wood fiber is a carbon neutral renewable resource, and that forest products jobs are environmentally safe.
G et Motivated
A blind man had been waiting a while at a busy road for someone to offer to guide him across, when he felt a tap on his shoulder.
"Excuse me," said the tapper, "I'm blind - would you mind guiding me across the road?"
The first blind man took the arm of the second blind man, and they both crossed the road.
Apparently this is a true story. The first blind man was the jazz pianist George Shearing. He is quoted (in Bartlett's Anecdotes) as saying after the event, "What could I do? I took him across and it was the biggest thrill of my life."
There are times when we think we cannot do something and so do not stretch or take a risk. Being forced to stretch and take a risk can often help us to reduce our dependencies (on others, or our own personal safety mechanisms), and to discover new excitement and capabilities.
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Register for the WHA Hosted Luncheon October 15, 2010 at the NHLA’s “The Global Gathering of the Hardwood Community”. Just click on the link above.
