Jennifer Brand: We still face challenges that limit production and sales – weather has been a big one this winter! But there’s a definite sense of stability and growth. When lending loosens for all of our industry, including mills, concentration yards, trucking companies, and loggers, morale will tick up even higher.
MJ: Is the industry’s loss of capacity in the downturn creating issues in meeting rising demand?
JB: Of course – and this will be our biggest challenge for the next few years. As difficult as it is to convince financial institutions to invest in our industry again, it is equally challenging to convey our increasing confidence to recruits so they feel assured that joining our industry is for the long term.
MJ: How committed is the industry to exports, given the US domestic upturn?
JB: The US economy continues to see promising increases in housing-related activity, but domestic demand is a long way from sustaining significant growth for our industry. And exports now represent more than half of all graded lumber production. This is the result of declining volumes being absorbed by US furniture and flooring industries, but also the fact that much of the increased demand for hardwood products is coming from abroad, especially Asia. People won’t forget that export markets saved them in the hard times and are the number one factor driving profit lines today. We have to consider which markets make the most sense in profit margin terms; however, most mills know that a more geographically diversified customer base is their lifeline going forward.
MJ: Could the Check Off scheme to fund hardwood marketing in the US hit export promotion?
JB: The Check Off also includes provision for export promotion, but is a controversial idea. I have not been directly involved; however, after my experiences working with AHEC and seeing the benefits of our promotional programmes around the globe, I’m convinced a similar effort is needed at home. The Check Off may or may not be the perfect tool, but I have yet to hear of a credible alternative.
MJ: Could American mills gear production more to export requirements?
JB: American producers are more willing today to consider manufacturing to their individual export markets’ needs, when it makes business sense to do so. These changes don’t happen overnight, but this is a more flexible, agile group than in the past.
MJ: How significant are the UK and the rest of Europe seen as markets for US hardwoods?
JB: No-one can deny China will continue to be our single largest export market. The diversification in sales of species and grades there is unmatched by any other destination. But Europe will continue to be important for US producers. As its demand moves increasingly to legally sourced and sustainable products, we will continue to see shifts to US hardwoods from timber sourced from less reliable regions. Excitement also exists in Europe for value-added products and new uses for hardwoods (heat treated, engineered structural applications). I don’t see China becoming that type of market for a very long time.
MJ: What’s the potential of these thermally modified and engineered products?
JB: Diversifying uses for hardwood lumber ensures long-term stability and gives our industry one more edge over our competition. Exploring the potential of new applications and new technologies has been one of AHEC’s most important roles. Too often we tend to equate ‘new markets’ with new geographical regions, when it can also mean finding new uses and new niches even within existing, mature markets.
MJ: Is there scope for developing export markets’ appetite for more US hardwood species?
JB: Certainly. A major component of sustainability comes from using what the forests provide in terms of species. For this reason AHEC has been pushing red oak in Europe despite opposition, even hostility, from the European trade. It is the single most abundant US hardwood, and dominates production for many sawmills. Fortunately, China has been happy to take the red oak the Europeans don’t seem to want.
MJ: As first female chair of AHEC and a senior executive, do you think it’s harder for women to progress in this industry and see your role as encouraging more to join?
JB: I wouldn’t say it is tougher for women to secure roles in leadership. The bigger issue is that the industry hasn’t focused on attracting enough, and women in general, perhaps because of not understanding the opportunity that exists, have shied away from it. Will I play a role in encouraging women to join the industry? Of course! At every opportunity, whether wearing my AHEC or Bridgewell hat. Having stronger female representation and attracting young new talent will diversify our workforce and bring fresh perspectives and ideas.
MJ:What do you see as key challenges and opportunities in your AHEC role?
JB: Top items on my radar include increasing AHEC’s domestic and international membership, ramping up member involvement and increasing our staff in Washington DC to handle a larger membership. Most exciting is a Strategic Planning for AHEC. This will be the first time in nearly a decade we have tackled strategic planning, and while I look forward to facilitating the process, the direction and objectives will collectively come from industry leaders.
MJ: And how do you see the future potential of US hardwood in particular, and timber more widely ?
JB: US hardwoods (and timber in general) have the potential to enjoy a very promising future, but much work lies ahead in educating consumers that choosing wood can be one of the most environmentally responsible options. AHEC plays an important role in this, but greater participation from every industry member is vital.
