1. Mark Barford Executive Director National Hardwood Lumber Association Memphis, TN

2. National Hardwood Lumber Association Headquarters

3. Hardwood Growing Stock 19482010 Merchantable Timber (> 12”)400 BBF1 TBF Species mix 52% Red & White Oak 11% Poplar

4. Hardwood lumber use – Million BF 20002010 Furniture3,700500 Cabinets 900500 Flooring500600 Dim/mould1,000400 Exports1,100700 Industrial6,8004,300 Total Prod.14.0 BBF7.0 BBF

5. Hardwood lumber competition 1)World suppliers of hardwood Russia, SE Asia, Eastern Europe 2)Substitute materials long term BIGGEST threat 3)Our own selves! - Log Exports 4)False environmental claims Green Sourcing

6. 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

7. 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

8. 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

9. Outlook – Five years? Even smaller hardwood lumber industry Increased International business Increased NA hardwood forests certified

10. 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