November 07, 2024

Appalachia's Hardwood Industry In Peril, Says WSJ

This Week's Insights

By the time you get this newsletter in your inbox, the 2024 voting will be done. Donald Trump has won the presidential election and Republicans have won control of the Senate. At this time, control of the House of Representatives remains in doubt.

There is clearly a lot riding on the outcome of this election. Tax policy will be a huge issue in 2025 as the Tax Cuts and Jobs Act provisions will come to an end, setting up a debate that includes many policies important to DHA members.

Regulatory policy was also on the ballot. The Biden administration has implemented record levels of regulation over the last four years. Many of these regulations impact our industry, including a new formaldehyde risk evaluation. In addition to a new Trump administration, the Supreme Court has rolled back many regulations and set new precedents that will likely slow down the regulatory state.

Whatever the outcome in the House of Representatives, DHA and our allies will continue to push for a level playing field in trade and rational tax and regulatory approaches that allow our members to compete, create jobs, and improve the economy.

If you have questions or comments, contact me. I look forward to hearing from you.

PHOTO © CHRIS WARNER, USFS


Keith A. Christman, President
Decorative Hardwoods Association

Appalachia's Hardwood Industry In Peril, Says WSJ

Logging—a way of life in Appalachia—is "hanging on by a thread," reported The Wall Street Journal. The story highlighted the decline in the U.S. furniture industry after China's admission to the World Trade Organization and the decline in U.S. lumber exports after China retaliated for tariffs imposed by the Trump administration.

PHOTO © CHRIS WARNER, USFS

Cabinet Sales Continue To Fall

Sales of cabinets have continued to decline. In September, sales volume fell by 13.8% vs. September 2023. Year-to-date through September, the volume of cabinets sold was 5.2% lower than last year and the dollar value of cabinets sold was down by 2.7%.

U.S. Hardwood Industry Meets With USDA On EUDR

The Hardwood Federation and American Hardwood Export Council met with USDA staff to discuss the status of the EU Deforestation Regulation and its potential impact on the U.S. hardwood industry. The good news: USDA understands the many challenges of the EUDR and has been working with the U.S. Department of Commerce and U.S. Trade Representative to communicate concerns to their European counterparts.

Biden Administration Slow Walks Required Regulatory Changes

27 members of the House Transportation and Infrastructure Committee sent a letter to the U.S. Environmental Protection Agency and the U.S. Army Corps of Engineers to push the Biden administration to follow the Supreme Court's unanimous ruling to overhaul the definition of "waters of the United States" (WOTUS). The administration's latest interpretation of WOTUS has muddied the regulatory process, negatively affecting the federal permitting process and exacerbating the housing affordability crisis.

Forest Service Will Award $34 Million

The U.S. Forest Service will provide $34 million through the Wood Innovations Grant, Community Wood Grant, and Wood Products Infrastructure Assistance Grant programs. The grants were announced as part of National Forest Products Week which recognizes the economic and environmental benefits of our forests and the role that forest management plays in safeguarding forest health while delivering sustainable wood products.

Expect Approval Of Red Oak Military Truck Beds

U.S. Congress will convene this month for its final sessions of 2024. Lawmakers are expected to pass the National Defense Authorization Act, which includes an important provision that directs the Department of Defense and GSA to stop using endangered tropical apitong for military truck and trailer beds and begin using sustainable U.S. red oak instead.

U.S. Sues Importer Of Chinese Furniture

The U.S. has filed a civil lawsuit against the president of a company that imported Chinese-made children's bedroom furniture into the U.S. The lawsuit alleges that false statements were made to customs officials and that the company avoided paying antidumping duties as a result. The lawsuit claims that the importer declared that the furniture was made by Chinese companies that are subject to duties of about 7% or less, instead of declaring that the furniture was made by companies subject to duties of 216%.

International Wood Prices Are Growing

Experts believe that wood prices will remain higher in 2025 due to supply constraints, the global demand for timber, and economic trends that support continued housing development. Even though supply chains are likely to improve, geopolitical events, conservation efforts, and the demand for new housing indicate that lumber prices will remain elevated, settling into a higher price range than pre-pandemic norms.

Experts Predict Furniture Industry To Rebound After Election, Lower Interest Rates

Analysts reported slowing declines in the furniture industry, with most companies' sales down slightly this year vs. last year. There is an exception: higher-end manufacturers and those who sell to the designer trade have shown profitable growth. Industry experts are optimistic, predicting growth before the end of next year. 

Industry Tackles Logging & Hauling Capacity

The Forest Resources Association, American Loggers Council, National Alliance of Landowners, and American Wood Council have developed shared principles to address logging and hauling capacity, including better communication, improved efficiency, and enhanced safety through direct actions and federal policies that respect the independence and entrepreneurial spirit of these vital service providers.

Trucking Rates Increase

Analysts reported that the truckload breakeven price per mile rose by 4.4% vs. last September. Breakeven costs have reached $2.72 per mile. Wages comprised 37% of the costs, followed by fuel at 20%, empty miles at 15%, and repairs and maintenance at 9%.

Environmentalists Sue To Stop Plan To Kill Barred Owls To Save Spotted Owls

Two environmental groups challenged the U.S. Fish and Wildlife Service's plan to kill up to 450,000 barred owls in the next 30 years. Northern spotted owl populations have declined rapidly for several reasons, one of which is competition from invasive barred owls that originated in the eastern U.S. Northern spotted owls are listed as a threatened species under the U.S. Endangered Species Act.

New Sawmill Advances Forest Health

Tahoe Forest Products has built the first new industrial sawmill in the Sierra Nevada in decades to process wood from better forest management. This underscores a shift in forest management and the urgent need for it. Devastating wildfires have burned millions of acres in the region, sparking politicians and residents alike to push for better management of the unhealthy, overstocked forests that led to this crisis.

U.S. Economy Grew By 2.8% In Q3, Lower Than Expected
Key Jobless Metric Hits A 3-Year High
What’s Next For Housing? NAHB Hosts Post-Election Webinar
Election Uncertainty Drives Interest Rates Higher
Younger Households Report Lowest Homeownership Since 2020
Construction Jobs Fall
See Housing Cost Burdens Across Congressional Districts
Canada Publishes Latest Mortgage Trends
Wood Trivia: Test Your Knowledge

How many individual trees are there in the world?

Answer: Researchers estimate that there are about 3 trillion individual trees in the world.

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