DHA eNews - Join DHA Leaders At Our 2023 Annual Meeting
We continue to live in interesting times, this year, with significant changes underway in our industry and around the globe. The DHA eNews is a great way to stay current. But it is no substitute for the discussions that will take place at DHA’s 2023 Annual Meeting, Wednesday, May 24, through Friday, May 26. All DHA members are encouraged to attend, including those who join in the upcoming months. Registration is open—register now.
Events in 2022 dramatically changed trade in wood products. The war in Ukraine resulted in significantly lower imports of hardwood plywood from Russia. Imports from Vietnam appear to have slowed in the second half of 2022, likely as a result of the Coalition for Fair Trade in Hardwood Plywood's circumvention litigation and the Commerce Department's preliminary finding in July that hardwood plywood from Vietnam was circumventing duties on Chinese plywood. Sunset reviews are underway in both the hardwood plywood and multilayered wood flooring trade cases, ensuring that 2023 will continue to be an interesting year for our industry.
If you have questions or comments, contact me. I look forward to hearing from you.
Keith A. Christman, President
Decorative Hardwoods Association
Register now for our 2023 Annual Meeting, Wednesday, May 24, through Friday, May 26, at the beautiful Wyndham Grand Clearwater Beach in Florida. Industry experts will discuss the latest updates on trade litigation, new manufacturing technology, and the U.S. economic outlook and how it will affect our industry. All DHA members are encouraged to attend, including all new members who join before we meet.
In the second half of 2022, U.S. imports of hardwood plywood slowed dramatically from the torrid pace in the first half of the year. In the first six months of 2022, imports soared by 77% in value and 37% in volume; the year ended with total growth of 12% in value, to about $2.1 billion, and a decline of 0.3% in volume. Imports from Russia fell by 34% in volume. Imports from Vietnam slowed, ending the year up by 14% in volume after starting the first half up by 93%.
In 2022, U.S. imports of multilayered wood flooring rose by more than 11% in value to more than $1.3 billion and 7% in volume to more than 761 million square feet. These strong increases follow growth of more than 31% percent in volume in 2021. Imports from Vietnam increased by nearly one-third.
The Hardwood Federation, including DHA members, will host our 2023 legislative fly-in on June 13-15 to meet with policymakers to discuss legislation and issues affecting our industry, beginning with the forest provisions in the farm bill.
The U.S. Environmental Protection Agency wants your input on the proposed Inflation Reduction Act programs designed to reduce greenhouse gas emissions. The new programs, made possible by $350 million in funding, are designed to identify lower greenhouse gas construction materials and will support $2.1 billion in spending on building products with lower carbon. DHA staff will participate and likely comment to advocate that the climate benefits of wood products are recognized.
On February 21, the EPA opened comments on their proposed rule on formaldehyde emissions standards for composite wood products, including updates to voluntary consensus standards like DHA's American National Standard for Hardwood and Decorative Plywood (ANSI/HPVA HP-1-2020). The EPA rule will address remote inspections for third-party certifiers and recommends technical corrections and conforming changes, including updating standards within the definitions section, clarifying language about production, and creating greater flexibility in the third-party certification process. DHA will review and comment on the proposed rule.
24 state attorneys general have filed a lawsuit over the new proposed definition of the waters of the U.S. that was finalized in January. Courts will also decide on a lawsuit that challenges the extent to which wetlands contribute to tributary networks and if they should be subject to WOTUS requirements.
A proposed wood paneling standard, Architectural Woodwork Institute 0642 – Wood Paneling, is now open for comment. Architectural wall panels are used in many woodworking projects. DHA will review and comment on the proposed standard before the comment period closes on March 27.
The National Association of Home Builders, National Multifamily Housing Council, and National Apartment Association reinforced the importance of housing supply and affordability challenges. NAHB said that the President "missed a golden opportunity" to outline a vision to combat the U.S. housing affordability crisis in his State of the Union address.
In 2022, Russia imposed restrictions on the export of its logs after Europe banned imports of Russian wood products. The result: Russian exports fell by about 70% last year. China remains the primary importer of Russian logs, followed by Finland and Belarus.
In 2022, Russia's exports of plywood fell by about 40% in volume and value. Before the Russian invasion of Ukraine, Europe and the U.S. were the main markets for Russian plywood exports. Exports dropped sharply after sanctions were imposed and U.S. duties were raised from 3% to 50%.
In 2022, the output value of China's forest industry grew to $1.17 trillion. China is now one of the world's leading players due to the scale and growth rate of its forestry industry.
From January–November of 2022, Vietnam earned $1.1 billion from plywood exports. The country is the fifth largest exporter of plywood after China, Indonesia, Russia, and Brazil.
Timber groups and rural counties stated that Oregon's plan for managing 600,000 acres of state forests should be rewritten. The groups are concerned about lower levels of logging and resulting revenue, as the Oregon Department of Forestry originally said it would allow the harvest of 250 million board feet of lumber each year, but then revised that down to 173.5 million board feet for the next two years.
A new report from the U.S. Forest Service shows that 36.3 million trees died across California in 2022. The high mortality rate is due to a number of factors, with drought at the top of the list.
Washington state legislators, as well as legislators in a dozen other states, are debating whether to restrict or even ban foreign entities from buying certain types of land. A bill in Washington state would bar foreign companies from buying land for farming, ranching, or timber production.
The Forestry Research Institute of Sweden will investigate why less than 80% of reforestation plantings survive more than three years. Eight forest companies will participate in the five-year project.
It's open: register now for the 2023 Decorative Hardwoods Association Conference & Annual Meeting. With so many changes in legislation, regulations, technology, and the economy, this is a don't-miss event for executives in our industry. The conference will run from Wednesday, May 24, through Friday, May 26, at the beautiful Wyndham Grand Clearwater Beach in Florida.
All DHA members are encouraged to attend, including all new members who join before we meet.
What state has the highest percentage of forest coverage, and just how high is it?