PRESIDENT'S LETTER

With change comes opportunity. And the WMMA is not immune to change! We have experienced many changes over the past year and we have emerged in a stronger position, better poised for the future thanks in large part to the involved members who have brought new perspectives and insights.

As an example of this change is the New 2011 Wood Industry Conference (WIC). Like it has altered everything else, the economy has affected the conference and made the sponsoring associations (WMMA, WMIA and AWFS) take a hard look at what this event should accomplish for its attendees.

All three associations conducted a survey among their members and found that the large majority of you wanted more business discussions, less time away from the office and, an opportunity to understand the needs of your customers and how to work together to increase sales and ultimately profits! In other words, a place where the woodworking industry can come together and discuss opportunities in these challenging times.

So, that's what we put together! The New 2011 WIC — "One Industry, One Conference, Endless Opportunities!" It's changed, and will have a lot to offer in just two full business days, May 5-6. Of course you can learn more on the 4th if you would like to attend the sponsoring associations' committee meetings and hear about other programs and projects in the works for our members and the industry. All are welcome! And, stay Saturday for an optional day of golf or other outdoor activities. Bring your spouse and kids…the location is perfect!

On the 5th and 6th we will have two 2 ½ hour contact table sessions where you can meet one-on-one with your choice of business partners. Four speakers will offer insights on our issues and opportunities, the economy and important legislation on the Hill. And, NEW this year -12 woodworking industry customers will present their needs and plans for the future at three industry forums: Millwork, Cabinetry and Furniture. Not only will they explain what they need, but how we as suppliers can work with them more closely. We'll open the floor up for audience discussion and they will be available during the WIC at receptions and dinners for further conversations.

To top that off, the WMMA and Vance Publishing are conducting an intensive market survey and will analyze the important 12-18 month trends on three market segments: Millwork, Cabinetry and Furniture. This market report will be completed by May 1st and will be available to the industry for $2000 a copy. However, any WMMA member who attends the 2011 WIC and the WMMA Business Session will receive a copy At No Cost! Members can pick-up their company copy at the 'must attend' WMMA Business Session on Friday, May 6th.

There is no doubt about it — the 2011 WIC will be the 'One Conference' you will talk about for months to come! It is a must attend conference!! End user forums, contact tables, speakers, networking sessions, service providers, media professionals, and your colleagues; all offering Endless Business Opportunities. This could change the way you do business…forever!

We have a limited hotel block, so don't hesitate and miss this opportunity - go to the WMMA web site and register now and secure your spot for this big event at the Marco Island Marriott Beach Resort & Spa, Marco Island, Florida.

I'll see you there!

— Mark Chappell

BUSINESS BRIEFING

In the September Cutting Edge issue the importance of home construction and remodeling to the value-added wood products sector was highlighted. It's safe to say that our industry will not fully recover from the current malaise until housing rebounds. So let's take an amateur economist's look at homebuilding today and its future trajectory.

Background
This housing bust has been the longest and deepest in recorded history. Prior to the current downturn, the record for the longest period with the annual rate of housing starts below one million was nine months during the recession of 1981-82. By the time this column is published, the current slump will be in its 30th month at or below one million starts. And remember that the average annual rate of starts since 1959 is over 1.5 million. Before 2008 U.S. builders had never started fewer than one million homes in a single year.

Remodeling also buoyed the wood products industry significantly from 2001 through 2005. But that sector too has fallen on hard times, plunging by 25 percent last year alone. With remodeling consuming over two-thirds of cabinet industry output and nearly half of wood flooring, the impact on many makers of value-added wood products has been devastating.

Combined with the departure of domestic wood furniture production to China and elsewhere, the slump in residential construction has knocked 50 percent off demand for hardwood lumber. All things considered, the decline of the wood products economy has been nothing short of breathtaking.

Clearly homebuilders, remodelers, and all of us in their supply chain are in uncharted waters. Contrary to earlier downturns that were caused by high interest rates aimed at reducing inflation, this downturn got its genesis from loose monetary policy. No one seems to have a ready cure for today's mess. Forecasting the timing of a housing recovery is a crap shoot at best.

Challenges
As a prelude to this update, let's look at the challenges facing a housing recovery:

• Foreclosures: Over two million homes are in various stages of foreclosure. Those homes represent an overhang of supply that must be consumed before a full recovery in home building can resume.
• Delinquencies: The owners of another five million homes are seriously delinquent on their mortgage payments.
• Declining Prices: Excess supply over demand is continuing to pressure prices downward. Between one-fifth and one-quarter of all homes are now worth less than the remaining balance on the underlying mortgage.
• Unemployment: The key to recovery is job growth. But far too many in the U.S. are out of work, and low home prices are limiting the flexibility of many to relocate to a new job.

Prediction
In spite of these challenges, a housing recovery is a sure bet. Simply put, the future generation of homebuyers and renters has already been born. The first members of Generation Y, those born between 1980 and 1995, are forming households, renting apartments, and buying homes. At 78 million strong, that cohort is nearly as large as the Boomers who made the 1970's the biggest homebuilding decade in recent history.

And with weak prices and very low interest rates, Gen Y is finding housing more affordable than anytime in the last twenty years.

Growth of new household formations is predicted to average nearly 1.5 million annually through 2020. During the current downturn that rate fell to one million. The higher number of new households combined with those already in existence will demand 1.65 million new homes and apartments annually over the next decade. That demand will push housing starts to and beyond the fifty-year mean.

So when will the market make that move? The recently released McGraw-Hill construction forecast predicts a 27 percent jump in single-family starts in 2011. Construction of multi-family housing is expected to rise by 24 percent. If so, total starts next year will approach 700,000. The National Association of Realtors' October forecast estimates 617,000 in 2010, 769,000 next year, and just over one million in 2012. The National Association of Homebuilders' economist predicts 605,000 this year, 804,000 next year, and 1.18 million in 2012. Thus the latter two groups are seeing starts nearly doubling from the 2009 low by the end of 2012.

Looking longer term, Harvard's Joint Center for Housing Studies projects new home demand between 16.4 and 18.7 million from 2010 to 2019. Since these estimates are for demand, not construction, the number must be adjusted for any oversupply that exists entering 2010. But even if the two million homes in foreclosure are considered, that deduction leaves Harvard projecting between 1.44 to nearly 1.7 million starts annually through 2019. Those numbers neatly bracket the long-term mean. The driver for this demand forecast is demographics.

At the end of the day, the hardwood economy requires a saner market for housing, much less of the boom and bust seen over the last fifty years. At between 1.4 and 1.5 million, household formations have been remarkably steady through that period. Yet we've seen extreme peaks and valleys in housing starts. No one can run a business in such an environment.

Unfortunately the conditions for a more rational market are well beyond our direct control:

• Smarter bankers and builders — Tighter lending standards and more attention to the underlying market would go far toward matching supply and demand.
• Wiser homebuyers — Letting the buyer beware is not a sound policy. Better education and understanding of the costs of homeownership would inhibit people biting off more mortgage than is affordable.
• Intelligent government intervention — Mortgage interest deductibility and the capital gains exclusion on the sale of primary residences have skewed demand artificially higher. And don't forget that government also affects your cost of doing business. The steady wave of regulations ranging from environmental to labor and health insurance are significantly adding to your labor and overhead costs. In addition we are paying a price for gridlock. The uncertainty it engenders impedes decisions on investment and hiring by business and industry.

With so much depending on sound policy making, let's hope that Washington and Wall Street get it right. Our future, unfortunately, depends on that happening.

Bottom Line: Over the next two years, demographics and historically low mortgage interest rates will drive a nascent recovery in residential construction and remodeling. Its long-term strength depends on smart economic policy. With a little luck, better times are just ahead. Keep your fingers crossed…

Note: Chart courtesy of Econoday, Inc.

Historic Downturn in Softwood Lumber Demand

With new home construction in a three-year slump, the Western lumber industry posted its worst year in modern history in 2009. Production for the year was 10.39 billion board feet (BBf), the lowest annual volume since recordkeeping began in the late 1940s. The previous low of 13.7 BBf came during the 1981-82 housing slump.

The housing downturn also hit other softwood producing areas:

Production in the Southern U.S. fell 19.5 percent to 11.79 BBf. Imports from Canada were down 30 percent to 8.9 BBf.

Overall total demand for softwood lumber was 31.3 BBf with only 7.3 BBf used in residential construction vs. 27.6 BBf in 2005.

Jobless Claims Hit New Low

Initial jobless claims declined to 421,000 in the week of December 4 week. The four-week moving average used by most economists as a metric fell 4,000 to 427,500. This new cycle low may indicate that the labor market is stronger than shown by November's employment report. Without question, the latest jobless claims report shows that the labor market is healing.

EPA Delays Boiler MACT Rules

The Environmental Protection Agency is seeking an extension on issuing final rules that define maximum achievable control technology for wood-fired boilers. If granted, the extension would delay issuance of rules until April 2012.

Proposed rules issued earlier this year, if adopted, would have prohibited wood products manufacturers from burning their wood waste in their boilers. Those rules considered dry wood boiler fuel in the same category with less clean fuels like green wood waste, pulp, and bark.

The filing for the extension resulted in last-minute appeals to U.S. Senators by furniture executives, who noted the harm the rules would have on the competitiveness of their industry as well as other secondary wood products.

Economic Facts

U.S. corporations are sitting on $1.93 trillion in cash and other liquid assets up from $1.8 trillion in June. Cash accounts for 7.4 percent of total company assets — the largest share since 1959.

Many companies have maintained high levels of profitability by downsizing their operations in response to the worst economic downturn since the 1930s. Most see few opportunities to deploy their cash when demand remains low and capacity underutilized.

Capital investment has historically been a trailing indicator of economic activity. New plant and equipment is not purchased until demand grows and capacity is tight. While little is normal about these times, it appears that the relationship between demand and investment is unchanged.

Sector Report

Kitchen Cabinets

The deep, lengthy decline in new home construction and remodeling continues to negatively impact the cabinet sector…

• Masco Corporation, the largest cabinet producer in the U.S., reported 3Q2010 cabinet sales of $357 million, down 18 percent from the same period last year. On the operating margin line the company lost $27 million vs. $9 million last year. Management blamed declining market demand and product exits. The company is forecasting 2010 housing starts to come in between 575,000 and 625,000.
• American Woodmark announced that 2Q2011 sales were up 3.4 percent vs. the same period last year. Gross margin came in at only 9.1 percent, down from 12.2 percent a year ago, and resulted in an operating loss of $12 million.
• Norcraft Holding, parent of Mid Continent Cabinetry, Norcraft Cabinetry, UltraCraft, StarMark, Fieldstone, and Brookwood brands, reported a 2 percent increase in sales to $65.9 million in its 3Q2010. Net income fell to $348,000, a decline of nearly 80 percent. Sales for the first nine months of the fiscal year were $201.9, up 8 percent from the same period last year. Management attributed the increases to the first-time home buyer's tax credit but blamed its expiration for weaker orders in the last half of the year. This weakness is expected to continue into 2011.

Home Furniture

Furniture Imports & Exports Surge
In the first half of 2010, furniture imports rose by 19 percent to $10.7 billion.

China remained the no. 1 source country at $6.355 billion, nearly 60 percent of total imports. Vietnam, which has benefited enormously from anti-dumping duties on Chinese wood bedroom furniture, remained no.2 with $787.6 million, up 28 percent year to date. Rounding out the top 10 are Canada, Mexico, Malaysia, Italy, Indonesia, Taiwan, Thailand, and Poland.

In a sign that the economies in other countries are rebounding faster than in the U.S., our furniture exports rose by 11 percent. Canada, Mexico, and the United Kingdom are the top 3 customers. China took over no.4 with its purchases growing by 76 percent year to date.

With furniture sales at retail weak since late spring, will the import surge continue into the second half of 2010? Stay tuned.

Furniture Factory Orders Down
Orders for residential furniture were down 3 percent in September, the first decline since September 2009. Year to date, orders were up 6 percent.

Shipments rose by 6 percent vs. September a year ago and year to date were up 8 percent. Remember, however, that shipments in the first nine months of 2009 were down 19 percent vs. 2008.

Consumers continue to stay out of furniture stores, and company results remain mixed...

• Furniture Brands International posted a $2.1 million loss on its 3Q2010. Sales were $272 million vs. $294 million in the same period a year ago. Gross margin rose to 24.8 percent from 23.1 percent a year earlier. The company announced that its 829,000 ft2, ready-to-assemble plant in Appomattox, VA, will close early in 2011. The closure will affect about 200 employees.
• La-Z-Boy Inc. reported 2Q2011 sales of $293 million, a 2.6 percent decrease over the prior year. Upholstery sales fell 3.4 percent to $224.9 million with operating margin slipping to 7.6 percent from 10.9 percent a year earlier. Case goods sales rose by 5.9 percent while revenues of the company's retail operation increased by 3.2 percent. Overall the company earned $5.3 million in the quarter vs. $9.3 million in the same period last year.
• IKEA, the world's leading home furnishings retailer, announced that its FY2010 sales rose 7.7 percent to $31.5 billion. Profit came in at $3.4 billion. The company operates a highly mechanized plant for the production of ready-to-assemble furniture in Danville, VA.
• Stanley Furniture reported 3Q2010 sales of $34.9 million, down 9.3 percent from a year ago. As a result, the company lost $5.1 million in the quarter. Sales for the first nine months of the fiscal year were $109.3 million, a decline of 9.3 percent resulting in an operating loss of $9.1 million. The company continues its restructuring involving the shuttering of its Stanleytown, VA, plant and transfer of adult furniture production to Asia. Youth furniture production remains at its Robbinsville, NC, plant.
• Bassett Furniture Industries announced a 1.5 percent increase in its 3Q2010 sales to $58.5 million. The company noted that its quarterly wholesale sales rose year-over-year for the first time in four years. The loss for the quarter came in a $2.37 million, down from $3.45 million last year.
• Hooker Furniture posted a 22 percent increase in its 3Q2011 sales. Profits of the case goods and upholstery source rose to $1.2 million. Following production and shipping delays in the first half of the fiscal year, improved flow of products from its offshore sources enabled the reduction of order backlog from 8.2 to 5.7 weeks. For the first nine months of the year, sales increased by 6.5 percent. Management noted that incoming orders are trending favorably.
• Chromcraft Revington reported a loss of $1.93 million as sales fell to $13.8 million its 3Q2011, a decline of 4 percent. Sales ended the first nine months of the year at $41.7 million, down 11.8 percent from the prior year. The loss for nine months totaled $4.26 million.
• Upholstery producer Flexsteel reported furniture sales of $65.2 million in its 1Q2011, up 16 percent from a year ago. Management noted that the incoming order rate has slowed in 2Q.
• Promotional upholstery manufacturer Delta Furniture will consolidate operations in a 220,000 ft2 facility in Pontotoc, MS, previously operated by DeVille Furniture.
• Munire Furniture, importer of juvenile furniture, announced the opening of a 200,000 ft2 factory in Gas City, IN. The company will invest more than $5 million to develop its new, high-end Echelon brand. The plant will employ more than 100 workers in its first year with plans to expand to 350 by 2013.
• Chinese-based Man Wah Holdings, the largest motion upholstery producer in China, reported that U.S. sales for the its most recent six months totaled $152.8 million, up 84 percent over the previous year. Worldwide sales came in at $255 million, a 49 percent increase. The company produces upholstery at two factories and bedding in one factory in China.
• Singapore-based leather upholstery producer HTL International said that international sales in its 3Q were up 3.6 percent to $120.7 million. Profits were negatively impacted by foreign currency markets, and net income fell to $1.08 million from $6.31 million in last year's 3Q.

Office Furniture

BIFMA estimates October orders and shipments increased 25 and 13 percent respectively vs. the same month last year. More importantly, trailing twelve-month orders rose by 5.6 percent, the first year-over-year increase in trailing 12-month orders since September 2008. Unfilled order backlog also continued its six-month rise.

Office furniture is a late cycle business that typically lags the broader economy by two to three quarters. With the continuing upward momentum, analysts believe that the sector is bottoming. Several factors support that conclusion — corporate profits are strong, the office occupancy rate is improving, and companies are hiring again as evidenced by positive growth in the use of temporary office workers.

As a result BIFMA has updated its sector forecast and now estimates 2011 orders and shipments will increase 5.6% and 8.3%, respectively, up from 4.3% and 6.7% in their previous prediction.

At the company level…

• Steelcase, the global leader in contract office furniture sector, reported its 2Q2011 sales at $599.8 million, up 3.7 percent from the same period last year. Current quarter operating profit of $6.5 million represented an improvement of $7.5 million over the prior year operating loss of $1 million.
• Herman Miller announced that its 1Q2011 sales were up 17.5 percent year-on-year to $380.7 million with U.S. sales up 15.4 percent. Orders also increased y 22.3 percent. Operating income rose to $29.2 million from $14.1 million in the same period last year.
• HNI Corporation announced that its 3Q2010 office furniture sales increased 3.5 percent year-on-year to $387.4 million. Earnings before interest and taxes were $34.7 million, down from $44.2 million in the same period last year. Management noted that demand for its office furniture products is strengthening. For its first half 2010, sales were off only 1 percent.
• Knoll, Inc. reported that its 3Q2010 sales rose 11.5 percent to $202.1 million. Operating profit was $19.1 million, up 13.7 percent. Sequentially net sales and operating profit increased respectively by 5.1 percent and 60 percent over 2Q. Management indicated that the company is in a genuine recovery in demand.

Wood Flooring

The U.S. International Trade Commission has issued an affirmative determination in its preliminary investigation into Chinese engineered wood flooring. The case will now be turned over to the Department of Commerce who will rule whether anti-dumping duties are warranted. A ruling is expected on or about March 30, 2011.

This action, which alleges that imports selling for prices below the cost of manufacture have harmed the domestic industry, was brought by a group of U.S. engineered flooring producers including Shaw and Mannington. A similar case was brought against Chinese wood bedroom producers and resulted in the imposition of duties on bedroom imports made there. These duties were recently renewed for another five-year term but have done little to stem the death of bedroom production in the U.S.

At the company level…

• Lumber Liquidators reported a 4.7 percent increase in revenues in its 3Q2010 to $147.2 million. Gross margin slipped slightly to 35.2 percent from 36.4 percent while operating margin also declined from 8.9 to 4.7 percent. Management blamed the rollout of its new SAP enterprise computer system as a drag on store and warehouse productivity. Inventories also surged by 50.8 percent during the quarter.

Non-Residential Construction

After indicating a modicum of growth in September, the American Institute of Architect's Architecture Billings Index (ABI) dipped back below 50 in October to a score of 48.7 as architecture firm billings declined for the month. The report noted that it may take several more months for sustained growth to be reported by architecture firms. Inquiries for new work remain quite high at 61.7. The vast majority of firms reported that the value of their signed design contracts for October was about the same as in September.

Art Raymond is senior vice president of operations at Hooker Furniture Corporation in Martinsville, VA, and longtime contributor to The Cutting Edge. Comments and questions are welcomed at araymond@hookerfurniture.com.

PUBLIC POLICY

2011 Public Policy Priorities, by John Satagaj, email@jsatlaw.com

SMALL BUSINESS' 2011 NEW YEAR'S RESOLUTION: "DON'T LEAVE IT TO THE LAST MINUTE"

The Small Business Legislative Council (SBLC) has set its priority agenda for 2011 and the principal goal is to convince the 112th Congress and the President to act early on unresolved small business concerns.

It is hard to believe the 111th Congress did not repeal the expansion of the tax information reporting requirement enacted last year. While there was nearly universal agreement that Congress did not fully comprehend the magnitude of burden they were imposing on small businesses when they expanded the requirements for issuing IRS Forms 1099, Congress failed to rise above health care reform politics to repeal the expansion. SBLC calls on Congress to make repeal the first order of tax policy business. Passage would send a message that the 112th Congress is willing to do more than talk about small business. (For SBLC, our goal is make our voice heard. We were telling Congress as early as the spring of 2009, the Form 1099 expansion was a nightmare waiting to happen.)

Our next priority is for Congress to pass permanent estate tax relief. While the 111th Congress extended relief for two more years, we would hope the 112th Congress has learned a lesson from the last decade. Do not wait until the eleventh hour to deal with the permanency issue. It is time folks understood that it is as much about the stupid and wasteful estate planning things small business owners do to avoid having their heirs close or sell the business in order to pay the estate tax as it is about how many pay the tax. If Congress has done what SBLC had advocated they do six years ago, which was essentially pass the relief just recently enacted but made permanent, we could have saved small businesses countless hours and millions of dollars in unnecessary estate tax planning. To the 112th Congress our message is make the $5 million exemption (indexed), lower top rate, and the portable spousal exemption permanent and do it now.

SBLC renews its long-standing call for meaningful investment in our nation’s infrastructure. Our nation’s small businesses both build that infrastructure and rely on that infrastructure to provide their goods and services. Within that general goal, we continue to support adequate funding for the Highway Trust Fund with the proceeds used solely for the purposes of the Fund on an annual basis.

As health care reform regulations continue to unfold, SBLC’s goal is to work to identify potential problems for small business and pursue mitigating policies.

As Congress explores the potential for tax reform, SBLC will endeavor to make certain that the consequences for small business are clearly identified and understood. Our experience during the 1986 tax reform debate was that small business bore an unfair share of the base-broadening and was not a beneficiary of the corporate rate reductions. It is important to understand which "tax expenditures" are more directly tied to small businesses' effective tax rates to strike the correct balance in sound public policy.

Finally, if new regulatory initiatives of any kind are unveiled, SBLC will continue to work with the Chief Counsel for Advocacy for Small Business to identify ways to mitigate the impact on small business.

The Small Business Legislative Council is a permanent, independent coalition of over 50 trade and professional associations that share a common commitment to the future of small business. Our members represent the interests of small businesses in such diverse economic sectors as manufacturing, retailing, distribution, professional and technical services, construction, transportation, and agriculture. Our policies are developed through a consensus among our membership. Individual associations may express their own views.

INDUSTRIAL DUST

The next important step will be initiated in April as the "Action" calls for "Initiate SBREFA" (Small Business Regulatory Enforcement Fairness Act (SBREFA). The rule is an economically significant rule defined as those rules that will have an annual impact on the economy of $100 million or more or will have any material adverse affect on "the economy, productivity, competition, jobs, the environment, public health or safety, or State, local or tribal governments or communities.

SBREFA

Combustible Dust

The Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) requires that the Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA) receive input from affected small businesses before proposed rules are published. This requirement is in addition to the other mandates of the Regulatory Flexibility Act.

When an EPA or OSHA proposal is expected to have a significant impact on a substantial number of small entities, the agency must notify the Office of Advocacy. Advocacy then recommends small-entity representatives to be consulted on the rule and its effects.

The agency then convenes a Small Business Advocacy Review Panel, consisting of officials from the agency, the Small Business Administration's(SBA) chief counsel for advocacy, and the Office of Management and Budget's(OMB) Office of Information and Regulatory Affairs. The interagency panel reviews the draft proposed rule and the related analysis prepared by the agency. In addition, the panel collects advice from identified small business representatives and submits a report to the agency within 60 days.

Panel reports often include comments on the agency's preliminary analysis of the impact of the rule on small businesses, and recommendation for regulatory alternatives. The agency reviews the report, makes any appropriate revisions to the rule, and publishes the proposed rule with the panel report as part of the record.

The panel process takes place in the early stages of the rule making. It does not replace, but enhances, the important step of the publishing the proposed rule and accompanying economic analysis for public comment.

DOL (Department of Labor)/OSHA Rule

BUSINESS DEVELOPMENT

Bookmark this page http://www.wmma.org/members/model/forecasting_tools.cfm to access more information and monthly reports! Use your member username and password. Contact Association Headquarters if you need assistance.

Fall 2010 Economic Forecast Report
Spring 2010 Economic Forecast Report
Manufacturing ISM Report on Business
Construction Put in Place - March 2010
Manufacturers' Shipments, Inventories and Orders - April 2010
Manufacturing and Trade Inventories and Sales - March 2010
New Residential Construction - April 2010
Purchasing Managers Index - April 2010
U.S. Leading Indicator - April 2010

NEWS YOU CAN USE

This time every year the Membership Services Committee of the WMMA reaches out to members looking for nominations for the prestigious Ralph B. Baldwin Award of Excellence.

The WMMA® Baldwin Award is named for Ralph B. Baldwin, long-time member and Past President of the WMMA®. During his career with Oliver Machinery Company and his involvement with the WMMA®, Ralph exemplified the kind of commitment that really makes an Association function at, or near, its peak potential. It is in the spirit of Ralph Baldwin's vitality and dedication to the woodworking industry that this award was created — to recognize those who have contributed similar levels of involvement and to encourage others to do the same. The award's significance can be quickly determined by the prestigious list of recipients.

Baldwin Award Entry Form

Baldwin Award Competition Rules

FIMMA Brasil

FIMMA Brasil — the largest trade fair in Latin America for the wood and furniture production chain. The International Fair of Machines, Raw Materials and Accessories for the Furniture Industry — FIMMA Brasil — showcases the leading edge technology for the sector. Every two years, in Bento Gonçalves, in Serra Gaúcha, the entire production chain comes together to get to know new products and to do business in one of the world's six largest trade fairs in the segment.

The FIMMA woodworking industry exhibition in Brazil www.fimma.com.br has now grown in prominence being second only to LIGNA at Hanover in its size and international importance for Europe and the Americas. In addition to exhibiting cutting-edge equipment and inputs for the furniture sector, FIMMA.

WMMA MERCOSUR EXPORT CONSORTIUM

The WMMA Mercosur Export Consortium can accommodate a few more FIMMA participants that is included in our $2,000 trial membership.

Trial Membership:

A 4 month MERCOSUR CONSORTIUM trial membership includes exhibiting your company in Brazil at FIMMA.

Details

WMMA Mercosur Export Consortium Leading Members

Delauro Calls For Reinvestment in Manufacturing
Reintroduces bipartisan legislation to help businesses prosper, create jobs, and boost our economy

Congresswoman Rosa DeLauro (CT-3) introduced the bipartisan Manufacturing Reinvestment Account Act today, a bill that would provide America's manufacturing businesses with greater opportunities to grow and compete in today's global economy.

The legislation would provide manufacturers with the option of establishing a manufacturing reinvestment account (MRA), similar to an individual retirement account (IRA), at a local community bank, and to make annual contributions into these accounts of up to $500,000 over a period of seven years. Funds then distributed from the account can be used to invest in machinery, facilities and job training thereby providing a bigger return on the dollar and allowing manufacturers to develop their businesses and boost our economy. For example, if a manufacturer contributes $500,000 annually and the account earns interest at five percent, with a low 15% tax rate on amounts distributed from the MRA, after 7 years the manufacturer would have approximately $3.6 million to reinvest in the business.

"If we want our nation to continue to be successful and competitive in the global marketplace, we must return to an outlook in America that prizes and supports domestic manufacturing. I believe that we need to move away from being a nation that simply buys things, and return to a nation that builds things right here. The Manufacturing Reinvestment Account Act does this, enabling America's manufacturers to invest in their business and get a bigger return on their hard-earned dollars. I worked with local manufacturers in my district to write this bill, listening and learning from them and addressing their concerns. In today's tough economy, our businesses need our support and our focus must be on creating and sustaining jobs for hardworking Americans — that is why I introduced this legislation on the first day of the new Congress."

Manufacturers: OSHA's Withdrawal of Noise Proposal a Positive Step for Job Growth

Excessive Government Regulations Have Slowed Economic Recovery

National Association of Manufacturers (NAM) Vice President for Human Resources Policy Joe Trauger issued the following statement regarding the Occupational Safety and Health Administration's (OSHA) withdrawal of its proposed changes to noise control requirements:

"OSHA's withdrawal of this unnecessary proposal is a clear sign that the agency heeded the calls of manufacturers regarding the economic impact of these expensive and burdensome noise control requirements. Manufacturers are committed to protecting their employees, but there is no evidence that this proposal would have enhanced workplace safety.

Manufacturers hope this decision signals that OSHA will slow down on other costly and unwarranted rules that will crush economic growth and job creation. The announcement is an important step in beginning to restore the collaborative relationship between OSHA and employers that has proven over the years to be the most effective approach to improving workplace safety.

With the unemployment rate still hovering at unacceptable levels, NAM encourages the Administration to continue its focus on reducing excessive government regulations to clear the way for job creation.

National Association of Manufacturers Names Jay Timmons President and CEO

The National Association of Manufacturers (NAM) today announced that it has named Jay Timmons president and CEO, effective January 2011. Timmons has served as Executive Vice President at the NAM and will succeed former Michigan Governor John Engler in this position.

Timmons has extensive experience in government relations, public affairs, political campaigns and business. He is a proven leader at the NAM, working alongside the nation's leading manufacturers, members of Congress, and the Administration to advance a pro-manufacturing agenda.

"I have a deep respect for Jay and his exceptional experience," said Michael Campbell, NAM Board Chair and president and CEO of Arch Chemicals, Inc. "It is a testament to the depth and development of talent at the NAM that we have an internal candidate as well qualified as Jay to succeed John Engler. Jay has a keen understanding of manufacturing and he has relationships on both sides of the aisle in Washington. Jay has helped lead the NAM during good economic times — and has remained unflappable during the most difficult economic times manufacturers have ever faced. His experience and personal conviction for the manufacturing cause make him an ideal choice for this position. I look forward to continuing to work closely with Jay as we build upon the NAM's great success and momentum in advancing a national jobs agenda."

In his current position as Executive Vice President at the NAM, Timmons oversees all policy development, communications, government relations, and advocacy efforts. Timmons is a native of Chillicothe, Ohio, a manufacturing community that instilled in him the value of manufacturing and its positive impact on people, families and communities.

"My grandfather was a manufacturing worker and I benefitted from learning firsthand the commitment and pride manufacturers have for their products, jobs and community," said Timmons. "I am humbled and honored to now lead an organization that advocates and fights for an environment and platform in which American manufacturers can create, innovate and employ millions of Americans."

Timmons' experience includes service as a Chief of Staff in the U.S. House and Senate as well as the Virginia Governor's office. He is also a member of the Business Industry Political Action Committee (BIPAC) Executive Committee and the Board of Directors for Local Finance Solutions, Inc. Timmons is a passionate advocate for the adoption of companion animals and is the immediate past Chair of the Washington Humane Society. Timmons attended The Ohio State University and resides in McLean, VA.

Spring is Coming ... with New Growth

While the 2010 roller coaster provided excitement and disappointment, at the end of it all hardwood production was up about 30% over 2009 — good news for the industry. All of us might prefer steadier growth with fewer surprises.

Year end hardwood production was still running 10% — 15% higher than the last quarter of 2009.

With 2010 production about 25% below 2006 and 2007 numbers, we need another 33% growth to get back to where we were. The good news is that we will probably get there during the next two years. We emerged from a deep hole in 2010. Growing hardwood purchases should push production up 8%-12% per year for 2011 and 2012. If the housing market begins a stronger rebound by the end of this year, that would be an added bonus for hardwood production.

Considering the large increases at the beginning of last year, we will probably see some periods where 2011 production is lower than 2010 levels.

However, plan for slowly growing cumulative business during the coming months (with appropriate personnel and equipment) and remember that long term growth is rarely a straight line. There will be peaks and valleys — bumps in the road — that will require flexibility in production and purchasing. Being able to adjust to these fluctuations will be an important factor for ongoing success.

The ANCHORSEAL Index of Hardwood Production reflects the gallons of hardwood end sealer products sold each month to be used in the production of quality hardwoods.

The 12 month comparison (12/12) is a measure of the past year's hardwood production, compared to the year previous.

The 3/12 compares the most recent 3 months end sealer purchases with the same 3 months of the previous year, giving a prediction of hardwood production during the next 45-90 days.

ANCHORSEAL Index
We're in this together

The ANCHORSEAL Index of Hardwood Production reflects the gallons of hardwood end sealer products sold each month to be used in the production of quality hardwoods.

The 12 month comparison (12/12) is a measure of the past year's hardwood production, compared to the year previous.

The 3/12 compares the most recent 3 months end sealer purchases with the same 3 months of the previous year, giving a prediction of hardwood production during the next 45-90 days.

Safety Standard for Fixed Angle Jump Saws

Developed by the Accredited Standards Committee O1, Safety Requirements for Woodworking Machinery, of which WMMA is secretariat, the ANSI O1.1-1 (2007) is the first of a series of new woodworking machine-specific safety standards and is intended to be used in conjunction with ANSI O1.1.

The ANSI O1.1-1 (2007) standard, Safety Requirements for Fixed Angle Jump Saws, is available for purchase in electronic format from the ANSI eStandards Store. WMMA members receive a 25 percent discount off WMMA safety standards. Machine-specific standards will be $25.00 for non-members and $18.75 for members. To order, click here.

At checkout, WMMA members can enter their Member/Discount Code to receive the discounted price. Click here to get code.

About the Jump Saw Standard

The scope of the jump saw standard, O1.1-1, covers the safety requirements for the design, installation, care and use of single blade, non-adjustable cut angle jump saws and certain related accessory equipment, used in industrial and commercial applications, having a total connected power of 5 hp (3.7 KW) or greater, or having 3-phase wiring.

Fixed angle saws may also be known as chop saws or cutoff saws. Jump saws have historically been pivot-mounted devices. However, modern jump saws may also use linear vertical travel and are therefore included in this standard. Fixed angle or non-adjustable cut angle are not intended to mean that the blade cannot be adjusted for precision or capacity, but rather that its cut angle is fixed by its design.

ANSI O1.1

An updated version of the umbrella standard, ANSI O1.1, is currently in its public review phase, in accordance with ANSI procedures.

IWF 2012

IWF 2010 is over, but you can still connect to the solutions and products you need for your company to succeed using IWFAtlanta.com.

Find Your Solutions at IWF!

Read product descriptions, view images and videos from IWF exhibitors specifically for your industry. Join your segment's community to see what others in your industry are talking about and make connections with suppliers and customers. See the list of industry segments with products at IWF 2010.

IWF 2010

Statement of Attendance

IWF Industry Community — Your industry resource

Check out the IWF communities page. Join a group or start your own. IWF is where the entire industry comes together and these social communities are the best place for you to network with your peers, find solutions to your challenges and most of all find new ways to improve your business.

WIC 2011 — May 4-6, 2011

The one conference in 2011 that you cannot afford to miss!

New this year — New Participating Association
North America Building Material Distribution Association

Top Ten Reasons to go to WIC 2011

• Our Industry Needs You — You Need Our Industry
• Participate in Industry Meetings
• Network with Top Industry Leaders and Professionals
• Attend Forums: Public Policy — Economic Outlook — Industrial Dust
• Sit in Joint Industry Meetings/Panels — Education/Technology Review
• Come to Associations' Annual Meetings
• Apply Concepts from Industry Seminars
• Contact Tables — Meet Importers, Manufacturers, Suppliers, Distributors
• Develop Relationships at Social Events and Activities

Bonus Reason #11 — BUSINESS IS DONE HERE!
Industry leaders come together for WIC 2011 to gather vital business information from this 'One Conference'. You will find market information, technology discussions for improved business management and development, end users speak out on their needs and manufacturing trends, industry spokespeople discuss industry issues that affect your business and future decisions, and more! Everyone who attends this 'One Industry...One Conference' will gain a wealth of knowledge, information, valuable contacts and the best chance to realize 'Endless Possibilities' for their company: an unmatched valuable resource for your business future.

Get all of the conference details

MEMBER NEWS

I have been an adult "non-traditional" college student since 2004 and my journey to graduation is far from over. At this time, I am considered a third-year student at Ferris State University, but I will not graduate for another four years. The decision to return to school came easy when I enrolled six years ago at the age of 25. After working for an automotive manufacturer for seven years, I was told that the plant was closing and I would be laid off. I was anxious to fulfill a promise I made to myself when I choose work instead of college after high school. My motivation was improved by my optimistic belief that a degree could help my job prospects in the Engineering field in uncertain economic times.

Since that time, the decision and ability to continue my education has become more and more difficult. I am now married and a proud father to a two-year old son. To support my family and pursue my ambition to become an Engineer, I am a full time employee working Monday through Friday from 8:00 a.m. to 5:00 p.m. at Carter Products.

It goes without saying that the financial commitment needed to complete a degree program while balancing the financial responsibilities of my family is a challenge. I have been responsible for paying my own way since 2004. I often found myself questioning whether I should continue on this journey and worrying about how I would find the money to pay for this additional expense. It is likely that I may have had to give up on my journey if it were not for the WMMA Scholarship Program which has provided me with some financial relief, and therefore the opportunity to continue working toward earning a college degree.

My efforts to earn a degree are for my family and their future as much as, if not more than, for my own. I will be the first in my family to graduate from college. I will have set an example for my own son. I want him to be raised knowing the value of education and understanding that no matter the challenges, the hard work and effort to obtain a college degree is worth it. A degree is a symbol of achievement. It will confirm my considerable effort and my persistence to reach my goal.

Not only will the WMMA Scholarship Program have helped me to fulfill my potential, but it will have also allowed me to continue on the path to advancing my career at Carter Products. I am fortunate that Carter supports me in this journey and considers me an important investment to accomplish their current goals as well as to have the right person in place to contribute toward their future growth and profit.

As one of the many families that have benefited from this Scholarship Program, I would like to thank the WMMA for their commitment to higher education. I am very grateful for being a recipient of this Scholarship Program and having had the opportunity to receive this benefit.

New Member

Wagner Meters

Wagner Meters is the respected world leader in moisture meter and moisture management solutions. Wagner's proven technology, design and "Made in the USA" manufacturing, continue to provide the most user-friendly, accurate and reliable meters on the moisture meter market worldwide. The IntelliSense(tm) Technology behind each professional moisture meter allows accurate readings deep in the wood, unaffected by surface moisture. As a US manufacturer for over 40 years, they produce, design and market from their offices in Rogue River, Oregon.

Visit Wagner's website