Success StoryQuality Forest and Wood Industry Program Training in Hardwood Markets and Grading Systems Saves/Earns Wood Industry $26.6 Million Annually



Quality Forest and Wood Industry Program Training in Hardwood Markets and Grading Systems Saves/Earns Wood Industry $26.6 Million Annually

Author: Chad Niman

Planning Unit: Forestry

Major Program: Forest Education: Health, Management, and Utilization

Outcome: Intermediate Outcome

In 2021, 5 programs were delivered covering hardwood grading systems, hardwood lumber inspection, cant product specs, material handling, defects and characteristics, wood drying, and hardwood markets. This is a very focused and highly skilled forest and wood industry training for sawmill and wood industry employees. The trainings allowed 1 business to get up and going, and 6 others to expand their operation. Feedback from employers identify 21 renewable wood industry jobs created as a result of hardwood market and grading system, and wood manufacturing trainings. The return from time and efforts focused in support of forest and wood industry training is was $26.6 million dollars saved/earned in 2021. Employees also learn that their jobs and industry are collectively important for renew-ably generating $14 billion of economic contribution to Kentucky, along with playing an important in carbon sequestration as a component of solutions in reducing climate change.

Lumber manufacturing and sales are a significant contributor to the Kentucky economy as half our Commonwealth is in trees and wood industries can be found in 112 of our 120 counties. Lumber and cant production are important components of the $14 billion dollar Kentucky Forest Sector. The grading system in which lumber is bought and sold under is the National Hardwood Lumber Association (NHLA), Hardwood Lumber Grading Rules. Forest industries in Kentucky have voiced concern that there is not enough skilled labor in the region with the knowledge and skills to understand the rules and apply them properly. If someone is not properly trained in the lumber grades they could giving away product and the mill would go out of business or they could be sending material that does not meet the specifications requested for the purchaser and lead to loss of customers, financial loss, expensive disputes and even litigation. The hardwood grading rules are utilized in both the domestic and export markets for determining quality and value. Due to the global nature of our economy and export markets the NHLA grading rules are more important now than ever in ensuring that our domestic industries have a grading system in place that is universally fair and tailored to our domestic resource (our hardwood forests). It is also important for companies to receive the quality of products that they have purchased to discourage poor business practices and ensure clear communication. 

Primary and secondary industries in attendance had a combined production of 243 million bdft annually. Students reported a 15.3% average increase in their lumber grading knowledge after taking the course. Several of the companies involved in these continuous improvement quality hardwood training programs have had multiple trainings spanning several years allowing  for noticeable quality, grade and value improvement. To expand beyond the dollars a few brief stories below pertaining  to some of the companies assisted this year.

One large industry included in these trainings purchases large volumes (58 million board feet purchased by this facility last year) of low- to medium grade oak lumber from over 50 different sawmills in Kentucky demonstrating the importance of clear communication as well as understanding and application of hardwood grading systems to conduct business. Three years in a row this 4 day training program has been conducted at this facility. It should be mentioned that the product this company puts out is very valuable and is vital to our entire supply chain of products consumed daily. Trainings conducted through covid-19 to provided essential employees with knowledge to expand their personal career growth and fill vital manufacturing and inspection roles at these facilities should be noted.

Another, small family sawmill and logging operation is located in the heart of coal country in the far eastern side of the state. Three years in a row I have conducted trainings for the entire sawmill crew and trained their graders. This facility paying $20-25 dollars an hour for highly skilled labor is constantly under pressure from workers leaving for higher paying (upwards of $35/hour) coal mining jobs in this competitive labor market. Through extension, training was conducted to train new and existing employees to improve quality and grade outcomes which are vital to the survival of this multi-generational family operation.

Another operation, a small Amish owned and operated sawmill hosted a quality lumber training program with nearby sawmills. The mill employees were able to have open discussion with other mills graders on quality lumber and defect topics, while I lead them through the grading and inspection. This mill was just starting up, which made the timing of training important to the success of this operation and proper grading and valuation of their lumber products. One of the operations with employees in attendance for this training was a moderate sized wood manufacturing facility from the heart of Louisville. We started the program the first day at the Taylor County Extension office for the classroom recitation and appreciate the use of their office.

3. Impacts: For the short courses students indicated a 10.96% average improvement in proper assessment and valuation of lumber produced and purchased. The total impact of this short course is estimated to be $26.6 million dollars saved or generated based on the percentage of lumber improved and material/cost savings by proper assessment and valuation of lumber graded from the attending facilities annual production. 

3. Assessment: Post meeting evaluations were used to determine the impacts and knowledge gained. 






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