Success Story Quality Forest and Wood Industry Program Training in Hardwood Markets and Grading Systems Saves/Earns Wood Industry $8.9 Million in 2023



Quality Forest and Wood Industry Program Training in Hardwood Markets and Grading Systems Saves/Earns Wood Industry $8.9 Million in 2023

Author: Chad Niman

Planning Unit: Forestry

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

Outcome: Intermediate Outcome

Hardwood grading systems provide a mechanism for agricultural products to be assessed and an economic value determined to conduct business. Training of employees and entrepreneurs to understand the details of grading systems is vital to a company staying in business. Only a few trainings of this nature are available in the region each year and the cost of training is quite expensive.

 

In 2023, 2 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 return from time and efforts focused in support of forest and wood industry training was $8.9 million dollars saved/earned in 2023. Employees also learn that their jobs and industry are collectively important for renewably generating billions of economic contribution, 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 $18.6 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. 

Students reported a 14.9% 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.

3. Impacts: For the short course's students indicated an 11.7% average improvement in proper assessment and valuation of lumber produced and purchased. The total impact of this short course is estimated to be $8.9 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. 






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