Lumber manufacturing and sales are a significant contributor to the Kentucky economy and wood industries can be found in 110 of our 120 counties. The grading system in which hardwood 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 ability 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 reliance of export markets the NHLA grading rules are more important now than ever in ensuring that Kentucky 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. To address these area of need, University of Kentucky Forestry Extension has worked to develop a program focused on the grading rules and application.
The average cost of a course of this nature is $600-$650 per student. By partnering with Kentucky Forest Industries Association and utilizing classroom space at the county extension office we were able to offer a variety of different length courses from $100 - $475/student. This was an immediate savings for industries, allowing for more attendees to be sponsored. There were 4 courses offered this year with 28 attendees total. Most attendees were from Kentucky but included students from North Carolina, Tennessee, Indiana, and Ohio. The 18 mill facilities in attendance reported having a combined annual production of 123 million board feet. The facilities production was very evenly distributed between green (non-dried) and kiln dried material. The combined value of these facilities annual production is conservatively valued at $105.2 million dollars by current market averages. Students indicated a 6.21% average improvement in proper assessment and valuation of lumber produced and purchased. The total impact of this short course is estimated to be $4.6 million dollars saved or generated based on the percentage of lumber improved by proper assessment and valuation of lumber graded from the attending facilities annual production. Actual impact could be more or less depending upon market price fluctuations and production changes.