Lumber manufacturing (primary industry and sales are a significant contributor to the Kentucky economy. We know that the more cabinets, flooring, molding/millwork, and furniture (secondary manufacturing) made from the lumber produced in Kentucky, the more jobs and money that the wood from our forests generates to provide for the Commonwealth. Local wood keeps local forests healthy and productive. Primary and wood industries can be found in 110 of our 120 counties. The grading system in which billions of dollars and board feet of hardwood lumber are bought and sold both domestically and around the world 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. Workers with hardwood lumber manufacturing and grading knowledge can easily acquire $16-$28/hour wages depending upon specific job within the facility, and independent level of experience and return in yield and value to the lumber.
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 comparable courses is $600-$650 per student, which has limited many workers from obtaining training despite the shortage of trained labor. By bringing the lumber rules and application knowledge to the workforce utilizing classroom space at the county extension offices and at the local mills we were able to offer a variety of different length courses from $100 - $300/student. This was an immediate savings for industries, allowing for more attendees to be sponsored. There were 4 courses offered this year with 78 attendee’s total. Most attendees were from Kentucky, but included students from North Carolina, Tennessee, Indiana, and Ohio. The 26 mill facilities in attendance reported having a combined annual production of 247 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 $197.6 million dollars by current market averages. Students indicated a 6.87% average improvement in proper assessment and valuation of lumber produced and purchased. The total impact of this short course is estimated to be $4.9 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.