Success StoryForest and Wood Industry Program Training in Hardwood Markets and Grading Systems Saves/Earns Wood Industry $7.2 Million



Forest and Wood Industry Program Training in Hardwood Markets and Grading Systems Saves/Earns Wood Industry $7.2 Million

Author: Chad Niman

Planning Unit: Forestry

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

Outcome: Intermediate Outcome

In 2020, 7 programs were delivered covering hardwood grading systems, hardwood lumber inspection, cant product specs, material handling, defects and characteristics, wood drying, and hardwood markets targeted forest and wood industry training for sawmill and wood industry employees. The trainings allowed 1 business to get up and going, and 4 others to be able to expand their operation. Feedback from employers identify 17 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 $7.2 million dollars saved/earned in 2020. Employees also learn that their jobs and industry are collectively important for renew-ably generating $14 billion of economic contribution to Kentucky, along with being 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 and wood industries can be found in 112 of our 120 counties. Lumber and cant production are important components of the nearly $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 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 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. Primary and secondary industries in attendance had a combined production of 237 million bdft annually. One large industry included in these trainings purchases large volumes 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. Students reported a 14.6% average increase in their lumber grading knowledge after taking the course.

3. Impacts: For the short courses students indicated a 5.96% average improvement in proper assessment and valuation of lumber produced and purchased. The total impact of this short course is estimated to be $7.24 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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