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Mar25NL

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Message March 2025Welcome new member pg 9Manager's Moments pg 3New USFS Chief pg 10

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2Q uote for the Month"The best way to predict the future is to create it." - Peter DruckerOutlookWest Coast sources reported steady sales in line with last year. A California source saw growth over two years, while a Washington source noted a decline compared to two years ago.A Washington lumber source reported steady sales over the past year, though lower than two years ago. Economic factors connue to impact demand, with sporadic customer acvity. Higher-grade lumber has performed best, but overall market stability and consistency remain key challenges for millwork manufacturers and distribuon yards..In this issue:* Upcoming Events* Quote for the Month* Outlook* Manager's Moments* Hardwood Federaon Update* News* MovaonNo. 672March 2025WHA Board of Directors - OcersTeana Larson PresidentLouie Guyee Vice PresidentVernadel Peterson TreasurerAaron Blumenkron Immediate Past PresidentWHA Board of Directors - Board MembersSco ClarkAdam DupliseaMarlin LangworthySco LeavengoodMike LipkeBrad MichaelRyan PetersonDennis SandersDavid SweitzerSecretary/ManagerPO Box 1894Bale Ground, WA 98604Ph: (360) 835-1600Web: www.westernhardwood.orgEmail: wha@westernhardwood.orgUpcoming Events March 17-19, 2025IHLA Convention & Expositionwww.ihla.org/ihla-conventionMarch 25-27, 2025International Mass Timber Conferencehttps://masstimberconference.com/April 16, 2025WHA Board of Directors Meetingwha@westernhardwood.orgMay 28, 2025WHA Board of Directors Meetingwha@westernhardwood.orgAugust 18-20, 2025WHA Annual Conventionwha@westernhardwood.org

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3One California lumberman reported steady sales, with customers consistently placing orders due to the reliability of his inventory. While typical for the winter season, he has seen an upward trend compared to two years ago. His company supplies White Oak, Hickory, and Walnut, selling to end-use manufacturers, distribuon yards, and ooring companies. Another California lumber source reported so sales over the past six months, inuenced by seasonal factors and weather. While White Oak remains popular, some customers are shiing to Red Oak and Poplar. Despite economic concerns, many remain opmisc about market condions improving in 2025.Manager's MomentsDave SweitzerSecretary/Manager, WHAGrowing the Western Hardwood Associaon can make a dierence. Note: The WHA Member Engagement/Networking commiee recommended to the board and the board approved a subcommiee to study the rebranding of the WHA in order that it can grow and be an even stronger force for the good of the industry and its members. The Western U.S. hardwood industry has signicant opportunies for expansion through strategic markeng, sustainability, supply chain improvements, and trade partnerships. Here are a few key areas. Expanding Market Reach - Domesc and internaonal demand for hardwoods in furniture, construcon, and design is forecast to increase. Western species like alder, oak, maple, and walnut are valued for durability and aesthecs. Hardwoods from other secons of the country and the companies that sell them should be members of the WHA. Encouraging Central and Eastern U.S. Membership - To expand inuence and collaboraon, the WHA could acvely encourage Central and Eastern U.S. companies to become members. WHA can oer membership benets such as market insights, networking opportunies, sustainability guidance, and advocacy support can be aracve incenves. Hosng industry events, webinars, and trade summits can foster engagement. Providing tailored business resources, exclusive access to research, and supply chain collaboraon opportunies will demonstrate value to potenal members. Strengthening es with regional trade associaons and forming cooperave markeng iniaves can further integrate Central and Eastern businesses into the Western Hardwood Associaon’s network. Patrick Lumber CompanyOver 100 Years in Business---- Est 1915 ----Products:Doug FirWestern Red Cedar Southern Yellow Pine Western Hemlock Alaskan Yellow Cedar West Coast Softwoods West Coast HardwoodsServices:Remanufacturing Packaging & Transport Consultation Procurement33415 Noon Rd. Philomath, OR 97370503-222-9671sales@patlbr.comFollow us on Instagram @Patricklumberpatlbr.comPatrick Lumber Company is a secondary manufacturer and exporter of niche high-grade woodproducts sold to a network of worldwide distribution.

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4Safety Stor ageEffici ency Enhance the Safety, Capacity & Efficiency of your Storage FacilityManage your hardwood safely, more producively, and using less space with Combilit’s materials handling soluionsOur range of electric forklits combine powerful mulidirecional performance, emission free operaion and a host of up to the minute technologies to ofer the most eicient way to handle long loads.Contact Us TodayTToo ffiinndd oouutt hhooww CCoommbbiilliifftt ccaann hheellpp yyoouu ssaaffeellyy aanndd eeffffiicciieennttllyy llooaadd ccoonnttaaiinneerrss iinn 66 mmiinnuutteess..combilift.comHardwood Amanda 7.5x4.875.indd 1Hardwood Amanda 7.5x4.875.indd 1 22/08/2022 16:47:2922/08/2022 16:47:29

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5Sustainability and Cercaon - Sustainability inuences consumer preferences and regulaons. Responsible forestry pracces ensure long-term resource availability. Cercaons like FSC and SFI enhance credibility. Invesng in sustainable harvesng, reforestaon, and carbon footprint reducon aligns with global environmental goals and aracts eco-conscious buyers. Enhancing Supply Chains - Opmizing supply chains is crucial for eciency. Companies should invest in technology-driven soluons for inventory management and tracking. Strengthening partnerships with suppliers and logiscs providers reduces costs and improves delivery mes. Processing facilies add value to raw materials before export, increasing protability. Trade Partnerships and Policy Advocacy - Collaborang with other trade organizaons, government agencies, and business councils can expand export opportunies. Navigang trade agreements and compliance with regulaons like EUTR and China’s Forest Law ensures market access. Conclusion - By expanding market reach, priorizing sustainability, opmizing supply chains, and strengthening trade partnerships, the Western U.S. hardwood industry can achieve long-term success and contribute to a more sustainable global wood market. Encouraging Central and Eastern U.S. companies to join the Western Hardwood Associaon will further unify and strengthen the industry, fostering greater collaboraon and growth. Update from Hardwood FederaonDana Cole, Execuve DirectorMarch 2025Tari Update - The confusion surrounding the many layers of the Administraon’s trade policy deepened on Wednesday aernoon. While speaking to the press, President Trump revisited the tari issue, largely repeang messages related to trade imbalances with Canada and the European Union (EU). New taris have not yet been imposed on the EU, but they will be announced “soon” at the rate of 25%. The President then surprised the audience by announcing that the 25% blanket taris on Canadian and Mexican goods will not take eect unl April 2, although the current pause on implementaon was scheduled to end on March 4. The White House later claried that the date to impose Canada-Mexico taris remains March 4 and that the President has not yet decided whether to extend the pause. On Thursday morning the President doubled down by conrming the March 4 date for our neighbors and

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7announced an addional 10% on Chinese goods. All of the taris announced or potenal, run up against the April 1 deadline for agency reports on reciprocal taris, aer which the Administraon would set taris on a country-by-country basis. Which scheme will take precedence or how they will work together is unknown. The Hardwood Federaon will connue to work on untangling the mulple tari threads currently in play an keep you posted. Administraon Proposes Fees on Chinese Ships, Dockworkers Approve Labor Deal - On February 21, the U.S. Trade Representave (USTR) announced it would propose fees on Chinese ships and operators in response to China’s growing marime inuence, which the Administraon deems to be an unreasonable risk to U.S. commerce. This is causing major concern from U.S. retailers, who fear the imposion of such fees will spike costs, which will be passed along to the consumer. Exporters, including those in the hardwood industry, could also face signicantly higher rates for cargo shipments to global markets. The Hardwood Federaon is engaged with the Retailers Associaon’s transportaon coalion and will provide wrien comments on the proposal. On a separate track, the Internaonal Longshoremen’s Associaon, which represents dockworkers at U.S. ports, approved a labor agreement with the U.S. Marime Alliance, which represents port operators. House Acts as Corporate Transparency Act Connues to Move Through Federal Courts - On February 10th, House lawmakers passed the Protect Small Businesses from Excessive Paperwork Act of 2025 (H.R. 736), a bill to push back the CTA’s ling deadline for businesses established before 2023 unl January 1, 2026. The CTA became eecve at the end of 2024 and requires small businesses to report the personal informaon of their owners and managers to the Financial Crimes Enforcement Network (FinCEN) at the Treasury Department. The bill now heads to the Senate. Meanwhile, in the federal courts, suspension of the reporng requirements hangs by a thread. While the Supreme Court ruled in favor of the federal government earlier this year, the ruling was limited to a single case. A separate ruling from a federal court in favor of the business community, eecvely suspending the reporng requirements, sll stands but could be contested soon. The Federaon will deliver updates as they unfold.Senate, House Lawmakers Meander Toward Budget, Tax Deal - On Tuesday night, the House narrowly approved its budget resoluon by a vote of 217 to 215. This brings lawmakers one step closer in a chaoc process to aempt to cra a nal, bicameral resoluon. Next crucial steps include negoaons with the Senate, which passed its version on Friday, February 21. The major dierence between the two frameworks is that the House bill bundles key priories into a single package, including defense, border security, energy and tax reform. The Senate version, however, would bifurcate the issues, with defense, border security and energy moving in one package while pushing tax reform into a separate vehicle. Much work needs to be done, not to menon a meeng of the minds on the extent of spending cuts, before Congress reaches agreement on a nal package. The Federaon will keep you posted on Wood treatment plant manufacturing, worldwide since 1983.The most environmentally friendly wood treatment ever known!Hydro-Thermo Modication 1-877-785-0274 www.americanwoodtechnology.comAmerican Wood Technology AWT Options: design, fabrication, layouts & accessories• Smallest footprint & simplest installation• Most gentle process available• Most eective heat transfer• Fastest process time & better product quality• Lowest processing cost per board footOur thermo plant designs provide:

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9developments. Register Now for Fly-In 2025!Taxes. Trade. Tari. Regulaons. Federal policy impacng you and your business is currently being debated on Capitol Hill. Don’t depend on others to speak for you! Join the Hardwood Federaon’s Fly-In to D.C. May 13-15 for your chance to make your voice heard!We schedule your meengs based on where you live and work. You and a group of your peers will visit Congressional oces, share your business story and insight, and become an advocate for policies that support the U.S. hardwood industry. Registraon is now open. Register for the Fly-In, make hotel reservaons, and review the acon-packed agenda here. This is the year to make a dierence! Register today!!If you are having trouble with the link above, please cut/paste the following URL into your browser: hps://thehardwoodfederaon.regfox.com/hardwood-federaon-y-in-2025.Member NewsMeet Clint Averi with Carbotech, WHA newest member! With over 35 years of experience in the hardwood lumber manufacturing industry, Clint has built a career dened by experse, leadership, and innovaon. As Carbotech’s Sales Manager for the Midwest, Great Lakes States, and Appalachian States, Clint brings extensive knowledge in equipment sales, sawmill operaons, kiln and planer management, maintenance, and project management. His deep understanding of reliability, troubleshoong, and safety ensures that Carbotech customers receive top-er soluons tailored to their needs.Founded in 1987 in Plessisville (Quebec) by Léo Campbell, Carbotech immediately enjoyed great success. The ever-increasing demand from customers will inially require a move in 1993 followed by several expansions, including a very signicant one in 2023, in order to increase producon capacity and thus adequately meet the demand for log-handling equipment.In 2015, Luc Houde, then general manager for two years, acquired the company with other investors and became its execuve vice-president. Since then, Carbotech has had the wind in its sails and connues to grow.In 2021, following the acquision of the company Autolog, made up of experts in automaon and

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10opmizaon, Carbotech and Autolog come under the management of Carbotech Group. Building on this partnership, Carbotech Group now oers turnkey soluons to the lumber industry throughout the world.In 2023, the establishment of a factory in South Carolina (United States) marks a major step in the expansion of Carbotech Group to ensure the connuaon of our excellent service oering in South America.In 2024, the acquision of Sawquip will expand our product oering by integrang sawing line equipment.In 2025, Carbotech Group is proud to announce a major strategic step: the unicaon of Carbotech and Autolog. This iniave strengthens the company’s identy, consolidates its market posion and opmizes its operaons. By simplifying its structure and pooling its strengths, Carbotech aims to maximize synergies between its teams and oer its customers a smoother, more consistent experience. This evoluon is accompanied by a restructuring of the management team to prepare for succession and support the company’s strategic vision. Among these changes, Luc Houde will occupy the posion of Chief Execuve Ocer and Patrick Leblanc the posion of Execuve Vice President and will take on the responsibility for the group’s overall operaonal strategyMeet our newest member, Clint Averi with Carbotech. Clint is Carbotech's Sales Manager for Midwest, Great Lakes States, and Appalachian States. Carbotech's principle products are Transverse Grading System, ABI (Board Idencaon), Grade Mark Reader, Stream Feeder, Log Merchandiser System, Linesha Trimsaw, Bin Sorter, Stacker/Package Maker, Waterfall Unscrambler, Sck Placer, Tilt Hoist, and many more.NewsThe Forest Service Chief is responsible for the leadership and success in accomplishing the mission of the Forest Service. U.S. Secretary of Agriculture Brooke Rollins announced on February 27th that Tom Schultz will serve as the 21st chief of the U.S. Department of Agriculture (USDA) Forest Service.“Tom is the right person to lead the Forest Service right now, and I know he will ght every day to restore America’s naonal forests,” said Secretary Rollins. “Together, Tom and the incredible employees at the Forest Service will work to execute the agenda of President Donald J. Trump to make America’s forests healthy and producve again.”Upon being sworn in, Schultz will replace Chief Randy Moore, who recently announced his rerement in a message to all Forest Service employees aer serving the agency for over four decades.“I’m incredibly grateful for the opportunity to be the next chief of the Forest Service. I will work relessly to further support and protect our rural communies. Working with our partners, we will acvely manage naonal forests and grasslands, increase opportunies for outdoor recreaon, and suppress wildres with all available resources emphasizing safety and the importance of protecng resource values,” said incoming Forest Service Chief Tom Schultz. “Chief Moore has been a diligent public servant and has demonstrated his steadfast commitment to stewarding our naonal forests and grasslands. We thank him for his dedicaon and leadership.” - USDA. (2025b, February 27). Secretary Rollins names Tom Schultz chief of the U.S. Department of Agriculture’s Forest Service. Home. - hps://www.usda.gov/about-usda/news/press-releases/2025/02/27/secretary-rollins-names-tom-schultz-chief-us-department-agricultures-forest-serviceTrump adds lumber to list of goods facing taris over 'next month or sooner' (Reuters) - U.S. President Donald Trump said on Wednesday he will announce fresh taris over the next month or sooner, adding lumber and forest products to previously announced plans to impose dues on imported cars, semiconductors and pharmaceucals. "I'm going to be announcing taris on cars and semiconductors and chips and pharmaceucals, drugs and pharmaceucals and lumber, probably, and some other things over the next month or sooner," Trump said at a conference in Miami. - Shalal, A., & Singh, K. (2025, February 19). Trump adds lumber to list of goods facing taris over “next month or sooner” | reuters. Reuters. hps://www.reuters.com/world/us/trump-says-he-will-announce-range-taris-over-next-month-or-sooner-2025-02-19/The U.S. Lumber Coalion in a leer to President Trump highlights the great success of the enforcement of the U.S. trade laws that has added eight billion board feet of producon capacity and produced an addional 30 billion

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1145 Years Leading Dry Kiln Efciency!kilnsales@nyle.com (800) 777-6953Hardwood Industries, Inc.www.hardwoodind.com“Partners in Success since 1981”Next Generation Distribution

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12board feet of sowood lumber since 2016. These increases alone are enough to build two million single family homes and has more than oset the decline in unfairly traded Canadian lumber imports. "Trade law enforcement against unfairly traded Canadian lumber imports has been a resounding success for American workers, companies, and forestry dependent communies, and has strengthened a stable supply chain of made-in-the-U.S.A. lumber to build American homes," stated Andrew Miller, Chairman/Owner of Smson Lumber and Chair of the U.S. Lumber Coalion. READ MORE.....The Federal Reserve holds rates steady as inaon cks up: As ancipated, the Federal Open Market Commiee maintained its interest rate target range at 4.25%–4.50% at its January meeng. In the press conference following the meeng, Federal Reserve Chairman Jerome Powell noted that the past couple of inaon readings have been more posive, which was evident in the latest reading of the PCE price index, rising 2.6% over the year in December.Why it maers: While high borrowing costs have been a challenge for manufacturers as a capital-intensive industry, manufacturers are also sensive to the challenges of elevated inaon. The PCE price index has cked up each month since September when the index was up 2.1% over the year. - excerpted from excerpted from “NAM-Weekly Economic Report - February 3, 2025”| NAM. Naonal Associaon of Manufacturers.: n. pag.On February 20th, U.S. Secretary of Agriculture Brooke Rollins announced that USDA will release the rst tranche of funding that was paused due to the review of funding in the Inaon Reducon Act (IRA). In alignment with White House direcves, Secretary Rollins will honor contracts that were already made directly to farmers. Specically, USDA is releasing approximately $20 million in contracts for the Environmental Quality Incenve Program, the Conservaon Stewardship Program, and the Agricultural Conservaon Easement Program.- USDA. (2025, February 20). Secretary Rollins releases the rst tranche of funding

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13under review. Morning Ag Clips. hps://www.morningagclips.com/secretary-rollins-releases-the-rst-tranche-of-funding-under-review/Aer 26 months contracng, manufacturing acvity expands: Aer showing signs of improvement in the fourth quarter of 2024, the ISM Manufacturing® PMI rose above the 50 threshold that indicates growth, increasing to 50.9% in January. Customer demand showed clear improvement, and inputs remained accommodave as output expanded.Why it maers: The ISM Index® for manufacturing acvity has been essenally in contracon for the past two years as demand for goods slowed post-pandemic. Therefore, an improvement in customer demand is a welcome sign. - excerpted from “NAM-Weekly Economic Report - February 10, 2025”| NAM. Naonal Associaon of Manufacturers.: n. pag.The West deserves a say in public lands - In Utah and across the West, the queson of who controls our vast public lands is not just a maer of jurisdicon — it’s about fairness, opportunity, and accountability. Aer the Supreme Court rejected Utah’s landmark challenge over federal control of public lands, we must connue to elevate a conversaon that has simmered for decades. Utah’s lawsuit raises crical issues about the West’s future. Federal land management has long shaped the economic, social, and environmental landscape of the region, yet states such as Utah are oen le with lile say in decisions that profoundly aect our communies. The sovereignty of Western states is connually impeded by federal agencies that ignore the needs and desires of the West through restricons on grazing, mining access, and energy development. Meanwhile, wildres in mismanaged federal forests level our landscapes and communies. - Maloy, Rep. C., & Greene, K. (2025, February 14). The West deserves a say in public lands - washington examiner. Washington Examiner - Polical News and Conservave Analysis About Congress, the President, and the Federal Government. hps://www.washingtonexaminer.com/restoring-america/faith-freedom-self-reliance/3321047/west-deserves-a-say-public-lands/#google_vignee Manufacturing output dips, driven by autos and parts: In January, manufacturing producon slipped 0.1%, held down by a 5.2% drop in the motor vehicles and parts index. With the dramac decrease in January, motor vehicles and parts output was down 5.9% over the year.Why it maers: Excluding autos, manufacturing output inched up in January, with a second consecuve boost to aerospace and miscellaneous transportaon equipment helping to oset some of that weakness. - excerpted from excerpted from “NAM-Weekly Economic Report - February 18, 2025”| NAM. Naonal Associaon of Manufacturers.: n. pag.Trump hands o NEPA to agencies - The Trump White House scrapped decades worth of rules Thursday for how to conduct reviews under the Naonal Environmental Policy Act. In its place, the administraon oered up voluntary guidance that some worry could cut out public

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14comment and sow confusion as agencies — tasked with overseeing everything from bridges to baery plants — chart their own paths. The Council on Environmental Quality unveiled an interim nal rule that rescinds almost 50 years worth of rules, a move that falls in line with Trump’s “Unleashing American Energy” execuve order, which revoked the 1977 order that originally authorized the CEQ to churn out NEPA rules. The rule is slated to take eect immediately upon being published in the Federal Register without public comment. CEQ also unveiled voluntary guidance for hundreds of agencies to follow with the goal of expeding and simplifying perming. Overall, the document, signed by CEQ chief of sta Katherine Scarle, shis responsibility from CEQ’s overarching rules to agencies’ individual procedures, which must now be updated. (Subscripon Required) - Northey, H. (2025, February 25). E&E News: Trump hands o NEPA to agencies. subscriber.policopro.com. hps://subscriber.policopro.com/arcle/eenews/2025/02/20/trump-hands-o-nepa-to-agencies-00205192MovatePay It Forward by Phil VarleyRunning, managing, and growing a business is tough. The stress, the decisions, and the constant pressure never stop. Business is erce these days, and it is easy to get caught up in the grind.Somemes we forget that we are not just business owners or decision-makers. We are people too. It is easy to focus so much on challenges that we lose sight of the bigger picture.Yesterday was one of those days.Before heading into a morning full of meengs, I stopped at a local coee shop. The barista smiled and said, "You’re number 16 on paying it forward." I was not expecng it. My mind was elsewhere, running through the day ahead. That small act of kindness pulled me back into the moment. I smiled, paid it forward, and walked out feeling a lile lighter. The day was sll going to be tough, but for a moment, it did not feel as heavy.When I got to the oce, and late for my rst meeng, I was met with a leaking sink and water everywhere. Exactly what I needed this morning, I thought. The water leaked everywhere, but we quickly realized it was an easy x. Sll, the rst few people we called were not interested in taking on such a minor repair. Seriously?Finally, a contractor showed up with his apprence, took one look, and had it xed in minutes. I braced myself for a bill, but he simply smiled and said, "Don’t worry about it; it was nothing."I insisted on paying, but instead of taking easy money for a quick job, he said, "If you really want to do something, buy him a coee & breakfast." He nodded toward his apprence. "We had an early morning, and he didn’t get a chance to eat anything."That moment stuck with me. He had the chance to take easy money and walk away, but instead, he chose to pass kindness forward. He saw an opportunity to look out for his apprence.Fast-forward to this morning. I opened my computer to nd an email from a new pallet company. One of our customers had referred them to us.He told them, "If you want to grow, you really need Pallet Connect."He did not have to share our details. He did not have to go out of his way. But he chose to help this pallet company by poinng them in the right direcon.At that moment, I realized how surprised I was by the past 24 hours. And I made a decision.I don’t want to be surprised by kindness. I want to expect it. I want to bring kindness everywhere I go.Even in business, where things are fast, compeve, and demanding, we should not forget to be kind. A small gesture. A simple favor. A recommendaon. It all adds up!! - Varley, P. (2025, February 5). Phil Varley on linkedin: Running, managing, and growing a business is tough. the stress, the...: 16 comments. Phil Varley on LinkedIn: Running, managing, and growing a business is tough. The stress, the... | 16 comments. hps://www.linkedin.com/posts/phil-varley-15728717a_running-managing-and-growing-a-business-acvity-7293017872082092032-MF0Q?utm_source=share&utm_medium=member_desktop&rcm=ACoAAADXrvYB-Pt337MMr7w8i_FFVO-KgujSwoY .