Next week’s National Hardwood Lumber Association (NHLA) meeting offers buyers and sellers of North American hardwoods a chance to meet and also see new machinery, logistics providers, insurance, and software offerings that might help them run more efficiently and profitably. Without question, this meeting comes at a time when mills are struggling to find profitability amid lackluster markets. The NHLA has evolved to be an organization that works far past being the traditional arbiter of the grading rules and training of inspectors.

The NHLA was founded 127 years ago in Chicago with the goal of creating uniform standards for the grading and trading of hardwood lumber. Their rules also include a sales code by which transactions are governed.

While nearly all those involved in buying or selling lumber are familiar with NHLA grades, many do not realize that the organization is a tireless advocate for the hardwood industry, promoting public policy issues that benefit those involved in hardwoods. NHLA now also offers educational opportunities covering mill efficiency and industry promotion, which is a large part of its charter.

It will be interesting to see where the NHLA heads in the next 100 years. With machine grading via Artificial Intelligence (AI) on the horizon for many producers, what role might the organization play in possibly facilitating the move with standardized machine code to ease this transition? The same code could also be used in log scanning, like Cascade does at the Chehalis mill, where a system can grade the boards from within the log. In the future, a log scanning system might optimize a cut based on near-real-time current sales prices and sold orders. AI will likely come to our industry faster than many realize, and with its growth will come near instant ability to analyze large data sets and make adjustments. Imagine kilns that can run with even greater autonomy. AI could also affect sales by more closely matching buyers and sellers through deep analysis of product lines and customs data. Logistics operators using AI soon will be able to more closely match available trucks with loads needing to move. This will likely foster a lot of mergers in the trucking business with those companies that are effectively using these new tools, seeing significant growth. NHLA is currently leading an effort to test hardwood in cross-laminated timber as a new avenue for low-grade products, helping grow low-grade uses beyond pallets, board road, and railroad ties.

Will NHLA’s mission grow to include helping membership adapt to these changes? NHLA’s mission will probably include an even greater focus on promotion, consumer education, and telling the positive environmental story of hardwood lumber. Most importantly, their role, in conjunction with others, will likely continue to expand, shaping public policy, as each future Administration’s priorities differ on timber use, regulations, tariffs, and foreign trade policy. Each of these are important issues that need to be addressed, yet as the hardwood industry shrinks due to substitute products and challenging markets, the age-old question of how to fund these efforts overhangs the industry.

Next week’s convention offers an important venue for networking opportunities, where we will get to see many of our customers. For us at Cascade, this convention lets us hear face-to-face the challenges our customers face and offer solutions where we can. We look forward to seeing all those attending. With new products to offer from our planer/rip line, plus even more specialized grades and sorts, Cascade is ready to face the next 100 years alongside NHLA. Come see us in San Antonio in booth 104/106.