Memphis, TN–The first-ever National Hardwood Lumber Association (NHLA) On Demand virtual conference was held recently and deemed a huge success by organizers with more than 500 registered attendees.
In addition to a virtual exhibition hall, which remains available to view online, guest speakers offered insight on a variety of topics.
Keynote speaker at NHLA On Demand was Dan North, chief economist for North America at Euler Hermes. North stated that even before COVID-19, the U.S. economy was fragile due to various reasons thus the required response to COVID devastated the economy. He explained it will take multiple years for jobs to recover and due to COVID and the shutdown, the country experienced massive drops in goods consumption and disposable income dried up prior to the stimulus package. Problems on the horizon include: many people will have trouble paying their rent and mortgage and he foresees challenges in regard to hunger as more families and individuals face food insecurity. He anticipates personal financial delinquencies and bankruptcies to rise as well.
North said, however, that while it will take up to three years for jobs to recover and 1-1/2 years at least for the GDP to recover, “it’s not hopeless.” The housing market, the treasury yield curve, leading economic indicators, business confidence, and retail sales are pointing toward stabilization.
What’s the biggest risk our industry and nation now face? North said COVID’s resurgence is the biggest risk. He noted that the coronavirus has already resulted in permanently destroying many jobs and businesses, and another full-scale shutdown will do more damage. North supports a targeted shutdown of certain demographics/age groups to combat COVID this fall/winter as needed.
National Hardwood Magazine plans to expound on the economic takeaway regarding COVID in our end-of-year December issue.
Additionally, Lorna Christie, CEO of NHLA, presented: “Fighting Faux Wood Claims – It’s Time to Fight Back!” Not only did Christie detail the mission of the Real American Hardwood Promotion Coalition, a relatively new organization with the mission of promoting American Hardwoods, but she also addressed claims in false advertising that are being made by faux wood producers. These claims can negatively impact consumer perception of the lumber industry’s products and Hardwood sales. Christie also explained the responsibilities of the Federal Trade Commission in combatting fraudulent advertising, particularly in the area of sustainability and other environmental “green claims.”
Additionally, NHLA’s chief lumber inspector, Dana Spessert, provided a presentation entitled “Are You Operating Effectively? – 4 Metrics to Track Operational Efficiency.” Spessert focused his comments on four key areas: downtime, capacity utilization, inventory rotation and yield.
Among his points regarding mitigating unexpected downtime, Spessert urged monitoring equipment regularly with preventative and predictive maintenance and consider utilizing a computerized maintenance management system to schedule maintenance activities in advance. Regarding capacity utilization, Spessert said to ask if all machines are operating at 100 percent capacity and could a machine be producing more product than it is currently? Among his suggestions: you should verify that you are achieving machine manufacturers recommended feed rate, avoid falling behind by keeping detailed service records and update your existing machinery as needed.
Other presenters at NHLA On Demand included Cary Moon, Policy and PAC Manager for the Hardwood Federation, who briefed attendees on the HF’s lobbying efforts in 2020 thus far and underscored the organization’s commitment going forward to continue to bring to Washington, DC the issues and challenges faced by this industry. HF lobbyist Pat Rita was also on-hand to provide comments during the presentation.
Bob Graham, from Breakthrough Solutions, spoke about guiding your sales team during and after a crisis. Graham shared innovative strategies that the best companies use to drive sales, especially during and after a crisis. He explained common overlooked and underappreciated considerations for making a sale in tough conditions, as well as other tips for thriving during challenging times.
Michael Snow, executive director of the American Hardwood Export Council, wrapped up the speakers’ segments for On Demand. His address focused on COVID-19, tariffs, trade wars and U.S. Hardwood exports in this age of uncertainty. His address emphasized the global impact of COVID-19 as well as the ongoing trade war with China. Snow also targeted non-traditional regions as potential Hardwood export markets.
About NHLA, to learn more about their programs and plans for 2021, visit www.nhla.com. On this website, you can also view the presentations mentioned in this article.
