Pennsylvania Hardwood Industry Paul Lyskava Pennsylvania Forest Products

Pennsylvania Hardwood Industry Paul Lyskava Pennsylvania Forest Products Association Wayne Bender Pennsylvania Hardwoods Development Council Governor’s Green Ribbon Commission January 7, 2015

PA Wood Products Employment NAICS 2005 2009 2014 Forestry/Logging (113) Wood Products Mfg (321) Paper Manufacturing (322) Furniture and Related Products Mfg (337) 793 28, 666 27, 626 634 20, 579 24, 876 783 20, 769 23, 675 23, 839 17, 511 14, 841 Total 80, 924 63, 600 60, 068

PA Wood Products Employers NAICS Forestry/Logging (113) Wood Products Mfg (321) Paper Manufacturing (322) Furniture and Related Products Mfg (337) Total 2004 2009 2014 290 1, 112 343 231 1, 050 293 215 939 266 918 772 671 2, 663 2, 346 2, 091

© 2015 Hardwood Market 2014 Railway Ties Board Road/Mat Timbers 4. 3% 13. 0% Flooring Pallets 8. 8% Cabinets 42. 6% 4. 6% Millwork 4. 5% Exports 17. 1% Furniture 5. 0% U. S. UTILIZATION OF HARDWOOD LUMBER

U. S. Eastern Hardwood Production (in billion board feet) (PA Production is Generally 10% of Total) Source: Hardwood Review 14 12 10 8 6 4 2 0 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Red Oak and White Oak Pricing Source: Hardwood Review 4/4 1 Common KD Red Oak Pricing 4/4 1 Common KD White Oak Pricing 1300 $1100 900 700 500 / 1 / Final three bars are for January, July and December 2015 166 61 091 Final three bars are for January, July and December 2015 910 // 11 / 1 1500

Cherry and Ash Pricing Source: Hardwood Review 4/4 FAS KD Cherry 3500 3000 2500 $ 2000 1500 1000 4/4 FAS KD Ash 1600 $ 1400 1200 Final three bars are for January, July and December 2015 61 091 // 11 / 1 661 109 / 1 // 1 1000 Final three bars are for January, July and December 2015

PA Wood Sources PA Forest Land Ownership Industry Timber Sources Private Lands PA Company Lands PA Public Lands Out of State Land 66% 11% 9% 14% Lord, 2013

Pennsylvania Hardwoods Development Council Created in 1988 by PA State Legislature Four Mission Objectives Since 1988: 1. Timber Access and Responsible Forest Management 2. Economic Assistance to Primary and Value Added Processors 3. Domestic and International Marketing 4. Public Education about Forestry and Forest Products Industry Additional Objectives Since 2013 (25 th Anniversary Forum) 1. Promote Science Based Environmental Message 2. Workforce Development 3. Minimize Regulation Promotes brand “Pennsylvania Hardwood Stands for Quality Pennsylvania Wood. Mobile

PA Wood. Mobile 1, 482, 647 Visitors 162, 055 Students/Teachers

American Hardwood Forests US hardwood growth and removals (million m 3) US hardwood inventory (billion m 3) •

Pennsylvania Forest Growth: Millions of Board Feet: 1955 -2014 (Standing Saw Timber Only) 104, 794 114, 329 85, 822 72, 819 46, 426 22, 820 26, 269 1955 1965 1978 1989 2002 2010 2014 Today, Pennsylvania has 5 x more forest resource than in 1955!

US Hardwood is Under-Utilized

Source: Global Trade Atlas

Source: Global Trade Atlas & Eurostat

Source: USDA GATS

Ch in Ca a na Un da M ite d exi Ki co ng d Ge om rm an y Br az i Eg l yp t Sp ai n Do J m ap Re an pu bl ic Ita Vi ly et na Sw m So e ut de n h Ko r Po ea rtu ga l In Millions Pennsylvania Export Lumber Markets - 2014 $160 $140 $120 $100 $80 $60 $40 $20 $0 TOTAL PENNSYLVANIA EXPORTS = $454, 692, 029

“Middle Class” Outside the U. S. Expected to Double By 2020 – Approaching 1 Billion Households Worldwide commodity consumption will be impacted Foreign households w/real PPP incomes greater than $20, 000 a year (in millions of households) Middle class in developing countries projected to increase 138% by 2020 vs. just 15% in developed countries in 2009 Developing countries Developed countries (ex US) Source: Global Insight’s Global Consumer Markets data as analyzed by OGA 19

Finding New Markets: Exterior Use -Thermally Modified 2) Structural Uses 1)

Museum of European and Mediterranean Civilisations in Marseille, France Thermally Modified Ash from Pennsylvania

3) Environmentally Green Marketing

Life Cycle Analysis Inventory Data

Derived from PE/AHEC ireport

DNA finger printing of American hardwood n Preliminary discussions with Double Helix, company specialising in DNA timber tracking n Funding sought for a US forest genographic map showing distribution of genetic types for tree populations n New low cost timber DNA testing equipment becoming available to importers, retailers & regulators n Incontrovertible proof of specific US origin and that wood is negligible risk

Mortality before harvesting leads to the release of 160 million tons of CO 2 to the atmosphere, annually in the USA

Questions: Wayne Bender 717 -705 -3930 dbender@pa. gov Paul Lyskava 717 -901 -0420 plyskava@paforestproducts. com Thank you to American Hardwood Export Council, Michael Snow, Executive Director