CPA, APA Leaders Size Up Situation

CPA, APA Leaders Size Up Situation

Leadership from two of the major primary panel production associations provided 2022 year-end reports, while also looking ahead to 2023 and both pointed to economic issues moving forward.

“This year (2022) was more ‘back to normal,’ as the COVID pandemic was mostly in the rearview mirror. There were still a few ‘hangovers,’ with the supply chain still being constrained and a shortage of workers limiting productivity,” commented Andy O’Hare, president of Composite Panel Assn. (CPA).

O’Hare added, “The new boogieman is sticky inflation and its cousin high interest rates. We saw the effects of the latter two elements in the fourth quarter of 2022, with declines in composite wood panel shipments. The commercial and residential housing markets have been significantly impacted by the increased interest rates, which will negatively impact construction activity into at least the first half of 2023. We can be hopeful that inflation will wane progressively over the year and be back in the 3-3.5% range by Q4 2023, with an accompanying reduction in interest rates.”

Formaldehyde and climate change policy developments dominated in 2022, O’Hare said, with most of the formaldehyde action occurring in Canada. Health Canada finalized its Formaldehyde Emissions from Composite Wood Products regulations in 2021 and CPA worked with the ministry throughout 2022 to clarify several details in anticipation of the rule going into force in January 2023.

In the U.S., EPA rolled out an updated version of the Integrated Risk Information System (IRIS) for formaldehyde, a hazard and exposure assessment for the chemical, which will inform the risk assessment under the Toxic Substances Control Act (TSCA). The IRIS assessment is presently under review by the National Academy of Sciences.

Meanwhile, the U.S. Congress passed a climate change bill in August, titled “The Inflation Reduction Act,” which is heavily focused on promoting carbon free electricity generation and incentives for electric vehicles. There are also provisions encouraging the federal government to procure “low carbon” building materials, which could enhance consumption of products made with composite panels. Potential benefits for CPA members will be clearer in 2023 when these programs are implemented.

With climate change being a focus of the national and international policy dialogue, Gary Heroux, CPA technical director, initiated a study late 2022 to complete the environmental lifecycle work begun several years ago. This work in 2023 will examine the “plant gate to grave” portion of the composite panel lifecycle. This will allow CPA to account for the fate of the carbon stored in composite panels after the products in which they are contained have reached the end of their life.

Mark Tibbetts, President of APA—The Engineered Wood Assn., described 2022 as a year of transitions. “Thankfully, we put much of the disruption of the pandemic behind us. We held our first Annual Meeting since 2019. We also returned to routine mill audits and in-person meetings within our Technical Services and Field Services divisions.”

One lingering impact, Tibbetts noted, is inflation—with the response of tightening monetary policy being felt most acutely in the housing market. On a year-over-year basis, new housing starts dropped 16.4% since November 2021, with single-family construction declining 32.1% over the past 12 months.

“I believe we are in store for a shallow recession and don’t buy into the Fed taking its foot off the break,” Tibbetts said.

Tibbetts noted several positives. APA’s proposal to allow OSB sheathing in floor construction in high-velocity hurricane zones in Florida, mainly Miami-Dade/Broward counties, was recommended to the Florida Building Commission for approval as part of the 2023 Florida Building Code by the Florida Code Committee.

APA’s Quality Services Div. spent much of the year conducting a comprehensive review of APA’s quality program and APA is aligning processes across regions, improving documentation and quality of the work product.

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Tribal Focus On Several Acres Of Public Wetlands Dooms Huber OSB Project In Minnesota

Tribal Focus On Several Acres Of Public Wetlands Dooms Huber OSB Project In Minnesota

Tribal Focus On Several Acres Of Public Wetlands Dooms Huber OSB Project In Minnesota

“Once again, the state of Minnesota is giving the finger to good companies trying to create jobs here. Huber has been a phenomenal community partner everywhere they have operated, with a sterling environmental record. Huber was bringing hope to a community that needed some good news. It is disappointing the Leech Lake Band—and now the court of appeals—would stand in the way of that.”

That’s how Minnesota State Senator Justin Eichorn (R-Grand Rapids) responded to a Minnesota Court of Appeals decision in early February that would have caused further delay in the construction of a $440 million OSB plant by Huber Engineered Woods in Cohasset, but instead immediately prompted Huber to pull out of the project and begin looking to another state for the development of its sixth OSB plant.

HEW President Brian Carlson states, “Due to delays that jeopardize our ability to meet product demand deadlines, we will pursue development of our sixth mill in another state.” Carlson says the company appreciates the strong support provided by a range of Minnesota constituents, including “state, county, city and local officials, government and private sector community development groups, and the residents of Itasca County, and that the Huber team looks forward to maintaining a constructive relationship in the state.”

HEW announced in June 2021 its plan to build the plant on nearly 200 acres adjacent Minnesota Power’s Boswell Energy Center and create 150 direct jobs with additional job and growth opportunities for area logging and trucking operations.

Huber OSB packaging line in Spring City, Tenn.

But in a ruling on an appeal from the Leech Lake Band of Ojibwe (its reservation is a mile west of the proposed plant) and the Minnesota Center for Environmental Advocacy, the court of appeals said the Cohasset city planners’ earlier decision to only require an Environmental Assessment Worksheet (EAW) of the project, and not require a more detailed Environmental Impact Statement (EIS) needed to be re-addressed by the city because of issues involving a few acres of two “public waters wetlands” that state law would require an EIS for.

The state of Minnesota requires a “responsible governmental unit,” such as a city planning body, to determine if a project requires an EAW or EIS, or both.

The appeal from Leech Lake Band of Ojibwe and Minnesota Center for Environmental Advocacy also asked the court to weigh the environmental effects potentially caused by air emissions from the new OSB plant and from the volume of timber harvesting that the plant would require. The city had determined there would be no significant environmental effects from either, given the permitting and planning requirements the project would require going in. The appeals court ruled in favor of the city as to “no significant environmental effects” and against the Band and the Minnesota environmental group.

But the court took to task the city’s determination that an EAW was enough for the project with regard to public wetlands. Huber initially submitted an EAW and then, at the city’s request—following additional consultation and review from local citizens, state agencies, and other interested parties, and providing more information about the health of Minnesota’s forests and their ability to sustainably supply the facility, and providing more detail on the project’s carbon footprint, especially regarding the effects of generating much of the facility’s energy needs through wood fuels, and the carbon sequestration effects of the finished wood products—re-submitted the EAW, which the city accepted while deciding an EIS wasn’t necessary.

The Leech Lake Band of Ojibwe appealed, and the appeals court agreed, that the facility “falls into categories” for which an EIS is mandatory under Minnesota law, specifically as to the elimination of public waters wetland.

The city had determined that the project would not eliminate public water wetlands. But the court focused on two small public waters wetlands, which the court said are “accorded greater protection under state law” and should require an EIS beyond an EAW.

The court noted that the state’s definition of public waters wetlands is 10 or more acres in size in unincorporated areas and at least two and a half or more acres in incorporated areas. Huber’s EAW explained that its project would involve filling portions of two public waters wetlands, both in incorporated areas: 8.73 of 14.27 acres in one and 1.65 of 5.67 in another, and that while there would be a reduction in the size of each, it wouldn’t “eliminate” the public waters in question and only reduce the size, and thus not require an EIS. The city agreed that the partially filled public water wetlands would not fall below the 2.5 acre threshold after the partial filling.

The appeals court, however, said the state law did not explain what it means to “eliminate” a public waters wetland, and took the liberty to base its ruling that “eliminate” can also mean to “modify” the public waters wetlands, and ruled that because the project would alter the characteristics of the public wetlands the city should apply this legal standard and re-assess whether an EIS is necessary.

The Leech Lake Band also said the public waters wetlands fillings would have significant environmental effects that should require an EIS and that the city failed to consider these. The Band said the wetlands Huber planned to fill are a filter for water quality that nearby wild-rice beds depend upon, and removing the wetland filters would be harmful to the water quality that the rice requires. The court agreed, noting the city did not investigate or explain how wetlands replacement (as the project would entail) or stormwater controls would protect the wild-rice bed and other resources downstream.

The court said the city should reconsider given these stipulations and then issue a revised decision on the need for an EIS. Huber’s withdrawal from the project apparently now renders such an exercise as unnecessary.

“The court decision issued today is a major victory for the Leech Lake Band of Ojibwe and serves as a powerful reminder of the importance of respecting the sovereignty and treaty rights of indigenous nations,” comments Band Chairman Faron Jackson, Sr. “The proposed OSB mill project posed a clear threat to our sacred resources, including wild rice and wildlife, while bypassing an important step in the environmental review process.”

Upon the announcement of Huber’s departure, Tamara Lowney, president of Itasca Economic Development Corp., told the Duluth News Tribune, “Today really feels like a funeral in my office, saying goodbye to the biggest opportunity that our region and our northern part of the state has seen in decades.”

The project would have replaced lost jobs and tax base as the adjacent Boswell coal-fired energy plant shuts down its coal burning units and possibly reconfigures to renewable energy sources.

The Cohasset OSB mill would have been Huber’s sixth, following facilities in Maine, Georgia, Virginia, Tennessee and Oklahoma. Had the timeline not been delayed from the outset, Huber’s construction of the plant would have occurred during the current OSB market softening, possibly putting it in prime position upon startup to take advantage of the next market strengthening.

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Brett Helped To Pave Way For Panel World

Brett Helped To Pave Way For Panel World

Brett Helped To Pave Way For Panel World

Alan Douglas Brett, who in the latter half of his career led the international advertising sales growth of Panel World magazine, and whose vigorous life included professional motor cycle speedway racing as a young man and a long stint as sales manager with the Daily Telegraph in London, died January 16 following health issues at his villa at Aldea de las Cuevas, Benidoleig, Alicante, Spain. He was 86.

Brett sold magazine advertising space for Montgomery, Alabama, U.S.-based Hatton-Brown Publishers, Inc. and affiliate Panel World from 1984 to 2006 and also sold for other trade publications. He worked from his office and home residence in Box Hill, Surrey, just southwest of London, but in 1993 he and his wife, Rita, purchased their dream home in Spain, where he continued to work until his retirement, when he turned over his international sales role for Hatton-Brown and his overall business to his son, Murray Brett.

“Alan was the most detailed person I had ever met—after years of dealing with sales people who were the complete opposite,” recalls David Ramsey, publisher of Hatton-Brown Publishers, Inc. who hired Brett. “He was a happy man and lived his life as such. He came from a tough childhood but lived his life his way. I shall miss him.”

Hatton-Brown and Panel World Editor-in-Chief Rich Donnell remembers, “In late 1988 I met Alan in London and we took the ferry across the North Sea into Belgium and proceeded to drive his car throughout Germany for seven days calling on numerous potential equipment advertisers. Alan became a wonderful, enlightening friend, with tremendous humor, and I witnessed what a fully informed and persuasive sales representative he was.

“The next year we met at what was my first Ligna show, long before Panel World had its own booth there, and we set up shop on one of the tables of the Hall 2 restaurant and walked the aisles for a week. I’ll always have the vision of Alan toting along his packed business briefcase while smoking a cigar. The exhibitors knew we were coming. Alan became close friends for life with many of the marketing people of the exhibitor companies.”

Brett was born in Kingston Hospital on December 23, 1936. His last name was Kingham at birth but he never knew his father, and his mother Kathleen remarried to Earnest Brett and Alan adopted the Brett name. Brett was raised by his mother and in his late teen years by an aunt and cousins in New Malden South London. A sister, Jill, was born after the war.

Brett was a “war baby” and due to the heavy bombing of South London he went to stay with a mining family in Nottingham, but experienced bombing in the industrial Midland as well. The war experience contributed to Brett’s lifelong passion as an amateur historian of World War II, complemented by his lifelong power of memory.

Brett became obsessed with Motorcycle Speedway Racing, as tracks were springing up everywhere due to the wasteland available after the war. In his teen years Brett raced cycle speedway and attended high school at Wimbledon Technical College.

In 1954 he started to race competitively as a professional motor cycle speedway rider and in 1955 he represented Eastbourne and Wimbledon before big crowds throughout Europe. He mixed with many of his childhood heroes and champions—Ronnie Moore, Barry Briggs, Ivan Mauger, Ove Fundin and Peter Cravan.

But in 1956 Brett’s highly promising speedway career was cut short due to a terrible leg injury. He suffered it during a practice session when the bike in front of him crashed, sending Brett from behind over the top of his bike before a third rider rode over Brett’s leg. However, while in the hospital Brett met Rita Hammerton, who was a professional dancer working at The Windmill Theatre in Soho and they were ultimately married in 1960.

His dream of racing motorcycles shattered, Brett entered the newspaper industry and sons Neil and Murray were born. Brett’s career progressed to Classified Sales Manager at the Daily Telegraph were he would stay for 20 years, meanwhile moving the family to their ideal home in Box Hill, Surrey with a huge garden backing on to heathland.

Brett left the Daily Telegraph and set up his own company, selling advertising for various trade publications, eventually landing with Hatton-Brown Publishers. Brett was a pioneer of “remote working,” running his British business from Spain after moving there with Rita.

Brett enjoyed his life immensely in Spain, especially helping out the elderly and was a big supporter of the local Careline Theatre, holding the position of Front of House. Brett’s wife Rita died in 2021 and Brett chose to continue his life in their villa until his peaceful passing, surrounded with love by his family and caregivers. He is survived by his sons and their spouses, Neil (Simone) and Murray (Liz), five granddaughters, and his sister, Jill.

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The monthly Panel World Industry Newsletter reaches over 3,000 who represent primary panel production operations.

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U.S. Housing Starts Dip Slightly In November

U.S. Housing Starts Dip Slightly In November

U.S. Housing Starts Dip Slightly In November

U.S. housing starts (combined single-family and multi-family) showed a slight decline in November, coming in at a seasonally adjusted rate of 1.427 million, 0.5% below October, and 16.4% below starts in November 2021, according to the U.S. Census Bureau and U.S. Dept. of Housing and Urban Development monthly new residential construction report.

Single-family starts were 828,000, down 4.1% compared to October, and recording the third consecutive monthly decline; but multi-family came in at 584,000, up 4.8% over October.

Building permits declined 11.2% to 1.342 million, including a 7.1% drop in single-family to 781,000, and a 17.9% dip in multi-family to 509,000 compared to October.

Miramar Beach, Sandestin, Fla.

Housing completions in November were 1.490 million, an increase of 10.8% over October, including single-family completions at 1.047 million, up 9.5%, and multi-family completions at 430,000, up 16% from October.

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Raute Restructures, Announces Personnel Changes

Raute Restructures, Announces Personnel Changes

To better address its operational and strategic development plans, Raute is changing its organizational structure, which will strengthen Raute’s ability to service customers and streamlines internal operations. The change will also be reflected in the Executive Board and responsibility areas.

As of January 1, Raute will have three business units—Wood Processing, Analyzers, and Services—each with a clear focus and accountability for its respective business operations. The Executive Board will consist of the CEO, three executive vice presidents—one for each business unit—and three functional roles: Chief Commercial Officer, Chief People Officer, and Chief Financial Officer.

Wood Processing unit includes Raute’s core technology offering for veneer, plywood and LVL production. Delivery scope includes separate production equipment, modernizations, as well as full mill-scale projects. Wood processing will be headed by Petri Strengell, who has been with Raute since 1987, and is a member of the Executive Board and has been responsible for supply chain. Strengell acted as Raute’s interim CEO from May 2022 to September 2022.

Analyzers unit serves customers with Raute’s latest measurement technology for sorting veneer, plywood and LVL, and special measurement equipment for sawn timber. Analyzers will be headed by Jani Roivainen, who has been with Raute since 2011 and has been responsible for the Metrix business as a member of the Executive Board since 2019.

Services unit focuses on Raute’s full-service concept ranging from spare parts deliveries to regular maintenance, digital services and equipment upgrades. Services will be headed by Kurt Bossuyt, who joined Raute in 2016. Bossuyt is a member of the Executive Board and has been heading the Basic Services business since 2019.

Chief Commercial Officer (CCO) is a new functional role in the Executive Board. Responsibility of the CCO includes Raute’s market operations, sales & marketing, as well as commercial excellence and development. Jari Myyryläinen is appointed CCO and a member of the Executive Board. Myyryläinen has worked in Raute since 2020 and is has been heading Raute’s EMEA Market Area.

Chief Financial Officer (CFO) is responsible for the finance, ICT, IR, ESG and other business support. Minna Yrjönmäki is continuing in the interim CFO role, which she has been responsible for since May 2022.

Raute’s external financial reporting structure will not change following the new organization structure as all Raute’s operations continue to belong to the wood products’ technology segment.

Mika Saariaho continues as President and CEO.

As of January 1, the company has initiated a search process for a Chief People Officer. In the meantime, Mia Könnilä has been appointed Raute Corp.’s interim Chief People Officer and Member of the Executive Board. Könnilä has been working with Raute since 2021 and is currently heading Raute Finland HR function.

“The new organization structure will take Raute closer to our customers through dedicated business units and new commercial function,” Saariaho says. “Raute will further strengthen its ability to deliver superior service to our customers, including successful project delivery, as well as advanced technology services tailored to customer needs. The new organization will streamline our ways of working and ensure focus on further development of Raute’s core competences. I want to thank warmly the departing Executive Board members.”

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Boise Cascade Announces New SC Distribution Facility

Boise Cascade Announces New SC Distribution Facility

Boise Cascade has announced plans to expand its South Carolina operations with a new facility in Walterboro, with a $9 million investment that will create 30 new jobs. This new facility marks Boise Cascade’s first distribution location and second facility in South Carolina. Boise’s existing South Carolina facility is Chester Plywood, located in Chester.

Jeff Strom, Boise Cascade Co. Building Materials Division Executive Vice President, says, “We are excited to be planning a branch location in Colleton County. This investment demonstrates our commitment to a terrific customer base in a growing market.”

Located in Colleton County, this facility will increase the company’s distribution capacity with direct access to the Palmetto Railways Salkehatchie Subdivision rail line, connecting Boise Cascade to the national freight rail network.

The Coordinating Council for Economic Development approved job development credits related to this project. A $200,000 Rural Infrastructure Fund (RIF) grant was also awarded to Colleton County to assist with the costs of site preparation and infrastructure improvements. South Carolina Secretary of Commerce Harry M. Lightsey III comments, “Congratulations to Boise Cascade Company, as it expands in another South Carolina location. Our state’s rural communities are producing and distributing products from some of the world’s most trusted companies, and we’re excited that the Walterboro community can add Boise Cascade to that roster. We look forward to supporting the company’s continued growth within South Carolina.”

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