Steven Milauskas' presentation from the "Shifting Seasons: Great Lakes Forest, Industry, Products, and Resources Summit." Title: "Trends related to wood utilization and forestry products in the fields of outreach, interactive training, and technical assistance."

1. USDA FOREST SERVICE State and Private Forestry
Shifting Seasons
College of Menominee Nation
June 7, 2012
Steve Milauskas, Director

2. USDA FOREST SERVICE State and Private Forestry
WERC States - Eastern Hardwoods
162 Million
Acres are
in the
Eastern
Hardwood
Forest
Type
93% total Eastern forest = private + other public
83% total Eastern forest = private only

3. USDA FOREST SERVICE State and Private Forestry
Wood Education and Resource Center
Main Office, Training Annex, Shop and Rough Mill

4. USDA FOREST SERVICE State and Private Forestry
WERC’s Mission
 Enhance opportunities for sustained forest
products production in the eastern hardwood
forest region of the United States, by
fostering interaction and information
exchange with the forest products industry

5. USDA FOREST SERVICE State and Private Forestry
WERC’s Primary Goals
 Improve knowledge, skills, and capacity of workforce
and management
 Increase communication, cooperation, and
collaborative problem solving
 Improve efficiency in manufacturing and utilization
 Promote sustainable use of woody biomass for
energy and products
 Promote local and regional wood products business
and employment by leasing gov. owned facilities &
equipment.

6. USDA FOREST SERVICE State and Private Forestry
WERC’s Mission & Goals
Audience:
 Primary Hardwood Manufacturing Industry
(sawmills and related businesses)
 Secondary Hardwood Manufacturing Industry
(furniture, kitchen cabinets, flooring, pallets, moulding, architectural
woodworking, etc.)
 Entrepreneurs, Small wood businesses, Woody biomass
businesses, Arborists

7. USDA FOREST SERVICE State and Private Forestry
WERC Cluster
Public / Private
Partnerships
Facilities –
offices, training, Work force - labor
manufacturing
WERC
Forest Resources Infrastructure
Training Research
Technology
Investment Capital
Transfer

8. USDA FOREST SERVICE State and Private Forestry
WERC Promotes:
 Tech transfer that is:
practical, applied, creative and useful
 Shorter-term projects with immediate
industry impacts
 Innovation & problem solving
 Regional economic development

9. USDA FOREST SERVICE State and Private Forestry
WERC Capacity
 Training &
manufacturing
facilities
 Technical
assistance
 Grants
opportunity
 Current & past
biomass projects
 Dedicated staff

10. USDA FOREST SERVICE State and Private Forestry
WERC’s Competitive Grant Program
 One key to implementing mission and goals
 Funded and partnered on a wide array of projects
 WERC has funded 185 projects in 26 states since
2005 ($11.5 million), not including biomass
conversion feasibility studies.
 Grants Budget – approx. $1 million last five years
 Overall WERC budget down 65% since FY2008

11. WERC FY 2011 Grant Awards
Project Org. State Award Direction
1 Reinventing Hardwood Markets NCSU NC 78,149 WERC
2 Educational Outreach – Business skills NCSU NC 28,975 WERC
3 Vacuum Ash Treatments for Pests VA Tech. VA 50,993 WERC
4 Hardwood Processing Efficiency WVU WV 69,968 WERC
5 Thermowood Forum UMN MN 10,140 WERC
6 Black Ash Basket Marketing ME Indian Alliance ME 70,000 WERC
7 Multi-State Boiler Assessment SE MI RC&D MI 70,000 WO
8 Renewable Heating – Job Corps Glacierland RC&D WI 70,000 WO
9 Wood Fired Heating & Cooling DC Council Of Gov. DC 350,000 WO
10 Wood Systems-User Group Needs No. Country RC&D NH 41,900 WO
11 Biofuels Workshop NCSU NC 23,435 WO/WERC
12 Green Product Innovations WVU WV 62,475 WO/WERC
13 PA 2011 TPO Survey PA BOF PA 91,425 WO/CARP
14 Mechanized Biomass Harvesters MO Forest Fndn. MO 35,800 WO/WERC
15 Sustainable Energy-Bldg. Profess. BTEC DC 70,064 WO/WERC
16 Community Biomass Assmt. Tools NY Farm Viability I. NY 39,892 WO/WERC

12. USDA FOREST SERVICE State and Private Forestry
Funded WERC Projects
 Log & lumber scanning
 Use of underutilized species
 Plastic/wood composites
 Lean Manufacturing research & training
 Marketing handbooks & training
 Log bucking training
 China Import / export conference

13. USDA FOREST SERVICE State and Private Forestry
Funded WERC Project Examples
Utilization of ash infested with emerald ash
borer

14. USDA FOREST SERVICE State and Private Forestry
Emerald Ash Borer Invasion

15. USDA FOREST SERVICE State and Private Forestry
Firewood sanitation issues – reducing the threat
of spreading invasive species
 Heat Sterilization of Ash
Firewood for Thermal
Eradication of EAB
 Heat Treatment of
Firewood – Meeting
Phytosanitary
Requirements
 http://spfnic.fs.fed.us/w
erc/finalrpts/07-DG-
114.pdf

16. USDA FOREST SERVICE State and Private Forestry
Funded WERC Projects
Wood Manufacturing Skill
Standards, Evaluations, & Credentials
Madison Area
 Industry-approved standards for the Tech. College
woodworking profession Monona Grove
 Skill standards developed by Woodwork Career H.S.
Madison West
Alliance as a means to support the woodworking H.S.
industry in preparing productive workers Monroe H.S.
 Many partners and volunteers involved to bring DeLeers
this effort to reality via Woodwork Career Millwork
Wisconsin
Alliance of North America Built
(http://woodworkcareer.org) Burger Boat
 Architectural Woodwork Institute – FS grantee

17. USDA FOREST SERVICE State and Private Forestry
4. Funded WERC Projects

18. USDA FOREST SERVICE State and Private Forestry

19. USDA FOREST SERVICE State and Private Forestry

20. USDA FOREST SERVICE State and Private Forestry
Wood Energy Technical Assistance
 Preliminary feasibility assessments
 Schools, hospitals, commercial buildings, industrial
buildings
Sullivan County School District
Elementary and High School Complex
March 9, 2010

21. USDA FOREST SERVICE State and Private Forestry
Funded WERC Projects
 Establishing Long-Term Fuel Supply
Agreements for Wood Energy Facilities
- Empire State Forest Products Assoc.
- insight on establishing long-term supply
agreements for wood energy facilities.
- Two business models identified:
* Diesel Fuel Adjustment
* Financing of Biomass Prod. Equip.
http://spfnic.fs.fed.us/werc/finalrpts/07-DG-105.pdf

22. USDA FOREST SERVICE State and Private Forestry
Funded WERC Projects
 Using Industrial Clusters to Build an Urban
Wood Utilization Program: A Twin City Case
Study
- St. Paul/Minneapolis, MN
- Summarize wood utilization activities
http://www.dovetailinc.org/reportsview/2010/sustaina
ble-forestry/pdr-steve-bratkovichp/urban-wood-
utilization-and-industrial-cl

23. USDA FOREST SERVICE State and Private Forestry
District Energy – St. Paul/Minneapolis
 District heating – 185
buildings & 300 homes
 District cooling – 95
buildings
 90 megawatts – clean
wood chips

24. USDA FOREST SERVICE State and Private Forestry
Funded WERC Projects
 Indiana Forest
Products
Community
- On-line industry
directory
-
http://www.indianaf
orestproducts.com/

25. USDA FOREST SERVICE State and Private Forestry
Webinars
 Ash urban wood utilization
 Energy cost impacts on hardwood manufacturing
 Mineral stain in red oak
 Community wood reclaimation
 Vacuum steam treatment of wood pallets
 Life cycle inventory tools
 Mechanized processing of urban trees
 Making wood pallets
 Carbon storage in wood products
 Computer technologies in furniture making
 Biomass utilization seminars - many in the last year

26. USDA FOREST SERVICE State and Private Forestry
Other Items of Interest
 Urban Forest Products Alliance Linked-
in Group
 Quarterly webcasts on ash-urban wood
utilization (July 10, 2012)
 WERC Update Newsletter
 Manufacturing and Marketing Lumber
and Related Products Using Thin-Kerf
Sawmills by Dan Cassens, Purdue University

27. USDA FOREST SERVICE State and Private Forestry

28. USDA FOREST SERVICE State and Private Forestry
Funded WERC Projects
 Project information location- WERC web site:
http://spfnic.fs.fed.us/werc/p_search.cfm

29. USDA FOREST SERVICE State and Private Forestry
Where are we?

30. USDA FOREST SERVICE State and Private Forestry
Reasons for Change

31. 2002
ALL EMPLOYEES, THOUSANDS
USDA FOREST SERVICE State and Private Forestry
US DOL BLS EMPLOYMENT
Industry: Wood products
NAICS Code: 321
Productivity
The wood product manufacturing subsector
consists of these industry groups:
Sawmills and Wood Preservation: NAICS 3211
Veneer, Plywood, and Engineered Wood Product
Manufacturing: NAICS 3212
Other Wood Product Manufacturing: NAICS 3219

32. NAICS Code: 337
Data Type: ALL EMPLOYEES, THOUSANDS
USDA FOREST SERVICE State and Private Forestry
US DOL BLS EMPLOYMENT
Industry: Furniture and related products
NAICS Code: 337
The furniture and related product manufacturing
subsector consists of these industry groups:
Household and Institutional Furniture and Kitchen
Cabinet Manufacturing: NAICS 3371
Office Furniture (including Fixtures)
Manufacturing: NAICS 3372
Other Furniture Related Product Manufacturing:
NAICS 3379

33. USDA FOREST SERVICE State and Private Forestry
US DOL BLS EMPLOYMENT
Industry: Paper and paper products
NAICS Code: 322
Productivity
Pulp, Paper, and Paperboard Mills: NAICS 3221
Converted Paper Product Manufacturing: NAICS
3222

34. USDA FOREST SERVICE State and Private Forestry
US DOL BLS EMPLOYMENT
Industry: Forestry & Logging
NAICS Code: 113

35. USDA FOREST SERVICE State and Private Forestry
Re-shoring, Expansion, Start-up
Furniture Expos featuring “Made in USA.” (Las Vegas, Highpoint,
Lancaster, PA)
Lincolnton Furniture, NC. 55 employees to 180.
Stanley Furniture, NC. $4 M upgrade.
Vaughan Basset, VA. $8M purchase & upgrade, 630 employees.
Kimball Hospitality, IN. new mfc.
La-Z-Boy added 3 new US production lines. To replace off-shore.
Ashley furniture, NC. New $80M facility to employ 1,100.
1st quarter exports of hardwood lumber up 8.6% over 2011.
Hancock Lumber, ME. 25% production to export, no layoffs at 3
mills.

36. USDA FOREST SERVICE State and Private Forestry
Implications
 Wood industry jobs recovery?
 Re-shoring?
 Productivity trend implications?
Employment vs. competitiveness
 Sustainable forest management-wood industry-
cultural & socio economic trends
 Skilled labor availability? Less participation in
workforce with high unemployment.
 Federal & state budgets - intense funds competition
 Training & education focus is shifting

37. USDA FOREST SERVICE State and Private Forestry
Training & Education
Challenges:
• Industry & organizations must see value
• Attracting people to on-site training
• Funding expenses
• Relevance in a perceived shrinking industry
Opportunities:
• Increased emphasis on webinars
• Training in conjunction with other events
• Technology transfer through web-sites
• Education through partnerships

38. USDA FOREST SERVICE State and Private Forestry
Training & Education
Training is now much more than teaching
a worker how to operate a machine

39. USDA FOREST SERVICE State and Private Forestry
Training & Education
 Mass customization
 Lean manufacturing & productivity
 Community support – branding, certification, local jobs,
sustainable forestry
 Value-added-products and marketing
 Lifetime skills development – worker through mgt.
 Strategic alliances – industry, gov’t, communities, NGO’s
 Creativity & innovation = the future
 Education + raw material + creativity + people + skills
+ capital + government policies + ???? = potential
success.

40. USDA FOREST SERVICE State and Private Forestry
WERC Roles– including biomass
 Technical assistance – wood processing & biomass
 Facilitator roles
 Information clearinghouse / web-site
 Leadership on cutting edge and current issues in
wood utilization & marketing –
invasives, urban, green, jobs, etc.
 Industry re-shoring – new opportunities & workforce
needs – woodworking Career Alliance
 Hardwood check-off program
 Local/regional economic development
 Integrated program efforts across landscapes .

41. USDA FOREST SERVICE State and Private Forestry
WERC - Looking Ahead
 Continue 35 state hardwood industry focus
 Focus on hardwood industry sustainability
 Enhanced woody biomass utilization role –Wood
Energy Assistance Program
 Economic dev. efforts (local / regional / 35 states)
 Workshops & webinars – on site & other locations
 Partnerships – internal & external
 Competitive Grants Program?

42. USDA FOREST SERVICE State and Private Forestry
For more information contact:
Steve Milauskas, Director
E-mail: smilauskas@fs.fed.us
http://www.na.fs.fed.us/werc/