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INDUSTRY
- May 2000 Feature Article Carving
Out a Future KENTUCKY’S wood industry has come a long way since the days of horse logging and crosscut saws. It has witnessed the clearing of forests for subsistence agriculture, the loss of the American chestnut to blight, and the introduction of the early automobile industry, which utilized the hardwoods of Kentucky in its manufacturing process. Even with the advent of space-age polymers and other materials, the demand for wood continues to be high. Simply put, few materials can rival the properties of wood for versatility, availability, strength and beauty. Kentucky’s wood industry is a major, though often unsung, player in the Commonwealth’s economy. According to 1998 statistics published by the Kentucky Revenue Cabinet, it is a $4.3 billion industry employing an estimated 28,000 to 32,000 people. Still, Kentucky’s wood industry is working to remain competitive and to reach the cutting edge. In the face of diverse challenges and ever-changing policies and trends, this boils down to a case of adaptation versus extinction.
A substandard resource Kentucky is made up of approximately 12.7 million acres of forest and in terms of hardwood production, the Commonwealth ranks third in the nation. Though these statistics make Kentucky sound as if it’s poised for greatness, the truth is that much of the standing timber in the state is less than ideal. During the past decade, over 62,000 acres of timberland were impacted by fire each year in the Commonwealth. Furthermore, a history of high-grading (or "taking the best and leaving the rest") has resulted in woodlands that only reach a fraction of their potential. When one learns that 93 percent of forest lands in the state are privately owned, it becomes clear that the burden of resource enhancement rests upon the shoulders of the private landowners. Through free technical assistance, the Kentucky Division of Forestry helps landowners improve the timber, wildlife and recreational resources on the forest lands they own.
Educating the public On one hand, the demand for forest products is high and by all predictions will continue to be so. On the other hand, many people dislike seeing timber harvests taking place in their part of the state. This seeming inconsistency in public opinion over the years has led to the evolution of various educational programs in both the private and governmental sectors, as well as to intensive public relations campaigns by larger industry entities. West Virginia-based Jim C. Hamer Company, which opened up a new sawmill near Prestonsburg, Kentucky last year, is one example of a primary wood industry taking an active role in education. Rob Jones, public affairs director for the company, dedicates much of his time to outreach in schools and civic organizations. A typical day for Jones might include visiting a classroom to give a multimedia presentation on the wood industry or spending a day with school faculty members, traveling by bus to timber harvest sites and sawmills. Although interaction with students is a key component of the company’s educational outreach, Jones says the ultimate goal is to reach the teachers. "Our philosophy is to go after the adults," says Jones, "because the adults are the ones who will carry the ball year after year." Smaller operators are quickly catching on to the need for good public relations as well, even if this is accomplished simply through the use of bumper stickers or tree seedling purchases for classrooms.
Keeping up with technology With the rapid growth of computer-aided machinery and more efficient operating systems, it becomes increasingly important for individual sectors in the industry to keep abreast of change. Murphy-Catton, Inc. in Walton began in the early 1980s as a fine furniture shop. Today, this company makes exhibits for national and international trade shows and museums, including creations for the National Park Service’s Washington Monument Interpretive Center, the Cincinnati Zoo and the Museo de los Niņos in Guatemala. The Kentucky Wood Products Competitiveness Corporation leads the industry in the game of technological catch-up by offering equipment training at Kentucky technical schools and community technical colleges. Besides hand-on equipment training, these programs also involve an understanding of wood science, computer applications and fundamental forestry principles. Companies can expand their technological prowess through KWPCC’s technology transfer: available machinery is used to teach the most up-to-date systems in the industry. KWPCC gets more modern equipment every two years and can help individual companies get the older equipment at a reduced price. The organization has recently taken another step forward by launching an e-commerce site (at http://www.woodproductsmall.com). "It was developed as a business-to-business site," explains KWWPCCExecutive Director Mark Kaser, "but we now have it set up as a retail site. We’ve now got it so that all the craft people can get on it, as well as little manufacturers."
Overcoming hurdles KWFCC also serves to unify individual companies so that they can operate as a single force. Frank Ashley, a partner with The Commonwealth Group, says of KWPCC’s role in the industry, "Before this organization was formed, the industry was just going out in all directions, and the left hand didn’t know what the right hand was doing. That’s probably why, even today, people don’t realize how big the industry is. It never spoke with a single voice. It never marketed with a single voice. It never lobbied with a single voice." Other types of industries enjoy the luxury of a network of manufacturers and suppliers that work closely together in the production process. KWPCC, serving in a co-op role, is working to establish this type of culture and network within Kentucky’s wood industry so that wood products companies will have an added incentive for locating in the state. Other challenges lie in the road of the industry’s journey into the future. An automatic six percent sales tax disadvantage for Kentucky manufacturers bidding against out-of-state competitors is one of these. House Bill 826 attempts to soften the blow of this disadvantage by giving a five percent preference to all products made in Kentucky. Waste management is another common challenge to the wood industry. Although markets exist for everything from bark to sawdust, transportation costs make it very unprofitable for companies to carry their waste to these markets. A few companies are using their wood waste as fuel, in heating their dry kilns for example. Young Manufacturing, an oak millwork company in Beaver Dam, uses an estimated 99 percent of what it harvests. At Young, wood waste is utilized in the production of steam. This company generates enough heat to dry their lumber.
The future of Kentucky’s wood industry Despite the hurdles that the wood industry must overcome, it is quickly gaining ground. The unification and technological leadership of the Kentucky Wood Products Competitiveness Corporation is advancing the industry to a pinnacle that, for the most part, has long been beyond their reach. The University of Kentucky and Eastern Kentucky University have also labored to bring modernized training to those who need and want it. The Kentucky Division of Forestry has attacked the need for resource enhancement through landowner education and technical assistance. What’s the next stage of development for the industry? Mark Kaser’s vision is for Kentucky to eventually become proactive in the technological revolution. "In 30 years," says Kaser, "I would love to see this industry have a research and development center in the state." Being on the cutting edge of research, explains Kaser, would also encourage wiser use of the resource. The goals of Kentucky’s wood industry are worthy ones, but the challenges are numerous. Slowly, the primary and secondary companies are advancing towards the future. The industry is approaching the task of development much as one would build a house or create a cabinet or turn a log into flooring: one step at a time.
Phillip Meeks (editorial@lanereport.com) is a freelance writer based in Betsy Lane.
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