October 08, 2024

EU Proposes One-Year Delay Of EUDR

This Week's Insights

Last month, we highlighted how the American Hardwood Export Council has been working hard in collaboration with allies and governments in the U.S. and around the world to delay the implementation of the EU Deforestation Regulation (EUDR). The European Commission appears to have finally listened to concerns and called for a delay in implementation. This is a very good and important step. However, it is not sufficient. EUDR is fatally flawed with respect to forest products, particularly in the U.S. and for many small landowners. Despite virtually nonexistent deforestation due to agriculture in the U.S., this regulation remains a huge burden and is unworkable for U.S. hardwoods. We will continue to work with AHEC and other allies to fix the regulations.

At DHA, our standards are a very important part of our work. We are happy to announce hard copy sales of the new American National Standard for Hardwood and Decorative Plywood (ANSI/HPVA HP-1). DHA will continue to make the standard available free of charge for download from our website. But, for those who prefer a bound hard copy, pocket-size and full-size versions of the standard will be available for sale.

If you have questions or comments, contact me. I look forward to hearing from you.


Keith A. Christman, President
Decorative Hardwoods Association

EU Proposes One-Year Delay Of EUDR

After receiving pushback and requests for delay from forest industry representatives, the U.S. government, and European governments and industry, the European Commission has proposed delaying the implementation of the EU Deforestation Regulation. If approved by the European Parliament and the Council, this would push the timeline back so that the law would become applicable for large companies on December 30, 2025, and for micro and small enterprises on June 30, 2026.

According to the European Commission, as all tools for implementation are technically ready, the extra twelve months can serve as a phasing-in period to ensure proper and effective implementation.

DHA Will Publish Revised Hardwood Plywood Standards

DHA has written, updated, and published the American National Standard for Hardwood and Decorative Plywood (ANSI/HPVA HP-1) for nearly a century. This standard is an important part of the work we do as it helps buyers and manufacturers communicate and specify natural, beautiful hardwood plywood. The standard is undergoing its final design before publication.

DHA will continue to make the standard available free of charge as a downloadable PDF to facilitate hardwood plywood sales. Full-size and pocket-size print copies will be available for sale at $25 each. Orders of more than 50 copies will receive a bulk discount of $2.50 each. Order more than 100 copies to save $4.00 on each.

OSHA Proposes Workplace Heat Rule

The Occupational Safety and Health Administration published its proposed rule on workplace heat standards with an extended period for comments through the end of 2024. OSHA's proposal mandates heat injury plans for employers who operate both outdoors and indoors, including sawmills, with separate requirements at 80 and 90 degrees. The Hardwood Federation will be soliciting feedback from our industry about what is already included in companies' work plans and the impact of additional red tape.

House Passes The Fix Our Forests Act

The bipartisan Fix Our Forests Act has passed the U.S. House of Representatives. The legislation's goal is to enhance forest management practices to reduce wildfires and protect communities. It would give agencies the tools they need to start forest management projects immediately. The bill would also simplify and expedite environmental reviews for forest management projects and deter frivolous litigation that delays essential projects.

U.S. Ports Are Back To Work—For Now

U.S. dock workers and port operators reached a tentative deal that ended the three-day strike that shut down shipping on the U.S. East and Gulf Coasts. The parties agreed to a wage increase of about 62% over six years, raising average wages from $39 per hour to $63 per hour. Automation is still under negotiation. 

Timber Markets In Asia May Be Stabilizing

Timber markets in some Asian countries appear to be stabilizing. The Global Timber Index report, which tracks the timber sector in nine countries, showed indices for Indonesia (50.4%, up from 46.4% in July) and Thailand (50.0%, up from 48.4%) that reached the 50% threshold in August. A value above 50% indicates growth.

Columbia Forest Products Provides Hurricane Aid

DHA member Columbia Forest Products is hard at work helping communities in North Carolina that are dealing with unprecedented flooding and devastation after Hurricane Helene. Many of Columbia's employee-owners in the area are suffering from the destruction of homes and property as well as the lack of power, water, and cell service. Columbia organized food and water deliveries out of Greensboro, NC. Its Old Fort mill was directly affected by power outages.

KCMA Revamps "Severe Use Standard"

The Kitchen Cabinet Manufacturers Association has revamped the Severe Use Standard into a performance-based standard. Initially a specification requiring specific materials and construction techniques to be used in manufacturing, the revised 2024 Severe Use Standard contains test methods that predict how cabinets will perform with heavy use or under adverse conditions.

Cabinet Sales Volume Fall By 4.2%

U.S. sales of cabinets are slower than last year. Through August, the volume of cabinets sold has fallen by 4.2%. The dollar value dropped by 2.4%. Sales volume did recover in August, up by 3.5% from July, but still 12.7% below August 2023.

The State Of Flooring Distribution

The residential market is down about 10% for the second year in a row, impacting flooring distributors. Some distributors noted that while lower mortgage interest rates will not have an immediate effect, they do expect the market to improve next year. 

Capital Testing Continues To Expand Testing Services

To support the expansion, the Capital Testing team welcomes mechanical engineer David Conge. David will be responsible for assisting with the lab's full suite of physical and mechanical tests, including bending, tension, compression, and abrasion resistance testing.

Forests Fail To Recover From Wildfires

The accelerating loss of forests to wildfire is affecting the U.S. government's ability to replant. Agencies are not able to collect enough seeds. They lack the nursery capacity to grow seedlings for replanting and don't have enough trained workers to plant and monitor trees.

White Oak Declines Affect Bourbon, Too

The global decline of white oak forests is affecting the hardwood industry—and bourbon. By law, bourbon must be aged in new, charred American oak barrels. Most distilleries prefer white oak for its strength and resulting flavor and rich color. Oaks have declined in 39 countries. 31% of the 430 known oak species are approaching extinction.

What Is Washington State's Plan To Fight Megafires?

Washington State's 20-year plan to manage wildfires includes thinning overgrown forests through cutting, mowing, and prescribed burns across hundreds of thousands of acres. The state legislature budgeted $500 million over eight years to get started and help communities prepare for wildfire.

Key Fed Inflation Gauge Is Lower Than Expected
Job Market Is Strong; Unemployment Falls To 3‑Month Low
Construction Job Openings Rebound
Private Residential Construction Spending Falls Again
66% Of New Single-Family Homes Have 2-Car Garages
NAHB Seeks Input On Modernizing The Mortgage Interest Deduction
Wood Trivia: Test Your Knowledge

How many people are employed in wood products manufacturing across the U.S. and in your state?

Answer: More than 450,000. Click the link below to see how many are employed in your state. 

PHOTO © TIMBER PRODUCTS COMPANY

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