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The Hardwood Federation
Hardwood Manufacturers Association September 24, 2019
What is the Hardwood Federation?
- Voice of the U.S. Hardwood Industry
- Established in 2004
- 28 Hardwood Businesses Organization Members
Our Members Allegheny Hardwood Utility Group National Wood Flooring - - PowerPoint PPT Presentation
Our Members Allegheny Hardwood Utility Group National Wood Flooring - - PowerPoint PPT Presentation
The Hardwood Federation Hardwood Manufacturers Association September 24, 2019 What is the Hardwood Federation? Voice of the U.S. Hardwood Industry Established in 2004 28 Hardwood Businesses Organization Members Our Members
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Our Members
- Allegheny Hardwood Utility Group
- American Hardwood Export Council
- Appalachian Hardwood Manufacturers
- Appalachian Lumbermen’s Club
- Empire State Forest Products Assn.
- Hardwood Distributor’s Assn.
- Hardwood Manufacturers Assn.
- Hardwood Plywood & Veneer Assn.
- Indiana Hardwood Lumber Assn.
- Kentucky Forest Products Assn.
- Kitchen Cabinet Manufacturers Assn.
- Lake States Lumber Assn.
- Maple Flooring Manufacturers Assn.
- Missouri Forest Products Assn.
- National Wood Flooring Assn.
- National Woodland Owners Assn.
- North Carolina Forestry Assn.
- Northeast Loggers Assn.
- Pennsylvania Forest Products Assn.
- Penn-York Lumbermen’s Club
- Railway Tie Association
- Southern Cypress Manufacturers Assn.
- Southwestern Hardwood Manufacturers Club
- Tennessee Forestry Association
- Virginia Forestry Association
- Western Hardwood Association
- Westside Hardwood Club
- Wood Component Manufacturers Assn.
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The Hardwood Federation Charge
- Educate Policy Makers
- Monitor Federal Policy
- Participate in the Process
- Network with Allies
- Support Our Champions - HFPAC
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Why Does Advocacy Matter?
Why Does the Hardwood Industry Need A Washington Presence? People in DC Don’t Care About My Opinion. Everything is a Mess. Nothing is Getting
- Done. So Why Bother?
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If You Are Not at the Table…
You are on the Menu!
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Constituents and Economics Matter
Voters and Jobs Get Attention
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The Hardwood Economic Impact
2016 Direct Economic Impact U.S: $135.6 B; 700,000 Jobs 2016 Direct Economic Impact PA: $6.1 B; 32,000 Jobs 2016 Total Economic Impact U.S: $348.1 B; 2 million Jobs 2016 Total Economic Impact PA: $11.1 B; 62,974 Jobs
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Politics is S low
Change is Incremental
Usually
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2018 Successes Federal Forest Management Reform Farm Bill Passage Waters of the U.S.
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2019 Focus
It’s All About Trade!
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Changes in China Jan – June 2019 Source: AHEC
25% Tariff 20% Tariff 5% Tariff
- 80
- 70
- 60
- 50
- 40
- 30
- 20
- 10
10 Red Oak White Oak Ash Cherry Maple Ot her Temperate Walnut West ern Red Alder Yellow Poplar
Millions of Board Feet
- 36%
- 47%
- 32%
- 28%
- 54%
- 72%
+1%
- 41%
- 63%
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$- $50 $100 $150 $200 $250 $300 $350 $400 $450
Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19
MILLIONS ($US D)
Quarterly US HDWD Lumber Exports to China
In 12 months since Trade War started, lumber exports are down $615 million
Q2 2018 vs Q2 2019: Down 43%
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2017 2018 2019
Germany Laos Canada Cameroon Romania Indonesia Gabon Russia United S tates Thailand
US Losing Hardwood Lumber Market Share in China
USA: 31% USA: 27% USA: 18%
S
- urce: Global Trade Atlas, data through June ‘ 19
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How Did We Get Here?
Jan-March 2018: U.S. Tariffs on solar panels, washing machines, steel and aluminum. China retaliates with tariffs on $3B in U.S. goods
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How Did We Get Here?
July 6, 2018: U.S. imposes 25% tariffs on $34 B in Chinese goods. China retaliates with 25% tariffs on $34 B in U.S. goods.
- Aug. 23, 2018: U.S. imposes 10% tariffs on $16 B in
Chinese goods. China retaliates with 10% tariffs on $16 B in U.S. goods.
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How Did We Get Here?
- Sept. 24, 2018: U.S. imposes 10% tariffs on $200 B in
Chinese goods. China retaliates with 5-10% tariffs on $60 B in U.S. goods. Fall 2018: U.S. threatens to escalate 10% tariffs to 25%.
- Dec. 1, 2018:
U.S. and China agree to delay increases.
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How Did We Get Here?
May 5, 2019: Negotiations break down. Electronics company Huawei placed on restricted export list to the US. June 1, 2019: U.S. raises 10% tariffs on $200 B in Chinese goods to 25%. China retaliates with 5-25% tariffs on $60 B in U.S. goods.
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How Did We Get Here?
July 31, 2019: US-China talks end. Little progress.
- Aug. 1, 2019:
U.S. raises 10% tariffs on additional $300 B in Chinese goods on Sept. 1.
- Aug. 6, 2019:
U.S. declares China a currency manipulator. China suspends new U.S. Ag purchases.
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How Did We Get Here?
Aug.13, 2019: US delays latest tariffs on certain products until Dec. 15. Some still set for Sept. 1.
- Aug. 13, 2019:
U.S. and China agree to talk again.
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How Did We Get Here?
- Aug. 23, 2019: China announces $75 B in
new tariffs on U.S. goods on
- Sept. 1 or Dec. 15.
- Aug. 23, 2019: President tweets U.S. will
increase tariffs on $300 B in Chinese goods slated for Sept. 1. 25% tariffs on $250 B in Chinese goods will increase to 30%.
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How Did We Get Here?
- Aug. 26, 2019:
China calls for calm and continuation of negotiations.
- Aug. 26, 2019:
President Trump indicates agreement.
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Tariff Totals
US Tariffs Applied on Chinese Goods: $550 Billion Chinese Tariffs Applied on U.S. Goods: $185 Billion
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Why is Trade Hard?
Decisions are made at the very highest levels of government. Constant changes to the status quo. Limited powers lie with Congress. Many agree with the “get tough” position.
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Federation Action
Congressional Outreach Administration Contacts Fly-Ins to D.C.
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How to Be Engaged
Become Informed Become Involved Take Action!
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Hardwood Federation
If you do not take an interest in the affairs of your government, then you are doomed to live under the rule of fools. Plato
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