Pennsylvania Hardwood Industry Paul Lyskava Pennsylvania Forest Products Association Wayne Bender Pennsylvania Hardwoods Development Council Governor’s Green Ribbon Commission January 7, 2015

PA Wood Products Employment NAICS 2005 2009 2014 Forestry/Logging (113) 793 634 783 Wood Products Mfg (321) 28,666 20,579 20,769 Paper Manufacturing (322) 27,626 24,876 23,675 Furniture and Related Products Mfg (337) 23,839 17,511 14,841 Total 80,924 63,600 60,068

PA Wood Products Employers NAICS 2004 2009 2014 Forestry/Logging (113) 290 231 215 Wood Products Mfg (321) 1,112 1,050 939 Paper Manufacturing (322) 343 293 266 Furniture and Related Products Mfg (337) 918 772 671 Total 2,663 2,346 2,091

U.S. Eastern Hardwood Production (in billion board feet)

Red Oak and White Oak Pricing Source: Hardwood Review

Cherry and Ash Pricing Source: Hardwood Review

PA Wood Sources PA Forest Land Ownership Industry Timber Sources Private Lands 66% PA Company Lands 11% PA Public Lands 9% Out of State Land 14% Lord, 2013

Pennsylvania Hardwoods Development Council Created in 1988 by PA State Legislature Four Mission Objectives Since 1988: Timber Access and Responsible Forest Management Economic Assistance to Primary and Value Added Processors Domestic and International Marketing Public Education about Forestry and Forest Products Industry Additional Objectives Since 2013 (25th Anniversary Forum) Promote Science Based Environmental Message Workforce Development Minimize Regulation Promotes brand “Pennsylvania Hardwood Stands for Quality Pennsylvania WoodMobile

PA WoodMobile 1,482,647 Visitors 162,055 Students/Teachers

American Hardwood Forests US hardwood growth and removals (million m3) US hardwood inventory (billion m3) A lot of parallels between French and US hardwood resource – also increasing in size – also owned mainly be small private owners. The US hardwood resource extends to around 110 million hectares – largest temperate hardwood forest in the world - concentrated in the Eastern U.S.. Every year for the past 50 years, the volume of wood removed from US hardwood forests has been well below the growth rate. In recent times, harvesting has only taken around 50% of the net growth. The result is that between 1953 and 2007, the volume of U.S. hardwood growing stock more than doubled from 5.2 billion m3 to 11.3 billion m3.

Pennsylvania Forest Growth: Today, Pennsylvania has 5x more forest resource than in 1955!

US Hardwood is Under-Utilized

Source: Global Trade Atlas

Source: Global Trade Atlas & Eurostat

Source: USDA GATS

TOTAL PENNSYLVANIA EXPORTS = $454,692,029 In Millions TOTAL PENNSYLVANIA EXPORTS = $454,692,029

“Middle Class” Outside the U. S “Middle Class” Outside the U.S. Expected to Double By 2020 – Approaching 1 Billion Households Worldwide commodity consumption will be impacted Foreign households w/real PPP incomes greater than $20,000 a year (in millions of households) Middle class in developing countries projected to increase 138% by 2020 vs. just 15% in developed countries in 2009 Developing countries Developed countries (ex US) Source: Global Insight’s Global Consumer Markets data as analyzed by OGA

Finding New Markets: Exterior Use -Thermally Modified Structural Uses

Thermally Modified Ash from Pennsylvania Museum of European and Mediterranean Civilisations in Marseille, France Thermally Modified Ash from Pennsylvania

3) Environmentally Green Marketing

Life Cycle Analysis Inventory Data

Derived from PE/AHEC ireport

DNA finger printing of American hardwood Preliminary discussions with Double Helix, company specialising in DNA timber tracking Funding sought for a US forest genographic map showing distribution of genetic types for tree populations New low cost timber DNA testing equipment becoming available to importers, retailers & regulators Incontrovertible proof of specific US origin and that wood is negligible risk

Mortality before harvesting leads to the release of 160 million tons of CO2 to the atmosphere, annually in the USA

Questions: Wayne Bender 717-705-3930 dbender@pa.gov Paul Lyskava 717-901-0420 plyskava@paforestproducts.com Thank you to American Hardwood Export Council, Michael Snow, Executive Director