Progress 10/01/06 to 09/30/07
Outputs
Over the last 40 years the composition of West Virginia forests have been changing as selective cutting practices have removed larger diameter timber of specific species and partial canopy removal has fostered the regeneration of shade tolerant species such as red maple. However, since the mid 1990s there has been considerable change in both the number of markets accepting lower quality and smaller diameter roundwood especially yellow-poplar. These changes have increased the number of roundwood markets and thus have increased the potential for harvesting based on silvicultural objectives or clearcuts. An examination of harvesting and merchandising practices for 28 harvest sites in West Virginia found an average of four merchandising separations or markets per site. While the presence of new markets may have increased the section of sites containing yellow-poplar and the removal of this species from these sites, the continuation of diameter-limit cutting seems to have
the greatest effect on which trees are removed. This pattern of partial harvests continues to favor the regeneration of shade-tolerant species such as red and sugar maple.
Impacts
This research describes the complexities of hardwood roundwood markets and how these markets influence the selection of forest sites to be harvested and individual trees to be served.
Publications
- Ince, Peter; Schuler, Albert; Spelter, Henry; Luppold, William. 2007. Globalization and structural change in the U.S. Forest Service: in evolving context for sustainable forest management. Gen. Tech. Rep. FPL-GTR-170. Madison, WI: U.S. Department of Agriculture, Forest Service, Forest Products Laboratory. 62 p.
- Luppold, William. 2006. Is the current poor market for Central Appalachian hardwoods temporary? Hardwood Market Report 84(46): unnumb.
- Luppold, William; Alderman, Delton. 2007. Influence of species on site selection and timber removal: a case study for West Virginia. Northern Journal of Applied Forestry 24(2): 146-148.
- Luppold, William G.; Bumgardner, Matthew S. 2006. Two eras of globalization and hardwood sawtimber demand. Hardwood Matters: 10-11.
- Luppold, William G.; Bumgardner, Matthew S. 2007. U.S. hardwood lumber demand: 1963-2002. 10th Annual Statistical Analysis of the North American Hardwood Marketplace: 103-106.
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Progress 10/01/05 to 09/30/06
Outputs
West Virginia is home to a diverse group of primary hardwood processing industries including hardwood grade mills, industrial hardwood sawmills, engineered wood-product manufacturers, rustic-fence plants, face-veneer manufacturers, a hardwood plywood mill, and several roundwood and pulpwood concentration yards that supply mills in Ohio and Virginia. Each of these primary hardwood-processing industries has specific roundwood requirements with respect to species and quality resulting in a diverse set of roundwood markets. We examined the diversity of West Virginia's roundwood markets based on a detailed survey of 30 logging and associated roundwood merchandising operations. The harvesting operations surveyed merchandise roundwood to an average of four markets each. However, the production of sawlogs and yellow peeler logs appears to be driving these operations. In addition, there is a significant demand for lower grade yellow-poplar roundwood for oriented strand board
production. These changes have created additional demand for yellow-poplar timber. An examination of harvest site selection and timber removal inferred that sites harvested contained relatively large quantities of yellow-poplar and that relative removal rates of yellow-poplar and black cherry were greater than those of red and sugar maple, hickory, and American beech. While increased rates of yellow-poplar harvest appear to be a function of multiple markets for this species, the high rate of black cherry harvest is a function of the high value of this species.
Impacts
This research describes the complexities of hardwood roundwood markets and how these markets influence the selection of forest sites to be harvested and individual trees to be severed.
Publications
- Alderman, Delton; Luppold, William. 2005. Examination of regional hardwood roundwood markets in West Virginia. Forest Products Journal. 55(12):153-157.
- Luppold, William; Alderman, Delton. 2006. The influence of species on site selection and timber removal in West Virginia. In: Chang, Sun Joseph; Dunn, Mike A., eds. Forestry: economics and environment. Proceedings of the Southern Forest Economics Workshop; 2005 April 18-20; Baton Rouge, LA. [Place of publication unknown]: [Publisher name unknown]: 23-31.
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Progress 10/01/00 to 10/01/05
Outputs
OUTPUTS: Demand for hardwood lumber has changed over the past four decades as a result of material substitution, changes in construction and remodeling product markets, and globalization. In 1963 furniture producers consumed 36 percent of the hardwood lumber used by domestic manufacturers. Producers of hardwood construction and remodeling (CR) products accounted for an additional 32 percent of hardwood lumber consumption. Between 1967 and 1982 hardwood lumber consumption by furniture producers remained relatively constant but lumber demand by CR product manufacturers declined by 33 percent. However, production of pallets and crossties increased and accounted for 41 percent of hardwood lumber consumption by 1982. In the 1980s and 1990s overall hardwood lumber consumption surged because of increased lumber use by pallet and CR product manufacturers. Since the late 1990s furniture imports have increased while domestic furniture production has declined, thus furniture manufacturers accounted for only 18 percent of domestic hardwood lumber consumption by 2002. By contrast, consumption by the hardwood millwork, cabinet, and flooring sectors have continued to increase. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Industry, government, academia PROJECT MODIFICATIONS: Not relevant to this project.
Impacts
Historic and up to date information on the different uses of hardwood products is needed to develop effective forest policy. This historic analysis in combination with analyses completed in prior years has established a base line in which future demand for hardwood products can more easily be projected.
Publications
- Bumgardner, Matthew; Romig, Robert; Luppold, William. 2007. Wood use by Ohios Amish furniture cluster. Forest Products J. 57(12): 6-12.
- Luppold, William; Bumgardner, Matthew. 2007. U.S. hardwood lumber demand: 1963 to 2002. Hardwood Market Report, 2006: The Year at a Glance. p. 103-105.
- Bumgardner, Matthew; Romig, Robert; Luppold, William. 2008. The Amish furniture cluster in Ohio: competitive factors and wood use estimates. In: Jacobs, Douglass F.; Michler, Charles H. eds. Proceedings, 16th Central Hardwood Forest Conference; 2008 April 8-9; West Lafayette, In. Gen. Tech. Rep. NRS-P-24. Newtown Square, PA: U.S. Department of Agriculture, Forest Service, Northern Research Station: 130-138.
- Luppold, William; Bumgardner, Matthew. 2008. Forty years of hardwood lumber consumption: 1963 to 2002. Forest Products J. 58(5): 7-12.
- Luppold, William; Bumgardner, Matthew. 2008. Procedures used to estimate hardwood lumber consumption from 1963 to 2002. Gen. Tech. Rep. NRS-26. Newtown Square, PA: U.S. Department of Agriculture, Forest Service, Northern Research Station. 14 p.
- Luppold, William G.; Bumgardner, Matthew S. 2008. Changes in the distribution and size of hardwood sawmills in Tennessee, 1989 to 2000. In: Hodges, Donald G., ed. Proceedings, 2006 SOFEW, Emerging Issues in Forest Economics. 2006 March 22-24; Knoxville, TN: 89-96.
- Luppold, William G.; Bumgardner, Matthew S. 2008. Hardwood lumber demand: 1963 to 2002. In: Gan, Jianbang, ed. Proceedings, Southern Forest Economics Workshop. 2007 March 4-6; San Antonio, TX: 49-55.
- Luppold, William G.; Bumgardner, Matthew S. 2008. Is the current poor market for hardwood lumber in North Carolina, Virginia, and West Virginia temporary In: Gan, Jianbang, ed. Proceedings, Southern Forest Economics Workshop. 2007 March 4-6; San Antonio, TX: 15-22.
- Luppold, William G.; Bumgardner, Matthew S. 2008. Two eras of globalization and hardwood timber demand. In: Hodges, Donald G., ed. Proceedings, 2006 SOFEW, Emerging Issues in Forest Economics. 2006 March 22-24; Knoxville, TN: 125-132.
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Progress 10/01/04 to 09/30/05
Outputs
The selection of sites to be harvested and trees to be severed is a function of local, national, and international markets for roundwood products. Through this selection process, markets influence future forest composition and structure. There are multiple markets for hardwood roundwood as a result of variations in species mix and timber quality. There are three broad categories of hardwood roundwood markets: esthetic, industrial, and fiber. Hardwood roundwood used to manufacture products for esthetic application accounts for a small portion of total roundwood harvested, but the value of these products has a disproportional influence on what sites will be harvested. Because of the skewed value of hardwood material, the potential value of a given stand may be determined by relatively few trees within the stand. Still, there are areas within the eastern hardwood region where a large portion of the resource is lower value or lower quality timber. In these areas,
fiber-based industries may be an important factor influencing harvesting. One state in which harvesting practices have changed in recent years is West Virginia as new forest industries have created additional roundwood markets for yellow-poplar. An examination of harvest site selection and timber removal inferred that sites harvested contained relatively large quantities of yellow-poplar and that relative removal rates of yellow-poplar and black cherry were greater than those of red and sugar maple, hickory, and American beech. While increased rates of yellow-poplar harvested appear to be a function of multiple markets for this species, the high rate of black cherry harvested is a function of the high value of this species.
Impacts
This research describes the complexities of hardwood roundwood markets and how these markets influence the selection of forest sites to be harvested and individual trees to be severed.
Publications
- Luppold, William; Alderman, Delton. 2004. Examination of regional hardwood roundwood markets in West Virginia. In: Alavalapati, Janaki, R.R.; Carter, Douglas R. eds. Proceedings, 2004 southern forest economics workshop: competitiveness of southern forest products markets in a global economy: trends and predictions; 2004 March 14-16; St. Augustine, FL. Mississippi State, MS: Mississippi State University: 130-138.
- Luppold, William; Bumgardner, Matthew. 2004. An examination of eastern U.S. hardwood roundwood markets. Forest Products Journal. 54(12): 203-208.
- Wagner, John E.; Smalley, Bryan; Luppold, William. 2004. Factors affecting the merchandising of hardwood logs in the southern tier of New York. Forest Products Journal. 54(11): 98-102.
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Progress 10/01/03 to 09/30/04
Outputs
Multiple markets for hardwood roundwood (sawlogs, pulpwood, etc.) exist because of variations in the value of this material within and among hardwood stands. These variations in value are the result of differences in species mix, bole quality, and location. Further, individual trees can be processed or merchandized into numerous products with each product going to a different primary processor. Because the merchandizing process has an underlying profit motive, the characteristics of hardwood roundwood markets in a given area influence what sites will be harvested and what trees will be removed. There are three broad categories of hardwood roundwood markets: esthetic, industrial, and fiber. While roundwood used to manufacture products for esthetic application may account for only a small portion of total roundwood harvested, the value of these products has a disproportional influence on what sites will be disturbed. Also, because of the skewed value of hardwood
material, the potential value distribution of a given stand may be determined largely by a small percentage of trees in that stand. West Virginia contains a large and diverse hardwood resource ranging from oak hickory forests in the southern and western portions of the state to northern hardwood stands in the northeast. West Virginia also has a diverse group of primary hardwood processing industries including hardwood grade mills, industrial hardwood sawmills, engineered wood product manufacturing facilities, rustic fence plants, a hardwood plywood mill, and several pulpwood concentration yards that supply mills in Virginia and Ohio. Each of these primary hardwood processing industries has specific roundwood requirements with respect to species and quality resulting in a diverse set of roundwood markets. Roundwood markets in West Virginia were examined based on a detailed survey of 30 logging and associated roundwood merchandising operations. The logger operations surveyed
merchandised roundwood to an average of four markets each; however, the production of sawlogs or peeler logs appeared to be the primary driver of these harvesting operations. Other roundwood markets appear to be secondary and material is merchandised for these markets as profit opportunities emerge. Of all species harvested in West Virginia, yellow-poplar was the most versatile because of it use for sawlogs, peeler logs, rustic fence railing, and as the primary species used in oriented strand board production. Changes in regional hardwood sawmill capacity in Pennsylvania were estimated then related to changes in regionally price indexes adjusted for changes in composition that occurred between 1970 and 1999. The analysis found that the adjusted price indexes explained regional shifts in sawmill capacity. This finding supports the conclusion that regional changes in sawmilling capacity are influenced by a combination of interspecies price changes and changes in species availability.
Impacts
This research provides a more complete picture on the factors that influence hardwood roundwood merchandising procedures and how these procedures may influence what is harvested and the structure of the sawmilling industry in Pennsylvania.
Publications
- Luppold, William G. 2004. Looking forward: market trends for U.S. hardwood timber & logs. Hardwood Market Report Year at a Glance: 63-65.
- Luppold, William; Bumgardner, Matthew. 2003. Complexities of hardwood roundwood supply and demand. In: Moffat, Steverson O. ed. Proceedings, 2003 Southern Forest Economics Workers Annual Meeting; 2003 March 17-18; New Orleans, LA: 30-38.
- Luppold, William G.; Bumgardner, Matthew S. 2004. Changes in the timber resources and sawmillnig industry of Pennsylvania. In: Forest Products Society 58th annual meeting; 2004 June 27-30; Grand Rapids, MI. Madison, WI: Forest Products Society: 48. Abstract
- Luppold, William G.; Smith, Paul M.; Dasmohapatra, Sudipta. 2003. Regional differences in the timber resources and the sawmill industry in Pennsylvania. In: Moffat, Steverson O. ed. Proceedings, 2003 Southern Forest Economics Workers Annual Meeting; 2003 March 17-18; New Orleans, LA: 279-285.
- Wiedenbeck, Jan; Wiemann, Michael; Alderman, Delton; Baumgras, John; Luppold, William. 2004. Defining hardwood veneer log quality attributes. Gen. Tech. Rep. NE-313. Radnor, PA: U.S. Department of Agriculture, Forest Service, Northeastern Research Station. 36 p.
- Luppold, William G.; Alderman, Delton. 2004. An examination of hardwood roundwood markets in West Virginia. In: Forest Products Society 58th annual meeting; 2004 June 27-30; Grand Rapids, MI. Madison, WI: Forest Products Society: 40. Abstract.
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Progress 10/01/02 to 09/30/03
Outputs
The hardwood industry is composed of hardwood sawmills, appearance veneer mills, plywood mills, engineered wood product manufacturers, pulp mills, and other miscellaneous industries. While this group of manufacturers is on the surface extremely diverse, they share a common input, hardwood roundwood. Hardwood roundwood is unprocessed sections of trees and can vary in value from extremely low as in the case of hardwood pulpwood to extremely high as in the case of high-quality veneer logs. What makes the hardwood market unique is the variety of roundwood material that can be produced from one logging job. Most hardwood forests contain a variety of trees of differing species and quality. Furthermore, an individual tree can yield a variety of products with the first or butt log usually being the most valuable and subsequent logs being less valuable. The process in which different forms of roundwood are separated and sold is termed timber merchandising. The degree of
roundwood merchandising that occurs after harvesting is influenced by the quality of a timber stand and the proximity of the timber stand to different roundwood markets. Understanding the merchandizing process and the biological and technical factors that influence this process are fundamental in determining the value of a particular stand of timber and the probability that a stand will be harvested during some finite future time period. The hardwood sawmilling industry is arguably the most important part of the hardwood industry based on the value of the timber these mills consume. However, hardwood sawmills are numerous, vary in size, and can be difficult to obtain information on. Developing information about the hardwood sawmilling industry is especially acute for the State of Pennsylvania, which is also the most important hardwood state both in volume and value of lumber produced. A recent study of this state found over 500 mills that ranged in size from under 10,000 board feet of
lumber production per year to over 40 million board feet per year. This study also found regional differences in average mill size, type sawing technology employed, and species produced and related these differences to variation in timber composition and quality.
Impacts
This research provides a more complete picture on the factors that influence hardwood roundwood merchandising procedures and how these procedures may influence what is harvested and the structure of the sawmilling industry in Pennsylvania.
Publications
- Smith, Paul M.; Luppold, William G.; Dasmohapatra, Sudipta. 2003. Estimating the size of the hardwood sawmill industry in Pennsylvania. Forest Products Journal. 53(6): 19-22.
- Dasmohapatra, Sudipta; Luppold, William G.; Smith, Paul M. 2003. A profile of the Pennsylvania hardwood sawmill industry. In: Forest Products Society 57th annual meeting; 2003 June 22-25; Bellevue, WA. Madison, WI: Forest Products Society: 49. Abstract.
- Luppold, William G. 2003. Biological and market factors influencing hardwood merchandising. In: Forest Products Society 57th annual meeting; 2003 June 22-25; Bellevue, WA. Madison, WI: Forest Products Society: 50. Abstract.
- Luppold, William G.; Dasmohapatra, Sudipta. 2003. Regional differences in the hardwood sawmill industry in Pennsylvania. In: Forest Products Society 57th annual meeting; 2003 June 22-25; Bellevue, WA. Madison, WI: Forest Products Society: 42. Abstract.
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Progress 10/01/01 to 09/30/02
Outputs
The 21st century has ushered in an era of change for eastern hardwood manufacturing industries. This change has influenced the volume and type of roundwood products consumed and will ultimately impact the long-term composition and structure of eastern hardwood forests. Since the turn of the century, the domestic wood household furniture industry has been the largest consumer of higher grade hardwood lumber and veneer. Through this dominance, the furniture industry has largely dictated how lumber was manufactured and distributed. However, since the late 1990's a large number of domestic manufacturing plants have closed as furniture imported from Asia, Canada, and Europe have displaced domestic production. While international furniture manufacturers do import lumber and veneer from the United States, they also can purchase hardwood material from sources outside of the United States. In aggregate this means that the increase in exports to offshore manufacturers is
considerably less than the decline in shipment to domestic manufacturers. This has resulted in a decline in domestic lumber production that is in excess of declines that normally occur during economic recessions. Unlike previous declines in lumber production that have occurred over the last 30 years, lumber production probably will not rebound and reach pre-recession levels once economic prosperity begins. While the decline of the furniture industry has reduced the demand for higher grade timber, increased production of engineered wood products such as oriented strand board has increased the demand for low-grade timber of species with lower specific gravity such as yellow-poplar and aspen. Still, the largest user of lower quality hardwood roundwood is the pulp and paper industry. But, the pulp industry also has been facing a declining market as China (once a major export market) is attempting to become self-sufficient in paper production. While changes in the domestic and
international markets for hardwood products will influence the composition and structure of the hardwood resource, it will be difficult to isolate the impact of timber removals for small geographic areas because of data resolution problems. In many cases published estimates of timber removal and mortality for specific hardwood species at the county level are based on a small sample of 10 or fewer trees.
Impacts
This research provides a more complete picture of how current and future markets for hardwood roundwood influence the value of timber and the composition and structure of eastern hardwood forests.
Publications
- Luppold, William; Prestemon, Jeffrey; Schuler, Albert. 2002. Changing markets for hardwood roundwood. In: Zhang, Daowei; Mehmood, Sayeed R., eds. Forest law and economics; 2001 March 27-28; Atlanta, GA. South. For. Econ. Workshop Publ. 31-01. Auburn, AL: Auburn University: 96-100.
- Luppold, William G. 2002. Are hardwood markets changing? Hardwood Market Report. 80(15): 11-13.
- Luppold, William; McWilliams, William H. 2002. Avoiding spurious conclusions from Forest Service estimates of timber growth, removal, and mortality. In: Forest Products Society 56th annual meeting; 2002 June 23-26; Madison, WI. Madison, WI: Forest Products Society: 44. Abstract.
- Luppold, William, McWilliams, William. 2002. Pitfalls in interpreting forest inventory statistics. In: Zhang, Daowei; Mehmood, Sayeed R., eds. Forest law and economics; 2001 March 27-28; Atlanta, GA. South. For. Econ. Workshop Publ. 31-01. Auburn, AL: Auburn University: 32-36.
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