In other NWFA news…
Korczak touched on a few other topics pertinent to NWFA members.
RPP update: With Anderson and Mullican having completed the RPP audit, seven more companies have signed up, including Cikel, Sheoga, Mannington, Mohawk and Augusta Lumber.
Raw material price hikes: The recession took its toll on sawmills and small landowners. Landowners weren’t harvesting their logs and sawmills weren’t building up their inventory. “The pipeline of logs is pretty empty,” he said. “So as demand grows throughout the recovery, we will have to pay a little more.”
China: The economic downturn has caused some changes as it relates to Chinese competition. Imports from China have decreased dramatically over the last few years as demand dropped. The U.S. is no longer as attractive as a landing spot for its hardwood, so China started sending more to Europe. “As our economy recovers, China will certainly try to increase its level of exports, but it may not hap- pen at such a rapid pace because of the European market opportunity.”
Increasing labor costs in China have also changed the game a bit. “Because of its industrialization, China has created a middle class. And that middle class requires greater salary. So Many manufacturers have moved to other Southeast Asian countries that still have low labor costs.”
-Steven Feldman