Hardwood Floors February/March 2025

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FEATURES

ON THE COVER

YOUR MESSAGE CRAFT INSTALLING SIMPLE AND EFFECTIVE MARKETING TACTICS

By Libby White Johnston Search engine optimization, artificial intelligence, engagement, and keywords. Marketing lingo alone can make wood flooring professionals feel overwhelmed. In this article, industry peers offer practical advice you can implement, whether you have a team of one or 100.

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Unlimited Moisture Protection/No Need to Moisture Test By Brett Miller In recent years, with the advancements in many flooring adhesives and sealers that have come to market, and some of the performance ratings that these products are capable of, there are new products designed to save time at the jobsite. However, contractors should not feel as though they can skip the moisture testing process altogether.

Self-Leveling Compound Considerations By Jim Muggleton The topic of choosing the right selection of flooring products for the right environment is one that is all too often overlooked, specifically regarding floor preparation products. Always ask the easy questions in advance, so you won’t be the one answering the hard questions later.

PUBLISHING PARTNERS

CONTENTS

Industry Insights

PUBLICATION ADVISORY COMMITTEE Robert McNamara | Chair, Sheoga Hardwood Flooring Jason Elquest | Blackhawk Floors Inc. Steve Brattin | Chair Michael Martin | CEO Anita Howard | COO Brett Miller | VP, Technical Standards, Training, & Certification Stephanie Owen | Executive Director, NERF NWFA LEADERSHIP

18 Government Affairs The 2025 Congressional line up. 22 Market Matters Uncertainty regarding incoming policies. 26 Special Content Missouri campaign fights for real wood over lookalikes.

By Dana Lee Cole

By Santo Torcivia

By Sydney Jones

Lenny Hall | Endurance Floor Company Inc. Kevin Mullany | Benchmark Wood Floors Inc. Jim Schumacher

Business Best Practices

30 Sales Savvy How sacrifice determines

Libby White Johnston | Publisher | libby.johnston@nwfa.org Burt Bollinger | Editor | burt.bollinger@nwfa.org Brett Miller | Technical Editor | brett.miller@nwfa.org Rhonda M. May | Creative Manager | rhonda.may@nwfa.org Amy Burris | Digital Manager | amy.burris@nwfa.org Bridget Norlie | Engagement Manager | bridget.norlie@nwfa.org PUBLICATION TEAM

By Paul Reilly

true value. 34 Legal Five key advertising and marketing

By Iqra Mushtaq

issues for businesses.

At the Site 58 Acoustic Ratings Unraveling the misconceptions and confusions. 62 Tech Talk Gluing down solid wood flooring. 64 WFOY Winner Spotlight Best Marquetry/Inlay:

14 Research Park Drive St. Charles, Missouri 63304 P : 800.422.4556 Local : 636.519.9663 F: 636.519.9664 E: news@hardwoodfloorsmag.com W: hardwoodfloorsmag.com

By Jared Kress

By Burt Bollinger

CONTRIBUTING WRITERS Burt Bollinger Steve Brattin Dana Lee Cole Libby White Johnston Sydney Jones

Ourada Designs 66 Hardwood Hints Moisture testing. 67 Sponsored Content Raising the standard in

Iqra Mushtaq Paul Reilly Scott Taylor Santo Torcivia

Jared Kress Michael Martin Brett Miller Jim Muggleton

By Scott Taylor

By Paul Stanko

temporary surface protection. 68 Technical Publication Tip Subfloor panels.

ADVERTISING SALES

Katie Schenk Advertising & Media Manager katie.schenk@nwfa.org | 636.736.5230

Product Focus

70 Adhesives, Subfloors, and Underlayment

Hardwood Floors (Print: ISSN 0897-022X and Online: ISSN 2475-5125) is published on a bi-monthly basis, plus the Annual Industry Guide, by the National Wood Flooring Association and distributed as a membership benefit to its member companies and without charge upon request to qualified individuals throughout the wood flooring industry. Single copy price is $8, annual Industry Guide is $50. Subscriptions: $40/year (includes 6 issues and Industry Guide) in the U.S. and Canada. Publication office: 14 Research Park Drive, St. Charles, MO 63304. Phone: 800.422.4556. Printing office: Walsworth, 306 N. Kansas Ave., Marceline, MO 64658. Printed in the U.S. Periodicals postage is paid at Chesterfield, MO and at additional mailing offices. POSTMASTER: Send address changes to Hardwood Floors, P.O. Box 9147, Lowell, MA 01853. Copyright © 2025 by the National Wood Flooring Association. All rights reserved. Reproduction in whole or in part without written permission is strictly prohibited. Hardwood Floors' subscription base is AAM audited. An AAM audit provides advertisers and agencies with assurance that what they choose to invest in does, in fact, reach target audiences for specific ads. The AAM audit also helps media companies by documenting the quality of their audiences.

Also in this Issue

6 Chair’s Cut

By Steve Brattin

8 Business Briefs 12 Wood Stock

By Burt Bollinger

74 New Products 76 Overheard on NWFA Podcasts 78 Wood Talk: Jorge Perez 79 Ad Index

80 Final Coat: CEO’s Message

By Michael Martin

ST in the

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CHAIR’S CUT EDUCATION AS A

Steve Brattin Chair, NWFA Marketing Tool

How do you present your business to potential customers and partners? Marketing is key to growth and expanding your reach. The cover story for this edition of Hardwood Floors is focused on developing a simple marketing plan and practical tips you can put into action now. At my company, we recognize the importance of marketing. We have an active presence on social media, and our website includes photo galleries and resources for our customers on how to care for wood floors. We also are active in the community

at ease about doing business with someone who is among the best in their field. The NWFA offers the following certifications: Certified Sales Advisor, Certified Installer, Certified Sand & Finisher, Certified Wood Flooring Inspector, Certified Craftsman, and Certified Master Craftsman. Beyond the validation it can give you with a prospective client, NWFA Certified Professionals can generate new business by being listed on

PHOTO COURTESY OF NWFA

the NWFA’s “Find a Professional” search

WOOD FLOORING

feature. The more classes you take, the higher you appear in the search results. Certification gives you

and with local and national industry trade associations. However, from a marketing perspective, one of the most powerful things you can do for your business is educate yourself. Education for yourself and your team is an investment that comes back to your company in several ways. First, education separates you from the competition. Being able to say that you stay up on things by taking classes and that you are affiliated with an organization such as the National Wood Flooring Association (NWFA) reassures the customer they are hiring someone who knows what they are doing. When we meet with homeowners, we go through a checklist that asks what type of training a contractor receives regularly and whether they have completed a certification program. We want them to know that our team has a solid understanding of the industry. Even our office staff who do not work in the field attend classes to understand what the crews handle at the jobsite. Having the designation of NWFA Certified Professional amps up the ability to market yourself as an expert in the wood flooring industry. Consumers know what it means when they see a certification from a valid professional trade organization and feel

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exclusive access to logos and badges to promote your status

via decals, business cards, shirts, online, and more. You also have a prominent listing in the NWFA Industry Guide as an NWFA Certified Professional. Finally, don’t overlook how education can boost your company’s marketing as a great place to work. Showing that team members are valued and that you are all in on helping them grow and learn is a way to build a group of loyal and passionate employees. It also demonstrates the significance of hard work, which is rewarded with continued development. For more information about education opportunities and other resources to help your business stand out, contact the NWFA at 800.422.4556 or visit nwfa.org.

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2020 , 2022 , 2023 & 2024

Photo by Caroline Sharpnack

For premium solid and engineered flooring that exceeds your customer’s standards for quality, partner with Peachey and see why any other choice is a compromise. Visit us online for a closer look at available custom finishes and cuts, including rift & quartered, chevron, and herringbone. All handmade in the USA for America’s greatest homes. PeacheyHardwoodFlooring.com | 717.667.9373 Custom flooring for your most demanding customers.

BUSINESS BRIEFS

IN MEMORIAM: LON MUSOLF With sadness, we share that Londale “Lon” Musolf passed away on November 7, 2024. He was born on August 1, 1927, in Crosby, Minnesota. In 1953, Musolf gathered up the $300 his wife Dona had been saving from his earnings as an apprentice installer/ finisher and began doing business. In 1986, he started a new venture, Lon Musolf Distributing. Musolf was the president of Lon Musolf Flooring Company and Lon Musolf Distributing. He was a founding member of the National Wood Flooring Association (NWFA), an instructor for NWFA schools, and was inducted into the NWFA Hall of Fame in 2001. He loved his craft, but loved people more. His friends and family were blessed with his generosity, curiosity, integrity, and warmth.

Londale “Lon” Musolf

QFloors Celebrates 25 Years In late 2024, QFloors employees gathered to celebrate the flooring software company’s

BECOME A MEMBER of the NWFA TODAY!

25th anniversary. According to co

founders Chad and Trent Ogden, things are just getting started for the company, which now employs 45 people and has more than 1,300 flooring businesses using its core business management software.

Unite with wood flooring professionals from across the globe who are dedicated

to education, industry standards, and quality service and products.

QFloors plans to continue to mark the anniversary with a variety of events, discounts, and promotions.

Chad and Trent Ogden, co-founders of QFloors

For more details, visit NWFA.ORG/MEMBERSHIP/

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RETAILER ROUNDUP

DISTRIBUTOR DOINGS All Surfaces has appointed Torie

AFS Group has acquired the assets and intellectual property of Flooring Solutions in Memphis, Tennessee. As part of the acquisition, the business will operate under the AFS brand. Floor Coverings International has expanded across Arizona with a new mobile showroom servicing two territories in Sunrise. With this signed franchise agreement, the company’s statewide footprint spans 14 territories. Floor & Decor has opened new locations in Davie and Dayton Beach, Florida; Austell-Mableton, Georgia; Owings Mills, Maryland; North Kansas City, Missouri; East Brunswick, Parsippany, and Turnersville, New Jersey; Lewis Center and West Chester, Ohio; Beaverton, Oregon; and Georgetown, Texas.

Bonafede as director of commercial business development.

Torie Bonafede

your happenings to libby.johnston@nwfa.org. Get in the news!

To be included in the Business Briefs section of Hardwood Floors magazine, please send

New year, same consistent service

Some things should never change. Like the kind of quality our grandparents knew. Or the kind of service that knows your name. With you, we look forward to a year of growth and new ideas. But that doesn’t mean we’re leaving the good old things behind. • Worldwide shipping • 7 Appalachian hardwoods • Serving the flooring, cabinetry, millwork, and furniture industries • Offering S2S, rip to width, straight-line rip, color-sorting

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BUSINESS BRIEFS

MANUFACTURER MEANDERINGS

Ecore International, manufacturer of QT Sound Insulation, has received a minority growth investment from General Atlantic through the firm’s BeyondNetZero climate growth fund. Kährs Americas announced the addition of Warren Avery as the new business development manager for national accounts. Lauzon has appointed Jean-Philippe Jacques as the company’s new chief financial officer. TANOS, global manufacturer of the

AHF Products ® has named Catherine Del Vecchio as vice president of marketing. AkzoNobel Wood Coatings launched the “It All Adds Up” campaign to raise awareness of the many opportunities and innovative ways that producers of wood products in North America can reduce waste, save energy, and reduce their carbon footprint – as well as improving operational efficiency in the process. Canlak Coatings Inc. has appointed Laura Posadas as its new chief executive officer, succeeding Jim Coccagno.

Warren Avery

Catherine Del Vecchio

Systainer® linkable case systems used by tradespeople to organize and store their tools and work equipment, launched a direct-to-consumer website in the United States.

Jean-Philippe Jacques

Laura Posadas

LP Building Solutions (LP) has expanded its partnership with the Forest Workforce Training Institute, a nonprofit dedicated to developing a skilled workforce for the nation’s forestry and forest products industries. LP Building Solutions (LP) expands its partnership

To be included in the Business Briefs section of Hardwood Floors magazine, please send your happenings to libby.johnston@nwfa.org. Get in the news!

Bjelin has announced a new partnership with Whiteriver Group, which designates the flooring supplier in Ireland as a national distributor for Bjelin’s hardened wood range, Woodura Planks.

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WAKOL Substrate Preparation Program

Great floor installations begin with Superior Subfloor Preparation

Loba-Wakol, LLC is proud to introduce three new products that will elevate your projects to the next level. The WAKOL Z 627 Leveling Compound o ers an ideal smooth finish for a flawless surface, while the WAKOL Z 637 Leveling Compound is excellent for when time is of the essence. For filling and ramping uneven areas, the WAKOL Z 647 Filling / Ramping Compound provides exceptional performance and ease of application. Together, these innovative products deliver the reliability and quality needed to create the perfect foundation for any flooring installation.

Wood Stock

RESOLUTE REPLICA

Sprigg Lynn of Universal Floors in Washington, D.C., has long been a go-to expert for some of the most challenging wood flooring projects in the country. His work spans historic homes, national landmarks, and the White House itself. So, when the White House Historical Association embarked on a project to replicate the Oval Office for their new museum last summer, it was no surprise they called on Lynn to handle the wood flooring.

By Burt Bollinger

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The museum, titled “The People’s House: A White House Experience,” sits at 1700 Pennsylvania Avenue, just across the street from the White House. Its purpose is to offer visitors an experience of stepping into the White House, complete with faithfully replicated rooms, artwork, and, of course, the Oval Office. For Lynn, the project was a natural fit. “We’ve worked for every president since Eisenhower,” he shares. “I’ve worked in the actual Oval Office multiple times, so I’m very familiar with that floor – its design, materials, and even how it has changed over time.” The Oval Office floor itself is iconic, with a pattern of alternating 4” planks of walnut and quartered white oak in the center and a border design in the same woods. “Every piece in the real Oval Office floor is unique because of the shape,” Lynn explains. “With an oval, every angle is slightly different, so each plank has to be specifically cut and labeled for its exact spot. It’s not like a herringbone or chevron where you can swap pieces around – it’s basically a massive jigsaw puzzle.” The complexity went beyond the floor’s design. The new museum floor, made entirely of first grade walnut and white oak, needed to be a flawless replica of the original. Lynn suggested starting the project with a laser-cut template to ensure the room’s walls were built to the precise oval shape required. “With an oval, there’s no room for error,” he says. “If the walls are off, the floor can’t be right.” Despite his recommendation, the contractor declined to use the template, leading to complications later on. “We ended up having to digitally scan the entire room ourselves to prove where the walls were off,” Lynn recalls. “Once we overlaid our scan with theirs, it was clear there were issues. But by that point, we had to adjust the floor to compensate for the uneven walls. It added extra work, but we got it done.”

PHOTOS COURTESY OF SPRIGG LYNN | UNIVERSAL FLOORS

the magazine of the national wood flooring association

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Wood Stock

“We’re fortunate to do what we do. Whether it’s the White House or a local home, it’s about doing the best job possible and honoring the craft. This was one of those one-in-a-million projects, and I’m grateful to have been a part of it.” — Sprigg Lynn, Universal Floors

Even with these challenges, Lynn’s team remained meticulous in their approach. The first step was dry-laying the entire floor to ensure every piece fit perfectly. Adjustments were made as needed before the planks were glued down permanently. “We worked with the contractor to make sure the subfloor was completely flat,” Lynn explains. “If the subfloor isn’t perfect, it can throw off the entire installation.” The installation itself was a multi-day process, with Lynn’s team taking care to protect their work. “When you’re on a big site like this, other trades are always coming and going,” he notes. “We set up barriers, yellow tape, and anything else we could to keep people off the floor. Once the wood is glued down, even one misstep can cause damage. We didn’t leave the jobsite – we ate lunch there and stayed on top of everything.” Sanding and finishing the floor presented its own challenges. The finish needed to mimic the Oval Office’s appearance, which has varied over the years. “The real floor has been finished with wax, oil-based products, and water-based products at different times,” Lynn says. “For this project, we used a tinted water-based finish to replicate the current look of the Oval Office. It dried quickly, which helped us stay on schedule.” The team worked late into the evenings to avoid clashing with other trades. “We came in on a Friday after everyone else had left and worked straight through the weekend to get it done,” he shares. “By Sunday night, the final coat was on.” hardwood floors hardwoodfloorsmag.com 14

Reflecting on the project, Lynn emphasizes the importance of preparation and communication. “Every day, we took notes and documented any deviations from the plan,” he explains. “With big commercial contractors, you can’t rely on verbal agreements – you need everything in writing. If something isn’t right, you have to raise the issue immediately. It’s not about being difficult; it's about protecting the project.” Lynn also stresses the importance of standing firm with contractors. “We’ve been in business for more than 70 years, and we’ve learned that not everyone is fair,” he says. “A lot of big contractors have contracts designed to protect themselves at your expense. It’s critical to set your terms upfront, especially on a project like this where the stakes are so high.” The project ultimately was completed with painstaking attention to detail, down to the last plank. “When you’re working on a floor like this, everyone has to be laser-focused,” Lynn advises. “Even one small mistake can throw off the entire design. That’s why we dry-laid every piece before gluing it down – it’s all about precision.” As Lynn reflects on the project, it’s clear that his deep connection to the Oval Office made all the difference. “I’ve worked on floors for decades, but this one really stands out,” he says. “It’s a privilege to be able to bring a piece of history to life for people who may never set foot in the real Oval Office.” The floor’s durability will be tested as it welcomes countless visitors, but Lynn is confident in its performance. In fact, Universal Floors has committed to maintaining the floor annually, free of charge. “It’s about ensuring it stays as beautiful as the day we finished it,” he says. For Lynn, the project was both a challenge and an honor. “We’re fortunate to do what we do,” he says. “Whether it’s the White House or a local home, it’s about doing the best job possible and honoring the craft. This was one of those one-in-a-million projects, and I’m grateful to have been a part of it.”

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Wood Stock

By Burt Bollinger TERMINAL TRIUMPH A

When Chris Haight of Pure Floors Inc. first learned about renovations at the Portland International Airport, he had no idea of the scope of the project. The plan involved more than 70,000 square feet of custom wood flooring and a vision to make the airport an ode to the Pacific Northwest. For Haight, a second-generation hardwood flooring professional, this was not just another job – it was a chance to work on one of the most innovative airport designs in the country. “All the wood for the flooring needed to be locally sourced, FSC-certified, and sustainably harvested within a 100-mile

radius,” explains Haight. “This wasn’t just about creating a beautiful space; it was about reflecting the identity of Oregon and its relationship with the natural world.” The locally sourced white oak came from Zena Forest Products, a family-owned mill committed to sustainable forestry. The wood was milled into edge-grain (quartersawn) tiles, each measuring 7 1/2” by 15”. The edge-grain design not only offered enhanced stability in the face of Portland’s fluctuating climate, but also aligned with the airport’s seismic engineering requirements. “Edge-grain

PHOTOS COURTESY OF CHRIS HAIGHT | PURE FLOORS INC.

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The renovations at the Portland International Airport involved more than 70,000 square feet of custom wood flooring and a vision to make the airport an ode to the Pacific Northwest, with wood used extensively throughout the terminal – from the flooring to the ceiling beams.

flooring expands and contracts primarily in its thickness, rather than its width, making it more stable,” he says. “That was critical for a project of this scale.” The installation process was no small feat. Coordinating with multiple trades working simultaneously in the new terminal core, Haight and his team had to tackle sections of 1,000 to 1,500 square feet at a time. “We’d get wood delivered three weeks to a month in advance so it could acclimate properly,” recalls Haight. “But space was tight. Sometimes we’d have to move the wood multiple times to keep it out of the way of other trades.” Preparing the subfloor was one of the most labor-intensive aspects of the job. The team implemented moisture mitigation strategies and poured self-leveling concrete across every inch of the hardwood installation area. Once the surface was ready, they used adhesive to install the wood tiles – a process that required extreme precision. “These weren’t your typical

The sanding process posed unique challenges, especially where the wood met other materials. “Most of the hardwood didn’t terminate at a wall,” Haight shares. “Instead, it butted up against other flooring materials. That required an incredible amount of precision to avoid damaging anything during sanding.” The airport’s design is a celebration of the Pacific Northwest, with wood used extensively throughout the terminal – from the flooring to the ceiling beams. “This project wasn’t just about the floor,” Haight says. “It was about creating a space that feels like Oregon, a place where travelers immediately connect with the region’s natural beauty.” Despite the challenges, Haight looks back on the project with pride. “This was one of the most rewarding jobs I’ve ever worked on,” he says. “From the locally sourced wood to the cutting edge design, everything about it felt special. It’s not every day you get to be part of something this meaningful.”

planks,” he says. “Each edge-grain tile was like a mini mosaic, and we had to ensure everything aligned perfectly, especially where the wood met other flooring materials like terrazzo.” The team faced additional challenges where the flooring intersected with the building’s seismic expansion joints. These metal tracks allow the concrete to shift during an earthquake without compromising the structure. Haight’s team had to install wood pieces that fit seamlessly into the tracks, ensuring the design flowed uninterrupted. “It was unlike anything we’d ever done before,” he recalls. “We had to create a system where the wood could move with the building without breaking.” Finishing the floor required careful planning. The team used Pallmann Magic Oil, an environmentally friendly finish that aligned with the project’s sustainability goals. “The finish was a natural fit,” Haight says. “It’s durable, beautiful, and aligns with the ecological vision of the space.”

the magazine of the national wood flooring association

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GOVERNMENT AFFAIRS INDUSTRY INSIGHTS

THE 2025 CONGRESSIONAL LINE UP

TAX This year is shaping up to be historic in the tax space. Tax lobbyists that we attend meetings with are dubbing 2025 as the “Super Bowl of Tax” and “Taxmageddon.” While we anticipated that tackling expired and expiring business tax benefits would be the first item out of the gate next year as part of a budget reconciliation package, it appears that President Trump and Republican leadership are going to first pursue other issues on which he campaigned. Incoming Senate Majority Leader John Thune (R-SD) has announced he would like to see the outlines of a budget reconciliation bill within the first 30 days after Trump takes office. issues to address – some of which are discussed in this article – and maximizing their time in Washington will be essential to make meaningful progress on any of them. As expected, the Congressional calendars for the 119th Congress came out, and based on the number of days that Congress has penciled in to be in Washington, 2025 is looking to be a very busy year. The incoming leadership has identified a number of consequential, challenging policy

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By Dana Lee Cole

benefit that has been phasing out over the last few years and is scheduled to take another 20 percent haircut in January. The plan is to restore 100 percent bonus depreciation back to 100 percent and do so retroactively. The other piece is reviving and extending the research and development (R&D) tax credit. As part of the Tax Cuts and Jobs Act (TCJA), the ability of businesses to fully expense R&D costs in the same year those costs were incurred expired in 2022. Currently, those R&D costs have to be amortized over a five-year period – essentially making investments in your business more expensive. Again, the plan is to restore and extend the full expensing of R&D costs and make the restoration retroactive. Also riding on this second train will be extending the 20 percent tax deduction for S-Corporations and other pass-through tax structures. This benefit also was put in place by the TCJA in an effort to introduce some semblance of tax

According to the leadership staff we have spoken to, the GOP will pursue two distinct reconciliation packages. The first will focus on energy, border security, and military readiness/defense. The second package will focus singularly on tax and extending the business tax benefits enacted by the Tax Cuts and Jobs Act (TCJA). Using the budget reconciliation process circumnavigates the 60-vote threshold in the Senate, meaning that only a simple majority is needed to clear the upper chamber. As Republicans will hold 53 Senate seats in the 119th Congress, these measures are certain to pass, barring any GOP defections. Reconciliation has fairly strict parameters, but often has been used when one party controls both chambers of Congress and the White House. The Hardwood Federation’s priorities in the second reconciliation bill will be restoring the full expensing tax

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Government Affairs (Continued)

Tax lobbyists that we attend meetings with are dubbing 2025 as the “Taxmageddon." While we anticipated that tackling expired and expiring business tax benefits would be the first item out of the gate next year as part of a budget reconciliation package, it appears that President Trump and Republican leadership are going to first pursue other issues on which he campaigned.

SUPER BOWL OF TAX

TRADE The president’s campaign rhetoric over the last year or so has been consistent on the international trade front. He has vowed to get tough with our trading partners and rely heavily on his favorite tool to level the international playing field – tariffs. As we are all painfully aware, the hardwood industry was dealt a devastating blow during the first Trump Administration when China imposed retaliatory tariffs on our hardwood products destined for markets there. The effect of these tariffs was felt literally overnight as export demand dropped off the table. The Hardwood Federation team, working with our executive committee, has been in frequent talks since the election on ways to prepare for a tariff war should one materialize. It is difficult to ascertain at this point whether the president is using the threat of tariffs simply to bring our trading partners to the negotiating table or if he is preparing to impose tariffs on China, Mexico, Canada, and European Union countries. We are preparing for the latter and are in the process of communicating with the transition team and key members of Congress about the devastating effects tariffs would have on our sector. We will keep you regularly apprised of developments in this space and call on you to help us with our advocacy efforts should the tariff threat become a reality. There will, of course, be many other policy issues that surface next year, but these three are top of mind for the Hardwood Federation and the ones for which we are preparing. As always, the Hardwood Federation team is here and engaged and will communicate developments regularly as the Congressional and new administration’s agenda takes shape. Dana Lee Cole is the executive director at the Hardwood Federation, a Washington, D.C.-based hardwood industry trade association that represents thousands of hardwood businesses in every state in the United States and acts as the industry advocacy voice on Capitol Hill. She can be reached at dana.cole@hardwoodfederation.com.

parity between the rate larger C corporations negotiated and that which is assessed to smaller Main Street businesses. Unfortunately, this benefit expires at the end of 2025. The Hardwood Federation team will work with our allies in the business community and Congress to ensure this deduction is carried forward. FARM BILL The politics simply did not align between Democrats and Republicans in 2024 on a Farm Bill rewrite. However, during the Lame Duck session of Congress in November and December, the current Farm Bill was extended for one year. We anticipate that 2025 leadership on both the Agriculture Committees will yield different results in the new Congress. Senator Amy Klobuchar (D-MN) will be new in the Ranking Member slot on the Senate Agriculture, Nutrition and Forestry Committee. She and incoming Chairman John Boozman (R-AR) have a good working relationship, and both have proven to be champions on key issues in the forestry and forest products sectors. In the House, Chairman GT Thompson (R-PA) will continue as chairman; Rep. Angie Craig (D-MN) has stepped up to Rep. David Scott (D-GA). While a new Farm Bill was not enacted in 2024, it was not an “all for naught” exercise. Many provisions surfaced in the House and Senate Farm Bill proposals were positive, including legislative language that would have doubled funding for the Market Access and Foreign Market Development Programs. Legislators also showed their support for grant programs at the Department of Agriculture that incentivize innovative wood product manufacturing and renewable heat and power projects that provide offtake for our sawmill residuals. The House Agriculture Committee-passed bill also includes forestry and forest products workforce development provisions that will help enhance the supply of trained employees who can work in our sawmills. The Hardwood Federation advocacy team looks to build on this progress, and we remain optimistic that a new Farm Bill will be signed into law sometime this year.

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INDUSTRY INSIGHTS

MARKET MATTERS

UNCERTAINTY Regarding Incoming Policies The U.S. economy generally is performing well, with gross domestic product (GDP) growth in Q3/2024 at 2.8 percent over the same period in 2023. Consumer spending and real disposable personal income both are growing at acceptable levels. But looking past these figures, we find a more ominous situation.

Much of the spending and income growth is occurring among upper-income, skilled households. Inflation is not a factor for approximately a third of the population these households represent, and they are little impeded by rising prices and high interest rates. The rest of the households are being squeezed by rising costs for necessities, forced to endure personal budget constraints, and to prioritize spending. A huge uncertainty regarding the U.S. economy is to what extent and impact the Trump policies will have. This forecast is based on the assumption that the Trump Administration will be more aggressive and business oriented in their approach. However, the degree and scope of the actual policies to be implemented remain a mystery in their details.

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By Santo Torcivia

• To the extent that tariffs are used successfully as a tool to open markets to U.S. exports and incentivize on-shoring of production plants, the U.S. should see a rise in manufacturing jobs and a rise in the middle-class. On the downside, it will cause import prices to rise on nations covered by tariffs, contributing to inflation. U.S. real GDP growth will match growth closely in the prior year. Economic growth is forecasted to fall slightly in 2025 and remain flat in 2026 as the economy adjusts to lowering interest rates before returning to trend growth (+2 percent) in 2027. The scope of the stated policies of the Trump Administration could have a major impact, either positive or negative, on the U.S. economy. The Federal Reserve has pulled down the rate of inflation and, lacking any unforeseen situation, finally should return inflation to a manageable annual growth rate of slightly above 3 percent. The Fed’s target rate for inflation is 2 percent.

CONCERNS REGARDING THE CURRENT STATE OF THE U.S. ECONOMY: • Inflation growth has slowed due to Federal Reserve rate hikes, declining energy prices, and supply chain improvements. Even so, commodity prices currently are 26 percent above their levels in 2019, and these costs are draining consumers’ purchasing power. The overall inflation rate, as measured by the Consumer Price Index, was 4.1 percent in 2023 and should average 2.9 percent in 2024, falling to 2.3 percent in 2025. Prices almost never fall (that would be deflation, a generally onerous state of economic affairs), the rate of growth merely slows. Therefore, past price increases are very much a part of all current commodity prices. • Federal spending in fiscal 2024 will be $6.9 trillion. Since 2019, $12.5 trillion has been added to the outstanding federal debt, which now stands at $35 trillion. Total nominal GDP in 2023, representing the value of all the goods and services produced in the U.S. that year, was $27.7 trillion. The outstanding deficit now represents 126 percent of U.S. GDP in 2023. • Given that interest rates are linked closely to inflation, the U.S. bank prime rate remains elevated and only falling slowly. It is expected that the prime rate will fall to 7.08 percent in 2025.

Market Matters (Continued)

This is a summary of the December 2024 Quarterly Market Monitor Report published by Market Insights LLC. NWFA members have exclusive access to the full report, which provides forecasts and analysis of economic, market, and industry conditions and trends affecting the North American flooring market. The report includes a historical and forecasted volume of dollar sales of total wood flooring (at mill sell price) per metro area and state. Separate reports are available for the United States and for Canada. The availability of the reports on a quarterly basis will provide NWFA members with current data that can help them develop business plans, prioritize inventory, and react to market conditions in a timely manner. NWFA members may download the full report by visiting nwfa.org. Santo Torcivia is president of Market Insights LLC in Reading, Pennsylvania. He can be reached at 610.927.2299 or storcivia@marketinsightsllc.com. saps consumer spending power and reorders the purchasing priorities of affected households. • Deficit spending will weaken the U.S. dollar by increasing the money stock, raising the federal debt, and put upward pressure on inflation. • Federal debt will continue to rise, and payments on this rising debt will absorb more of the federal budget if action to reverse this trend is not undertaken. • Slowing employment growth will stymie economic growth. In 2023, 25 percent of hiring was by government and 39 percent by quasi-government education and health care sectors, leaving 36 percent new jobs. • Other potential threats to the U.S. economy include a widening war in Ukraine or the Middle East, new conflicts in Taiwan, the Persian Gulf, or other areas; a major domestic civil disturbance; another global pandemic; a major trade war threatening prices and logistical trains; or other catastrophe. • Inflation will continue to be an issue among key commodities for many families. Inflation • Election results have Republicans controlling the House, the Senate, and the White House, and they are planning to enact sweeping changes to the government. Trump’s plans include the creation of a new Department of Government Efficiency (DOGE), which will be responsible for streamlining the government, eliminating regulations, and saving $2 trillion in federal government costs. FACTORS THREATENING THE U.S. ECONOMY:

U.S. INFLATION AND PRIME RATE

% change in the consumer price index and average prime interest rate.

KEY ASSUMPTIONS AND ISSUES AFFECTING THE U.S. ECONOMY:

• Housing starts currently are above 1.35 million units annually and will continue to aid economic growth through 2029, with starts averaging 1.5 million units. Starts increasingly favor single-family units (70 percent of total starts), which average 50 percent greater floor area over multi-family units. Housing construction is getting a push from builder incentives, baby-boomer downsizing with generally considerable equity to offset higher home prices and interest rates, and investment firms financing single-family homes built for rent. • Residential home improvements will grow in the second half of 2025, growing at a moderate clip throughout the forecast period as households unwilling to sell their current low-interest financed homes in desirable neighborhoods remodel their residences. • Consumer spending is slowing as many consumers’ finances are being stretched by inflation, rising debt levels, and slowing employment growth. • Real personal disposable income will grow at an inflation-adjusted annual rate of 2 percent or greater through 2028, largely driven by moderate growth in skilled and technical worker employment increases and wage growth. Income growth will endure headwinds resulting from weak employment growth due to automation and a decline in unskilled labor jobs through 2029. • Non-residential building construction will grow throughout the forecast period, especially for education, transportation facilities, health care, lodgings, and institutional building types. Conversely, office, religious, amusement and recreation, and retail building construction, except for retail warehouses, will decline slightly.

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SPECIAL CONTENT INDUSTRY INSIGHTS

Real Wood OVER LOOKALIKES Missouri Campaign Fights for

The domestic wood industry faces challenges on all sides. From fake wood lookalike sales skyrocketing to rampant misinformation about forest management, it feels difficult to break even in an industry older than the United States.

However, Missouri has found a foothold. In July 2023, the Missouri State Legislature created a new “Missouri Hardwood Forest Product Promotion Fund.” The Missouri Forest Products Association (MFPA) used those funds to raise awareness of real wood. MFPA hired St. Louis based Chemistry PR & Multimedia to help. Together, we launched the ChooseWood campaign.

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By Sydney Jones

Connor Tollison and Voice of the Kansas City Chiefs Mitch Holthus. We ran radio ads during Chiefs and Tigers games. To reach less-accessible audiences, MFPA used outside-the-box thinking. We offered programs in Missouri schools, like: “The Truth About Trees” curriculum kit; “The Marvelous Magical Tree Show” performances; and giant Jenga kits made from Missouri wood species. We helped launch a children’s book, Little Tree in a Big Forest, at The

In 2023, MFPA hacked away at persistent myths, like: • Real wood is hard to maintain. (Not true! You can re-finish/ re-stain real wood, while you can only replace damaged fake-wood lookalikes.) • Real wood isn’t worth the cost. (What?! Ask any Realtor about ROI on wood floors, and you’ll find this myth goes up in sawdust.) • The lumber industry destroys forests. (Just the opposite! Timber is a crop that needs thoughtful harvesting like any other. Proper harvesting sustains forests for the long term.) How did the ChooseWood campaign combat these misconceptions, and how can you do the same? MFPA started with research, from empirical data to real conversations with industry members. We developed campaign foundations: audiences, messages, media lists, a website, social media initiatives, and a statewide billboard campaign. We crafted educational and promotional videos featuring industry members and took advantage of Missouri’s sports fandoms by producing videos with University of Missouri Tigers football player

Magic House in St. Louis. We’ll reach big kids, too. In 2025, our real-life superhero, Jack Lumber, Forest Responder, will make personal appearances.

PHOTOS COURTESY OF MISSOURI FOREST PRODUCTS ASSOCIATION

the magazine of the national wood flooring association

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Special Content (Continued)

ChooseWood has seen great success so far, and we aren’t finished. Neither are you. You know the industry and its challenges. You know what it means to countless people across the United States. Use your passion for the industry to advocate for it: connect with other industry members, share stories on social media, and implement your own campaigns.

To correct the environmental record,

MFPA sponsored a carbon report from the University of Missouri School of Natural Resources,

Wood also has neuroaesthetics, which means it calms our brains. Individuals who are neurodivergent – those with ADHD, anxiety, etc. – find real wood especially soothing. Cutting-edge designers have begun to embrace this fact. Thinning forests makes good sense and good business. Managed forests grow healthier, absorb more carbon, and yield more wood products that make our lives better. ChooseWood has seen great success so far, and we aren’t finished. Neither are you. You know the industry and its challenges. You know what it means to countless people across the United States. Use your passion for the industry to advocate for it: connect with other industry members, share stories on social media, and implement your own campaigns. Don’t know where to start? Read this article again or reach out to us. When ChooseWood benefits, real wood benefits. Sydney Jones is an account manager for Chemistry PR & Multimedia in St. Louis, Missouri. For more information on the ChooseWood campaign and how to promote real wood, contact sydney@chemistrymultimedia.com.

confirming real wood captures carbon better than any other building material. We feared even environmental

reporters might not read a long report, so we turned the key findings into an innovative board game, GREENHOUSE GUESSES: What’s Your Carbon IQ?. MFPA launched a Digital Asset Management (DAM) system, an online archive of license-free photos and videos anyone in the industry can use for promotional purposes. To date, MFPA’s efforts have reached more than 166 million people and counting. In 2025, we are targeting more key audiences with sway on consumer choices: architects, designers, and distributors. Our goal is to reach consumers directly and educate those who build their homes, install their floors, and choose their furniture. To tailor that messaging, we’re using what we already know. Real wood is healthier, more durable, and more beautiful than fake wood alternatives. Forest management and the wood flooring industry need each other: the wood industry needs healthy forests to exist, and healthy forests need folks to manage them. We also are adjusting messaging for new audiences. Wood lasts longer. This makes it a better long-term investment for home buyers, delivering higher Joy Scores and ROI.

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