The American Lumber Standard first published a standard for lumber in 1924 which delineated lumber sizes and assigned design value methods, classification, inspection procedures, the National Grading Rule, an accreditation program, and other specified functions. It was the first foray into such guidelines, and it then took nearly 20 years to create an agency to oversee the standardization, certification, and accreditation for softwood lumber. It took ten more years to finalize the Board of Review for the American Lumber Standard Committee (ALSC).
We all know that change does not happen quickly in this industry. Fast forward to the 21st century when guidelines for regulating wood products are still being defined without a standardized definition for the word “Premium.” Established regulations are committed to making mills label what they produce and deliver for its strength, but those DO NOT account for how the lumber looks. The Premium “standard” is created by the seller and adds appearance characteristics on top of the grade for strength.
So how did Premier happen?
The answer to how it happened is obviously MONEY. When sellers began noticing that customers would pay more for visually attractive wood over the less eye-catching but equally strong pieces, “Premium” was born. Sellers saw a niche for this seemingly uppity, superior wood…all based on verbiage without tangible specifics. And there have been so many words aside from Premium used along the way to mimic this fashion: Home Center, Select, Highline, High-Quality, Special, Superior. These adjectives, by and large, are illusions.
For the most part, the solution is always to offer whatever the client wants. However, the lack of transparency in the actual characteristics and restrictions that each producer uses creates a market of apples and oranges. Without a public standard that defines “Premium,” knowing what each mill’s wood really looks like and assessing the value of a market price is very challenging.
MaterialsXchange (MX), a digital marketplace to buy and sell lumber products, is not afraid of change. MX is transforming that flimsy definition of premium with a well-defined category that we call MX Premium Grade. Sellers who have lumber and buyers who want lumber that meets or exceeds our published characteristics and restrictions can use this category with confidence. To achieve the category of MX Premium Grade, lumber must be virtually wane-free, high-quality sticks. With our detailed restrictions, producers can list their “Premium” on MX in the MX Premium Grade category, after they have confirmed that it meets all of our prerequisites. One cannot be fooled by merely narrative; our standards are tough because they have to be. In order to motivate change, one has to generate change.
Mike Wisnefski is CEO of MaterialsXchange, an electronic B2B marketplace for buying and selling raw materials, including lumber, OSB, and plywood. MX brings price transparency, efficiency, and a streamlined payment process to the building materials industry. Users are connected digitally in real-time with instantaneous interactions and shipments are available by road or rail.