Holzhaus 2012 Show Report

Posted by Rumin Mann
November 27th, 2012

BC Wood recently participated in Holzhaus 2012 in Moscow, Russia.  This return to the market was based upon the success from attending the show in 2011.  During that initial visit, it became clear to manufacturers that this large (audience base) and geographically expansive marketplace has considerable opportunity for sales of member products.  Successful sales contracts have been secured by members who have already participated in this program, with market indicators suggesting further growth in this area will be realized in the years (next 24 months) to come.

Holzhaus 2012

This trade show is one of the many construction industry exhibitions held in the Moscow area each year.  This show focuses primarily on wood framed housing and features 90% local products.  While the exhibition hall was dominated by local manufacturers of Siberian pine products, the presence of our BC Wood pavilion drew considerable attention from the show attendees. Local laminated log products and large diameter (Pine) handcrafted products featured heavily in the show. BC Wood showcased five member companies in the pavilion and featured a diverse range of products from handcrafted, machine cut log homes to specialty western red cedar products.  The show attendance was down on last year due in part to an overlap of construction exhibitions taking place on the same dates; however, members were able to reach a good cross section of the construction audience.  Although this show was billed as a business to business show, there were examples of consumers in attendance who were visiting the show with plans and construction projects in hand.  As a group, BC Wood members were able to gather qualified show leads and also make crucial introductions to key industry partners who showed interest in representing BC’s manufacturers.  The Canadian Embassy once again hosted a meet-and-greet event that enabled members to interact with some of Moscow’s prominent construction companies and prospective partners.

Last year, we reported that the market opportunity for members was in Log and Timber Frame products along with speciality WRC products.  This is certainly the case and I would add that there is a niche opportunity for remanufactured products sector as well as the millwork sector.  Below are some market observations that should enable BC companies to increase market share in this area.

Resort Projects Growing

Value added manufacturers could reap the benefits of a recently announced $18 billion plan for seven ski resorts scattered throughout the mountains and three beach developments costing $4.6 billion on the coastal regions of Russia.

Sochi 2014 Winter Olympics

The upcoming 2014 Winter Olympics being held in Sochi on the coast of Russia will generate interest from global partners in construction.  A well run Olympics could showcase the Black Sea coast area as a viable location for further investment in housing and resort style construction projects.

Government Incentives

With the Russian Government launching multiple national construction sector projects, it is not an exaggeration to say that wood is a material that is being embraced by industry professionals who are involved in local construction planning.   With the congestion of inner Moscow seemingly increasing since our visit 12 months ago, the support for wood framed construction projects on the outskirts of Moscow appears to be favourable. Russian leaders, from Vladimir Putin on down, support increased tourism and have allotted Government funds to provide incentive to developers in Russia’s huge geographic area.

Next steps

Economic development is going to increase in this market. To capture the opportunity and turn this into sales for you, the manufacturer, you will need to find the right partner in Russia. There are companies and prospective partners ready to connect with BC Wood members.  Participation at upcoming BC Wood 2013-2014 market development activities will ensure you meet qualified industry members who are both willing and able to form joint venture and long term partnerships.  For more information on this show or if you wish to engage in market development in this area please contact bhawrysh@bcwood.com.

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