Because of Dick’s vision, Neville Log Homes produces logs that have opened up space and light in the traditional dark, square buildings that our pioneers constructed. Now, log buildings can be aesthetically pleasing, while still maintaining structural integrity. Neville’s can incorporate full-log dormers and gables – something traditional crafting methods do not provide. As well, their product eliminates the butt-joints that are still found in structures built by traditional log crafters. Neville’s patented THE LONG LOG ADVANTAGE® results in homes that are energy efficient and structurally sound.

Another benefit of a Neville Log Home is less shrinkage due to the fact that they use only dry standing timber. This environmentally-conscious procedure also makes use of beetle-killed spruce and pine trees – a product that B.C. has an unhealthy overabundance of!

The machined logs are grooved and notched according to the house plans. The final touch is added last by hand-peeling, which gives the logs the rustic look desired by most log home enthusiasts. These features, plus their outstanding customer service, help to give this family-run business a solid place in a growing industry.

Neville Log Homes has been producing log home packages in Montana for over two decades, using B.C. timber to form their logs. In 2001, they decided to form a Canadian corporation and purchased raw land in Kamloops, B.C. They then began to build a new mill from the ground-up, and this started production at the end of 2001. The second part of their plan was to construct an impressive Show Home located on the East Trans Canada Highway, just east of Kamloops City center. The Show Home also serves as the office for Neville Canada, and staff moved in at the beginning of February this year. In keeping with the traditional Neville hospitality, a warm invitation is extended to anyone to stop by for a visit, with the reminder that "the coffee’s always on!"

Neville Canada sells to the Canadian and overseas markets. When they were looking to open up this facility, Neville Log Homes received help from Venture Kamloops, a tourism and economic development society. "Venture Kamloops helped us source government programs for wage and financial assistance, as well as directed us to other organizations that would be able to help us," comments Neville sales consultant, Mike Applegath. "They recognize the challenges that start-up businesses in Kamloops face, are sympathetic to these needs, and do what they can to help alleviate the stress of the situation. They have the ability to provide a business with a cost-savings program and help make the transition easier for them."

The Kamloops operation currently employs between 20 to 30 people, but as they increase their marketing efforts, they plan to increase employment for anywhere up to 60 – 100 employees. "We are very much on schedule according to our business plan," comments Mike. "The first year we opened the plant we built six homes, the second year we built 15 homes, and the third year we built over 50 homes. For 2004, we plan to build 80 homes."

Neville Log Homes has been a BC Wood member for the past three years and appreciates what BC Wood has done for the secondary wood products industry in British Columbia. They participate in BC sponsored events, such as sending company information and brochures to Korea’s Homdex show at a cost much lower that travelling to the market themselves. "Through BC Wood’s research and experience in export markets, they are extremely helpful as a starting point for any wood manufacturing business in BC looking to enter a new market. By helping members source new customers in international markets, BC Wood is generating additional profit for BC’s economy by bringing in money from other countries. This is extremely valuable to BC’s economy and their services are integral to BC secondary wood product manufacturers growth," Mike observes.

Neville Log Homes also works with other industries in their community to construct, finish, and furnish their customers’ new homes. Since these decisions are up to the customer, Neville makes recommendations and will usually supply names of local sources wherever possible. Neville’s also host an extensive web site at www.nevilogcanada.com. Everything from house plans to a map on how to find the new Show Home are included, as well as a large selection of photographs of Neville homes under construction, and those that are fully completed and furnished.

March Madness in Japan
Jim Ivanoff, Japan Program Manager

With two major tradeshows and a BC Wood trade mission, March proved to be an exciting month for the Japan office. Kicking things off, the Nikkei Architectural and Construction Materials Show, which ran from March 2-5, 2004, is an annual event that is widely known as the second largest building tradeshow in Japan after the Japan Home Show. However, this year’s Nikkei Show wowed all of the participating members beyond their expectations.

What got our members talking was not just that attendance figures were up by over 2% to 208,017, but that the attendees they were meeting with were very serious about doing business. Several of our exhibitors reported that they met more than double the number of serious customers at the Nikkei Show compared to last year’s Japan Home Show. BC Wood’s own booth saw similar results, as we gave out more than double the amount of brochures than at the Japan Home Show.

These results were somewhat surprising as the Nikkei Show numbers are usually less than those of the Japan Home Show. However, considering that positive economic figures have been dominating the Japanese headlines lately, it shouldn’t be a revelation that builders and architects were more bullish about future prospects in their own industry. Another good sign that consumers are starting to get into the spending mood is that travel reservations for foreign destinations during "Golden Week" (Japan’s national holiday week during the first week of May) are already nearly double last year’s numbers and up by a third for the domestic side. While some of this increase can be attributed to lessening concerns about SARS in foreign countries, the Japanese are definitely feeling more confident about their country’s economic prospects, and therefore, are willing to make purchases that they had been putting off.

Another reason for the success of the Nikkei Show is that its organizers have been working hard widely promoting the show to make it the leading construction related tradeshow in Japan (Nikkei, the show’s organizer, is Japan’s leading business publishing group). Aside from the great results from this year’s show, many Japanese industry people took note of the number of big domestic players that exhibited at the Nikkei Show, but not at the Japan Home Show. This is something that we will have to keep in mind for future years, especially since our foreign competitors are still mainly focused ONLY on the Japan Home Show.

Immediately following the Nikkei Show, BC Wood carried out a trade mission for Western Red Cedar (WRC) products. The mission consisted of company visits in the greater Tokyo area (the Kanto region) and in Sapporo. Visits included stops at homes finished with WRC, where our members were able to speak to the architects about why they used WRC, what the difficulties they faced in using it were, what kind of products they were looking for, etc.

During separate visits, our members also got to ask these kinds of questions to the major Japanese importers of WRC. The importers were able to give us a wider perspective on the WRC market and the challenges it faced from competing species. The main message our members received from the importers was that in order to be more successful in Japan, they had to offer the same level of quality, price, and size availability as the Europeans, as well as introduce interesting new WRC products. Such products could be consumer oriented and geared for the DIY (home centre) market. We also took our members to see several of Japan’s leading DIY stores so that they could see the full range of outdoor garden furniture, structures, decking, lattice, etc. for themselves. Many were surprised by the high price and poor quality of Chinese products.

The mission also incorporated two seminars, one in Tokyo and one in Sapporo. BC Wood had a respected Japanese architect, with a long history of using WRC in his projects, give a presentation on all of the exciting possible applications of WRC. After he captivated the audience about the possibilities for using WRC, we introduced our members and then let them meet with the guests one-on-one in a mini tradeshow setting. Not only did the seminars attract a great number of guests, 35 in Tokyo and 60 in Sapporo, but reporters from industry newspapers also found great material to write about WRC and our mission.

After the mission participants returned to Canada, I brushed off the BC Wood booth for one more tradeshow, this time in Kyushu (southern Japan). The Total Living Show has been the major show in southern Japan for many years, but unfortunately had been in decline for the past few. Once again possibly reflecting the better economic atmosphere, this year’s show regained some of its past glory and turned out to be a great opportunity for BC Wood to interact with clients in southern Japan. Many eagerly asked for more information about BC Wood members and we expect many of these inquiries to turn into solid leads.

March turned out to be a very busy month for BC Wood’s Japan office, but both the positive feedback from our mission participants and the positive reactions of Japanese clients made it extremely rewarding. We hope to use the building economic momentum in Japan to launch even more successful programs for the new fiscal year ahead of us. I hope to see many more of our members taking advantage of these opportunities in Japan next year!

For more news on the Japanese market, check out the Japan section of the Members Only site.

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European Market Report
Ludger Spohr, Director EU Program, BC Wood

On February 26, 2004, the Ecole supérieure du bois, Atlanbois, Canadian Embassy, Q-Web, CMHC, CWC, and the Manufactured Housing Association of Canada partnered together for a session on promoting the use of wood construction in France. This event, held in Nantes, France, was the first of its kind in the Pays de la Loire region. Over 120 participants were in attendance, including builders, projects managers, and official representatives. 75% of the attendees were well-respected architects. I was invited to conduct a presentation about Canadian wood species and their possible applications. The event proved to be an excellent compliment to the Salon Maison Bois show in Angers, as it discussed technical details, design and facts of building with wood, while the event showcased building with wood. It was well received by all participants, who walked away with a large amount of valuable information.

We have also just completed the show Bois & Habitat in Namur, Belgium, held March 19-22, 2004. This show, which specializes in building with wood, takes place only two weeks after a huge building show in Brussels, but still has growing success. As the city of Namur is in the south of Belgium, France and Germany are both less than 100km away. This explains why much of the interest came from projects for French customers or for Belgians building in France.

This year, Canada was the hosting country of the event and we had a 235m² Canadian pavilion. At the opening of the event, Prince Laurent of Belgium, the Canadian Ambassador, and the Quebec Delegate had a cocktail reception at our pavilion. The concept of a country pavilion is a great instrument to create visibility for small and medium sized companies and exhibitors benefit from the positive image Canada has in Western Europe. Twelve Canadian companies and six associations and government institutions displayed their products and services in the Canadian pavilion. This common space offered great visibility for visitors and created credibility for the exhibitors. The feedback from the exhibitors was very positive, although the Belgian market is still a step behind the French market as they do not automatically link "building with wood" with a log home or a secondary home just yet.

Upcoming shows in Europe are SAM in France (Grenoble in the Alp region), Interbuild in Birmingham (UK) and Carrefour International du Bois in France. The last show is the most important professional wood products show in France, which any value added manufacturer should at least come and visit. The show is held June 2-4, 2004, which still gives you time to plan.

Hope to see you soon in Europe!

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Associate Member Spotlight: Colliers International

Colliers International is one of Vancouver’s leading commercial real estate brokerage firms, proudly tracing its roots back to 1898. Since inception, Colliers has been a pioneer in the international expansion of the real estate services industry.

Today, Colliers International has 17 offices in Canada and 231 offices internationally. Despite the wide spanning global network, Colliers continues to be an employee-controlled company. Colliers is the market leader on a national basis in Canada, and is the regional leader in Asia Pacific, Latin America (through partnerships in Mexico, Brazil, Colombia and Peru) and Central Europe.

Our success is based on the ‘value-added’ that we continue to bring to our clients through the quality and achievements of our industry professionals. We are committed to service excellence and believe that we need to deliver measurable, value-oriented services to our clients.

The Colliers International philosophy is to develop and support market experts; specialists who possess the knowledge and expertise our clients require and deserve. Working as a team, Colliers professionals truly have the ability to respond to any type of commercial real estate requirement, no matter how large or small, any place in the world. We are able to provide instant access to local expertise in literally every major market across the globe. Across borders, cultures and time zones, Colliers International specialists offer seamless, first class service and performance, regardless of the size or type of requirement.

Our experts understand more than just real estate; they understand the role that real estate plays within the operations and industries that they serve, and that facility costs are one of the most significant overhead costs within a value-added wood manufacturing operation. Members of Colliers’ Industrial Group have carried out more transactions in the manufacturing and value-added wood sector than any of its competitors. We attribute this to our commitment to serving the needs of our customers. Services that our group have been able to provide include the identification and execution of:

• Facility lease transactions;
• Build-to-suit (for lease) and design-build options (for ownership);
• Land acquisition and disposition;
• Appraisal and consultancy; and,
• Valuation & research

Colliers International is proud and honoured to be a member of the BC Wood Association. Membership will enable all of the Colliers team to further develop its industry knowledge and expertise, the end result benefiting and contributing to the growth and success of BC’s value added wood industry.

Contact Information:

Call Malcolm Earle, Industrial Specialist at 604.681.4111 or email malcolm.earle@colliers.com. You can also view our website at www.colliersmn.com.

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Got Something to Say?

If you have any questions, comments, or would like to contribute to BC Wood News On-line, please contact
Mary Quinn at:

BC Wood
#200 - 9292, 200^th Street
Langley, BC
Phone: (604) 882-7100
Fax: (604) 882-7300
Toll Free: 1-877-422-9663
or email mquinn@bcwood.com

This passion began while she was studying Interior Coordination at Chuo Jitsumu Vocational College in Osaka, Japan. After receiving her Associate Arts degree, she worked for a 2x4 home builder in Tokyo where she gained experience in interior coordination and site management. Having worked with 2x4 homes, Miho decided that she wanted to further study North American home designs so she enrolled in Phoenix College’s Applied Studies of Interior Design Program. This not only allowed her to study American interior design, but also to perfect her English abilities.

With an American education under her belt, Miho was able to find work in the U.S. as an assistant interior designer in Phoenix, and then later as a sales coordinator/interior designer at a consolidator based in Washington State. During her time in America, she was also an Allied Member of the American Society of Interior Designers. Unfortunately, her return to Japan happened to come just as the Japanese housing market fell off in the late 90’s. Therefore, Miho took up a new challenge as an English-Japanese translation coordinator.

Now with the Japanese market picking up again and her new position at BC Wood, Miho is very excited about getting back into the field that she loves. BC Wood is very fortunate to have someone with Miho’s background and passion for the building products industry. I look forward to working with her to find exciting new opportunities for BC Wood members and new ways to promote BC’s wood industry to the Japanese market.

What’s New in The Members Only Section of the BC Wood Website
Mary Quinn, Member Services Marketing Coordinator

As promised last month, we are making some new additions and changes to the BC Wood Members Only website. Under the Marketing Tools area you will now find marketing plan templates for each value-added sector that BC Wood members represent. By selecting your sector from the main page, you can now download information on each step with advice and comments written by sector industry experts.

In addition, we have also started a new area under the Marketing Tools section called Marketing Articles. Our first article, by Associate Member, John Kenmuir, is on Market Research. His article is also included in this issue of News On-line.

Last month, I mentioned that we would be developing an updated and expanded version of the Members Exchange. Please send an email to mquinn@bcwood.com if you would like to post any information on the following topics:

• Machine Capacity
• Equipment for Sale/Buy
• Product for Sale/Buy
• Job Search
• Announcements

Stay tuned for more additions next month!

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The UK Gets Ready for Interbuild
Helen Bicknell, UK In-Market Representative

BC Wood will be attending Interbuild this year as part of the Canada Wood Pavilion. The event will take place from April 25-29, 2004 at the National Exhibition Centre in Birmingham. Interbuild is considered to be one of the biggest events in the UK construction industry with over 50,000 expected visitors and 1500 exhibitors. This five-day show attracts builders, engineers, architects, designers and specifiers - all with decision making and purchasing power.

Canada Wood has taken a 144m² space adjacent to the Team Canada showcase stand organized by the High Commission in London. The floor area will include BC Wood, CanPly, FPAC, WRCEA and QWEB. BC Wood will be taking 33m² of space and have been instrumental in organizing (with Natural Resources Canada) the ‘look and feel’ of the entire area.

Two Canadian side events, which will take place during the Interbuild show, have also been arranged. First, a breakfast briefing, co-hosted by the Government of Québec and the Canadian High Commission, will take place before the show for exhibitors. The keynote speaker, Mr. Chris Ashworth from Competitive Advantage (www.cadvantage.co.uk), will provide a brief overview on the UK market and then focus his presentation on distribution channels for both housing and building products in the UK.

A networking reception, sponsored by the Government of Québec, Ontario Exports Inc., and the Canadian High Commission, will also be held on behalf of all Canadian exhibitors at Interbuild. Approximately 150-200 guests will be drawn from industry, media and other key stakeholders in the UK construction industry. The event will be held at the Canada Showcase and throughout the Canadian Pavilion at Interbuild.

As the Canadian High Commission will be taking the lead on public relations and advertising to announce Canada’s presence at the show, a great deal of excitement is expected before the event. A public relations agency has also been recruited and they will provide both pre and post event PR, targeting all trade publications interested in the event.

Please watch this space for an exciting review in May on how the show went. If you are interested in attending any other exhibitions in the UK calendar, please do not hesitate to contact me at helen.bicknell@canadawooduk.org.

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New Skeena and Westex Announce Sale of Kitwanga Lumber Company

On December 12, 2003, New Skeena Forest Products Inc. and Westex Alberta Ltd. announced the signing of a definitive agreement under which Westex will buy all the assets of Kitwanga Lumber Company Ltd., a wholly owned subsidiary of New Skeena. The transaction closed earlier this year. The agreement includes a chip purchase agreement and a log purchase agreement between the two parties.

To see the full press releases, go to the BC Wood website and follow the links to Media, Industry News Releases.

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Welcome New BC Wood Members

We are pleased to welcome the following new BC Wood Members who have joined us since February 1, 2003:

Cowichan Lumber Ltd., North Vancouver - Remanufactured Products (semi-finished)

Goldwood Industries Ltd., Richmond - Remanufactured Products (semi-finished)

Olympic Industries Inc., North Vancouver - Remanufactured Products (semi-finished)

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New BC Wood Associate Members

We are pleased to welcome the following Associate Members who have joined us since the last issue of BC Wood News On-line. If you are interested in learning about the benefits of becoming a BC Wood Associate Member, please contact Randi Walker at 604.882.7100 or toll-free at 1.877.422.9663.

A Private Health Services Plan (PHSP) is an excellent alternative or enhancement to traditional health care coverage. Based on federal legislation, our program is an inexpensive and uncomplicated means of handling health related expenditures without paying insurance premiums.

Glenn Rousseau
(250) 878-9651

Credit insurance policies protect insured companies against unexpected losses arising from a customer insolvency or non-payment. Founded in 1995, MILLENNIUM is Canada’s leading specialist trade credit and political risk insurance broker. We work with all of the major credit insurers, including Export Development Canada.

Contact us today to learn how MILLENNIUM can help your business grow profitability.

Greg Harder
(604) 669-7821

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Market Research - Homework With a Big Time Payback
John D. Kenmuir, CMC

Having recently joined BC Wood as an Associate Member, I was pleased to be asked to write a regular column in this newsletter. In this and future installments, I’ll try and strike a balance between over-simplification and "consultant speak" as I review topics which I hope will be of practical benefit to BC Wood members. Since good marketing and product strategy is based on sound due diligence, I thought a brief look at marketing research would be a logical start to the broad topic of marketing. I welcome your comments and questions. You’ll find my contact information at the end of this column.

When to Research
New product introduction, increased competition, market expansion, waning sales - there are literally hundreds of reasons to undertake marketing research but I’ll concentrate on some of the more common issues that I’ve probed for the lumber and wood products sectors. You’re likely all familiar with and refer to market measurements which can cover off size of market, price and growth trends and projections, market share of product types within a category, etc. Much of this information is published in trade magazines or can be bought off the shelf, but getting down to the micro and dealing more specifically with your product or market issues normally requires a custom effort.

What you likely won’t find published, but may need to know, are answers to questions like:

• "Is there really a market for my product at the price I want to charge?"
• "Who makes the buying decision - builder, architect, consumer or all of them and to what degree?"
• "How do my target customers inform themselves about products like mine and how important is each source?"
• "Which geographical market should I be concentrating on?"
• "What are my competitors doing and how well are they doing it relative to me?"
• "Is my promotional message being received and appreciated?"
• "What does my company’s identification or brand impart to my customers?"
• "Are my selling channels the best for my business?"

For the rest of John's article, login to the Members Only section of the BC Wood website and follow the links to Marketing Tools, Marketing Articles.

John Kenmuir is a Certified Management Consultant and President of Wood Marketing Strategies.
Reach him at:jkenmuir@shaw.ca or www.promotewood.com

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Upcoming Tradeshows

To download the tentative 2004-2005, BC Wood trade event schedule, click here.

SAM
Grenoble, France
April 21-25, 2004

Canadian Wood Council Wood Solutions Fair
Seattle, WA
April 22, 2004

Interbuild
Birmingham, UK
April 24-29, 2004

Hospitality Design Expo
Las Vegas, NV
April 29 - May 1, 2004

International Contemporary Furniture Fair
New York, NY
May 15-18, 2004

For more information on these tradeshows, visit the BC Wood website.

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