Global
Buyers Mission
Bill Downing, CEO
BC
Wood marks its 15th anniversary this year and I can think
of no better way to celebrate than by hosting the most ambitious
event we have ever undertaken - the Global Buyers Mission.
In a year when much of the focus has been on the primary forest
industry and its continued consolidation, the Global Buyers
Mission places value-added wood products back in the spotlight.
The participation of buyers from around the world is testament
to the exceptional quality and value of our wood products.
The already impressive list of buyers continues to grow daily:
CHINA
Foshan Solidak Garden Products Co. Ltd.
Jiangsu Sumec Int'l Technology Trade Co.
Shanghai Dao Nuo Industry Co. Ltd.
Shanghai Hardwoods Co Ltd.
Shanghai He Shang Enterprise Dev. Co. Ltd.
Shanghai Kingswell Furniture CO., LTD.
Shanghai Nanyang Decoration Wood Co.
Shanghai Dong Hua Huan Qiu Wood Construction Materials Dealing
Center
Wuhan Nan Guo Real Estate Co. Ltd.
EUROPE
Jim Barna Loghomes -Denmark
Equilibre -France
Kevecordes GMBH & Co. KG -Germany
Dublin Plywood & Veneer -Ireland
ACH Construcciones Canadienses -Spain
Holz Benz AG - Switzerland
Vincent Timber Ltd. - UK
JAPAN
Ark Japan Co., Ltd.
E.G. Supplies Ltd.
J. Architecture System Inc.
Okaya Homes
Takahiro Mokuzai
Tsuruoka Komuten
Inplace Inc.
Tokyo Futo Kabushiki Kaisha
Sawasdee
KOREA
Buildmaster Co. Ltd.
CS Consulting Service
Korea Wood Building Design Association
Mida Wood Construction Co. Ltd.
Sam Ik Industrial Co. Ltd.
Samyang Wood Co. Ltd.
Setzer International Inc
Solstis Construction Co.
USA
Disdero Lumber Co.
DW Briggs Co.
Eagon USA
Gascoigne Lumber Co.
LR McCoy
Lowe's
Lumber Products
North Cascade Building Materials
Weekes Forest Products
CANADA
Canadian Wood Council/Woodworks! BC
Can-Kor Construction Company Inc.
Nor-A Traders Inc.
I'm
sure that most members can appreciate the effort (and cost)
that goes into organizing an event like this. Many organizations
have thrown their support behind this event: Western Economic
Diversification, Canada Mortgage and Housing Corp., Natural
Resources Canada, Forestry Innovation Investment (BC Government),
Export Development Canada and the Consulate General in Seattle.
Why such outstanding support? These organizations understand
the importance of a healthy value-added wood products industry
in British Columbia - and they recognize the immediate benefits
of matching buyers and sellers.
So,
come to Penticton to BC Wood's 15th anniversary, have some
fun and, most importantly, do some business. If you haven't
already signed up, give us a call at 1-800-4BC-WOOD or go
to www.bcwood.com, click
on "Member Services" and then "Global Buyers
Mission".
See you in Penticton.
Next
BC Wood mission heads to Northern China and the Russian border
Michael Jahraus, Managing Director - Asia
The
next (and only) BC wood mission to China this year will occur
in late October. This trip has been in the planning stages
for some months now and looks to be an incredible opportunity
for those members interested in really understanding the Chinese
market.
The
wood mission will kick-off in Dalian (October 25 to 29). Participating
companies will take part in China Wood 2004, which offers
field trips to wood product manufacturers, as well as a wood
products conference and wood products exhibit. China Wood
will attract approximately 200 leaders in the Chinese wood
products industry, as well as dozens of wood industry delegates
from all over the world. BC Wood participated in China Wood
2003 and based on positive member feedback, is incorporating
this event into the mission this year.
China
Wood will be an excellent opportunity for BC Wood members
to be updated on global market trends and to participate in
detailed discussions on the trends and outlooks for China's
wood products industry. BC Wood has secured exhibit space
for members to showcase their products and display marketing
materials to the many buyers coming to this event. The field
trips planned will provide participants with the opportunity
to see Chinese wood product manufacturing plants first-hand.
The field tours will cover a variety of products (e.g. flooring,
furniture (pine and hardwood), veneer, hardwood & softwood
sawnwood - from Chinese-style sawmills, mouldings, laminated
lumber/posts/beams, stile and rail doors, etc. as well as
traditional Chinese building materials).
After
the China Wood conference, mission members will have the option
of participating in a fully organized market trip to the Russian
border (October 30 to Nov 3). This fascinating trip will allow
participants to witness the quality and quantity of Russian
logs and lumber entering China, and to meet with Chinese importers
of these products (to obtain product and pricing information).
Understanding the competition is a key part of doing business
in China and this opportunity, offered exclusively to BC Wood
members, will be provided on a first come-first served basis.
For
more information (cost and detailed itinerary), please contact
Mike Jahraus at mjahraus@bcwood.com
or call me at 604-882-7100.
Market
Opportunities for Western Canadian Aspen headlining Forintek's
Exploring New Paths: the Aspen Opportunity Conference in Edmonton
this October
Market
opportunities for Western Canadian Aspen will be front and
centre at a major Forintek conference set for Oct. 15 at the
Alberta Research Council in Edmonton.
Exploring New Paths: The Aspen Opportunity will bring a wealth
of market and research material to sawmillers and processors
from across Western Canada.
National Director of Markets and Economics, Chris Gaston,
says "anyone with access to an aspen resource should
attend to get an idea of what's possible in the market."
Keynote speakers Mark Norris, Alberta's Minister of Economic
Development as well as Steve Lawser, Executive Director of
the Wood Component Manufacturers' Association (WCMA), headline
the event.
The WCMA represents more than 140 manufacturers of dimension
and wood component products for the furniture, cabinet, moulding,
millwork, flooring and related decorative wood product industries
across Canada and the United States. Lawser is actively involved
in conducting marketing research and promotional programs
designed to expand the markets for value-added North American
wood products.
Norris was elected MLA for Edmonton-McClung on March 12, 2001
and subsequently appointed to Cabinet. As the owner of a successful
advertising and sign manufacturing business, Norris says he
understands the importance the wood products industry plays
in the country's economy. He remains dedicated to promoting
a business environment that allows businesses to succeed.
A team of Forintek Canada Corp. scientists will be speaking
on all aspects of manufacturing and marketing aspen. Dave
McRae will address drying for appearance applications; Derek
Goudie will present grading and sawing issues and the aspen
supply; Bob Knudson will cover veneer products and Derek Williams
will speak on machining and finishing. Tony Sauder from the
Forest Engineering Research Institute of Canada (FERIC) will
address the implications on harvesting for producing saw logs.
Gaston will be delivering a presentation on the culmination
of a project Forintek staged with Western Economic Diversification
this summer.
"We sent five containers of high-grade aspen to Japan
to about a dozen specifiers (furniture, door and window, cabinet
manufacturers)," he says. "These contractors are
utilizing the aspen for the production of select pieces and
we will get their feedback. It'll give us a good indication
of the potential market by finding out what they like and
what they don't like about aspen."
In November, the specifiers will showcase the aspen products
at a trade mission at the Canadian Embassy in Tokyo. A host
of Japanese manufacturers and well as Western Canadian suppliers
will attend the mission. "We're really excited about
this opportunity to bring potential buyers and sellers of
aspen together while showcasing the finished product,"
Gaston says. "It could lead to orders."
"The whole purpose of this exercise is to establish whether
it's possible to profitably offer a continuous supply of lumber
made from western Canadian aspen," Gaston points out.
"Whether it's good news or bad, it's something we need
to know."
In a similar project closer to home, Forintek supplied approximately
15,000 board feet of No. 2 Common Grade aspen to domestic
manufacturers in Western Canada. One specifier is a Lower
Mainland baby furniture manufacturer who will utilize it in
its products and determine if its use is viable over the long
term.
Some of those attending Exploring New Paths will also take
part in a hands-on aspen workshop, part one of the Aspen Opportunity
conference, staged in Edson, Alberta on October 14. Participants
will be going into the bush, selecting logs and milling them,
to learn about grading and drying techniques.
Since high interest in part one of the Aspen Opportunity conference
in Edson resulted in a full session, similar regional aspen
two-day workshops are slated for November 16-17 in Hudson's
Bay, Saskatchewan and the week of March 14, 2005 in Dawson
Creek and Peace River. The workshops will involve a day in
the field doing tree selection, followed by a day of classroom
work.
Trembling Aspen is considered to be the most important populus
species in Canada. Forintek's research indicates it accounts
for 81 per cent of the total hardwood inventory in Alberta.
For registration fees and information on Exploring New Paths
or the regional workshops, call Steph Troughton at 604-222-5663
or via email at Stephanie@van.forintek.ca.
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"BC
Wood Members have spoken!"
"BC Wood secures additional booth space!"
Due
to the increase in registrations for the Global Buyers' Mission
September 16th-18th we have had to increase the available
booth space. BC Wood has secured an additional 10 spots at
the sales event of the summer. If you were planning on attending…..Act
Now! These spaces are in a premium location and will sell
on a first come basis. They will not be held. Call now to
reserve your spot!
What:
The Global Buyers' Mission.
When: September
16-18, 2004.
Where: Penticton,
BC.
Who: Buyers from
global markets, including Asia, Europe and USA.
A
few reasons BC Wood members and your competition have already
signed up:
- Attendees
will meet and get incredible exposure to 50 buyers from
China, Japan, Korea, England, Ireland, Denmark, France,
Germany, Switzerland and USA.
- All
of the buyers have been "pre-qualified" by our
in-market representatives & Export Development Canada
(EDC). They are key decision makers with purchasing power.
- Attendees
will get a complete listing of buyers prior to event and
can select a minimum of 3 pre-set 1 on 1 meetings with the
buyers of your choice, facilitated by BC Wood.
- Attendees
get a full 10x10 booth to showcase product in a tradeshow
format.
- Cost
effective sales! It is physically impossible to meet with
these key decision makers in person outside of this event.
- BC
Wood members who participate will be listed in the 'Mission
Program Guide', which will be the primary resource guide
for the buyers. Member company profiles will be translated
into Japanese, Chinese, and Korean. All of the buyer companies
will be using this guide as a resource back in their home
country.
- This
premium networking opportunity with other members and industry
representatives is not to be missed.
For
more information, or to sign up, please call Daryl Holmes,
or Randi Walker at BC Wood.
BC
Market Report August 2004
By
Ludger Spohr, Director EU Program, BC Wood
Global
Buyers Mission - Update
I'm
happy to say we are working day and night (taking the time
difference into account, no lie!!) to get the last details
nailed down for BC Wood's Buyer's Mission this September,
in Penticton.
Our
list contains eight buyers from all across Europe, reflecting
the variety in languages, as well as interests for different
products in the respective markets.
- From
Ireland - where we will again participate at the biggest
builder's show early November - we are expecting a major
builder/developer and a building materials importer; including
beams, joists, doors and windows.
- A
major UK lumber importer will be looking to expand his product
range into building materials, garden furniture, gazebos
etc., in addition to maintaining his range of WRC, Douglas
Fir and Hemlock from BC.
- Two
Spanish companies will add the Mediterranean flavour: one
builder from Madrid, who already uses Canadian materials
and one importer who has several stores in the country.
- France
is represented by a developer who also wants to offer the
extras; shingles, outdoor furniture, everything around verandas
- plus the must - building materials.
- An
importer, who sells lumber for the garden, playground equipment,
garden furniture, fencing etc. to more than 100 DIY-stores
throughout the country, will represent Germany.
- Our
participants from Austria and Switzerland are looking for
log homes. In this region, commercial use of log buildings
is widely spread for hotels, restaurants, and mountain chalets
etc.
- Switzerland
- the only country that's not a member of the EU - will
send one of their major lumber importers.
Looking
at this list, it seems to me that there is "something
for everybody" amongst the BC Wood members.
I
am looking forward to introducing you to my European Group
of buyers and exchanging information with you about the European
market and its new upcoming opportunities.
The
Chinese furniture industry and the US anti-dumping duty
Michael Jahraus, Managing Director - Asia
Just
a few months ago (June 18, 2004), the US Department of Commerce
announced a preliminary determination in the anti-dumping
investigation of wood bedroom furniture from China. In the
ensuing months, a number of Chinese furniture manufacturers
(those that had trade knowledge, understanding of US legal
procedures and sufficient financial resources) acted by making
voluntary submissions to the Department of Commerce. Of the
118 Chinese submissions received by the US government, 82
were granted a separate rate status, which in most cases was
substantially less than the rate imposed on the entire Chinese
furniture industry (average of 10.92% for the 82 companies
vs. 198.08% for the industry-wide rate). As a result, unless
Chinese furniture manufacturers are able to prove to the US
Department of Commerce that their export activities are not
controlled by the Chinese government, they are essentially
being shut-out of the US market for wood bedroom furniture.
When
looking at the list of companies receiving the separate rate
status, it appears that most are the larger more sophisticated
producers and many have US partners and/or US financial backing.
These companies make up over 40% of all imports of wood bedroom
furniture from China into the US. The smaller Chinese manufacturers
(close to 50,000 in number) are, for the most part, not in
any position to go through the complex legal process in the
US to obtain a separate rate status. We recently had the opportunity
to visit a number of Chinese manufacturers, some with and
some without the special rate status, and we found an industry
in turmoil and under tremendous pressure to change.
Chinese
bedroom furniture manufacturers without the separate rate
status are scrambling to survive. However, Chinese business
people are extremely resilient and we discovered that many
are implementing strategies to overcome this US trade action.
Strategies being discussed or being implemented by Chinese
manufacturers include:
- Development
of new markets (such as Europe, Korea, Japan, Canada and
Australia)
- Development
of new wood products (e.g., dining room furniture, living
room furniture)
- Selling
components to countries supplying the US market (e.g., Canada,
Taiwan, Vietnam were mentioned)
- Selling
to one of the select Chinese companies with the separate
rate status (the companies with the separate rate status
have the opportunity to rapidly grow in size and some discussed
outsourcing as key to their future growth)
- Shipping
products to third countries for repackaging to change the
country of origin (this is illegal and is usually viewed
as a last resort but some companies may choose this route
if their financial survival is threatened).
So
what will be the final result of this trade action? Although
no one has a crystal ball it appears that the fragmented Chinese
wooden bedroom furniture industry that currently exports to
the US will be replaced by a more consolidated, more powerful
and more profitable industry. Hence the trade action will
likely only provide temporary relief for US furniture manufacturers.
The anti-dumping duty is also pushing Chinese manufacturers
to diversify into new markets and other furniture sectors,
which could prompt future trade actions. In the short term,
the volume of bedroom furniture that is shut-out of the US
market needs a home and we could potentially see a surge in
Chinese bedroom furniture exports to smaller markets, such
as Canada. Only time will tell. The ITA final determination
comes November 5, 2004.
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