BC
LTBI Endorses Pilot Project
Bill Downing, CEO
Most
of you already know that BC Wood is considering a new, sector-based
business model and that we have chosen to pilot the new structure
first with the log home and timber frame sector. Prior to
proceeding with the sector-based pilot, BC Wood sought advice
and feedback from the BC Log and Timber Building Industry
Association (LTBI). After presenting the idea to their members,
the BC LTBI marketing committee soundly endorsed the project.
Peter
Sperlich, of Sperlich Log Construction Inc. noted that the
log home and timber frame industry "is very export driven
- further development of our existing markets and creating
new export markets is essential for our continued success.
Therefore, it makes sense for us to partner with BC Wood".
In a joint communication, Mr. Sperlich itemized the benefits:
- BC
Wood's world-wide marketing infrastructure already exists;
- With
a reasonable company contribution, BC Wood will be able
to access additional government funding far beyond any individual
company's capabilities;
- All
association members will benefit, through joint marketing
efforts; and
- Participants
have the capability to steer their marketing efforts in
a direction that we see fit.
BC
Wood is now actively recruiting members from the log home
and timber frame sector to join in the pilot product. The
new structure will mean that industry contributions will be
pooled by sector, which BC Wood will then multiply by accessing
federal and provincial funding sources. Participating members
will work together to prioritize the marketing activities
for the sector.
If
you are interested in participating, please contact me at:
bdowning@bcwood.com
Russian
Wood Provides Competitive Edge to Chinese Wood Products Industry
Mike Jahraus, Managing Director - Asia
A
recent BC Wood mission to Northern China had the opportunity
to witness firsthand what some experts have been forecasting
- a coming tsunami of Chinese finished products to North American
markets.
.jpg) With
the current and continued rapid expansion of the harvest and
timber processing mills in Russia, Chinese manufacturers of
furniture, flooring, doors, and mouldings can expect an increasing
supply of logs and lumber from Russia. This supply of low
cost, high quality fibre from Russia, coupled with the low
cost structure of Chinese manufacturing industry, is creating
a boom in the production of finished wood products in China.
In the past few years, Chinese exports of furniture to North
America have had a major impact on the furniture industry
here, devastating many furniture companies. Currently, Chinese
flooring is rapidly chomping into Canada's significant share
of the US flooring market and from what we saw, North American
manufacturers can expect that doors and mouldings will be
the next sectors experiencing strong competition from China.
 What
does that mean for BC Wood members?
Three
potential scenarios! Ignore the coming Chinese tsunami and
risk extensive flooding and damage to your business (from
serious low cost competition); fortify your business today
to minimize damage (move up the value chain, improve your
product quality, performance and branding, customize to meet
the needs of the market and expand your distribution channels);
or move to high ground as fast as you can (move out of the
product line at risk entirely and/or outsource production
of components or finished products from a low cost producer).
If
your company is producing a commodity type wood product, in
the quality and market segment that Chinese manufacturers
are growing into, it is time to take a serious look at your
business. Certainly, there are a number of wood product categories
that will not be as affected by the rising exports from the
upcoming Chinese wood products powerhouse. It can be generally
said that high quality niche products, products requiring
proprietary technology, low labour cost products (as a percent
input of total cost), customized products, products that require
high interaction with customers, and products impacted by
freight costs will be less susceptible to Chinese imports.
 For
more information, on the recent BC Wood trip to China, please
contact me at mjahraus@bcwood.com.
Business in Vancouver recently did two articles on this very
topic.
Japan
Log and Timber Home Mission/Brochure
David Pao, Project Coordinator
In
the coming spring of 2005, BC Wood will be embarking on an
exciting trade mission to Japan to explore the market opportunities
available in the log and timber frame home sector. This mission
will focus on the growing interest for log and timber frame
structures to be built in Japan and presents an excellent
opportunity for BC Wood members. Companies focused in this
area will find great value in this mission by having the chance
to meet directly with Japanese builders and buyers, learn
more about exporting to Japan, and develop key industry contacts.
As well, participants will be able to visit finished log homes
and current construction sites, seeing first hand the latest
demands and trends in the Japanese market. The mission is
scheduled to take place after the Nikkei Show (March 1st -
4th) from March 5th - March 11th.
In
conjunction with the trade mission, BC Wood will also be producing
a visually appealing full color brochure specifically targeted
for the Japanese market. The goal of this brochure is to raise
the profile of Canadian log and timber frame homes to Japanese
builders and end-users, while showcasing the exceptional quality
and adaptability of products that BC Wood members have to
offer. BC Wood will be working with a former editor of Japan's
premier log home magazine on this project to successfully
create a professional print publication that will emphasize
quality and visual appeal.
Member
companies contributing to the brochure will have their company
included in the brochure and will each receive 100 copies
for promotional needs. The brochure will offer significant
exposure as it will be distributed at key trade events and
seminars in Japan as well as mailed directly to targeted developers,
builders, and architects. BC Wood will distribute brochures
to potential clients and help develop solid leads for member
companies.
BC
Wood is encouraging interested members to call early and confirm
a reservation. Space for this mission and brochure is limited!
Please contact Mike Jahraus at 604-882-7100 or at mjahraus@bcwood.com
Log
Homes in Ireland
David Pao, Project Coordinator
Ireland
is fast growing and with that growth, markets are emerging
in the value added wood industry. BC Wood first visited Ireland
to investigate the market in 2002. This visit uncovered considerable
potential market opportunities for the BC Wood membership.
Based on these findings, BC Wood further tested the market
with an extensive market analysis of wood products in the
United Kingdom and Ireland. Results from this report indicated
that the log home, timber frame, and red cedar markets were
the strongest sectors in Ireland for our members.
.jpg) Recently,
Dave Farley from BC Wood led a group of member companies to
the Plan Expo tradeshow and an Ireland trade mission. The
purpose of this trip was to further explore the opportunities
that have been identified through our research earlier in
the year. Following the four day Plan Expo show, BC Wood led
participating members on a three-day mission to meet with
key developers, architects, and builders in the Irish marketplace.
"What
we discovered was a keen interest in high quality Canadian
housing, as well as strong interest in the golf and resort
development industries."
Dave
Gardner from Unique Timber describes his experience, "It
was very positive. We met some good contacts and expect to
do business. Having someone on the ground who knows the physical
land and terminology definitely helps."
With
recent economic downturns in high tech setbacks, Ireland is
in a period of rebound and rapidly growing its wealth. Affluence
is increasingly evident which means that developers and buyers,
as reflected in the tradeshow and mission, are serious and
ready to build. In a market where business success is driven
by strong personal relationships and high quality products,
BC Wood members have a definite strategic advantage. The overall
sales and marketing success for our members at the recent
show and mission is indicative of this potential and market
opportunities will increase as we continue to facilitate partnerships
and promotion of BC products to the Irish market. For more
information on BC Wood's presence within the Irish and UK
markets, please contact Dave Farley at dfarley@bcwood.com
Japan
Market Update December 2004
Jim
Ivanoff, Program Manager - Japan
Every
year the Japan Home Show, which is held at Bigsite in Tokyo,
is one of BC Wood Japan's biggest events. Due to new funding
provided by both the federal and the provincial governments,
this year it was bigger and better than ever.
In
the past, the BC Wood booths and the QWEB booths combined
to make up the "Canadian Area" of the show. However,
this year the Canadian Embassy in Tokyo worked to secure special
Canada Brand Funding from the federal government. This money
was to give the Canadian area the unified look of a true pavilion
and thus to help draw attention to all Canadian exhibitors
at the show.
The
centerpiece of this effort was the "Canada Terrace"
made from western red cedar. The terrace acted as a meeting
space for Canadian companies to use with their clients, but
it also acted as a tremendous promotional piece for the beauty
of Western Red Cedar.
The
additional recruiting efforts of CMHC and National Resources
Canada helped us make this the largest Canadian presence at
the Japan Home in many years. In total, over 30 companies
participated and with the government and association booths
included; the Canadian pavilion occupied almost 80 booths!
The
largest portion of the Canadian presence was still of course
the BC section. In addition to the 13 BC Wood members (BC
Door, Curtis Lumber, Energreen, Ken Building Materials, Lake
Country Log Homes, Loewen, Masonite, Pacific Rim Cabinets,
Sauder, Starteck, Tamlin Homes, Trout Creek, and True-craft
Log Structures) and 4 associations (BC Wood, Canada Tsuga,
Canply, and the SPF Group), British Columbia was also represented
by the BC Market Outreach Network's (BCMON) booth on sustainable
forestry practices and Forestry Innovation & Investment's
(FII) BC Products Showcase.
The
BC Products Showcase was definitely the star of the show.
It was a two storey house incorporating various building products
supplied by BC Wood members. Once again Western Red Cedar
attracted a lot of attention as many people enjoyed going
up to the second floor cedar deck and looking out over the
entire show. Once visitors saw the products in the model house,
they were encouraged to then visit the company and association
booths. This brought a lot of quality visitors through the
pavilion.
At
the BC Wood booth we noticed the interest that the showcase
generated in wood products as we quickly ran out of our supply
of species sheets. We had to order more from the office and
ended up giving out more than twice the number of sheets compared
to last year.
All
in all, this year's Japan Home Show was a tremendous success.
We are now looking forward to the Nikkei Show during the first
week of March, where the BC Products Showcase will make a
return visit. We are confident that the large number of architects
that the Nikkei Show attracts will be thoroughly impressed
with our new look at the show.
For
further information, please contact Jim Ivanoff at Ivanoff@canadawood.jp
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Global
Buyers Mission 2004 Member Feedback
David Pao, Project Coordinator
BC
Wood interviewed a several participants of the Global Buyers
Mission in Penticton and will be posting their comments in
each upcoming issue of the newsletter. We did this to gauge
the level of success and overall satisfaction from members.
Here is some of the positive feedback I heard from speaking
to Kevin Worseley of All-Wood Fibre Ltd.
Q:
What was your overall impression of the event?
A: It
was very good. There were only serious people and buyers present
unlike many other public trade shows and events. This event
was very focused. The event gave us a lot of contacts and
gave us a potential to expand our company with new product
directions.
Q:
What part of the event stood out the most?
A: The short meetings between potential buyers. We had scheduled
five meetings but were able to expand and meet many more.
This event helped us develop a good network of contacts.
Q:
What recommendations would you suggest for next year's event?
A: The show was great. The food needed a bit of work.
For
more information on the Global Buyer's Mission, please contact
Randi Walker at rwalker@bcwood.com
BC
Market Report December 2004
Ludger Spohr, Director EU Program
Since
the Global Buyer's Mission in September we've been to the
Salon Maison Bois in Angers (France) Oct. 1st - 4th, where
the Canadian Pavilion had the biggest presence of any country
exhibiting. Canadian companies accounted for more than 12%
of the total number of exhibitors. More than 48,000 visitors
made it to the show, and none of them would have missed our
exhibit. The complete booth structure was built using west
coast maple by a BC Wood member - this is what I call "being
present"!
.jpg)
From
France we went on to the UK and then Ireland to Plan Expo,
held in Dublin Nov. 4th - 6th, the biggest and most important
building show in Ireland. Throughout the show we had a program
of meetings with major importers of Canadian west coast species
in the UK and after the show, a four-day trade mission in
the Republic of Ireland. Meetings with Architects, Developers
and Builders gave us an impression of the solid potential
the Irish market has for BC products. Prefab Housing, Flooring,
Timber Framed Constructions, WRC and Log Homes are the products
that are already in good demand and need a reliable supply.
The concept of joining a tradeshow and a trade mission - a
so called hybrid - may become a model we use more in the future;
to increase the knowledge and feel for our key markets in
Europe - Ireland, UK, France, Benelux and Germany - over and
above the insight we get at tradeshows.
.jpg)
The
BC industry has the potential to meet the needs of many niche
market opportunities. Are you ready?! For more information,
please contact Dave Farley, Managing Director North America-EU
at BC Wood (604) 882-7100 or at
dfarley@bcwood.com
The
Aspen Exposition 2005 - Japan
Over
the past year, as part of a market research investigation,
a significant volume of solid aspen lumber was produced and
shipped to Japan for trial manufacture. Fifteen furniture
and interior finish companies throughout Japan were chosen
to manufacture high quality and unique products with Canadian
aspen, to be exhibited at this Exposition. The feedback from
these manufacturers regarding aspen quality has been very
positive and encouraging.
Representatives
from the Canadian Government and from the Canadian wood products
industry (including aspen suppliers, industry association
representatives and exporters) will be in attendance at the
Exposition. The objective of this event is to facilitate the
connection between the wood product manufacturing industry
in Japan with vast aspen supply opportunities from Canada.
Wood product specialists, literature on aspen properties and
wood samples will be available.
This
is an event that you will not want to miss. The Aspen Exposition
will be held on Wednesday, January 26, 2005 at the Embassy
of Canada in Tokyo, Japan. Please contact Bill Downing at
bdowninig@bcwood.com
for details.
Occupational
Standards for the Advanced Wood Products Processing Sector
Occupational
standards describe the skills and knowledge needed to perform
competently in the workplace and help companies plan their
skills development and maintain their competencies. Our advisory
committee has selected the positions of finisher and wood
machinery operator as the first occupations to be studied.
These standards are voluntary, but their introduction will
provide noticeable benefit. We need companies to help us accurately
define and verify the skills and competencies required for
these occupations.
The
Wood Manufacturing Council, with the assistance of industry
and education reps, including AWMAC Ontario President Al Sparling,
has embarked on a project to produce the first occupational
standards for the advanced wood products processing sector.
The occupations targeted are WOOD MACHINERY OPERATOR and FINISHER.
The standards will help with recruitment, evaluation and assessment,
individual training as well as training course development
and overall skills upgrading. They will facilitate labor mobility
and could lead to professional accreditation and certification
to these occupations. They have served a great number of Canadian
industrial sectors very well.
WMC
is requesting assistance in developing these standards, we
are asking that companies allow their employees in these occupations
to participate in the first of a series of national meetings
to identify the skills and competencies required to perform
the duties in these occupations (DACUM Meetings). The meetings
are being held in Richmond, BC at the Hilton Vancouver Airport
Hotel, 5911 Minrou Boulevard, on Wednesday, December 8th in
the morning (starting at 9 am) for the Wood Machinery Operator
and in the afternoon (starting at 1pm) for the Finisher position.
Complete details are attached in the file:
WMC
Dacum Meetings (BC) Invitation Letter
Kyung
Hyang Housing Fair 2005 - Korea
In
its 20th year, the prominent Kyung Hyang Housing Fair 2005
is expected to attract over 800 exhibiters and 400,000 attendees.
Located at the COEX & SETEC Convention Centers in Seoul,
the trade show will take place from February 25th to March
2nd, 2005. This event will accommodate some of Korea's key
decision makers in the architecture, housing materials, and
construction industries. There will be several meetings between
government and industry members to discuss the latest issues
on housing materials, construction equipment, and interior
design.
As
a highly focused industry trade show, it is estimated that
82% of the participants will have direct purchasing abilities.
Like other events, BC Wood members can take advantage of this
excellent opportunity to meet and network with serious buyers
and builders in the Korean market.
Interested member companies are encouraged to consider the
growing market opportunities Korea has to offer for secondary
wood products and wood frame construction. For additional
information, please visit the event website at:
www.ebhousingfair.com
2005
ForestLeadership Conference - March 1-3 in Toronto
Sure
to be one of North America’s leading sustainable forestry
events of the year, the March 1-3, 2005 ForestLeadership conference
will attract industry, conservation, government and other
leaders in sustainable forestry from North America and from
around the world. Titled 'Partnerships Towards Sustainability',
the conference features a combination of keynote addresses,
high-powered panels and breakout sessions. The event takes
place at the Four Diamond rated Wyndham Bristol Place Hotel,
just minutes away from Toronto’s international airport.
This
is an excellent time to register for the conference and to
book your room, as you can easily save CDN$250 (approx. US$200)
or more by making your arrangements now:Save up to CDN$150
on regular conference registration fees by registering before
December 1, 2004. Discounts are available for multiple registrants
within the same organization. If your organization sends more
than five delegates, call us for an extra discount. Reserve
your hotel room before December 31, 2004 for securing the
discounted rate of CDN$139 per night, as compared to a regular
rate of approximately CDN$185. We recommend you also enroll,
free of charge, to Wyndham's 'By Request' program, which provides
free benefits such as high-speed Internet in your room.
This
is also an excellent time to plan your flight to Toronto,
as many airlines offer great discounts on early bookings.
Consult the conference program and find registration and accommodation
booking details at
www.ForestLeadership.com
Got
Something to Say?
If
you have any questions, comments, or would like to contribute
to BC Wood News On-line, please contact David
Pao at:
BC
Wood
#200 - 9292, 200th Street
Langley, BC
Phone: (604) 882-7100
Fax: (604) 882-7300
Toll Free: 1-877-422-9663
or email dpao@bcwood.com
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