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| December 2, 2002 | Volume 1, Edition 7 |
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The Canada Wood Bureau
As you know, BC Wood has had in-market overseas representation for many years. We established representation in Japan in 1994, Germany in 1995, China in 1999, India in 2000 and the US in 2001. The offices in Germany, China and India are staffed and managed jointly with the Quebec Wood Exporting Bureau (QWEB). The offices in the US and Japan are BC Wood only. We have informally used the CWB designation in our jointly staffed offices since their inception and it has worked very well. Frankly, most of the people involved in the wood products industry overseas have no idea what or where "Quebec" or "British Columbia" is. However, everyone is familiar with Canada and our maple leaf, thanks to the good work of our embassies and consulates. With the Council of Forest Industries (COFI) joining our office in Shanghai, the time has come to formalize the Canada Wood Bureau. In addition to the recognition factor, the CWB will be an excellent platform from which to access the newly announced federally funded Canada Wood Export Program (CWEP). The funds from this program are earmarked specifically for industry associations engaged in international marketing activities. One of the main evaluation criteria for accessing these funds is cooperation between associations and joint proposals. Our proposal will be submitted under the CWB and we anticipate significant CWEP funding to offset both infrastructure and activity costs. The CWB concept dovetails nicely with the objectives of our main funding partner, Forestry Innovation and Investment. I recently accompanied BC’s Forest Minister Michael de Jong on a trade mission to China, where we visited and met with numerous buyers, developers and government officials in Shanghai. The need for a single entity promoting Canadian wood products was clear; multiple, independent groups, representing various wood products and geographical markets simply confuse the market. If you are concerned about BC Wood losing its autonomy and ability to determine which marketing activities to pursue, let me put that concern to rest. The CWB will be structured such that each participating association will cover an equal share of the fixed costs. The individual associations will pay for specific marketing activities. In this way, we make the CWB open to all associations wishing to participate in a market, while allowing each association to pursue its independent marketing activities. The Canada Wood Bureau is the next step for BC Wood in its international marketing efforts. It will create efficiencies and synergy that will ensure that our members and funding partners get the maximum return on their marketing investments. 
Canada Falling Behind in Capturing Piece of Fast Growing Chinese Sawn Wood Market
Sawn timber imports are on the rise in China, increasing by 12% in 2001, and up almost 40% in the first half of 2002. Canada’s position in the Chinese market for sawn wood is currently 6th in volume and 8th in value. Wood producing countries such as Russia, New Zealand, USA and Germany are targeting China to capitalize on dwindling Chinese domestic supply and a rapidly widening domestic supply gap (currently estimated at up to 43 million cubic metres). Based on the outstanding member feedback and success of the BC Wood South China mission in September of 2002, BC Wood has decided to offer a trade mission from January 18 to 24 - Central Northern China Trade Mission, to target wood buyers and wood product manufacturers in both Shanghai and Beijing. Why Shanghai and Beijing? Market opportunities for BC Wood members participating in the January mission will include softwood and hardwood lumber and components for furniture and interior decoration manufacturers, lumber for construction applications and low-grade lumber for packaging. BC wood species are gaining increased popularity in China in the manufacture of wood products, particularly small furniture items, outdoor furniture, interior decoration, wood accessories, doors (frames, stiles and rails) and solid wood furniture (e.g., children’s bedroom). Many of these wood products are consumed in the local Chinese market. Besides gaining invaluable market intelligence, visiting manufacturing plants and meeting wood buyers and lumber wholesalers, mission participants can also obtain assistance from BC Wood in-market staff in finding the right Chinese partner, a key ingredient for success. For more information on the upcoming Central Northern China Trade Mission, please contact Mike Jahraus at mjahraus@bcwood.com or call me at the BC Wood office. Please note that space is limited. A trip report and pictures of the September South China Mission can be found on the BC Wood website, in the Members Only section under China.
Member Spotlight: Theden Forest Products
Tom Read, Marketing Director for Theden Forest Products, recently attended the Western Building Material Association (WBMA) National Convention in Portland, Oregon and is quite pleased that he did. With this being only his second BC Wood sponsored event, Tom believes he will attend many more in the future.
Theden has been a member of BC Wood for over 2 years, and Tom views their membership as a vital connection to the world of secondary wood products. "Since we are a small company in a small community, BC Wood helps connect us to potential customers, other wood manufacturers and trade associations." Tom is also pleased with BC Wood’s World Wide Inquiry System. Theden monitors the inquiries on a regular basis and has responded to several. "It has been a great tool in discovering the types of products customers want," adds Tom. In making the decision to attend the WBMA meeting, Theden considered Since the WBMA event is essentially an annual general meeting with a small tradeshow portion, Theden’s expectations were to meet people and get insight into how to reach this market. Not only did they achieve this goal by meeting with the lumberyard owners and purchasing agents, but they also received verbal requests for a few trial orders and additional product samples. Theden came home with many positive thoughts about the WBMA meeting. They realized that the three-year sales plan that they currently have in place could take much less time to achieve if they can sell to retail building supply centers in the Pacific Northwest. "Our current customers are mainly do-it-yourself individuals and small contractors. Breaking into the wholesale market in the US will help us achieve our goals much quicker because of the larger volumes purchased with each order." Theden’s future plans include attending the Surfaces tradeshow in January (Las Vegas) to learn about their competition and how to sell through flooring contractors. Tom offers some advice for BC Wood members who are interested in selling to the Pacific Northwest: "Flooring manufacturers can really benefit from the WBMA meeting, and I am surprised that they weren’t any other flooring members there. BC Wood is known and recognized in the industry. Being a member of BC Wood helps give the members credibility as well."
Herb Dhaliwal Announces US$500,000 Contract of BC Coastal Lumber to India
This confirmed deal will see a significant volume of hemlock, Douglas-fir, alder, western maple, western red cedar and white birch shipped to India in 2003. The deal was put together by Tom Sundher and his son Robbie, with the on-going support of Gary Doucette and John Gillis of Weyerhaeuser. "India is a market with huge potential for BC companies, but you must be prepared to make a long-term commitment to the market. With rising incomes, a continued opening of the market, a lack of domestic wood supply and increasing knowledge about BC wood species, we are starting to achieve excellent returns on our investment in this market. BC Wood’s help, right from the start, has been invaluable" says Tom Sundher.
BC Wood, in partnership with Quebec Wood Export Bureau (QWEB), has been active in the Indian market for almost three years now. A showroom in Mumbai, complemented by in-market representation and a regular tradeshow and trade mission program, is in place to assist BC Wood members in entering the Indian market. The recent Team Canada Trade Mission saw Federal Minister of Natural Resources Herb Dhaliwal generate significant press and exposure in both New Delhi and Mumbai for the seven BC Wood members that participated. BC Wood and QWEB also had a prominent booth at the Inside Outside Mega Show, which overlapped the mission. The show booth contained: interior and exterior doors, a kitchen, kitchen cabinet doors, mouldings, hardwood and softwood flooring, garden furniture and interior and coastal lumber species. Solid contacts were gained and positive feedback was received from participating BC Wood members.
For more information and recent trade reports, please visit the BC Wood Members Only section under India, or contact Mike Jahraus at mjahraus@bcwoodcom.
Introducing Furniture Map
As a BC Wood member manufacturing quality wood furniture or case goods, I would like to bring a unique opportunity to your attention. The Advanced Technology Centre (ATC) is introducing a new program specifically designed for BC manufacturers of fine wood furniture called the "Furniture MAP". This program has one goal: to increase your sales into the US market. Furniture MAP takes a comprehensive approach to increasing your sales, as
it covers everything from identifying specific market opportunities for your
firm, to hands-on assistance in developing the products and processes
required to take advantage of those opportunities. Participants will
benefit from:
This is a cost-shared program, sponsored by Forestry Innovation Investment, with a minimum investment of 30% by your firm. ATC projects that you will recover the cost of your investment within the first year. There is capacity for only 25 companies in the program. If you are interested,
please contact The Advanced Technology Centre at
Update on the Members Only Section Tradeshow Information BC Wood Marketing Programs Each market contains information on the BC Wood programs, facts, links, contacts, articles, and reports. BC Wood program information describes the tradeshows and events that BC Wood will be attending for each market. Facts contain information on each country, such as housing starts and market statistics. The links area provides links to various websites that contain information on the specific country, such as government, associations, and embassies. Articles written by our in-market representatives, as well as other people in the industry, can be found in the BC Wood Marketing Programs area, as well as country specific reports, which can be downloaded. Hopefully you are still checking the "What's New" section often to see what the latest additions to the website are. This is one of the best sources of information to stay up to date on the most recent news!
Associate Member Profile: Catalyst Training One of the newest BC Wood Associate Members is Catalyst Training Services Inc., a Vancouver-based company that specializes in the areas of Training and Development, and Personnel Assessment Systems. In this month’s Associate profile, we asked Dan Monteiro, President, a few questions about his company. Tell me about Catalyst Training Services Inc. Can you describe your service? This analysis will result in solutions that address such areas as:
Every process involves the determination of a measurable result through the establishment of a Win/Win agreement and is executed over time through spaced repetition and goal setting. The results we implement are permanent and enduring solutions that carry an organization forward into the future. How can BC Wood members benefit from your service? What is your competitive advantage in the industry? The facilitator of the process is experienced in individual counseling and coaching skills as well as group process facilitation. This affords the achievement of personal goals as well as corporate goals. Our programs and services have stood the test of time and have already been proven to work across the country in a variety of industries. The Canadian Manufacturers and Exporters Association, the Canadian Plastics Industry Association and BC Wood have endorsed our services. Who should members contact if they are interested in your service? **Special Offer to BC Wood Members
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BC Wood is pleased to present the following upcoming Market Expansion Program Workshops: Beyond Leads & Brochures You Want to Ship What, Where? Beyond Leads & Brochures For more information and updates on the Market Expansion Program, please contact Henk Gauw or Sharon Hambly or check out the Market Expansion Program on our website. 
Technique in Europe
Besides reminding you about Domotex, BAU, and the International Furniture Tradeshow, all taking place in Germany in January 2003, it is also time to give you some technical hints on communications with the BC Wood office in Europe. I would first like to ask all members who contact me for the first time: If you are a member, please say so. I get many emails out of the blue with the following message: "Hi, I am Peter and I heard that you are BC Wood’s rep in Europe. I have product X and would like to know Y. I am in a bit of a hurry with that issue, so it would be great if you could reply yesterday. Cheers, Peter." I am glad to see that members show interest in the European market, but through Crosscut magazine and other sources, my email is spread widely over BC. Although I am open to helping all wood manufacturers, my first priority is to BC Wood members. It would make my life easier if you would mention if you are a member right away - Thanks! The second thing is a rather technical point, but nonetheless important. In order to be able to promote your products in Europe, I need promotional material such as pamphlets, brochures, and samples from members. For those of you who do send me this information, many times UPS, DHL or K&N call me asking about the content of parcels for duty purposes. As we want to avoid paying unnecessary duties, please keep the following in mind: There are no import taxes/duties to be paid if: Brochures, for example, are promotional material with no commercial value. The European market has tremendous opportunities and potential for value-added wood products. I look forward to working with all of you in the new year. And for those of you who forgot to make an entry in your calendar for January, the next shows coming up are DOMOTEX, the flooring tradeshow in Hanover (Jan 9th - 13th, www.domotex.de) and BAU, the housing show to go to in Europe (Jan. 11th - 18th, www.messe-muenchen.de).
We are pleased to welcome the following new BC Wood Member who has joined us since November 1, 2002: Bill Smith Forest Products Ltd., Chemainus - Remanufactured Products (semi-finished)
Harvey Rebalkin is the Trade Commissioner in Vancouver for the building products and systems, furniture, architectural services, and forestry and wood processing equipment sectors. We had the opportunity to ask him a few questions about Department of Foreign Affairs and International Trade's new Virtual Trade Commissioner.
What is the Virtual Trade Commissioner? What are the benefits of signing up? What is the cost? How does one sign up/register? Who can I contact or where can I go to for more information? You can also see a demonstration of the Virtual Trade Commissioner and read the press release.
New 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 Yuri Akeroyd at 604-556-3373 or toll-free at 1-877-422-9663.
Roland Baumeister (250) 371-5586
JLC Live
Bau 2003 NAMM International Music Mart International Builders Show Surfaces 2003 Log Home & Timber Frame Expo Northeastern Retail Lumber Association Northwest Home Furnishings Show For more information on these tradeshows, visit the BC Wood website or contact Jennifer Rose at
Consultants & Marketing Services
Truck Loggers Convention The Truck Loggers Association Annual Convention and Trade Show is being held January 14-17, 2003 at the Vancouver Trade and Convention Centre. See the attached brochure for more information.
If you have any questions, comments, or would like to contribute to BC Wood News On-line, please contact BC Wood
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This month, I would like to bring to your attention BC Wood’s involvement
in the formal establishment of the Canada Wood Bureau (CWB). This is an
important initiative for BC Wood and I would like to explain why we are
doing this and the benefits that will accrue to BC Wood and our members.
Theden Forest Products, Powell River, BC, specializes in solid wood flooring
made from the naturally grown trees in their coastal region, including
Douglas Fir, Red Alder, Western Hemlock, and Broad Leaf Maple. Although
wood flooring is their main focus, Theden also manufactures wood panelling,
moulding, and window and door casings.
the
target audience that would be attending - independent retail lumberyards
and building product retailers of the Pacific Northwest. "Wood flooring
is not common in these outlets, yet they sell or rent everything needed
to install an unfinished solid wood floor. We thought our product line
would be of interest as a differentiator for their market." Attending
the WBMA meeting also fit right in with Theden’s current marketing plan.
With the US being their main export focus, they would like to see sales
increase in this market. "We believe that we could do well in the United
States and particularly in the Pacific Northwest. Our products are of high
quality and made of the same wood species that are found in the Pacific
Northwest," comments Tom.
One of the highlights of the recent Team Canada Trade Mission to India was
the signing of a US$500,000 deal at the Canada Wood Showroom between LS
Sundher Ltd, (agent for Solid Wood Products India for Weyerhaueser Canada)
and B.F. Wadia & Sons, Timber Merchants & Saw Millers, Bombay.
| December 2, 2002 | Volume 1, Edition 7 |
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| Copyright 2002. BC Wood, All Rights Reserved. | |
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