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| February 3, 2003 | Volume 2, Edition 9 |
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Market Opportunities Uncovered During North Central China Mission
From January 18-25, 2003, BC Wood staff and six BC Wood member companies visited furniture, door, flooring, giftware and component factories, wholesalers, and Chinese industry associations in north central China. The trip opened the door to many opportunities for industry participants and will certainly lead to future sales. As one participant said "I found the trip very well organized and extremely worthwhile" Martin Hennigar, Hennigar Hardwoods Ltd. of Quesnel.
Well, what did we learn? We found: This last demand factor is growing very rapidly and creates both an opportunity and a threat for our industry in BC. The first two demand factors reinforce the findings of the south China mission in September of 2002.
What does it mean?
Where can I find more information? If you are interested in investigating the Chinese market for lumber and wood components, please consider participating in our return mission to southern China in March of 2003 to Guangdong province. For more information, please contact Simone Liang at sliang@bcwood.com or 1.877.422.9663 (604.556.3373 in Abbotsford) or visit the tradeshow section of the BC Wood website. 
Later this week we will be sending you a copy of our Annual Survey, which we ask you to complete. It is a very brief 2-page document that will take you 5 minutes to fill out and fax back - but the benefits you will receive from your efforts will be great! Last year, our Member Survey feedback resulted in a number of changes to our Member Services Program including: increased Market Intelligence and Foreign Market Reports; an on-line database of contacts, reports and sectoral information; a more comprehensive and useful website; and many improvements to the WWIS system. Our Marketing Program has also reacted to your comments and, in turn, has increased the number of Trade Missions and incoming Buyer's Missions. Your feedback and comments are very important to us - please take a few minutes to complete the forthcoming Survey and return it to us by fax.
BC Member Old Country Woodturning Ltd. Wins Business Excellence Award
BC Wood would like to congratulate Old Country Woodturning Ltd. of Victoria, BC for winning the Business of the Year Award in the Forest Category at the 3rd Annual Vancouver Island Business Excellence Awards! We asked Dave Conway, owner of Old Country Woodturning, what he thought about being awarded this prestigious title. "We are ecstatic about winning the award. It is really nice to win something. I know it’s not the whole province yet, but you have to start somewhere." When asked what he thinks winning this award will do for the company, Dave said that he wasn’t sure. "It’s definitely a pat on the back and it shows that people are taking notice of what we do. That’s good to know."
A BC Wood member for over ten years, Old Country Woodturning has participated in many events. Their main market is the US, and one of the events that they have found beneficial has been the National Sash and Door Jobbers Convention. They have attended this show several times and have found that it offers them the best exposure to their target market of wholesalers and distributors. Although it takes some time to establish new relationships and customers, Dave believes this show provides them with the best opportunity to do this.
Despite the conflict with the U.S. over softwood lumber, 2002 was an
excellent year for Old Country Woodturning. It was their first year of kiln
drying their own wood, and they expanded their production machinery. With
the addition of the kiln, the company required a third forklift and a
larger truck to meet demand, employing 28 full time staff in two production
plants. They also implemented several staff training initiatives last year,
and made a forklift training program available to all staff. Press Release Source: The Business Examiner
Bau and Domotec In Germany
BC Wood recently participated in two very successful German based tradeshows during the month of January; Domotec, the flooring show in Hanover, and Bau, the building and construction show in Munich. Many serious customers attended, despite the recent slow German economy. Both Domotec and BAU had a hard time attracting visitors from around the world, as the German market is known to be in a slow period. The surprising result was that even though total numbers of visitors was down from last year for Domotec and two years ago for BAU, the exhibitors were satisfied. There was increased quality in the type of attendees, as more decision-makers (purchasing managers, general managers) attended the shows to inform themselves about different products and possibilities. In addition, more attendees came from abroad to attend the show – underlining the fact that you should not focus on the country in which the show takes place, but the region it is focussing on. Domotec and BAU are the biggest European shows in flooring and the construction industry, bringing visitors from places such as Spain and the UK, which both had an increase in housing starts of more than 8% in 2001. Domotec in Hanover was very interesting. In Germany, and most of Europe, there is a large potential for flooring if the species used is 14-16mm thick, unfinished, specified grading (knots might be accepted over colour variation), and 83mm or wider. Why not 19mm thick (3/4’’) you ask? The reason for this size is due to the fact that a lot of the flooring in Europe is being used for renovations. A 19mm floor is too high for bathrooms and kitchens with tiles or a bedroom with carpet. I don’t know of many members who produce this kind of flooring, but I know many importers and dealers in Europe who would like to sell a 15mm product. The BAU show was a huge success. As I mentioned before, with the slow economy in Germany, many exhibitors had fairly low expectations. To the surprise of many, the show went very well and several visitors from other European countries attended, namely specifiers, architects and builders. The Canadian Pavilion, which we already used at Interbuild in Birmingham in June 2002, was again a great eye-catcher and attracted many visitors. Inquiries concentrated on representing log home and wood frame housing companies, WRC for decking, siding etc., and specialty items like veneers. In addition, a big advantage of these shows, especially BAU, is that many commercial officers from the Canadian Embassies throughout Europe attend and are a great source of information for the exhibiting Canadian companies. Attending these shows in Europe also made me realize one market that is a somewhat forgotten post – Switzerland. It might not be the most populated country in Europe, but it has one of the highest purchasing powers. If you are interested in looking into this smaller European market, you can contact Werner Naef (werner.naef@dfait-maeci.gc.ca) at the Canadian Embassy in Bern, Switzerland. Over the next few weeks I will be attending building shows in the Netherlands and Belgium to look for potential for Canadian value-added wood products. In late May, Interzum will bring together the European furniture industry in Cologne, Germany. So have in mind what you just learned about the location of a show and how much it tells us about the market it focuses on. Suppliers of dimension lumber, cut to size components, value added products, and especially flooring (if 14-16mm thick, 83mm and wider, unfinished) should seriously consider attending Interzum, as it is one of the biggest furniture supply shows in Europe. BC Wood will be there to help you.
Update on the Members Only Site
NEW BC Wood Online Resource Centre Library You can access this online library by logging onto the Members Only site with your user ID and password. (please contact the BC Wood office if you do not have this information). Once you are in the Members Only section, simply scroll down and select the Resource Centre link and then find the Online Library option from the right menu. If you need some help on how to use the database, you can select the option of "How to Use the Online Library" from the right side menu. Once you have selected the topic that you would like to search, the database will return the title, date, category, and description of the items that match your search query. Our Market Research Department will then contact you on the status of your request. If we have the report in PDF format it will be emailed to you, otherwise, we will send it to you in the mail. As always, BC Wood still lists many reports that can be directly downloaded to your computer right from the Members Only section of the BC Wood website. These reports are located in the Market Intelligence section under Market Reports, and in the BC Wood Marketing Programs area, under each country’s Report section. All of the reports in this section are stored in PDF format for easy viewing or downloading. We hope you take advantage of this great new service. If you have any questions, please contact Mary Quinn at the BC Wood office.
New Reports in the BC Wood Resource Center Assessment of BC Opportunities in the US Mouldings Market - December 1997 Directory of Secondary Manufacturing of Wood Products in British Columbia - 2001 An Analysis of the Japanese Demand For Wood Products by Type, Species and Source - April 1997 An Overview of Log Home Manufacturing in British Columbia - December 1999 Secondary Manufacturing in British Columbia: A Regional Breakdown - December 1999 Secondary Manufacturing in Wood Products: A Guide to Writing a Business Plan - May 1996 The Structure and Economic Contribution of Secondary Manufacturing in British Columbia 1990 - 1999 Key U.S. Housing Market Opportunities and Contacts in Boston Key U.S. Housing Market Opportunities and Contacts in Chicago Key U.S. Housing Market Opportunities and Contacts in Dallas Key U.S. Housing Market Opportunties and Contacts in Seattle
Members Only Section Feature of the Month In this area you will find everything you wanted to know about the BC Wood library. What’s New in the Resource Center provides information on the newest reports, magazines, or items that are available to BC Wood members from the library. BC Wood Publications lists the many publications and periodicals that BC Wood subscribes to every year. Publication Articles list articles from the publications and periodicals that are subscribed to, that are of particular interest to our Members. If you see an article that catches your attention, you may request a copy of it from Mary Quinn, or come into the library to view the entire publication. The newest additions to this area are the Online Library and How to Use the Online Library. Let us know what you think!
The Chinese Furniture Market – Worth a Look?
The Chinese furniture industry is booming.
What does it mean?
What are the implications?
CSA Announces Workshop on Sustainable Forest Management What: CSA is offering two distinctive seminars on its Sustainable Forest Management Standard. These two seminars will provide attendees with an understanding of the new requirements of Canada's National Standard for Sustainable Forest Management. In addition, these seminars will provide an overview of CSA's recent additions to its Sustainable Forest Management Program - chain of custody and product marking. Attendees may choose to attend either one or both of the workshops, which include 'The New Requirements for CAN/CSA - Z809-2002 - Sustainable Forest Management' and 'Transitioning your SFM System to CAN/CSA - Z809-2002 Sustainable Forest Management.' Who: Peter Johnson is currently the Manager of CSA International's Forest Products Group. Peter has been a member of CSA's Sustainable Forest Management Technical Committee since 1995, and was a member of the Writing Committee for Z809-2002. Katie Altoft is currently a Project Manager at CSA, with responsibility for Sustainable Forest Management. She has participated internationally on the committee developing the ISO 14001 and 14004 Standards, as well as participating on numerous national committees in the area of Environmental Management. Teresa Borgiel is the Program Coordinator for CSA International's Forest Products Marking Program (FPMP). Teresa was instrumental in the development and implementation of the FPMP, and assists in the Program's delivery to the national and international marketplace.
Where: Session Time: 8:00 a.m. to 5:00 p.m.
For Information on this or other CSA seminars, or to register online:
BC Export Statistics for Value-Added Wood Products – November, 2002
Exports of BC value-added wood products to all countries, including the US, Japan, and the European Union, decreased in the month of November, 2002. In addition, exports of all BC origin products to all countries decreased 7.5% in November. Low commodity prices in the forest sector are the main reason for the decline. The value of softwood lumber shipments to the US is down 1.9% year to date to October, 2002, despite the fact that volumes exported are up 8%. As exports of softwood lumber are rising to the US, it has resulted is an oversupply of lumber in the market and consequently, a decline in price. Please note that value-added wood products include prefabricated houses, doors, windows, furniture, moulding, siding, etc. It does not include panel products, shakes, shingles, or any pulp and paper products. Value-added wood products exports to all countries in November 2002 totalled $74,959,000, down 14% from $87,203,000 in September, 2002. Exports of value-added wood products to the US decreased 14% from $74,216,000 in September, 2002 to $64,014,000 in November. BC value-added wood exports to Japan decreased 17% from September to November, to a total of $9,396,000. Exports to the European Union of BC value-added wood products also decreased 40% from $378,000 in September, 2002 to $225,000 in November, 2002. Source: BC Stats
Associate Member Profile: iTrade Finance Inc.
Tell me about iTrade Finance Inc.
Can you describe some of your services?
How can BC Wood Members benefit from your service?
What is your competitive advantage in the industry?
Who should members contact if they are interested in your service?
Why did you become an Associate Member of BC Wood?
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A vital part of becoming ‘Export Ready’ is submitting the marketing plan template. Now, BC Wood is offering you a one-time only opportunity to complete your Template. All you have to do is read your sector-specific User Guide and participate in one of the following three-hour workshops:
February 17, 2003 - Kelowna The cost to you is only $25.00, and includes dinner. You can register online or call the BC Wood office at 1-877-422-9663.
BC Wood is pleased to present the following upcoming Market Expansion Program Workshops: How to Select the Right People Writing Your Marketing Plan Template Workshop Clearing Goods Hassle Free Writing Your Marketing Plan Template Workshop Export Finance & Insurance Beyond Leads & Brochures Writing Your Marketing Plan Template Workshop Clearing Goods Hassle Free International Trade Research Export Finance & Insurance International Trade Research Export Finance & Insurance 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. 
We are pleased to welcome the following new BC Wood Members who have joined us since January 1, 2003: Stylecraft Kitchens Ltd., Trail - Cabinets Dan's Woodworking, Abbotsford - Specialty Items Seel Forest Products Ltd., Edgewater - Remanufactured Products (semi-finished) Akal Furniture Mfg. Ltd., Surrey - Furniture & Fixtures Logistics Custom Log Furniture, Abbotsford - Furniture & Fixtures Vanport Canada, Co., North Vancouver - Remanufactured Products (semi-finished)
Attention All BC Wood Members BC Wood is asking all members to send 20 copies of their company brochure to the BC Wood office. We keep these on file, as well as display them on our new display shelf at the Abbotsford office. Please send your brochures to: #1-31088 Peardonville Road
Housing Starts and Building Permits for Canada and USA
Canada Residential building permits in November declined 7.8% from October’s high, but still remain 30.8% higher than the average monthly level recorded in 2001. The value of non-residential permits increased 6.3% to $1.6 billion in November. These gains come primarily from increased construction in the medical and hospital category. British Columbia issued $497.2 million in building permits in November, 2002, with $345 million in the residential category and $152.2 in the non-residential category. Furthermore, the Vancouver area gave out $323.7 million worth of building permits and Abbotsford and Victoria issued $15.2 million and 39.1 million in permits respectively. For more information, you can visit the Statistics Canada website. Source: Statistics Canada
United States Single-family housing starts in December, 2002 were at a rate of 1,473,000, which is 4.9% above the November figure of 1,747,000. An estimated 1,726,300 housing units were authorized by building permits in 2002 and approximately 1,704,900 housing units were started in 2002, which is 6.4% above the 2001 figure. Source: US Census Bureau
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.
Our Approach:
Our Products:
Rob McDougall
M-J Cousins
Andrew Drury
Tradeshow Tips from Exhibitree As a BC Wood Associate Member, Exhibitree Display's goal is to assist companies in becoming "tradeshow ready" and prepared to professionally market your value-added wood products to growing international markets. Their services include exhibit design, graphic design, tradeshow marketing and planning, printing and laminating, transportation and installation, and rental and lease options. Exhibitree will be contributing to BC Wood News On-line by providing members with helpful tips and information on tradeshow exhibiting. The first set of tips will focus on selecting the right shows. Here are the first three tips:
Stay tuned for the next set of tips for selecting the right shows in the March issue.
APA Closes Offices APA, The Engineered Wood Association announced on January 24, 2003 that it will close its international offices in Japan, Mexico and the United Kingdom, effective March 10, and that it is making other organizational changes in response to market conditions and budget constraints imposed by membership and dues income declines. The full press release can be found in the Members Only section under "What's New".
Northeastern Retail Lumber Association Nikkei Architectural & Construction Materials Show Northwest Home Furnishings Show Southern China Reman Mission - Follow Up Homdex 2003 (Seoul Home Fair) For more information on these tradeshows, visit the BC Wood website or contact Jennifer Rose at
Consultants & Marketing Services
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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Old Country
Woodturning is a manufacturer of wood moulding accessories and
drapery hardware, including soft corners, base corners, rosettes, plinth
blocks, casing corners, corner blocks, universal base case and crown corners,
arch window casings, and drapery products. One of their newest projects
includes a rope twist moulding that will look like a spiral rope made of
wood. It can be used on crown and baseboard mouldings, kitchen cabinets
and chair rails. Old Country buys local green lumber and dries it in their
kiln, and once the wood is dry, they custom manufacture it to their
customers’ requirements, using even the smallest pieces of wood. Owning
their own kiln allows them easier access to the wood. "We used to buy the
wood on the open market and it was more difficult to obtain. Now that we
dry our own wood, we can buy it from the local mill," comments Dave
Conway.
In addition to
a new kiln, Old Country Woodturning’s plant includes a machine shop where
they build their own custom-made machinery. Dave considers it an advantage
that they can design and build their own production equipment, "If the
competition can’t buy the machines we make, then we are one step ahead of
them. This is definitely one of our competitive advantages."
iTrade Finance Inc. is a private sector export/import trade finance agency
owned and staffed by seasoned trade finance veterans. We finance purchase
orders. We tailor innovative financing solutions for small to medium sized
Canadian companies engaged in selling to foreign customers or purchasing
from suppliers outside Canada. Our normal maximum lending term is 6 months
and our funding is meant to bridge cash flow gaps between the
manufacturer/supplier and the end buyer/user. iTrade does not take security
in the usual sense, therefore; our funding compliments operating lines of
credit and other types of loans or leases available from chartered banks and
other lending institutions. iTrade was created in 1999 and since start-up, we
have funded over $200 million in transactions and 70% of our business is export
related.
Scotiabank Forestry Services Group specializes in bank financing for the forest industry.
| February 3, 2003 | Volume 2, Edition 9 |
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| Copyright 2003. BC Wood, All Rights Reserved. | |
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