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Message
from the CEO
Bill Downing
This
will be my last contribution to BC Wood’s newsletter
as CEO. On March 1st, I will be moving to Structurlam Products
in Penticton. It has been a privilege to lead BC Wood over
the past six and a half years. The staff, the board and the
members have been a pleasure to work with, even during some
very rocky times. I am proud of our accomplishments (e.g.,
over $100 million in incremental sales in the last five years)
and the future of BC Wood is very bright.
Going
forward, BC Wood is in an excellent position to provide an
exceptional level of service to its members. The province,
through Forestry Innovation Investment, is very supportive
of our activities and our federal partner, the Canada Wood
Export Program, has just been renewed for another two years.
In addition, I expect an announcement shortly on a new provincial
program that will specifically support organizations that
provide services to manufacturers of specialty wood products.
To guide BC Wood in the coming years, the board unanimously
voted to offer the CEO position to Mr. Brian Hawrysh. Brian
has accepted the challenge and I urge the membership to support
him in his new role.
Speaking
of member support, I encourage you to continue to demonstrate
your support for BC Wood through membership and participation.
Over the years, I have come to realize what a significant
asset BC Wood is for British Columbia. Many other regions
in Canada look to BC Wood as a model industry association.
However, as I have mentioned to those trying to emulate BC
Wood, our success is directly dependent on the level of "ownership"
that our members take in the organization. This ownership
does not materialize overnight; it has been built up through
almost twenty years of performance and trust. However, we
cannot become complacent and assume that BC Wood will always
be here – it needs your active support.
I
would also encourage you to provide your feedback to BC Wood
in writing. If you are pleased with a BC Wood event or a BC
Wood employee, a brief note is very appreciated. Those unsolicited
letters and e-mails, passing along a significant success that
was generated through BC Wood, are tremendously motivating
for the staff. On the other hand, if there is room for improvement,
BC Wood needs to know. BC Wood must always strive to provide
evermore value to its members, but the organization needs
to hear from you.
Thank
you for making my tenure at BC Wood a rewarding one. If you
would like to contact me in the future, my new e-mail address
is bdowning@structurlam.com
Bill's
Farewell
Randi
Walker
Hard
as it is to do, we’re saying good-by to Bill, after over
six years at the helm of BC Wood. Members and the Board joined
us on Tuesday the 20th to have a few cheers, say a few words
and congratulate Bill on his move to take over as CEO of Structurlam
in Penticton.
Roy Manion, on behalf of the board of directors, presented
Bill with two beautiful "Alder Cubes", designed
and made by our own Brent Comber.
Mark
Rufiange (Structurlam), Bill Reedy (Gorman Bros.) and Dennis
Mawhinney all shared some stories and Randi Walker (BC Wood),
on behalf of the staff, presented Bill with a new Mont Blanc
pen – to help him sign-up all that new business for Structurlam!
Bill’s
incredible enthusiasm and vision has brought BC Wood through
some very interesting and challenging times, and is leaving
a legacy that will ensure our ability to continue helping
the value-added wood products industry grow and prosper.
From all of us Bill - Thank-you for everything and good luck!
US
Market Update
Dave Farley
IBS
2007
BC Wood attended with members IBS at Orlando, Florida in Jan,
2007. This is world’s largest trade show for residential
and light commercial building. Over 100,000 attendees present
at the event and about 1500 exhibitors. Members that participated
included interior finished products, pre built homes, timber
frame homes, and exterior cladding products. BC Wood partnered
with the Canadian Wood Council (CWC) in a different location
at the show from last year. This location provided better,
more qualified contacts and a better environment to communicate
with customers. Members were happily surprised at the level
of attendance matching years past, when the US housing market
was at its strongest.
Next
year will be the last year in Orlando with the show thankfully
moving back to the West Coast in Las Vegas, Nevada for 2009.
For information, contact Dave Farley at dfarley@bcwood.com
or 604-882-7100.
Hawaii
– BIA Hawaii
The Building Industry Association of Hawaii’s annual
trade show is an excellent opportunity for BC Wood members
to reach out to the key buyers in the Hawaiian market. BC
Wood recently exhibited at the show with a group of member
companies from January 21st to 25th, 2007. Participating members
in the prefabricated homes and finished wood products sector
had a very good response from attendees at this well-attended
event.
Billy
Carpenter from Vindegarde Wine Cellars attended this event
for the first time and was very impressed with the show. "There
was a genuine interest in the attendees at the show and I
made some good contacts. I will be returning in March to follow-up
with builders and contractors that I made connections with
on the islands of Kona, Oahu, and Mauii."
While
the rest of the US market has experienced a recent flattening
of home sales, industry analysts believe that the Hawaiian
market is insulated with continuingly strong land and housing
prices. Hawaii remains a predominantly strong vacation and
secondary home market with many opportunities for high-end
wood products used in the residential construction sector.
BC Wood is currently completing a new market study that will
be available in April 2007. This study will cover in detail
the market opportunities, key buyers, decision makers, and
influencers on each of the Hawaiian Islands. Contact Dave
Farley at dfarley@bcwood.com
for more information.
LMB
Expo 2007 - Boston
The North East Retail Lumberman Association held it’s
annual trade show, the Lumber and Building Materials Expo,
from January 29th to February 2nd in Boston, Massachusetts.
This was a strong opportunity for BC Wood members looking
at the New England region in the United States. BC Wood attended
the show for the first time, along with several participating
members that produce remanufactured lumber and millwork products.
Although
this was BC Wood’s first time exhibiting at the show,
many member companies from BC have been attending for the
past several years. Participants of the show, whether exhibiting
or attending, include the key distributors, wholesalers, and
builders of the Northeast region. Overall, the interest in
higher-end finishing products was strong and many of the key
distributors are carrying products from British Columbia.
High-end exterior wood products and remanufactured cedar lumber
are also in strong demand in this region. For more information,
please contact David Pao at dpao@bcwood.com
or 604-882-7100.
Mexican
Market Update
David
Pao
BC
Wood has just completed the first trade mission to bring member
companies to explore product opportunities in the Mexican
market. After spending a week between Mexico City and Guadalajara,
our group was left very impressed with the level of product
manufacturing, distribution, and the quality of competing
products. During this mission, we had a busy schedule meeting
with key importers, distributors, wholesalers, and manufacturers
of wood products in the Mexican market. In addition to meeting
with companies, BC Wood also met with other trade associations
involved with building construction, wood importing, and furniture
manufacturing such as COMACO, IMEXFOR, and the National Wood
Chamber, to learn more about the opportunities and challenges
for BC manufacturers entering Mexico.
Visits
to several of the importers and distributors allowed us to
see some of the vast warehouses and highly organized and professional
operations. Some of the larger importers had over 18,000 square
feet of storage capacity and maintained a nearly spotless
facility. Mexico is currently importing large amounts of wood,
but most of it is coming from competing markets in South America
and the United States as well as domestic Mexico.
We
saw many examples of competing tropical hardwoods and softwoods
from South America that were readily available in high grades
and competitive prices. Pine is definitely the dominant softwood
and is used in many applications from pallet construction
to furniture manufacturing. Many importers that we met with
said their suppliers were slowing and that they were interested
in finding new sources of wood. One of the biggest challenges
in working with Canada is the Mexican demand for lumber sizes
not normally run by Canadian companies.
At the end of the mission, BC Wood members were very excited
about the opportunities in the Mexican market. However, there
are many challenges such as size, price, and quality that
Canadian companies must consider before entering this market.
BC Wood will continue to explore the Mexican market and develop
new marketing activities for members to take advantage of.
This
upcoming June, BC Wood is planning to exhibit at the Techno
Mueble trade show in Guadalajara. This show focuses on the
suppliers to the furniture industry and will be an excellent
opportunity for members to meet manufacturers, distributors,
and importers to promote BC wood products into Mexico. For
more information on the Mexico program and the Techno Mueble
Expo this summer, please contact David Pao at dpao@bcwood.com
or 604-882-7100.
China
Market Update
WoodMac
China 2007 – Timber and Wood Products for Furniture and
Building Industries Exhibition
China’s
premier event for the woodworking industry has over 550 exhibitors
and attracts 20,000 plus trade only visitors from more than
15 countries. The three in one, WoodMac, WoodBuild and Furniturtek
show, features wood products used in industrial applications
including construction, landscaping and manufacturing of furniture,
giftware and interior finished products. WoodMac also features
the latest in forestry and woodworking machinery & supplies.
BC Wood will coordinate the activities of a small group of
member companies to participate in this trade show and an
extended one-day tour of customers in the Shanghai region.
50
% Savings in Travel and Show Costs
BC Wood will coordinate a tradeshow package that will assist
participating companies with travel costs, booth rentals,
freight, and ground transportation.
Who Should Go?
Companies that can supply:
• Outdoor Wood including PT and WRC lumber and timbers
• Softwood/Hardwood Industrial lumber and components
• Building materials and dimensional lumber
Interested?
Space is limited, so please email Brian Hawrysh bhawrysh@bcwood.com
or David Pao dpao@bcwood.com
to register for BC Wood’s program at the WoodMac Show
in Shanghai.
Member
Spotlight
Old
Country Woodturning – Turning Waste into Benefit
Last
June, Dave Conway from Old Country Wood Turning discovered
a way to turn the sawdust waste from his manufacturing plant
in Victoria, into a money saving source of fuel for his entire
operation.
From
an environmental point of view, the advantages of wood fuel
are obvious. While our forests regrow, oil and gas wells won’t.
Thanks to technically well-engineered and innovative products, biomass
has become an attractive energy source when compared to fossil
fuels, and if you have raw fuel materials at hand, it becomes
not just a viable proposition, but an excellent investment.
Conway
had already started renovations on his new 20,000 square foot
plant, so the timing couldn’t have been better. He contacted
the folks at Mawera Canada, (located in Revelstoke and headquartered
in Austria) and they agreed to a site visit to determine Old
Country’s needs and do an assessment.
By
August, they had their new furnace installed and with the
rest of the equipment ordered, were up and running by October.
Old
Country took the sawdust they were paying to have hauled away
and with the help Mawera, turned it into an effective and
efficient fuel source that now heats the entire plant through
an in-floor heating system (much more productive than any
kind of venting/fan system – particularly in a wood shop!),
runs his kiln and keeps his offices cozy.
Maintenance is straightforward and minimal, and is carried
out in-house. Conway figures he’s saving between $5,000
to $7,000 a month – plus they don’t have to pay
for waste removal.
Conway
said he’d be happy to talk to any of our members about
what they have accomplished at Old Country – or you can
talk to the professionals at Mawera, now a new BC Wood Associate
Member.
Dave
Conway
Old Country Wood Turning
250-361-4388
d-conway@shaw.ca
Cornelius
Suchy
Mawera Canada
250-814-7184
info@mawera.ca
WSN
Inquiries
David
Pao
BC
Wood’s Wood Supply Network (WSN) is an online inquiry
system that matches buyers with member companies. Buyers input
their requirements and the inquiry is qualified and distributed
to suitable manufacturers. Members can always access current
inquiry information by visiting www.bcwood.com. Here is a
summary of some of the recent inquiries processed:
Inquiry #7728
Market – China
Inquiry Type – Remanufactured Products
Product Description/Details:Looking for lumber for construction
and furtniture manufacturing Quantity – 200 cubic meters
Inquiry
#7727
Market – Ottawa
Inquiry Type – Remanufactured Products
Product Description/Details: KD SPF, Rough finish, Appearance
GradeQuantity – 2000 cubic meters
Inquiry
#7729
Market – Japan
Inquiry Type – Remanufactured Products
Product Description/Details:SPF, no loose knots, dried, no
warps, twists
Inquiry
#7706
Market – Europe
Inquiry Type – Remanufactured Products
Product Description/Details:WRC, Douglas Fir. Material will
require heat treating certificateQuantity – Container
20 ft
For
more information on the WSN, please visit www.bcwood.com
or contact David Pao at dpao@bcwood.com
or 604-882-7100.
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Announcement:
BC Wood's New CEO
Roy Manion, President, BC Wood
On
behalf of the Board of Directors, I am pleased to announce
the appointment of Brian Hawrysh to the position of CEO of
BC Wood effective March 1, 2007.
Brian
has been with BC Wood for the past two years as of Director
of Remanufactured and Engineered Wood Products, as well as
overseeing delivery of the Asian Market programs for BC Wood
members. During this time, he also worked very closely with
his predecessor, Bill Downing, developing relationships with
all our key partners, so the transition in BC Wood’s
CEOs will be seamless.
As
many of you know, Brian had previously been with BC Wood from
1992 to 1997 in the position of Manager of Market & Product
Development.
Between
his times at BC Wood, Brian worked in the private sector of
our industry with a number of our member companies in senior
sales, marketing and management positions.
Brian’s
passion for our industry, his background and experience make
him ideally suited for his new role and I am confident that
our association is in very good hands.
Please
join me in welcoming Brian to the very challenging role of
CEO of BC Wood. We wish him much success in guiding our association
into the future.
Global
Buyers Mission 2007
Randi Walker
It’s
time to plan for your participation at our 2007 Global Buyers
Mission™! September 13th to 15th, we will be back in
Whistler (by popular demand), with an anticipated 200 international
buyers of finished materials, building supplies and remanufacturing
products.
The
majority of our buyers will come from Japan, China, Korea,
Taiwan, Europe and the US and will include wholesale distributors,
contractors, builders and developers, as well as a targeted
group of architects from the Pacific Northwest. To provide
just the right incentive, we are looking at delivering an
educational/credits program for our targeted PNW architects,
guaranteeing excellent participation!
Our
staff members in China, Japan, Korea and Europe have already
started their recruiting campaigns to find the most qualified
buyers in their markets. Last year, we had 70% new buyers
from the previous year and our target is to match that this
year. That means that you are guaranteed to meet new potential
customers – even if you have participated in the last
three GBM’s!
For
those of you who have not participated in the GBM in the past,
this is an outstanding opportunity to develop new contacts
and grow new export business.
We
also plan to deliver another Members-Only afternoon, with
International Market Reports and our Annual General Meeting,
prior to the Buyers Registration and Welcome Reception on
Thursday, the 13th.
Plus,
we are making some other changes to the program, based on
your feedback and requests including: better social/networking
opportunities; a great Saturday afternoon tour program with
a well know local builder; lower participation fees for members
and inclusion of Saturday barbeque for ALL participants; and
more!
Watch
the mail for your invitation to participate, or click HERE
to download the Exhibitor Registration Forms. Exhibit space
is limited and will be available on a first-come / first-served
basis. If you haven’t already registered, sign-up now
to avoid disappointment!
Comments
from the 2006 GBM:
"Excellent,
exceeded my expectations." – Robert Sandve, Haida
Forest Products
“I
thought this was an excellent gathering. The event was just
great; I liked it better than the Traders Mart in that it
was much better for building new relationships.” Dan
Cherry, Colorado Forest Industries, Denver, CO
"Well
organized event bringing buyers and sellers together in a
resort venue. Great ambiance for international visitors."
– Dave Baxter, Trout Creek Enterprises
“There
were plenty of western red cedar exhibitors there, and I enjoyed
the show immensely. I was able to accomplish a great deal.
It was definitely worthwhile for me, and again, thanks to
you and your staff for the much appreciated invitation to
a great event!” - Rick Fischer, Mid-America Cedar
“I’m
impressed with how well organized everything was. We have
several opportunities in front of us thanks directly to the
show. I’m going to sign up again for next year.”
– Gerald Chang, Sauder Mouldings, Inc.
“Not
only were there opportunities we hope to explore, we truly
enjoyed meeting and networking with your members. You have
a first rate group of which you must be proud.” - Blair
Douglas, NF Douglas Lumber, Caledonia, Nova Scotia
“This
was a very well run meeting. My personal focus is cedar and
I networked with many people that I usually cannot see all
in one place. I am currently working on a new product for
me that could result is $1,000,000 in new sales on a value-added
product. Thank you for inviting me - I feel it will be beneficial
for all parties.” - John Cole, American International
Forest Products
“Everything
was very well organized – I received a lot of information.
The GBM was a great pleasure for me!" Raymond Blaauw,
Timmerbedrifj Blaauw, Netherlands
“We
felt this was an extremely well done, professional event.
We couldn’t have been happier and are very optimistic
about how things will turn out.” - Archie McMurchy, Mountainview
Designs Ltd.
“Very
good show…hope to be back next year!” – Denis
Dube, J.D Irving Ltd., Clair, NB
"Thank
you for inviting us to the Global Buyers Mission in Whistler.
We met many old friends and many new suppliers. We did concluded
business with one of the exhibitors and the first order we
had signed is US$ 52,464.39. If the quality is OK, we will
place standing order with them. Really appreciate your help
during the show and looking forward to working with you in
the future or attending other trade shows organized by BC
Wood." Marcus Leung, Jireh Lumber Inc. China.
Japan
Market Update
Jim Ivanoff
New
Dunnage Regulations in Japan Take Effect April 1st
To
reduce the risks associated with pest infected wood packaging
materials, the Japanese government has amended its Import
Plant Quarantine Regulations and these will come into effect
April 1st, 2007. With a view to harmonizing its regulations
with international standards, the definitions of wood packaging
materials and their regulations will become equivalent to
those of ISPM No.15. Wood packaging materials treated and
certified according to ISPM No.15 will not be subject to import
quarantine procedures. Wood packaging material without the
mark (Annex II, ISPM No.15) will be inspected at ports of
entry by plant quarantine officers for confirmation of compliance
with the regulations. Detection of pests will require disinfesting,
incineration, or re-shipping the materials by consignee’s
choice. Costs for such procedures will also be passed on to
the consignee.
The
regulations cover wood packaging material such as pallets,
dunnage, crating, packing blocks, drums, cases, load boards,
pallet collars, and skids which can be present in almost any
imported consignment, including consignments which would not
normally be the target of phytosanitary inspections. Wood
packaging made wholly of wood-based products such as plywood,
particle board, oriented strand board or veneer that have
been created using glue, heat and pressure or a combination
thereof should be considered sufficiently processed to have
eliminated the risk associated with the raw wood. It is unlikely
to be infested by raw wood pests during its use and therefore
should not be regulated for these pests. Wood packaging material
such as veneer peeler cores, sawdust, wood wool, and shavings,
and raw wood cut into thin pieces may not be pathways for
introduction of quarantine pests and should not be regulated
unless technically justified.
The
BC Wood Japan office has more detailed documents on the new
regulations, so anyone requiring more information is asked
to contact Jim Ivanoff (lvanoff@canadawood.jp).
Russia
Aiming to Ban the Export of Raw Logs
In
early February the Russian government threw the Japanese wood
industry into panic by announcing a series of increases on
the export tax rates for raw logs, reaching a whooping 80%
by January 2009. The current rate of 6.5% will be raised to
20% by this July, then to 25% by January 2008 before the final
hike to 80%. This announcement is seen as the introduction
of a policy banning the export of raw logs in order to promote
value-added industries within Russia’s borders.
Currently
Japan imports about 5 million m3 of Russian logs annually
and these new tax rates are expected to have a devastating
effect, especially on Japanese plywood producers. However,
Russian fibre is being used for everything from flooring and
paneling to log homes and laminated lumber so the impact will
be much more widely felt. China is an even bigger user of
Russian wood, importing 22 million m3 a year, so Japanese
importers are also extremely concerned that they will no longer
be able to source low-cost products from China. Many European
companies also use wood from Russia so even products from
Europe are being threatened.
The
ramifications of this announcement have Japanese wood importers
and manufacturers asking "Where is the wood going to
come from?" Not only are price increases going to have
to be accepted, but Japan will also need to scour the world
for new supplies. With illegal logging and existing supply
issues in Southeast Asia, many industry people here feel that
it could once again be Canada’s turn to lead this market.
While logs and lumber will be needed by the Japanese wood
manufacturers, the building products industry is looking for
products with a high-level of finishing. One importer told
me that the Japanese distribution network has become accustomed
to handling products from China and Europe that can be basically
shipped from the warehouse to the worksite with little need
for additional processing in Japan. They are hoping that Canada
will be able to supply more of such value-added products.
Canada's
Consulates in Fukuoka and Osaka to be Closed April 2nd
After a review of Canada’s diplomatic missions abroad
with the aim of saving costs, the new federal government has
decided to close four consulates around the world including
two in Japan. Despite Japan being Canada’s second largest
customer after the United States and having an economy that
is larger than the rest of Asia combined, the consulates in
Osaka and Fukuoka will be closed for good as of April 2nd.
The Japanese industry and media were particularly shocked
about the Osaka consulate’s closing as it covers the
second largest economic region in Japan after Tokyo. In fact,
Canada will be the only G8 country without representation
in this key market.
While the Embassy in Tokyo will try to maintain service to
these regions, it is clear that BC Wood and its Canada Wood
partners will have to do more to reach out to these markets
on behalf of our industry. Through a seminar in Osaka and
a trade show in Kyushu this month, BC Wood will be letting
local industry people that we are still here and able to support
their inquiries for Canadian products. We will also begin
looking at joint Canada Wood events and activities for the
coming fiscal year, to further increase Canada’s exposure
in these local markets.
For
more information, contact Jim Ivanoff at ivanoff@canadawood.jp
Upcoming
Shows and Events
March,
2007
Nikkei
Architecture and Construction Materials 2007
Location: Tokyo Japan
Date: March 6, 2007
AHBA
Home and Remodeling Show
Location: Anchorage, United States
Date: March 16, 2007
Kita-Kyushu
Total Living Show
Location: Kita Kyushu, Japan
Date: March 16, 2007
Anchorage
Home & Remodeling Show
Location: Anchorage United States
Date: March 17, 2007
WoodMAC
/ WoodBuild China
Location: Shanghai, China
Date: March 20, 2007
April,
2007
Log & Timber Home Show
Location: Valley Forge, United States
Date: April 27, 2007
New
BC Wood Members
Mawera
is a leading manufacturer of advanced wood-fuelled heating
systems. Main applications in the remanufacturing industry
include heating workshops, kilns, veneer plants etc. MAWERA
has more than 4,000 installations world wide and is looking
at 30 years of experience. As a member of the Viessmann group
with a 25 years presence in Canada, we are able to service
plants effectively.
Cornelius
Suchy
cornelius.suchy@mawera.ca
www.mawera.ca
The
Finger Jointer Specialist for more than 15 years, offering
complete manual or automated solutions for value added recovery
processes. Complete processing lines include: short block
feeder, scanner, automatic crosscut saw, wane-up system, finger
jointer, MSR grading machine, stacker and more. For value-added
wood processing, contact the specialist.
Martin Desmarais
info@conceptionrp.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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