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Message
from the CEO
Brian Hawrysh, CEO
 As
many of you know, this has been a very busy time for the BC
Wood staff. January heralded in not just the New Year, but
also a new round of proposal submissions to our provincial
and federal government funding partners.
After
consulting with our Sector Advisory Boards and other industry
associations in November and December, we put together a comprehensive
and collaborative marketing proposal for each of the target
markets funded by our government partners. This year, we submitted
eight separate proposals for marketing and market research
projects in China, Korea, Japan, European Union, United States,
Vietnam and the Global Buyers Mission.
These
proposals are being reviewed by our partners (Forestry Innovation
Investment - FII and the Canada Wood Export program - CWEP)
and by the end of March; we will be able to announce our approved
program activities for each market. I would like to thank
our staff for an outstanding effort in researching and preparing
these extensive proposals, which we know will greatly benefit
our membership in the coming year.
On
another note, I am very pleased to welcome Mr. Scott Thompson,
our new Manager for the Business Innovation Program. You have
heard BC Wood talk about the new program for value-added wood
manufacturers for almost a year, and Minister Coleman formally
announced the program funding during the Global Buyers Mission
in September. This program has been developed to assist value-added
wood products industry in the province with a variety of services
focusing on specific needs of companies including business,
capital investment, marketing, technical and product design
and development and a number of other business building activities.
We
will be meeting one-on-one with industry over the next number
of months to assess your needs and determine what assistance
we can provide to help you grow your business. It will be
a very busy year ahead, with many new opportunities and challenges
for all of us. I truly believe that this may be BC Wood's
most productive and exciting year, in our 19-year history!
please
do not hesitate to contact me directly at bhawrysh@bcwood.com
or 604-882-7100.
Solutions
For Wood Seminar
March
18, 2008
Better Products, Better Profit: A Seminar on Product Development
Surrey, BC
There
is no single activity in your business that is more critical
to your long-term success than product development. When done
well, it can result in highly marketable, differentiated products.
Come
to this valuable event to hear Guy Belletête, General
Manager of 'The Institute for Product Development' (IDP).
Guy has worked with a wide variety of industries in the area
of product design and development technologies and has over
25 years of experience related to product design and development.
Along with Guy, you will hear from fellow wood product manufacturers
as they describe how they develop products. As well, participants
of this seminar will receive an overview of the result of
our latest research on trends for the cabinet, door and window,
and outdoor products markets. The upcoming "Better Products,
Better Profits" workshop will help you make the most
out of your product development efforts.
Joins
us, and improve your product development success.
Please
contact Stephanie at 604-222-5663, or visit www.forintek.ca
or www.solutionsforwood.ca
Japan
Market Update
Jim Ivanoff
Cabin
Fever
Recently I had the privilege to visit a "cabin"
being built outside of Tokyo. I use the term cabin lightly
as the structure stretched over 30,000 ft2 and contained four
bath tubs carved out of stone, two of which weighed over 4
tonnes each! Other amenities include an industrial kitchen,
an indoor tennis court and accompanying indoor swimming pool,
a fitness gym, living quarters for the property manager and
his family, as well as a full teppan-yaki grille and counter.
The
owner of this project loves wood and thus wanted to use as
much natural wood products as possible despite the fact that
the structure had to be built with concrete. The project manager
came to BC Wood's Japan office for help in looking for wood
products that would meet his boss' demanding specifications.
BC Wood staff in Japan and Langley then worked together to
introduce member products. Having seen the almost completed
building, I can say that it is a true monument to the beauty
of British Columbia Douglas fir and yellow cedar as well as
craftsmanship and ingenuity.
While
in almost every way this project was an extreme, for me the
most exciting part of it was that we are seeing more and more
interest in Canadian products from such high-end projects.
In the past, demand in Japan for Canadian building materials
came from the "imported housing" market, but this
segment has shrunk along with the popularity of 2x4 homes
as well as pressure from lower-priced Chinese products. However,
as the Japanese economy has been strengthening and the "new-wealthy"
have been more willing to spread their money around, there
has been more and more demand for high-end condominiums and
houses as well as resort properties in exclusive areas like
Nagano.
To
get our members in front of such projects, BC Wood started
shifting its resources in Japan this past year. For example,
we took part in 100% Design Tokyo for the first time last
fall and we are now organizing seminars in Nagoya and Tokyo
specifically targeting architects right before the March Nikkei
Show. Stay tuned for more great opportunities to reach out
this market through new BC Wood activities coming in the new
fiscal year.
Snap
Shots
-The final months of 2007 showed a remarkable comeback for
Japan's GDP growth. Despite the negative effects of the slowdown
in the US economy, increased exports to Europe, China, and
other parts of Asia helped the Japanese economy grow by 3.7%
in the fourth quarter. In addition to the strength of exports,
Japanese companies also helped push up growth by increasing
their capital investments. This is a good indication of their
continued optimism that demand will strengthen further going
forward. The government expects that the economy will get
another boost from the second quarter of 2008 as the negative
effects of the new building regulations start to dissipate.
-Speaking
of these building regulations, the government eased some of
the procedures in November and builders are already reporting
an improvement in getting building permits in a timely manner.
As both the industry and media have been harshly critical
of the effects of last year's regulatory changes on the housing
market and the economy overall, the government recently also
announced that the plan to extend the tougher building permit
application process to 2 storey wooden structures will be
delayed from the previously announced launch of November 2008.
As a new start date was not mentioned in this announcement,
some speculate that it may in fact never be implemented. In
any case, the Japanese housing industry is looking forward
to a much better year in 2008.
Korea
Market Update
Gary
Tattrie
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HOUSING
BRAND FAIR
BC Wood staff and 10 member companies recently exhibited at
the Housing Brand Fair in Seoul, Korea (Feb 13-17). Our Korea
director, Mr. JC Lee designed a mailer campaign which was
sent to approximately 2,500 companies announcing our presence
at the show, inviting them to visit our member booths, &
included 2 complementary admission tickets.
The
48 million people in South Korea generate the 14th largest
economy in the world which builds approx 400,000 housing units
per year, of which single family houses (all types) are currently
about 5-6%. Due to changing demographics, by 2020 total housing
starts will likely drop to 300-350,000 units/year but the
portion of single family is projected to grow to 10-20%.
A
single family wood frame house is a "dream" for
many Koreans, but many of the higher end consumers are realizing
that dream. Single family Wood Frame Construction (WFC - aka
2x4) construction permits have increased to over 8,000 units/year
and it is estimated that over 6,000 units were started/built
in 2007. Wood is seen as a positive and natural (healthy)
product. Consumption is increasing in exterior applications
(treated/untreated) and is strong in interior applications
(finishing materials). This trend is projected to continue
& grow as WFC continues to grow.
UPDATING
MARKET STRATEGY
The Canada Wood Group is currently updating the Market Development
Strategy for Korea. The consulting firm Woodbridge Associates
Inc. has been hired to study the market and will have a final
report submitted by early April, 2008. Brian Hawrysh &
Gary Tattrie from BC Wood currently sit on the steering committee
for this project.
Cedarland
and Silva Panels Make it to the BC Canada Pavilion in Beijing
Randi
Walker
This
is a storyline that started many months ago - and a success
that almost happened by chance.
Orca
Creative, the designer for the BC Canada Pavilion in Beijing,
was looking for wood products for the Pavilion including ideas
on how to build a design they had for the arches. We met them
in their offices to discuss some options and over the next
couple of weeks we introduced to Orca a variety of products
and species. Included in this assortment were Silva Panel
samples Henrik Laursen of Silva Panel Canada supplied to us,
specifically for the pavilion arches.
During
one of our meetings, Ben Einer, Orca's lead designer on this
project, asked us if we knew of anywhere they could work on
a massive downed tree from Stanley Park. Modeled after Stanley
Park's world famous Hollow Tree, the downed tree needed to
be hollowed out and shaped. It would eventually become the
"Spirit Tree", a feature item for display in the
BC Canada Pavilion. However, Orca had no place to do this
work and so Ben asked us if we could assist in locating a
facility where the tree could be shipped that was suitable
for the work that had to be done.
A
few days elapsed when Harald Mischke from Cedarland came to
our office to drop off some additional Silva Panel samples.
We brought up the issue with needing a space for working on
the tree. Harald immediately stated that he had lots of suitable
space and that Orca should come out and have a look. Arrangements
were made and Ben Einer arrived on Harald's doorstep to view
his facility. While there, Ben saw the full sized Silva Panels
on display. Ben and Harald got to chatting and before you
know it, Harald was quoting on the wood for arches!
Not
to say it was a done deal, since the back and forth on price,
delivery and technical issues took literally months (with
a February delivery deadline, this was getting tight!) Harald
took the plunge and started processing the order - before
he had the signed contract. However, he felt confident this
was going to happen and did not want to delay the delivery
waiting for "I's" to be dotted and "t's"
to be crossed.
As
you can see from the diagrams, this is going to be a truly
wonderful architectural feature using Western Red Cedar panels
in a way that had not been previously thought of. Each of
the 13 arches is slightly different and each is made of eight
sections that will be fitted together and constructed on-site.
The average length of the arch is 42 metres, with a 14 metre
height.
These
Silva panels will also be used in their more traditional format,
as the ceiling of the VIP lounge in the Pavilion, thanks to
a donation by Harald.
Silva
Panel will be joined in the BC Canada Pavilion by products
from 4 other BC Wood Members in what will become a great international
showcase of BC's value-added wood products.
Upcoming
Events
FPInnovations-Forintek
Division is proud to announce Think Light, Canada’s first
seminar on lightweight panels.
March
11, 2008
8:00 AM – 6:00 PM
Sheraton Vancouver Guildford Hotel
Surrey, BC
Lightweight
panels, also known as Honeycomb or Foam Core panels, consist
of two thin cover layers and a very light core layer.
This
seminar will provide insight into innovations related to lightweight
panel use for the wood products industry. Topics are: potential
markets, manufacturing, assembly techniques and challenges
in innovation.
Manufacturers
of furniture, kitchen cabinets, doors and windows, particleboard,
cardboard products, lightweight materials, hardware suppliers,
equipment manufacturers, trade associations, consultants,
research and training centres, and government representatives
will benefit by attending this seminar.
This
event is a first in North America!
The
event is an international collaboration between FPInnovations-Forintek,
the German technical magazine BM, and Martin Stosch, Professor
and Director of “lightweight.network”, a network
dedicated to the use of lightweight panels in Germany. A summary
CD of the presentations will be distributed at the event.
The
Straight Woods - the online newsletter of FP Innovations
Solutions for Wood program.
In
this issue we feature a number of tips on product development
and how to watch for trends to help keep your business on
top. I would also like to invite you to attend one of the
upcoming workshops scheduled for March. These events have
shown to be very beneficial to the companies attending them.
Please
contact Stephanie at 604-222-5663, or visit
www.forintek.ca. or www.solutionsforwood.ca
CAWP Open House
The Centre for Advanced Wood Processing is hosting an Open
House on Friday, March 28th and would be pleased if you could
join us. Information about this event is listed in the message
below and in the attached invitation. Please feel free to
forward the invitation to any
colleagues who may be interested in attending.
Date:
March 28, 2008
Time: 9:00 am – 5:00 pm
Venue: Centre for Advanced Wood Processing
2900 – 2424 Main Mall, University of British Columbia
Contact:
Coral Voss – coral.voss@ubc.ca
Jason Chiu – jason.chiu@ubc.ca
WSN
Inquiry System
David
Pao
As
we continue to work at improving the quality of inquiries
circulated on the WSN system, it is good to hear that some
real business is being generated offshore. However, it is
a work in progress and your support and feedback is appreciated.
Here
a few of the most recent inquiries on our system:
Inquiry
#7966
Market – Germany
Inquiry Type – Remanufactured Products
Product Description/Details: 20-30,000 m2 VG DougFr veneer,
‘AA’. ‘A’ and maybe some ‘B’
to find use doors, panels and furniture in a hotel-fit out
job.
Inquiry
#7960
Market – Japan
Inquiry Type – Remanufactured Products for shed materials
Product Description/Details:WRC lumber 5-10 m3 monthly, clear,
fine grain
Inquiry
#7949
Market – Korea
Inquiry Type – Remanufactured Products
Product Description/Details:SPF, No.1 grade, select tight
knots, KD-HT
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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Business
Innovation Program
Scott Thompson
It
is with great pleasure that I have joined the BC Wood team
as Manager of the Business Innovation Program.
I
bring significant lumber industry experience to this position
having worked on the BC coast for 16 years. I have been directly
and indirectly involved with the value-added industry during
this time and have a great appreciation for the process that
value-added producers work through on a daily basis.
The
Business Innovation Program as announced in September 2007
is a new program aimed at assisting small and medium sized
value-added wood products companies with their business development
needs. The program is available to all value added producers
across the province and will provide a wide range of business
development services. There are approximately 700 specialty
wood products companies in B.C. These businesses employ 20,000
people and generate approximately $5 billion in sales.
I
look forward to meeting with the value-added producers across
the province and expect that this new program will greatly
assist those companies with their business development. Please
visit our new website at www.iforwood.com
for more information.
Please do not hesitate to call me regarding the Business Innovation
Program. I can be reached at 604-882-7100 or sthompson@bcwood.com.
European
Market Update
Daryl Holmes
The
European, UK, and Ireland market for wood products remains
a mature and highly competitive sector, with Europeans enjoying
access to wood products from all around the world. Opportunities
and challenges for British Columbia wood product manufacturers
are numerous and the importance of this market to BC's value-added
wood products sector cannot be understated. Manufacturers
agree that their long-term growth and profitability is dependent
upon the maintenance and development of new markets and diversifying
away from the primary reliance on the U.S. marketplace. Key
product sectors in targeted markets within Europe (Pre-Built
housing, Log & Timber Frame structures, Remanufactured
products, and Furniture) are in demand in select EU and UK
countries. In order to maximize competitive advantages enjoyed
by these sectors, BC Wood will continue to be aggressive in
its marketing initiatives.
For
fiscal 2008/09 BC Wood will continue to focus on key markets
along with targeting new and developing opportunities in select
Eastern European countries. Recent research conducted by BC
Wood show that Russia, Croatia, Hungary & Czech Republic
have all been identified as countries that are ripe for further
investigation and engagement. To capitalize on these recent
findings and to explore the opportunities, BC Wood will again
organize a mission to select markets in Eastern Europe; tentatively
scheduled for June, 2008.
The
United Kingdom is Canada's fastest growing market for exports
after the USA, and is the third largest market for exports.
The UK has an existing wood culture, and Canada has been recognized
by the industry as a global leader in housing technology and
innovative building products. Along with England, the Scottish
marketplace has been identified as a niche market for our
cedar manufacturers and Log Home & Timber Frame producers
and this intelligence is the basis for our participation at
key trade events this year.
These
events get results! The strong brand recognition for BC's
value-added sector and the investment and commitment to this
market by BC Wood has enabled members to reap the rewards
of this initiative, in the form of increased sales and market
share.
Upcoming
shows and programs include: Scottish Home Builders Show, Glasgow
(May 17-18); Eastern European Mission, (June 2008); 100% Design
Show, London, England (Sept 18-21); Interbuild, Birmingham,
England, (October 26-30) and The Timber Show being held in
London, England, (March 2009). For more information on these
shows contact Daryl Holmes at dholmes@bcwood.com.
US
Market Update
Dave Farley
I
recently returned from a trip to Northern California where
I spent some time with our In- Market Representative, Mr.
Doug Auer. Doug and I toured numerous developments and met
with builders, architects and building product wholesalers
in both the Sacramento and the snowy Lake Tahoe region, which
was buried in over 8 feet of snow in the 4 days that I was
there. Upon returning, my impression was in stark contrast
to the reported doom and gloom being reported by the US media
throughout the country. The Lake Tahoe market is still busy
with numerous high-end developments currently underway. When
we walked on the job sites, significant building activity
was taking place as framers, roofers and finishing carpenters
were all busy trying to meet deadlines for their projects.
I
spoke with one of the top realtors in the region and asked
him his impression of the market. He mentioned that while
the low cost ($300,000 to $500,000) condo market was flat,
the medium to high-end properties ($ 750,000 and up) were
still selling well. He went on to state that in the month
of January, there were 19 homes sold in the Tahoe market.
This compares to 25 for the same month two years earlier when
the market was at its peak.
When
viewed from Canada, one could easily assume that the US market
is in trouble. It seems that the media, with its constant
focus on the sub prime mortgage fiasco, is trying to will
the US economy into a recession. This constant negative reporting
is eroding consumer confidence and curtailing consumer spending.
But on the ground you get a different story. While California
in general has been impacted by the flattening of the economy,
select markets such as the Tahoe/Truckee region remain relatively
strong.
I
recommend that members utilize the expertise and contacts
of all our in-market reps and in particular, Doug Auer to
gain insight and knowledge in their markets. Opportunity remains
in the US - you just may have to dig a little deeper to find
it.
China
Market Update
Gary
Tattrie
I
am currently on my way to Beijing, China, to attend the Woodmac
Trade Show from
March 7-10. Four of our members will be joining me in what
is one of the major wood related trade shows in the country,
and the only one that BC Wood attends in this market.
Our
China Program Manager Mr. Jeff Li has been very busy these
past months setting up site visits to meet potential new customers
for BC Wood. In conjunction with Coast Forest Products Association,
he has also continued to participate in regional educational
seminars designed to highlight wood in outdoor applications,
including landscaping & explaining BC grading rules for
industrial grades of lumber. We have also been busy in the
design and final approval of a new trade show booth which
will debut at Woodmac this week.
I
look forward to sharing the results of both the China and
Korea market activities upon my return!
BC
Wood /Rona Olympic Pgoram
Roy Manion
Activities
have heated up significantly since our last newsletter. Following
is an update on the various Olympic and Olympic related projects
where BC Wood is actively involved. BC Canada Pavilion in
Beijing for the Beijing 2008 Olympics supply issues is now
complete and 5 member companies are also in the process of
supplying product to the 2010 Commerce Centre (Robson Square).
Whistler's
Athlete's Village
This is still an ongoing project, however, currently 5 members
companies have agreed to supply product to Whistler's Athlete's
Village. We are working with Whistler Development Corp, the
venue's owner, re exterior cladding and flooring. Originally,
the architect specified Hardie Plank for exterior cladding
and bamboo flooring for the floors. BC Wood is working with
the owner, architect and contractors to change to BC produced
product (price is a key consideration).
Several
members have also quoted on cabinets for these projects. Another
member is working to supply "false walls" which
will convert the duplexes and townhouses into athlete's "hotels"
for the Olympics. When the games are over, the false walls
will be removed, and the units will be refurbished. The plan
is then for many of the units to be sold at below market prices
to Whistler employees.
Vancouver
Athlete's Village
Key member products include cabinets, doors and trim. We are
currently working with the contractor, MetroCan Const. on
these issues.
Trout
Lake Community Centre
The venue's owner, Vancouver Parks Board, wants to use Stanley
Park blow down trees for use in ceiling system and glulam
beams. BC Wood is working to bring this all together.
Whistler
High Performance Centre
Construction is just beginning on this venue with weather
playing a major role. We are in constant contact with the
contractor, Graham Construction. However, they are not yet
quite ready yet to discuss our products.
Whistler
Legacy Plaza
This is the plaza where medals will be presented in Whistler
during the Olympics. The Resort Municipality of Whistler has
presented the BC Government with a very innovative plan, designed
by the architectural firm, Bing Thom, which features BC Wood
products made primarily from beetle killed pine. Currently,
Whistler is awaiting funding approval from government prior
to proceeding
Olympic
Signage
We have made initial contact with VANOC re all the signs that
will obviously be required for the Olympics in all the venues.
VANOC has requested we meet with them on this issue in March.
Langley
Events Centre
While construction is well underway, aside from the glulam
beams, no decision has been made re the wood products that
will be used. BC Wood is actively working with the Architect,
Contractor and Langley Township on this issue. We should be
pinning it down in next 30 days.
As
stated in our previous newsletter, VANOC will be actively
filming many communities throughout BC. Filming will be done
in HD and the footage will be used throughout the Olympic
broadcasts. When contracted by BC Wood, VANOC filming department
did confirm that they had an interest in filming BC companies,
however, priority considerations will be given to companies
that have the most innovative uses of BC's wood resources.
As you might expect, the Pine Beetle killed fibre is the issue
that is front and centre. If you feel you have a story to
tell as to how your company, or a company you know, is using
this or any other BC wood product in an innovative manner,
please let me know. We will send the information off to VANOC.
That
is the Olympic update.
Energy
Star
For those of you who are unaware, a mandatory maximum heat
loss coefficient (U-value) requirement will take effect on
January 1, 2009 under the provincial Energy Efficient Act
for all fenestration products. Key products affected are windows,
doors, and skylights. In its current form, these regulated
products must not exceed an overall U-value rating of 2.0.
There are presently two key issues here:
1.
Using current manufacturing practices, BC manufactured solid
wood exterior doors containing less than full lite glass cannot
meet this requirement therefore, the potential exists that
British Columbian wood door manufacturers will not be able
to sell their doors in our province. Also, as it is expected
other jurisdictions will adopt BC's energy regulations, once
they are finalized, those markets could also eliminated from
our manufacturers list of clients.
2.
The cost of certifying wood doors and windows is significant
(I have heard up to $50,000.00 per company) plus annual certification
fees. Industry is currently negotiating with the Ministry
of Energy, Mines and Petroleum Resources, the BC government
ministry responsible for this issue, and is pushing for an
exemption for wood doors (and possibly wood windows) until
further evaluation can be conducted (minimum of 2 years).
We anticipate a decision on this request for exemption in
the next 30 days.
FP
Innovations/Forintek and the Window and Door Manufacturing
Association of BC are currently playing the lead roles in
this issue, with BC Wood's role being supportive in nature.
Many manufacturers are also involved. If your company is not
yet involved, we suggest you do so, as this will affect all
wood window and door manufacturers.
Architects
and Designers
Following up our very successful GBM with the architects and
designers, BC Wood participated at the 2008 Wood Design Awards
Gala and dinner on February 25. Awards were presented to Architects,
Engineers and wood advocates to honour leadership and innovation
in wood use. BC Wood had a table and invited a number of Architects
to join us. We were pleased when one of our table guests,
Allen + Maurer Architects Ltd, won an award for a project
in Italy they had designed.
The following day, BC Wood exhibited at the Wood Solutions
Fair where we promoted BC's value added wood industry to most
of BC's and surrounding area's architects, designers, engineers
and builders who were in attendance. Several Specifiers Books
were handed out to qualified architects. As well as exhibiting
at the fair, BC Wood also conducted 2 seminars on Wood Windows
and Doors where we focused on our industries abilities and
Energy Star. Tanyss Christie of Westeck Windows presented
the window part of the seminar and represented the industry
very well. It is estimated that in excess of 200 Architects,
Designers & Builders, attended our 2 seminars.
For
additional information on any of the forgoing please contact
Roy Manion, at BC Wood's office or e-mail me at rmanion@bcwood.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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