Growing
Interest in Western Hardwoods
Bill Downing, CEO
 From
North America to Asia, there is growing interest in native
Western Canadian hardwoods such as birch and aspen. BC Wood
has been involved to two projects recently that highlight
this trend: a "Birch Grading and Products Guide"
for the US market and an aspen exposition for the Japanese
market.
The
birch guidecame about as aresult of BC Wood's Global Buyers
Mission in Penticton last September. A large wholesale distributor
from the United States who attended the event expressed a
strong interest in sourcing birch lumber from British Columbia.
Driven by continued high demand (and prices) for alder, the
buyer was looking to birch as an alternative. After several
meetings with BC Wood members, the distributor approached
BC Wood to share the cost of developing a generic birch grading
and product guide to help bridge the gap between manufacturers
and users, and provide a common reference for both.
BC
Wood has developed similar materialfor other species and we
are keen to develop a guide for birch. We have requested funding
for this project and if anyone would like to be involved,
please let me know. The guide will show all grades and end-use
of finished products, and should be available in the spring.
 With
regard to aspen, BC Wood recently partnered with Forintek
in a project designed to increase the demand for aspen in
Japan. Forintek organized the shipment of several containers
of aspen lumber to manufacturers and specifiers in Japan.
The lumber was provided at no cost on the condition that the
manufacturers used it to experiment and develops products.
These products were displayed on January 26th at the Canadian
Embassy in Tokyo.
As
part of the event, a group of Canadian aspen producers traveled
to Japan to take part both the exposition and site visits
to manufacturers, distributors and design centres.
The
event was highly successful. The products developed by the
Japanese participants were outstanding, interest in aspen
has increased and the Canadian participants made some excellent
contacts. (See Japan Market Update 2005)
 The
success of this event has given us the confidence to pursue
a similar project in China. Forintek is again interested in
partnering and we are tentatively planning two expositions
that will include both aspen and birch. The first event will
be held at the newly opened, BC-built "Dream Home Canada"
in Shanghai. The second will be held in the Qing Dao, a wood
products manufacturing area, largely supplying the Japanese
market. Again, if you would like to participate in either
of these expositions and accompanying tours, please give me
a call at 1-877-422-9663 or e-mail me at
bdowning@bcwood.com
Upcoming
Japan Log and Timber Frame Mission
Michael Jahraus, Managing Director - Asia Pacific
BC
Wood will be taking a group of members to Japan early next
month (March 7-11) to explore the market for Log and Timber-Frame
structures. The market in Japan is taking off again and there
have been many recent significant changes. In particular,
the last two years have seen a positive upswing in demand
for log homes in Japan. A number of factors are driving this
renewed interest in log and timber-frame structures:
- An
improving economy in Japan. The many years of a flat economy
have resulted in pent-up demand.
- Changes
to the Building Standard Law in Japan
- Allowing
two storey log homes
- Allowing
fire testing of log homes, resulting in log homes being
built in urban fire zone districts
- A
shift in Japan toward using log homes as primary residences.
In 2003, 43% of log home starts reported by the Japan Log
Home Association were for primary residences.
- The
demand for healthy housing. Log homes are viewed as being
healthy and many more affluent buyers see "natural
log" houses (hand or machine cut) as the healthiest
available option for housing.
- The
trend toward long-distance commuting. Resort areas such
as Karuizawa in Nagano are experiencing a building boom,
with many of the purchasers being commuters to Tokyo.
- Demographics.
Retired or semi-retired empty nesters are moving to the
countryside, to achieve a more peaceful lifestyle.
- Expanding
the use of log homes in the market. Recently, there has
been growing interest in using log homes for institutional
and social building structures like pre-schools and seniors'
centers.
The
upcoming mission to Japan consists of two seminars (Tokyo
and Sapporo) which will attract builders, developers and architects.
In addition, there will be a series of site visits to builders,
showrooms and residential and countryside developments. There
are still a few spaces available on this mission. If you are
interested in joining this group, please call me at(604 882-7100)
or mjahraus@bcwood.com
2005
International Builders Show - Orlando, Florida
David Pao, Project Coordinator
With
a record-breaking attendance of 104,922 builders, architects,
developers, and other industry stakeholders, the 2005 International
Builders' Show (IBS) in Orlando, Florida was something not
to be missed. BC Wood and a group of member companies recently
participated in the highly successful January show with some
excellent results.
 Having
support from Forestry Innovation Investment (FII), BC Wood
worked with leading industry manufacturers to effectively
represent British Columbia's secondary wood products industry.
At the center of the BC Wood booth was a high profile showcase
home, designed and built to demonstrate the capabilities and
exceptional quality that BC companies offer. Member companies
participating in the show included: Stor-X Organizing Systems,
Viceroy Homes, Synergy Pacific, Woodtone, BW Creative Wood
Industries, Waldun Forest Products, Stilewood International
Manufacturing, and Kootney Innovative Wood.
 Through
the showcase home, BC Wood and member companies attracted
thousands of attendees, developed positive and promising sales
leads, and promoted BC effectively in an international venue.
Overall, participants of the show found the venue to be an
excellent forum for communicating with a vast and diverse
audience. Here is some of the positive feedback from participants:
"By
participating with BC Wood at IBS, member companies joined
an excellent venue to effectively showcase products in a real-world
environment." - Dave Farley, BC Wood
"It
was a fantastic location with great traffic flow. The show
offered a great chance to meet with the east coast buyers.
At the end of the day, we had some very qualified sales leads
and we look forward to doing business this year." - Mike
Pidleseki, Woodtone
For
more information on IBS or the US Program, please contact
Dave Farley, Managing Director North America-EU at BC Wood
(604) 882-7100 or at dfarley@bcwood.com
Welcome
New BC Wood Members!
BC
Wood Specialties Group would like to extend a warm welcome
to the following new member and associate member companies:
Tree
Fever Turnings
Matthias Boening specializes in woodturnings of everyday woods
- Douglas Fir, pines, burls of various natures and segmentations
of exotic and native hardwoods. Matthias is most know for
leaving the bark on his bowls and recently won an award at
the Calgary, Woodturning Competition for one of his Fir Bark
Bowls. Matthias also took 1st and 2nd place in Cranbrook's
Wonder of Wood exhibit in January 2002.
Decca
Doors
Decca
Doors occupies a 30,000 square foot fabrication and assembly
operation, making all of their own finished lumber requirements
in-house. They purchase most timber in full sawn form after
kiln drying. This provides the flexibility to manufacture
doors which suit even the most custom of requirements, both
for size and design. Any specific design can be requested
by the customer and a CAD drawing will be generated and sent
for approval. There are 40 employees and the products are
sold and marketed all over the world.
Brian
Moore Log Homes
Brian Moore Log Homes manufacturers Handcrafted Log, Post
and Beam, and Timber Frame homes. From their base in British
Columbia, Canada, Brian Moore works in concert with contractors,
architects, and developers from around the world to provide
them with high quality products. To meet the expectations
of clients, the BC company customizes each building solution,
communicates clearly, and gives accurate scheduling. Brian
Moore Log Homes manufactures custom post and beam, log and
timber frame homes using Western Red Cedar as their species
of choice. They also use Douglas fir and Cypress/Yellow Cedar
or other species as requested.
Northwest
Timberlands
Northwest Timberlands is a consulting company providing
professional services in all aspects of forest management,
from the preparation of Forest Stewardship Plans to timber
valuation to on-the-ground project implementation and supervision.
Located in Terrace, BC, Northwest Timberlands serves the regional
forest community, including industrial, first nations, and
public sector clients.
Boxmaster
The Port Townsend Paper Family of Companies was formed in
early 2001 with the addition of two of the most respected
brand names in corrugated and paperboard packaging in North
America. Crown Packaging and Boxmaster, supported by the design
and structural expertise of Crown Creative Group, have both
gained outstanding market positions and have earned a high
degree of customer loyalty in the production of packaging,
cartons and displays that help market products. Customers
include beverage manufacturers, fruit and produce packers,
food processors, software companies and packaged goods manufacturers.
Plant locations are in Burnaby, Kelowna and Richmond, British
Columbia.
Millennium
Credit and Political Risk Insurance Specialists
Credit insurance policies protect insured companies against
unexpected losses arising from a customer insolvency or non-payment.
Founded in 1995, MILLENNIUM is Canada’s leading specialist
trade credit and political risk insurance broker. We work
with all of the major credit insurers, including Export Development
Canada.
Corporate
Impressions Gift Services
Corporate Impressions Gift Services specializes in sourcing
unique and creative gifts that are reflective of British Columbia
art and culture, while presenting innovative solutions to
corporations and associations requiring gifts for conferences,
special events or advertising promotions.
Upcoming
Trade Shows and Events
11th
Annual BIA-Hawaii Home Building and Remodelling Show
February 3-6, 2005
The BIA Home Building and remodeling Show is held every February
in Honolulu, Hawaii and showcases professional licensed contractors,
innovative products and educational seminars relating to homebuilding
and remodeling in one location.
www.bia-hbrs.com
Nikkei
Architecture and Construction Materials 2005
March 1-4, 2005
The Nikkei Architecture and Construction Materials Show
targets the architectural housing and building materials market.
Over 400 companies are expected to exhibit, targeting architects
and specifiers of products for commercial, housing and office
buildings. Architecture and Construction Materials 2003 is
part of a series of concurrent exhibitions, which collectively
attract over 200,000 visitors.
Nikkei
2005
Woodmac
China 2005
March 22-26, 2005
The WoodMac show (The International Forestry & Woodworking
Machinery and Supplies Shanghai Exhibition) is one of the
most established and comprehensive exhibitions in China, comprising
591 exhibitors and 15,180 visitors. This tradeshow targets
woodworking technology, wood products and furniture manufacturing
accessories. Attendees include architects, designers, building
developers, interior decorators, and furniture accessories
and components trading enterprises.
www.woodmacchina.net
Anchorage
Home & Rennovation Show
March 18-21, 2005
In affiliation with the National Association of Home Builders,
the Anchorage Home Builders Association tradeshow provides
manufacturers with a venue to meet residential and commercial
builders, retailers, consumers and architects from Alaska.
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Mike
Jahraus to Leave BC Wood
It
is with great regret that I announce the departure of Mike
Jahraus from BC Wood. Mike has worked at BC Wood for the last
five years and his contributions to both our association and
our industry have been enormous.
For
BC Wood, Mike was instrumental in establishing the Legacy
Fund, our Associate Membership program, and the highly successful
Asia Market Development Program. For our industry, Mike's
program has generated millions in sales for our members. He
has uncovered, developed and passed on countless opportunities
to members. Mike has also personally coached many firms and
has been the impetus for many partnerships within the membership
and between members and buyers. At all times, Mike has acted
with the professionalism and integrity that personifies BC
Wood.
Mike
is leaving to become a partner of R.E. Taylor and Associates;
however, I know that he will continue to be a champion for
British Columbia's secondary wood products industry. Mike
will continue to work with BC Wood and ensure a smooth transition
for the new manager chosen to fill this key position.
This
is an excellent opportunity for Mike and on behalf of BC Wood's
members, staff and the board of directors, we wish him the
very best.
-Bill
Downing, CEO
Global
Buyers Mission
Member Feedback
David Pao, Project Coordinator
BC
Wood has interviewed a number of participants of the Global
Buyers Mission in Penticton, September 2004 to gauge the level
of success and overall satisfaction of the event. Here is
some feedback from Bill Patton of Westshore Specialties (originally
Sunbury Cedar)
Q:
Did the Global Buyers Mission fulfill all your expectations?
A:
The overall quality of the vendors and buyers was very impressive.
There were just the right vendors and just the right buyers.
A good mix throughout that was very focused.
Q:
How useful did you find the event from a sales perspective?
A:
We made a lot of contacts and there are definitely some very
promising leads.
Q:
What part of the event stood out the most?
A:
The atmosphere of the event was comfortable making it very
easy to chat with people and start conversations. Unlike other
tradeshows and missions, this venue was very relaxed and welcoming.
Q:
What recommendations would you suggest for next year's event?
A:
Keep bringing in quality buyers and remember to focus on the
attractiveness of the overall venue. Season and location are
crucial in bringing in participants.
For
more information on the 2005 Global Buyer's Mission in Whistler,
please contact Randi Walker at rwalker@bcwood.com
European
Market Report January 2005
Ludger Spohr, Director EU Program
First
of all: Our best wishes to all BC Wood Members and Staff for
2005!
December
is traditionally a rather slow month, at least when it comes
to tradeshows, trade missions, etc. In breaking that tradition,
Dave Farley and I decided to use this time to do a road trip
in Continental Europe and meet with some of our key contacts.
What we sought to achieve was a clear sense pciture of the
European market and how we should develop our program for
2005.
After
visiting representatives of some members in France, we went
to the French Alps to see what potential this region has to
offer for timber frame and log homes. As wood is a widely
used material in that part of Europe, we confirmed that this
region is ready for those products. Even better: Right on
the other side of the Swiss border it is an option for tax-conscious
Swiss citizens: Grénoble. The "Salon Européen
du Bois" is in Grénoble, April 7th - 10th, 200m²
has been booked with our partners already. Apart from participating
at this show, we are planning a trade mission around it -
based on your interest in this wealthy market.
On
our trip, we completely crossed Switzerland (at a painfully
slow 120km/h to avoid the really expensive speeding
tickets) to get to Austria and meet with a group of investors
and developers who want to build a log park: on one hand as
a show "room" or - park, on the other hand as regular
tourist accommodations. The interesting detail is that they
are not extremely price conscious, but they want to show a
selection of different log building technologies. They plan
to build Finnish log homes, local builders as well as Canadian
structures. I believe you will have an opportunity to meet
some of these people at this year's Global Buyer's Mission
in Whistler.
Amongst
others, we also visited one of the major Western Red Cedar
importers, who see a potential for the recovery of WRC, since
the South-Eastern-Asian species are less and less available,
and prices are rising for decreasing quality.
We
also met with a former MB agent, who is looking for a partner
in BC to manufacture a decking out of WRC.There is a patent
that uses thinnings, second and third growth in huge quantities
as an engineered product. I have samples of the product in
my office which I can send you if you're interested. Producing
this type of decking is not expensive, but it takes an initial
major investment. For further info you can contact me anytime.
Looking forward to working with you in the New Year!
For
more information, please contact Ludger Sphor Dave Farley,
Managing Director North America-EU
at BC Wood (604) 882-7100 or at
dfarley@bcwood.com
Japan
Market Update January/February 2005
Jim
Ivanoff, Program Manager - Japan
2004=2x4
One of the best stories for Canadian building products in
Japan for 2004 was the surge in demand for 2x4 housing. In
every month of 2004 we saw increases in the 2x4 starts and
by the end of the year, these starts had reached 90,706. When
compared to the 81,502 starts in 2003, this represented an
impressive increase of 11.3%!
Looking
back, 2004 was the third straight year of increases and a
year holding the second highest level of 2x4 starts in Japanese
history. Only the boom year of 1996, which also holds the
record for the highest number of total housing starts, had
more with 93,694 starts.
Kevin
Bews of Canada Wood's SPF Program attributes this increase
to three main factors:
- Changes
to the fire regulations,
- Increased
interest in wood, framed apartments, and
- Japan's
continued economic improvement.
Looking
at these factors individually, the new fire certification
for 2x4 structures has both greatly enhanced the opportunities
for where 2x4 structures can be built and has also generally
improved the image of 2x4 as a building system.
In
addition to being allowed to build apartments in fire zones,
2x4 apartment construction has roared ahead as a result of
the competitive pricing and stable supply of 2x4s in Japan
versus steel and other building systems.
Finally,
Japan's improved economic standing has drawn consumers out
of their "wait-and-see" mode for making major purchases
since land prices have stabilized in many areas, again encouraging
developers and buyers to act.
The
combination of these factors has helped to increase overall
housing starts by 2.5% to 1,189,049, the highest since the
year 2000. Traditional Japanese post and beam construction
has also increased by 2.2% to 427,746 starts. With both 2x4
and post and beam starts increasing, all wooden construction
starts increased by 3.4% to 540,756, leading to a total market
share of 45.5%, up from 45.1% in 2003.
Aspen
Anyone?
In collaboration with Forintek, the government of Alberta,
the Canadian Embassy in Tokyo, and our Canada Wood partners,
BC Wood helped organize a trade mission to Japan for Canadian
aspen producers.
During
the mission, which ran from January 23rd to 29th, participants
were able to visit model houses showing the use of wood finishing
materials, a high-volume furniture store filled with products
made from European wood, the largest DIY store in Japan, and
manufacturing facilities able to process aspen lumber. Canadian
participants were surprised to see the extensive use of knotty
European pine, which has become very popular in Japan in recent
years. Many of the Canadian producers felt that aspen could
be highly competitive in such applications.
The
mission contributed to a much larger project spearheaded by
Forintek to seek out opportunities for aspen in the Japanese
market, other than OSB and pulp. This program focused on shipping
Canadian aspen to Japan for re-manufacturing into furniture,
millwork, and other value-added products. The main event of
the mission was an Aspen Expo held at the embassy to showcase
the numerous products produced in Japan using Canadian aspen.
The
Aspen Expo included a technical seminar highlighting the key
characteristics and properties of aspen. Dr. Chris Gaston
and Derek Goudie, both from Forintek, facilitated this presentation.
Following this was a presentation by one of the companies
that worked with aspen, that gave impressions of the usability
and compatibility of the species in Japan. One strong message
was that the perceived difficulties in machining/ working
with aspen could easily be overcome with minimal modifications
to standard processes.
During
the exhibition and reception, Japanese importers, wholesalers,
manufacturers, and the industry media were able to see how
beautifully appealing aspen could be when worked into a wide
variety of featured products. The displays opened their eyes
to various opportunities for using aspen and also dispelled
negative images that many had previously held about aspen.
After
learning more about aspen, the Japanese participants were
mostly concerned about supply and price. Several industry
representatives mentioned that the success of Canadian aspen
in Japan would depend on its competitiveness with respect
to Russian red pine. Being able to provide the sizes needed
by Japanese manufacturers would also be a key factor.
While
the Aspen Expo and mission have passed, BC Wood will continue
to work with our partners to develop new Japanese markets
for this species. Based on the success of this mission, we
are all eager to move forward to find new opportunities for
Canadian producers.
For
further information, please contact Jim Ivanoff at Ivanoff@canadawood.jp
Other
Related News and Events
Wood
Magazines help wood products reach niche markets
With
increasing global competition, BC manufacturers of quality
wood products need to market the advantages of their products
to new customers in North America.
The
only magazines solely dedicated to promoting the design and
construction qualities of wood products in North America are
"Wood Le Bois" and "Wood Design & Building".
Both are published by Janam Publications Inc. for the Canadian
Wood Council.
Wood Design & Building magazine reaches over 36,000 architects,
custom builders, engineers, and building officials in the
US who specify project materials. Wood Le Bois reaches a similar
audience of over 15,000 in the Canada. Each issue covers a
broad range of wood products and their applications, with
special features in 2005 on wood claddings, timber building,
glulam products and the annual directory of specialty wood
product manufacturers.
Contact
Peter Metcalfe to receive a complimentary copy, and for media
kits describing all the services of the magazines
Phone:
(604) 886-8477
Email: metcalfe@canada.com
CanBio
Pilot
The recent upward trend in oil and gas prices has caused
many communities and business owners to reflect on the finite
nature of fossil fuels and to consider renewable sources of
energy such as solar, wind and bioenergy. Bioenergy can be
derived from wood, agricultural crops and other organic residues.
These fuels can be obtained from many sources, including sawmills,
woodworking shops, forest operations and farms. Several bioenergy
technologies are well developed and reliable; however, there
are perceived and real financial and technical barriers to
their implementation.
For
the full story, click here
For
more information, please contact
Norm Starling at 604-857-1897 or e-mail him at normstar@shaw.ca.
Canadian
Exporters Showcase
March 5, 2005
The Canadian Exporters Showcase (CES) is the only Canadian-Asian
Exhibition of it's kind in Canada to connect Canadian companies
interested in exporting their products or services to companies
in China, Hong Kong, Taiwan, Korea or India that are looking
for new products. CES will be held at the Vancouver Convention
and Exhibition Centre with more than 85 Canadian companies
exhibiting their products. Over 3,000 qualified local and
international delegates will be in attendance.
www.canadianexportersshowcase.com
Brazil
Plantation Forestry Study
This
7-day forestry tour is targeted for the plantation forests
and wood products industry of southern Brazil. The emphasis
is on investment in land and forests of the region within
the Brazilian forest products business environment. The objective
is to give the professional a well-rounded introduction to
forest investment and doing business in Brazil, including
the latest forestry and processing technology.
For more information, please visit:
http://www.worldforestinvestment.com/
or click here
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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