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| January 8, 2003 | Volume 2, Edition 8 |
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BC Wood Members Benefit from Federal Government Funding
The Canadian Wood Export Program has earmarked $29.7 million for Canadian wood product associations, like BC Wood, to expand Canada’s offshore markets. The program has three elements:
Eligible activities include:
There are two notable restrictions and requirements with this program: BC Wood recently submitted a proposal for funding with our Canada Wood Bureau partners in China, India, the European Union and Japan. The challenge will be to match the federal funds using a combination of industry and provincial contributions. From the point of view of you, the member, it’s another example of the way BC Wood leverages your membership dues. The Federal Government support through the CWEP initiative offers our membership an incredible opportunity to diversify into new markets and grow your market share. The fact that both the Provincial and Federal Governments are demonstrating their support of our industry gives us great hope for the future. 
Press Release from the Ministry of Forests: B.C. Government Statement on U.S. Softwood Bulletin VICTORIA - The U.S. Department of Commerce has released the Proposed Analytical Framework for Changed Circumstances Reviews of the Outstanding Countervailing Duty Order on Imports of Softwood Lumber from Canada. "We’ve received the proposal and are studying it," Forests Minister Michael de Jong said today. "We’re conducting that review in context of the recent discussions we’ve had with the U.S., Canadian and provincial governments, as well as U.S. and Canadian industry representatives." "Conceptually, this approach could form the basis of a long-term solution; however, the devil is in the detail. We’re looking forward to a Friday meeting with Grant Aldonas to discuss these specifics." Aldonas is undersecretary of the U.S. Department of Commerce. Canadian and provincial government officials will be meeting with him on Friday in Toronto to discuss the U.S. policy proposal. A copy of the U.S. proposal is available on the Ministry of Forests website at www.for.gov.bc.ca/het/softwood/.
COFI’s China Market Report Finds Wood Frame Housing Economical
The Council of Forest Industries (COFI) recently released a report entitled "Market Opportunities for Wood-Frame Construction, Growth Projections and Comparative Cost Analysis, People’s Republic of China". It provides information on the current status of the development of wood-frame construction in China, quantifies current single family house construction and identifies future opportunities for single and multi-family wood-frame housing. It also provides a cost comparison of the traditional form of Chinese house construction and wood-frame construction and emphasizes the respective economic and performance advantages of the latter. The overview of the existing housing market shows that while growing, the market for single-family homes in urban centers remains a niche market. It is estimated that roughly 2000 high-end wood-frame homes have been built to date, with annual starts less than 500. Given continued market share growth against high-end single-family concrete homes, together with the rising household income, the analysis shown in this study suggests that annual starts should reach 15 thousand units within this decade. The cost comparison is based on a two-floor, Western style 265 m2 residence without a basement. For comparative purposes, four quotes were obtained from different Canadian suppliers. Panelized wall components assembled in two Canadian plants were quoted, as were panels assembled in a Southern China plant. The fourth quote entailed the delivery of the lumber and panel products in bulk for construction of the house on site, using Chinese labour and Canadian supervision. The quoted prices included the delivered cost of all materials on a CIF Shanghai basis. Import duties and the 17% value-added tax were added to the price. The construction supervision and labour costs were estimated and applied to the overall cost of each quote. For comparison purposes, the cost analysis included roughed in electrical and plumbing components, insulation in exterior walls and attic, and gypsum board applied to inner walls and ceilings. The cost of the packages, as defined above, including erection of the frame and construction of the roof on site, varied from a high of 1,327 RMB/m2 to a low of 749 RMB/m2. The cost of constructing the footings and foundation, exterior and interior walls and the roof of the selected residence in the specific design and room layout chosen for the cost comparison, was estimated by a Chinese construction company to be 952 RMB/m2. The cost comparison analysis revealed that on-site construction and Chinese panelized wood-frame single-family homes are a more economical form of construction when compared to the traditional Chinese system and materials. When adding in the factors of marketing a "western lifestyle", greater energy efficiency, shorter construction times and the environmental advantages of wood as compared to steel and concrete, wood-frame construction offers a very interesting market opportunity. The study recommends that a comprehensive market development program for solid wood products in China, with an initial focus on single-family homes, be structured and delivered. It suggests that a series of market research studies be undertaken to assess awareness and demand for wood products (structural and non-structural) for single-family, multi-family, and non-residential end-uses as a means to aid in the development and implementation of appropriate promotional programs. It recommends that an analysis of the Chinese wood products’ production/distribution system (existing and potential) be undertaken, with the objective of assessing how the Canadian industry can best fit into this system (from logs to value-added products). For additional information please contact Paul Newman, Director Market Access and Trade, or view the report on the Members Only section of the BC Wood website under China, Reports.
Opportunities in Mexico for BC Wood Members
BC Wood recently took part in a marketing intelligence mission to Mexico City to explore the opportunities for value-added wood products. The mission included a visit to the largest building products tradeshow in Mexico, the Expo CIHAC. In general, there is an underlying aversion to wood products in Mexico, with a strong preference for concrete building systems; however, the two areas of opportunity are in low-end material for building forms, and more importantly, an emerging market for high-end millwork products. Through initial contacts made during the mission, BC Wood hopes to reach architects and builders who would be responsible for specifying products that could be imported from BC. Several inquiries were posted on the WWIS for members, and interested companies can contact Yuri Akeroyd for any additional information. For a more detailed overview of the Mexican market for wood products, and an overview of the trip and contacts made, please visit the Members Only section under "What’s New This Week".
BC Export Statistics for Value-Added Wood Products
The following statistics pertain to exports of selected BC value-added wood products. This category of selected value-added wood products includes prefabricated houses, doors, windows, furniture, moulding, siding, etc. Not included are panel products, shakes, shingles, or any pulp and paper products.
All Countries
USA BC’s penetration of the US import market for value-added wood products was 4% in 2001. Canadian penetration of the US import market for value-added wood products in 2001 was 31.3%.
Japan
European Union This information can be found on the BC Wood Members Only site under "What’s New This Week". Source: BC Stats
Value-Added Industry News
At BC Wood, we receive news on a daily basis about happenings in the value-added wood industry, and other topics that affect people who work in this industry. For your convenience, you can find some of the latest information in the Members Only site under "What’s New This Week". If you happened to miss a week or two, the articles are archived under the "What’s New Archive" section. Following is some of the latest news that we have received.
Residential Remodeling in the US Source: National Association of Home Builders
US New Residential Construction in October 2002 Privately-owned housing starts in October were at a seasonally adjusted annual rate of 1,603,000. This is 11.4 percent (±5.8%) below the revised September estimate of 1,810,000, but is 4.7 percent (±5.3%) above the October 2001 rate of 1,531,000. Single-family housing starts in October 2002 were at a rate of 1,350,000; this is 7.0 percent (±7.1%) below the September figure of 1,452,000. The October estimate for units in buildings with five units or more was 221,000. Source: US Census Bureau
Canadian Home Repairs and Renovations Roughly two-thirds of this amount (64%) was devoted to work contracted out and about one-third (36%) to materials purchased separately by the homeowner. See the Statistics Canada website for the full article. Source: Statistics Canada
Canadian Housing Starts in November Urban multiple starts rose 1.4% to an annual rate of 85,000 units in November from 83,800 in October, while the rate for urban singles declined 6.9% to 104,600 units from 112,400 units. Rural starts in November were estimated at an annual rate of 23,900 units. See the CMHC website for the complete article. Source: CMHC
Associate Member Profile: Artel Insurance Services Inc.
Tell me about Artel Insurance Services Inc.
Can you describe some of your services?
Group Benefit Plans:
Life Insurance:
International Medical:
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?
Russian Building Codes and Standards
Recently, I attended a CMHC session that focussed on Russian building codes and standards. Below is a brief summary of the information that was presented. If you require more information, please contact Mr. Valery Makarov at the Canadian Embassy in Moscow or Ms. Margarita Sandal at the Canadian Consulate in St. Petersburg. Mr. Valery Makarov, Senior Commercial Officer at the Canadian Embassy in Moscow, started off the session by providing us with some advice on how to enter the Russian market; Moscow, in particular. The best thing to do would be to visit Russia to see the opportunities, meet with brokers, assess the competition, and get some leads. Now that Canadian and Russian standards have been harmonized, the door has been opened to 98 regions where Canadians can bring in their construction materials. Canadian built houses are welcome in Russia, as long as they follow the official Russian code - see Valeri Tishenko below for more information. Opportunity exists in Russia for housing, oil, gas and mining companies, residential areas, sports arenas, airports, and railway terminals. Currently Russia manufactures 30 million square meters a year of housing, while the demand sits at 70 million square meters. With these statistics, there should be opportunity in Russia for at least the next twenty to thirty years. Ms. Margarita Sandal, Senior Commercial Officer at the Canadian Embassy in St. Petersburg, offered some statistics and opportunities for the Northwest region of Russia. This region has a population of 14.4 million, which is 11% of the total population of Russia. Approximately 30% of total industrial output is exported out of this region. The Northwest region is also the only federal district bordering directly with several European countries. St. Petersburg is one of Russia’s leading regions for investment and plays a key role in trade with the west. Hotel, tourism, and real estate construction are the most important industries in this region and currently, more moderately priced and centrally located hotels are needed. The greatest amount of exports go to Finland and most goods are imported into this region from Germany and the US. Currently the city has a deficit of all kinds of residential building and real estate. There is a new trend towards better quality materials and higher standards, so finishing materials are needed to upgrade the modernization of existing housing and for the outfitting of new dwellings. There is also a shifting emphasis to wood frame housing due to its stability, fire resistance, and history. Political stability has increased the boom for housing, leaving an unsatisfied demand. Two categories for low-rise housing are recommended for construction: one-family cottages up to 300 square meters and townhouses up to 120 square meters. In 2000, the building materials market was at 2 billion dollars and has grown 10-15% in the past two years. It has been concentrated on materials used in the finishing process, such as wall and floor coverings, ceiling products, and doors and windows. As these are currently being imported from Europe, opportunities and options exist for Canadian companies in Northwest Russia. For example, you may choose to directly export your building materials to Russia, or invest in the local manufacturing of modern building projects and housing construction projects. Mr. Valeri Tishenko, Head of Department of Standardization, Building Regulations and Certification, State Committee for Construction and Housing Policy, Moscow, talked about the new documents for regulations in construction. The first document - The Building Code and Regulations of the Russian Federation for Single-Family Homes (SNiP) - is a set of mandatory code requirements for service parameters of single-family houses made in Russia. Developed with assistance from CMHC and the National Research Council of Canada, this code establishes requirements for public safety and other service criteria such as fire safety. It does not provide recommendations for what materials should be used. The document entitled Design and Construction of Energy Efficient Wood Frame Single-Family Residential Houses provides recommendations for the design and construction of single-family houses with frame-type bearing walls. This code is not mandatory; it only provides recommendations on how the requirements of SNiP can be met. Any house which is designed and constructed with this code, will conform with the requirements of SNiP for durability, structural strength and integrity, fire safety, health, serviceability, and energy conservation. With these new codes in place, it opens the door for Canadian housing export opportunities in Russia, which could reach 400,000 units annually. Mr. Tofik Mamedov, Director General, Federal Science-Technical Centre of Certification in Construction, Moscow, discussed the standards and testing of construction materials. Most imported building products need to be certified to Russian standards and there are a few different agencies responsible for building products:
Mandatory certification is required for the following building products:
For products which are new and innovative and not under the standards, technical approval needs to be obtained from the Gosstroy, but this can be done once the products have been shipped to Russia. All of these documents are in the BC Wood Resource Center and can be obtained by contacting Mary Quinn. More information on the Russian building codes and the difference between Canadian codes can be found on the CMHC website.
Member Spotlight: Tamlin International Homes Co. Ltd.
Since 1977, Tamlin International Homes has been building, designing and supplying log home and wood frame house packages worldwide. They provide a complete house package, which includes all structural wood components (floors, walls and roof systems), doors, windows, flooring, mouldings, hardware, interior and exterior finishes, and roofing.
JLC Live is a regional show for the building products industry. Tamlin was
happy with the positive response they received and noticed that there weren’t
many other log home competitors in attendance. Attendees were quite
interested in their products and they obtained some good inquiries. Attending the JLC Live show did not come without some preparation though. Tamlin developed a display that included colour pictures and brochures of their homes, projects, and designs. They also brought along their "brag book", complete with photos of their houses from around the world. Bob offers some advice to future tradeshow exhibitors, "Always bring something with you that you can distribute to your attendees. It can be something very basic as long as the person has something to remember you by." At the JLC show, Tamlin also learned that it is very important to have some pricing information with you. "People want to know some basic price points for your products. That’s why it is important to bring along some sample designs with related pricing to hand out." For more information on the JLC Live show, visit their website at www.jlclive.com.
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BC Wood is pleased to present the following upcoming Market Expansion Program Workshops: Beyond Leads & Brochures You Want to Ship What, Where? Clearing Goods Hassle Free You Want to Ship What, Where? Clearing Goods Hassle Free International Trade Research You Want to Ship What, Where? Export Finance & Insurance Export Finance & Insurance Clearing Goods Hassle Free Export Finance & Insurance Beyond Leads & Brochures International Trade Research Clearing Goods Hassle Free International Trade Research You Want to Ship What, Where? Export Finance & Insurance International Trade Research International Trade Research Export Finance & Insurance Beyond Leads & Brochures For more information and updates on the Market Expansion Program, please contact Henk Gauw or Sharon Hambly or check out the Market Expansion Program on our website. 
Changes to Japanese and Korean Building Codes BC Wood members exporting to Japan and Korea will want to visit the Members Only section of www.bcwood.com to review recent revisions to both Japanese and Korean building codes that effect the building products being used. The Building Standard Law for Japanese homes has released information on the changes required to protect against ‘sick house’ syndrome. Building products used in habitual rooms; rooms used continuously for living, conducting office or other work, meetings, entertainment or similar purposes, must conform to very stringent emission levels for formaldehyde. The Korean Agency for Technology and Standards recently released new standards for Fire Resistance Performance for elements of building construction. The standard outlines Korean requirements for wall and floor/ceiling, as well as roof/ceiling assemblies of light-frame wood structures. Information on both standards is available in the Members Only section under Japan Reports and Korea Reports, or by contacting Eric DeGroot, Japan-Korea Program Manager.
Two Vancouver Island BC Wood members have been selected as finalists in the 3rd Annual Vancouver Island Business Excellence Awards. Aquila Cedar Products and Old Country Wood Turning are two of the three finalists in the Forest Industry Company of the Year category. The awards are sponsored by Western Economic Diversification, Ministry of Competition, Science and Enterprise, the BDC, and the Mid Island Science and Technology Council. Good luck to our members and we will let you know who the winner is.
We are pleased to welcome the following new BC Wood Member who has joined us since December 1, 2002: Keystone Millwork Ltd., Abbotsford - Millwork and Finished Products
Japanese Housing Market Trends Seminar BC Wood members interested in finding out more about opportunities in Japan are invited to attend a seminar on "The Recent Trends of the Japanese Market" presented by Mr. Fumiaki Kuraishi of the Japan Management Association (JMA). The JMA organizes the two largest building tradeshows in Japan; the Japan Home Show and the Osaka Builders Show. Mr. Kuraishi will address such topics as opportunities for foreign suppliers of housing materials, the changing attitude of Japanese homeowners, and competitive market information. The two hour seminar will feature a question and answer session, and will provide information on Asia's Builders Week 2003. If you would like to attend this seminar, tentatively scheduled for February 3 in Vancouver, please contact Jennifer Rose at jrose@bcwood.com.
Update on the Members Only Site
New Reports in the BC Wood Resource Center - Market Opportunities for Wood-Frame Construction - People's Republic of China, Growth Projections & Comparative Analysis - October 2002 - Chinese language facts sheets from CMHC and Forintek - Building Codes & Regulations of the Russian Federation - Single Family Homes (SNiP 31-02-2001) - Design & Construction of Energy Efficient Wood Frame Single Family Residential Houses (SP 31-105-2002) - Design & Development of Mechanical and Electrical Systems of Single Family Dwelling Units (SP 31-106-2002) Tradeshow Information
Business Services
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
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.
The Council’s objectives are to promote trade and investment by: facilitating contacts between businesses; providing information on trade and investment matters; serving as a forum to exchange information, and advising governments on policies and programs affecting business relations with India. Activities include hosting visiting Ministers and delegations, holding seminars and facilitating business missions to India. Murray Jans
Bau 2003 NAMM International Music Mart International Builders Show Surfaces 2003 Log Home & Timber Frame Expo Northeastern Retail Lumber Association 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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As our long-time members will recall, BC Wood’s primary funding partner
during our early years was the Federal Government. That changed in the
mid-nineties when the Provincial Government began to invest in marketing
activities for our industry through BC Wood. As we move into 2003, I’m very
pleased to pass along that the Federal Government has returned as a
significant funding partner through the Canadian Wood Export Program (CWEP).
Artel Insurance Services Inc. is BC Wood's authorized insurance partner,
specializing in designing and implementing individual insurance products for
member companies of BC Wood. We had the opportunity to ask Robert
Evdokimenko, Vice President, a few questions.
In the past Tamlin has focused their efforts on overseas markets and has
participated in many building products tradeshows in Japan, with the help
of BC Wood. They recently attended the JLC Live show in Portland, Oregon,
as a way to test the market. They wanted to learn if demand existed in this
region for their products and to determine the correct price range for this
area. Finding new clients and interacting with builders, architects, and BC
Wood members also attracted them to the JLC Live show.
Bob
Moir, General Manager at Tamlin Homes, commented "Most people took the time
to stop by our booth and say something positive to us". Tamlin discovered
that the hand crafted log homes seemed to draw the most attention and
received comments such as "I have always wanted a log home or "My next home
will be a log home".
| January 8, 2003 | Volume 2, Edition 8 |
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| Copyright 2003. BC Wood, All Rights Reserved. | |
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