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Message
from the CEO
Bill Downing, CEO
 I
am very pleased to report to the membership that the restructuring
of BC Wood into product sectors is now complete. Following
approval of the new structure by the membership at BC Wood’s
Annual General Meeting last fall, BC Wood created an "industry
advisory committee" for each of the seven product sectors:
Remanufactured Products, Millwork, Pre-built Housing, Log
and Timber Frame Structures, Cabinets, Furniture and Engineered
Wood Products. The advisory committees were made up of industry
representatives who provided input and guidance in developing
and assessing the activities for each sector. The final list
of activities was incorporated into our funding proposals
to the Canada Wood Export Program (Federal) and Forestry Innovation
Investment Ltd. (Provincial).
Here
are some important themes in this year’s proposal:
•
Growing focus on architects, designers and specifiers –
as manufacturers move their products upstream, this group
is playing an increasingly important role in the purchasing
decision.
•
Increased activity in the US market – this is the destination
of over 95% of our exports and this market is a major focus
for every sector.
•
Japan is coming back – an improving economy, changing
demographics and a growing interest in healthy living is renewing
interest in Canadian wood products.
•
Narrowed focus in China – Once you get through the hype,
opportunities in China for our wood products is limited to
niche markets. These include industrial lumber and components,
outdoor products and log home and timber frame in the resort
markets.
•
Bigger and better GBM – Demand for BC Wood’s Global
Buyers Mission continues to grow, and this event has become
our largest and most important sales-generating activity.
•
Pioneer markets – The idea of "pioneering"
a new market was incorporated into each sector program (e.g.,
furniture in Japan, remanufactured products to Mexico and
pre-built homes in Korea)
•
Increasing importance of market access activities – Phyto-sanitary
issues, emissions regulations, shipping concerns and other
market access issues are becoming increasingly significant
barriers to entry in export markets. BC Wood has responded
with a number of market access initiatives to help you understand
and overcome these barriers.
In
early March, BC Wood will have the program for each sector
finalized. At that time, BC Wood staff will meet with you
to review the program for your sector and determine which
of the activities are of interest to your firm. I think that
you will be very pleased with the value that BC Wood will
offer every member in every sector. A complete list of the
proposed activities for 2006-2007 can be found on our website
at www.bcwood.com by following the Member Services link and
choosing Trade Events.
The
product-sector approach is working very well. British Columbia’s
secondary wood products manufacturers have recognized the
benefit of pooling resources and working together to grow
their exports, in this increasingly competitive world market.
Deadline
Approaches for BC Wood's China Missions
Brian
Hawrysh, Director, Remanufactured and Engineered Wood Products
 The
schedules are set and we are now approaching sign up deadlines
for both the Resort and Industrial Lumber missions to China.
These two programs offer our members an excellent opportunity
to meet with key Chinese buyers in these two rapidly growing
sectors:
Resort
Sector Mission to China
Feb 28th – March 8th, 2006
Featuring:
• A week-long mission focusing on China’s growing
Resort Sector specifically targeting customers for Log &
Timber Frame Structures, siding decking, roofing and Western-styled
millwork and interior finishings.
• Schedule includes meetings with pre-qualified resort
developers, builders, architects and distributors of building
materials.
Cut-Off
for Registration – February 7th, 2006
BC
Wood will coordinate on behalf of its’ members a complete
package including airfares, local air & ground transportation,
hotel reservations, translators, seminars and receptions and
site visits for $CDN 3450. This price represents a savings
of over $800. Remaining space is limited so contact Brian
Hawrysh at 604-882-7100 or bhawrysh@bcwood.com
to book one of the last places on this mission.
Resort
Sector Mission Schedule
Monday,
February 27th
Flight Departure – Vancouver
Tuesday,
February 28th
Arrive in Shanghai
Wednesday,
March 1st
Visit Developers and Site Visits
-Sea Forest Company
-SIIC Dongtan Inv. and Dev. Co.
Thursday, March 2nd
Visit Developers and Site Visits
- Kunshan Zhongda Group
- Shanghai Da An Group
- Shanghai Monarch Company
Friday,
March 3rd
Visit Building Materials Retailer
BC Resort Product Seminar
Reception and Dinner hosted by BC Wood
Saturday,
March 4th
Depart Shanghai for Beijing
Sunday,
March 5th
Beijing Tour (Tour of Great Wall and Summer Palace)
Monday,
March 6th
Visit Developers and Site Visits
- Beijing Maple Real Estate Co.
- Vancouver Forest – Site tour
- Wantong New Concept Residential Dev.
- Beijing Zhong An Da Resort Service
Tuesday,
March 7th
Visit Developers and Site Visits
-Orange County/Xishan Villa Monarch Co.
-Visit Fangshan Co. Ltd.
Depart Beijing for Shanghai
Wednesday,
March 8th
Depart Shanghai for Vancouver
Industrial
Lumber Mission to China
Feb 28th – March 8th, 2006
Featuring
·
A week-long mission focusing on hardwood and softwood end-users
in China
· Targeted at furniture, giftware and millwork manufacturers
in the Shanghai and Guangzhou regions
· Program includes a one-day seminar and follow-up
site visits to pre-qualified manufacturing plants and distribution
facilities
· Specifically targeted for manufacturers of: hardwood
& softwood industrial lumber and semi-finished components
Cut-Off
for Registration – February 28th, 2006
Do
not miss this chance to showcase your company in China!!!
For
more information on the Industrial Lumber mission to China
and your opportunity to showcase your company contact Brian
Hawrysh at 604-882-7100 or bhawrysh@bcwood.com
Last
Chance for Western Red Cedar Mission to Japan 2006
Jim Ivanoff, Program Manager Japan
 For
manufacturers of Western Red Cedar products, this is your
last chance to sign-up for the March trade mission to Japan.
The mission will consist of a series of promotional seminars
across Japan where members will have the opportunity to meet
and make presentations to potential distributors/ buyers.
Past seminars have attracted on average 40 Japanese industry
people each and allowed members to meet one-on-one with these
key contacts.
The
preliminary mission schedule is as follows:
Saturday,
March 11th: Depart Vancouver
Sunday, March 12th: Arrive in Tokyo
Monday, March 13th: Visit WRC distributor (am), WRC seminar
in Tokyo (pm)
Tuesday, March 14th: WRC seminar in Nagoya
Wednesday, March 15th: Visit WRC distributor, WRC seminar
in Osaka (pm)
Thursday, March 16th: WRC seminar in Fukuoka
Friday, March 17th: Arrive in Vancouver
Members
also have the option of coming earlier to visit or participate
in the Nikkei Architectural Show (March 7th-10th), which is
one of the two major building products shows in Japan, and/or
to stay longer for the Kita-Kyushu Total Living Show (March
17th-20th), which is the largest industry show in Kyushu.
Please
contact Jim Ivanoff (Japan Program Manager) for further details
by email ivanoff@canadawood.jp
or Brian Hawrysh at 604-882-7100
European
Union Market Update
Daryl
Holmes, Program Manager European Union and United States
Plan
Expo 2005
 The
United Kingdom is Canada’s fastest growing market for
exports after the USA. The UK & Ireland have an existing
wood culture, and Canada have been recognized by the industry
as a global leader in housing technology and innovative building
products. The Irish marketplace has been identified as a niche
market for our cedar manufacturers and Log Home & Timber
Frame producers and this intelligence led to our attendance
at Plan Expo in Dublin, Ireland for the past 2 years.
Plan
Expo’s 2005 trade event was held on November 10th –
12th and once again BC Wood hosted a pavilion, showcasing
cedar products, and Log Home & Timber Frame structures.
Members attending included, Cedarland Forest Products, Still
Creek Forest Products, Big Foot Log Homes, Lindal Homes, Hamill
Creek Timberwrights, Artistic Impressions.
 The
show was well attended by developers, builders, architects,
timber merchants and contractors from the Irish marketplace.
Exhibiting members were able to showcase products to new business
contacts and to strengthen and build upon existing relationships
within the market. By returning to this market annually, BC
Wood has been able to develop strong brand recognition for
BC’s value-added sector and this investment and commitment
to the market has enabled members to reap the rewards in the
form of increased sales and market share.
The
Irish market will continue to be an area of investment along
with the balance of the UK. Upcoming shows and programs include,
Interbuild being held in Birmingham, England, (April 23-27)
and Sustainabuild being held in Dublin, Ireland, (June 8-10),
Salon Maison du Bois in Anger, France, (September) For more
information on these shows and a complete listing of events
for the 2006-2007 fiscal year please visit our website at
www.bcwood.com
"We
attended BC Wood’s activity in the Ireland market last
year for the first time and based upon the successful business
conducted at the show I am 110% behind BC Wood’s plans
to return to this market. We were particularly interested
in the mission component of the package as we found great
value in being able to conduct and build upon business relationships
outside of the trade show dates." Geoff Johnstone, Hamill
Creek Timberwrights.
2006
Seminar Networking Event Torino
The
2006 Winter Olympic and Paralympic Games in Torino, Italy,
offer a tremendous opportunity for companies to increase their
profile and market reach in Europe and beyond. BC Wood will
maximize this value for BC businesses by partnering with member
companies, Federal and Provincial Governments, and wood product
industry associations from across Canada by creating an exciting
one-day trade event and seminar in Torino Italy.
This
event will be held on Friday February 24th at the BC Canada
House in the heart of Torino Italy, the host city for the
2006 Winter Olympic Games. Constructed entirely from logs
harvested in British Columbia and built by Sitka Log Homes,
the BC Canada House showcases Canadian expertise in Log Home
and Timber frame construction. BC Wood and partners will organize
and host two seminars and a networking social, inviting an
estimated 60 to 80 Architects, Builders, Developers, Timber
Importers and other professionals from throughout the Alpine
regions of Northern Italy, France, and Austria.
This
event will provide an excellent opportunity for Canadian manufacturers
and supporting associations to showcase wood products and
connect with key decision makers in this market. This will
also be a great chance to provide support for our Canadian
athletes in the excitement of the Winter Olympics. BC Wood
is pleased to announce that British Columbia Premier Gordon
Campbell has accepted an invitation to be the keynote speaker
at a luncheon to be held as part of the event. The presence
of the Premier further adds to the prestige of the event and
ensures a strong attendance from the target market.
For
more information on Torino, contact Dave Farley at 604-882-7100
or dfarley@bcwood.com
Upcoming
Shows and Events
Please
visit the trade event section at www.bcwood.com
to view our updated list of proposed tradeshows and missions
2006
Forest ExpoJune 1-3, 2006
The 2006 Forest Expo is currently registering exhibitors for
their tradeshow being held June 1,2, 3 in Pringe George. Please
see www.forestexpo.bc.ca for more information and to register
a booth. Please direct any inquires on The Wood Enterprise
Centre to info@woodent.com
or visit them at www.woodent.com.
CAWP
New Certificate Program 2006
A new certificate program on industrial wood finishing will
be offered to industry participants starting in January 2006.
The program is comprehensive in scope and encompasses 12 weeks
of Internet-based part-time study followed by a seven-day
intensive practical session that will take place in late April.
The location of the practical session will be determined based
upon where the majority of participants are drawn from.
Enrolment for this inaugural run of the course is limited
to 15 people, and interested individuals are asked to contact
CAWP at 1-866-822-2297 as soon as possible to register. For
full details on the course, please follow the link below.
Program
information
Doing
Business with China (Organized by Woodbridge Associates and
sponsored by BCIT)
May 23-24, 2006
Chinese wood products manufacturers already impact your business.
What are the opportunities? How can you turn competition into
partnerships for profit? Can you go it alone? For more information
visit www.woodbridgeassociates.com
or www.bcit.ca/construction
for more information on this event - a road map with practical
information for small, medium-sized and global producers.
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2006
GBM Update
Randi Walker, Manager, Member Services
We’re very happy to announce that we have secured our
funding from three of our major partners for the 2006 GBM.
Western Economic Diversification (WD), Export Development
Canada (EDC) and Canada Mortgage and Housing (CMHC) have all
agreed to support this successful event once again - and we
anticipate further good news from the Canada Wood Export Program
and Forestry Innovation Investment, by April 1st.
We
have secured space and negotiated rates at the Whistler Conference
Centre, The Delta Whistler Village Suites, The Westin Resort
& Spa and the Whistler Blackcomb Roundhouse as our major
venues for the event.
We
have had very positive feedback from Trade Commissioners at
International Trade Offices in our target markets and anticipate
their assistance and cooperation in identifying suitable buyers
for the event. Our in-market staff in China, Japan and Europe
have already started taking applications from interested buyers!
Not
only that, but we have already sold 45% of our booth space
to the following companies:
Bakerview
Forest Products
BC Shake & Shingle Assoc.
BC-LTBICarlwood Lumber
Cedarland Forest Products
Cedar Shake & Shingle Bureau
Cowichan Lumber
Custom Global House
Eagle’s Nest Log Homes
Export Development Canada
Holland Industries
Kootenay Innovative Wood
Linwood Custom Homes
Masonite International
Overseas Container Forwarding
Pacific Homes
Pacific Western Wood
Panalpina Inc.
PEMCO / Pat PowerPowerwood Corp.
Probyn Group
Sauder Mouldings
Shawood Lumber
Sitka Log Homes
Snowcap Lumber
Sperlich Log Homes
Stilewood International
TF Sawmill Inc.
The Wood Products Group
Trans-Pacific Trading
Trout Creek Enterprises
Venture Kamloops
Waldun Forest Products Group
Westshore Specialties
Woodland Flooring
If
you haven’t signed up for the best, most cost effective
business building event of the year, Registration Forms are
now available by contacting me direct at 604-882-7100 rwalker@bcwood.com.
, or you can download directly here
We
look forward to seeing you in Whistler!
2006/2007
The Return of BC Wood to Korea
Brian
Hawrysh, Director, Remanufactured and Engineered Wood Products
Based
on your positive feedback and recent market intelligence,
BC Wood is planning for a more active role in the Korean market
during the 2006/2007 fiscal year. A recently completed BC
Wood study highlights a number of value-added opportunities
in Korea and indicates that there is a strong short to mid-term
opportunity for our members in this rejuvenated market-place.
Subject
to the approval of our government funding partners, BC Wood
will take on more promotional activities in Korea, eventually
establishing an in-market presence in Seoul. Our new in-market
representative will be responsible for reporting market conditions,
developing, qualifying and communicating new business leads,
providing assistance to member companies with market entry
activities and coordinating BC Wood’s in-market missions
and trade events.
The
focus of BC Wood’s promotional activities in Korea will
center on participation in the Kyung Hyang Housing Fair (KHHF)
scheduled for March of 2007. The Kyung Hyang Housing Fair,
Korea’s largest building materials & construction
exhibition is attended by 1,000 exhibitors and over 400,000
visitors every year. The BC Wood Members who find the most
value in this program include those companies supplying pressure
treated and Western Red Cedar lumber, engineered wood products,
finished building materials and perhaps most importantly,
pre-built housing.
Your
input is vital to making our return to the Korean market a
success. Please contact me at 604-882-7100 or bhawrysh@bcwood.com
with your thoughts on the opportunities for BC Wood members
in Korea.
Japan
Market Update
Jim Ivanoff, Program Manager Japan
 Since
the end of the bubble economy, Japan has experienced several
“false-start” recoveries. However, the current recovery
phase has proven to be the real thing. Not only is it about
to become the longest expansionary period since WWII, Japanese
companies continue to realize record profits while also sharing
this good fortune with their workers through increasing bonuses.
These positive conditions also finally got the Japanese consumer
to open up their wallets in 2005. During 2005 Japanese retail
sales rose for the first time in 9 years while price increases
finally broke the deflationary cycle during the last two months
of the year.
There
was also positive news on the housing front for 2005. Overall,
housing starts rose by 4.0% to 1,236,122. Of the total starts
542,859 were wood, but the real winner this year was 2x4 housing.
The total number of 2x4 starts jumped to 95,843 representing
a 5.7% increase and a 7.8% share of the market. Post and beam
starts were down slightly by 0.3% to 426,298. The numbers
also show that Tokyo’s condo boom has spread to other
major urban centres throughout Japan. Condo builders expect
the strong market to continue, forecasting an increase of
3% for 2006.
 Aside
from the overall strength of the economy, there are another
three very important factors that indicate the Japanese housing
market should see even stronger growth over the next few years.
These factors are: the "2007 Problem," the end of
the Bank of Japan’s easy-money policy, and the looming
increase in Japan’s national consumption tax.
The
"2007 Problem" refers to the fact that the first
big wave of baby-boomers will retire in 2007. While this is
already creating fears that Japan’s labour shortage will
only worsen, these retirees are expected to create a great
surge in demand for all kinds of products and services. In
Japan, employees are given $200,000-$300,000 in cash on their
retirement. Many in the housing industry expect that this
will lead to a boom in "reform work" (renovations)
as well as new housing starts. In fact, rural areas across
Japan are preparing new communities to house retirees looking
to escape urban centers such as Tokyo.
As
of 2006, Japan has negative interest rates as the rate of
inflation is now higher than the rate of interest. This situation
contributes to a resistence for consumers to spend. The Bank
of Japan is expected to end its easy-money policy by the 2nd
or 3rd quarter. As long as the economy continues to show strength,
this will likely set-off a series of interest rate hikes.
It can be assumed that consumers will be watching for such
increases and build homes while they can still take advantage
of historically low mortgage rates. A side-benefit for Canadian
producers is that by reducing the interest rate spread between
Japan and other industrialized countries, the Japanese Yen
is forecast to rise sharply. Some market watchers expect the
Yen to reach US$=Y90.
While
the retirees and interest rate policies can be expected to
have a significant impact, an increase in the consumption
tax could create a huge spike in building starts. In 1996
housing starts in Japan jumped by almost 12% as people who
were considering building homes pushed up their plans due
to the scheduled increase of the consumption tax from 3% to
5% in 1997. The Japanese government is finally getting serious
about eliminating its huge budget deficits and the idea that
is being most discussed to accomplish this is to again raise
the consumption tax. However, this time they are looking at
raising it from 5% to a whopping 10%. This tax increase is
almost certain with the only question being the timing of
it. Prime Minister Koizumi has vowed not to make the increase
during his term, but he is set to give-up his post this September.
This means that the earliest the tax increase could be implemented
is in 2007, but most believe that 2008 or 2009 is more likely.
Over
the short to mid-term, the Japanese housing market looks set
to continue building on the gains made over the past two years.
This, combined with the growing wealthy class and a stronger
Yen, will increase the opportunities for Canadian producers
of quality value-added building products.
Contact
Jim Ivanoff at ivanoff@canadawood.jp
for more details.
United
States Market Update
Daryl Holmes, Program Manager European Union and United States
International
Builders Show 2006
The International Builders’ Show® (IBS) held in Orlando
from January 11-14 was another record-setting event with over
105,000 attendees! IBS is the largest annual light construction
show in the world with more than 1.5 million square feet of
the latest and most advanced building products and services
ever assembled. BC Wood, in collaboration with industry partners,
has been able to secure exhibition space maximum exposure
for our members to a vast audience of builders, developers,
architects, designers and other key industry professionals.
Members
attending included, Viceroy Homes, Stilewood International,
Hamill Creek Timberwrights, Westeck Windows, B.W. Creative
Wood, Woodtone Industries, Pentco Cabinets, Old Yale Log Homes,
Canada@Home, Canadian Heritage Timber, and Canadian North
Log Homes.
Once
again, BC Wood partnered with Forestry Innovation Investment,
Western Red Cedar Lumber Association and BC Market Outreach
Network to expand the exposure of B.C’s value-added wood
products brand. Exhibitors showcased their product in the
industry show-house, which received a high level of traffic
and interest over the 3-day show. Having product presented
in this applied setting enabled members to maximize their
efforts to gather sales leads and gain exposure that would
not otherwise be possible at a show of this size.
Upcoming
shows and programs in the USA include, Pacific Coast Builders’
Conference, (PCBC), June 20-22. For more information on shows
and a complete listing of events for the 2006-2007 fiscal
year please visit our website at www.bcwood.com or contact
Dave Farley at dfarley@bcwood.com
"We
felt attendance at IBS was a must for our company as we continue
to maintain competitiveness in the fiercely hot USA marketplace.
This event is considered the must see event for the building
industry and we were able to gain an audience with many industry
professionals that we would not usually be able to connect
with. Exhibiting in BC Wood’s pavilion enabled us to
receive visibility that would not be possible given the enormity
of the exhibition halls. Business conducted at this show has
reinforced our decision to attend and we look forward to BC
Wood’s USA programs in 2006.” Chris Young, Canadian
North Log Homes.
Welcome
to BC Wood
Welco
Lumber Corp.
Welco Lumber Corp. has sales of approximately 200million dollars
annually. Welco is the exclusive sales agents for Woodland
Forest Products, Prince George , BC, manufacturing studs both
solid and finger joint. also for Springer Creek Forest Products,
Slocan, BC with production of approximately 150million fbm
annually of fir, spruce, hemlock dimension lumber.
Welco
has offices in Vancouver, BC , Winnipeg, MB , Calgary, Alta,
and Spokane, WA. Welco is also the exclusive distributor of
fascia for Canfor in California, and are the exclusive sales
agents for Winton Global for the western United States. Welco
also makes crane matts under the Tundramatt name and have
a line of imported flooring our products are dimension lumber,
studs, timbers, fascia, decking, crane matts , hardwood flooring.
For more information, visit www.welcolumber.com
Cedar
Shake and Shingle Bureau
The
Cedar Shake and Shingle Bureau is a non-profit organization
that promotes the use of Certi-label™ cedar roofing and
sidewall products. On June 9, 1915, at a meeting of the Trustees
of the West Coast Lumber Manufacturers Association, it was
agreed to establish a branch of the association to serve those
members who manufactured shingles. Our influence grew, and
as we survived both the Great Depression and World War II,
manufacturers continued their quality commitment. In 1963
the organization merged with the Handsplit Shake Bureau to
become the Red Cedar Shingle & Handsplit Shake Bureau.
For more information visit www.cedarbureau.org
Venture
Kamloops
Venture Kamloops promotes the City of Kamloops as the best
location for new business investment. Building capacity in
our community, Venture Kamloops offers advisory services for
small & medium enterprises and major corporations with
the coordination of site-selection trips, and market analysis.
Venture Kamloops acts as a confidential liaison between clients,
companies, local governments, educational institutions, workforce,
development agencies, industry associations and business leaders.Client-based,
hands-on solutions to create, retain and expand local business
are at the core of our business development services. For
more information, visit www.venturekamloops.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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