Changes to the Member Only side of the WWIS are under development and will be completed in the near future. If you have any suggestions or comments, please forward them to Sharon Hambly at shambly@bcwood.com.

Summary of Taiwan: Value-Added Wood Building Products Market Study
Simone Liang, Marketing Coordinator – Asia Pacific - China

Taiwan is a mountainous region with woodlands and forest covering about one-half of the landmass. Due to government environmental protection policy, 99% of timber usage in Taiwan has been from imported wood products. The total domestic consumption of wood materials is significant, totaling 26 million cubic meters in 2002. In the past decade, lumber has formed the majority of timber imports with increasing volumes of softwood timber imports and decreasing volumes of hardwood lumber. Pine, hemlock and spruce lumber began to be mass imported after 1994. Oak lumber is the major hardwood lumber import and Malaysia and Indonesia are the key providers of hardwood lumber.

Canada leads as the largest softwood lumber exporter to Taiwan, accounting for 36% of total softwood lumber imports. Following Canada is New Zealand (27%), Chile (11%), and the United States (5%). Canada has also been the leading supplier of pulpwood imports to Taiwan in the past decade. The value of major wood product imports from Canada in 2002 were softwood lumber (48%), pulpwood (26%), and hardwood lumber (10%).

The personal and household incomes and expenditures in Taiwan are approaching the profile of a developed country. However, Taiwan has been impacted by the global slowdown as well as by the migration of its manufacturing industry to mainland China. Recent domestic politics have also been unsettling, affecting foreign investment, while the domestic economy is experiencing one of the slowest periods in Taiwan’s history. Even in the midst of this tough economic climate, Canadian wood imports remain competitive and are even gaining market share.

It should be noted that import statistics and domestic production figures can downplay the real opportunity that Taiwan truly represents to Canada because many Taiwanese wood-based manufacturers have moved production facilities offshore. Headquarter facilities still usually remain in Taiwan, thus providing sales and promotion targets for Canadian suppliers. For instance, Taiwanese investors are the key group of wood product manufacturers in Guangdong Province, Southern China, the largest furniture manufacturing base in China, with its key export market being the United States. Therefore, Taiwan now also plays a key role in the consumption and demand for lumber in Southern China.

The research done in this report indicated that long-term government projects could provide key opportunities for Canadian wood suppliers. In addition, opportunities for Canadian wood products are currently influenced by two major themes in the Taiwanese market: "recreation" and "green building products". Wooden houses/structures are in demand in recreational situations and are viewed as a novelty. They are increasingly being seen in outer suburban/rural areas in the form of chalets/cottages, tea gardens, restaurants, saunas and recreational farms. "Green" is another theme encouraging the use of wood-based materials for construction/finishing, such as interior decoration (especially flooring, high-end kitchen cabinets and paneling), National Parks, exterior walkways and wooden decks. Targeting of key contractors specializing in this area is a route that Canadian wood suppliers should investigate. In addition to "recreational" and "green" projects, the Farm Housing Program and Earthquake Reconstruction projects are other excellent examples of government projects that encourage wood usage.

Finally, local policies have strengthened Canada’s pursuit of Taiwan market opportunities, particularly the liberalized regulations on wood-frame structures and open government procurement for construction contracts with foreign companies. Canadian wood suppliers have the skills and knowledge in these niche markets and could be involved in the distribution and logistics of wood materials.

In conclusion, wood and wood product costs will remain a key driver of market share in the Taiwanese market. However, a deeper understanding of the market and the ability to approach the market with differentiation strategies, such as increasing functionality, architecture, safety, usability and environmental soundness of wood, can greatly improve sales relationships and thus enhance Canadian suppliers’ competitiveness in this market.

BC Wood Forms and Policies Now in Members Only Site

New in the Members Only section of the BC Wood website is a section entitled "Forms and Policies". As we continually update this section, you will find downloadable forms and BC Wood policies. Currently available is the Privacy Policy and Code of Good conduct as follows:

Unless otherwise stated, "member" shall refer to registered members and associate members of BC Wood.

Members of BC Wood agree to:

• Abide by the Code
• Be answerable to the Board of Directors for any breach, including misrepresentation or non-payment of accounts
• Stand behind their product or service
• Accept an order only if capable of delivery in a timely manner
• Refrain from unfair competitive tactics
• Act towards other members in a spirit of mutual cooperation
• Assist and encourage the development of BC’s secondary wood products industry
• Maintain the confidentiality of information regarding BC Wood or fellow members
• Refrain from any statements (written or oral) relating to BC Wood
which are adverse to the interests or reputation of BC Wood

Failure to abide by the above Code shall result in a review of conduct by the Board of Directors, and possible expulsion from the Association.

Associate Member Profile: Overseas Container Forwarding

Tell me about Overseas Container Forwarding

Overseas Container Forwarding (OCF) is a Canadian NVOCC / Freight Forwarding company, headquartered in Vancouver, BC with a global network of committed Freight Forwarding agents. OCF is your professional logistics partner whose primary goal is to be there for you and to work hard at delivering what you expect from a leading shipping supplier. OCF was incorporated in Vancouver in 1979, and has been providing innovative logistics solutions for over 24 years.

Which of your services would be best suited to BC Wood Members?

OCF provides Export/Import services to and from all Worldwide origins/destinations. Full-container shipments with specialized equipment for lumber, log houses or project equipment, regularly scheduled less-than- container service for smaller shipments, and AIR delivery for rush orders. OCF can offer Ex-works, FCA, FOB, CNF and CIF rates and service, door-to-door rates, warehousing and loading services, marine insurance, and customs information.

How can BC Wood Members benefit from your service?

OCF offers services for all your shipping needs with one phone call. From packaging, to container loading, to trucking, to ocean and air shipping, OCF has the experience and knowledge to offer cost-saving advice.

What is your competitive advantage in the industry?

With over 24 years of experience moving various commodities and projects, OCF has probably seen and carried it all. Also, our worldwide network of agents allows OCF to provide personal and professional service in any country. Multilingual office staff speak most of the languages of the major shipping destinations.

Who should BC Wood Members contact if they are interested in your service?

Brad Unger, Marketing Director	brad@ocf.ca
Darin Steel, Sales & Marketing	darin@ocf.ca
Kevin Lainchbury, Sales	kevin@ocf.ca
Telephone: 604-734-8155
Toll-Free: 1-800-663-4162
Website: www.ocf.ca

Why did you become an Associate Member of BC Wood?

We became a BC Wood Associate Member so that we could offer our services to exporters in the forestry sector. Also, to support and promote Canadian companies (like OCF) in the international market.

Value-Added Industry News

Canadian Building Permits, March 2003
The value of building permits issued across Canada declined 4.4% in March to $3.6 billion, after falling 11.7% in February. In spite of this, the storm of permits issued in January has left the sector buoyant and off to a record start, with first quarter construction intentions amounting to $11.8 billion.

January's record level of $4.3 billion in building permits was more than enough to push construction intentions to the first-quarter record. The level for the first three months was up 6.6% from the first quarter of 2002 and 18.1% from the first quarter of 2001.

Municipalities issued $2.4 billion in residential permits in March, up 3.1% from February. The value of non-residential permits declined 15.9% to $1.3 billion, their lowest level in 11 months, mainly the result of a drop in institutional construction intentions.

Builders took out $680 million worth of permits for multi-family dwellings in March, up 26.6% from the 14-month low in February. More than $400 million, or 60.3% of that value, was attributable to permits for apartments. In contrast, demand for single-family dwellings slipped 4.0% to $1.7 billion, the second straight monthly decline and the lowest monthly level since July, 2002.

Source: Statistics Canada

Canadian Housing Starts, April 2003
April's seasonally adjusted annual rate of 207,800 housing starts remained consistent with strong home building activity in the country, reports Canada Mortgage and Housing Corporation (CMHC).

The seasonally adjusted annual rate of urban multiple starts decreased 14.3 per cent to 82,000 units in April compared with 95,700 units in March. Actual urban multiple starts remain high, having increased by 17.4 per cent year-to-date compared with the same period in 2002. This lower level of multiple starts in April reflects a return to levels more in line with recent trends in the Atlantic region.

The seasonally adjusted annual rate of urban single starts rose 3.5 per cent to 96,500 units in April from 93,200 in March. In terms of actual starts, urban single starts year-to-date are 1.6 per cent lower than for the same period of 2002.

Source: Canadian Mortgage and Housing Corporation

US Housing Starts, April 2003
Due primarily to a substantial dip in multifamily production, nationwide housing starts declined 6.8 percent in April to a seasonally adjusted annual rate of 1.63 million units, the Commerce Department reported. However, permit issuance and backlogs of unused permits were up in April for both multifamily and single-family dwellings, boding well for a boost to housing starts this May.

Nationwide, single-family housing starts fell 3 percent in April to a seasonally adjusted annual rate of 1.36 million units. Multifamily housing starts, which typically show significant volatility from month to month, declined 22 percent on a national basis in April to a 274,000-unit rate.

Building permits, which can be an indicator of future building activity, rose across the board in April. Overall permits were up 1.2 percent to a solid 1.71 million-unit rate, while single-family permits rose by an equal margin to a rate of 1.33 million units - exactly on par with their 2002 total. Multifamily permits rose 1.1 percent to 381,000 units in the month.

Source: National Association of Home Builders

Update on the Members Only Section
Mary Quinn, Member Services Marketing Coordinator

New Reports in the BC Wood Resource Center

BC Wood receives and sources market intelligence reports on a regular basis. Some of these reports are not available in electronic form, but in hard copy only. You can find out what the latest reports are, and some brief descriptions of them, by going to the Members Only section under Market Intelligence, Resource Center, What’s New in the Resource Center. Here is a listing of the newest reports in the Resource Center:

South Korea: Market Show Signs of Recovery
Brief report on the current market situation in Korea, including market trends.

Homdex 2003 Final Report
This is the final report from the Home Dealers and Developers Expo held in Korea, March 26-30, 2003. Included in the report are an attendee and participant survey, and a review of the advertising and promotion strategies.

The Construction and Building Products Profile: Korea
This report covers market opportunities, Korean housing industry, housing construction, timber industry and market, and Korea’s overseas construction orders.

Canadian Exports of Forestry Products to Korea
From Statistics Canada, information on Canadian forestry product exports to Korea from January 2002 to September 2002.

Conditions of Competition in the US Market for Wood Structural Building Components
U.S. production of wood structural building components increased from $7.5 billion in 1997 to $10.7 billion in 2002, according to the International Trade Commission (ITC). U.S. imports of wood structural building components, principally from Canada, increased from $169 million in 1997 to $394 million in 2002. The study covers structural building components including, but not limited to, beams and arches, roof and floor trusses, I-joists, prefabricated partitions and panels (including headers) for buildings and other structural wood members over the period 1997-2002 to the extent possible.

Canadian Subsidy Directory 2003
The Canadian Subsidy Directory is a comprehensive tool to start up a business, improve existent activities, set up a business plan, or obtain assistance from experts in fields such as: Industry, transport, agriculture, communications, municipal infrastructure, education, import-export, labour, construction and renovation, the service sector, hi-tech industries, research and development, joint ventures, arts, cinema, theatre, music and recording industry, the self employed, contests, and new talents.

This Publication contains more than 2000 direct and indirect financial subsidies, grants and loans offered by government departments and agencies, foundations, associations and organizations.

Marketing Guide for Emerging Furniture Manufacturers
This guide is a directory of marketing information for emerging residential furniture manufacturers and designers in North America. The purpose of the guide is to facilitate market development for new or small furniture designers or manufacturers trying to break into the larger North American marketplace and to expand production. It is a resource to assist in market research and marketing.

New Additions to the BC Wood Website

Business Etiquette Section
New in the Members Only section, under the Tradeshow Information section, is an area called Business Etiquette. Here you will find useful tips and information on how to do business in China, India, Japan, and Europe. Included are business etiquette tips on gift giving, greeting and introductions, appearance and dress, gestures, entertaining, and business negotiations.

Associate Members Alphabetical Listing
New to the BC Wood website is an Associate Member Alphabetical listing. Now you can search for members by name and be taken directly to their listing in the directory, where you will find a company description and contact information.

Members Only Site Feature
This month’s feature will focus on the Tradeshow Update section located within the Market Intelligence area of the Members Only site. BC Wood participates in many tradeshows and missions each year, but many of our members do not attend all of these events. That is why we have created the Tradeshow Update area. Here you can get a look at the show and see what the trends were, what products were in demand, who the competition was, and more. In addition, when available, contacts obtained from the show will also be posted in this area.

So, if you are wondering what happened at the last show that BC Wood attended, just go to the Members Only site, and under the Market Intelligence area you will find Tradeshow Updates.

The next set of tips, from Associate Member Exhibitree, focuses on Techniques For Creating Show-Stopping Graphics.

1. Use Photographs
   Attract more attention by using photographs instead of illustrations or other artwork. Photographs attract the eye first, and are more believable and better remembered. When used, illustrations and other line art should be rendered in an easy-to-understand style. Tell a story with your pictorial elements.
2. Limit Copy
   Limit the total amount of copy as people rarely spend time reading a mass of type on a graphic panel. Use simple language. Write copy in short sentences and keep your paragraphs short. Proofread the copy carefully. For final proofing, an impartial third party is the best way to catch errors.
3. Avoid...
   Superlatives, or the "brag and boast" syndrome, clichés and overused metaphors, superimposing copy on your illustration or reversing out large amounts of copy (white type against a black background), and periods at the end of headlines as they stop the reader from reading any further.

Japanese Building Standard Law

The Japanese Building Standard Law (BSL) was amended in July 2002 and will be enforced from July 1, 2003. The amended BSL has "sick house" regulations, which regulate chemical products emitted from building materials.

First, the use of building materials containing chlorpyrifos in buildings with habitable rooms will be prohibited. Second, the area size of formaldehyde-emitting building materials which can be used as interior finishing materials will be restricted according to the type of habitable room and the efficiency of ventilation.

It will become necessary for suppliers of building materials to test formaldehyde emission level and get JIS (Japan Industrial Standards), JAS (Japan Agricultural Standards), or approval from the Ministry of Land, Infrastructure and Transport (MLIT).

In the Members Only section of the BC Wood website, under BC Wood Marketing Program Japan, you will find a report from the U.S. & Foreign Commercial Service and the U.S. Department of State. This report provides an outline of the Japanese sick house regulations and shows how the regulations will effect building products imported from North America.

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Canada's Top Exporter of Packaged Homes - Viceroy Homes

BC Wood Member Viceroy Homes was recently featured in The Department of Foreign Affairs and International Trade "Stories of the Week" as Canada's Top Exporter of Packaged Homes. Following is the article that appeared.

When an earthquake destroyed large parts of Kobe, Japan, several years ago, Japanese-style houses collapsed while North American-style platform houses stood up far better. This proof of their sturdiness had a major impact in Japan and in other countries, leading to a breakthrough for Viceroy Homes, a company that specializes in pre-cut and panelized home packages.

Since pioneering the concept nearly half a century ago, Viceroy Homes has evolved into Canada's largest exporter of pre-engineered custom homes. It has also become the major Canadian supplier of packaged homes to Japan. In recognition of its outstanding international achievements, Viceroy Homes won a Canada Export Award and was named Canada's Exporter of the Year in 1999.

More than 75 percent of Viceroy's production is sold worldwide, with Japan by far its largest market. According to Christopher Lindal, Executive Vice-President, the Trade Commissioner Service (TCS) has been instrumental in the company's success there. "In the mid 1990s, the TCS organized a number of key trips to Canada for Japanese builders so they could see the types of construction here and to introduce them to Canadian companies in the home-building sector," says Lindal. "Since then, the embassy in Tokyo and the consulates in Osaka, Nagoya and Fukuoka continue to assist us, notably by setting up meetings and representing Canada at model homes' openings."

Viceroy's production facilities in Port Hope, Ontario, and Richmond, British Columbia, facilitate shipment across both the Atlantic and Pacific oceans. The company also has a sales and marketing office in Mississauga.

Source: The Department of Foreign Affairs and International Trade

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New BC Wood 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 Randi Walker at 604-556-3373 or toll-free at 1-877-422-9663.

A&A Contract Custom Brokers Ltd. is proudly B.C. owned and operated, and provides a full range of international trade services including U.S. and Canadian customs brokerage, cross border and international freight services, warehousing and distribution. Founded in 1979, the company is committed to quality service and innovative solutions on supporting the development of your export market.

Frauken Dannmeyer
604-542-7257

Medieval Glass (1986) is a leading manufacturer of decorative and clear insulated glass, with a full product line, for doors and windows. We have complete custom program capability and 700 staff in 4 countries. We're famous for our designs and innovations like self-aligning screwcovers and 2003's Award winning "Ultima" Fashion Blind.

Michael Wilson
604-940-0980

Western Economic Diversification Canada

Since its establishment in 1987, WD’s mandate has been to promote the development and diversification of the economy of Western Canada and to advance the interests of the West in national economic policy. WD pursues the goals through activities that are:

• Supporting the development of new and innovative technologies
• Encouraging and supporting western enterprise in business
• Ensuring sustainable prosperity in communities throughout the region

Steve Rhodes
604-666-1311

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Venture Kamloops Wood Products Manufacturing Forum

Venture Kamloops is hosting the second Wood Products Manufacturing Forum focused on strengthening the competitiveness of this industry for Solid Wood Manufacturers, Engineered Wood Producers, Home Builders, Finished and Semi-Finished Manufacturers.

Forum II: Friday, June 13th, 2003 at the beautiful South Thompson Guest Inn, Kamloops, BC

Topics & Speakers:

Financing – Implications of the Proposed New Forest Policy
Clive Rush, Sr. Consultant-Forest Industries
CIBC Commercial Banking

Inventory Control – Systems That Can Save You Money
Mary Morovic, Assoc. of Production Inventory Control Systems

Marketing Opportunities – Korea
Mike Jahraus, Managing Director, Asia Pacific

New Technology in Saw Filing - Forintek

Keynote Dinner Speaker – Gordon Wilson
Doing Business in India

And much, much more!

Details and registration information at:
www.venturekamloops.com

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Catalyst Training Services Inc.

Catalyst Training Services Inc. is holding a seminar on Front Line Leadership in Burnaby, BC on July 3 & 10, 2003 from 8:30am to 4:30pm.

Front Line Leadership enforces the principle that every level of supervisor is responsible for creating an environment in which people understand what is expected of them, can communicate effectively with each other, are involved in decision making, and take accountability for the work entrusted to them.

For more information, please see the brochure or call Dan Monteiro at 604-298-5505.

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Upcoming Tradeshows

PCBC
San Francisco, California
June 17-20, 2003

Market Showplace
Calgary, Alberta
June 21-23, 2003

For more information on these tradeshows, visit the BC Wood website.

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Associate Members Directory

Associations

Consolidators

Consultants & Marketing Services

Customs Brokers

Employment/Recruiting Service

Equipment Suppliers & Service

Finance, Accounting & Leasing

Importers & Manufacturers

Insurance Services

Information Technology Services

Legal Services

Shippers & Freight Forwarders

Trade Organizations

Training Providers

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Got Something to Say?

If you have any questions, comments, or would like to contribute to BC Wood News On-line, please contact
Mary Quinn at:

BC Wood
#1-31088 Peardonville Road
Abbotsford, BC
Phone: (604) 556-3373
Fax: (604) 556-3385
Toll Free: 1-877-422-9663
or email mquinn@bcwood.com