June July 2007 Volume 4, Edition 3  
In This Issue   BC Wood Website Links


Message from the CEO

Global Buyers Mission 2007

BC Wood Rona/Olympic Program

BC Wood AGM 2007

Introduction - Gary Tattrie

US Market Update (KBIS and AWFS show reports)

Asian Pacific Trade Commissioners Visit

Japan Market Update

Eastern European Trade Mission

WSN Inquiries

New Market Reports Available

Upcoming Shows and Events

New BC Wood Members


Associate Directory

BC Wood Contacts

Frequently Asked Questions

Marketing Program

Media

Members Only Section

Tradeshows

Western Wood Supply Network



Message from the CEO
Brian Hawrysh, CEO

These are interesting times in our industry. Many of you are facing business challenges that include shortages of raw materials and labor, a high Canadian dollar and staying competitive in our new global marketplace. However, during these difficult times I find it encouraging to see the resilient and entrepreneurial way you have responded to meet these challenges and move forward in efforts to improve your businesses. It's the old adage of "what can you do when someone hands you a lemon".

From recent discussions with the Ministry of Forests, it is clear that they too understand the challenges our industry faces and the need for a healthy and productive value-added wood products sector throughout the province. In response to this need, the Ministry plans to announce a new program, targeting small and medium sized firms, designed to improve the competitive position of companies in our sector. This new program, coordinated during the first year by BC Wood and Forintek, will expand on their current market development and technology transfer programs to include a broader range of business capacity building services. We anticipate that by the next newsletter we will be able to provide more information to you, with details on how the program will be rolled out to industry.

In the meantime, we are working very hard to ensure that the upcoming Global Buyers Mission in Whistler will be an outstanding event for our participating members. The international buyer recruitment is going extremely well, with a huge percentage of new buyers coming from not just our target markets, but from all over the world. With the addition of the Architects/Designers and Builder/Developer programs, we anticipate a very productive session, with something for everyone.

We also expect that our International Marketing Review and Annual General Meeting, to be held in Whistler September 13th, will be well supported by our members. This is a good opportunity to get updates from our in-market representatives from China, Europe, Japan and Korea and an overview of activities and opportunities in all our target markets. As a member in good standing, you will also have a chance to vote on your new Board of Directors for the upcoming year.

I look forward to seeing you there!

Brian Hawrysh



BC Wood RONA/Olympic Program
Roy Manion

Last month, we sent out an announcement regarding BC Wood's partnering with RONA to promote BC's value added wood products to the 2010 Olympic and related venues. As was stated in the announcement, as an Olympic Sponsor, RONA has privileged access to Architects, Specifiers, Engineers and Project Managers of the various Olympic and related venues for building materials. By partnering with BC Wood, RONA now has access to value added products from throughout BC. This partnership is indeed a win-win for both parties.

The program is now well underway. Headed by Roy Manion, BC Wood's Project Liaison Manager, BC Wood has teamed up with RONA for two major presentations to industry, one at BC Wood's Langley facility and the other at RONA's facilities in Vancouver. Over 70 representatives from our industry attended the two presentations. Those who attended learned about the opportunities and mechanics of the program. Judging from the responses after the presentations, they were very well received as many could see opportunities for their respective companies.

Plans are now underway for presentations to be held on Vancouver Island, the Okanagan and the Interior. Announcements regarding time and locations will be forthcoming in the next couple of weeks. As this is a great opportunity for our industry to showcase its products on a world stage, we hope you can attend the presentation when it comes to your area.

As explained during the presentations, the venues we are currently working on are: 2010 Commerce Centre being built in Robson Square in downtown Vancouver, the BC Canada Pavilion in Beijing for the 2008 Summer Olympics and the Willoughby Events and Recreation Centre being built in Langley. All three venues will showcase BC's value-added wood products. As soon as specs are determined, Roy will be in touch with the members in the applicable sectors.

For those who have yet to hear the mechanics of the program, key issues for industry when contacted for product for these venues, are:

· Quick response - within 48 hours (even if you can't quote let us know)
· Prices must be competitive
· Product must be of good quality
· Delivery must be complete and on time

For anyone wanting further information on the RONA / BC Wood Olympic Program, please contact Roy Manion at BC Wood's office at 604-882-7100 or e-mail him at rmanion@bcwood.com.


Introduction - Gary Tattrie
Gary Tattrie, Director Remanufactured & Engineered Wood Products

Greetings & Hello!

I have recently had the honor of being hired by BC Wood as the new Director of two key membership sectors - Remanufactured & Engineered Wood Products. Some of you already know me, however, by looking at the contacts on our membership list, many do not. Please let me introduce myself.

As an employee, I bring to BC Wood a number of attributes including; formal training - UBC Forestry graduate, Resource Management & Commerce; a diversified business background - 30 years in the sales, marketing, & product development of solid wood products around the world; and perhaps most importantly, motivation - an enthusiasm for the wood products business and a strong work ethic.

I know some of you from my time at BC Forest Products, Seaboard Lumber Sales, Noranda Forest Sales, Tembec Forest Industries - and others from my entrepreneurial days as Principal of GW Tree, Inc. I have been a wholesaler, consultant and project manager, which means I have a lot of experience in remanufacturing and engineered wood products and practices - and now I am bringing those skills to BC Wood members.

I give you my unwavering commitment to assist you in whatever way I can to make your business a success and your BC Wood membership a positive, financial investment. I look forward to setting up individual appointments to meet all of my sector members/contacts, in person, by the end of this year at the latest. Please feel free to contact me at any time at 604-882-7100 or by email at gtattrie@bcwood.com.


Report on Asia-Pacific Trade Commissioners Mission Program
Randi Walker

A group of ten Trade Commissioners visited British Columbia on a forestry/forest products company outreach & fact-finding mission, hosted by Forestry Innovation Investment (FII) from Sunday May 27th, to June 1st.

The Canadian Trade Commissioner Service exists to promote Canada's economic interests across all sectors in the global marketplace. Trade Commissioners often serve as the frontline in fielding in-market inquiries. Facilitating relationships and information exchange with Trade Commissioners improves their effectiveness in representing BC's forest sector in Asian markets.

BC Wood has an excellent relationship and works closely with many of these overseas posts and was pleased to organize tours at Teal-Jones and Central Cedar. Our thanks to Mike Friesen and Dick Jones at Teal Jones and Jim Fenton, Mike and Pat Demens from Central Cedar for their interesting and informative on-site tours.



Attendees included:
Venus Chen, Taipei, Taiwan
Sharan Fam, Kuala Lumpur, Malaysia
Shirley Jiang, Beijing, China
Keith Kan, Shanghai, China
Dian Milasanti Martosoebroto, Jakarta, Indonesia
Tuy Dinh, Ho Chi Minh City, Vietnam
Viney Gupta, New Delhi, India
Pino Lee, Seoul, Korea
Akira Kajita, Tokyo, Japan
Celestina Leong, Brunei Darussalam

Later that day, presentations from Wayne Iversen of COFI and Brian Hawrysh of BC Wood, reviewed marketing and market access programs being delivered in the attendees respective markets. This was followed by a reception, which included many forest products industry representatives and government officials from both the Ministry of Forest and Economic Development.

For more information on this year’s Japan programs, please contact Jim Ivanoff at ivanoff@canadawood.jp


Easterm European Trade Mission
Dave Farley / Ludger Spohr

BC Wood and member companies organized and participated in a trade mission to Eastern Europe this July to explore the resort housing market. Our goal was to research potential opportunities in the Eastern European market for Canadian suppliers of high-end pre-built housing in the resort market of Hungary and Croatia. Hungary has been a member state of the EU since 2004, whereas Croatia has applied for membership and hopes to join the EU within the next few years.

Our mission consisted of meetings and seminars with local architects, builders, developers and timber importers. Many of the participants had a strong background and understanding of Canadian building technologies and showed interest in importing this style of building to their home countries. In both Budapest Hungary and Zagreb Croatia the Canadian Embassies provided great support and organized 2 Canadian housing seminars, attracting over 70 building professionals at the events.

In Hungary, the group found that European building codes and standards are firmly entrenched and may pose a barrier to the market. Local and municipal authorities have approval status and have to give the final OK to each building system. Nevertheless, there was significant interest in the products we had to offer and a special affiliation between the groups we met and Canada. In the 1950s, the entire Sopron School of Forestry (students and faculty) relocated to Canada and the UBC Faculty of Forestry in order to escape communism. To this day, this relationship has created a strong link and affection toward wood products from Canada. More importantly, however, is that the interest in Canadian products also comes with an understanding of Canadian building methods. CE standards still need to be met and that may be a challenge for most North American suppliers.

In Croatia, the group discovered that there was much more of a laissez-faire attitude towards the import of building materials and housing kits. During the seminars we met with Croatian builders who currently import building products from Canada and are developing a number of single-family homes every year. The highlight was a trip down to the beautiful Croatian coast to meet with several developers and investors in the resort hotel market. We toured several types of hotels, both detached and non-detached units. In this region there is potential for Canadian building and finished wood products as we discovered a number of four and five start resorts being planned for this area.

Some of the key contacts made will travel to the GBM in Whistler to follow up on the l discussions we had with building professionals in these two promising countries. If you wish to discuss opportunities in either of these countries, please contact either one of us at dfarley@bcwood.com or lspohr@bcwood.com.

 


WSN Inquiry System
David Pao

As we continue to work at improving the quality of inquiries circulated on the WSN system, it is good to hear that some real business is being generated offshore. However, it is a work in progress and your support and feedback is appreciated.

Here a few of the most recent inquiries on our system:

Inquiry #7869
Market – Japan
Inquiry Type – Remanufactured Products
Product Description/Details: Rough Pine Lumber, 16x120x4000, 21x120x4000
Quantity – 2-4(40ft) containers/yr

Inquiry #7865
Market – Korea
Inquiry Type – Remanufactured Products
Product Description/Details:ACQ treated hemfir for decking28x140x3600, 21x120x3600, 15x95x3600 Quantity - Container 40ft.

Inquiry #7864
Market – United States
Inquiry Type – Log homes
Product Description/Details:Looking for supplier of 8"x 2 1/2" log siding

Inquiry #7858
Market – Japan
Inquiry Type – Remanufactured Products
Product Description/Details:Furniture cutstock, S2S, Lodgepole Pine, 25 x 152, 33 x 152
Quantity – 2 Containers 40ft

For more information on the WSN, please visit www.bcwood.com or contact David Pao at dpao@bcwood.com or 604-882-7100.


Upcoming Shows and Events

August, 2007
Japan DIY Home Centre Show
Location: Chiba, Japan

September, 2007
BC Wood Global Buyers Mission
Location: Whistler, BC

October, 2007
Salon Maison Bois
Location: Angers, France

Interbuild
Location: Birmingham, UK

Pacific Building Trade Expo AIA
Location: Honolulu, USA

Log Home and Timber Home Show
Location: Concorde, USA

100% Design Tokyo
Location: Tokyo, Japan

Nagoya Architecture Expo
Location: Nagoya, Japan

Building Component Manufacturers Conference
Location: Columbus, USA

Branchentag
Location: Cologne, Germany

Expo Cihac
Location: Mexico City, Mexico

HCMC Expo
Location: Ho Chi Minh City, Vietnam



New BC Wood Associate Members

Smart-tech Building Solutions Inc.
Smart-tech Building Solutions Inc. is a Distributor of 'Green' Modular and Portable Buildings manufactured using Structural Insulated Panel (SIP) technology. SIP buildings have numerous advantages vs. traditional Concrete or Wood Framed structures including higher Energy Efficiency, reduced Construction Time, Labour and Cost, and offer superior Quality and Comfort. SIP structures are used for both Residential and Commercial applications.
Brian Leitch bmleitch@smart-techsolutions.com

Everest TMI
Everest TMI Enterprises Ltd. Everest TMI Enterprises Ltd. work on quality control, lumber recovery, log grading for the custom cutting programs; and with manufactures of processing supply material projects.

Wei Liu everesttmi@shaw.ca

Chinski Information Management Ltd.
Chinski Information Management Ltd. offers proofreading, editing, writing and indexing. The company has experience in a variety of subject areas, both technical and non-technical. No document is too small nor too large as our expertise ranges from one page promotional pamphlets to mega consultant studies.
Don Chinski chinski@shaw.ca


BCIT Announcement

BCIT's new wood manufacturing program is designed to facilitate training in your hometown, on your schedule, without having to leave work. For more information on this innovative program, click here or contact Program Head John_McDonald@bcit.ca.

 



Global Buyers Mission 2007
Randi Walker

If increased sales and global partnerships are on your wish list, then the BC Wood Global Buyers Mission (GBM) is for you. Simply put, this event is the most cost effective way to showcase your product to a highly qualified group of local and international industry professionals.

As you know, the BC Wood Global Buyers Mission has developed a reputation in international markets as one of the best events to attend, for those looking for new sources of wood suppliers.

Why should you attend?

Key local and international decision makers in the wood industry are on their way to Whistler to meet with BC's top manufacturers of value-added wood products. They can and WILL be making buying and partnering decisions with companies they meet at GBM 2007. There is no better way to secure a one-on-one audience with such a high profile group of this industry's global elite.

Architects & Designers
Our Architects & Designers Program addition this year has been received well by the Architectural Institute of British Columbia (AIBC) and the targeted Architects & Designers we have invited.

Their program will include seminars at the GBM and site tours of some of Whistler's architectural marvels, all of which qualify for AIBC/AIA Learning Units. This offers them, along with invited Developers & Builders, an excellent opportunity to find new sources of high quality, innovative and competitively priced wood products - from you!

Extended Mission Programs
In addition to GBM 2007, our annual extended mission programs continue to offer an unsurpassed opportunity for both the buyers - to make direct contact with the manufacturers, and the manufacturers - to build the important trust and relationships necessary in these important markets. Our overall goal for the 2007 GBM is to recruit 70% new buyers from our high target markets in China, Japan, Korea, Europe and the US.

Interested?
You should be! As you know, BC Wood has gathered these participants as part of our ongoing commitment to increasing the sale of BC wood products, both locally and throughout world.

Limited Exhibit Space Available
Effective today, we have sold 98% of our booth space. We encourage you to contact Randi Walker at rwalker@bcwood.com or by phone at 604-882-7100 immediately to secure booth space at Canada's largest value-added trade event!


BC Wood 2007 Annual General Meeting and Members Only Program

BC Wood will be holding our 2007 Annual General Meeting and Members-Only Program on September 13th in Whistler, British Columbia. All BC Wood members are encouraged to attend a special half-day event incorporating our AGM activities, along with some very special guest speakers and reports from our In-Market Representatives.

The program is designed to also give our Global Buyers Mission exhibitors an opportunity to participate by scheduling the program at the Whistler Conference Centre.

If you would like to attend this special half-day program but are not participating in the Global Buyers Mission, please complete the attached registration form here (Registration ensures we will reserve space for you at the Luncheon and evening Welcome Reception).



US Market Update

KBIS - May 7 - 10, 2007
Randi Walker

For the first time, BC Wood and members attended the Kitchen & Bath Industry Show (K/BIS) in Las Vegas, May 7th to 10th. The annual K/BIS event showcases the very latest products and cutting-edge design ideas in the kitchen and bath industry. This captivating event featured the largest array of product displays and demonstrations, National Kitchen & Bath Association (NKBA) professional development courses, NKBA keynote speeches, interactive roundtable sessions and the opportunity to network with thousands of industry professionals.

The forum for dealers, designers, architects, distributors, retailers, home centers and many other kitchen and bath professionals, K/BIS is the world's largest international trade event dedicated to the kitchen and bath industry. K/BIS 2007 brought together over 900 companies exhibiting their products and more than 40,000 national and international industry professionals.

BC Wood members included Merit Kitchens, Norelco Cabinets, STOR-X Organizing Systems and Nickels Custom Cabinetry. Norelco also had their kitchen in the exciting NextGen "Market Trends" Home Experience, featuring the latest trends in kitchen and bath design in a real home. Some of the biggest names in the industry debut their latest products as part of the "must see" presentation.

Norelco, STOR-X and Nickels shared floor time in BC Wood's beautiful new multi-panel LCD display, each using a professional, custom designed video presentation.

K/BIS 2008 will be held at McCormick Place in Chicago, April 11th to 13th, 2008.

AWFS Fair 2007 (Association of Woodworking & Furnishing Suppliers)
David Pao

BC Wood has just finished exhibiting at the largest ever AWFS Fair in Las Vegas, Nevada. From July 18-21, the Association of Woodworking & Furnishing Suppliers marked its 50th anniversary at the Las Vegas Convention Center. Over 850 exhibitors took space in both the North and South halls demonstrating woodworking machinery and tooling, hardware products, panel and board products, wood components, software, and other technologies related to the woodworking industries.

At the show, BC Wood shared an exhibit with member companies promoting products and companies to participants. There was a consistent, strong interest for hardwood lumber and wood veneer products that would be further processed in the cabinet and furniture manufacturing industry. Over the four-day show, participants approached staff from BC Wood and member companies inquiring about ways to find new, alternative sources of wood products. Participants included key distributors and wholesalers of wood products going into finished wood products like furniture, doors, windows, and millwork. Also present at the show were many cabinet manufacturers looking for new sources and species of high quality veneer products.

BC Wood used the new four-screen LCD display to highlight member companies at the show. Attendees and exhibitors all commented on how visually striking and attractive our booth looked. By the end of the week, BC Wood and participating members had collected many good contacts and potential sales leads.

"It was a very good show and we got some very good exposure into the Southern California, Utah, and Arizona markets. We had some good opportunities to connect with current and new customers and are excited about attending next year" - Tony Pistilli, Sales Carlwood Lumber.

For more information about this show, please contact David Pao at dpao@bcwood.com or 604-882-7100.


Japan Market Update
Jim Ivanoff

Japanese Importers Eager to find Canadian Suppliers

Recently I have been visiting many clients to invite them to the upcoming GBM and have been pleasantly surprised by the great interest in BC lumber products. While the continuing strength of the Canadian dollar is a major concern for BC exporters, the Euro's climb has been even more dramatic. In general, many importers "gave up" on Canada years ago thanks to the aggressive sales efforts of the Europeans and their promise of higher quality products. However, these are the same companies that are now suffering because of the Euro and they are once again eager to look for Canadian suppliers.

Over the past ten years, as Japan shifted to European suppliers, the market here has changed dramatically. For example, Japan's wood manufacturing industry has seen a hollowing out and most importers prefer to carry products that do not require any further processing in Japan. This was aided by the European ability to supply Japanese sizes and levels of quality so that finished products could be imported with confidence. Thanks to the strong Euro though, Japanese importers are very interested in looking at Canadian companies that are able to provide these products.

Conversely, with the recent weakness of the Yen, Japanese wood manufacturers have become more competitive on labour costs. As a result, some companies have expressed an interest in rough lumber from Canada that can be finished in Japan. With renewed interest in both finished and semi-finished products, Canadian companies have a unique window of opportunity to retake some of the Japanese market that was lost to Europe.

In addition to the strong Euro, the Russian log export tax has many in the industry here looking for long-term supply solutions. The Nikkei Newspaper recently reported that Sumitomo Corporation will expand its milling operations in Russia by 2009 and expects to be processing 700,000m3 there by that time. Meanwhile Sojitz Corp is studying whether or not North American companies can supply logs cut to 4m in order to meet the needs of Japanese plywood manufacturers.

Of course Russia is hoping that Japanese companies will choose to invest in new mills there but this is a risky proposition from the Japanese point of view. The fact that the Russian government forced Mitsui and Mitsubishi out of the Sakhalin 2 natural gas project once they completed major investments, does not give Japanese companies much faith in dealing with Russia. All of these factors give importers the incentive to look for new stable sources of wood products and Canada is once again on their minds.

To take advantage of this opportunity we are offering members several programs this fiscal year. The first one being the Japan Home Show in November for which the application deadline is looming. The other will be a remanufactured wood products mission that will specifically target current importers of European wood products. Also, please keep an eye on the WSN as we have received many inquiries from companies trying to find new suppliers right away.

For more information and pricing of this year's Japan trade show program, please contact Jim Ivanoff (BC Wood Japan Program Manager) by e-mail at ivanoff@canadawood.jp.


Market Intelligence Available for BC Wood Members

In the past year, BC Wood has contracted numerous studies on behalf of our members, to improve your knowledge and understanding of many issues relating to market access and market development in our target markets. Shortly, the following studies and reports will be available for you to download from our Members-Only website:

Market Study of Cabinet Opportunities in Resort Communities of North Eastern California
Opportunities were investigated around Lake Tahoe in the state of Nevada and California. Located in the Sierra Nevada mountain range, Lake Tahoe straddles California's eastern and Nevada's western state. The ski resort town of Mammoth Lakes, also located in the Sierra Nevada mountain range of eastern California, was investigated. It is located 325 miles northeast of Los Angeles and 325 miles east of San Francisco.

The Status and Potential of the Coastal Secondary Wood Products Industry
During the last five to ten years, much of the coastal secondary wood products industry has experienced a significant shift in scale and business focus. This has created numerous challenges for the secondary industry but, at the same time, some new opportunities have arisen.

European Log Building Export Guide: Market Focus on France
BC log and timber buildings markets, in order of volume have been and continue to be USA, Canada, Japan and Europe, with the large majority (approximately 80%) USA. The strengthening Canadian currency, or more properly, the weakening US currency, has increased the challenge of competing in all markets. This is also true of the European market.

A Report on the Japanese F**** Rating Process for Value-Added Wood Products
After the Kobe earthquake in 1995, the Japanese Government introduced a series of changes to improve the integrity of homes constructed in that country. Part of the changes included a rating system to ensure the interior environment of residential housing in that country called F****. The F**** rating system covers much more than interior air quality and is not targeted at any particular product or building system. However, it is the interior air quality provision that concerns BC value-added wood processors and is reported upon in this report, specifically the area of formaldehyde emissions.

Comparing Factors of Production in the Furniture Industry of the Pacific Northwest
This study will discuss a number of important factors of production in the furniture manufacturing sector of the PNW and how they compare between states and provinces. Although the focus of this discussion will largely be on labour costs, the study will also include a brief discussion of other cost drivers such as taxes, utilities, business insurance, raw materials, financing, regulation, and training.

A Report on Market Access Barriers in the US, Japan, Korea, China and the European Union
This report provides details of market access issues to a number of markets important to BC Wood members in the US, Japan, China, Korea and the EU.
In these markets the key issues are directed to making residential structures safer and healthier and providing definitive guidelines for manufacturers who want to sell their products to consumers.

Analysis of Market Segments in Industrial End-Users in China
The objective of this study is to provide a detailed overview and analysis of the uses of nonstructural lumber in Chinese industry sub-sectors, including furniture, giftware and interior finishing products. The information gathered will bench-mark the current state of these industry sub-sectors. As well it will provide B.C.'s lumber remanufactures with a guide to the opportunities that are available within these sub-sectors.

An Investigation of the Green Building Market in the State of California and its Relevance to the BC Cabinet Industry
This paper provides a discussion on the market potential for green cabinets, in the California market place. This market is significantly driven by the green building movement but also by the healthy housing movement, which is primarily concerned with indoor air quality.

Market Opportunity for the Log Home and Timber Frame Sector in the Carolinas
This report focuses on the market potential for the log home and timber frame sector in the western region of North Carolina, an area known for its mountain lifestyle and affluent residents. Western North Carolina, a 23-county region that covers 10,000 square miles, is within a one day's drive of half of the entire United States' population of almost 300 million people.

The Market for Canadian Industrial Lumber in Japan: An Analysis of Market Segments in Industrial End-Users
The Japanese industrial lumber market has been going through significant changes for the past five years. While the Japanese economy has finally recovered from the collapse of the "bubble economy" in 1991, several trends have continued to shrink this market.

Secondary Manufacturing of Solid Wood Products in British Columbia: 2006 Structure, Economic Contribution and Changes Since 1990
This report presents the results of a 2006 survey of the BC secondary manufacturing wood industry. The survey gathered operational, employment, production, marketing and financial information on eight defined product groups of business types, with supplemental information added for a ninth, firms producing panelboards.

Market Opportunities for Cabinets and Millwork in the I5 Corridor
This market study is a guide to help BC manufacturers of finished wood products, cabinets, and millwork products to increase their ability to get their products into the I5 corridor region.


 

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


  June July 2007 Volume 4, Edition 3  



Copyright 2007. BC Wood, All Rights Reserved.
For past issues of this newsletter, please see the archives.