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| March 3, 2003 | Volume 2, Edition 10 |
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What’s the Program?
In a nutshell, here’s how we will come up with next year’s program:
Of course there is no guarantee that we will get everything we ask for; but, BC Wood has a good track record of performance and we have the confidence of both funding agencies. To give you an idea of what we plan to propose this year, here is a summary by program:
If you have input on any of the markets or any of the activities planned
for the markets above, or any other suggestions, please call me
(604-556-3373) or e-mail me (bdowning@bcwood.com) as soon as possible. New BC Wood Trade Event Structure
Featured in this edition of News On-Line is BC Wood’s trade event schedule for the 2003-2004 year. As important as the trade schedule is to our members, perhaps as important is the new trade event structure that begins April 1, 2003. Previously, members would sign up for an event, attend the event, and then receive a reconciliation down the road. Meeting the requirements of our funding partners, while satisfying the needs of our members, can be a tricky balancing act. Along with the mandatory performance measures set by Forestry Innovation Investment, BC Wood’s number one goal is to provide our members with the programs and services that will help them develop and take advantage of opportunities in international markets. So when we were told that BC Wood cannot, under any circumstances, cut cheques to members, we were faced with a challenge- how do we ensure members still receive the same in-market benefits when attending a BC Wood sponsored tradeshow or trade mission? Receiving cost share for a trade event provides an opportunity for our members to make contacts, gather market intelligence and create sales opportunities in markets they otherwise may not be able to visit. In order to continue providing our members with these opportunities, we have come up with a new structure. BC Wood will purchase flights, accommodation, booth space, shipping and lead retrieval for trade events in the United States and Western US. For trade events taking place in China, Europe, India, Japan and Korea, these services will be provided, as well as interpreters and ground transportation. Members then purchase ‘seats’ for a trade event. You will be presented with the member cost, which will be 50% of the entire package cost. By purchasing or putting a deposit on a seat, you will secure your place at that trade event. Package costs will vary the closer to the event you book. For example, you will pay less if you purchase a package two months before the show, as opposed to ten days prior. Initially, we were not jumping at having to change our policies and structure. However, after mapping out the new structure, many positives emerged. A few of these include not having to wait for reconciliations, knowing almost exactly what attendance at an event will cost, a per diem that now reflects the cost of doing business in different countries, and other logistics that are taken care of for our members. We will have more information as we put budgets together for the events, and this will be available in the next News On-Line, as well as on our website at www.bcwood.com. Remember, if you know of any events that would be of interest to members, we would like to hear about them. The trade event schedule is flexible, and is based on industry support and interest for an event. 
Tentative Trade Show Schedule for 2003/2004
Canadian Embassy Release: Advisory to Canadian Exporters of Building Products to Japan Canadian exporters of building products to Japan should be aware of new regulations to take effect on July 1, 2003, that impose new testing and certification requirements for volatile organic compounds (VOCs). The Building Standard Law (BSL) of Japan was amended last year to require that technical standards be developed to regulate air quality in "habitable rooms" (defined as rooms in residences, commercial office space, restaurants, hotels, etc. where people are normally present) by restricting building materials that contain VOCs and by requiring ventilation systems in all buildings (BSL section 28-2). As a result of this amendment, the Ministry of Land, Infrastructure and Transport (MLIT) has announced regulations that will take effect on July 1. In accordance with these regulations, materials containing chloropyrifos (termite retardant) can no longer be used in habitable rooms. JAS and JIS standards are being revised to accommodate these new air quality requirements. For products that are not covered by JAS or JIS, the new regulations will require them to be tested for formaldehyde by a designated evaluation body and approved by MLIT. This applies both to domestic products as well as products imported from abroad. The new regulation is intended to target primarily indoor panels as well as built-in cabinets and closets. The regulation does not intend to cover interior trim such as moulding, hand-rails and door jams. Although the Japanese government originally wanted solid wood flooring to be covered by the regulations, they have since indicated their intention to exclude this product from the regulations (laminate and composite flooring is however, regulated). The Canadian Embassy in Tokyo will periodically be distributing additional information about these regulatory changes as it becomes available. If you have received this advisory through a third party and wish to be put on the distribution, please contact Marimi Kasahara at 011-81-3- 5412-6415 e-mail marimi.kasahara@dfait-maeci.gc.ca. This information will also be placed on InfoExport at http://www.infoexport.gc.ca/ie-en/SectorDetail.jsp?nid=565. Further information can also be found on the MLIT website: http://www.mlit.go.jp/. If you have concerns or questions about these new regulations, please contact: Keith McKellar, Senior Industry Officer, Industry Canada, Vancouver 604-666-1410 mckellar.keith@ic.gc.ca Joy Vicente, Trade Commissioner, Department of Foreign Affairs and International Trade, Ottawa, 613- 995-1678 joy.vicente@dfait-maeci.gc.ca Masayo Umeda, Commercial Officer,Canadian Embassy, Tokyo (e-mail: masayo.umeda@dfait-maeci.gc.ca) Matt Fraser, Trade Commissioner, Canadian Embassy, Tokyo (matt.fraser@dfait-maeci.gc.ca). Important Note: The Government of Canada assumes no responsibility for the accuracy or reliability of any information and intelligence used in drafting the present advisory, which has been prepared for convenience of information and reference only. For all purposes of interpreting and applying the Building Standards Law Regulations of Japan, the official published text of these Regulations should be consulted.
Canadian Embassy, Tokyo 05Feb03
Member Spotlight: Blue Mountain Pine
Little did Steve Roscoe, President of The Woodland Flooring Company Inc., and Marvin Fox, President of Whiskey Flats Lumber Company Ltd., know that when they exhibited at the 2002 Surfaces show, it was the beginning of a partnership that would have them jointly exhibiting at the 2003 show this past January. Woodland Flooring has been manufacturing quality, wide-plank flooring made from Douglas Fir and Lodgepole Pine, for cottage and country homes since 1998. All orders are customized by staining, distressing, sanding, and spray finishing by hand. They use wood that is certified by the FSC, diseased, wind fallen, or dead standing lumber. Whiskey Flats Lumber Company has been in business for two years and has been a BC Wood member since they started. They manufacture wide-plank flooring and wide-plank wall panelling out of Douglas Fir and Lodgepole Pine, and make them to widths of twenty inches.
"Attending this show, with the help of BC Wood, Whiskey Flats has access to timber, so they supply the Pine for their new joint marketing initiative, and Steve Roscoe focuses on the marketing and sales. It took an entire year of planning to get the concept off the ground and ready for the initial launch of their product at this year's Surfaces show. They exhibited the Blue Mountain Pine flooring, as well as flooring from both Woodland and Whiskey Flats. The response they received was overwhelming and very positive. They obtained two new dealers in the Oregon area, received over 160 dealer and sales leads for the three product lines, and a week after the show, got three orders for floors. "At least half of the leads were of good quality for Blue Mountain Pine," comments Marvin Fox. When asked how his own line of products did, Marvin responded, "People were flabbergasted to see a twenty inch wide floor." The Blue Mountain Pine flooring offers many features - it is available in widths up to 7.5 inches, end matched, pre-finished or unfinished, and shipped duty free to the United States. The name was carefully chosen as it appeals to the US market, where they are currently focusing their exports efforts. "The US clients seem to have a favourable response to the name, as there is also a Blue Mountain in the United States. The name has definitely helped to spark their interest," comments Marvin Fox.
The blue pine is unique in that it is very difficult to pull the blue out
of the pine, turning it into a high-end product. As the process is more
challenging and requires more time, customers are willing to pay a higher
price for the product. Since they produce a high-end, While at the Surfaces show, having access to an expo card reader proved to be a huge benefit. "This saved us a lot of time, as the card reader took all the contact information, and we had more time to talk to the prospect," comments Steve Roscoe. As a 10x10 booth was quite tight with four salespeople, they also decided that they will need a bigger booth next time. Having product displayed for customers to see also proved to be very beneficial. "Our displays were so well received that some dealers wanted to take them right off the floor so that they could put them in their own showroom," adds Steve. Steve and Marvin offer some advice for future show-goers. "Display your product nicely, as if it were your own showroom. Also, make sure that your staff are 100% knowledgeable on products, sales, shipping and the manufacturing process," says Steve. Marvin adds, "Keep your product simple and know your products inside-out. The hardest part is keeping the momentum after the show and following up with all the leads." While both companies will share in the Blue Mountain Pine flooring marketing initiative, they will still operate as two separate companies and continue to manufacture their original products. Based on their experience at the Surfaces show, Woodland Flooring realized that the market in the US is much larger than they can currently handle. This means that they will have to update their facility in order to increase their production volume, while keeping the quality the same. In addition, by sharing their kilns and moulders, both companies can produce four times more product than using just their own equipment. The show far exceeded Marvin’s expectations and he believes that he will be able to double his annual goal from the Surfaces show alone. "We wouldn’t be where we are today if it wasn’t for the help of BC Wood," comments Marvin Fox.
Housing Starts and Building Permits for Canada and USA
US Housing Starts in 2002 Builders ramped up production of new homes and apartments near the end of the year, finishing with a total of 1.7 million units. This is the greatest housing production figure in 16 years and includes the largest number of single-family homes built in 24 years. These housing starts for 2002 include 1.36 million single-family units and 345,000 multifamily units. The single-family total is the best in 24 years, while the multi-family total is the best in four years. Source: U.S. Department of Commerce
Canadian Building Permits for 2002 (Preliminary) Last year's $45.9 billion annual (preliminary) total was a 16.0% increase from 2001 and a seventh straight annual increase in overall construction intentions. The value of residential permits totaled $29.0 billion in 2002, up 32.1% from 2001, fuelled by strong increases for both single and multi-family dwellings. For the first time since 1989, the 200,000 unit mark was surpassed for a single year, as municipalities authorized the construction of 212,400 new dwelling units in 2002. In 2002, permits for single-family dwellings (which represent more than 70% of the residential sector) totalled $20.9 billion, up 32.0% from 2001. The value of multi-family permits advanced 32.3% in 2002 and totalled $8.1 billion. Source: Statistics Canada
Canadian Building Permits for December 2002 Source: Statistics Canada
Canadian Housing Starts Down in January 2003 The seasonally adjusted annual rate of urban single starts decreased 7.6 per cent to 97,800 units in January from 105,800 units in December. Urban multiple starts decreased 8.0 per cent to an annual rate of 63,700 units in January from 69,200 in December. Rural starts in January were estimated at an annual rate of 21,700 units. Source: Canada Mortgage and Housing Corporation
United States Wood Furniture Imports Canada, which was supplanted by China as the leading foreign source of U.S. wood furniture and parts, posted a modest 2.1% increase. Meanwhile, Taiwan, which was the number one source of furniture imports throughout most of the 1980s and early 1990s, fell to number 8 behind Thailand. Source: ISW Online
US Housing Starts and Building Permits for January 2003 Single-family housing starts in January, 2003 were at a rate of 1.510 million, 2.1% above December's 1.479 million. Building permits for privately-owned housing units, a key indicator of future activity, dropped in January to a seasonally adjusted annual rate of 1.781 million, 5.6% below the revised December rate of 1.887 million, but 5.6% above the January, 2002 estimate of 1.686 million. Source: US Census Bureau
Western Quality Wood Products Ltd. Tuesday, March 18 - 10am 9494 198th Street, Langley Preview: Monday March 17th - 10 to 6   All remaining assets and inventories from Western Quality Wood Products Ltd. on behalf of Campbell, Saunders Ltd. Weinig Unimat 17A 6 head moulder; 2 Mattison 4 head moulders, Weinig Rondamat R931 tool grinder, cutterhead & knife inventory, Maka 9 head mortising machine, 12 head multi drill, Wadkin single & double end tenoners, Ogam & Baker rip saws, Sandingmaster belt sanders, 3 station press, Doucet clamp carrier; shapers, planers, extensive dust collection system & paint line, forklifts & offices. Plus ending inventory of raw materials & WIP including fir, cedar, hemlock and garage door inventory. 
For pictures and information, visit
www.timelinesales.com or call
FDM Forecast For Value-Added Products in the United States
The December, 2002 issue of FDM magazine reported 2003 predictions for the cabinets, office furniture, and home furnishing markets in the United States. These statistics will give you an indication of how well each industry is doing, especially if you are thinking of, or already exporting to, the United States.
Housing Boosts Cabinet Sales The Chief economist for the National Association of Home Builders Association predicts that residential remodelling will be strong in 2003, with a growth of about two percent. This growth of remodelling is good for the cabinet business since it now accounts for 75 to 80 percent of all sales in the industry. Another reason the cabinet industry has done so well is due to the fact that many manufacturers offer semi-custom and custom service, which is a very attractive option to customers.
Office Furniture With the economic downturn over the last year, office construction has declined and office vacancy rates have increased. Office construction fell over the first eight months of 2002, compared to the same period in 2001. Predictions for 2003 suggest a decline until market conditions can improve enough to support construction growth.
Home Furniture 2001 was a very weak year for furniture sales, so it is expected that furniture sales will increase in the future due to the pent up demand. As stated earlier, US consumers are also investing more into their homes, as the nesting syndrome sets in with last year's terrorist threats and the possibility of war this year. The desire to be at home, and in a comfortable one at that, will help push furniture sales to the highest it has seen in years.
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BC Wood is pleased to present the following upcoming Market Expansion Program Workshops: How to Select the Right People International Trade Research Export Finance & Insurance 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. 
BC Wood's AGM and International Conference will be held in conjunction with the annual Forintek Conference for 2003. This year we will be at the Sheraton Wall Center Hotel and Conference Center in Vancouver, from October 2nd to 4th. Check the BC Wood website regularly for updates on our program, sponsorship opportunities and registration details. If you have any comments or suggestions for this year's event, please contact Randi Walker, Manager of Member Services at rwalker@bcwood.com, or call our office toll free at 1-877-422-9663.
THE RESULTS ARE IN!
70% of you responded that you had received our monthly newsletter, News On-line. 55% have visited our website and spent the majority of your time in the Members Only site looking at Market Intelligence, International Marketing Programs, What’s New and Tradeshow Information. Although 70% have received inquiries from the WWIS, only about 10% of these inquiries have resulted in new business for you. 37% of you are interested in attending Tradeshows – 40% in the US, 22% in Japan, 15% in China and 14% in Europe. 27% are interested in Missions and 27% want to go to the US, 20% want to go to Japan and China and another 12% are interested in Europe. 68% of respondents would like to see an International Database of Buyer’s and 25% would like assistance with Employment/Placement Services. 30% of members have attended one of our Market Expansion Programs (MEP) and almost 80% benefited from their participation. 80% of respondents are happy with our Member Services overall. 31% of you have been impacted directly by the Softwood Lumber Agreement and 37% indirectly. Of items listed as limiting the growth of your organization, Marketing was the number one issue, followed in equal parts by Fibre Supply, Capital Investment and People (expertise).
We are pleased to welcome the following new BC Wood Members who have joined us since February 1, 2003: M-S Woodworks Ltd., Richmond - Cabinets Thinwood Forestry Ltd., Port Mellon - Remanufactured Products (semi-finished) Rahn Forest Products Ltd., Prince George - Specialty Items Legacy Furniture Inc., Abbotsford - Furniture & Fixture Double Eagle Timbercraft Ltd., Vancouver - Factory Build & Prefabricated Housing
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 distribute them from our new display shelf at the Abbotsford office. Please send your brochures to: #1-31088 Peardonville Road
Update on the Members Only Site
Tradeshow Updates
Members Only Section Feature of the Month The Market Reports section currently features reports on the following topics:
For reports that are not listed in the Members Only section, you can use the Online Library search database, located in the Resource Center under Market Intelligence.
Japanese Housing Market Trends Seminar On February 4, 2003, Mr. Fumiaki Kuraishi of the Japan Management Association, held a presentation on the "Opportunities and Challenges in the Japan Housing Market" for BC Wood Members. Some of the topics he covered included characteristics and trends in the Japanese housing market, the renovation market, and regulatory changes. If you missed this seminar, you can view Mr. Kuraishi’s presentation in the Members Only section under Japan, Reports.
Member News
Metropolitan Hardwood Floors BC Wood invites members to send in news of their recent projects or success stories. We would love to hear from you and share your accomplishments with all BC Wood members. Please send your news to Mary Quinn at mquinn@bcwood.com.
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.
Wolrige Mahon is one of British Columbia’s largest independent firms of chartered accountants, which has practiced in Vancouver since 1962. We are a full service firm with expertise in auditing, accounting, taxation, IT services, business advisory and valuation services. We are affiliated internationally with Baker Tilly, the world’s 10th largest accounting association headquartered in London, England.
James Livingstone
Timeline Sales Corp. is a locally owned commercial auctioneering firm with 20 years experience in the marketing and sale of equipment, inventories, and assets in woodworking, metalworking, restaurants, office and retail environments. If you are upsizing or downsizing, need an appraisal for insurance or sale, give us a call or visit our website at www.timelinesales.com.
Murray Jarvis
Announcement BC Wood is happy to announce Mike Jahraus as the Managing Director, Asia Pacific. In his role, Mike will be responsible for the Japan, China, Taiwan, Korea, and Australia markets.
In October, 2002, the Ministry of International Trade and Industry (MITI), the Ministry of Land, Infrastructure and Transport (MLIT), and the Japan External Trade Organization (JETRO) conducted a survey to identify imported housing market trends in Japan. Questionnaires were handed out to 3,910 companies and 483 responses were received. The following are highlights of some of the results. The number of houses imported into Japan and built reached 8,086 between April, 2001 and March, 2002. Of the construction methods used, 88% were 2x4(6) sticks or 2x4(6) panels, and 9% were log houses. Canadian companies took 33% of the market, only second to the US, who took 34%. The ten most commonly used imported building materials were: interior doors, flooring, windows, structural plywood, front doors, interior wood fittings, construction hardware, moulding, stairs, and built-in systems for kitchens and cabinets. The main factors influencing the decision to use these products were price and quality in the case of structural plywood and flooring; performance, design, and price for windows; and design and price for each of the remaining products. Source: Jetro
Wood Technology Show  BC Wood has received free passes to The 31st Annual Wood Technology Clinic & show, held March 19-21, 2003 at the Oregon Convention Center. Admission to the expo is free if you register online at www.woodwideweb.com and use the prize code "LEAE2".
In the February edition of News On-line, we featured Exhibitree and the first three tips for Selecting the Right Shows.
These first three tips were: Here are the next three tips in this series:
Stayed tuned next month for the last four tips!
Woodfest 2003
Woodfest is going to be about more than static booths. There will be a lot going on in the arena, such as demonstrations and mini-competitions in the community. This is a partnership with the City of Quesnel, Quesnel Community and Economic Development Corporation, Community Futures Development Corporation Wood Enterprise Centre, and School District 28 (Quesnel). Retail Booth Cost: $125.00 (includes 10’ x 10’ booth, all workshops, continental breakfast and dinner Friday night). Workshop Package: $45.00 (includes 5 workshops and dinner Friday night). Limited space, so register early. For more information check out our website at www.woodfest.ca, email cveer@quesnelcorp.com or call 1-866-783-7635.
2003 ILBA Conference
Nikkei Architectural & Construction Materials Show Northwest Home Furnishings Show Southern China Trade Show & Lumber Trade Mission Homdex 2003 (Seoul Home Fair) 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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The next two weeks will be very busy at BC Wood as this is the time when
we submit our proposals to the provincial "Forestry Innovation Investment
Program" and the federal "Canadian Wood Export Program". These proposals
pretty much dictate what markets and which services BC Wood will provide
over the next fiscal year, starting April 1, 2003. In this article, I
would like to give you some idea as to how we decide what to propose, the
preliminary content of this year’s proposal, and to request your input
into this process.
was an absolutely
invaluable experience for us," comments Marvin. After getting to know each
other and their perspective companies, Marvin and Steve realized that there were areas
that each of them excelled at. For instance, Whiskey Flats is a logging
company whose strength is accessing logs and milling them into lumber.
Woodland Floors' strengths are finishing, sales, service and marketing of
wood flooring. After much process and planning, they decided to pool
their resources and manufacture and market a product called
"Blue Mountain Pine". This comes from the blue stained pine that has been
infected by the mountain pine beetle. Together, they played off of each
others strengths, resulting in a win-win situation.
custom manufactured
product, they work as their own distributor and sell directly to the
dealers. "Attending the Surfaces show reinforced this strategy for us,"
adds Steve, "the dealers really like this as they can buy directly from us
and cut down the time frame considerably." "Working directly with the
dealers also lets them voice any concerns or suggestions and they know it
will get handled right away," adds Marvin.
This year, we had a whopping 181 respondents to our Annual Membership
Survey. This is the first time we had it available on-line, which I’m sure
accounted for the ease of response. Thank-you to everyone who took the
time to complete the form.
Canada's woodsmart cityTM presents Woodfest 2003 - the Art, Business and
Culture of Wood. There will be a retail wood products tradeshow in the Quesnel Twin Arenas,
workshops at Helen Dixon Centre, and a Student Wood Competition at the
Community Futures Wood Enterprise Centre and Quesnel Twin Arenas.
| March 3, 2003 | Volume 2, Edition 10 |
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| Copyright 2003. BC Wood, All Rights Reserved. | |
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| For past issues of this newsletter, please see the archives. | |