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| March 1, 2004 | Volume 3, Edition 21 |
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News From Bill Downing
Remember, the best way to maximize the value of your BC Wood membership is to participate in an in-market event such as a tradeshow or a mission. We will know the exact scope of the program for this fiscal year by mid-March. In the interim, you can visit bcwood.com to see what we have proposed. Just click here to download the proposed schedule. On another topic, interest from BC Wood members continues to increase in the outsourcing of production to countries where labour costs are low, such as China. The prospect of reducing costs is attractive to any business. However, the risks are high and there are many pitfalls to watch for. In response, I am currently writing an article on the pros and cons of outsourcing production to China. I will draw on the firsthand experience from BC Wood members and other firms. The article will be printed in two parts in the April and May newsletters. One final note, the incoming “Buyer’s Mission” at Sunpeaks on March 26th is a go! We are working hard to bring you 20 qualified buyers of building materials from the Pacific Northwest. We have also been putting a great deal of thought into the logistics to ensure that members will get the most out of this event. The Buyer’s Mission has the financial support of BC Wood, Venture Kamloops, Forestry Innovation Investment, Canada Mortgage and Housing Corp. and the Canadian Consulate in Seattle. Get your application in fast because this event will sell out. For more information on this event, see the article by Daryl Holmes, also in this newsletter. 
Custom House Global Foreign Exchange
Michael Levy, Senior VP of Custom House Global Foreign Exchange, a Any exporter or manufacturer that sells products outside of Canada in a foreign currency, and then exchanges that currency back into Canadian dollars, may be exposed to foreign exchange risk. Risk mitigation is the most cost effective way to protect your profits and one way you can do this is through forward contracts. Forward contracts let you lock in at a specific exchange rate today, for a currency to be purchased or sold in the future, protecting you from foreign currency fluctuations. This is also known as hedging. Custom House can help you with this, while at the same time offering better than bank rates and service – guaranteed! Plus, if you work with their Abbotsford office and mention that you are a BC Wood member, you will receive an even better rate. Custom House has been providing customers with superior foreign exchange solutions since 1992. With over 45,000 clients, Custom House is the largest independent foreign exchange broker in North America. They are able to provide you with competitive rates on your foreign exchange transactions by leveraging their trading volumes on the world markets. Here are some comments from BC Wood members that have used Custom House:
"I have used Custom House several times and have been very pleased. I
like the idea of getting the best exchange rates available and supporting
our association at the same time."
"Custom House made it simple and easy to get our payment. The funds
were cleared quickly and the cash was in our bank account immediately,
saving us valuable time."
"It was easy to lock into the current quoted forward rate for a billing
that we were completing in a month's time. The process was straight
forward and it didn’t cost us a thing for the 30 day forward contract."
Custom House also offers the following services:
Benefits of using Custom House include:
For more information on Custom House, you can check out their website at www.customhouse.com, or contact Debbie Enns at the Abbotsford branch at 604.556.3999. One last thing – according to Michael Levy, the Canadian dollar in a Bull market is a good thing, as all surprises are to the upside.
Hopes Rise Along with the Japanese GDP
After years of enduring negative economic report after negative report,
the Japanese economy has recently started basking in the glow of a string
of positive economic reports. Much of this positive news had been
dismissed in the past due to the cynicism that took hold as a result
of the many false economic starts. However, as the list of positive
indicators is growing longer every month, this negativity is finally
starting to be reversed.
The latest "good news" announcement came in mid-February when Japan’s Cabinet Office reported that the final quarter of 2003 showed economic expansion of 1.7%, which is equivalent to annual growth of 7%. This 7% growth is the best Japan has recorded in over 13 years. This performance enabled the economy to grow by 2.7% for the year. In contrast, the Japanese economy contracted by 0.4% in 2002. Offering further optimism was the fact that the 4th quarter also showed an increase of 0.8% in consumer spending, the largest in over a year. New offerings of flat panel TVs, DVD recorders, and digital cameras were able to entice consumers to loosen their purse strings. It is felt that the continued procession of positive economic reports will further boost consumer confidence. As well, despite the yen’s relentless appreciation against the US dollar, Japanese exporters fared surprisingly well in 2003. Toyota Motor Corporation saw its annual profits rise by 40% to almost US$10 billion, while a Nikkei Newspaper survey showed that 155 major Japanese firms averaged an increase of 34% rise in profits for the year. Much of the 4.2% rise in exports for 2003 has been attributed to China’s insatiable demand for Japanese products. I have also personally noticed a shift in attitude among players in the building products industry. While I had come to expect a certain level of pessimism at industry gatherings, I was pleased to find exhibitors at the recent Japan Kenzai Fair upbeat about prospects for 2004. The recent string of positive economic news was cited as the cause for this optimism. After years of decline, the number of housing starts in Japan actually increased by 1% and many people seem to feel that the corner has finally been turned. With the announcement that the Ministry of Land and Infrastructure will finally give approval to wooden structures over 3 stories, foreign suppliers may have even more to be pleased about. Spearheaded by the Japan 2x4 Home Builders’ Association, the certification will allow houses over 100m2, buildings 4 stories or taller, and buildings in excess of 3000m2 to be built even in special fire-prevention areas. To help increase interest in such large wooden structures, BC Wood, along with its Canada Wood partners and the Canadian Embassy, is currently organizing a seminar on using wooden structures for commercial applications. Hopefully we will be able to take a lead in this emerging building trend and increase the opportunities for our members. Considering the improved economic situation in Japan and the approval of tall wooden buildings, Canadian suppliers to the Japanese market should also be sharing in all of the renewed optimism.
Member Spotlight: E.A. Fisher Architectural Woodwork Ltd.
Seattle’s Best Coffee, Red Robin Restaurants, Eaton’s, Sears, QFC,
Virgin Records, The Hard Rock Café, and Morton's, are
just a few of the impressive names on E.A. Fisher’s client list.
BC Wood member Ed Fisher, and his company E.A. Fisher Architectural Woodwork Ltd., was featured on the front page of the "Westcoast Homes" section of the Vancouver Sun this January, complete with pictures of his home and recent projects. Ed previously worked for the Keg restaurants as the Director of Development, designing and constructing new restaurant locations in North America. Working for the Keg, Ed was in charge of purchasing the millwork and building materials for the restaurant, which sparked his interest to get back into the woodworking industry. With his many years of business experience, he was well equipped to open up his own company. Ed opened the doors of E.A. Fisher Architectural Woodwork Ltd. in 1991, and now employs 30 staff members. Their two offices are both located in Vancouver, one in British Columbia and one in Washington. Their projects include bars, restaurants, hotels, retail stores, coffee houses, condominium projects, and private residences for which they provide products such as architectural millwork, cabinets, furniture and fixtures, panelling, and case goods. Ed Fisher donates much of his success to word of mouth. As a result of his work on a previous project, a client passed his name along to another architect because he was very satisfied with the work. "That is how we got the contract with Seattle’s Best Coffee. With industry contacts, you must be patient and stay in touch with them at all times so that they remember who you are. An opportunity may present itself in the future, and not always right away," comments Ed. Today, approximately 80% of their business is done in the US and the majority of it has been attained from word of mouth recommendations. E.A. Fisher is a member of the Architectural Woodwork Manufacturer’s Association (AWMA), and Ed Fisher has just recently been announced the association’s Vice President. Working with this association has enabled him to form close relationships with other manufacturers in the industry. He has aligned with other millwork shops in BC on large projects in order to take advantage of each company's strengths. "This relationship works to the advantage of both companies. We both do what we are best at doing, and when times are lean, we don’t have to downsize. The key to a successful partnership is finding a shop that shares the same commitment to excellence as we do," adds Ed. When asked what their competitive advantage was over other millwork companies, Ed was quick to say, "It is the service that we provide our customers that sets us apart from our competition. We often take on projects that are not well developed and in turn, provide them with a product that they are very happy with." Most of the time, the architect or designer will provide them with the basic concept drawing and Ed and his team will complete the detail work for them. "We bring their drawings and concepts to life," adds Ed. In order to shorten the time between concept and detail, and to speed up the completion time, E.A. Fisher creates and sends their detail files electronically. "Many of our customers want the job done quickly and time is a critical factor. Composing the drawings electronically helps us meet our deadlines and keep our customers happy." In addition to making deadlines, E.A. Fisher does not compromise quality for time. "The fact that we can provide a high-quality product in the allocated time frame really sets us apart from our competition," adds Ed. This exceptional customer service has proven to be an excellent strategy for Ed and his company, as they have won many very prestigious awards. As an active member of the AWMA, E.A. Fisher has been recognized on several occasions for their excellent craftsmanship. Some of them include:
Highest Achievement for Excellence of Quality and Service
Gold for Excellence of Service – US Project
Future plans for the company may include custom cabinetry for the
Japanese market. Ed offers some advice for other BC Wood members who
are looking to sell their products in the United States or maintain strong
relationships with American customers:
For more information on E.A. Fisher Architectural Woodwork Ltd., you can go to their website at www.eafisher.net.
Updates to the Members Only Section of the BC Wood Website
Starting this month, you will notice changes and upgrades to the BC Wood
website that will make it easier to get around, and offer even more
information and solutions to your marketing and market development plans.
Updated Members Exchange Zone
Machine Capacity
Equipment for Sale/Buy
Product for Sale/Buy
Job Search
Announcements
This new section will be part of the Members Exchange Zone. We’ll be
looking for submissions to start off these new sections, so please send
your offerings to mquinn@bcwood.com.
Marketing Tools This new section has already been started with the steps involved in creating your own marketing plan. Stay tuned next month, when the site will be updated with sector-specific marketing plan steps.
Members Only Section Site Map
Member Comments If you have any comments that you would like to make, regarding the website, the Members Only website, the WWIS, or anything else, we would love to hear from you. Just email mquinn@bcwood.com. We appreciate your input!
New Reports in Members Only Section
Market Opportunities in Asia for BC Forest Products
A Benchmarking Study for Structural Wood Products Demand in the People's Republic of China
Hardwood Gap Analysis
This study identifies potential solutions that will correct these
gaps by:
Associate Member Spotlight: Cantex Stitching Company Ltd.
Which of your products or services would be best suited for BC Wood
Members?
We also have a wide range of products including:
How can BC Wood members and people in the secondary wood products industry
benefit from your service?
What is your competitive advantage in the industry?
Who should members contact if they are interested in your service?
Why did you become an Associate Member of BC Wood?
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Pacific North West Buyers’ Mission: Update
BC Wood’s Pacific Northwest Buyers’ Mission, brought to you in partnership with Venture Kamloops, is set for Friday, March 26th, 2004. The mission will be held at the Delta Sun Peaks Resort. During the all day event, buyers from USA’s pacific northwest and BC Wood members will network with the joint purpose of promoting BC made wood products and increasing knowledge and awareness of wood products manufactured in BC. This is an exclusive opportunity to meet one on one with key decision makers from prominent companies from the pacific northwest.
Representatives from the following companies will be attending: In total 20 companies will be represented. Availability for the mission is limited and filling up fast. Any members interested in attending the mission should contact BC Wood today. The cost of the full day event, including meals, is $250. For more information, mission agenda, or to discuss if this mission is a fit for your company, please call BC Wood at 1-877-422-9663.
BC Wood is happy to announce that Dave Gardner, from Unique Timber Corp., is the newest member of our Board of Directors. Dave Gardner is the Sales and Project Manager for Unique Timber Corp. - a builder of handcrafted log and timber frame homes with several niche markets around the world. He is also a member of the Log Building Industry Association of B.C. and the sitting president of the International Log Builders Association. He has served in many different roles with Unique and its predecessor, Highland Log Builders, from production to management and is very experienced in the challenges of exporting log and timber projects around the world. His association with Unique has resulted in a significant increase to their sales and he wants to be an advocate on behalf of the provinces large and growing log and timberframe industry. BC is recognized around the world for this and he's solidly committed to the direction BC Wood is taking of waving the BC flag to create opportunities for member companies. He feels that niche markets will always have a ready audience around the world and we need to extract the very best value out of our significant and wonderful fibre resources. He also believes that industry has to step up and participate in BC Wood to create a more credible lobby voice or we'll be lost in the wilderness. He is married with two "almost gone from home children" and he and his wife each ride their own motorcycle - a newly discovered passion.
We are pleased to welcome the following new BC Wood Members who have joined us since February 1, 2003: Custom Wood Products Ltd., Nanaimo - Remanufactured Products (semi-finished) Okanagan Specialty Sawyers Inc., Vernon - Remanufactured Products (semi-finished) TouchWood Creations Ltd., Kaslo - Furniture & Fixtures
New BC Wood Associate Member We are pleased to welcome the following Associate Member who has 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 604.882.7100 or toll-free at 1.877.422.9663.
 Colliers International is the Lower Mainland's premier commercial real estate company. Through Colliers' worldwide network, featuring offices in 51 countries, first hand knowledge of local and international markets is only a phone call away. The success of the Colliers team is based on an entrepreneurial culture, an emphasis on innovation & change and a "client for life" philosophy. We focus on matching our expert knowledge of the commercial real estate market with a solid understanding of the unique needs of BC WOOD member companies, their partners and the industry. The result: custom solutions from our leading team of industrial brokers to match the ever-changing requirements of your business.
Malcolm Earle
Challenges and Opportunities for Marketing Certified Value-added Wood Products - a one-day workshop at UBC On March 12th, 2004 the UBC Department of Wood Science and the Centre for Advanced Wood Processing will host a special industry workshop to report on and discuss consumer awareness and acceptance of certified value added wood products, and the potential for further development of these types of products. This event will bring together manufacturers and distributors of primary and value-added wood products, as well as researchers and related industry and public-sector stakeholders, to examine the market potential that exists for certified value added products, how opportunities should be exploited, and the best strategies for marketing and distributing these products. In addition to providing the latest information on business opportunities in this emerging area, the workshop will be conducted in an interactive format to allow questions and ideas to be freely exchanged among presenters and participants. For more information, please see the CAWP website, or contact Iain Macdonald at 604.822.1472 for more information.
Working the Show from Both Sides of the Aisle
International tradeshow speaker, Barry Siskind will be holding a
workshop to help you improve your show efficiency, whether you are
working in a booth or walking the aisles. The workshop is
being held on March 11, 2004 at the Coast Plaza Hotel in Vancouver.
For more information, download the brochure.
Forintek Summary Reports Offer Insight Into Manufacturing Practices From Around The World
In addition to the technical missions, Forintek also prepares summaries of emerging technologies on behalf of the wood products industry. These technology intelligence activities are designed to provide a summary of manufacturing processes that when applied, lead to higher quality products, greater production efficiencies and lower manufacturing costs. After each trip or investigation, a report is produced that summarizes and highlights the key observations and concepts. A copy of these summaries is available to any wood products business interested in learning more about the areas and businesses visited, as well as the technologies investigated. A listing of the reports available is shown below. To get your copy, please call Phyllis at 604-222-5743 or email her at phyllis@van.forintek.ca.
Ligna/Interzum Trade Show: Manufacturing Technology Report
Technology Mission to U.S. Southeast
Technology Mission to Sweden : Secondary Wood Product Manufacturers
Technology Mission to New England States
Technology Mission to Oregon Secondary Manufacturers
Technology Mission to Mid-West USA Secondary Manufacturers
Technology Mission to North Carolina and Virginia Secondary Wood Product Manufacturers
Technology Mission to Quebec Secondary Wood Product Manufacturers
Technology Mission to Oregon Secondary Wood Product Manufacturers
Nikkei Architecture & Construction Materials Show
Western Red Cedar Mission to Japan
Homdex 2004
Anchorage Home Builders Association
Pacific Northwest Buyers' Mission
China Trade Mission For more information on these tradeshows, visit the BC Wood website.
Consultants & Marketing Services
If you have any questions, comments, or would like to contribute to BC Wood News On-line, please contact BC Wood |
"500 bucks?! There must be some mistake!" I’ve heard that more than a
few times lately. Unfortunately, there’s no mistake, BC Wood’s annual
membership dues are now $500. I know it’s a significant increase but it
the change was made following a considerable amount of consultation with
the membership. Please note that although the membership is a flat rate,
the cost to participate in trade events will vary by company size (i.e.,
smaller companies pay less).
Did you know that the Canadian dollar is currently in a Bull market, while
the US dollar is in a Bear market? Well, you would have known this (plus
the meaning of this) if you had attended the recent free seminar by Custom
House Foreign Exchange.
specialist in
mitigating foreign exchange risk exposure, and a financial analyst for
CKNW/98 Radio, presented a seminar on the current state of the economy.
He let us know that the US dollar index is an index of the following six
international currencies: Euro, Japanese Yen, UK Pound, Canadian Dollar,
Swedish Krona, and the Swiss Franc. According to Michael, the economy goes in
cycles, and the Canadian dollar has grown 23% in the last year, presenting a big opportunity for hedging. Basically, it is all about
currency flows and the devaluation of the US dollar.
Canadian Exporters Guide to US Residential Building Codes
Preliminary Competitor Analysis for Wood Products in China
Forintek Canada Corp., with the support of the federal and provincial
governments and its industry partners, organizes and conducts tours to
manufacturing plants to see first hand what some of the leading-edge
manufacturers are doing to stay on top of their business.
These technical missions bring industry participants directly onto the
shop floor where they can observe and ask manufacturing and technical
questions of business owners and plant managers.
| March 1, 2004 | Volume 3, Edition 21 |
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| Copyright 2004. BC Wood, All Rights Reserved. | |
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