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Message
from the CEO
Brian Hawrysh, CEO
 As
my first opportunity to address you as BC Wood’s new
CEO, the first order of business is to thank the Board and
the members for your support in appointing me to lead BC Wood
into the new fiscal year.
I
am looking forward to the challenges of what will certainly
be interesting times ahead. As many of you know, former BC
Wood CEO Bill Downing and our partners at Forintek worked
diligently for many months to develop the Specialty Wood Products
Network (SWPN). Their hard work has paid off as we are anticipating
an announcement by the Minister of Forests and Range of a
new value-added wood products program.
We
just received confirmation of funding for a very comprehensive
export marketing program this year. Developed with input from
our Industry Advisory Committees, the new program of tradeshows
and missions is, I think, the most ambitious BC Wood has ever
undertaken. I trust that all of you will find something in
this slate of new activities that will be of value to your
businesses.
Shortly,
you will be receiving a package that includes an outline of
the programs developed for your sector and a membership renewal
notice. Based on your suggestions, we are pleased to offer
a two-tiered membership opportunity this year. The first level
of membership, at $2000, includes full access to all BC Wood
programs, the cost-shared off-shore tradeshow and mission
activities, in-market representative support, WSN inquiries
and the Members-Only site at bcwood.com, where you will find
the latest market intelligence, research and studies on a
variety of markets and opportunities.
The
second level of membership, at $500, will include access to
all programs other than the cost-shared trade show and mission.
By providing a choice of these two levels of membership, we
feel that we can better meet the needs of you, our members.
The
BC Wood staff will be on the road in the next couple of months
to meet with you and discuss your needs and how BC Wood can
help you grow your sales opportunities.
Again,
I am looking forward to a great year for BC Wood and our members
and hope that you will feel free to contact me directly at
any time (bhawrysh@bcwood.com),
with your suggestions on how we can help you grow and diversify
your business opportunities.
Product
Development for Outdoor Living Article
Members
involved in manufacturing products for the outdoor living
industry will be interested in a project that BC Wood has
recently completed in partnership with Forintek Canada Corp.
and Formativ Design. Although, it was a product development
project aimed at using pressure treated bluestained pine,
the ideas presented in this article are useful for cedar manufacturers
as well.
This
project is an effort to match a market opportunity (outdoor
living products) with a resource issue (availability and treatability
of bluestained pine). The resulting work identifies a very
real market niche opportunity and demonstrates how a manufacturer
might use a rigorous product development process to approach
this market.
The
information presented in the article is intended to help reduce
some of the up front risks associated with entering this growing
market. Interested manufacturers are invited to sift through
these ideas, take anything that they may find useful and build
on it in a way that makes sense for their particular business
situation.
To
view the entire article on Product Development for the Outdoor
Living Market, click here.
Europe
Market Update
Ludger Spohr
2007/2008
Europe Program
I
am pleased to report that the previously weak European economy
is picking up and there is an increasing demand for wood.
From BC Wood’s office in Europe, we continue to notice
a revival of past inquiries for Western Red Cedar, Hemlock
and Douglas Fir. Importers and manufacturers in Europe remember
the Canadian species for a number of reasons, the ease of
use in millwork manufacturing and the affordability of Hemlock.
It is also increasingly more difficult to get Bangkirai, a
South-East-Asian species, which took the place of WRC over
the past ten years. This lack of supply has increased the
demand for WRC and Douglas Fir for outdoor applications. Another
factor, which favours Canadian wood, is the export tax on
Russian logs that will continue to increase until 2009 by
80% or at least 50 EUR ($75 CND) per m³. This will limit
supply from Eastern Europe, which has been flooding the European
market since the opening of the Iron curtain in the early
1990’s.
Although
Europe may never experience the same economic growth as China,
there is substantial growth amongst European countries whose
business culture is similar to that found in Canada. There
is a clear understanding of product and producer with many
importers coming back for repeat business. As a result, BC
Wood has a busy fiscal year planned with several missions
and trade shows scheduled in Europe.
In
early July, BC Wood has planned an exploratory trade mission
to Eastern Europe with a focus on housing. Many of our members
continue to receive inquiries from Eastern Europe and some
Canadian companies are already involved with large developments
in Bulgaria. Our goal will be to find out what the local requirements
are and what opportunities exist for BC Wood members. As a
matter of interest, Bulgaria and Romania joined the European
Union (EU) in January of this year to total 27 countries in
the EU.
In
general, eastern European countries newer to the EU (typically
less wealthy) are net receivers within the EU, as they receive
funds from “Brussels” for infrastructure improvement.
In addition to public funds, there are major private investments
in regions with existing holiday resorts that need to be repaired
or even rebuilt. For example, the Tarta Mountains in the Czeck
Republic have always been a great destination for Alpine skiing
and they are now competing with resorts in Austria, France,
and Switzerland. These are the type of developments that BC
Wood will be targeting.
BC
Wood trade activities focused on the housing and building
sectors will start with the Salon Maison du Bois in Angers,
France in October. This is the key housing show in France
anyone building with wood. In October, we will attend also
Interbuild in Birmingham followed by the Plan Expo in Dublin
in November.
In
the Re-man sector, Germany is seeing a revival in their economy
and in the demand for Canadian wood. BC Wood will be exhibiting
at the Brachentag Holz trade show in October, which is the
key tradeshow for the German wood and timber industry. Participants
will have an excellent opportunity to connect with current
and prospective contacts, while networking with major German,
Dutch, and Belgium players in the wood importing industry.
For
more information on BC Wood’s European Program for 2007/2008,
please contact Ludger Spohr at lspohr@bcwood.com
Japan
Market Update
Jim
Ivanoff
2007/2008
Japan Program
For
fiscal 2007/08 BC Wood’s Japan Office has another comprehensive
program of activities ready to help members take advantage
of the great opportunities in the Japanese market. As in the
past, our main focus for helping members meet the right contacts
in Japan centers on maximizing the effectiveness of the key
trade shows in Japan.
While
anyone can exhibit at a show and hope that the right people
walk into their booth, BC Wood offers a strategic approach
to ensure that participating members have the highest probability
of having business meetings with companies interested in their
products. To accomplish this, the BC Wood Japan Office has
built a database containing over 6000 industry professionals.
We not only utilize this contact database in our broader pre-show
marketing activities, but also to put together matchmaking
lists customized for each participating member. By contacting
and visiting these companies directly, we were able to set-up
appointments for members to meet at the show. If we don’t
currently have the right contacts for a member’s products,
we will research who the most appropriate targets are for
them and approach those contacts on our member’s behalf.
The
greatest advantage of these shows for Canadian participants
is that they provide a “temporary showroom” to conduct
business. Japanese buyers need to touch and feel products
before making buying decisions and this “temporary showroom”
provides the space needed for members to demonstrate their
products. In addition, trying to visit many different customers
on a trip to Japan can prove to be highly inefficient with
a lot of travel consuming most of your time. The trade shows
offer established companies in the Japanese market the added
benefit of bringing their customers to them so that each day’s
productivity can be maximized. With BC Wood conducting pre-show
marketing activities on your behalf, you will not only be
meeting with existing customers - but new ones as well.
The
following is the list of shows that BC Wood will be organizing
on behalf of members.
2007/08
Japan Program Activities
Osaka
Building Materials Show (June 6th-9th)The BC Wood Japan
Office will take part in this show on behalf of all members.
DIY
Show (August 23rd-25th)The DIY and Reform markets have
been growing in Japan and this trend is expected to continue
as Japanese home owners are starting to keep their homes long
and remodelling, as opposed to building completely new homes.
This show offers the best access to this market as buyers
from all of the major DIY chains participate.
Nagoya
Architectural Show (October 11th-13th)The economy of the
area surrounding Nagoya is continuing to boom thanks to the
dynamic growth of the Toyota Group of companies which are
headquartered there and this is the main show targeting the
building industry in the region.
100%
Design Tokyo (October 31st-November 4th)This year BC Wood
will help the province’s premier furniture makers further
penetrate Japan’s high-end furniture market by taking
part in the number one designer show in Japan.
Japan
Home Show (November 14th-16th)The Japan Home Show is the
largest tradeshow dedicated to the housing and building materials
industry in Japan. Every year, the show attracts over 1200
exhibitors and approximately 100,000 attendees over 3 days.
Nikkei
Architecture & Construction Materials Show (March
4th-7th, 2008)The Nikkei show, held annually, targets the
architectural housing and building materials market. Over
270,000 people visit the show including architects, builders,
contractors, importers, and specifiers of products for commercial
and residential buildings.
Kita-kyushu
Total Living Show (March 13th-15th, 2008) The BC Wood
Japan Office will take part in this show on behalf of all
members.
Reman
Industry Mission to Japan
BC Wood will also be organizing a mission this fiscal
year on behalf of our reman industry. The goal of this mission
will be to take five or so members to Japan in order to take
advantage of the current renewed interest in Canadian wood
products caused by the high Euro and the recent announcement
of a huge export tax on Russian logs. Over a one-week stay,
the mission will include visits directly to the main wood
manufacturing areas in Japan as well as several BC Wood organized
networking events with pre-qualified wood buyers.
Nikkei Architecture and Construction Materials Show 2007 Report
Over
the past few years the Nikkei Show has become the premier
building products show in Japan. With Japan’s robust
market along with a great location for the Canada Wood Pavilion,
this year’s show proved to be a great success for BC
Wood’s ten participating members. While the Architecture
and Construction Materials Show is held concurrently with
other Nikkei organized shows at Tokyo’s Bigsight and
thus the reported number of visitors is somewhat overstated,
it is still unquestionably the most dynamic show for building
products in Japan with great numbers of architects and other
industry professionals filling up the aisle ways. However,
for the first time the Nikkei organizers also announced separate
figures for the JapanShop/ Architecture and Construction Materials
Show. Overall this year’s Nikkei Show attracted 1.7%
more visitors, for a total of 264,717 people. Of these, 140,357
visited the Architecture and Construction Materials Show.
In
order to grab the attention of the great number of people
passing-by our pavilion, we tried something new this year
by having a live demonstration within our area. For this,
we asked BC’s own Judson Beaumont of Straightline Designs
to draw his designs on a special wall we had made inside the
pavilion. Based on the success Jud had in drawing designers
into his booth at last year’s International Furniture
Fair Tokyo by doing something similar, we knew that his performance
would capture the imagination of the architects coming to
the Nikkei Show. This was also a very visual and explicit
way to highlight Canada’s design talent in a market that
has become so enamoured with European design.
Based
on the success of a seminar we conducted last year in Sapporo
right before the Nikkei Show, we decided to have similar events
in both Nagoya and Osaka this year. As we had many members
coming over for the Nikkei Show, it made sense offering to
put on such promotional seminars for them since by just coming
a few days earlier they could target the two other major markets
in Japan. We worked closely with the local Consulates in each
city and shared the costs of putting on the seminars with
them.
BC
Wood handled the recruiting for the seminars and we targeted
clients from our database that would have an interest in the
products being represented by the participating members. We
also invited our Canada Wood partner, Canada Tsuga to join
the program. In the end, all of the members seemed to be very
happy with the outcome as we had over 50 clients attend each
seminar and the members were able to have serious business
discussions with many of them. We plan to offer a similar
program again next year in conjunction with the Nikkei Show
targeting one or two other cities.
For
more information on this year’s Japan programs, please
contact Jim Ivanoff at ivanoff@canadawood.jp
WSN
Inquiries
David
Pao
BC
Wood’s Wood Supply Network (WSN) is an online inquiry
system that matches buyers with member companies. Buyers input
their requirements and the inquiry is qualified and distributed
to suitable manufacturers. Members can always access current
inquiry information by visiting www.bcwood.com. Here is a
summary of some of the recent inquiries processed:
Inquiry #7776
Market – Korea
Inquiry Type – Remanufactured Products
Product Description/Details: WRC - 1x4, 12' and 14' Quantity
– 30 (40ft) containers/yr
Inquiry
#7796
Market – China
Inquiry Type – Remanufactured Products
Product Description/Details:WRC - 1x4, 2x6, clear, shop, and
stk for landscaping use
Quantity - Container 40ft.
Inquiry
#7792
Market – China
Inquiry Type – Remanufactured Products
Product Description/Details:Hemlock - 2x4, 2x6, Shop #2 for
furniture manufacturing
Quantity - Container 40ft.
Inquiry
#7808
Market – China
Inquiry Type – Remanufactured Products
Product Description/Details:SPF - 2x4, 2x6, S4S, Econ
Quantity – Container 40ft
For
more information on the WSN, please visit www.bcwood.com
or contact David Pao at dpao@bcwood.com
or 604-882-7100.
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Global
Buyers Mission 2007
Randi Walker
The pace
is picking up for our upcoming Global Buyers Mission
(GBM) in Whistler from September 13th - 15th, 2007.
Thanks to all BC Wood Members who have already registered.
We encourage everyone to contact us as soon as possible in
order to secure exhibit space for the largest value-added
wood industry trade show in Canada!
Architects
& Designers will add a dynamic element to this year’s
GBM. BC Wood has developed an exciting program to attract
architects & designers from the Pacific Northwest region.
These key influencers and decision makers, in addition to
our pre-qualified International Buyers, will have multiple
opportunities to connect and engage with all Exhibitors. This
will heighten the business opportunities for all participants
at GBM 2007.
The
GBM 2007 promises to once again deliver an impressive
list of buyers from around the world to view the latest wood
products, trends and technology our Exhibitors will have to
offer. We already have some significant Buyers registered
from the US, Europe & Japan. Our recruiting is in full
swing for incoming groups from China, Korea, Japan, Taiwan
and Mexico again this year. If you are interested in getting
on the extended mission tour list for any of these groups,
please contact us ASAP.
Should
you have any existing or prospective buyers you think would
be a good fit for GBM 2007, please contact us. As you
know, we have an excellent incentive package available for
qualified buyers, which include transportation from Vancouver/Whistler
return, meals during the event and accommodation in one of
the top Whistler hotels.
Advertising
and/or Sponsorship opportunities will be introduced in June,
which will give you a terrific opportunity to highlight your products
and services. Our sponsorship packages will allow
you to maximize your exposure while co-hosting food &
beverage stations, advertising in our impressive Mission
Program Guide and/or making donations for our new
Silent Auction program.
For more information or to register for exhibit space at GBM
2007, please contact Randi Walker by phone 604-882-7100
or by e-mail at rwalker@bcwood.com.
You may also download the Registration Forms from our GBM
site here
See
you in Whistler!
US
Market Update
Daryl Holmes
Sales
Opportunities spiking for Log and Timber on the East Coast
of the United States
BC
Wood has recently accompanied six Log and Timber Frame manufacturers
to attend the Valley Forge (Philadelphia) Log and Timber Show.
Why the east coast? For the past 12 months, BC Wood has been
working hard to identify emerging market opportunity for our
members. Based upon recent research along the east coast corridor
[this report will be available mid May], we are ready to actively
connect our membership to this market. This show in particular,
while only a small regional show, was a success for those
members who invested the time to attend.
Not only did the show provide members with the opportunity
to showcase our competitive brand of Log and Timber structures,
it also enabled companies to connect with industry professionals
and representatives who are interested in partnering with
BC producers. The ability to partner with the local development
community is essential to delivery of any product and Log
and Timber structures are no exception. Without local partnership
with architects, specifiers, agents, and builders the prospects
of delivery of product becomes daunting.
Servicing
a market the size of the US east coast is a difficult task.
While there is opportunity to sell directly to the landowner
or consumer, the key to repeat business and market penetration
is building partnerships with local professionals. “Based
upon this show we were able to partner with a local company
who will be acting on our behalf in servicing this viable
market”, [Geoff Johnstone, Hamill Creek Timberwrights].
BC
Wood will continue to work in this niche market area and will
be attending another show in the fall, (the Chantilly Log
& Timber Show) being held in Virginia. This show is the
signature show on the east coast and will be a great opportunity
for members to continue to showcase their BC products.
Alaska
in March!
A
chilly visit to a market that continues to warm to BC manufacturers.
For the past few years B.C. Wood has attended trade events
in Alaska with great success in building strong business relationships
with local industry professionals and consumers. This year,
we once again attended the Anchorage Home Builders Show where
six members took advantage of the growing building industry
in and around the Anchorage marketplace.
For
those returning to the market, this show provided members
with an important vehicle from which they will continue to
service current relationships and to garner new connections
within Alaska. First time members braving the cold, were able
to gain key exposure for their product and to gain invaluable
market experience while gathering a favourable amount of qualified
sales leads.
In
particular, Log and Timber Frame Structures, along with Pre-Built
housing were afforded a large amount of interest by attendees.
This small niche in the US is often overlooked by competition
to the south, which has enabled Canadian, in particular, BC
manufacturers to secure market share with our northern neighbours.
Companies in attendance included Insulspan, Viceroy Homes,
Pacific Homes, Canada’s Log People, Pacific Log Homes,
and Leatherwood Log Homes.
As
with all markets outside of BC, two keys to success are the
ability for companies to show dedication to service (pre and
post sales) and having strong representation within the market.
Due to the geographic proximity of Alaska, BC manufacturers
are fortunate to be able to sell directly to this market without
securing local representation, however, those who do enlist
the services of local professionals tend to reap the benefits
of having an agent on the ground.
"This
show is an important part of our show schedule and is of utmost
importance to the success of our drive for sales in the Alaskan
market." - Jeff Herlocker, Viceroy Homes
BC
Wood will once again be headed north in August to return to
the market and will once again be back in Anchorage in March
2008. For more information or to sign up for shows, please
contact Daryl Holmes at dholmes@bcwood.com
or at 604-882-7100.
China
Market Update
David Pao
WoodBuild
/ WoodMac / Furnitek 2007
BC
Wood coordinated the exhibition of four member companies at
the 2007 WoodBuild tradeshow in the Pudong area of Shanghai
from March 20th to March 23rd. This tradeshow was held in
conjunction with the WoodMac and Furnitek tradeshows simultaneously.
WoodBuild is the key tradeshow for timber and wood products
being used in the furniture manufacturing and building construction
industry in China. The other component of the show was WoodMac,
which focuses on machinery used in wood products manufacturing
and Furnitek, which focuses on wood furniture.
Member
companies along with partnering associations exhibited together
under a new, high profile Canada Wood pavilion at the show.
Participants included Taiga Building Products, Powerwood,
Tolko, and Cowichan Lumber. 103 companies exhibited in the
Furnitek/WoodBuild section of the show and 296 exhibited in
the Woodbuild area. A total of 16,946 visitors attended this
event with 13% coming from outside of China.
In
addition to exhibiting at the show, the group also brought
members to meet with several key importers in the Chinese
market who are active in bringing wood products from Canada.
Customers traveled from as far as Guangzhou and Dalian to
attend the show and meet with potential suppliers. Products
that continue to be of interest among Chinese importers included
Western Red Cedar, pressure treated lumber, and industrial
hardwood lumber used in furniture and millwork manufacturing.
China
continues to be a vast and growing market with many new and
potential opportunities, It continues, however, to be a very
challenging market for wood exporters, as many importers remain
unfamiliar with the species, sizes, and grades of lumber available
from North America. While the Chinese market is known to be
highly competitive and price sensitive, there is an increasing
number of importers that are looking to source higher grades
of lumber and better quality products. The demand for wood
to be used in construction is relatively small and alternative
materials such as steel and concrete continue to dominate
the majority of new construction and developments.
All
BC Wood members who participated found the show successful
and continued to stay in the market to further develop business
relationships. Follow-up with the four members who participated
confirmed that they developed new business partnerships and
incremental sales in China as a direct result of this activity.
For
more information on the China Program, please contact Jeff
Li at li@canadawood.cn
Korea
Market Update
2007
Housing Brand Fair
Along
with member companies, BC Wood recently attended the Housing
Brand Fair in Seoul, South Korea from February 25th to March
1st, 2007. A total of nine member companies exhibited at this
show and joined a number of business networking events coordinated
by FII, Canada Wood Group and the Canadian Embassy in Seoul.
BC Wood shared exhibition space with other Canada Wood Group
members to highlight the Canada Wood brand and promote the
potential for Canadian suppliers of wood frame construction,
prefabricated housing, finished building products, pressure-treated
wood and Western Red Cedar landscaping products.
On
the second day of the show, BC Wood hosted a business development
breakfast and seminar. Korean architects, builders, and wholesalers
were invited to meet with participating BC companies. Over
thirty Korean firms attended the seminar to hear from the
representatives of the BC companies as they outlined their
company’s product line and objectives in the Korean market.
Having established an initial point of contact, the Korean
companies proceeded to the show floor to visit with BC Wood
members and continue their business discussion in greater
detail.
Reception
at the show was very successful as members were able to develop
several new contacts and leads. In addition to the trade show
and networking events, BC Wood coordinated a two-day trade
mission for members to visit wholesale distributors of building
materials and architects and developers involved in major
projects of interest in Korea. The purpose of these visits
was to establish key contacts in the Korean market and to
identify the product and service requirements of the market
place.
Upcoming
trade shows in Korea:
MBC
Housing Show
Aug.17 – 21, 2007
www.dong-afairs.co.kr
KIA
Convention & Exhibition
Nov.10 – 25, 2007
www.kia.org.kr
For
more information on this year's Korea program, please contact
JC Lee at lee@canadawood.or.kr
Upcoming
Shows and Events
May,
2007
Kitchen
and Bath Industry Show
Location: Las Vegas
Date: May 7th, 2007
Hospitality
Design Expo
Location: Las Vegas
Date: May 10th, 2007
International
Contemporary Furniture FairLocation: New York
Date: May 19th, 2007
Pacific
Coast Builders Conference
Location: San Francisco Date: May 30th, 2007
June,
2007
Techno
Mueble
Location: Guadalajara, Mexico
Date: June 28th, 2007
July,
2007
Association
of Woodworking and Finishings Suppliers Fair
Location: Las Vegas
Date: July 18th, 2007
New
BC Wood Members
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jfogal@axisinsurance.ca
www.axisinsurance.ca
Got
Something to Say?
If
you have any questions, comments, or would like to contribute
to BC Wood News On-line, please contact David
Pao at:
BC
Wood
#200 - 9292, 200th Street
Langley, BC
Phone: (604) 882-7100
Fax: (604) 882-7300
Toll Free: 1-877-422-9663
or email dpao@bcwood.com
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