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Message
from the CEO
Bill Downing
It
all started a couple of years ago with a BC Wood study on
hybrid timber frames (HTF). We had noticed an increased interest
in heavy timber accenting on traditional wood frame buildings
in the residential market. The idea is simple: combine the
timber frame look and feel with the cost effectiveness of
2x4 construction. The report concluded that the prospects
of HTF were very good; the lower cost would put heavy timber
style homes within the reach of the average home purchaser.
As
we circulated the report and talked to builders of timber
frame homes, I began to consider building an HTF myself. I
talked it over with my wife and we took the (dangerous) next
step and started looking at plans. Finally, when an ideal
lot came available last summer in the Abbotsford subdivision
where we live, we decided to go for it. In addition to the
timber frame look, I had a couple of other objectives for
this house: I wanted to highlight wood products made from
BC species by BC Wood members, and I wanted to prove to myself
and others that you can build a much nicer home, that highlights
the use of wood, for only a small premium over the ubiquitous
"plaster-palace". Was I successful? Yes and no.
Sourcing
product was the easy part. The flooring (larch), moulding
(fir), cabinets (alder), doors (fir and hemlock) timbers (cedar)
siding (cedar) and stairs (pacific maple) all came from BC
Wood members and all of it is spectacular. Where I was less
successful was in keeping to the budget. The problem was two-fold.
First, I discovered that it’s not the cost of the product;
it’s the cost of the labour that really hurts. Second,
when you decide to upgrade finishing material, lots of other
things need to be upgraded as well (e.g., plumbing fixtures,
lighting fixtures, countertops etc.). The end result is that
our original budget looks pretty funny now.
So,
bac to the original premise, can you build an HTF for a little
more than a traditional 2x4 home? Yes, but I doubt that anyone
would. The problem is that once you have decided to go with
the heavy timber look, you set off a chain reaction of upgrading
throughout the house, much of it labour-intensive. In the
end, I suspect that the difference in using heavy timber accents
versus a true, structural timber frame is not very significant
relative to the overall cost of the home.
Overall,
the project has been rewarding. The house is wonderful and
I will be opening it to the public in August. Also, I will
be capturing the entire project, including costing, in a paper
for BC Wood members.
AGM
and Members Only Day
Announcing
the BC Wood 2006 Annual General Meeting and Members-Only Program,
September 7th, Whistler, BC
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 as follows:
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12:00
PM
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Members
Luncheon with special guest speakers, Peter Hall, VP
& Deputy Chief Economist, Export Development Canada
(EDC) and Michael Levy, Executive VP and Financial Analyst,
Custom House
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1:30
PM
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In-market
Reports from our Representatives in China, Japan and
Europe
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3:00
PM
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BC
Wood AGM to review annual report and financial statements,
and elect a new Board of Directors
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4:00
PM
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Members-only
Reception & Networking
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6:00
PM
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GBM
Welcome Reception, Roundhouse Lodge, Whistler Mountain
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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 (http://www.bcwood.com/Prod/AGMs/GBMindex.asp)
and return to our office at 604-882-7300 by August 31st, 2006.
(Registration ensures we will reserve space for you at the
Luncheon and evening Welcome Reception)
Japan
Market Update
Jim Ivanoff
Import
Boom 2.0?
After
the end of the 90’s housing boom in Japan, import housing
had to face off against relentless cost-cutting efforts due
a deflationary economy as well as new Euro-centric design
trends. This caused a dramatic decline in the number of "import
houses" but there are signs that a segment of the Japanese
housing market is again pinning its hopes on North American
building products.
Over
the past few weeks I have been travelling around Japan to
invite clients to this year’s GBM in Whistler. The one
thing that has surprised me is how upbeat "import house"
builders are even in areas outside of the dynamic duo of Tokyo
and Nagoya. I believe there are several reasons for this.
One, during the 90’s everyone with a hammer was trying
to build import houses, but now only serious players remain.
They know the real advantages of 2x4 homes as well as the
beauty of Canadian finishing materials and thus act as passionate
advocates.
Another
reason is that the whole concept of an "import house"
has been dramatically altered. For one, builders have adopted
modern home designs that appeal to the Echo-boomer housewives.
The houses may look European or modern-Japanese, but they
have learned how to incorporate high-quality North American
materials into them. Also, these houses are no longer imported
as complete packages. Instead most builders have the homes
panelized at local factories and depending on the company’s
size, buy the finishing materials either from local distributors
or directly from North America. This approach has helped increased
efficiencies and made it easier to handle imported materials.
Why
are they called imported houses if only the raw lumber and
finishing materials are imported? Brand value! The builders
I have been talking to were optimistic about the market since
the Japanese economy has taken off and the baby-boomers are
expected to start spending their large retirement payouts
starting next year. While every home-manufacturer is after
this same market, "import housing" has become a
brand that separates them from the rest and allows these builders
to go after the higher-end market that would otherwise be
unavailable to them. Where the wall panels are assembled and
through what channels they procure their materials is irrelevant.
What is important to their customers is that high quality
imported materials are being used in their uniquely designed
homes.
Most
small builders in Japan have been suffering the onslaught
of large housing companies that advertise homes for as little
as Y260,000 per tsubo (approx. C$80 a square foot), while
they can barely sell homes in the Y450,000 to Y500,000 range
(C$135 – 150 a square foot). By using import housing
as a branding weapon, they can target customers that are looking
for something special and are willing to pay Y600,000 per
tsubo (C$180 a square foot).
Another
thing that encouraged me about the opportunities for Canadian
products is that many of these builders were complaining about
European products they handle. In particular they said that
while the price of European products is increasing, the quality
has significantly dropped off. Several suggested that the
European makers are having a hard time getting good fibre.
As one importer told me, "it is now time to take another
look at Canadian building materials."
Japan
Home Show 2006
While
it seems like just yesterday that we were doing the take-down
for the Nikkei Show, the deadline for Japan Home Show booth
space is already here. However, with Japan’s booming
economy and a brand new Canada Wood pavilion for this year’s
show, you cannot afford to miss the 2006 Japan Home Show.
The Japan Home Show has long been the main venue for Canadian
suppliers searching out Japanese clients and this is also
true for other foreign suppliers. As a result, Japanese buyers
know that the Japan Home Show is the show to visit if they
are looking for imported materials. However, at such a big
show it can be easy to get lost in the crowd. For this reason,
BC Wood, FII, and our Canada Wood partners are again working
together to build a Canadian Pavilion at the JHS that will
not only get us noticed, but also help change misconceptions
about Canadian building products.
The
new pavilion will only be used in the Japanese market and
will thus be designed exclusively for Japanese design tastes.
This will be a huge advantage to members participating in
the show as the displays will show how Canadian products can
be used in modern Japanese designs. The pavilion will also
highlight many Canadian wood species and how Canada’s
forestry practices are ensuring that there will be a continued
supply into the future.
With BC Wood’s new membership structure, we have been
able to reduce the booth space cost at the show to only $3200
per booth!
To
take advantage of this great opportunity, please contact Jim
Ivanoff at ivanoff@canadawood.jp
Revitalized
Interest in WRC at Carrefour du Bois
Brian
Hawrysh
BC
Wood, showing literature and samples from 6 member companies
participated in the Carrefour International du Bois in Nantes,
France May 31st to June 2nd. This “trade only” exhibition
brings together the key timber suppliers, importers and distributors
from France, Belgium, and Holland (generally referred to as
the Benelux markets) and other regions of Germany and Switzerland.
BC
Wood staff and attending member companies met with a large
number of importers during the three day show and identified
a strong resurgence in interest in WRC products. With a decreased
availability of Southeast Asian species, many European importers
were asking about the availability of WRC lumber and exterior
finishing products. In fact, this interest was so strong that
a number of these importers plan to attend the Global Buyers
Mission in Whistler, in anticipation of meeting with new suppliers.
A number of specific inquiries for WRC products were received
and are available to members by contacting Brian Hawrysh bhawrysh@bcwood.com
or Ludger Spohr at lspohr@bcwood.com
International
Contemporary Furniture Fair 2006
Dave Farley
The
18th annual International Contemporary Furniture Fair held
in May was New York’s key trade event to showcase design
products and contemporary furnishing. BC Wood members that
participated included: Straight Line Designs, Brent Comber
Originals, Martha Sturdy, and Berman Falk. Together, BC Wood
and members were able to prominently exhibit to over 17,000
attendees from 22 countries. Held at the Jacob K. Javits Convention
Center, ICFF 2006 continues to be the premiere event for contemporary
design, bringing together a highly diverse group of international
design professionals. The four-day event occupied 14,500 square
metres and gave the exhibiting BC Wood members an excellent
venue to make contacts and develop good leads with interior
designers, architects, retailers, builders, and other high
level professionals involved in the industry. Products showcased
at the show included contemporary furniture, seating, outdoor
furniture, and flooring.
Here
is some of the feedback from BC Wood members:
"The show was really successful. Attendance was up from
last year and people we talked to were looking for products
for particular projects. Attendees were more focused and more
eager. BC Wood’s presence was very successful with a
good mix of companies. I was really impressed with the quality
of work brought by BC Wood members. We received some excellent
feedback from other countries, trade groups, and press. Shows
like ICFF are invaluable and BC Wood members participating
can learn so much by going." – Brent Comber, Brent
Comber Originals
For more information on ICFF, please contact Dave Farley at
dfarley@bcwood.com
or call 604-882-7100
Lumber
Manufacturing and Product Knowledge Course
BC
Wood and the Canadian Mill Services recently organized a two-day
course in lumber manufacturing and product knowledge. This
course was designed to give individuals a general overview
of wood products manufacturing and a better understanding
of the industry. Several member companies sent employees from
a variety of positions from sales to accounting, to attend
this course and learn key terminology and concepts in this
business.
Some of the major topics covered included species identification,
lumber recovery, plant operations, grading, and end-usage.
In addition to a class lecture, students were given several
opportunities to gain hands-on experience identifying and
grading several different types of lumber samples. By the
end of the course, the group was extremely keen to be the
first to identify and grade. The course was taught by John
Leahy from Canadian Mill Services at the Green Timbers training
facility in Surrey, BC. For more information on this course,
please contact David Pao at dpao@bcwood.com
Solar
Assisted Kiln Drying
Solar
Assisted Kiln Drying Now in Canada Affordable Kiln Drying
It is not often that you see forest industry technology imported
from Australia. Nine years ago a kiln drying specialist from
Melbourne was not happy with the quality out-turns of his
hardwood specialty products from conventional dry kilns. They
were expensive to maintain because of hardwood’s corrosiveness,
gas was expensive, (then) and the drying quality was inconsistent.
What
is so different about this Dry Kiln Technology? Click here
to download the article
Welcomg
to BC Wood!
NEW
MEMBERS
Andersen
Pacific Forest Products Ltd.
The APFP sawmill is located on land owned by the company in
Maple Ridge, B.C. Its primary equipment consists of a seven
foot double-cut band mill and carriage, two pony band mills,
a band re-saw and a circular saw board edger. Over the past
11 years, through a process of continuous upgrading and supplementary
land acquisition, APFP has become a successful custom cutting
specialty mill with a record of continuous two-shift operation.
The last five years have seen the design and installation
of a new headrig and carriage, new grading and sorting facilities,
new filing room and equipment, relocated office, yard paving,
environmental upgrading plus many other improvements.Tel:
604-462-7316 Email: anderson@coll.bc.ca
BHI
Materials
Under their own label, BHI is marketing wooden garage doors,
initially targeting the Japanese market. BHI's doors, with
raised panels, utilize the finest custom wood components available.
Choices include the standard finger-jointed rail or optional
solid rail for a staingrade appearance. Panels are primarily
produced of Hemlock/Fir, or Cedar, but can be customized using
any wood species. BHI can produce almost any custom wood door,
to match our customers requirements.Tel: Tel 604-523-6125
Email: bruce@bhimaterials.com
Haida
Forest Products Ltd.
Haida Forest Products Ltd. became a separate and distinct
operating company during a planned re-structuring in September,
1989. Previous to that date the company operated as the Burnaby
Remanufacturing division of Mill & Timber Products Ltd.
This division commenced operation in 1951. The Company has
now operated from the same location, specializing in "Haida"
brand Western Red Cedar sidings, panelings and specialty products,
for over 50 years.
Haida Forest Products Ltd. has made significant contributions
to the development of the demand for Western Red Cedar and
its subsequent increased value. The company has continuously
upgraded its equipment and facilities and today employs the
latest in moulding technology. The company produces over 100
specialty and architectural products. They also specialize
in highly mixed loadings for delivery to all parts of North
America.Tel: 604-437-3434 Email: info@haidaforest.com
Norelco
Cabinets Ltd
Norelco Cabinets uses innovative European technology and high
quality materials to design and construct beautiful, affordable
cabinets for any room within a house. With a vast selection
of styles, finishes, decorative features and functional solutions,
Norelco can customize to fit client homes and lifestyles.
From design concepts to final installation, their experienced
team of highly skilled professionals is dedicated to excellence
in craftsmanship and personal service. Since 1972, Norelco
Cabinets has been designing and manufacturing quality cabinets
from their plant in Kelowna, BC, providing superior products
and exceptional service to customers throughout Canada and
the USA. Tel: 250-765-2121 Email: sales@norelcocabinets.ca
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2006
GBM Update
Randi Walker
It’s
almost time! In a few short months, qualified buyers from
all over the world will be arriving for the Global Buyers
Mission in Whistler. We are very excited about the quality
of buyers interested in attending this year – many of
whom are already purchasing from BC manufacturers, but looking
to expand their supplier and product lists.
We’re
also happy to learn that the mix has grown to include more
buyers of millwork and finished products including windows
& doors, flooring, mouldings and other high value-added
finishing products. (Feel free to call me for more information
on the buyers…)
Extended
Mission programs are being coordinated for groups from China,
Korea, Japan, Taiwan, Mexico and two from Europe – one
for Log Home & Timber Frame and another for Western Red
Cedar buyers.
These
missions will take place both prior to and after the GBM.
These are excellent business building programs for both the
buyers and the manufacturers. The buyers gain first hand knowledge
of the products and services offered by the manufacturers
– and the manufacturers have an opportunity to show off
their capabilities and range of products! To get on the tour,
you must be a registered exhibitor at the GBM.
Registered exhibitors also have an opportunity to extend an
invitation to the GBM. This could be a great opportunity for
you to connect with your current customers – and close
some of those prospective clients! There is a great incentive
package for qualified buyers including transportation from
Vancouver/Whistler return, 3 nights accommodation at a top
hotel, and meals during the event. What serious buyer could
resist that offer?!
You
do not want to miss this great opportunity to make new contacts
with buyers from around the world - all at one exceptional
event. Great business, great location and great fun!
Contact either myself (rwalker@bcwood.com),
or Susan Sullivan (ssullivan@bcwood.com)
at 604-882-7100, or you can visit our website at www.bcwood.com
and choose the GBM icon on our homepage for more information
on how to register - before it's too late!
Member
Spotlight: Permanent Pole
Randi Walker
Art
Paul and his small team in the Fraser Valley, produce some
of the industry’s largest and most unique products. They
are currently completing a project for a Birmingham, UK company
that Paul first met at BC Wood’s first Global Buyers
Mission in Penticton, almost two years ago. John Vincent,
a buyer from England, noticed Permanent Pole’s booth
on his way by to see another supplier and made a point to
chat with him in the last hours of the event.
Vincent
was intrigued with the unique products from Permanent Pole,
even though he had no current market. Vincent and Paul met
again at last years GBM in Whistler and this time, Vincent
knew he could find buyers in the architectural offices he
services. It turns out that Vincent is not just a major importer
and distributor of cedar products in the UK, but also has
ties to the high-end architectural and specifiers community.
With
more information on what amazing things Permanent Pole was
able to produce, he garnered a contract to supply 10 Western
Red Cedar double-ended tapered columns, each 33 feet in length
and 18 inches at the mid-diameter, for a commercial seafront
property in England. No small order, as it took almost 4 months
to secure the necessary raw materials from a major local log
company.
Permanent
Pole has three major pieces of equipment, including two modified
lathes that allow him to turn columns or posts up to 50 feet
in length and up to 30 inches in diameter. Permanent Pole
has supplied posts and poles to buyers all over Canada and
the US, as well as Japan and the UK, for everything from totems,
trusses and ship masts, to tables, lampposts and outdoor landscape
products. Paul is currently developing projects in the Philippines
and Hawaii, while finishing up an order for another BC Wood
member (see our next issue for what Brent Comber Originals,
of North Vancouver will be doing)
Art
Paul will be looking to meet more prospective buyers at this
year’s Global Buyers Mission in Whistler, September 7
– 9, 2006. For more information on the Global Buyers
Mission or Permanent Pole please contact us here at BC Wood
at 604-882-7100 or www.bcwood.com.
Incoming
Mission from China
David Pao
BC
Wood just hosted a group of incoming buyers and distributors
from China interested in sourcing Canadian softwood and hardwood
products. The two day schedule included visits to several
BC Wood member site visits to see primary wood processing
and remanufacturing. The visiting group was specifically interested
in finding lumber products made from Hemlock, Douglas-Fir
and hardwood species such as Maple and Alder; to import into
China for further remanufacturing and distributing.
Overall,
the group was very impressed with the quality of products
they saw and learned more about the capabilities of BC manufacturers.
All of the participants expressed a keen interest in returning
to attend the BC Wood Global Buyers Mission in Whistler this
September. For more information on this visit and incoming
groups from China, please contact Brian Hawrysh at bhawrysh@bcwood.com
PCBC
2006
Daryl
Holmes
The
2006 PCBC Show was held recently in San Francisco, California.
PCBC connects all the heavyweights from homebuilding, land
development, architecture, and home products at one supercharged
event.
Building
on the success of the International Builder’s Show held
in Orlando earlier in the year, BC Wood once again participated
in the British Columbia Wood Product Showcase, which features
product from many BC Wood members. The exposure of this showcase
and the attendance of member companies created a significant
buzz around the BC pavilion and once again, members were able
to engage show attendees and prospective business contacts.
The
home building boom in the western US continues to grow, which
bodes well for our members focusing on this regional market.
Niche opportunities have been identified and exist in many
local resort areas spanning from coastal San Francisco northbound
and into Nevada. The PCBC show provided members with numerous
opportunities to meet developers and architects currently
working on a number of large, new residential community projects.
Participating
companies included: Viceroy Homes, Stilewood International,
B.W. Creative, Woodtone Industries, Westeck Windows, Synergy
Pacific, Maple Homes, Canadian Heritage Timber, and Hamill
Creek Timberwrights. These members were able to meet many
qualified contacts and the 3-day show provided a steady and
continual flow of traffic throughout the showcase pavilion.
BC
Wood was able to make connections with some key developers
and builders at this show and has invited a number of these
decision makers to the Global Buyers Mission being held in
Whistler in September. If you have yet to sign up for the
Buyers Mission or would like more information on the event,
please contact Randi Walker at rwalker@bcwood.com
Upcoming
Shows and Events
Las
Vegas Furniture Show
July 25th- 29th, 2006
Las Vegas
The Las Vegas Furniture mart is the most recent entry in to
the trade event arena for manufacturers to showcase their
product to buyers from throughout North America and Asia Pacific.
The show was created to fill a niche created when the long
standing San Francisco furniture trade show and market began
to loose popularity and attendance fell significantly. This
event is projected to grow in size and eventually compete
with Highpoint as the largest showcase for retail furniture
in the world. As well,the Las Vegas Furniture mart has significant
backing from major furniture manufacturers from across North
America who have committed to long term leases and the location
in Las Vegas ensures that a strong attendee turnout is virtually
ensured.
Please contact Dave Farley at dfarley@bcwood.com for more
information.
International
Woodworking Fair August 23-26th, 2006
Atlanta, GA
The IWF is the largest machinery show in the United States
in 2006. All the significant manufacturers of woodworking
machinery attend this show. BC Wood will organize a mission
of 6 Cabinet (and possible furniture) manufacturers to attend
this show to investigate new equipment options and suppliers.
Please contact Dave Farley at dfarley@bcwood.com for more
information.
Japan
DIY Show
August 24th – 26th, 2006
Tokyo, Japan
As
the largest DIY event, it attracts the DIY chain store buyers
from all over Japan. The exhibitors get a list of the participating
buyers beforehand and can book appointments with DIY chains
of their choosing. Please contact Jim Ivanoff at ivanoff@@canadawood.jp
Salon
Maison Bois
October 13-16, 2006
Angers, France
Salon Maison Bois show is the largest event solely dedicated
to wood-frame housing construction in Southern Europe. Over
40,000 attendees from all over Europe came to the show last
year to see the latest developments in wood design and building.
Attendees of the show include architects, engineers, consultants,
contractors, and interior designers. This tradeshow will target
the following industry sectors: Pre-built structures such
as log home, timber frame homes, and 2x4 homes; structural
building materials such as Western Red Cedar siding; and WRC
outdoor garden products. Please contact Daryl Holmes at dholmes@bcwood.com
for more information.
NEW
ASSOCIATE MEMBERS
CB
Golding
CB Golding is an accounting firm based in Vancouver, BC, specializing
in the needs of businesses facing the challenges of expansion.
Typically working with companies earning $5 to $20 million
in annual revenue, CB Golding assists companies on both sides
of the border with Canadian & US tax management, accounting
and advisory services and financial projections and forecasts.
Hub
International TOS Ltd.
Hub International TOS Ltd. is a leading North American insurance
brokerage providing a broad array of property, casualty, life
and health, employee benefits, investment and risk management
products and services across North America.
The
Wood Enterprise Centre
The Wood Enterprise Centre offers full service hardwood and
softwood secondary wood manufacturing. Specializing in CNC
routering, custom moulding and furniture grade kiln drying
we can produce the quality wood components you require. We
have recently expanded our shop to over double the manufacturing
space and moulding capacity. Contact us directly to discover
how we can meet your production needs.
Trident
Freight Logistics
Trident Freight Logistics specializes in the movement of special
commodities such as fresh and frozen perishables, premium
machinery conveyance, as well as general commodities. Trident
Freight Logistics offers competitive pricing and expedient
transit times as well as management services for all transportation
needs. With over 60 years experience in the industry, Trident
focuses on catering to each customer's specific requirements.
Barker
Manufacturing
Barker Manufacturing provides custom CNC routing services,
specializing in Architectural Inlays. Inlays add value and
extraordinary appeal to products. Types of architectural inlay
work include company logos, gifts, signs, counters, walls
panels, floors, doors, sills, thresholds, trim, stair treads,
nosings, risers, and guardrails.
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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