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| September 5, 2003 | Volume 2, Edition 16 |
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What's Life Without a Challenge? Bill Downing, CEO
What are operational costs? In much the same way that you separate your business costs into fixed and variable costs, BC Wood separates its costs into “operational costs” and “program costs”. Under the definition provided by our funding partners, operational costs are all costs incurred within British Columbia. These include salaries of staff physically located in BC, rent, utilities, local travel etc. Program costs are those costs incurred in delivering marketing services outside of British Columbia (trade show, trade missions, market studies etc.) and the cost of in-market staff. Except for a 5% administration fee, all funding received from Forest Innovation Investment and the Canadian Wood Export Program must be applied to program costs, not operational costs. What did BC Wood do in the past? Since 1989, our funding partners have always contributed to the cost of staff located in British Columbia. The rationale for this was simple: it takes a great deal of head office staff time and effort to organize, promote and implement our marketing services. For example, imagine the effort required to arrange, coordinate, promote and implement a 10-day trade mission to China for a dozen or so BC Wood members. Staff costs incurred in these activities was considered program costs and were eligible for funding. Under the new definition, even staff 100% devoted to programs (as almost all BC Wood staff are), are not considered program costs. Wasn’t the Legacy Fund supposed to secure BC Wood’s operational funding? Yes, that was the concept when BC Wood approached the government to establish a $15 million Legacy Fund, the interest from which would fund BC Wood’s operational costs. In return, BC Wood lowered its membership dues $50 to allow every value-added producer, regardless of size, to join. After the Legacy Fund was eventually established, it was capped at $6 million. With the rates of return on investment quality bonds around 3%, the interest generated from the Legacy fund is a far cry from what was originally anticipated. Although BC Wood has raised its dues recently, the combination of dues and Legacy Fund interest falls far short of BC Wood’s operational costs. How does BC Wood plan to address this issue? The BC Wood board of directors has been investigating new business models that could potentially generate the revenue required to meet operational costs. These models examine various ways to increase revenue and trim operational expenses. The options will be presented at BC Wood’s AGM on Saturday, October 4th for comment. Based on the feedback from members, the board will choose a new business model. This will be a critical decision for BC Wood, as it will affect the future structure and viability of the organization. Your attendance and feedback is critical. Member support allowed BC Wood to overcome obstacles in the past and your support will be the key to meeting this latest challenge. 
2003 International Marketing Conference and AGM in VANCOUVER
Member Spotlight: Straight Line Designs Inc. Mary Quinn, Member Services Marketing Coordinator As a graduate from the Emily Carr Institute of Art and Design, Judson Beaumont dreamed of being an artist. Most would agree that even though he owns a custom furniture manufacturing company, he is still an artist. All you have to do is take one look at his furniture and you will agree.
As he went through art school, Judson loved to build things and be creative. One of his school projects included geometrical square boxes that people ended up buying and using as coffee tables. This seemed odd to him, as Judson considered the boxes as art, not furniture. Little did he know that this was foreshadowing his future and that one day he would view art as furniture and furniture as art. In 1986, Judson incorporated Straight Line Designs Inc. in Vancouver, BC and named his business after the type of furniture he was making. "I started my own business not to be a business man, but to be an artist and a designer. I just wanted to build things and be creative at the same time." Admitting that he didn’t know the first thing about business when he started, Judson’s business quickly grew as Vancouver saw his work in various art galleries.
Soon Judson’s furniture began to take a childlike, cartoonish aspect
to them, each
As he loves what he does so much, and as a WoodLINKS board member, Judson often talks to students about a career in woodworking and how fulfilling it can be. He met Dave Farley of BC Wood at one of these presentations, and was quickly convinced that he should be attending tradeshows and showing people his work. After attending his first show in San Francisco, Judson learned that tradeshows were a great way to meet people and network, while at the same time showcase his furniture. Today, Straight Line’s biggest market is the Eastern US. "The most important thing to do is get your name out there, and this is exactly what tradeshows will let you do," comments Judson. The future holds much prospect for Judson and Straight Line Designs. When asked what his plans are, he simply states "to design." "The best part of my job is meeting new clients and working together with them to design projects that will put a smile on their face."
European Market Report Ludger Spohr, BC Wood European Representative After a quiet summer we are now facing a busy fall, with many events taking place in Europe. In September I will be in BC, first for a reception with the publisher of the only German loghome magazine "BlockHome" on Spetember 24, and then for a buyers mission with representatives from the three German speaking countries Austria, Switzerland and Germany on September 30. I hope to meet some of you at these events. The focus of these events will be mainly log homes, but we will also discuss other products as well. Please see this newsletter for more information on these events. Next, I will be at the BC Wood International Marketing Conference and AGM in Vancouver, after which I will leave for France for "Salon Maison Bois": THE housing show for wood frame and log homes in France. For members who are not able to attend the show themselves, there is always the option of having BC Wood represent you with your brochures. For a package price you will receive a report on the opportunities discovered and the reactions to your brochures at the show. I would like to offer some advice on this option. First, your brochures will never be able to replace you personally representing your company and I will not be able to fully replace you either. This option should only be viewed as a test in order to get a first taste of the market. Secondly, if you send brochures or attend the show, please have brochures (or a photocopied insert) written in the language of the country you are visiting. This shows your interest in the market and the absolute minimum respect towards your potential customer. Other things you may want to send to the show are business cards and samples if possible. These samples should be stamped with your company’s name, address, and phone number, or at least your website. You go to a show (or send brochures) because you want new potential customers. So give these potentials a chance to get in touch with you! BC Wood is also planning a softwood mission to the Baltic countries in late October. The focus of this mission will be on technical transfer and information gathering in order to get an insight on the competition. Never underestimate your competitor – that just weakens your position! When I was there in June, I was surprised to hear that most of the bigger and successful companies were joint ventures with UK based companies. Even if it is still far away, I will mention Maderalia which takes place from November 12-15 in Valencia. This show is dedicated to the furniture industry and attracted 500 exhibitors and 42,000 visitors in 2001. The focus will be on veneers and lumber. When planning this trip you should keep the following in mind: Spain is the largest European hardwood importer from North America and is taking a big portion of the Italian furniture industry. Softwoods are also being used on a large scale. You can either attend the show yourself or send your brochures with BC Wood (translated into Spanish). Also, for you gardening products manufacturers, I will walk GAFA in Cologne in early September and then will attend GLEE in the UK (Sept. 21st – 23rd) as well as Plan Expo (Dublin, Nov. 6th – 8th). So I think the message is clear: Lots to do in Europe! I am here, and I hope you will be too.
Japan Housing Starts Up in June TOKYO (Nikkei/Dow Jones)--Japan's housing starts rose 13.4% in June from the same month a year ago to 115,081 units, the Ministry of Land, Infrastructure and Transport reported Thursday, July 31, 2003. The improvement is in line with stronger demand for high-rise housing in Tokyo, particularly for condominiums with a higher price tag. Condominium starts comprise the majority of new housing built in Tokyo. Around half of all new condominiums built in Japan are located in the Tokyo region. The increase was much larger than expected by economists surveyed by Dow Jones, who estimated on average that housing starts rose 0.6%. It was the first rise in two months. The figure fell 7.7% in May, rose 1.4% in April and fell 1.9% in March. Private housing starts for individuals' homes in June rose 20.9% on year to 40,997 units, while rental housing rose 3.8% to 45,480. Meanwhile, starts for multi-unit dwellings rose 3.8% to 27,964. Multi-unit starts include those of condominiums. For more information, please visit the website at: http://www.mlit.go.jp/toukeijouhou/chojou/index.html
Venture Kamloops Forum Series on Competitive Wood Manufacturing
Welcome Remarks - David Laird, Mayor—The City of Merrit, BC
"Gorilla vs Guerilla, Marketing in the America Jungle"
"Engineering Techniques for Wood Building Systems"
"2010 Olympics—Win Gold with Wood!"
Opportunities for Partnerships with First Nations Communities
"Slash Production Costs—Be Energy Efficient" And much more! Details and registration information at: www.venturekamloops.com. Click here to download the entire agenda.
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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Session on Opportunities for the Log Home Market in Europe
BC Wood will be hosting an information reception on September 24, featuring the publisher and
editor of Europe's premier log home magazine, Rainer Muller. Rainer will be featuring a report
in his magazine, Blockhome, on the BC log home industry. This is an excellent
opportunity to showcase what your company has to offer and to be
John Moss, BC Wood's new US In-Market Rep, will also be at this reception to meet with
BC Wood members. He will discuss his experience in the Pacific Northwest market as well opportunities for
BC Wood members in this market. For more information on John Moss, please see his
bio.
For more information, or to register for this event, download the
promotional
sheet or contact BC Wood at 1-877-422-9663.
BC Wood, CMHC, and The Department of Foreign Affairs and International Trade invite you to a business match making reception with buyers from Austria, Germany and Switzerland on September 24 in Vancouver. This group of 19 will be in BC and Alberta to learn more about Canadian prefabricated, timber frame, and log frame homes. The European delegation represents manufacturers, wholesalers, distributors, agents, and retailers from the above listed countries. The European delegation are interested in learning more about Canadian building styles, and the technology, efficiency, costs, and exporting of wood construction. They would also like to explore opportunities for joint ventures and strategic alliances with Canadian companies. If you manufacture log homes, timber frame, prefabricated structures, or finished building products, this is a great opportunity to showcase your products and inform interested European buyers what you can offer. An overview of the opportunities for Canadian companies in Germany will also be discussed. Anyone attending should bring brochures, business cards and hand samples. If you reserve a tabletop, you will have a 6ft. tabletop to display brochures, business cards, photos and hand samples. For more information, or to register for this event, download the promotional sheet or contact BC Wood at 1-877-422-9663.
Attention Log Builders, Timber Framers and Panalized Homebuilders Interested in the Japanese Market!
BC Wood is wrapping a mission around the Japan Home Show in November,
focusing on resort sector opportunities for prefabricated structures (log,
timber frame and platform frame). The mission will be all inclusive,
including:
This mission will consist of a small group of BC manufacturers. The goal of the mission is to assist new or recent entrants to take advantage of opportunities in the potentially lucrative Japanese resort market. We have just a few spots left. For more information, please contact Mike Jahraus at BC Wood, at 604 556-3373 or email mjahraus@bcwood.com.
We are pleased to welcome the following new BC Wood Members who have joined us since August 1, 2003: Winterland Industries, Rossland - Remanufactured Products (semi-finished) Xenis Collection Ltd., Aldergrove - Specialty Items Lloyd Industrial Wood Products Inc., Logan Lake - Remanufactured Products (semi-finished) Spirit Tree Wood Co. Ltd., Rossland - Furniture and Fixtures Bakerview Forest Products Inc., Abbotsford - Remanufactured Products (semi-finished) LeggettWood, Langley - Remanufactured Products (semi-finished)
New BC Wood 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 Randi Walker at 604-556-3373 or toll-free at 1-877-422-9663.
Garry Rowell
 Portables is Canada’s largest supplier of exhibit marketing products and services. We specialize in communicating your message in "face-to-face" settings such as tradeshows, conferences and malls using high impact, dramatic graphics and exhibit structures. Our objective is to design and develop a total exhibit solution for you that attracts attention and achieves your goals, all within budget. Call us today at 604.276.2366 or visit www.theportables.com.
Rajan Sodhi
 Canadian builders and suppliers now have a national voice in Canada as well as a first class venue to market their products. Canadian Log Home Living produces five issues per year with a massive distribution from coast to coast in North America. Phone 1-888-336-1122 for more information or visit our website at www.canadianlog.ca.
Dave Cole
 For over 35 years, Wagner Electronics has been an industry leader in providing moisture measurement solutions to primary and value-added wood products industries. Wagner Electronics manufactures state-of-the-art in-line moisture measurement systems for planer and moulding operations, in-kiln moisture measurement systems, and accurate handheld moisture measurement instruments.
Ron Smith
 Comotion Design is a creative services firm. Our in-house creative team and network of partners provide print, web, multimedia, environment design, advertising and media buying. We do our homework; we study your business and everyone else's. Our extensive experience in the value added sector enables us to provide focused creative work that communicates to your audience.
Stephen Cameron
To download the survey from our web site, please visit www.wmc-cfb.ca or call us at 1-613-567-5511. Thank you for your participation. This project will assist us in promoting our sector and attracting skilled young people to our workforce.
International Log Builders Association Fall Rendez-Vous The International Log Builders Association 2nd Annual Fall Rendez-Vous is coming up, September 19-21, 2003 in Cherryville, BC. For more information, please visit their website at www.logassociation.org/ conference/rendezvous/ 2003/index.php.
Glee
Session on Opportunities for the Log Home Market in Europe
Buyers Mission From Europe
Salon Maison du Bois
Angers, France
National Sash and Door Jobbers Annual Convention
Log Home & Timber Frame Expo
Shanghai Trade Mission & China Wood Export & Import Conference For more information on these tradeshows, visit the BC Wood website.
Consultants & Marketing Services
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BC Wood has met and overcome many challenges since its inception in 1989.
Thanks to an active and supportive membership, committed staff and the
leadership of its board of directors, BC Wood has overcome many obstacles
to grow into the largest wood products association in Canada. Well, once
again BC Wood is facing a serious challenge, one that could threaten the
viability of the organization. Specifically, to be eligible for continued
funding, BC Wood must be in a position to cover 100% of its operational
costs by the end of in Fiscal 2004-2005. What are the ramifications of
the new requirement? I’ll explain through a series of questions and
answers:
This year's International Marketing Conference
and AGM will be held in Vancouver at the Sheraton Wall Centre. Check the BC Wood
Whether it is a cabinet that literally splits in half, a dresser that
has its own curves, or a grandfather clock that looks as though it were
impatiently telling time, there’s no denying that these products take a
great deal of imagination and creativity. "What art school taught me was
to look at things differently," comments Judson.
One of the biggest influences for Judson was the 1988 movie "Who Framed
Roger Rabbit?" This movie sparked many ideas for him as it showed him
furniture in a new light. All of the buildings and furniture in the movie
were bent and twisted. "I thought it was pretty clever and thought - why
couldn’t I do that with furniture?" People’s reaction to Judson’s new
line of furniture was to say "You can’t do that to furniture!"
"Why not?" Judson responded.
with their own character and personality. Although he never
intended his work to be viewed as kids furniture, Judson claims that it is
really adult furniture for the kid in all of us. Today he is well known
for his creative children’s bedrooms and displays, in which no straight
lines can be found. His work can be seen all over BC and the US, including
the BC Children’s hospital which houses over 13 of Judson’s imaginative
displays, and the Santaville display at Park Royal Shopping Center.
One of Straight Line’s largest projects includes the Cotsen’s Childrens
Library at the University of Princeton. Here Judson and twelve
craftspeople brought to life the designs of Pennsylvania architect James
Bradbury with a 17 foot architectural tree, 5 foot animal topiaries, a
reading loft, and much more.
Venture Kamloops is hosting its third wood products manufaturing forum on
September 18, 2003 in Merritt, BC. Topics and speakers include:
featured in the largest log home
magazine in Germany.
Recruiting young people to study and work in all aspects of the forest
industry is a challenge in today's political and social climate. The
Wood Manufacturing Council is working with educators and industry, to
increase the quality and quantity of employable young people in our
sector.
Please help us to define the educational requirements of the advanced
wood product processing sector by completing our Educational Needs
Survey.| September 5, 2003 | Volume 2, Edition 16 |
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| Copyright 2003. BC Wood, All Rights Reserved. | |
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