Concepcion R.P. SSM 200 shingle squaring machine (shingle R&Rmachine).  It is in like new condition, original price $160,000, asking $75,000. For more information, click here. If you are intersted, please contact Jim Sward at (604) 826-7185.

If you have not yet considered participation in the 2012 Global Buyers Mission in Whistler, think of this: What other opportunity would put you face-to-face with 200+ wood products buyers from currently registered markets like Australia, Belgium, Eastern Canada, China, Germany, India, Japan, Mexico, Netherlands, Pakistan, Russian Federation, Taiwan, United States, and Vietnam?

This is the only event of its kind, specifically developed to help Canadian wood products manufacturers connect with pre-qualified international buyers. It is also one of the most significant events for introducing specifiers like architects, designers, engineers, contractors and developers to our important wood products suppliers, through educational programs and exhibits.

There is still some space available and thanks to our partners and sponsors, at a surprisingly affordable rate, for those looking to expand their book of business into lucrative new markets. You don’t even have to sell abroad to build new business. There are plenty of US buyers and even those from eastern Canada looking for new suppliers.

However, we will be closing our space bookings by August 22nd, so you must call us by then to ensure your participation at what is certain to be your best business building event of the year!

For more information, please email me at rwalker@bcwood.com  or call me at 604-882-7100.

A few comments, suggestions and ideas that may of interest to industry…

As we prepare for the upcoming trade event and mission this spring to Lake Tahoe, I thought it might be a good idea to introduce you to a few of the key influencers and decision makers in the market. These firms have projects in the exclusive Martis Camp development in Truckee and are known for using an extensive amount of wood in their designs.

As such, here is a review of architectural firm Sandbox Studios.

SANDBOX is an award-winning, architect and interior design firm based in Tahoe City, California on the North Shore of Lake Tahoe. Founded in March 2001, SANDBOX specializes in high-end, residential design, engineering, interior design, and commercial improvements. The firm was founded by partners, Scott Gillespie and Maja Thaler, on the belief that a multi-disciplinary approach to the design of mountain homes and an appreciation of the natural beauty of the surrounding area lends itself well to creating good architecture.

A typical Sandbox design will feature an extensive use of heavy timber in both the structural and finished features of the home.  They commonly use West Coast softwood in their projects including an affinity for Douglas Fir, Western Red Cedar, and California Redwood.

Checkout their website at www.thesandboxstudio.com or contact me for further information on how to approach them with information on your products.

Influencing the architect community can often be a daunting task for wood product manufacturers. The issue becomes more complex when the firm is located outside of Canada.  The best way for BC manufacturers to reach this group is through offering architectural credits to the firm through presentations commonly referred to as  “lunch and learns”.  First though, a company must get approved by the American Institute of Architects (AIA) to be able to offer lunch and learn credits to architects in the US.

This can be an expensive and time consuming task. The good news is that CMHC has a program which will help to cover the cost of your company in becoming AIA accredited.  The program helps select manufacturers with the assistance of 3rd party direction achieve their AIA accreditation allowing them to offer lunch and learn seminars to select architectural firms across the United States.  CMHC will help to offset the cost by as much as 50% for a manufacturer to get accredited; which is significant when you consider that it can typically cost $12,000 and up for a company to get approved. This program is only available to select manufacturers. To discuss whether this program is right for you,  or if you have any other comments or questions on the US market  please contact me at dfarley@bcwood.com

NAWLA Traders Market -Magellan Club, Chicago, IL November 5, 2010
Russell Taylor

Presentation Outline
1. Global Softwood Issues
2. Russia
3. China
4. North America -Export/Impport Outlook

1. Global Softwood Timber & Lumber Supply Issues
The biggest wildcards impacting markets:Short Term to Mid Term Demand (2011-2013):

• U.S. housing starts -to 1.5 million units when?
• EU (global) debt crisis (and other emerging crises).
• China’s widening supply gap (25% Russian export tax).
• Russia log export tax going from 25% to ?? or to 80%?Longer Term Supply (2014+):
• BC mountain pine beetle (and its expansion east).
• China demand keeps growing -supply gap widens.
• US/global lumber supply gap looming -starting in the 2ndhalf of decade? Prices could/will soar!
• Other market wildcards: Middle East/North Africa (India)

Click here to view the entire presentation

In early February the stock market was trading off its recent highs. Gold had pulled back substantially, and most other commodities were taking a hit as the U.S. dollar rose. However, one commodity has been able to shrug off the selling and hit a fresh two-year high in February – timber.  Price Of Lumber Highest Since 2007 – The price of timber rose above $280 per 1,000 board feet in February, the highest since August 2007. And in the last year, the commodity is up approximately 60%, slightly ahead of U.S. equities. The rise in lumber is confusing to many because the housing market has yet to show sustainable recovery signs. Considering the housing sector is responsible for 45% of the lumber demand, according to the Western Wood Products Association, the rise in timber can suggest a few things. For starters, the rise in timber could be a leading indicator that the housing market is about to turn, as the commodity’s price rises before the next demand surge. On the other hand, the price increase could be tied to the fact that timber supply has dropped dramatically, as less was produced during the recession. Finally, it could be that lumber is rising with every other commodity and asset class off the March lows after investors priced in a depression scenario that never occurred. Read More

You can’t discuss buying or renovating homes and condos these days without uttering the word “upgrade” somewhere along the way.

Hardwood flooring ranks among the top features buyers choose to install after purchasing a new home, says Kevin O’Shea, director of Monarch’s Ottawa housing operation.

“I’d say 80 per cent of our homeowners will upgrade to it from standard broadloom [carpet],” says O’Shea, who oversees construction of homes in communities across the city, including the company’s large golf-course development, rated one of the best in the city.

Hardwood is a hot trend for a number of reasons. One is air quality and ease of maintenance, requiring only a quick vacuum or sweep and wipe-down; whereas a carpet must be steam cleaned to remove most dirt and bacteria.

“My personal belief is hardwood is a cleaner environment in the home,” says O’Shea. “Carpets and broadlooms have been criticized for allergens, holding dust, sort of prohibiting the cleanliness of the interior atmosphere of the home.”

The second reason is all about fashion and the influential power of design media, including magazines, television and the Internet that do a lot of their photo shoots with hardwood. This drives home the perception that gleaming wood flooring translates into healthy and stylish living.

Yet making the decision to go with hardwood flooring is only the first step in what can become a complicated exercise. Walking into a flooring store or design centre can spur a multitude of overwhelming choices. There are many material options — domestic to exotic woods.

The form — engineered, prefinished, solid and laminates — to a raft of colours, widths and final finishes. Buyers also have to consider the purpose.

Will the floor serve a formal role in a low-traffic area, including the dining area or master bedroom? Or will it have to weather the nicks and gouges of a high-traffic area such as hallway or a recreation room where children and pets are certain to play.

In that case, scratch- and dent- resistant laminate, which is essentially coated melamine flooring with an image of wood on it, may be a practical option. It’s also about 50 per cent cheaper than real wood. Read More

Find out how your business can prepare for the new Harmonized Sales Tax taking effect July 1 by attending this Special HST Breakfast presented by B.C.’s Certified General Accountants.

As B.C.’s largest professional accounting association, CGA-BC is very pleased to host this special seminar on the Harmonized Sales Tax, featuring David Baxter’s keynote presentation, ‘Evolution or Extinction: HST in a British Columbia That Works,’ and a panel discussion of leading tax experts.

Open to the general public, this is a tremendous opportunity to network and learn how to prepare for the HST’s new requirements.

Date: Thursday, March 4, 2010

Time: 7:30am – 10:00am

Location: Crystal Pavilion Ballroom, Pan Pacific Hotel, 300-999 Canada Place, Vancouver, BC

For more information and registration, please click here

Pacific BioEnergy’s wood pellet plant in Prince George is set to become the largest such plant in Canada and the second largest in North America… In announcing a $24-million dollar expansion of the facility, Vice-President of Operations, Brad Bennett, says Pacific BioEnergy has entered into a strategic partnership with GDF Suez, Europe’s largest publicly-traded utility. Bennett declines to go into specifics of the deal, but says a GDF subsidiary will become a minority owner and the partnership has allowed Pacific BioEnergy to secure funding for the expansion.Read More

Western Forest Products Somass Division has resumed limited production with one daytime shift.  The waterfront cedar mill, once the largest wood processing facility in the world, has been running with a crew of 43 since Feb. 1, according to WFP spokesman Gary Ley.  “There is some demand for the cedar that we cut at Somass,” Ley said. “Some of the wood is going to Europe and some is for domestic sales.”  By “domestic,” Ley said he means within Canada. Sales of finishing grade cedar to the U.S. have been low, as have sales to Japan.

“Historically, the U.S. has been an important market for us, and cedar has been important to the Japanese market,” he said.  With the short crew, the Somass yard doesn’t have the same buzz as in past years. Read More

Several cities exceeded expectations for housing starts in 2009.  Especially Edmonton saw more housing starts in fall and winter 2009 than CMHC forecasters expected. Only Greater Vancouver had fewer starts in 2009 than expected.

To view the January 2010 Western Canada Housing Market Tracker, click here.

This week BC Wood along with four member companies participated at the IBS 2010 trade event in Las Vegas Nevada. The show has an attendance of approximately 55,000 that at filled two of the three massive halls at the Las Vegas trade and convention centre. A number of themes were evidentat this years show including: the fragile and recovering US economy and its effect on residential housing starts, increased acceptance of factory direct imports from Asia, the demise of the mega house and move to smaller more affordable housing, and finally any and all things green.

This year’s event saw an increased number of Asian cabinet and mill-work manufacturers who exhibited their product to the US and International builder and architect community. Many of these exhibitors were offering “factory direct” shipping and delivery to home builders from across the Western United States, some were even willing to offer free shipping if the order placed reached a preset quantity. For example, a wood door and window manufacturer from Southern China was willing to provide free shipping for door orders totaling over $40,000 USD. In conversations with builders who target the $200+ square foot residential housing market this dollar figure could easily be reached if you include  prefinished and pre hung entry doors, interior doors and closets. Of concern were issues regarding quality control and repair of potential damage that may occur during shipping. Many builders agreed that the price may be worth the risk when compared against purchasing from existing supply chains.

The question that needs to be addressed is if this direct to market strategy will ultimately succeed for lower cost Asian manufacturers, and what effect it will have on existing two step distribution and supply chains for manufacturers. I think the key finding is that BC manufacturers who continue to offer innovative product, followed with strong sales and customer support will find their customer base will avoid the high risk of dealing direct with Asian based manufacturers.

Is 2010 the year we see the demise of the mega house and a trend to the return to smaller more cost effective housing? In discussions with a number of residential home builders and developers who stopped by the BC Wood booth I would suggest the answer is yes but not necessarily in new home construction. Builders I spoke to suggested that they are looking at the rebuild and retrofit market as a growing opportunity in residential housing.  Retrofit is essentially taking an existing home that has a smaller square footage footprint and renovating it to become more attractive and more importantly energy efficient. One builder group that targets the Las Vegas market was quoted as saying “the trend in his market is for more people to live in smaller houses, closer to the city and closer to transportation. With these trends, retrofits make sense”.  They are aggressively perusing the retrofit market by purchasing houses in foreclosure at bargain basement prices, retrofitting the homes and selling them for a decent return. This group is sourcing building products that are of good quality, have an environmental benefit and are reasonably priced. They are trying to avoid low price Asian imports due to the   environmental and social costs associated with the importation of these products. The retrofit market is a niche but potentially growing market opportunity for BC based manufacturers and it will need to be followed to see if it moves from a niche to common building practice in the US residential housing market.

The word “green” has been overused and is not commonly associated with residential construction, but green and sustainable building products were front and center at this year’s IBS trade event.  Green building was evident throughout the show from the numerous seminars to the over 1,100 exhibitors of building products and construction materials – many had a common theme of sustainability. Green building is generally defined as construction practices that save energy and natural resources.  It can be a simple as switching to LED lighting or as complex as geothermal wind and solar powered energy systems.

In regards to wood, numerous architectural mill-work, cabinet and door manufacturers showcased product that featured formaldehyde free adhesives and water-based finishes. The manufacturers claimed that the benefits of their products led to a healthier house and living environment for the end user. Of feature, was a new product introduction from Caoba doors that touted their FSC certified wood, new sustainable manufacturing process and high quality “green” finishes.

Wood Products that were shown to be energy efficient were also on display that this years event. For example in an interview with the Las Vegas Journal manufacturer Norbord Industries showcased their new solar board radiant barrier sheathing panel. According to their sales representative it reduces heat gain in the attic space by reflecting heat from the sun, which in turn reduces the load on light commercial and residential air conditioning systems. Norbord also introduced their Tall Wall  OSB sip panel that they suggest reduces air leakage by up to 60% and does not contain any urea formaldehyde resins which again leads to better indoor air quality and healthy housing.

What does this all mean?. Not a great deal except that it is important to market the environmental or sustainable qualities of your products. Wood products alone already have a good story to tell and it is incumbent upon BC manufacturers to develop an green market strategy and to get the message out that their products are sustainable and add to the overall health of the environment. This green messaging will be needed to keep up with both domestic and international competition who all already spinning their own green story.