BC Wood just recently received confirmation that the funding for our 2013-2014 trade show activities has been approved. We began this year’s proposal writing with some concerns over just how much our members would want to take on in the coming year. Our early December sector meetings with member companies provided some good input on how much companies wanted to do this year and where they wanted BC Wood to focus its’ efforts.

BC Wood took this input and put together a comprehensive package of market development activities. Upcoming activities will focus on expanding market share in the United States while maintaining the hard won presence we have gained in Asian markets and Eastern Europe. Recognizing the possibility of a new and emerging market opportunity in India, BC Wood has scheduled a mission and participation in a trade show in Bangalore in February 2014. The Global Buyers Mission, our 10th, will be a highlight, with over 200 buyers coming to Whistler in early September.

I would like to recognize and thank the staff of BC Wood for the extra effort they put towards writing these funding proposals. The result was that BC Wood has another strong program of approved trade event activities for 2013-2014. For those of you wanting to see the updated list of trade show activities, please visit the BC Wood website at www.bcwood.com and select Trade Events from the Programs & Services tab. Any comments or questions regarding these planned activities can be directed to me at bhawrysh@bcwood.com or by calling our office at 604-882-7100.

BC Wood recently participated in Holzhaus 2012 in Moscow, Russia.  This return to the market was based upon the success from attending the show in 2011.  During that initial visit, it became clear to manufacturers that this large (audience base) and geographically expansive marketplace has considerable opportunity for sales of member products.  Successful sales contracts have been secured by members who have already participated in this program, with market indicators suggesting further growth in this area will be realized in the years (next 24 months) to come.

Holzhaus 2012

This trade show is one of the many construction industry exhibitions held in the Moscow area each year.  This show focuses primarily on wood framed housing and features 90% local products.  While the exhibition hall was dominated by local manufacturers of Siberian pine products, the presence of our BC Wood pavilion drew considerable attention from the show attendees. Local laminated log products and large diameter (Pine) handcrafted products featured heavily in the show. BC Wood showcased five member companies in the pavilion and featured a diverse range of products from handcrafted, machine cut log homes to specialty western red cedar products.  The show attendance was down on last year due in part to an overlap of construction exhibitions taking place on the same dates; however, members were able to reach a good cross section of the construction audience.  Although this show was billed as a business to business show, there were examples of consumers in attendance who were visiting the show with plans and construction projects in hand.  As a group, BC Wood members were able to gather qualified show leads and also make crucial introductions to key industry partners who showed interest in representing BC’s manufacturers.  The Canadian Embassy once again hosted a meet-and-greet event that enabled members to interact with some of Moscow’s prominent construction companies and prospective partners.

Last year, we reported that the market opportunity for members was in Log and Timber Frame products along with speciality WRC products.  This is certainly the case and I would add that there is a niche opportunity for remanufactured products sector as well as the millwork sector.  Below are some market observations that should enable BC companies to increase market share in this area.

Resort Projects Growing

Value added manufacturers could reap the benefits of a recently announced $18 billion plan for seven ski resorts scattered throughout the mountains and three beach developments costing $4.6 billion on the coastal regions of Russia.

Sochi 2014 Winter Olympics

The upcoming 2014 Winter Olympics being held in Sochi on the coast of Russia will generate interest from global partners in construction.  A well run Olympics could showcase the Black Sea coast area as a viable location for further investment in housing and resort style construction projects.

Government Incentives

With the Russian Government launching multiple national construction sector projects, it is not an exaggeration to say that wood is a material that is being embraced by industry professionals who are involved in local construction planning.   With the congestion of inner Moscow seemingly increasing since our visit 12 months ago, the support for wood framed construction projects on the outskirts of Moscow appears to be favourable. Russian leaders, from Vladimir Putin on down, support increased tourism and have allotted Government funds to provide incentive to developers in Russia’s huge geographic area.

Next steps

Economic development is going to increase in this market. To capture the opportunity and turn this into sales for you, the manufacturer, you will need to find the right partner in Russia. There are companies and prospective partners ready to connect with BC Wood members.  Participation at upcoming BC Wood 2013-2014 market development activities will ensure you meet qualified industry members who are both willing and able to form joint venture and long term partnerships.  For more information on this show or if you wish to engage in market development in this area please contact bhawrysh@bcwood.com.

Last week, BC Wood Specialties Group hosted the 9th annual Global Buyers Mission in Whistler, BC. Among the 19 international delegations that attended were timber importers from India looking to replace current wood sources with Canadian wood products. After attending the successful Global Buyers Mission, the India delegation visited BC value-added wood manufacturers as part of their extended mission. One of the companies they visited was International Forest Products (Interfor) Acorn Division in Delta, BC. The Acorn mill is an export sawmill dedicated to manufacturing high value squares and timbers that are used in housing and industrial applications across global markets.

Dave Hayer, MLA Surrey-Tynehead, opened the event on Tuesday at Interfor by welcoming the India delegation to BC. He stated that one of the goals of BC’s Job Plan is opening up markets abroad for BC goods. “Helping companies like Interfor make connections with new companies overseas is one of BC Jobs Plan initiatives that we have been focused on.” Mike De Jong, Minister of Finance, took the podium on behalf of Premier Christy Clark and Minister Pat Bell to further explain the BC Job Plan strategy and outcome.

Following the opening speeches, the India delegation attended two seminars, went on a tour of the mill, and learned about grading standards at Interfor. The seminars, delivered by John Leahy from Canadian Mill Services, dealt with the phyto-sanitary rules for sending forest products from Canada to India and BC’s tree species and wood products. The mill tour lead the delegation through the mill, letting them observe how a log is remanufactured into a timber product. Lastly, the delegation was shown the different types of wood species Interfor remanufactures at their plant and how they are graded.

By Daryl Holmes

Over 1400 exhibitors were present at this year’s show, which continues to grow in size and attendance.  This show is a one-stop shop for anything and everything related to the sustainable construction and green building industry.  The timber zone was much larger than last year indicating that the profile of timber use in construction is becoming more and more prominent in this marketplace.  Many countries local to this market boasted large pavilions showcasing their products.  BC manufacturers were represented in collaboration with a combined Canadian Pavilion which featured companies from all across Canada.

The following information summarizes the show and my market observations as they pertain to the value added wood industry beginning with the core feedback that directly impacts you the member.

Where do the sales prospects lie?

The timber zone at the show was visited by a wide spectrum of key industry members including architects, designers, developers, planners, and builders.  Our display focused on showcasing Engineered Wood Products, Log Home and Timber Frame structures, PreBuilt Housing, and Remanufactured Products.  While these products were of primary interest to the attendees who visited us, I also received interest in high-end millwork and high-end furniture products.  Yes, distribution of some BC products is already mature and well established in the UK;  however, it was interesting to speak with a number of industry professionals who were interested in dealing direct with the manufacturer to develop project based relationships and partnerships.

Attendees from all across the UK, Ireland, and Europe were present at the show and in particular geographic areas like Eastern Europe, the Emirates, and Middle East were well represented. I spoke to a number of project managers and resort developers who were interested in making contact with Canadian companies to discuss upcoming construction plans.  On the local UK scene there remains an appetite for wood products and due to the focus of the show, there is no surprise that timber and timber products lead the pack as the first choice in construction. In this market, building industry professionals and consumers alike extol the virtues of Timber.  The viewpoint in the UK is:  Timber Products = Natural, Traditional, Sustainable, and Climate Friendly.

How do I access these opportunities?

Gaining access to these opportunities is not easy and by no means a short-term outcome.  The key to having your products and services gain profile in this competitive marketplace is to invest in a market strategy that puts you and your products in the path of these key decision makers and sales opportunities. Resources in today’s marketplace are scarce and it is difficult for local BC manufacturers to reach every offshore market. However, there are cost effective solutions that enable you to maximize your financial resources.  By participating in BC Wood programs, you will be able to gain first hand access and engagement in this marketplace.  For those of you not able to travel to the market, the most crucial component of your market access strategy is to secure local representation on the ground in this market. Whether you choose to hire a local representative or to partner with your peers, the engagement of a local industry professional is essential to getting your products exposure to the key people in Europe. Based upon the feedback and results from this show, I cannot emphasize enough how important this is. Relying on your website, word of mouth, and repeat sales alone will not enable you to expand your scope of sales opportunities in this large geographic market.

Does EcoBuild Deliver?

Attendance at trade shows is a much talked about subject amongst you and your peers. As an industry member for many years I have attended many shows of which some have been well worthwhile and others, well, let’s just say they have not lived up to the hype of the show organizers. To assist you in your efforts to make well informed decisions on how to plan your marketing strategy, I offer some feedback on this show.

The show’s reputation as a signature event on the trade exhibition calendar was evident as we hosted visitors at the booth from all over Europe.  London is a huge hub for development, design, and project planning.  Along with qualified contacts from all over the UK and Ireland, attendees from France, Germany, Norway, Estonia, Ukraine, Belgium, The Netherlands, Latvia, Austria, Finland, Spain, and Italy showed interest in products from BC’s value-added manufacturers.  As mentioned earlier, we spoke to professionals from UAE, Eastern Europe, and Middle East as well. We were busy at the show, the aisles were full and those whom we spoke to were predominantly qualified contacts.  My goal at each show is to access the gate keepers and decision makers. These individuals were at this show and were not just kicking tires.

A bonus of this show is the fact it is a 3 day event which allows you, the member, to conduct pre and post show meetings and site visits with prospective clients, and only be away from home for 7 days.  Would this be a show I would recommend?  Yes. With the right amount of planning, industry partnership, and pre-show engagement in this market, you would gain valuable business to business sales opportunities; enough for sure, to gain a return on your investment.

Upcoming events in the Europe market include TurkeyBuild (May 2-6), Holzhaus, Moscow (Nov 9-13), and BAU, Germany (Jan 17-20, 2012).  For more information, contact BC Wood or email me at dh@themataigroup.com

Recently the BC Wood Japan office welcomed some special guests to Japan: BC Minister of Forests, Lands and Natural Resource Operations Steve Thompson and the Federal Minister of Natural Resources Joe Oliver. Working with our Canada Wood partners in Japan we arranged visits for Minister Thompson to see a large concrete building using over 1000m3 of wood in finishing applications, a large importer of WRC products, a senior’s home being built in 2×4, a pre-cut plant using hem-fir, the Tokyo Lumber Terminal, two temporary housing projects that were built with Canadian materials, and Sendai Port. Minister Oliver was also able to join some of these stops while also taking part in a customer appreciation dinner in Sendai for companies operating in the earthquake affected region.

The main event for the combined Ministerial Mission was a joint press conference in Tokyo to announce $4.5 million in funding to construct wood framed buildings in the tsunami devastated region of Tohoku as a part of Canada’s earthquake relief efforts. As the location of the project and the type of facility to be built has yet to be decided, we took Minister Thompson to the coastal towns of Onagawa (90% destroyed) and Minami-Sanrikucho (95% destroyed). Meeting with the mayors and other officials the Minister was able to learn about the magnitude of the tsunami as well as scale of the human tragedy. One story that will be hard to forget was about how the Mayor of Minami-Sanrikucho and 9 colleagues survived by hanging on to a steel fence on the roof as the tsunami crashed over and submerged them.  Sadly the other 50 workers at city hall were not as lucky and perished in the deadly wave.

Town officials were overjoyed by the news of Canada’s proposed donation and were quick to suggest ideas on the types of buildings that are needed. The Minister was also told that all of the homeless survivors were now in temporary housing units so the next major issue for this area is to rebuild their industries/economies. Until there are local employment opportunities, people will not be able to return to normal daily life. This is an important point that we will have to keep in mind as we review possible projects to be built with the Canadian donation.

Talking with both companies in Tohoku and other parts of Japan recently, it seems that the reconstruction efforts in the north are creating a shortage of carpenters across the country. The scarcity of workers and resulting higher labour costs are leading builders to look at importing wall panels as a part of house packages. The same phenomenon was seen after the Kobe earthquake with Japanese companies importing large numbers of house packages as well as North American carpenters.

As reconstruction is picking up speed, the BC Wood Japan office is now beginning to focus on the March Nikkei Show with this unique situation in mind. That show will give members a great opportunity to get involved with reconstruction projects and also benefit from the overall strength of the Japanese housing market.

By Daryl Holmes

BC Wood recently led a group of members on a market development mission to Turkey which included participation at TurkeyBuild in the capital city of Ankara.  Product sectors represented included Log Home and Timber frame, Prebuilt Housing, and Remanufactured Lumber Products.

In the Turkish construction materials sector, wood products have approximately 20% market share with consumption mainly in private up-scale villas and some high end commercial resort style development. The consumption of wood in major residential housing projects and light commercial projects is low when compared to concrete and steel (for structure) or PVC (for windows/doors), however, as with most markets in the Eastern European area, the demand for wood is on the rise.  Both private and public sectors in Turkey are engaged in a shift (albeit a slow shift) towards a growth in the use of wood products.  Industry professionals and consumers alike have a keen interest in wood as a construction material, as was evident during the show in Ankara. The earthquake in 1999 has drawn attention to the importance of timber in construction, however; with the economic impact of the global meltdown, progress has been slow in the area of conveying the attributes of wood and educating key decision makers as to the benefits of using wood in construction.  There is without a doubt, an increase in construction taking place right now in Turkey as residents look to build homes on the outskirts of some of the major cities. Accordingly, a select group of builders, developers, and importers are currently involved in projects outside of the main city centres which are being built with wood. During our stay in Turkey, we were able to make contact with many of these industry professionals and discuss opportunities for BC products.

The show itself was very busy, which in the current global market place was encouraging for the members.  Although the Ankara show is a more of a regional show (with the main construction show being held in Istanbul in May), it drew attendees from all over Turkey and some surrounding countries.  Numerous Architects, Engineers, Builders and Designers engaged in discussions with the BC exhibitors.  The outcome of those interactions predominantly showcased the demand and desire for wood, while also highlighting the lack of distribution of products within the Turkish marketplace.  In a jointly hosted event with the Turkish Timber Association, members were also able to showcase their products to key importers and building materials distributors located in and around the construction hub of Istanbul. Response from these professionals was again encouraging, as products including Western Red Cedar, Prebuilt Housing, and Log Homes proved to be of high interest for regions all across Turkey, including the coastal regions of the Black Sea.

Where do the sales prospects lie?

A clear demand for wood products exists within the Turkish marketplace.  Much of the wood imported into Turkey is from surrounding markets of Russia, Ukraine, and Scandinavia. The key to accessing this demand for BC companies is securing partnership with local wood importers and distributors of other building materials.  This process will take some time and investment by BC Wood members and this show in Ankara was a positive step in the right direction.  Turkish building professionals are starved of opportunity to partner with Canadian companies and they are motivated to establish relationships with producers of high quality wood products. As with all new and emerging markets, finding the right partner is crucial in gaining market penetration.  Turkey’s current growth is expected to continue well into the next ten years and those members who continue to put time and effort into the Turkey market will be rewarded with sales and long term partnerships.

What is the market looking for?

WRC Lumber, WRC Shake and Shingles, Hand Crafted Log Homes, MDF, Plywood, Yellow Cedar, Hemlock, Douglas Fir, and Prebuilt Homes.

How do I access these opportunities?

BC Wood will distribute the show leads via the online Wood Supply Network. For more detailed market information contact dh@themataigroup.com

“A game changing approach is needed in the wood products sector, targeting at least a modest but meaningful penetration of the market, if India is to be a priority market for Canada’s wood sector. Based on the successful strategies adopted by New Zealand…Canada should target efforts around securing opportunities representing close to 0.4 million tonnes of sawn wood, which would still represent only 4.5 percent of the market demand,” Opportunities for Canadian Forest Products in India – Ace Global Consulting LLP, August 2011.

Over the past year or so, much has been made of the emerging opportunities for BC’s forest products in India. BC Wood continues to monitor current market conditions in India and qualify the market intelligence that is being developed. BC’s Forestry Innovation and Investment (FII) has also been active in the Indian market by first commissioning a market study and most recently sending their own staff to India to confirm the results of that study. FII is following up these initial efforts by coordinating an Industry mission to India in four weeks’ time.

The three day mission led by FII representatives is expected to visit Mumbai and the port of Kandla, the center of the timber market in India. The Industry delegation will meet with timber importers and end-users in order to gain a better understanding of the product requirements of the market and the existing distribution channels. For a copy of the recent report on market potential in India, “Opportunities for Canadian Forest Products in India” by Ace Global Consulting LLP or the itinerary for the up-coming mission, contact Brian Hawrysh at 604-882-7100 or by email at bhawrysh@bcwood.com.

BC Wood is organizing participation at 28th MBC Construction Expo at the SETEC convention centre in Seoul, Korea from January 27-30, 2012. This building and construction show will have over 350 exhibitors and an expected 150,000 attendees. These attendees will include builders, architects, home owners, distributors, and construction material importers. This trade event offers an excellent opportunity for BC Wood members to tap into the Korean market. Members that would benefit from this event include manufacturers and suppliers of remanufactured lumber products, prebuilt homes, kitchen cabinets, log home and timber frame homes, and engineered wood products.

With a deep rooted history and affinity for building with wood, South Korea remains an important export market for British Columbia’s value-added wood products. In 2010, South Korea represented British Columbia’s fifth largest offshore market with 278,000 m³ of wood product exports. South Korea has experienced strong economic growth and recovery, in light of the recent global downturns, with growing affluence and continuously improving living standards. Korea is far from the labour intensive economy it once was and is now a global leader in design and technological trends. Korean consumers are growing more sophisticated and are looking into higher quality imported products that are environmentally compliant.

For more information about the show, please contact David Pao at  dpao@bcwood.com

A few thoughts, observations, and ideas that may be of interest to industry.

With the end of summer quickly approaching, the BC Wood trade show season for the US market begins. October is an extremely busy, with 3 trade events taking place during the month. First up is the AIA Pacific in Honolulu, Hawaii, followed by the AIA Mountain States in Keystone, Colorado, finally ending with the Sunbelt Builders Show in Austin, Texas. Outside of the 4 time zone changes, I should at the least pick up a decent amount of air miles.

I have discussed the various strengths and opportunities I see in each one of these markets in past issues of the Wood Connections newsletter, but suffice it to say, I think the potential for BC manufacturers to develop market share in these states is good. Our program is designed to use the trade event as a platform to connect with key buyers and decision makers in the region. We then follow-up the trade show with a mission component, including individual meetings directly with these buyers at their offices, or on site touring their construction projects.

It is last minute and the Hawaii event is all but sold out; however, there are still limited opportunities for members to participate in the Colorado and Austin events. If you are interested or want more information, please contact me ASAP. Also, if you are unable to participate directly, but would like to get leads and have your promotional materials delivered first hand to these buyers, send me an email to further discuss. There is a nominal charge, but it provides manufacturers with a way to test the waters in these markets with a minimal investment.

As always, if you have any further comments, questions, or need more information on the US market, please feel free to contact me at dfarley@bcwood.com

The Global Buyers Mission is just around the corner and is expected to be a tremendous opportunity for BC Wood members to connect with customers from the Asian markets. By now, companies exhibiting should have the complete list of buyers that are registered and attending next week’s event. Currently, we are expecting over 38 buyers from China looking to meet with Canadian companies.

Members that are looking to connect specifically with a Chinese buyer that they are interested in are encouraged to connect with Mr. Jeff Li, BC Wood’s in-market rep in Shanghai at li@canadawood.cn . If members have any questions about the Chinese market and BC Wood program activities, please contact David Pao at dpao@bcwood.com

Brian Hawrysh

“High quality, specialty lumber and building materials such as WRC decking, siding and roofing, Log/Timberframe and prefabricated house packages will be of interest to the Turkish lumber importers, architects and builders.”

Through the ups and downs of market conditions in Europe over the past few years, a number of East European markets have displayed relatively strong economic performance. The majority of these good performers have been in Eastern Europe. Eastern Europe, without a doubt, was also hit hard by the global economic crisis, however, it has recovered at a much faster pace than the West with growth project of 3.9% in 2010 and 3.8% in 2011.  For this reason BC Wood will, this year, focus some increased attention on opportunities for specialty lumber and building materials in Turkey, Russia and the Ukraine.

The first of these East European tradeshows is the Turkeybuild tradeshow in Anakara, September 25-29^th. In 2011, Turkey is projected to post the highest growth rate of all East European countries in the coming year. Turkey has a long history and affinity of building with wood which gave way to a focus on concrete construction in the post WWII period. With a growing affluence, Turks are rediscovering their traditional preference of wood construction in higher-end residential and recreational home construction.

In Turkey, there is also an opportunity for BC manufacturers to supply earthquake resistant homes to both private and public clients. A proven feature of the pre-built packaged homes is their superior performance during a seismic event. Similar to the opportunities that developed in the aftermath of the Kobe earthquake, BC companies should be able to provide products and services to the Turkish marketplace that has new more stringent building standards for seismic performance of homes.

A second opportunity in Turkey exists for manufacturers of log and timber frame structures. The Turkish Ministry of Culture and Tourism recently announced a large-scale investment plan to develop the resort area of the Turkish Black Sea coast.  The plan consists of constructing modern resorts and lodges around the Turkish Black Sea ports, such as Trabzon and Samsun.  This large project is expected to be completed by 2024.  A number of companies in BC’s log home and timber frame sector have been approached recently by individuals from the region surrounding the Black Sea, with plans for the construction of these resorts.

Not far from the Turkish Black Sea resorts, the on-going development of the region surrounding Sochi for the 2014 Olympics is yet another opportunity for BC manufacturers.  Using the Olympics as a catalyst for economic development, the Russian government plans to transform the Sochi region into an all season world class resort. In addition to the construction of Olympic venues and infrastructure improvements, over 43,000 additional lodgings and hotel rooms are needed for tourists.

The Turkeybuild show provides exhibitors with a good opportunity to meet with 30,000 of Turkey’s  top design and building professionals. The fair takes place in Ankara, Turkeys second largest city and will mark its’ 24^th year. While the Turkeybuild show in Istanbul is slightly larger, Ankara’s importance as the capital city and its’ proximity to Turkey’s northern resort region along the Black Sea makes it’s a strategically better location for promoting BC’s wood construction expertise and specialty building products..

At Turkeybuild, exhibitors can showcase a full range of building materials and systems. High quality, specialty lumber and building materials such as WRC decking, siding and roofing and prefabricated house packages will be of interest to the Turkish lumber importers, architects and builders.

For the 2011 Turkeybuild, BC Wood will organize a display of member companies and other Canadian forest products associations. For more information regarding this event, BC Wood’s participation and costs please contact Brian Hawrysh at 604-882-7100 or by email at bhawrysh@bcwood.com.

Do you have customers you’d like to see at the GBM – perhaps good clients of yours that would also benefit by meeting other wood product suppliers? Let us know and we would be happy to send them an invitation, too. Qualified buyers get two nights accommodation, transfer from Vancouver/Whistler return and of course, the great meals and socials during the event…who wouldn’t want to come?!
Call or email me at the office (rwalker@bcwood.com , 604-882-7100)

BC Wood will be conducting a 3 day mission in conjunction with attendance at the Denver Log Home Show being held in October.  BC Wood will set up meetings with prospective buyers and developers in the Colorado and surrounding markets for attendees of the show.  For information please contact Daryl Holmes at BC Wood.