February 27, 2013
Wood Connections
Value-Added Wood Industry News

In This Issue
Forest Industry Launches Greenest Workforce Recruitment Campaign and Internship Contest
Outlook good for B.C.'s manufacturing, forestry sectors in 2013
Changes to allow six-storey wood construction under consideration for National Codes
Geo-Traceability Workshop Summary
Tradeshow Tips/Advice
Spotlight: Vancouver Urban Timberworks
Last opportunity to confirm your place at the Turkeybuild, Istanbul, - April 24-28th, 2013
Show Report: Buildex Vancouver - Feb 13-14, 2013
BC Wood at this year's BAU Show - Munich, Germany, January 14-19th, 2013
US Market Update
Japan Market Update: Japanese Housing Market Continues Strong Pace
Marketplace
Upcoming Events

Quick Links

SUBSCRIBE

Join Our Mailing List

Follow us on Twitter

Follow us on Twitter 

Missed previous Wood Connections issues? 

Our archive gives you access to any issue at any time.

Many of you suggested to offer a workshop on managing the "Hills and Valleys" in sales and cash flow. We will be offering this workshop by Neil Godin on March 28, 2013. Watch your inbox for an email with the registration form. We will also offer two more E-Commerce & Social Media workshops in Nanaimo on March 20 and Surrey on March 26. For more information or to register for these events, email rmann@bcwood.com.

If you have not been featured in our Spotlight section and would like to be, please email me at
rmann@bcwood.com or call 604-882-7100. You do not have to be a member of BC Wood, or any other association to participate and it is free of charge.

If you are using Microsoft Outlook to view this email, you may not be able to see all of the images, or the formatting might be a bit off. In this case you can view the webpage version of this email by clicking on the link at the top of this email "Having trouble viewing this email? Click here" or visit our Wood Connections archives and click on 'Wood Connections - February 27, 2013'

Read below for highlights from the past 2 weeks.  Also, feel free to send me news stories that you think our readers would be interested in. You can email them to me at rmann@bcwood.com
Industry News
Forest Industry Launches Greenest Workforce Recruitment Campaign and Internship Contest
Forest Products Association of Canada Press Release

The Forest Products Association of Canada (FPAC), with support from the Government of Canada, has launched TheGreenestWorkforce.ca, a resource tool that provides information on the dynamic direction of the industry and career opportunities on offer right across the country.
 
 The industry has also launched a competition to give eight promising students across Canada a paid Green Dream Internship that includes a four month paid summer placement at a forest products company, an iPad Mini and a chance to win $5000.
 
"The forest products sector is now a future oriented business that is brimming with opportunity.  It is now hiring and offering solid careers for those who care about their future, the environment and their quality of life," said David Lindsay, President and CEO of FPAC, speaking at PAPTAC's Annual Paper Week event held in Montreal.
 
Under Vision2020, FPAC has a set the goal of recruiting at least 60,000 or more workers by 2020 to meet the growing demand for such professions as millwrights, electricians, engineers, sales staff, truck drivers, foresters, chemists and many more.
 
"Our government's top priorities are job creation, economic growth and long-term prosperity, so it is imperative that we match the skills of Canadians, especially younger workers, with the needs of the employers," said the Honourable Diane Finley, Minister of Human Resources and Skills Development. "Through our partnership with the forestry industry, we are helping young Canadians to receive the skills and training needed to address skills shortages in the forestry sector and prepare them for future careers."
 
 "We invite Canadians to visit the Greenest Workforce website to see the exciting opportunities now available. We also want to encourage students to consider applying for the internships to receive job training, skills development, and real-world experience within our growing sector," says Lindsay.   

 The contest requires students to submit a short video explaining why they would be perfect for a Green Dream Internship. Applicants receiving the most votes for their video attempt will get on a short list for interviews for the paid summer positions.
 
The contest and voting period starts today and ends March 31, 2013. For more information, visit TheGreenestWorkforce.ca. You can find more information on FPAC's Vision2020 at: www.fpac.ca/index.php/en/vision2020/
 

 

Industry News
Outlook good for B.C.'s manufacturing, forestry sectors in 2013
Vancouver Sun - February 20, 2013

Conference Board of Canada outlook puts Vancouver near top of municipal economies

 

British Columbia's manufacturing and forestry industries should enjoy respectable growth in 2013, a new report from the Conference Board of Canada suggests. The board's annual Metropolitan Outlook suggests a revitalization of the province's shipbuilding industry should commence later this year as Vancouver Shipyard completes $200 million worth of infrastructure upgrades needed to accommodate an $8-billion contract to build seven new vessels for the Canadian Coast Guard. Work on two smaller vessels is expected to begin later this year.

 

"Right now it will be the construction (sector) that benefits," board economist Greg Sutherland said in an interview. "Then you will see it more in transportation and manufacturing, once the construction finishes."

 

The manufacturing sector will also benefit from a recovery in U.S. housing, the primary market for B.C. lumber. The board expects total manufacturing output to rise 3.6 per cent this year and 2.1 per cent in 2014.


Click here to read the entire article
Industry News
Changes to allow six-storey wood construction under consideration for National Codes
National Research Council Canada - February 20, 2013

  

The Canadian Commission on Building and Fire Codes (CCBFC) is taking a closer look at requirements in the 2010 National Building and Fire Codes of Canada that currently limit the height of wood buildings to no more than four storeys. The initiative was undertaken as a result of code change requests from the Province of British Columbia and the Canadian Wood Council asking that the current height limits for combustible construction be increased. Doing so would move the National Model Construction Codes towards harmonization with various code development initiatives and market access policies being established in jurisdictions across the country.

  

A joint task group encompassing several CCBFC standing committees was established in 2011, led by the Standing Committee on Fire Protection, to review current requirements and make recommendations. Four specific areas were examined: fire protection (building elements); emergency response (fire code requirements); building and plumbing services; and structural and earthquake design.


The task group determined that height and area limits for buildings constructed of combustible materials could safely be increased to six storeys by either introducing new and/or modifying various protective measures. These proposed changes would apply to residential and office-type buildings (Groups C and D occupancies, respectively, in the Codes). They would also include mixed-type occupancies where Group C and D buildings, depending on the top occupancy, may have office, residential, mercantile, assembly, low hazard or storage garage-type occupancies (Group D, C, E, A2, F2, F3 respectively) on the lower levels.
 

Click here to read the entire article  

Geo-Traceability Workshop Summary
Scott Buchholz 
 

This past week saw BC Wood and FPInnovations sponsor a well-received traceability workshop attended by a wide range of industry manufacturers and related Forestry based associations. The workshop broached the subject of the potential role of traceability systems, like ThisForest, as a marketing tool and as an addition or alternative to certification.

  

With consumers becoming increasingly interested in the origins and supply chains involved in a product, traceability systems are seen as an effective marketing tool, showcasing sustainable business practices and the heart of the company itself.  

 

Traceability represents this missing link between producer and consumer. The fishing and farming industries have already adopted traceability as a viable medium to this extent; it seems the Forestry sector is poised to adopt similar strategies given traceability's growing popularity, both in industry and consumer demand.

 

 

Why is this good for your business?

 

Traceability is beneficial to business, big or small, for a number of reasons. International pressures are seeking proof of legal harvesting. For producers, this can be demonstrated through traceability, which tracks the supply chain back to the forest of origin. In addition, a company showcasing responsible business practice has the potential for financial return via an increased referral rate due to improved online presence through participation with ThisForest.  

 

Traceability provides a bridge between company and consumer, whether B2B or B2C. It allows the consumer insight into the forest of origin where the wood was harvested, the story of the people behind the company, and something that can be shared between purchaser, family, and friends.

We all know word-of-mouth is the most effective tool in marketing. Studies show that people are more likely to purchase something that was recommended to them by a friend, than anything else. Traceability equips buyers with the tale behind the product and a more intimate relationship with that which was purchased. This motivates consumers to share the story of their purchase and proposes a greater likelihood of returning customers and referrals.  

 

ThisForest is currently in its initial stages of development with a number of trial companies experiencing overall positive results. The workshop this past week allowed for industry input on this burgeoning field of traceability in combination with online marketing and social media. This mechanism doubles as not only a way of showcasing responsible Forestry practices, but also as an effective marketing strategy that people can relate to and share with their inner circles.

It is digitized word-of-mouth.

 

For further information please visit www.thisforest.info or contact  Natalie@ecotrust.ca or myself at Sbuchholz@bcwood.com 

Tradeshow Tips/Advice
Targeted Pre-Show Marketing To Create Better Trade Show Leads
Skyline Tradeshow Tips - February 14, 2013

If you simply set up your trade show booth and collect business cards or scan badges of everybody coming by, you'll get a lot of leads, but they won't be very good leads.  Sure, you might get a hot prospect or two, but you'll burn through a lot of suspects along the way.  Can you afford to spend that time?

Worse yet, you'll miss those list-building attendees who never even made it to your part of the show floor.

 

The secret to generating higher-quality leads - as with any form of successful marketing - is to offer a highly relevant message to a highly targeted audience.

 

That starts with a creative message that compels your target audience to learn more about you.  Ask a provocative question, make a challenging statement or suggest a different reality.  But make sure to let your audience know that you understand their situation and have a solution that solves their problem.  Remember, however, your goal with pre-show marketing is to earn a spot on the attendee's must-see list. Nothing more.  It's not the time to share your company's history, list every feature, share prices or ask for the sale.


Click here to read the entire article
Spotlight: Vancouver Urban Timberworks 
Rumin Mann 

 

 

This week I had the opportunity to meet with a very interesting company; Vancouver Urban Timberworks. They specialize in producing products from hard and softwoods. What sets them apart is that their products are made from discarded trees around the local area.

 

In and around Metro Vancouver, there are hundredsof trees that are coming down for various reasons which could be quite costly for the individual or company to discard. Starting out in their North Vancouver driveway three years ago, Eric and Danny began retrieving these fallen trees free of charge. They then transformed these trees into unique wood products including large slabs, furniture, and other custom products.

 

 

One of their projects included producing a boardroom table made out of reclaimed and salvaged timber from the Squamish Valley in BC. After retrieving the tree, they reclaimed the usable timber, milled it into slabs, transported it in their biodiesel powered trucks, kiln dried it, CNC'd it flat, and finished the table. Click here to watch a quick video on the production of the table.

 

With the support of their community, they have moved their business out of the driveway and into a retail location that will soon house an exquisite showroom. They are steadily adding and upgrading their equipment and inventory to increase their capacity and meet a high demand.

 

For more information on Vancouver Urban Timberworks, visit their website: http://vancouverurbantimberworks.com and their facebook page: facebook.com/pages/Vancouver-Urban-Timberworks/245145348849853

Last opportunity to confirm your place at the Turkeybuild, Istanbul, - April 24-28th, 2013
Brian Hawrysh 

 

The deadline for confirming space at the upcoming Turkeybuild show in Istanbul is fast approaching. For any company, who has not done so already, wanting to participate in the Turkeybuild show within the BC Wood pavilion, please contact Brian Hawrysh at bhawrysh@bcwood.com or in the office at 604-882-7100 by Thursday, Feb 28th, 2013.

 

For a little more background on the Turkeybuild show...

 

Turkey remains one of the strongest of these regional economies within Europe. Turkey also 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 their growing affluence, Turks are rediscovering their traditional preference for wood construction, particularly, in higher-end residential and recreational home construction.

 

For these reasons, BC Wood decided to explore opportunities for BC's value-added sector in Turkey. Last May, four BC companies and BC Wood's representative attended the Turkeybuild show and reported that there was very strong interest shown in BC's products and services by the local timber and building materials distributors. The products generating the most interest were higher-end solid wood building products and interior finishing materials. Turkish companies showed a great deal of interest in partnering with Canadian companies that produce innovative, higher quality wood products.

 

During the period of April 24-28th, BC Wood will attend the Turkeybuild show in the country's economic centre, Istanbul. Last year, the Istanbul show drew over 110,000 visitors, many of them from the neighboring Eastern European and Islamic countries. 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, log and timber frame homes, and prefabricated house packages will be of interest to the Turkish lumber importers, architects, and builders.

 

 

Show Report: Buildex Vancouver - Feb 13-14, 2013
Scott Thompson  
 
BUILDEX Vancouver, one of Canada's largest tradeshow/conferences, welcomed over 13,000 design, construction, and real estate management professionals on February 13th and 14th to the Vancouver Convention Centre. Over 600 exhibitors and more than 50 educational seminars were presented to the interior design and architecture professions, property and real estate management, and the construction and renovation sectors.

 

BC Wood coordinated a centralized area for wood products manufacturers with 15 members joining us from the building and finished products sectors including Structurlam, Sitka Log Homes, Pacific Homes, Cedarland, SilvaPanel, Coulson Manufacturing, Woodtone, Masonite, Kettle River Timberworks, BC Timber Frame, Merit Kitchens, Brisco Manufacturing, Big Foot Log Homes, AWMAC, and Wideplank Flooring. Feedback to date has been very positive with respondents citing renewed optimism in demand for wood based building products.

 

We were very busy during the show as we met with over 40 architects, designers, and contractors; approximately 20 of which we knew and were afforded the opportunity of renewing relationships. The rest were new connections who we will invite to future BC Wood specifier related activities including the popular lunch & learn sessions.

 

We met with 12 international buyers looking for BC wood products. In each case, we requested they contact us with detail that we can pass on to our members. To date, 3 have done this.

 

We also met with companies that were both exhibitors and visitors to the show from the value-added wood industry that are not BC Wood members and used the opportunity to promote various association activities.

 

BC Wood plans to participate in the next Buildex show being held Feb 18th - 19th, 2014. For more information on this event, contact Scott Thompson at 604-882-7100.



Show Report: BC Wood at this year's BAU Show - Munich, Germany, January 14-19th, 2013
Brian Hawrysh 

 

In January, BC Wood participated with one of its member companies in the BAU fair in Munich, January 14th -19, 2013. While the turnout from BC Wood members was disappointing, the fair itself was probably the best show I have attended in two or three years. The BAU fair, held every two years, is the largest building materials trade event in Europe. Other shows, especially those in Asia, claim larger numbers; however, their numbers are pumped up based on the practice of allowing the general public access to the show. The BAU fair is a strictly trade-only event and this past event attracted over 240,000 visitors to the six day show.

 

The BAU fair has a strong international draw with over 60,000 of the attendees coming from countries outside Germany and the bordering Western European countries. This year saw strong contingents from Russia, Ukraine, Latvia, Estonia, Scandinavia, Turkey, Dubai, and other countries within the Middle East. The BAU fair lived up to its reputation as the "architects fair" with close to 50,000 attendees coming from architectural, planning and, design offices.

 

The size of the BAU fair is staggering with the 180,000 square meters of occupied exhibition space spread over 14 different exhibition halls that showcased the products and services of 2060 exhibitors. In total, 41 different countries were represented in the BAU exhibition halls. The halls were arranged by product categories. BC Wood was located in the "wood building systems" hall along with another 75-80 exhibitors. This arrangement works well as it tends to concentrate the buyers with a wood interest into two halls, ours and the one next door showcasing wood doors, windows, and flooring systems.

 

The traffic at the BC Wood booth was busy, many times a crowd two or three deep were in front or our booth waiting to talk to someone. This fact was a little astonishing considering that we did not have a display that was anywhere near as elaborate or as large as some of our neighbors. I think the fact that the Canadian flag was prominent and that we had a cross section from a cedar log home on display helped to pull the buyers in. People felt drawn to come into the booth to touch and smell the cedar. Many people did not even know the name of the species, but they did know that they liked it and the conversations started from there. I also think flying the "maple leaf" was important as our booth attracted a far higher proportion of attendees from outside of Germany. Almost 50% on the visitors to the BC Wood booth were from outside Germany. The vast majority of inquiries we responded to were related directly to Western Red Cedar and log home and timber frame projects. The market for these two product categories remains strong within Western Europe, but, particularly, in the new emerging markets of Central and Eastern Europe.

 

 

So, to say that I was impressed with the BAU fair and the level of interest that BC Wood received at the fair would be an understatement. I would urge BC Wood members manufacturing log, timber frame, pre-built homes, and any Western Red Cedar products to seriously consider participating in the BAU fair when it comes around again in January of 2015. For more background and some additional observation on the BAU fair, please do not hesitate to contact me at bhawrysh@bcwood.com.

US Market Update 
Dave Farley

 

A few comments and suggestions that may be of interest to industry...

 

 

The first few months of the calendar year proved to be extremely busy for the US program with our participation in the IBS show in Las Vegas which was immediately followed by the BIA Hawaii. While I admit there could be worse places to be in January than Vegas and Hawaii, having both events back to back provided a number of logistical and time challenges. The good news is that if you use these events as a barometer of market conditions in the US construction sector, then one could conclude that the market south of the border is finally getting better.

 

As discussed in the last edition of the Wood Connections, the IBS show has an impressive attendance, topping the 60,000 mark for the first time in five years. The same could be said for the Building Industry Hawaii (BIA Hawaii) trade event. While this regional event is small, interest and participation from the building community from across the Hawaiian Islands was strong. In fact, attendance at this years' show was 20% higher than last year and up 45% over the past three years. Builders and other buyers who came by the booths were optimistic that market conditions were on the upswing and many were starting projects in the residential and light commercial construction sectors.

 

The Hawaiian market continues to be a prime location for BC grown softwood species including Douglas Fir, Western Red Cedar (WRC), and Yellow Cedar. This was evidenced by a site visit to a new development on the Big Island of Hawaii. This project is a high-end residential development of 40 plus homes anchored by a private beach club and golf course. More impressive than the view was the use of WRC and Douglas Fir in the construction of the residences and commercial buildings. WRC is featured extensively in the project including WRC shingles in the roof, 12''clear board and baton exterior siding, and VG WRC interior panelling; the project was a showcase for the species. The architect specified WRC in part due to the unique colour and weather resistance properties of the wood. Where structural timbers were needed, Douglas Fir was specified and is prominently featured in the golf club house and beach club buildings. To view images, click here.

 

 

This project is expected to last for the next four to six years. There is an opportunity for BC Wood members to supply materials and finished products for this project. In fact, with improving market conditions being experienced across the US construction sector, there remains excellent potential for the BC Industry to develop and grow market share through participation in trade events such as IBS and BIA Hawaii.

 

For more information on these events or other opportunities in the US market, please feel free to contact me at dfarley@bcwood.com

Japan Market Update: Japanese Housing Market Continues Strong Pace 
Jim Ivanoff

 

The housing starts for 2012 are in and are better than what had been anticipated. Last year when the Japan Forest Journal surveyed 15 top home builders, the forecast for the year came in at 870,000. However, with starts rising 10% in December to total 75,944, the housing market for the year finished at an impressive 882,797 units. This was an increase of 5.8% over the previous year and also marked the third straight year of growth after the market began to recover from the Lehman Shock.

 

Demonstrating the soundness of this recovery, growth across all housing sectors continues to be seen. According to MLIT statistics, custom homes increased by 9.2%, rental units by 11.2%, and spec homes by 9.8%. Looking at the numbers by the type of wood construction method, we see that zairai grew by 6.3% to 31,840, 2x4 by 10.5% to 10,258, and wood pre-fab by 12.9% to 1,454.

 

Perhaps the best news for the Canadian lumber industry though was the fact that 2x4 starts were up 9.4% on the year-to-end at 107,487. This number is just shy of the record set in 2008, emphasizing the continuing strength and market penetration of the 2x4 system.

 

Going forward, high SPF prices and a weaker yen versus the dollar is creating some concerns. However, as all input prices in the Japanese construction industry are under pressure, this is not a problem unique to 2x4. In fact, wages of skilled labourers around Tokyo have jumped by as much as 40% due to the strong housing market combined with reconstruction work in Tohoku. The costs of materials such as concrete are even delaying reconstruction projects as budgets have been stretched.

 

Despite cost concerns, most of the industry people I have been speaking to since the beginning of the year are predicting a strong 2013. The major push continues to be the planned rise in the consumption tax in 2014, but favourable sentiment is now also being driven by the new Prime Minister's economic policies. A similar survey of the 15 major builders for 2013 resulted in a projection of 920,000 starts. With the current positive climate in Japan, it is quite likely that this forecast will also be easily surpassed.

 

 

Marketplace
In this section, you can post anything from a job postings (for employees looking for a job and employers), to machinery for sale/wanted, to a request for a particular type of wood or service. 

If you would like to include a posting in our Marketplace section, please email me at rmann@bcwood.com or call 604-882-7100 and ask for Rumin. 
Upcoming Events
March 5-8, 2013: Nikkei Architectural and Construction Materials Show, Tokyo, Japan

March 8-10, 2013: Home, Garden, and Remodeling Show, Anchorage, USA

March 9-10, 2013: BC Log Home, Timber Frame, & Country Living Show, Abbotsford, Canada

March 20, 2013: E-Commerce & Social Media Workshop, Nanaimo, BC

March 26, 2013: E-Commerce & Social Media Workshop, Surrey, BC

March 28, 2013: Game Changer: Reducing the 'Hills & Valleys', Surrey

April 1-May 13, 2013: Supply Chain Management (CAWP)

April 1-May 13, 2013: Sales and Marketing (CAWP)

April 24-28, 2013: Turkeybuild, Istanbul, Turkey

May 13-July 8, 2013: Production Planning (CAWP)

May 13-July 8, 2013: Green Marketing & Business Practices (CAWP)

For a list of all trade and industry events, please visit our
For more articles and industry news updates, please visit:
http://www.bcwood.com/news-updates/

If you have any questions, comments, suggestions, or feedback, feel free to email me at rmann@bcwood.com.


Sincerely,

 


Rumin Mann
BC Wood
BC Wood is a not-for-profit trade association that supports BC businesses that manufacture wood products. We are a voice for the industry, bringing innovative ideas to the table and insight into how we can strengthen BC's wood culture. We are leading the industry by creating a culture where wood is the first choice for all types of construction and design products.
 
For more information on BC Wood, visit our website: www.bcwood.com.