June 6, 2013
Wood Connections
Value-Added Wood Industry News

In This Issue
Going out on a limb for lumber stocks
Akhurst Machinery's 75 Anniversary Celebration Open House
Green Marketing & Business Practices Online Course
Tradeshow Tips/Advice
Specifier Program Update
Spotlight: Probyn Group
Only 8 Booth Spaces Left For The GBM Anniversary Event!
IDS West - September 19-22, 2013, Vancouver
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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.

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Read below for highlights from the past month.  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
Edmonton Journal - June 4, 2013

For investors who missed rally, a second chance to get aboard?    

Ticked off because you missed the big rally in lumber stocks that began in the spring of 2012?

 

Join the club. I missed the surge too, even though I wrote about the improving prospects for lumber back in November, when the sector was barely halfway through its explosive move up.

 

"Western Canada's forest products industry is back in gear, riding a rebound in the U.S. housing market and surging lumber prices," I gushed at the time.

 

"The turnaround is reflected in the shares of major producers like West Fraser Timber, International Forest Products, Western Forest Products and Ainsworth Lumber. All are up sharply."

 

Much to my surprise - and that of some industry analysts, who prematurely predicted an end to the rally at the end of 2012 - the run-up continued until spring. By the time it fizzled out in April, West Fraser's shares had doubled to nearly $93 apiece, Interfor's stock soared 140 per cent to $10.80, Canfor almost doubled to $22, and Ainsworth's stock more than tripled to $4.20.

 

Then, just as abruptly, the curtain came down. With China's economy (which now consumes a big chunk of Canada's lumber exports) slowing and producers restarting lumber mills from Texas to Western Canada, prices slammed into reverse. After gaining more than 40 per cent in 2012, lumber futures on the Chicago Mercantile Exchange (CME) slid by about 30 per cent, from a high of $407 US per thousand board feet in March to a low of just $277 last week.

 

That prompted analysts to slash their average price forecasts for 2013. The lumber experts at RBC and CIBC now see prices averaging between $350 and $360 per thousand board feet this year, roughly $20 below prior forecasts.

 

The good news? The correction in lumber prices (and lumber stocks) may already be over. Lumber futures on the CME gained for the third straight day Monday, closing at $310.50 per thousand board feet, a 12 per cent uptick from last week's lows.


Click here to read the entire article
Industry News
Akhurst Machinery's 75 Anniversary Celebration Open House 

We invite you to join us on June 11 & 12 at our 75th Anniversary Open House. Come see the latest in Woodworking Equipment and Technology and to celebrate this milestone!

 

Akhurst Machinery Limited was founded by William (W.A.) Akhurst in 1938. After World War II, Spud Akhurst joined his father in the company where the company grew to become the largest equipment distributor in Canada to the wood industry.  


FEATURING:
Omnitech is globally regonized as a leader in nested based CNC router solutions.

Come see why Akhurst has been recognized as their Dealer of the Year for 5 years running!

 


TIME & LOCATION:

 

June 11 & 12, 2013
9:00 AM - 4:30 PM

 

Akhurst Machinery Limited
1669 Foster's Way
Delta (Annacis Island), BC
V3M 6S7 (map to our location)
Tel: (604) 540.1430
Toll Free: (1.888.265.4826
Fax: (604) 540.1780
Email: van@akhurst.com


For more information, please contact us at 604.540.1430 or email us at van@akhurst.com

  

 Download Brochure
Industry News

You Asked for It!

Green Marketing & Business Practices Online Course

Jason Chiu

Based on strong demand from industry and past students, the Wood Manufacturing Council (WMC) along with the Centre for Advanced Wood Processing (CAWP) has developed an eight week online Green Marketing & Business Practices course to complement the suite of eight existing online courses in the Management Skills Training Program.  

 

The course is scheduled to start on June 10th, 2013

 

The new Green Marketing and Business Practices Course will cover a wide range of material, in an effort to address the overall topic of green marketing. The course will introduce students to key points from a maximum range of topics outlined in the course layout and provide additional reading material for those interested in specific areas. Most of this material will be available online in HTML format, with the remainder available as downloadable PDF documents.

 

After completing this module, you should be able to:

  • Define green marketing and sustainability
  • Evaluate current operations in terms of green performance (separate the wheat from the chaff), e.g., identify what is being done and what is easy to do
  • Incorporate green marketing strategies into your company's marketing plan
  • Develop a business case for green marketing for your company or for a specific project based on green market segmentation
  • Identify sources of environmental regulations including export regulations
  • Describe current trends and expected changes in green marketing
  • Produce ethical green claims and avoid "greenwashing" attacks

 

To learn more about the program, obtain specific information and/or to register for one of the courses, please contact:

 

Jason Chiu

Centre for Advanced Wood Processing

Tel: 604-822-0082

Email:  jason.chiu@ubc.ca or  cawp@cawp.ubc.ca 

Tradeshow Tips/Advice
 How to Design Great Trade Show Display Graphicss
Skyline Tradeshow Tips -May 15, 2013

Walk around your next trade show and you'll see a lot of great designs.  They look good, attract your attention, engage and tell a story.

You'll also see a lot of bad designs!  Too many pictures, confusing messages and, what does that say?  It's so small and there is so much text, I can't even read it!

 

When it's time to design your trade show display graphics, consider a few important points:

  • Who you are:  Obviously you want to be easily found in the show hall.  An effective way to accomplish this goal is by not only placing your logo & branding at the maximum height, but also repeating it in several different locations throughout the design.
  • What you do:  Great, your prospect has found your booth.  Now, can they quickly understand what your company does?  A tagline or short sentence should be near your logo, so that the attendee can relate who you are to what you do.
  • How you can help them:  Now that we understand you're the "Acme Anvil Company" and you make "The most durable, USA-made and reconfigurable anvils" in the world, it's time to explain why this is important and how it will add to their bottom line.  For example "Our anvils will increase your productivity by 37% and cut down-time by 1/3rd."  Short bullet-points are another effective way to share this message, but don't get too carried away.
Click here to read the entire article
Specifier Program Update

Roy Manion

  

I have 4 highlights from the Specifiers Program to discuss for this edition of Wood Connections:

 

Lunch & Learn (L&L) sessions to new firms

 

As mentioned in my previous article, many of our L&L sessions are with firms we have already met and are returning with sessions on specific products; many initiated by industry, which is great. As also mentioned, one of our goals is to have met at least once with every major architectural and designer firm in BC by the end of our current fiscal year - that is with those who want to see us. To that end, we have held L&L sessions with 3 new firms, introducing our industry and great products.

 

Vancouver Regional Construction Association (VRCA) Annual Conference

     

This is the association's second such conference and BC Wood used the opportunity to exhibit products from our industry and to network with VRCA members. The conference itself also included workshops for the contractors on a number of topics and a keynote speaker. As this is the VRCA's second conference, it is still very much in the growing stage. Nevertheless, it was a worthwhile event for us as we made several new contacts and are in the process of setting up lunch & learn sessions with some of them. Thanks to all who supplied product and displays for the BC Wood exhibit.

 

BC Wood / Live Edge Design Event Exploring the Use of Wood in West Coast Design (Thursday, June 6th)

       

This event is being held at the BC Showcase at Robson Square. The response has been so overwhelming that unfortunately, we have been unable to accommodate many of those who replied to our invitation. We will have an overflow group and will report further on this event in our next Wood Connections.

 

BC Wood / Unison Windows Seminar and Factory Tour on the Introduction of Wood Curtain Wall systems (Thursday June 14th)

    

This event also received a great response; actually it received the greatest response we have ever had for any single event to a point where we are scheduling additional sessions. This is an innovative product just being introduced into BC (and all of Canada) and obviously our architect community is extremely interested in it.

 

Congratulations to both Live Edge Designs and Unison Windows for organizing events that have caught the attention of their audiences. It is also gratifying that the Specifiers Program proved to be the perfect vehicle for connecting both of these companies with their target audiences, the specifier communities.

 

As always, if you have any questions about this article or wish more information on the Specifiers Program, please contact me by phone at BC Wood's office or e-mail me at rmanion@bcwood.com. 

Spotlight: Probyn Group
Rumin Mann


The Probyn Group was founded in 1969 by Ed Probyn. Ed has established the company as a leader in forestry management and one of the largest private operating businesses in the industry. From the day that Ed founded his company, the core strength of The Probyn Group has been the steadfast belief in remaining true to one's word, and a belief in fairness and honesty with everyone that business is conducted with. This philosophy is practiced from the top of the Probyn Group organization down to the many supporting management, operations and staff members working throughout all Probyn Group companies in Canada and the US. They are dedicated to establishing a partnership with their customers and being seen as a reliable resource.

 

The group includes Probyn Log, TMI Forest Products, AJ Forest Products, Probyn Export, Raintree Specialties, West Coast Moulding, and several other joint venture partnerships. Operations with manufacturing facilities producing over 225 million board feet of Western Red Cedar per annum are based in BC and Washington State. They are headquartered in New Westminster and employ 300 people. They trade over 1 million cubic meters of logs per year in BC, while practicing sustainable forest management. Probyn Group is also home to TLA President, Bill Markvoort, an asset to the Group and providing value to the BC Forest Industry.

 

The Probyn Group exports locally sourced Western Red Cedar and other softwoods worldwide. They were recently featured during the London Games with its Export division providing Western Red Cedar to the Velodrome. Probyn shipped 280 cubic meters of material for this project. "It was a privilege to represent the Province by providing Western Red Cedar to the Olympics. The games were a remarkable opportunity for the entire world to view our sustainable products and has been very exciting for our company" - Peter Fograscher, Probyn President, RPF, CA.

 

For more information, please visit www.probynlog.com. Their websites are in the process of a re-launch; stay tuned for more updates.

 

 

Only 8 Booth Spaces Left For The GBM Anniversary Event
Randi Walker

 

 

 

Only 8 Booth Spaces Left For The GBM Anniversary Event

 

 

We will be back at the beautiful Whistler Conference Centre for our 10th Anniversary GBM Celebration and have once again negotiated unbeatable hotel rates for you in Whistler Village.

 

You will not want to miss this opportunity to showcase your products to over 300 pre-qualified international buyers and North American Architects, Designers, Builders, Contractors, Developers & Engineers!

 

Proposed Program Schedule

 

Thursday - September 5th

  • BC Wood AGM; WRCLA Cedar Summit; Wood First Seminars; Exhibitor set-up
  • Evening Welcome Reception at the spectacular Roundhouse Lodge at the Peak of Whistler Mountain for all participants

Friday - September 6th

  • Breakfast with Opening Ceremony and Morning Networking / Tradeshow / Meetings
  • Afternoon WRCLA/EA Sponsored Golf Tournament; Architects (Wood First) in-booth presentations; or Whistler free time
  • Gala Evening Reception at the stunning Squamish Lil'wat Cultural Centre

Saturday - September 7th

  • Breakfast and Morning Networking/Tradeshow/Meetings

 

Exhibit space is now VERY limited and will be available on a first-come / first-served basis. If you haven't already registered, contact us for your online registration link at gbm@bcwood.com or call Randi at 604-882-7100.

 

IDS West - September 19-22, 2013, Vancouver
Scott Thompson
 

BC Wood will once again be ramping up its' presence at the Interior Design Show West (IDS West) this coming fall, September 19th-22nd, 2013 at the Vancouver Convention Centre. In an effort to bring more attention to the growing strength of wood design and manufacturing in BC, BC Wood has partnered with the show organizers of IDS West to create a high profile "Design BC" pavilion. The pavilion will showcase BC Wood members and their products, everything from custom furniture and architectural millwork, to design-inspired finished products such as kitchen cabinets, doors, flooring, and paneling. The objective will be to feature the individual companies, drawing more traffic to the centrally located space. BC Wood is currently working with the IDS West show organizers to develop promotional strategies that will highlight the companies participating in the "Design BC" pavilion and promote the strength of the growing design sector in BC.

 

The show attracts 31,000 attendees over 3� days. This includes 4,000 guests to the Opening Night Party, 7,000 designers, architects, buyers, builders/developers, and other industry professionals during trade day, and an additional 24,000 consumers interested in design.

 

Writers from The Vancouver Sun, Azure Magazine, Homes & Living, Western Living, Design Quarterly, House and Home Media, Georgia Straight, The Westender, Xtra West, the Globe & Mail, National Post, Global Television, City TV's Breakfast Television, and many other outlets, attend and cover the IDS West event.

 

A total of 1200 square feet of exhibition space has been set aside for the "Design BC" pavilion, with BC Wood covering a portion of the hard costs for this sector wide display. If you plan to participate in the IDS West show this year, please contact me to see how we can save you money and ensure you higher visibility through the "Design BC" pavilion. Call 604-882-7100 or email me at sthompson@bcwood.com  

 

IDSwest 2012 Recap 
IDSwest 2012 Recap
 
Buildex Calgary - November 5-6, 2013
Scott Thompson



BUILDEX Calgary is the largest regional event for the design, build, construction and management of real estate attended by over 4000 industry decision makers including:

  • Builders
  • Architects/designers
  • Contractors/renovators
  • Developers
  • Building managers/owners

BUILDEX is held each year at the BMO Centre at Stampede Park and features over 225 exhibiting companies and 30+ accredited educational seminars.

I wanted to let you know that as a BC Wood member 2013/14, you are eligible for cost savings at BUILDEX Calgary. BC Wood will also have a 10x10 space within the pavilion.  

 

Space is quite limited so please contact me as soon as possible for more info:

 

Scott Thompson

sthompson@bcwood.com or 604-882-7100 (office)

Japan Market Update - Japanese Government's Wood Points System
Jim Ivanoff

While Japan has long been a large and lucrative market for Canadian wood products, it is also a market in which we always have to be on the lookout for discriminatory trade policies. During the current fiscal year, Japan's Ministry of Agriculture, Forestry, and Fisheries (MAFF) has prepared a budget of approximately $400 million to promote the use of domestic wood in both new home starts as well as renovation work. There have been similar schemes in the past, but in order to maintain WTO compliance, those gave equal status to certified imported wood. This does not seem to be the case with the current proposal so far, but it is possible that some positions may be reversed as overseas pressure is being applied on MAFF to make changes. The program allows for subsidies of Y300,000 per home to the end-users, which means there is enough budget this year for over 100,000 starts under it.

 

Main Issues with the Current Draft of the Program:

  • Over 50% of the structural wood must be domestic
    • At present, there is no equivalency for certified wood from overseas. In theory though, the remaining 49% could be imported.
  • Any imported wood used must be certified and come from a "growing forest."
    • With the pine-beetle infestation, it will be questionable whether SPF will be viewed as coming from a "growing forest."
  • 2x4 Housing was not originally included under this program.
    • This has now been softened so that 2x4 is also recognized as an eligible system along with post and beam and log homes. However, there is very little domestic Japanese dimension lumber available so it is seen as impossible to clear the 50%+ requirement for domestic wood.

The size and intent of this program is scaring everyone involved with imported lumber in Japan. If successful, this scheme could lead to a significant increase in Japan's wood self-sufficiency. Having said that, even many post and beam companies using domestic wood believe that this system is unworkable in its current format. This is mainly due to the limited capacity of the domestic forest industry, so if MAFF does intend to build 100,000+ homes with this program, they will have to open it up to use imported wood as in the past.

 

Additionally, Japan is currently negotiating free trade agreements with both the EU and Canada while also taking part in the US led TPP talks. As a result, there is a lot of pressure from lumber supplying nations involved with these various talks and there is even talk of a WTO case being launched. It is quite possible that other Japanese ministries will also exert pressure on MAFF to make this program at the very least WTO compliant.

 

My personal opinion is that politicians are pushing this massive subsidy through this year as a final bone before Japan agrees to toughen conditions under the TPP that could cripple the domestic forest industry. Basically it is a big payout to keep the industry quite while the government negotiates the TPP. Japan wants free trade with the US for autos and other high-value sectors so something like forestry will likely be thrown under the bus to get it (pun intended). However, even if that is the logic behind this program, Canada must make some noise and fight against it as it has the potential to significantly harm our exports to Japan. BC Wood is in close consultations over this with our Canada Wood partners at COFI and the Canadian Embassy who together are taking the lead on this issue on behalf of the entire forest products industry.

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
June 11-13, 2013: Gas & Oil Expo, Calgary, AB

June 19-21, 2013: AIA National, Denver, USA

Sept 5-7, 2013: Global Buyers Mission, Whistler, BC

Sept 9-11, 2013: Multi-Family Housing Conference, Las Vegas, USA

Sept 19-22, 2013: IDS West, Vancouver, BC

Sept 27-29, 2013: Nikkei Reform Industry Fair, Tokyo, Japan

Sept 2013: China Exhibition on Housing Industry, Beijing, China

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.