a situational analysis of the advanced wood products manufacturing

A SITUATIONAL ANALYSIS OF THE

ADVANCED WOOD PRODUCTS

MANUFACTURING

INDUSTRY

A SITUATIONAL ANALYSIS OF THE

ADVANCED WOOD PRODUCTS

MANUFACTURING

INDUSTRY

0253 CoversEng.qxd 1/20/03 10:21 AM

Wood Manufacturing Council A Situational Analysis of the Advanced Wood Products Manufacturing Industry

A Situational Analysis of the Advanced Wood Products Manufacturing Industry


Table Of Contents

EXECUTIVE SUMMARY……………………………………………………………………….……..…1 ACKNOWLEDGEMENTS…………………………….………………………………………………….3

SECTION 1: INTRODUCTION.................................................................................................. 4 1.1 BACKGROUND TO A SITUATIONAL ANALYSIS OF THE ADVANCED WOOD PRODUCTS

MANUFACTURING INDUSTRY............................................................................................. 4 1.2 PURPOSE AND SCOPE OF A SITUATIONAL ANALYSIS OF THE ADVANCED WOOD PRODUCTS

MANUFACTURING INDUSTRY............................................................................................. 4 1.3 DEFINITION OF THE SECTOR............................................................................................. 5 1.4 METHODOLOGY............................................................................................................... 8

SECTION 2: CHARACTERISTICS OF THE SECTOR ........................................................... 11 2.1 BACKGROUND AND INTRODUCTION TO ADVANCED WOOD PRODUCTS MANUFACTURING

SECTOR........................................................................................................................ 11 2.2 MANUFACTURING SHIPMENTS, VALUE-ADDED FOR THE SECTOR ...................................... 13 2.3 RELATIVE SIZE OF SECTOR INDUSTRIES, REGIONAL VARIATION........................................ 16 2.4 LABOUR SIZE, SIZE OF FIRMS......................................................................................... 17 2.5 LABOUR COSTS............................................................................................................. 21 2.6 SECTOR MARKETS AND COMPETITIORS FOR THE SECTOR................................................ 25 2.7 OTHER SECTORAL CHARACTERISTICS ............................................................................ 32

SECTION 3: HUMAN RESOURCES AND TRAINING/DEVELOPMENT................................ 40 3.1 CURRENT STATE OF HUMAN RESOURCES....................................................................... 40 3.2 CURRENT EDUCATION AND TRAINING ............................................................................. 42 3.3 GAPS IN RESEARCH, EDUCATION AND TRAINING.............................................................. 46

SECTION 4: SURVEY RESULTS........................................................................................... 51 4.1 RESULTS FROM THE EMPLOYER AND STAKEHOLDER SURVEYS......................................... 51

SECTION 5: CONCLUSION................................................................................................... 55 5.1 SUMMARY OF ANALYSIS................................................................................................. 55 5.2 IDENTIFICATION OF RESEARCH GAPS............................................................................. 56

Appendix A. SIC and NAICS Codes…………………………………………………….……….…58 Appendix B. Post Secondary Programs………….………………………….…………………....68 Appendix C. Sector Associations and Initiatives……………………………………….……….88 Appendix D. Survey Instruments……………………………….………………...………….….....98 Appendix E. Case Study: The Centre for Advanced Wood Processing at UBC………….114 Appendix F. Bibliography………………………………………………………………..………...120


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EXECUTIVE SUMMARY A Situational Analysis of the Advanced Wood Products Manufacturing Industry is an examination of the major characteristics of the Canadian advanced wood products manufacturing sector, with special emphasis on human resources (HR) issues. The report presents the findings of a comprehensive review of the literature and statistics for the period 1990 to 2002, a survey of selected sector employers and stakeholders, contact with industry associations and a site visit to an education facility. The Canadian advanced wood products manufacturing sector is economically healthy, with growth in all its component industries. The sector employs over 94,000 workers, and is valued at of over $13 billion in terms of manufacturing shipments. While the implementation of the Free Trade Agreement, and the subsequent streamlining and consolidation that the sector was forced to undergo, saw many advanced wood manufacturing companies suffer in the early nineties, the sector has since rebounded. The Canadian sector is generally characterized by a large number of small- and medium-sized companies, low levels of training, and management that tends to concentrate on production rather than business strategy. There is a large degree of regional variation, demonstrated by the strength of the sector in Ontario and Quebec and its limited size in British Columbia and Atlantic Canada relative to wood resources. The main research findings demonstrated a general recognition of the key human resource issues the sector faces. Specifically, there are concerns that the sector is increasingly unable to find suitable staff for its available positions, and that future demands will see current staff unable to meet the requirements of changing technology and business practices. The industry recognizes that more must be done to attract, train and retain educated employees. Traditionally, companies could rely on plentiful wood resources, high tariffs, favorable exchange rates and low wages for financial success in Canada’s advanced wood products manufacturing sector. As a result of the often repetitive tasks involved in the sector’s manufacturing, it relied on largely uneducated workers, and offered low pay compared to other manufacturing sectors. Management was usually promoted vertically, and there was seen to be, overall, a limited sophistication in business practices, especially in the area of marketing and human resource development. These limitations have become more apparent as the sector has had to compete with the lower cost competition in the developing world (e.g. China, Indonesia, Malaysia, Latin America) and with the more design-conscious and capital-rich industries of Western Europe and the United States. The Canadian sector is facing increasing competition in both foreign and domestic markets from Asia, particularly China. Imports of Chinese advanced wood products to Canada increased by 17 times in the years 1992 to 2001. Other countries such as the United States and Germany share the challenge presented by Asian advanced wood products exports, which are increasingly of comparable quality to those manufactured in North America and Western Europe.


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Some of the specific human resource areas in need of improvement that were identified throughout the research include: � Staff limitations: It was felt that although sector staff training and education levels have

traditionally been low, innovations like CNC and CAD machinery, as well as fiercer competition from international and extra-sectoral companies have necessitated a higher education and training level for staff. While there are still many jobs that require a minimum of training and education, many more positions involve technological or marketing skills that are not in evidence in all companies. These staff requirements are challenging considering the relatively low levels of interest expressed in the sector by the public, and the low wages compared to the primary wood products and pulp and paper industries, and other manufacturing sectors such as the automobile industries.

� Limitations of Management: The limitations of management were felt to be a major weakness of the Canadian advanced wood products manufacturing sector. It was felt that management is focussed on day-to-day operations instead of on innovative strategies or human resource development. This was seen as largely the result of many managers having little formal training, and the result of the relatively small size of most firms in the sector. There appear to be few formal networks to support managerial innovations.

� Limitations of Marketing Knowledge: As a result of the limitations of management, marketing, research and development and business innovation have not been major priorities for the sector. Many of the firms were seen to be production-driven and not market-driven. As well, there was seen to be a reliance on exports to the United States, rather than on a variety of markets.

Increased globalization has intensified the need to have sufficient, and sufficiently knowledgeable, staff. This challenge is exacerbated by the low public image of wood manufacturing in Canada, which stakeholders felt was a significant human resource roadblock for the sector.


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ACKNOWLEDGEMENTS The Steering Committee for the Situational Analysis of the Advanced Wood Products Manufacturing Industry wishes to express its sincere appreciation to all organizations and individuals across Canada whose time and efforts over the course of this study have contributed to its success. This study was prepared by Malatest & Associates Ltd. under the direction of the Steering Committee comprised of Advanced Wood Products Manufacturing sector and federal government representatives. The analysis was funded by way of a cost shared contribution agreement between the Wood Manufacturing Council (WMC), representing the industry, and Human Resources Development Canada (HRDC). The role of HRDC is gratefully acknowledged, particularly the Human Resources Partnerships Directorate. This report would not have been possible without the participation of individuals who took the time to participate in interviews and share their insights. These individuals represent the various segments of the industry and their views are the essence of this study. It is for these people that the Steering Committee reserves its final thanks. Steering Committee Members: Richard Krysiak (Chair) Tradewood Windows and Doors, St. Catherines, ON Matthias Beckermann SieMatic Canada, Kitchener, ON Richard Krohn Palliser Furniture, Winnipeg, MB Mike McClements Conestoga College, Kitchener, ON Mark Shepherd Consultant, Vancouver, BC Eric Perreault HRDC, Ottawa, ON Jan Tremblay Industry Canada, Toronto, ON Richard Lipman Wood Manufacturing Council, Ottawa, ON


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SECTION 1: INTRODUCTION

1.1 Background to A Situational Analysis of the Advanced Wood Products

Manufacturing Industry A Situational Analysis of the Advanced Wood Products Manufacturing Industry is the product of an initiative by industry and government to research and guide the Canadian advanced wood products manufacturing industry. It is the first research initiative of the Wood Manufacturing Council. The Wood Manufacturing Council developed from a partnership between Human Resources Development Canada (HRDC), Industry Canada, the National Education Initiative for Furniture and Wood Products Industries (NEI), and other key industry members. The NEI was formed in 1994 to address human resource needs in the furniture and wood products industries, specifically the lack of Canadian-trained wood product engineers available to the industry. In 1996, in partnership with the governments of Canada and British Columbia and with Forest Renewal BC, the NEI helped to create the Centre for Advanced Wood Processing at the University of British Columbia. The NEI contributed to the Sector Council for Advanced Wood Products Manufacturing, a body established to become a national human resources sector council for the industry. This organization became the Wood Manufacturing Council (WMC) in 2002. 1.2 Purpose and Scope of A Situational Analysis of the Advanced Wood Products

Manufacturing Industry The purpose of A Situational Analysis of the Advanced Wood Products Manufacturing Industry was to identify, analyze and critically assess human resource and other industry information available for the advanced wood products sector since 1990. It also gathered information from industry employers and key stakeholders to identify human resource information and issues from selected primary sources. The report will outline the following sector capacities: � Introduction to the Sector;

� Sector Shipments and Value-Added Statistics;

� Relative Size of Sector Industries, Regional Variation;

� Labour Size, Size of Firms;

� Sector Labour Costs;

� Markets and Competitors; and

� Sector Characteristics. The report includes the findings from the statistical and literature reviews undertaken for the project; the findings of the employer and stakeholder surveys, and the university site visit.


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1.3 Definition of the Sector The Canadian advanced wood products manufacturing sector is highly fragmented. As such, it has not had the same level of organization as other manufacturing sectors. Within the literature reviewed for this project, there existed no uniformly accepted definition of the sector. The sector was defined, for the purposes of this report, primarily by the wood components of each of the industries of the Standard Industrial Classification (SIC) codes and North American Industry Classification System (NAICS) codes of Industry Canada listed below: SIC � SIC 2541 Prefabricated Wooden Buildings Industry

� SIC 2542 Wooden Kitchen Cabinet and Bathroom Vanity Industry

� SIC 2543 Wooden Door and Window Industry

� SIC 2549 Other Millwork Industries

� SIC 2611 Wooden Household Furniture Industry

� SIC 2612 Upholstered Household Furniture Industry

� SIC 2649 Other Office Furniture Industries

� SIC 2692 Hotel, Restaurant and Institutional Furniture and Fixture Industry

NAICS

� NAICS 321911 Wood Window and Door Manufacturing

� NAICS 321919 Other Millwork

� NAICS 337110 Wood Kitchen Cabinet and Counter Top Manufacturing

� NAICS 337121 Upholstered Household Furniture Manufacturing

� NAICS 337123 Other Wood Household Furniture Manufacturing

� NAICS 337127 Institutional Furniture Manufacturing

� NAICS 337213 Wood Office Furniture, including Custom Architectural Woodwork, Manufacturing

This report also includes data for the following NAICS codes, not originally defined for the purposes of the situational analysis. � NAICS 321992 Pre-fabricated wood building manufacturing

� NAICS 337215 Showcase, partition, shelving and locker manufacturing These two additional codes were deemed to fit the overall sector characteristics and represented important components for analysis. Throughout this report, statistical data for the overall sector based on NAICS codes include these two manufacturing industries. Appendix A outlines each of the SIC and NAICS codes listed above, and gives a comprehensive description of these industries.


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Issues Related to the Definition of the Sector A definition of the advanced wood products manufacturing sector is inherently problematic. Its title is susceptible to misunderstanding, since the word ‘advanced’ is open to interpretation. It is often referred to as “value-added wood manufacturing“, which also carries connotations. Dr. Bill Wilson has stated: “Not surprisingly, the term value-added often provokes a strong reaction from those involved in the production of primary products. Primary manufacturing also adds value.”1 The sector encompasses a wide range of product manufacturing which, from the point of view of the consumer, is not perceived as a characteristic group. It is defined more by similar production materials and processes than by common distribution, marketing or retailing practices. The perception is largely that, for research and coordination purposes, there are obvious groupings of industries that do not exactly fit the sector’s current definition: for example, wood or entirely metal furniture may be more readily linked than wood furniture and wood door production. The definition of the sector is further complicated by the fact that the term “wood” is increasingly “misleading” for the end product of much of its manufacturing. With many wood products incorporating chemicals, finishes, hardware, plastic, glass, leather, or metal components, the value of the end products is often less dependent on wood than on other materials. In some high-end products traditionally listed under the “wood” categories, the wood components, in value and in quantity, account for a minor portion of the product. Much of the literature collected for this report reviewed specific industries within the sector, or groupings of industries that incorporate other industries outside the sector. This is especially true of the furniture industries, which are the most widely documented of the sector’s industries. Relevant material on the furniture industry often did not always differentiate between office and home furnishings, or between wood furniture and furniture made from other materials. Wherever possible, the wood components of the industries have been separated for analysis. Statistical information from Statistics Canada and elsewhere has been more easily differentiated for the sector, although the level of available information was not always specific enough to capture the 6-digit code level. It should be noted that SIC and NAICS codes are often not capable of identifying industries that utilize significant wood inputs but are not making strictly wood products.2 Similarly, many of the SIC and NAICS codes include industries that are not primarily involved in the manufacture of wood products. For example, NAICS code 337127 (Institutional Furniture Manufacturing) includes furniture other than that made out of wood, such as metal stacking chairs. Statistics should be seen as reflective of overall indicators of the sector. Further issues were encountered when reviewing international literature, as many of the reports that address international sectors are not wholly consistent with this report’s sector definition, or use inconsistent methodologies.3 The sector is both statistically and practically difficult to define due to its wide scope and fragmentation. There are several reasons for this. First, the wide geographic distances 1 Wilson, Bill, 1999. The Globalization of Value-Added Wood Products. Forest Products Society Conference, Seattle, WA. 2 Cohen, David H., 1994. “Assessment of Market Opportunities for British Columbia Lumber in the California Furniture Industry,” Publications, Pacific Forest Service, Canada Forest Service. 3 Various, 1992. Wood Product Demand and the Environment. Forest Products Research Society, 87.


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between regions and between manufacturing centres have not been bridged through regular and coordinated contact. While communication has been undertaken between industry leaders and between stakeholders of training programs, the sector remains regionally-based. Initiatives and associations are largely based on regional or provincial issues. Post-secondary education capabilities have not traditionally been coordinated between regions. Workers, while especially transient in the lower-skilled positions, do not tend to relocate out of particular regions or provinces. While areas have promoted clustering of manufacturing to a limited degree, there is still a wide range of non-standardized products manufactured within diverse areas. Other global areas have more coordination within their sectors. In Europe, business is more clustered, and governments have supported clustering initiatives. This is easier in Europe, where countries are smaller and natural resources more limited. European companies also have longer histories of communication and cooperation, which has been especially effective recently in coordinating national sector marketing strategies (ie. recent attempts to promote German furniture to offset a market slowdown). US-Canada Industry Definition and Comparison The American and Canadian advanced wood products manufacturing sectors have very similar definitions. Prior to the introduction of the North American Industry Classification System (NAICS) in 1997, the Canadian Industry was described using the 1980 Standard Industrial Code (SIC), and the US industry using the 1987 US SIC. The concordance of these two systems with respect to the sector is demonstrated in the table below. As illustrated, there is some overlap within categories when comparing the systems, particularly in the Other Millwork and Wooden Household Furniture Canadian SIC divisions. The Canadian SIC code 2543 (Wooden Doors and Windows) is subsumed under the US SIC code 2413 (Millwork), thus making accurate comparisons of the two nations’ window and door industries difficult.

1987 US SIC 1980 CDN SIC

2426 Hardwood Dimension and Flooring Mills. 2549 Other Millwork

2431 Millwork 2543 Wooden Doors and Windows 2549 Other Millwork

2434 Wood Kitchen Cabinets 2542 Wooden Kitchen Cabinets and Bathroom Vanities

2452 Prefabricated Wood Buildings 2541 Prefabricated Wood Buildings 2511 Wood Household Furniture 2611 Wooden Household Furniture 2512 Upholstered Household Furniture 2612 Upholstered Household Furniture 2517 Wood TV and Radio Cabinets 2611 Wooden Household Furniture 2521 Wood Office Furniture 2649 Other Office Furniture 2531 Public Building and Related Furniture 2692 Hotel, Restaurant and Institutional Furniture and

Fixtures 2541 Wood Partitions and Fixtures 2549 Other Millwork

Source: US Department of Labor:.http://www.osha.gov/oshstats/sicser.html and Industry Canada http://strategis.ic.gc.ca/sc_indps/gci/engdoc/homepage.html


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1980 CDN SIC 1987 US SIC

2541 Prefabricated Wood Buildings 2452 Prefabricated Wood Buildings

2542 Wooden Kitchen Cabinets and Bathroom Vanities 2434 Wood Kitchen Cabinets

2543 Wooden Doors and Windows 2431 Millwork

2549 Other Millwork 2426 Hardwood Dimension and Flooring Mills. 2431 Millwork 2541 Wood Partitions and Fixtures

2611 Wooden Household Furniture 2511 Wood Household Furniture 2517 Wood TV and Radio Cabinets

2612 Upholstered Household Furniture 2512 Upholstered Household Furniture 2649 Other Office Furniture 2521 Wood Office Furniture

Source: US Department of Labor:.http://www.osha.gov/oshstats/sicser.html and Industry Canada http://strategis.ic.gc.ca/sc_indps/gci/engdoc/homepage.html 1.4 Methodology A Situational Analysis of the Advanced Wood Products Manufacturing Industry incorporated several methodologies to collect and interpret sector information. Detailed below are the specific steps and the project methodologies used. Literature Reviews Reviews were undertaken on all available, relevant industry literature from 1990 to 2002. Research staff conducted Internet, journal and article databases searches, and general library searches. Visits were made to the University of British Columbia, the University of Victoria, and inquiries and document requests were made of representatives of Forintek Canada Corp. and the Canadian Forest Service. Additional sources were identified by the Steering Committee. A copy of the literature reviews undertaken for the project is included in Appendix F of this report. Over 80 sources were catalogued. Some of the main web sites used for this report are included in the literature database. The literature review database contained the following fields: � Name of source;

� Author(s);

� Internet address;

� Year;

� Publisher;

� Scope of work (i.e. range of study, geographic or economic area studied);

� Research methodology;

� Key findings;

� Conclusions/recommendations;

� Assessment of source; and

� Relevance of source to project.


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Database of Post-Secondary Programs Profiles of the post-secondary institutions identified in the data collection/literature review were created and are included in Appendix B. These include the following information: � Program or initiative information (name, contact person, institution or body, address, etc.);

� Scope of program or initiative;

� Description of program or initiative; and Compilation of Industry Associations and Initiatives

A list and description of the principle associations and initiatives supporting the Canadian advanced wood products manufacturing sector were compiled and are included in Appendix C. Surveys Two surveys were developed in consultation with the Wood Manufacturing Council to collect information from employers and key stakeholders. Copies of the survey instruments are included in Appendix D. The Consultant created a employers survey sample list through the Internet and primary material research. Statistical data on industry shipments by province was used to create a roughly representative sample of employers across Canada. Stakeholders were identified from the NEI, major industry organizations and educational institutions. The samples were approved and added to by the Steering Committee. The sample included 163 names (110 employers and 53 stakeholders). A field test was conducted by initially mailing out 12 surveys, of which 4 were returned completed. No modifications to the surveys were suggested from the pretest. Surveys, cover letters and return envelopes were then mailed out to the entire sample of employers and key stakeholders in late March 2002. The cover letters contained the consultant’s toll-free fax and telephone numbers. Follow-up calls were made two weeks and three weeks following the initial mail-out. Responses for both surveys were as follows in Table 1-1.

Table 1-1

Final Survey Responses

Survey Response Employer Surveys Stakeholder Surveys

Completed Surveys 26 23.6% 25 52.1% Refusals 5 4.5% 1 2.1%

Non-Qualifiers* 5 4.5% 2 4.2% Other 74 67.3% 20 41.7%

Total Survey Sample 110 100.0% 48 100.0% *Non-qualifiers were respondents who indicated they were not involved in the advanced wood products industry, or who were no longer in business.


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Survey data is discussed in Section 4. Given the small size of the samples and the limited nature of the responses, the survey findings are discussed as indicative of overall trends, rather than as conclusive sector data. Consequently, they have been separated from the literature and statistical reviews outlined in Sections 2 and 3. Surveys of Sector Associations and Wood Manufacturing Council Committee Members A survey of Canadian sector associations was undertaken to achieve the following: 1. To obtain for review all relevant existing material available from the associations.

2. To determine if the associations are aware of relevant information from other sources that could be reviewed.

3. To collect information from the associations, particularly with respect to their initiatives or efforts in the area of HR for the advanced wood products manufacturing sector.

Of the 29 associations identified for contact, short interviews were undertaken with 24 (82.8%). In addition, nine of the 12 WMC Board members were successfully contacted by telephone for information regarding sector issues and information sources.


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SECTION 2: CHARACTERISTICS OF THE SECTOR

2.1 Background and Introduction to Advanced Wood Products Manufacturing Sector The advanced wood products manufacturing sector is entering a period of maturation, after undergoing significant change during the past two decades. Overall changes to the Canadian economy, the influence of environmental conditions and the coordination of education and research facilities have all impacted the sector. The sector has become more rationalized and export-oriented as a result of trade liberalization and favorable exchange rates. It has begun to identify its shortcomings and to improve on modernizing its processes and infrastructure in order to compete with more advanced or larger sectors, both within and outside Canada. All of these changes have impacted on the sector’s human resource, training and research and development (R&D) characteristics. While many of the overarching changes and trends are discussed throughout the report, several key historical events are identified in this section, as background and introduction to what follows. This section also looks at specific sector statistical characteristics. Rationalization Protectionist trade policies in Canada have, since the late 1980’s, given way to trade liberalization. The implementation of the Canada – U.S. Free Trade Agreement (FTA) in 1989 reduced tariffs which had, until then, encouraged the advanced wood products manufacturing sector to be more oriented toward domestic markets, and which had largely sheltered the sector from foreign competition. Historically, Most Favored Nation (MFN) tariffs were generally higher in Canada than in other industrialized countries, including the United States. The Canadian advanced wood products manufacturing industry had been protected by high tariffs (9% to 15%) relative to imports from the United States, the European Community and Japan (all of which had imposed tariffs of 2.5% to 7.5%). The elimination of tariffs following the FTA was originally to take nine years across the sector. Some Canadian furniture producers, especially those in Quebec, requested the accelerated elimination of tariffs and the initial transition period was changed from nine to six years. Between 1995 and 2000, Canada’s MFN tariffs were reduced by one third. Canada’s MFN tariffs on household furniture have already been reduced while those on office furniture will be gradually eliminated by 2004. The North American Free Trade Agreement (NAFTA) has not had as dramatic an effect on the sector as the FTA, and has been largely seen as the continuation of a process begun with the FTA. The trend towards liberal trade practices has been seen as having forced the sector to be more competitive, particularly in its marketing efforts. The sector has restructured to become


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more rationalized and there has been a significant re-orientation of marketing effort toward the US, to compensate for declining domestic demand. The restructuring that many of the sector’s firms were forced to undergo as a result of the FTA was exacerbated by the recession of the early 1990’s. As a result of these changes in economics and trade, in Canada and internationally, there has been a concentration of ownership in the sector in the last decade. Following the FTA in 1989, the number of firms in the furniture industry declined by half and employment numbers fell, as people were laid off or firms closed. Increasingly competitive trade practices have also resulted in the Canada-US Softwood Lumber Dispute, which will likely act as further encouragement to advanced wood product manufacturing development, as an alternative to softwood lumber exports to the US. In addition to industry rationalization, there has been increasing rationalization within the North American supply chain, which has been the dubbed disintermediation. This has involved the elimination of the step between the producer and the seller. The traditional two-step link of the retailer-wholesaler is being consolidated.4 The Rise of Asian Exports The most significant global phenomenon in the advanced wood products manufacturing sector and, in particular, the furniture manufacturing industries, is the rise in volume of Asian, and particularly Chinese, exports. Due to low labour costs and increased quality, Chinese furniture has become a strong competitor to the North American and European industries. Growth in Asian imports into Canada were largely due to leading furniture producers, importing complete lines of Chinese manufactured furniture, and selling them to Canadian consumers. Even those that did not outsource to Asian suppliers imported significant amounts of Asian components. Imports of Chinese advanced wood products to Canada increased by almost 17 times in the years 1992 to 2001. This challenge for Canadian manufacturers is shared by their American and German counterparts, who have all been forced to rethink profitability in light of lower cost imports from Asia. Exchange Rates The strength of sector exports has been assisted by the significant devaluation of the Canadian dollar relative to that of the US. This has created a positive environment for exports to the US, the world’s largest household furniture market. Environmental Changes Along with changes in trade practices and economics, the sector has been affected by changing perceptions about the environment and the use of natural resources. In the developed world, forest management has undergone attempts to meet the paradigm shift to sustainable development. This has meant that there is increased emphasis on the part of the public, government, and industry to ensure higher levels of ecological responsibility. The focus on forest management increasingly includes moving away from viewing forests as

4 Ernst & Young Consulting and Peter Woodbridge & Associates Ltd., 2000. Evolution of the North American Home Building Industry: An Opportunity for Value-Added Manufacturing Investment in BC. Forest Renewal BC.


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industry raw material supplies and resource locations, to considering the long- and short-term effects on the environment and encouraging more diversified uses of the forests. This has resulted in the reduction of annual allowable cuts, reduced wood supply in some areas and more managed forests.5 As the drive for ecological self-sufficiency continues, the sector faces the challenge of a less accessible lumber supply. This paradigm shift has also meant that stakeholders and the public are increasingly less tolerant of economic practices that do not maximize the use of Canadian resources. It has encouraged the development of the advanced wood products manufacturing sector, which is viewed as one of the more sustainable components of the forest products business. 2.2 Manufacturing Shipments, Value-Added for the Sector The following sections use different measurements and characteristics to provide a snapshot of the sector. They all use available statistics to chart the recent progression of the sector. Total manufacturing shipments per employee is a common measure of labour productivity used in industry analyses. For the Canadian advanced wood products manufacturing sector, total manufacturing shipments per employee increased from $81,777 in 1990 to $107,052 in 1998. While the recession of the early nineties saw shipments decline, economic recovery in the last half of the decade resulted in a marked increase of 31% over the eight-year period. Figure 2-1 demonstrates the overall growth in the years 1990 to 1998.

Figure 2-1

Total Manufacturing Shipments and Shipments per Employee for the Advanced Wood Products Manufacturing Industry based on SIC Codes, Canada

1990 – 1998

0

2

4

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1990 1991 1992 1993 1994 1995 1996 1997 1998

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Source: Industry Canada

5 Carrow, J. Rod, 1997. “Canada’s Quest for Forest Sustainability: Options, Obstacles and Opportunities,” The Forestry Chronicle, January-February 1997, Vol 73, No. 1.


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Figure 2-2 shows that total manufacturing shipments per employee in the US increased significantly from CDN $108,333 to $201,541 during the same time period, representing an 86% improvement. Although the overall trend for the industry in both countries during this period shows increasing labour productivity, the US experienced a relatively larger increase compared to Canada. This may be due to a higher skilled and more efficient workforce; easier access to more advanced capital equipment; or lower production costs due to lower wages and/or access to less expensive materials.

Figure 2-2

Total Manufacturing Shipments and Shipments per Employee for the Advanced Wood Products Manufacturing Industry based on SIC Codes, United States

1990 – 1998

2.2.1.1.1

0

2 0

4 0

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8 0

1 0 0

1 2 0

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M a n u fa c tu r in g S h ip m e n ts S h ip m e n ts p e r E m p lo y e e

Source: U.S. Department of Commerce & Industry Canada Another measure of labour productivity is value added per employee. Value added is defined as the net output as measured by the value of gross output (shipments) less the value of purchased commodity inputs used in production (i.e. labour and capital). It is the value added to a good by capital equipment and labour through the production process. Figures 2-3 and 2-4 demonstrate both the total manufacturing value-added and the value-added per employee for the sectors in Canada and the United States, respectively. For the Canadian advanced wood products manufacturing sector, value added per employee increased from $40,889 in 1990 to $50,519 in 1998, translating into a 24% increase, albeit mostly in the first half of the decade. For the United States, this measure of labour productivity increased from CDN $45,770 to $75,936, a 66% increase. It is again evident that the American advanced wood products manufacturing industry increased its labour productivity at a faster rate relative to Canada. In addition, from 1995 to 1998 labour productivity continually increased in the US, while the Canadian sector experienced stagnant growth.


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Figure 2-3 Manufacturing Value Added and Value Added per Employee for the Advanced Wood Products

Manufacturing Industry based on SIC Codes, Canada 1990 – 1998

0

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1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8

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Source: Industry Canada

Figure 2-4 Manufacturing Value Added and Value Added per Employee for the Advanced Wood Products

Manufacturing Industry based on SIC Codes, United States 1990 – 1998

0

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Source: U.S. Department of Commerce & Industry Canada


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2.3 Relative Size of Sector Industries, Regional Variation Figure 2-5 shows Ontario and Quebec account for the largest shares of the sector’s gross output. In 2000, manufacturing shipments from Ontario and Quebec totaled $7.6 billion and $4.1 billion respectively, with Ontario representing 54% and Quebec 30% of the total value of manufacturing shipments. During the same year, “office furniture (including fixtures) manufacturing” accounted for the majority of Ontario’s shipments at 55%. No one industry dominated the sector in Quebec, with “other wood household furniture manufacturing” making up the largest share at 22%.

Figure 2-5 Manufacturing Shipments for the Advanced Wood Products Manufacturing Industry

by Province* based on NAICS Codes – 2000

$26,567

$4,192,966

$235,666

$18,954

$715,626

$1,108,449

$8,146

$7,618,271

$83,711

Newfoundland and Labrador

Nova Scotia

New Brunswick

Quebec

Ontario

Manitoba

Saskatchewan

Alberta

British Columbia

Dollars x 1,000

* Excludes PEI data deemed secure/confidential by Statistics Canada. Source: Statistics Canada, CANSIM II Database, Table 304-0015


17

2.4 Labour Size, Size of Firms Number of Employees Figure 2-6 shows the sector’s employee breakdown is fairly evenly distributed across its component industries. “Other wood household furniture manufacturing” comprises the largest share, at 20% of the total employees, and “wood kitchen cabinets and countertop manufacturing “comprise the next highest share at 16%. In 1999, it was estimated that the sector employed 94,187 workers.

Figure 2-6 Employment Breakdown of the Advanced Wood Products Manufacturing Industry

by NAICS Code – 1999

Wood window and door manufacturing [321911]

11%

Other millwork [321919]13%

Prefabricated wood building manufacturing

[321992]4%

Wood kitchen cabinet and counter top

manufacturing [337110]16%

Upholstered household furniture manufacturing

[337121]9%

Other wood household furniture manufacturing

[337123]20%

Showcase, partition, shelving and locker

manufacturing [337215]10%Wood office furniture,

including custom architectural woodwork manufacturing [337213]

9%

Institutional furniture manufacturing [337127]

8%

Source: Statistics Canada, CANSIM II Database, Table 301-0003


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Table 2-7 and Figure 2-8 demonstrate the growth of the sector’s industries during the nineties, by employee numbers. While shipments and value-added are more indicative of production growth, the figures do demonstrate patterns of human resource growth. “Other wood household furniture manufacturing,” “Other millwork,” “Wood office furniture,” and “Wood kitchen cabinet and counter top” industries have all experienced significant growth in employee numbers, with growth rates of 56.6%, 51.9%, 51.7% and 49.0%, respectively. Lower growth was experienced in “Wood window and door manufacturing” (13.7%), “Institutional furniture manufacturing” (18.1%) and “Prefabricated wood building manufacturing” (15.6%). Although losses were experienced in 1995-1996 in “Wood window and door manufacturing,” by 1999 there were gains in employee numbers in all industries. Overall patterns suggest that the sector witnessed slight but steady growth in employee numbers across all industries between 1995 and 1999.

Table 2-7 Total Employees for the Advanced Wood Products Manufacturing Industry

1995 – 1999

NAICS Code 1995 1996 1997 1998 1999 % change 1995-1999

Wood window and door manufacturing [321911] 9,105 9,028 9,574 10,205 10,352 +13.7%

Other millwork [321919] 8,017 10,420 10,536 11,037 12,178 +51.9% Prefabricated wood building

manufacturing [321992] 3,068 3,175 3,636 3,601 3,548 +15.6%

Wood kitchen cabinet and counter top manufacturing [337110] 10,144 11,810 12,904 14,639 15,129 +49.0%

Upholstered household furniture manufacturing [337121] 5,995 6,203 6,949 7,266 8,093 +35.0%

Other wood household furniture manufacturing [337123] 12,302 13,307 14,883 17,436 19,260 +56.6%

Institutional furniture manufacturing [337127] 6,119 7,036 7,158 7,863 7,226 +18.1%

Wood office furniture, including custom architectural woodwork

manufacturing [337213] 5,863 6,089 7,355 8,985 8,894 +51.7%

Showcase, partition, shelving and locker manufacturing [337215] 6,940 6,966 8,501 9,482 9,507 +37.0%

Total 67,553 74,034 81,496 90,514 94,187 +39.4% Source: Statistics Canada, CANSIM II Database, Table 301-0003


19

Figure 2-8 Total Employees for the Advanced Wood Products Manufacturing Industry by NAICS Code

1990 – 1999

0

5,000

10,000

15,000

20,000

25,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Empl

oyee

s

Wood window and door manufacturing [321911]

Other millwork [321919]

Prefabricated wood building manufacturing [321992]

Wood kitchen cabinet and counter top manufacturing[337110]

Upholstered household furniture manufacturing[337121]

Other wood household furniture manufacturing[337123]

Institutional furniture manufacturing [337127]

Wood office furniture, including custom architecturalwoodwork manufacturing [337213]

Showcase, partition, shelving and lockermanufacturing [337215]

Source: Statistics Canada, CANSIM II Database, Table 301-0003 Size of firms Due to the relatively low capital investment required to establish some companies, and the relatively modest skill and expertise requirements, the sector is comprised of many small- and medium-sized firms, despite increased consolidation in the last decade. As a result of the predominance of small- and medium-sized firms, barriers to market entry are low. The sector is still predominantly Canadian-owned, and there exists a strong family ownership tradition. The reality that the sector is comprised of small companies means that it is not cost-efficient vis-à-vis its use of resources. These companies do not have the capital to build up large, longer-term inventories as compared to larger companies which purchase Iarger quantities at lower prices or take advantage of other economies of scale. In household furniture, the large Canadian firms are considered small relative to their international competitors: the largest US household furniture manufacturer produces as much as the entire Canadian industry.6 In the window and kitchen cabinet industries, among others, the largest Canadian plants continue to be dwarfed by international competitors. In the door, flooring and fencing industries, Canadian companies are comparable in size to their international counterparts.7 As a result of the relatively small size of sector firms, Canada is often seen to be at a competitive disadvantage to some international competitors. When companies remain small, 6 Industry Canada, 1996. Household Furniture: Part 1 Overview and Prospects, 14. 7 Industry, Science and Technology, Canada, 1992. Value-Added Wood Products: 1990-1991, 4.


20

investment in new technology, in marketing and in productivity and cost performance can suffer. While many small- and medium-sized companies characterize the Canadian advanced wood products industry, this does not, however, necessarily restrain growth in the sector. Germany and Austria are also dominated by small- and medium-sized companies, and have strong growth and earning potential.8 Regardless of the comparatively small size of the majority of firms, Canadian companies are able to respond to market needs. Niche markets are especially effective for smaller companies, such as climatically suitable building supplies, that result from Canadian experience with climate extremes. Cyclical demand in construction and renovation tends to result in high turnover rates in the industry, and frequently demonstrates weakness in the sector in the areas of over-capacity, excessive price competition and fluctuating price margins. Firm size in the sector fluctuates as a result of market forces, limiting the amount of human resource planning that can be exercised by smaller firms. Table 2-9 details the size of firms by industry in the sector. The percentage of total firms with fewer than 10 employees ranges from 33% for “Showcase, partition, shelving and locker manufacturing” to approximately 44% for “Wood kitchen cabinet and counter top manufacturing.” Sector-wide, only 2.2% and 0.8% of firms fall within the 100 to 199 and 200 to 499 employees categories, respectively. Only 0.2% of the total number of sector firms have more than 500 employees. A study of the size of firms in the BC value-added sector reported only nine companies had over 100 employees, compared with 75 companies that had six to ten employees.9

8 Forum Consulting Group, 1999. Jurisdictional Review: Policies and Incentives to Promote Investment in Secondary Wood Manufacturing. Forest Enterprises Branch, BC Ministry of Forests. 9 Forintek Canada Corp and Jim McWilliams, 1993. Structure and Significance of the Value-added Wood Products Industry in B.C., 8.


21

Table 2-9 Number of Firms by Employment Size Ranges for the Advanced Wood Products Manufacturing

Industry, Canada June 2001

Number of Firms by Employee Size

NAICS Code Total Indeterminate* 1-4 5-9 10-19 20-49 50-99 100-199 200-499 500 +

321911 - Wood Window and Door Manufacturing 645 182 163 89 72 72 32 22 12 1

321919 - Other Millwork 1,141 372 312 113 114 121 71 34 4 0 321992 - Prefabricated Wood

Building Manufacturing 310 112 73 38 32 31 17 7 0 0

337110 - Wood Kitchen Cabinet and Counter Top Manufacturing 1,697 593 586 164 159 109 55 22 6 3

337121 - Upholstered Household Furniture Manufacturing 359 115 85 38 34 38 22 15 11 1

337123 - Other Wood Household Furniture Manufacturing 2,913 1458 852 203 158 130 52 42 12 6

337127 - Institutional Furniture Manufacturing 614 225 187 51 51 50 26 15 9 0

337213 - Wood Office Furniture, including Custom Architectural

Woodwork, Manufacturing 346 92 87 36 44 40 20 15 9 3

337215 - Showcase, Partition, Shelving and Locker Manufacturing 531 143 124 51 69 71 50 15 7 1

Total 8,556 3,292 2,469 783 733 662 345 187 70 15 * Refers to establishments that do not maintain an employee payroll and as a result the Business Register are unable to calculate employment estimates. Source: Statistics Canada, Canadian Business Patterns CD-ROM

Company size has been an important factor influencing wages. Wages for skilled workers in large furniture companies (more than 100 workers) are between 20 and 40 percent higher than for skilled workers in small companies (10 workers or less).10 2.5 Labour Costs The industry is characterized by low-wage work. In 1996, the average hourly wage in the Canadian office furniture industry was $12.94, approximately 79% of the average manufacturing wage in Canada. Larger firms tended to pay more than smaller firms to attract the best workers.11 Table 2-10 demonstrates the salary range in the 1999 Canadian sector ranged from $25,614 in the “Upholstered household furniture manufacturing” to $32,371 in “Showcase, partition, shelving and locker manufacturing.” The average wage in the sector was $27,441 in 1995 and $28,722 in 1999. The “Other wood household furniture manufacturing,” industry experienced a significant increase (19%) in average salary during 1995-1999. The “Wood office furniture, including custom architectural woodwork manufacturing” and “Showcase, partition, shelving and locker manufacturing” saw declines of average wages in the sector, by 3.6% and 0.7%, respectively, over the period.

10 Aktrin Research Institute, 2001. Employment and Wages in the Canadian Furniture Industry. High Point: North Carolina, p.31. 11 International Trade Data Network, 2002. Profile of the Canadian Office Furniture Industry. http: //www.itdn.net/asbdc/reports/canfurn.pdf


22

Table 2-10

Average Salary per Employee for the Advanced Wood Manufacturing Industry in CDN Dollars

1995 – 1999

NAICS Code 1995 1996 1997 1998 1999 % change 1995-1999

Wood window and door manufacturing [321911] 28,771 29,444 28,936 28,130 29,000 +0.8%

Other millwork [321919] 28,031 25,667 28,912 27,328 28,594 +2.0% Prefabricated wood building

manufacturing [321992] 28,361 29,886 27,733 27,139 28,640 +1.0%

Wood kitchen cabinet and counter top manufacturing [337110] 26,973 26,659 27,177 27,721 28,868 +7.0%

Upholstered household furniture manufacturing [337121] 24,405 25,278 24,673 25,626 25,614 +5.0%

Other wood household furniture manufacturing [337123] 22,949 23,167 23,967 25,261 27,387 +19.3%

Institutional furniture manufacturing [337127] 28,660 27,889 27,829 27,067 30,170 +5.3%

Wood office furniture, including custom architectural woodwork manufacturing

[337213] 30,054 29,494 30,144 31,093 28,999 -3.6%

Showcase, partition, shelving and locker manufacturing [337215] 32,597 33,719 31,156 29,820 32,371 -0.7%

Sector Average* 27,441 27,268 27,573 27,552 28,722 +4.7% Source: Statistics Canada, CANSIM II Database, Table 301-0003 *Sector averages are weighted by number of employees in sub-sectors using figures in Table 2-7 Figure 2-11 demonstrates salary expenditures for the sector. The figure demonstrates the overall stagnation of employee growth in the mid-late nineties, followed by the rapid increases during the boom years of the late nineties. “Other wood household furniture manufacturing” saw the largest increases in the sector; “Prefabricated wood building” saw the slightest change, showing no growth for the period.


23

Figure 2-11 Total Salaries for the Advanced Wood Products Manufacturing Industry by NAICS

Code 1990 – 1999

0

100

200

300

400

500

600

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Mill

ions

of D

olla

rs

Wood window and doormanufacturing [321911]

Other millwork [321919]

Prefabricated wood buildingmanufacturing [321992]

Wood kitchen cabinet andcounter top manufacturing[337110]Upholstered household furnituremanufacturing [337121]

Other wood household furnituremanufacturing [337123]

Institutional furnituremanufacturing [337127]

Wood office furniture, includingcustom architectural woodworkmanufacturing [337213]Showcase, partition, shelving andlocker manufacturing [337215]

Source: Statistics Canada, CANSIM II Database, Table 301-0003 With relatively low sector profit margins, labour costs are seen as an important factor. In a study of Texas value-added wood producers’ opinions on the reasons for selecting particular manufacturing sites, the two factors most chosen were property taxes and labour costs. While this may only demonstrate a bias in choosing plant locations within Texas, it demonstrates that sector business strategies and investment are heavily influenced by non-resource related factors like labour costs.12 In general, as with other manufacturing sectors, international advanced wood products manufacturing has seen low labour costs result in higher rates of growth. However, other regions such as Austria and Germany, with comparatively high wages, have also seen strong growth. Table 2-12 compares wage and salary information for the sector by country. Canada and Italy pay its sector workers the highest average salary; Malaysia pays its workers the lowest. While labour costs are higher in Canada than in the US, this can be partly explained by the preponderance of firms in the Southern US, with generally lower rates of pay. There is less of a variance between plants in Canada and in the Northern US, particularly the Northwest.

12 Misheal, Judd H., Joanna Teitel and James E. Granskog, 1997. “Site Selection Factors for Texas Secondary Wood Producers.” Preparing for the 21st Century: Value Added Marketing for Value-Added Wood Products (Proceedings from the IUFRO & FPS Conferences, June 1997), Forest Products Society, USA.


24

Table 2-12 Wages & Salaries/Number of Employees for the Advanced Wood Products

Manufacturing Industry based on ISIC Codes, Selected Countries – 1985 & 1999

Wages & Salaries No. of (per employee in US$) Employees Country Manufacturing Activity

1985 1999 1985 1999 Wood Products, Except Furniture 18,990 30,157 100,000 108,000

Canada Furniture, Except Metal 13,858 23,607 52,000 63,000

Wood Products, Except Furniture 9,262 18,103 16,700 19,260 Austria Furniture, Except Metal 8,780 17,688 28,900 38,746

Wood Products, Except Furniture 10,019 24,459 35,525 27,426 Finland

Furniture, Except Metal 9,676 21,856 11,806 11,153

Wood Products, Except Furniture 7,943 27,392* 42,000 41,000 Italy Furniture, Except Metal 8,205 30,484* 72,000 89,000

Wood Products, Except Furniture 10,639 9,870 305,000 200,000 Japan


Wood Products, Except Furniture 2,557 2,816 54,300 118,773 Malaysia


Wood Products, Except Furniture 10,518 22,148 44,300 34,429 Sweden Furniture, Except Metal 9,988 20,626 11,800 10,994

Wood Products, Except Furniture 17,159 25,307 447,000 575,000 United States Furniture, Except Metal 15,461 24,287 423,000 499,000

Source: UNIDO Industrial Statistics * Data shown for year 1998 Table 2-13 shows the average salary per employee from other Canadian sectors. These sectors were selected for the sake of comparison with average salaries of the advanced wood products manufacturing sector. The research demonstrated that stakeholders believe the advanced wood products manufacturing sector was losing staff to a range of other industries, including the primary wood product industry and automotive manufacturing. All of the other sectors had considerably higher wages and salary averages than the $28,722 average for the advanced wood sector in 1999. Average wages and salaries were noticeably higher in “paper manufacturing,” “primary metal” and “transportation equipment manufacturing” (which includes automotive manufacturing). In addition, these comparison sectors, with the exception of “sawmills and wood preservation,” saw their average wage and salaries increasing at faster rates, overall, than nearly all of the industries in the advanced wood manufacturing sector.


25

Table 2-13

Average Salary per Employee in CDN Dollars – Other Sectors 1996-1999

Industry Sector 1996 1997 1998 1999 % change 1996-1999

Sawmills and wood preservation [3211]

40,248 40,851 39,916 39,395 -2.1%

Paper manufacturing [322] 49,979 50,603 50,553 54,099 +8.2%

Primary metal manufacturing [331]

49,933 51,359 52,153 53,153 +6.4%

Machinery manufacturing [333]

38,644 40,033 39,944 41,523 +7.5%

Computer and electronic product manufacturing [334]

39,485 40,765 43,765 44,159 +11.8%

Transportation equipment manufacturing [336]

45,385 47,197 47,881 50,190 +10.6%

Source: Statistics Canada, CANSIM Database, Table 301-0003 Wages and Working Conditions in the Furniture Sector As of the year 2000, the average furniture industry production employee received $16.40 per hour, compared with the $18.07 average of the Canadian manufacturer production worker in general.13 This represents a 9.2 percent gap. The variance is especially high in the hourly wages of the household furniture segment. There are wide variations in the hourly wages of workers within and between segments of the furniture industry. For those that are non-salaried in the Canadian furniture industries, wages are typically calculated and paid on a straight hourly basis. Some of the larger companies pay incentive or piecework rates for certain jobs. This is most often seen in areas less connected to the wood-related components of the industry, such as upholsterers. Working conditions in the Canadian furniture industry do not differ significantly from the conditions in other industries, nor are there significant differences noted among various furniture segments, according to a recent in-depth study of the Canadian furniture industry.14 Three weeks of vacation is standard for non-salaried workers. The standard workweek is five days and 38.6 hours. Overtime work has not been a significant part of the industry. 2.6 Sector Markets and Competitors Market Outlook World population is expected to double in the next half century, largely due to growth in the developing world. This will lead to increasing demand for advanced wood products, especially in Asia and Latin America. The United States is expected to remain the world’s largest market in the near future.

13 Aktrin Research Institute, 2001. Employment and Wages in the Canadian Furniture Industry. High Point: North Carolina, p.25. 14 Aktrin Research Institute, 2001. Employment and Wages in the Canadian Furniture Industry. High Point: North Carolina.


26

The market outlook for advanced wood products manufacturing is heavily contingent on factors outside the sector’s control. To a large degree, the sector is at the whim of consumer spending, which is itself reliant on numerous factors. In household furniture and cabinets, medium-term domestic demand is reliant on consumer disposable income and housing starts. In the US, consumers are increasingly interested in furniture from Asia. The percentage of imports from Asia rose during the period of 1997 to 2000 from 14 percent to 21 percent. Besides China and Taiwan, some of the leading Asian suppliers to Canada are Malaysia, Thailand and Indonesia. Canadian firms that are well-established in the American marketplace are increasingly competing with low-cost Asian furniture on the domestic market. While furniture of Asian origin is penetrating the lower market regions, especially in the ready-to-assemble segment, German and Italian products are present in the niche markets (upholstered and kitchen furniture), particularly in the large metropolitan market areas of Ontario and Quebec. Niche markets are expected to grow faster than the general furniture industry. These include furniture that meets the demands of the elderly and furniture geared toward home entertainment centres. Key consumer niche markets include high income earners and new immigrants. Most of Canada’s population growth continues to come from immigration, although immigrant tastes in furniture generally emulate mainstream Canadian tastes. In a 1999 review of 22 global jurisdictions that featured substantial secondary wood manufacturing,15 significant policy patterns in company and government practices related to the sector were seen to characterize areas with the highest sales growth rates. These included: � Outward, export-trade oriented;

� Focused on marketing;

� Entrepreneurial; and

� Non-subsidizing. In general, the study showed that a less coordinated approach in terms of attracting manufacturing investment was associated with lower rates of growth. Some of the areas of the world that have seen the highest growth in terms of their advanced wood products manufacturing sector have tended to see the growth of the sector within the broader context of the promotion of all areas of manufacturing. Within these areas, program resources have been pooled inter-sectorally and the sectors have worked together on developing marketing strategies and initiatives. International Markets and Competitors The increase in international trade in advanced wood products has been significant in the last decade. This change has been the result of several factors:16 � The development of new markets through increased consumption in various parts of the

globe; 15 Forum Consulting Group, 1999. Jurisdictional Review: Policies and Incentives to Promote Investment in Secondary Wood Manufacturing. Forest Enterprises Branch, BC Ministry of Forests, ii. 16 Desclos, Pierre-Marie, 2000. “Secondary Processed Wood Products Markets,” ECE/FAO Forest Products Annual Market Review 1999-2000, 72.


27

� Restructuring of manufacturing industries towards more out-sourcing;

� The differential of labour costs between developed and developing worlds;

� Increased infrastructure and investment in the developing world for advanced wood products manufacturing; and

� Improved transportation links and delivery methods. The United States The US had been seeing increased housing starts, but has suffered a slowdown in recent months. The US economy was considered to be flirting with recession prior to the September 11, 2001 attacks and the housing sector was losing momentum. Total new housing units in the US were 1,995,000 in 1999 but decreased to 1,732,000 in 2001. The US National Association of Home Builders predicts this will increase to 1,926,000 in 2003.17 Industry analysts expect the chances for a substantial rebound are good. Very low mortgage rates should spur further housing construction, and strong housing purchases will result in strong demand for furniture and other wood products. The slowdown in the travel and tourism industry could result in people being increasingly focused on home purchases, rather than travel.18 Still, the office furniture industry is susceptible to fluctuations in corporate America’s growth, and less growth is expected there than for household furniture. Wood household furniture is the largest segment of the US furniture industry, with manufacturing shipments valued at nearly US$8 billion. Upholstered furniture is the second largest at US $ 5.7 billion.19 Like the Canadian furniture industry, the US industry is fragmented, with no one dominant manufacturer. The US furniture market is increasingly dependent on imports, due to rising labour costs and taxation relative to foreign suppliers. The US wood household furniture trade deficit is expanding, according to U.S. Commerce, Federal Trade Division. The deficit was over two billion dollars in 2000. Most of the deficit came from wood furniture, which makes up about two-thirds of the trade imbalance. China is the fastest growing importer of wood household furniture to the US. Canadian wood furniture exports to the US have also soared, facilitated by the weak Canadian dollar. Growing imports from the Far East, especially China, have brought about the greatest recent changes to the American furniture industries. China is now the leading supplier of household furniture to the US, with an average increase in exports of 43% annually, during the period 1997 to 2000, with no obvious slowdown in sight.20 China is overtaking Canada in its share in some US export regions. Imports of Chinese bedroom furniture to the US were worth $360 million in 2000, over twice as much as the previous year. Capital expenditures in the advanced wood products manufacturing sector are small compared to other American industries. US capital expenditures on new equipment were 2.3% of the value of sector shipments. In the rubber manufacturing industry, they were 6.5%

17 Seiders, Dave F., 2001 “Housing Expert Projects Setbacks,” Wood & Wood Products October 2001, p75, p78. 18 Miller, Hannah, 2001. “Terrorist Attacks Sting Furniture Industry,” Wood & wood Products, October, 2001, pg 75, p79. 19 Cohen, David H., Derek Goudie and Bill Wilson. “Assessment of the Market Opportunities for British Columbia Lumber in the California Furniture Market.” Victoria: Publications: Pacific Forest Service, Canadian Forest Service. 20 CSIL, 2002. The Furniture Industry in the United States and Canada. Milan: Italy, 27.


28

of the value of shipments and in industrial chemicals they were 8.4%. Industries that spent more on capital expenditures tended to have more favorable trade balances.21 Prefabricated housing components for construction are increasingly needed, due to changing labour force demographics, specifically an older construction labour force that is more expensive to maintain. The design choices of the American furniture customer are traditionally conservative, and Americans are generally more concerned with price than design or customer service. China China has had an enormous impact recently on the global advanced wood manufacturing sector. This results from China’s increasing exports, which benefit from their low labour costs. In particular, China has exported large volumes of wooden bedroom furniture. China, the third largest importer to Canada after the US and Mexico, showed the fastest recent growth, recording average annual increases of 41 percent, with growth of 55 percent in 2000.22 In terms of general furniture imports, Asia (with China the main supplier) saw its share of total Canadian furniture imports increase from 14% in 1997 to 21% in 2000. Total Canadian imports of Chinese furniture rose from US $81.8 million in 1997 to a staggering US $230 million in the year 2000. The share of furniture imports from China rose from 5.7% to 11.2% of total imports to Canada during the period, largely at the expense of American imports, which dropped from 59.8% to 53.3%.23 Table 2-14 shows the total imports of Chinese advanced wood products during the years 1992 to 2001. Canada imported nearly 17 times more advanced wood products from China in 2001 as in 1992, with a total value of over $310 million.

Table 2-14 Canadian Dollar Value of Chinese Imports of Advanced Wood Products to Canada

1992-2001

Value of Chinese Imports of Advanced Wood Products

Value of Advanced Wood Products Imports – All Other

Countries

Total Imports of Advanced Wood Products to Canada

1992 18,588,354 1,184,105,408 1,202,693,762

1993 30,375,878 1,272,911,167 1,303,287,045

1994 37,722,476 1,393,160,589 1,430,883,065

1995 48,815,574 1,881,299,084 1,930,114,658

1996 57,183,249 1,808,651,794 1,865,835,043

1997 84,081,602 2,219,740,958 2,303,822,560

1998 103,065,055 2,680,979,409 2,784,044,464

1999 136,790,436 3,139,813,069 3,276,603,505

2000 212,563,636 3,401,312,273 3,613,875,909

2001 310,673,171 3,067,845,503 3,378,518,674

Total 1,039,859,431 22,049,819,254 23,089,678,685 Source: Industry Canada

21 Buehlmann, Urs, and Al Schuler, 2002 . Benchmarking the Furniture Industry: Can the U.S. be Competitive in Wood Furniture Manufacturing?. Forest Products Society. 22 CSIL, 2002. The Furniture Industry in the United States and Canada. Milan, Italy, II p.28. 23 CSIL, 2002. The Furniture Industry in the United States and Canada. Milan, Italy, II p. 33.


29

The increase in demand for wood products in China is staggering, particularly in light of the partial move away from concrete and steel, the traditional Chinese building materials. In the past four years, approximately 200,000 new hotels and restaurants have been constructed in China. The Shanghai region has been especially active. New legislation requires new construction projects to include interior finishes, like cabinets, flooring and mouldings. Contractors are buying these products in large volumes to match development needs. The growth of China’s burgeoning middle class is an emerging market for advanced wood products. The two largest areas of projected Chinese growth are in the areas of construction and furniture.24 Both the increasing demand and the limited nature of China’s wood products supply mean that increasing opportunities exists for Canadian wood products industries. Good economic growth has created a surge in construction of housing, hotels and commercial/office space, especially in larger centers with higher living standards. China’s furniture and interior products industries have been the subject of government policies focused on adding value to export products. China is a large potential market for almost all Canadian advanced wood product industries. Factors influencing Chinese demand for wood products are: � the country’s National Forest Protection Plan and wood supply reductions;

� accession of China to the World Trade Organization;

� increasing imports in China;

� population growth and a housing deficit;

� privatization by the government of 70% of housing in China;

� improved building standards;

� increased Chinese desire for Western-style single family residences;

� increasing per capita spending and household income; and,

� increasing housing starts and increasing floor space of new starts. The Asia-Pacific and China are significant future markets, since recent waves of immigrants from these areas can help to create vital links, especially for British Columbia, Ontario and Quebec. However, import barriers created by the Chinese government have made it difficult for foreigners to access the market. Recent research by Forintek is cautious of the overall likelihood of Canadian products being competitive in China.25 BC’s value-added wood products manufacturing industry has been proactive in seeking out new markets for value-added wood products and lumber in China. A Council of Forest Industries, (COFI) led BC delegation recently visited China to promote the wood frame industry. As a result of this and other initiatives, the Chinese government has allowed Canada to develop a stand-alone wood frame building code. Through the assistance of the federal and provincial governments, COFI will facilitate the development of codes and logistics to allow further industry penetration in the Chinese construction market. A joint training initiative will educate Chinese stakeholders in the use of wood construction techniques through the aid of the British Columbia Institute of Technology and the University of British Columbia. 24 Hammett, A. L. and Xiufang Sun, 1997. “China’s Wood Products Market: An Effort to Identify Opportunities for Value Addition". Preparing for the 21st Century: Value Added Marketing for Value-Added Wood Products (Proceedings from the IUFRO & FPS Conferences, June 1997), Forest Products Society, USA. 25 Gaston, Dr. Chris, 2001. China: Prospects for Increased Wood Products Demand: Exploring New Paths.


30

Italy The robust Italian furniture industry is in a period of decreased growth, following a relative boom period. Italy is the largest European furniture producer and an important hardwood consumer. Although a reduction in interest rates combined with modest inflation is helping to bolster Italy’s domestic furniture market, the sector is struggling to maintain its strong sales of the 1997-2000 period. The Italian furniture research company CSIL predicts that the Italian industry will grow by less than 2% in the year 2002, compared with 6.2% growth in the year 2000.26 Italy is a major importer of hardwoods from tropical and African countries and, increasingly, from Eastern Europe and Croatia. Italy is also Europe’s largest importer of veneer. Like other European countries, Italy is facing increased competition from other furniture suppliers. Imports are up, primarily from Romania, Switzerland and Austria. Unlike other countries, however, Italy has yet to face strong competition from Asian manufacturers in its domestic market. Increased competition in its export markets, however, puts Italy at a competitive disadvantage with low wage countries in Eastern Europe and Asia. To combat this trend, Italy’s furniture manufacturers are seeking partnerships for joint initiatives and are responding with increasing marketing efforts. Germany Germany has been a centre for excellence in the wood manufacturing sector through its development of a strong value-added manufacturing culture. This has been accomplished through private sector manufacturing investment and through public-private partnerships in knowledge-based support infrastructure. Germany is the second largest producer of European furniture after Italy. As an exporter, Germany ranks second after Italy, and first as an importer. However, since 1995, German furniture manufacturing has been largely viewed as suffering difficulties, particularly in the area of household furniture. It is perceived that the German industry has lost ground with the robust German automobile, tourist and entertainment sectors in the battle for consumer spending. As in other parts of the world, Germany has suffered from decreased consumer spending, partly due to decreased housing starts. The last nine months of 2001 saw 5,000 workers in the German furniture industry laid off, and more lay-offs are expected.27 The German furniture manufacturer’s association announced that the industry is expected to grow again later in 2002, however, and return to modest growth of 1% to 2% in 2003, after a decline of 1.5% in 2001.28 Germany is the IKEA company’s most important market, with 21% of the company’s sales in Germany. Ikea has become the largest furniture retailer in Germany. An identified weakness of the German furniture industry is the fact that it is, as in Canada, dominated by small- and medium-sized manufacturers. In the German sector, this has meant that it is unable to pass on increased production costs because of the dominance of purchasing cooperatives and retail chains such as Ikea Deutschland GmbH and Mobel Walther AG. In Germany, five purchasing cooperatives control at least 80% of manufacturing

26 “Italian Wood Market and Furniture Market Review,” Global Wood and Furniture Marketplace Online. www.globalwood.org, 2002. 27 “Challenges for Germany’s Furniture Industry,” German Brief, January 25, 2002, Volume 13, Issue No 2, Frankfurt F.A.Z. Institut, 2002. 28 Ibid.


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sales: Begors, Vme, Atlas, GfM and DMV. As a result, smaller brands are starting to seek relationships with other partners and cooperatives. Germany has traditionally had very high labour costs in comparison to other manufacturing countries. An increase in cost components meant that German furniture was increasingly expensive. A few, well-known companies are doing well, while the German sector’s smaller companies are facing tougher competition. As a result of shrinking profit margins in the advanced wood products manufacturing sector, many German manufacturers have relocated plants to Poland, Hungary and Russia to take advantage of cheaper wages and production costs. German manufacturers are less willing to relocate high-end furniture manufacturing to these countries, although increasingly, low-priced mass produced articles are being made in foreign plants. Vertical integration is seen as increasingly necessary in their furniture industry in order to improve profitability. China is a growing supplier of furniture to Germany, with an export growth rate of 66% in the year 2000 alone.29 The US remains a minor exporter to Germany. Imports from Poland and Asia are seen as threats to the German furniture sector, particularly as Asian furniture quality begins to approach German quality standards.

Despite recent concerns and competitive challenges in the German advanced wood products manufacturing industries, their sector, along with those of the Scandinavian countries, has been seen to benefit from a highly skilled workforce, a well-developed infrastructure of research & development, and innovative and professional business practices. In addition, raw material suppliers cater to the specifications of the secondary user who make up a majority of their sales; Canadian lumber producers concentrate on the residential building market.30 As well, manufacturing clusters have benefited European producers, as suppliers and markets have been able to search out clusters. Germany has long been a design leader in the advanced wood products sector, and its furniture industry is particularly design-conscious. This is a result of a sophisticated domestic market with traditionally very contemporary tastes in furniture, and of German traditions in leading design innovation. The German domestic furniture market has a preference for beech furniture. Germans spend more money per person on furniture than in any other country in the European Union, an average of Euro 428 a year.31 A highlight of the German furniture industry is its capacity to facilitate design innovation, particularly through its international furniture fair in Cologne. The Mobelmesse Cologne is the world’s leading international furniture fair, attracting over 1,400 suppliers from 46 countries.32 The Cologne fair is arguably the most important venue for the dissemination of contemporary trends in the global furniture industry, and is seen as an indicator of German consumer confidence and of the health of the German furniture industry. Germany’s pride in its furniture designs and tradition of high quality craftsmanship are being touted in increased joint and group marketing and advertising campaigns. As in Italy, the German sector has been forced to become more aggressive in selling itself to its traditional customers, and in fending off increasing competition. Many German furniture companies are spending more on advertising than ever before. One of the German furniture manufacturer

29 “Industry Overview: Home Furnishings,” www.corporateinformation.com/desector/Furniture, 2002. 30 Jaako Poyry Consulting, 2001. Assessment of the Status and Future Opportunities of Ontario’s Solid Wood Value-Added Sector. Prepared for the Ontario Living Legacy Trust. 31 Ibid. 32 “German Furniture Sector Focus,” www.globalwood.org, 2002.


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association’s goals is the development of a widespread joint advertising campaign to promote German furniture.33 Germany exports the majority (about 90%) of its furniture to other European countries. The leading customers for German furniture are, in order of importance, the Netherlands, Austria, Switzerland and Belgium.34 Products from the kitchen furniture industry are most frequently exported. German companies are extending their range of furniture exports to Asian countries, with exports to the region increasing by 25% in 2001 alone. Japan Japan represents a key international market for Canada’s advanced wood products manufacturing sector. It has had housing starts in excess of 1.5 million per year over many years in the last two decades, statistics that are comparable to the United States. This has resulted from the replacement of low-cost housing built following the Second World War. Of total housing starts, wooden houses make up roughly 50% of present construction, as compared to 80% in 1965.35 This demand has fuelled the prefabricated home manufacturing industry of BC. Still, much of the prefabricated housing that is currently in use in Japan is steel and concrete, which presents a challenge to the wooden prefabricated housing industry. Small wood components are, however, used in prefabricated steel houses. Average floor space is decreasing in new Japanese residential construction, and Japanese experts have predicted that, in general, construction will be more focussed on renovation and quality over quantity in the future36. Historically, Japan has been protected by non-tariff barriers such as labeling requirements, procurement policies and building codes. Many of these barriers have been eliminated in recent years, which has improved access to the Japanese market. 2.7 Other Sector Characteristics Inter-Sector Competition Increasingly, other sectors are seeking markets and customers that have traditionally belonged to wood products. Steel has been an especially strong competitor in these markets. While the environmental cost of other materials may be higher, it is felt that the advanced wood products manufacturing sector has not marketed wood as an environmentally sustainable resource, which has caused consumers to look for other products. Most wood products go into residential markets, but there are increasing signs that steel and other building materials will take market share from traditional wood use in residential construction.

33 “Challenges for Germany’s Furniture Industry,” German Brief, January 25, 2002, Volume 13, Issue No 2, Frankfurt F.A.Z. Institut, 2002. 34 “German Furniture Sector Focus,” www.globalwood.org, 2002. 35 Gaston, Christopher, 1997. An Analysis of the Japanese Demand for Wood Products by Type, Species and Source. Pacific Forestry Centre, Victoria, BC. 36 US Forest Products Industry, AF and PA Japan Office, 2001. Japan Market Overview.


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Quality and Environmental Certification In some areas of the world, forest certification has resulted from the need to develop frameworks to prove the sustainability of forest management. Finland, Sweden, Germany and Austria have all identified certification as a means to better market wood products, as have members of the ITTO (International Tropical Timber Organization). Certification has become a pre-condition to selling advanced wood products in certain markets. This is largely the case in Japan and Europe. One of the greatest barriers for market access for Canadian wood manufacturers is the high quality standards required by Japanese housing companies. Similarly, certified companies in Europe will look for certified suppliers in order to acquire quality raw materials for use in their production systems. Consequently, certified European suppliers will have a competitive advantage over uncertified suppliers. Malaysia has identified certification as one means to overcome resistance to their wood products in Germany and Austria.37 Several certification organizations are active in Finland, Norway, and Sweden. The UK has the highest number of companies registered to ISO-9000 of any country, both in terms of number and as a percentage of industry.38 In a recent study of ISO-9000 certification in Scandinavia, certified companies were asked to identify the main benefits39. These included improved motivation throughout the workforce, increased quality, less waste, better company image and fewer customer complaints. All certified companies studied said they would go through the process again. While ISO-9000 certification is becoming more popular, its proliferation is taking time due to slow changes in attitude towards certification. A New Zealand consumer study demonstrated that there is a high level of awareness and interest in environmental certification in that country40. Comparable results may be demonstrated for the Canadian consumers, as both countries have populations with historically high levels of concern for and awareness of the environment. The study found that a third-party certifier, linked to or operated by an environmental group, would be the most trusted certification body. Consumers have said that they would be willing to pay extra for this certification. Canada has made steps towards full quality/management certification in the sector. Launched in early 1999, the Wood Products Quality Council of Canada and its WOODMARK logo were designed to increase customer acceptance of high-quality Canadian wood products around the world. Agencies like Forintek have been working with codes and standards to ensure that, internationally, wood is accepted for a wide range of construction uses. Performance- and objectives-based standards provide a unique opportunity to facilitate the adoption of new criteria that can eliminate prejudices against wood.

37 Forum Consulting Group, 1999. Jurisdictional Review: Policies and Incentives to Promote Investment in Secondary Wood Manufacturing. Forest Enterprises Branch, BC Ministry of Forests, ii. 38 James S. Swanson and Dr. W. Wilson, 1994. ISO 9000 and Wood Products -International Case Studies of Manufacturers and Buyers Perspectives. 39 Birkeland, Dr. Rolf, 1994. “BC Forest Products Industry: Production, Markets Competition and Competitiveness: Status of ISO-9000 Accreditation in the Wood Products and Forestry Sectors in the Scandinavian Countries. Canada-BC Partnership Agreement on Forest Resource Development: FRDA II. 40 Bigsby, Hugh, Lucie K. Ozanne and Richard P. Vlosky, 1997. “New Zealand Consumers and the Environmental Certification of Forest Products.” Preparing for the 21st Century: Value-Added Marketing for Value-Added Wood Products.


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The Canadian General Standards Board (CGSB) has developed voluntary product standards for the office furniture industry and ensures that American and Canadian standards are compatible. A recent study found that in British Columbia, less than 40% of advanced wood product manufacturing companies surveyed had a formal quality control program in place or under development. Only 14.3% of companies surveyed were currently certified by an accredited and independent third-party quality assurance body. Approximately 40% of engineered wood producers were certified, but none of the cabinetry, furniture, mouldings or millwork producers were41. One-Stop Access The literature highlights the advantages of one-stop access for marketing, especially considering the small size of Canadian sector firms. Countries or regions that have coordinated a flexible approach to marketing have demonstrated stronger growth in advanced wood product sales. In Alabama, for example, the Forestry Commission spearheads marketing to investors through its TEAM program. In Texas and Wisconsin, coordinated marketing to investors has been undertaken by economic development agencies.42 Substitute Products Substitute products are increasingly replacing traditional wood products, and provide competition from both within and outside of traditional markets. Substitute products include engineered wood, laminated veneer products, and non-wood product substitutes like vinyl, steel, and cement. Dr. Bill Wilson has identified several advantages of engineered wood:

Engineered wood products offer an improved processing fit with the characteristics of emerging fibre flows, eliminate structural weak points (knots, etc.), provide dimension uniformity and product consistency, afford greater design latitude than solid wood products, consistency in moisture content, and increased efficiency in timber use.43

Rising timber costs in the 1990’s accelerated the growth of investment in alternatives to traditional solid wood products, and the global production of wooden I-beams, laminated veneer lumber, glulam and engineered panelboards increased throughout the last decade. Glulam horizontal beams are now widely used in Japan for residential construction. Forintek Canada has undertaken extensive R&D into production cost reductions by improving process efficiency, through its Composites Manufacturing program. Environmental Concerns Canada’s advanced wood products manufacturing industry faces pollution controls that are comparable to those in other developed countries, like the US and Western Europe. Manufacturers in Mexico and other countries, such as the Far East, face less stringent or no requirements and are able to offer a significant advantage in terms of cost/price ratios. 41 Kozak, Robert A and Thomas A. Maness, 2001. “Quality Assurance of Value-Added Wood Products in British Columbia,” Forest Products Journal, Volume 51, No. 6. 42 Forum Consulting Group, 1999. Jurisdictional Review: Policies and Incentives to Promote Investment in Secondary Wood Manufacturing. Forest Enterprises Branch, BC Ministry of Forests, ii. 43 Wilson, Bill, 1999. The Globalization of Value-Added Wood Products. Forest Products Society Conference, Seattle, WA, 6.


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Larger environmental considerations are not as important to this industry as they are to sectors like pulp and paper. Still, the industry took a number of corrective measures in the 1990’s to comply with evolving and increasingly strict federal, provincial and local regulations concerning clean air. Regulations pertaining to volatile organic compounds (VOCs) in solvents and paint coatings have had an impact on wooden household furniture manufacturers. Formaldehyde emissions from some materials used in furniture construction, notably particleboard, has been another issue. Environmental groups have long seen the development of advanced wood products manufacturing in Canada as beneficial for the forestry industry. Especially in BC, where environmental groups have been very active, the industry is perceived as a means to reduce or sustain current forest harvesting while increasing economic activity. The development of the advanced wood products industry is especially important in BC, which, as the province following the introduction of the Protected Lands Strategy, has committed itself to protecting 12% of its forests from harvesting. This figure is higher than the rest of Canada, the US or Sweden, and comes at a high cost in terms of wood supply44. Access to Wood The quantity and quality of advanced wood products offered to sector customers is directly related to its raw material supply. Studies in Atlantic Canada demonstrate that local suppliers are often unable to supply wood within a reasonable amount of time. This has resulted in about a quarter of Atlantic companies receiving the majority of their wood from outside the region. Internationally, policies that have secured fibre access for advanced wood products manufacturing have eased the problem of insufficient supply. Indonesia and Malaysia have increased the cost of export-oriented primary wood manufacturing to increase the wood supply to advanced wood products manufacturers. Countries have granted public land timber rights on the condition that fibre is provided to advanced wood products manufacturers, like British Columbia does through its Small Business Forest Enterprise Program. New Brunswick has a similar policy where a portion of all timber that is harvested is allocated to advanced wood product manufacturing. In Saskatchewan, forest companies that do not have a Forest Management Agreement are required to pay for all wood harvested, which has encouraged the industry to develop products of higher value.45 Technology The Canadian sector has encountered problems in raising capital for new technology, largely because of lower than standard profit margins in some advanced wood product manufacturing industries and because of the small size of the firms. To increase access to technology, a recent article encouraged the establishment of more common facilities for the advanced wood products manufacturing sector.46 Shared-use facilities would allow small businesses to use expensive equipment and to share ideas within

44 Wilson, Bill, and Sen Wang. Sustainable Forestry: the Policy Prescription in British Columbia. Dordrecht, the Netherlands: Kluwer Academic Publishers. 45 Forum Consulting Group, 1999. Jurisdictional Review: Policies and Incentives to Promote Investment in Secondary Wood Manufacturing. Forest Enterprises Branch, BC Ministry of Forests, ii. 46 Kozak, Roberta and Chris Hartridge. “Shared Facilities: A Model for Forest Dependent Communities in British Columbia.” The Forestry Chronicle, Volume 76, No. 1. P151-158.


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the sector. These facilities could be paid for through a joint user/government fund, and could include both basic and more advanced equipment like CNC machinery. Business services could also be offered through shared use facilities, such as information dissemination, business plan development, product development, and market research. Training in key areas of needed development could also be offered. Many of these ideas have been implemented at the Centre for Advanced Wood Processing at the University of British Columbia. The Wood Enterprise Centre, located in Quesnel, British Columbia also follows the shared use facility model and offers assistance to wood manufacturers in such areas as product development, prototyping, marketing, distribution and training. Many of the smaller companies do not have the resources for research and development, management development and marketing. This has inhibited sector growth. In some areas of the world, efforts have been made to link companies in the same sector to complement each other and to share resources and knowledge. This has been especially effective in North Carolina, Malaysia and Finland, where industrial parks or common areas have been established to allow for the effective use of common resources or infrastructure.47 Provinces Across Canada, the advanced wood products manufacturing sector varies considerably in its local characteristics. British Columbia Commodity products, especially lumber, dominate this province’s wood products industry, with the United States being the chief export market. The advanced wood products manufacturing sector has been actively promoted in the last 5 years, but remains a minor contributor to the economy, and is dominated by small- and medium-sized businesses. Cabinet and furniture production remains small. BC advanced wood product manufacturers still sell much of their product within the province. Market diversification is very limited for BC firms. Provincial assets for this sector include high quality fibre, low energy costs and an increasing training and research infrastructure. Areas of concern for the province’s advanced wood processing industries include wood supply, the high cost of labour, weak marketing and access to capital.48 Stakeholders in a recent survey ranked BC firms below-average in the use and adoption of new manufacturing techniques in the forest products sector (including advanced wood products).49 This was thought to result from low company profitability. Low profits were, in turn, seen to be the result of excess diversification of non-standardized products, small production and shipment volumes and the lack of savings through economies of scale in production. Consolidation of manufacturing outputs and the development of business clusters were recommended to ameliorate low profit performance. The report also argued that the BC commodity industry was “trapped in the commodity box,” particularly compared with other regions of the country.50

47 Forum Consulting Group, 1999. Jurisdictional Review: Policies and Incentives to Promote Investment in Secondary Wood Manufacturing. Forest Enterprises Branch, BC Ministry of Forests, ii 48 Wilson, Bill, et. al, 2001. Secondary Manufacturing in British Columbia: Structure, Significance and Trends. 49 Ernst and Young, 1998. Technology and the BC Forest Products Sector – Summary Document. Written for the Science Council of BC and the Forest Products Research Network Forum. 50 Ibid., p. 10.


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Alberta Alberta’s value-added wood products industry has grown very quickly recently, resulting from provincial economic diversification initiatives to attract industry investment and through its Heritage Fund. One of the characteristics of the Alberta industry is that once primary manufacturing activities become established, they seem to lead quickly to value-added wood product investment.51 Alberta has developed a fast growing forest sector, and could, with increased yields since the 1980’s, foster a growing advanced wood processing industry. In the period from 1986 to 1995, roundwood harvest volumes increased by over 50%. Most of the advanced wood products manufacturing industry in Alberta is in the areas of “Other millwork”, “Office furniture”, “Cabinetry”, and “Home furniture”. Most companies sell approximately 75% or more of their products within the province. The small size and small budgets of most Alberta companies have to date limited the growth in advanced wood product exports. Saskatchewan and Manitoba Manitoba has the highest percentage of its manufacturing industry devoted to furniture, at 8.25% of the provincial total.52 A 1998 study undertaken by Red River Community College sought to identify the future needs of wood processing companies for the five year period after 1998. It was estimated that 6,241 new employees were to be hired in the period, with the largest amount being hired by industry leaders Palliser Furniture and Loewen Windows. A large percentage of the staff were expected to retire. The greatest need of the respondent companies was for Assembly-Line Workers, followed by Wood Machinists, CNC Operators, Finishers and Cabinet Makers. While it was felt that training for most positions could be undertaken in-house, this was not the case for other positions. The study recommended that Manitoba develop, through consultation with public and industry, further post-secondary training for the sector.53 Ontario and Quebec Ontario and Quebec dominate the Canadian industry in size, partly due to their extensive cabinetry and millwork industries. A stronger tradition of manufacturing has helped the region, compared with the traditionally more resource based regions of Eastern and Western Canada. On an industry segment basis, Ontario and Quebec trade positions of dominance in certain areas of the furniture manufacturing sector, with Quebec dominating the wood household segment and Ontario dominating in upholstered furniture production. Ontario and Quebec account for 82 percent of all Canadian furniture production.54 In a recent study of Ontario’s solid wood value-added sector, Ontario ranked about mid-range in its indicators when compared to the rest of Canada, the US, Denmark and Germany. Ontario was ranked higher than the rest of Canada on a variety of indicators, such as management capability, skill level, clustering, and policy environment.

51 Ernst & Young Consulting and Peter Woodbridge & Associates LTd., 2000. Evolution of the North American Home Building Industry: An Opportunity for Value-Added Manufacturing Investment in BC. Forest Renewal BC. 52 Aktrin Research Institute, 2001. Employment and Wages in the Canadian Furniture Industry. High Point: North Carolina, p.12. 53 Koodoo, Aaron, 1998. Survey of Manitoba Wood Processing Companies. Winnipeg: Red River College. 54 CSIL, 2002. The Furniture Industry in the United States and Canada. Milan, Italy, ii, 13.


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Stakeholders felt that in Ontario, competition from steel and automotive firms hurt the sector’s ability to attract skilled labour. Wages are higher for entry-level and moderately-skilled positions in the auto and steel industries, and many choose these sectors because of the salary gap. Employment in Ontario’s value-added wood products sector totaled almost 37,000 in 1997, more than 50% higher than employment in the province’s value-added paper products (20,000) and almost three times that of primary wood products (13,600). Almost three-quarters of all products are exported (73.5%). Ontario’s ratio of value-added sales to commodity sales in the wood products sector is roughly 150%, well above levels in other Canadian provinces. Ontario’s energy costs are higher than those of other provinces.55 The province ranked well below European standards in management capabilities. Atlantic Canada Despite growth in Atlantic Canada’s value-added sector, a 1998 study by Atlantic Canada Opportunities Agency (ACOA) revealed that the region still lags behind the national level. The 1995 report concluded that although Atlantic Canada produces 10% of the national Annual Allowable Cut, it accounts for only 4% of the value-added wood products in Canada.56 The majority of advanced wood products manufacturing in the Atlantic Canada region uses hardwoods, though the majority of forests are softwood. ACOA has stated that further investigation into the manufacturing of softwood products should take place to maximize resource use. New exports markets could be developed for Atlantic Canada, but given the time and money required, this is difficult in the short-term. Co-operation between companies is seen as vital for the region. New, coordinated strategies need to be developed, as companies are especially small in Atlantic Canada. In 1995, for example, the average company in the furniture industry in Atlantic Canada only had 11 workers.57 In Atlantic Canada, half of the sector companies sell directly to retailers.58 A concern in Atlantic Canada is the number of regional training programs relative to the potential needs and growth of the advanced wood products manufacturing sector. While training programs are available in Nova Scotia and New Brunswick (primarily at the Nova Scotia Community College and the New Brunswick Community College’s Woodworking Centre of Excellence), there are none in Newfoundland and Labrador or Prince Edward Island.

55 Jaako Poyry Consulting, 2001. Assessment of the Status and Future Opportunities of Ontario’s Solid Wood Value-Added Sector. Prepared for the Ontario Living Legacy Trust. 56. ACOA, 2001. Value-Added Wood Products in Atlantic Canada – An Overview of Issues Affecting their Growth, 26. 57 ACOA, 1998. The Wood Industry in Atlantic Canada: A Focus on Value-Added. http://www.acoa.ca/e/library/reports/wood.pdf 58 ACOA, 2001. Value-Added Wood Products in Atlantic Canada – An Overview of Issues affecting their Growth. 41


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Unionization The Canadian manufacturing sector is experiencing a decrease in the level of unionization, especially when compared with other sectors. Over the last decade, the degree of unionization in Canadian manufacturing slipped from 41 percent to 25 percent. Consistent with this trend, newer plants are less unionized than older ones.59 Union membership is decreasing faster in the US than in Canada. The degree of unionization in the furniture industry is substantially lower than that of manufacturing overall, and has varied between 15 and 20 percent. The relatively low rate of coverage is explained by the high percentage of small- to medium-sized firms in the sector. Virtually all large furniture plants are unionized. In most cases, unions cover a whole plant. In rare cases, there is more than one union covering different trades in one operation. There are differences between unions in Quebec and those elsewhere in Canada. English-speaking Canada is dominated by a few large unions, many of American origin. In Quebec, while these larger unions exist, there are many smaller unions, sometimes covering only one plant. For the Canadian furniture industry as a whole, most unions are national. There are very few unions in Canada that are specifically dedicated to the furniture industry. Exceptions can be found in Quebec, where a number of unions are directly chartered and organized for a single furniture plant, like the Syndicat des travailleurs de meuble. Of all unions, the United Steelworkers of America has been the most successful in penetrating the wooden furniture industry. The four main unions representing furniture industry workers are the United Steelworkers of America, IWA Canada, United Brotherhood of Carpenters and Joiners of America, and the Centrale des Syndicats Democratique (CSD). These unions make up 75% of all furniture-related membership in Canada. About one quarter of Canada’s household furniture industry is unionized. The larger companies are more often unionized. Unionization levels in the United States are thought to be lower than in the Canadian sector, which has resulted in higher salaries in Canada. Unionization levels vary by industry: in the office furniture industry, only about 7% of the labour force belongs to unions.60 A recent survey of Canadian kitchen cabinet manufacturers suggests that over 90% of these companies are not unionized.61 Organized labour has promoted investment in advanced wood products manufacturing as a means to allow regional development, especially in areas with ever-decreasing employment in primary forestry. With a decrease in unionization levels, there has been less active union involvement in support of sector training, though some unions organize training at larger workplaces.

59 Aktrin Research Institute, 2001. Employment and Wages in the Canadian Furniture Industry. High Point: North Carolina 60 International Trade Data Network, 2002. Profile of the Canadian Office Furniture Industry. http: //www.itdn.net/asbdc/reports/canfurn.pdf 61 Results of the CKCA Survey on 1999 Wages and Benefits for Plant Employees. Canadian Kitchen Cabinet Association, 1999.


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SECTION 3: HUMAN RESOURCES AND TRAINING/DEVELOPMENT

3.1 Current State of Human Resources Human resource issues are a major concern for the advanced wood product manufacturing sector, and it is widely felt that further initiatives must be undertaken to ameliorate human resources practices and to improve recruiting and training. The sector is felt to be losing global competitiveness as a result of poorly trained staff and management, who have not fully realized the sector’s potential growth. The small scale of Canadian sector companies, and the cyclical nature of the industry, makes human resource development especially challenging. There is high staff turn-over and low levels of employee loyalty, particularly among younger workers. The small size of firms impacts greatly on human resource issues. Generally, smaller firms do not have the resources or the infrastructure for retraining and tend not to be unionized. Primarily due to the small size of companies, formal human resources practices, including performance reviews, have not been established to a large degree. The sector is seen to have less developed human resources practices than in manufacturing as a whole, which has partly resulted in a weaknesses in establishing methods to anticipate skill and training needs. The sector is characterized by a lack of formality in written training plans, employee performance evaluations, and other human resources infrastructure. The sector is also characterized by a lack of uniformity in specialized management skills. Management specialization varies from firms that are highly decentralized to firms that are managed by one individual. This variety has resulted in less traditional approaches to management training and upgrading, and less strategic management philosophies. Human resource issues are greatly influenced by the sector’s technological trends. New technology has significantly impacted human resource requirements. While previously the advanced wood products manufacturing sector was the domain of highly repetitive tasks requiring low staff skill levels, it is increasingly dependent on the knowledge of highly trained staff. However, in 1996, 40% of household furniture industry employees did not have high school diplomas.62 Skill Shortages A report on the North American furniture industry highlighted the significant skill shortages that exist, which are seen to characterize the advanced wood products manufacturing sector in general. In the US and Canada, for every graduate of a college industrial woodworking program, there are two to three jobs available.63 Generally, the skill shortages, have tended to be in areas of specialized skills, like computer numeric controlled (CNC) production processes. In the lower-skilled positions, there is an especially high turnover rate, but fewer staff shortages.

62 Industry Canada, 1996. Household Furniture: Part 1 Overview and Prospects, 17. 63 Lauber, Timothy J., 1996. Training in the Furniture Industry. Aktrin Research Institute. High Point, North Carolina.


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A recent report on furniture industry training argues that the major skill shortages are in the positions of maintenance and repair persons and operators, finishers, cabinet makers, assemblers and upholstery sewers.64 The skill shortages are urgent and consequential for supervisors and production managers. It has been argued that inefficiencies in the industry originate from these shortages.65 A report by Quebec’s Comité secotriel de main-d’oeuvre des industries des portes et fenêtres, du meuble et des armoires de cuisine, revealed that the overwhelming reason given for workforce hiring difficulties in the province’s window, door, furniture and kitchen cabinet manufacturing industries was the lack of a qualified workforce (given by 41% of companies). This reason was given more than three times as often as the next most frequent reason, which was, similarly, that there was a lack of experienced candidates for jobs.66 The report found that within those Quebec industries, there were on average 28 jobs to fill in semi-skilled positions such as cabinet makers and industrial machinists (34% of semi-skilled positions could not be filled). There were skill shortages in other areas as well: 20% of highly skilled positions were unfilled, 13% of management positions were unfilled, and 8% of professional/technical positions were unfilled, with an industry average of 19% of unfilled positions. In an Alberta advanced wood products manufacturing survey, over 20% of companies indicated that finding experienced/trained personnel and employee turnover were barriers to their future growth.67 An ACOA study of Atlantic Canada’s advanced wood products sector found that most companies experienced hiring problems, and about half indicated that they hired inexperienced staff and trained them themselves. Only about 18% of companies who had hired new staff were able to find experienced people. All companies said that they found appropriate training programs in educational institutions when they needed them.68 The overall shortage of skilled workers has arguably been a result of the end of the influx of skilled workers that emigrated to Canada, especially following the Second World War. Canada is not seen as producing sufficient quantities of home-grown talent to keep up with the number and quality of trained workers needed in the furniture industry. There is perceived to be a lack of training programs, or insufficient promotion of the existing training programs. A demographic shift has also resulted in the lack of skilled workers. A recent report on wage and skills in the Canadian furniture industry concluded that:

…workers and managers will need more specialized skills, and such workers can only be attracted by higher pay rates. […] The aging of the population will also drive wages to higher levels. The flow of young and inexpensive workers will become less abundant. As a result, the industry will be forced to increasingly engage more mature workers, who are invariably more expensive, but not necessarily more skilled, on

64 Ibid, p.5. 65 Ibid, p.4. 66 Comite sectoriel de main-d’oeuvre des industries des portes et fenetres, du meuble et des armoires de cuisine, 2001. Rapport d’enquete., p16. 67 Pricewaterhouse Coopers, 2000. Alberta Forest Products Secondary Manufacturing Industry – Benchmark Study. Department of Resource Development, Department of Economic Development. 68 ACOA, 2001. Value-Added Wood Products in Atlantic Canada – An Overview of Issues Affecting their Growth, 41.


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modern machines. All of which suggests that training and retraining will take on added significance in the furniture industry…69

Current human resources problems in the sector are not exclusive to Canada. In a survey of wood industry executives in the United States, 19% indicated that employee recruitment was their biggest concern and 59% listed it among their top three. Another study also showed that labour issues, including the retention, skill levels and availability of workers were industry executives’ top concern.70 The sector is largely dominated by male workers. The male to female ratio among production workers in the furniture industry overall is 80:20, although the proportion of female employees is growing.71 The sector’s inability to attract female workers is a major weakness, one that largely results from general perceptions of the sector as dangerous, low-paying and uninterested in attracting female workers. It is generally understood in the industry that women occupy jobs with lesser skill requirements and more junior positions. Regarding pay equity, a recent study found that women make up to ten percent less than their male counterparts for virtually all job functions within the furniture industry.72 Industry wage levels are seen as a barrier to recruiting and promoting the sector. For example, the average real weekly wage in the furniture industry grew at an annual rate of only 0.01 percent between 1983 and 1999, and wages in the furniture manufacturing sector are lower than manufacturing in general. The average real wages in manufacturing in general in Canada rose during the same period by 0.14 percent annually, much higher than in the furniture industry.73 3.2 Current Education and Training Current education and training in wood products processing is felt to be insufficient. Existing North American programs lack students and some have been phased out or slimmed down. The major reason for this is felt to be the general lack of promotion and recruitment by the sector. That the sector is seen as not having kept pace with its training requirements results partly from the lack of graduates of the education and training programs. For skilled positions, there are near crisis enrolment shortages to support the growth or continuation of the sector at present levels. This is a North American problem, where undergraduate enrolment for wood science and technology courses went from 1,320 in 1979 to 300 in 1991.74 While a recent report commended the efforts of Conestoga College and the Ontario Furniture Manufacturers Association to promote and recruit for the sector, it argues that there is a need for more coordinated efforts on the part of industry, schools and the labour force.75 The report suggests that colleges need to increase their outreach to high schools through career days, videos, literature, trade shows and coalitions with associations. It also recommends that scholarships be used to attract promising students to the sector, as is done in the US pulp and paper industry, where almost all students in related programs are on full scholarship. The sector is labour-intensive, and is predominantly characterized by unskilled or semi-skilled workers, many of whom are recent immigrants. Current education and training is hampered by 69 Aktrin Research Institute, 2001. Employment and Wages in the Canadian Furniture Industry. High Point: North Carolina, p. 19. 70 Landgraf, Greg, 2001. “Nervous Times Replace Profit Climbs,” Wood & Wood Products, April 2001, pgs 55-60. 71 Aktrin Research Institute, 2001. Employment and Wages in the Canadian Furniture Industry. High Point: North Carolina, p.9. 72 Ibid., p. 29. 73 Ibid. 74 Lauber, Timothy J, 1996. Training in the Furniture Industry. Aktrin Research Institute: High Point, North Carolina, p.30. 75 Ibid.


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the fact that this sector is characterized by employees with low levels of numeracy and literacy, and often with limited English- or French-language skills. The sector has been criticized for the low level of support for training by private sector employers.76 Industry has also been reticent to provide in-house training to the extent carried out by other manufacturing sectors. A recent report recommended that two to five percent of production payroll should be used for training.77 It is felt by many in the industry that initiatives must be undertaken in order to reach young Canadians, even as young as primary school,78 in promoting the trades in general and the wood trades in particular. Apprenticeship Training Apprenticeship training is proportionally more common in Canada than in the US, but it has not gained the breadth and importance it possesses in Europe. Of the entire Canadian civilian labour force, apprentices make up 1.1 percent, compared with 7.1 percent in Germany.79 Apprenticeship training usually begins in Canada at around the age of 20, when it is usually ending for German apprentices, who generally begin around age 16. As Canadian apprenticeship programs start later, it is felt they lose potential applicants who cannot afford the expense and time commitment when they may have already started a family or are seeking higher pay immediately. Along with Germany, studies have ranked the Danish apprenticeship system as extremely effective, helping the country’s healthy furniture manufacturing industry.80 Denmark has used a qualified staff, funneled from the apprenticeship system and elsewhere, to overcome their lack of extensive wood resources. Of apprenticeship programs in Canada, Ontario’s is considered to be one of the most effective and popular. Efforts have been made to increase the uniformity of Canadian apprenticeships through the Red Seal program, which allows apprenticeship training to be recognized across the provinces. Existing Post-Secondary Educational Opportunities It has long been recognized that the graduates of other engineering programs do not sufficiently meet this sector’s needs. The establishment of the University of British Columbia’s Centre for Advanced Wood Processing (CAWP) represents a recent effort by industry and government to address the skilled labour shortage problem. (See Appendix E for a description of CAWP). In addition, a new Bachelor of Applied Technology - Advanced Manufacturing Technologies - Wood and Composite Products program will open at Conestoga College in August 2003.

76 EIS, Inc., 1999. Achieving Human Resource Competitiveness in Wood Products Manufacturing. WoodLINKS, 3. 77 Lauber, Timothy J., 1996. Training in the Furniture Industry. Aktrin Research Institute. High Point, North Carolina, p.7. 78 EIS, Inc., 1999. Achieving Human Resource Competitiveness in Wood Products Manufacturing. WoodLINKS. 79 Ibid, p.8. 80 Jaako Pyry Consulting, 2001. Assessment of the Status and Future Opportunities of Ontario’s Solid Wood Value-Added Sector. Council of Forest Industries.


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The following is a list of educational programs at the secondary and post-secondary levels that directly support the sector in Canada: Institution/Source Program Name

Nova Scotia Community College Cabinet Carpentry, Furniture & Woodworking Technology University of New Brunswick Wood Products Minor Woodworking Center of Excellence – NBCC Wood Processing Techniques/Wood Processing Technology University Laval Wood Science École du Meuble de Montréal Techniques d'ébénisterie et de menuiserie architecturale École québécoise du meuble et du bois ouvré Techniques du meuble et de l'ébénisterie Algonquin College Furniture Technician Conestoga College

Woodworking Technology/Woodworking Technician Bachelor of Applied Technology - Advanced Manufacturing Technologies

George Brown College Furniture Technician - Production and Design Humber College Industrial Woodworking Technician Ontario College of Art & Design Industrial Design Ontario Ministry of Training, Colleges and Universities Industrial Woodworker Apprenticeship Program Sheridan College Furniture Program Red River College Wood Products Manufacturing Technology Southern Alberta Institute of Technology Wood Engineering Technology Northern Alberta Institute of Technology Wood Products Engineering Technology BC Wood Value-Added Development Centre BC Wood Training Program British Columbia Institute of Technology Wood Products Manufacturing Camosun College Fine Furniture Centre for Advanced Wood Processing – UBC Continuing Education Program College of New Caledonia Bachelor of Design (Industrial Design Major) Emily Carr Institute of Art+Design Wood Products Design Kootenay School of the Arts Wood Products Manufacturing Technology Lambrick Park Secondary School Fine Woodworking Selkirk College Wood Processing Technology University College of the Cariboo Wood Products Processing University of British Columbia Training has been an area of concern in the sector. While some colleges/universities have been able to fill all available spaces in relevant programs (ie. the Furniture and Woodworking Program at Nova Scotia Community College), others have been unable to recruit to reach capacity. UBC’s Centre for Advanced Wood Processing has the largest number of potential graduates, but enrolment numbers are far lower than original program goals. Enrollment at the University of New Brunswick (UNB) and the University of Laval is also low. The Wood Engineering Program at Southern Alberta Institute of Technology has recently suspended its Wood Engineering Program due to low enrolment. Ironically, many programs are simultaneously seeing post-graduation employment rates of 100%. Graduates may not be actively recruited by industry. A 1998 ACOA report concluded that the majority of UNB forestry graduates could not find employment in Atlantic Canada. The number of graduates finding work in Atlantic Canada has, however, increased. 81

81 ACOA, 2001. Value-Added Wood Products in Atlantic Canada – An Overview of Issues Affecting their Growth, 42.


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The Rosenheim Fachhochschule Canadian education in advanced skills for the sector has been mentored by the Bavarian technical and industry educational institute, Rosenheim Fachhochschule, or FHR as it is known in Germany. The Canadian sector has employed FHR graduates and used its systems and experts in the development of UBC’s Centre for Advanced Wood Processing. The Canadian sector’s education and recruiting system is seen as being at a dramatic disadvantage compared to that of Germany. The shortage of engineers for wood processing has been viewed as a major restriction to the sector’s growth and Canada has drawn on the FHR example for possible solutions. Unlike the secondary status accorded to Canadian trade and technical programs compared with traditional academic programs, the German post-secondary system devotes considerable resources and influence to the creation of a strong trades and technical branch of programs, through its Fachhochschulen. These schools offer application-oriented full-time courses in engineering, business, design and other fields. They are the fastest growing division of programs in the German post-secondary system, and, having expanded dramatically since their inception in the late 60’s, they now enroll between 25 and 30 percent of German post-secondary students.82 The Fachhochschule system is considered responsive to the industry’s practical needs: two out of three engineers come from the system, with only one of three from the more traditional university system. The FHR has more than 80 years experience in wood engineering, and has been operating successfully in its present form for over 30 years. It is world renowned for its excellence in the field of wood processing and is the world’s largest educational facility for wood engineering. Wood processing is studied by about 1,200 students of the school population of 4,000, with about 200 students graduating annually. In addition, 60% of the students entering the FHR have completed apprenticeship training, in addition to their high school diploma, though this is not an entry requirement. Faculty must have at least five years professional experience on top of their academic credentials. Since most of Germany’s wood manufacturing companies are small- or medium-sized, the FHR wood engineering program is geared towards producing well-rounded graduates with business administration capabilities to complement their specific wood knowledge. FHR’s Dr. Klaus Binder has suggested that the Canadian wood manufacturing sector is largely where Germany’s was in the 1960’s, needing to develop a competitive edge through a more educated and up-to-date workforce. Through the development of the Fachhochschulen, which is closely tied to industry and responsive to workforce changes, Germany was able to maintain an advantage in global wood manufacturing despite high labour and material costs. While the development of UBC’s CAWP has been seen as a positive result of the Canadian sector’s ties with the FHR, CAWP has yet to have the strong impact on the Canadian sector that the FHR has had on Germany’s. (See Appendix E for information on CAWP).

82 Binder, Dr. Klaus. Rosenheim Consult Study for the Canadian Educational Initiative of the Woodworking Industry.


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3.3 Research, Education and Training Canada is not seen as keeping pace with its competitors in the field of research and development (R&D), particularly technological R&D. Canada trails Sweden and the US in relative R&D spending for the sector.83 A recent Canadian wood products manufacturers’ mission found that Swedish companies were constantly reinvesting in training and equipment, and looking at new efficiencies to incorporate into their manufacturing systems. The Swedes were seen as giving high priority to the development of strong distribution and marketing strategies.84 In 1998, Cam Russell, a fine furniture instructor at Camosun College, went on an exchange to Tracentrum, a wood training centre in Sweden. He observed upon his return:

More training for the smaller shops or factory owner/manager with actual hands-on experience is mandatory if Canada hopes to rise to Swedish standards.85

Many of the sector’s problems are due to incomplete knowledge at the management level. A 1995 furniture manufacturing industry study found that only 54% of employers provided formal training, compared to 77% for all other manufacturing industries. Further, only 54% of employers were aware of training programs developed for the furniture industry and only 15% of employers had hired a graduate from one of these programs.86 In a recent survey of advanced wood products manufacturing companies in Atlantic Canada, only 20% of respondents had used external consultants, government officers, and research and development organizations. While this may not be representative of the whole country, it indicates a weakness in companies taking initiative in the areas of research.87 The technological R&D needed for the sector varies by product area, but generally requires significant investment. Industries such as household furniture rely on material, machinery and equipment suppliers to conduct R&D. This is mostly undertaken outside of Canada.88 Relative to the overall manufacturing sector, new investments in the Canadian household furniture industry are fairly low. In this industry, Canada invests less capital per worker than its US counterpart. The downturn in the sector in the early 1990’s also saw a decrease in the amount of capital invested. Other countries appear to be leading in technological advancements in the advanced wood products manufacturing sector. Major suppliers of state-of-the-art machinery and equipment have been Germany, Italy, Japan and the United States, with Canada demonstrating very limited capability in the area. Forintek Canada Corp. has been an exception to this rule. Forintek has forged R&D partnerships with industry and other international bodies. 83 Forintek Canada Corp, 2001. Annual Report 2000-2001. 84 Baumeister, R., 2002. Technology Mission to Sweden – Secondary Wood Manufacturers. Forintek Canada Corp, 2001. 85 Value-Created Review. A Swedish Exchange. http: //www.wooddesign.bc.ca/news16.htm. 86 Belanger, Caron, Ernst & Young, 1995. Summary of the 1995 Human Resources Study of the Furniture Manufacturing Industry. http://www.duch.schdis57.bc.ca/DPSS/LMI/sites/ISS/furn_e.html 87 ACOA, 1998. The Wood Industry in Atlantic Canada: A Focus on the Value-added. Atlantic Canada Opportunities Agency, Moncton, NB. 88 Industry Canada, 1996. Household Furniture: Part 1 Overview and Prospects.


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Forintek relies on membership fees, and has been hit recently by lower than expected earnings and by the fact that the Ontario government remains outside their support partnership. It has benefited from the federal government’s $1.5 million bridge funding to support an expanded National Research Program, the acquisition of scientific equipment, and the establishment of technology transfer programs, in both the east and west, targeted to serve the advanced wood products industry. Forintek has been seen by some in the advanced wood products manufacturing industry as focused on the primary industry. Canadian sector firm’s investments in the last decade have included significant updating of new technology through the acquisition of computer-aided design (CAD) equipment and computer numeric controlled (CNC) machines. These new technologies have lead to increased productivity and to appearance and design improvements of Canadian advanced wood products. Machinery and equipment improvements are important to the sector, but it is argued that they must happen concurrently with the development of a more skilled and knowledgeable workforce, who can use the technology and anticipate further innovation. It is well documented that by investing in training, sector companies recoup their expenditures through imaginative, labour-saving techniques, better understanding of existing technology and less waste through inefficiency. European manufacturers have long benefited from close proximity to R & D and machinery supply centres, where companies work in tandem to create a competitive advantage. Canada is considered a past innovator in primary wood products technology, but has never been anything but a user of new advanced wood products manufacturing technology. The literature argues that more of the sector’s post-secondary programs require co-op elements, which allow for closer ties between colleges/universities and industry, and prepare graduates for on-the-job experiences. Further, the literature suggested that the federal and provincial governments need to ensure that industry will have sufficient training programs to advance technological development. The development and adoption of new technology and e-commerce has been recommended to enhance sector growth in Canada. Management Management is key to the success of sector companies. A recent overview of the Canadian office furniture industry found that the size of the firm was directly related to the level of management sophistication.89 The literature reports that there is a requirement for managers with more professional knowledge. The development of managerial strengths from within the existing infrastructure has not been effective, largely due to the small size of firms and the reluctance of many owners/managers to upgrade the skills of existing employees. Looking at the Canadian household furniture industry in particular, Industry Canada concluded that the “orientation of many owners in this industry is essentially toward the production aspect of the business.”90 Management weakness is seen as a major problem for the sector. Smaller companies do not have the infrastructure to include forward-looking and innovative management resources. Managers are generally struggling to cope with existing operational infrastructure, and do not normally have the resources or time to research and plan for the future. 89 International Trade Data Network, 2002. Profile of the Canadian Office Furniture Industry. http://www.itdn.net/asbdc/reports/canfurn.pdf 90 Industry Canada, 1996. Household Furniture: Part 1 Overview and Prospects, 4.


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Specific areas of management weakness identified include financial information analysis, market development and personnel development.91 Education is seen as a key to improving sector management. There needs to be an effective infrastructure to disseminate information on educational options and a wider range of options must be made available. Re-education of management for current positions is also required. In a 1994 study, Ernst & Young explored potential skill gaps in the Canadian furniture sector, determining that management experienced the largest skill gaps.92 Both production and general management faced skill issues. The industry required increased skill improvement and the introduction of enhanced productivity measures, such as just-in-time (JIT), bar coding and other technologies. Canadian advanced wood products manufacturers could consider ISO-9000 certification as a way to structure quality management systems. Marketing The literature suggests that the small size and largely entrepreneurial nature of most sector firms results in a weakness in professional marketing. The sector lacks overall marketing strength when compared to Europe and US. With the range of company sizes, there is a range of marketing effectiveness and thoroughness. Smaller companies have demonstrated weakness in their marketing, which has severely decreased their profitability. End market studies to determine prices being charged by competitors, and studies to determine market penetration, have generally been undertaken by only the larger companies, resulting in profitability and market knowledge problems. Canadian household furniture producers sell mostly to retailers, rather than consumers, so marketing has been geared towards retailers’ needs. There has been little concerted effort to increase producer image and promotion. In a survey of 71 independent wood product manufacturers, the key factors to success were overwhelmingly related to marketing.93 The four factors most often cited in firm success were: � Product Positioning;

� Marketing and Distribution Channels;

� Market Intelligence Systems; and,

� Financial Structure. Factors like “component suppliers” ranked below these marketing concerns as keys to success. The study demonstrated a common perception that more knowledge of customers and the marketplace generally is required. Robert A. Kozak demonstrated in “How Specifiers Learn about Structural Materials: A Study in Value-Added Marketing”94 that a large, untapped market exists for value-added wood products 91 Price Waterhouse, 1992. Performance of the Value-Added Wood Products Industry in B.C. Canada-B.B. Partnership Agreement on Forest Resource Development. 92 Ernst & Young, 1994. Today’s Challenges Tomorrow’s Realities: Towards a Human Resource Strategy in the Canadian Furniture Manufacturing Industry, 1994. 93 Ministry of Forests, 1999. A Survey of Independent Forest Product Manufacturers: Key Success Factors, 1999. 94 Kozak, Robert A. “How Specifiers Learn about Structural Materials,” Preparing for the 21st Century: Value Added Marketing for Value-Added Wood Products, Proceedings from the IUFRO & FPS Conferences, June 1997. Forest Products Society, USA.


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in non-residential construction. He identifies a gap in the marketing of value-added products and feels that long-term cooperative marketing programs are needed to communicate to the non-residential construction sector, architects, structural engineers and design schools, in order to increase the use of value-added wood products in non-residential construction. Mr. Kozak argues that under the continued influence of the strict design imperatives of the Bauhaus, architects and designers in North America have not been able to look beyond concrete and steel. The advanced wood products manufacturing industries must disseminate more information on the possible uses of their products. Marketing Trends of the Future Marketing will continue to be a key area for the sector in the future. In its review of sector growth rates, Forum Consulting Group identified a significant relationship between countries with proactive involvement with research and significant marketing investment, and sales growth. While in the past labour costs, access to raw materials, and transportation costs were the key factors affecting competitiveness, factors like marketing will have a greater impact in the future. Canadian retailers will have to focus on expressing quality in more effective ways to the consumer, which will require active participation by manufacturers. The strong economies of North America, Japan and Europe will remain the marketing targets, as they offer large numbers of affluent consumers. As consumers become increasingly sophisticated in terms of branding, design and quality knowledge, effective product differentiation, positioning and advertising will play larger roles in companies’ successes. One interesting marketing suggestion is to increase the promotion of furniture as a fashion item, rather than as a straight commodity. This could accelerate the replacement cycle for new furniture. Although personal expenditures on household furniture represent only about 1 percent of all Canadian consumer spending on goods and services, there is potential for growth. Literature noted that perhaps the most widely required marketing shift for the sector is the need for more market research. This will result in changing from manufacturing products then looking for markets, to developing products that suit market demand. Design A growing number of companies are putting strong emphasis on design, product quality and customer service to offset higher labour costs relative to other countries. With the increased acquisition of computer-aided design (CAD) and computer numeric controlled (CNC) machinery, the improvement in the appearance of Canadian advanced wood products has been significant over the last decade. Canadian advanced wood manufacturers are generally seen as offering higher quality than their American competitors. Design, however, has consistently followed Europeans and Americans, although some Canadian companies are making innovative design in-roads. Investment in design is considered risky, and requires a sensitive knowledge of a fast-moving and increasingly trend-conscious consumer base. The impact of more discriminating and style-conscious consumers, as well as the rise of IKEA and other “lifestyle” wood product manufacturers, cannot be underestimated, especially for home and office furniture.


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Limitations of the Research The Canadian advanced wood products sector has a limited amount of research material available to it. Much of the literature reviewed was regional in scope. Research was undertaken primarily in regions with under-developed advanced wood products manufacturing or where provincial governments have made it a priority. Studies could be undertaken to examine the impact of design and R&D initiatives on the sector. While design is important in countries like Germany, Italy and Sweden, there has been little research on Canadian design capabilities. This is also largely true of marketing. Skill comparisons could also be undertaken between European, Canadian and US training facilities and between their graduates. Due to the limited nature of the project’s survey component, it is felt that, to provide a more scientific basis for projections of staff growth, a larger sector employer survey could be conducted.


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SECTION 4: SURVEY RESULTS

4.1 Results from the Employer and Stakeholder Surveys As the surveys were administered to a limited sample, the results are discussed outside the report’s literature and statistical findings. With the small number of responses, the data is indicative, not representative, of the entire sector. Information in this section is based on responses from 26 employers and 25 stakeholders. Survey responses generally reinforced the literature findings. The survey’s main findings are summarized below. Employers responding generally came from the Wood Kitchen Cabinet and Bathroom Vanities Industries, Other Millwork Industries, and Wooden Household Furniture Industry. It is important to note that, while stakeholders are well-informed on sector issues, their responses are subjective and should be viewed as indicative. Trends in Employer and Stakeholder Surveys Both employers and stakeholders see human resource issues as the greatest barriers to growth and increased profitability in the sector. Both groups overwhelmingly felt that “Insufficient qualified staff to hire” and “skill shortages in staff” were the key factors affecting growth. Higher percentages of stakeholders thought these human resource issues primary: over three-quarters of stakeholders said that either “insufficient qualified staff” (78%) and “skill shortages in existing staff” (78%) were “Very significant” factors, whereas employers assigned these factors relatively lesser importance, at 40% and 32% respectively. The next most identified factor affecting growth was “competition from other countries”, indicating that internal problems are more significant than external competition. When identifying the main roadblock their company faced in trying to grow or become more profitable, employer responses varied from global competition to lack of capital supply. Still, the main theme was a lack of skilled and experienced labour. Stakeholders also overwhelmingly identified the lack of sufficient and trained staff as the main roadblock. Other roadblocks identified by stakeholders included an under-developed manufacturing sector in British Columbia, cheap imports and foreign competition from the US and Asia. “Lack of skilled workers. Inability to attract workers to industry due to perceptions relating to type of work available. Inability to compete wage-wise with other producers (e.g. aerospace).” -Main roadblocks to sector growth given by one stakeholder. Stakeholders believed that lack of company marketing and advertising knowledge was more of a factor than employers (with 56.5% of stakeholders believing that is was either somewhat or very significant as a factor, compared to 36% of employers). Both employers and stakeholders felt that “Insufficient wood supply” was not an important factor in sector growth, with 36% of employers and 22% of stakeholders saying it was “Not a factor at all”.


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Employers said that the occupations most difficult to recruit for were machinists, cabinet makers and finishing technicians. While several occupations were mentioned as the most difficult to recruit for, occupations most often identified as most difficult to fill included machinists, cabinet makers and finishing technicians. While employers indicated that retirement was not a significant factor causing vacancies in specific occupational groups, some sector occupations are characterized by high numbers of employees aged 55 years or older. Some occupations listed had approximately half of its current staff over the age of 55, including “Machinery operator for rough mill” (44% of staff over 55 years of age), “Production: Quality Control” (48% of staff over 55 years of age) and “Skilled Trades: millwright, electrician, welder/fabricator, machinist (50%). The occupations with the lowest levels of staff aged less than 30 years of age were “Carpenters,” and “Management”. While the highest distribution in all occupations was in the mid-range age category of 30-54 years of age, the survey findings indicate that the number of young employees in the sector trades is low and that many production positions will need replacement workers in the next decade. Stakeholders felt that the level of female participation in the sector will increase in the near future. Of those with an opinion, 92% of stakeholders indicated the number of female employees in the sector would increase in the near future. A typical survey comment regarding this issue is: “There is an increase in the number of female college and university graduates from wood processing programs.” Reasons identified for the lack of gender parity in current employee levels were varied. Stakeholders felt that there was not sufficient information made available to women about the sector, and that some women were deterred by the very male nature of the sector. “I don't think females have been specifically targeted as employees.” -Stakeholder survey response. Employers indicated women are not well represented in the skilled trade occupations, but have closer parity in veneer lay-up and finishing technician positions. Of current occupations, female employees represent the highest percentage of staff in veneer lay-up (50%) and finishing technician (34%), but comprise only small percentages of the skilled trades such as millwrights, electricians welder/fabricators and machinists, and carpenters. Women employees make up roughly a quarter of managerial and supervisory positions, according to averages from employer surveys. “This is not an industry that women have traditionally entered. However, we have noticed a steady and significant increase in the number of women in our manufacturing plants.” -from an employer survey.


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Due to low starting wages and insufficient workers in the sector, stakeholders felt that skilled tradesmen and supervisor/managers were the most difficult to attract to the sector. Stakeholders overwhelmingly felt that there was going to be a shortage of trained and experienced employees in the next two years. Reasons given by stakeholders for this shortage included the low wages offered by the sector, the lack of graduates from sector training programs, the sector’s poor public image, and the lure of more money from the United States and primary industry. “Yes [we will face shortages], as the older workforce retires, especially in view of the low wages offered to employees entering the job market in this field.” -stakeholder in interview. Occupations listed that stakeholders believed would be or are already facing shortages include: finishing technicians, CNC operators, engineers, cabinet makers, CAD designers and draftsmen. Employers indicated that they will continue to hire consistently for all occupations, and are waiting to hire supervisors and machinery operators but cannot. Of all occupations, employers indicated that they were unable to fill machinery operators for solid wood processing, and supervisors. Stakeholders felt that the reason for the sector’s difficulties in retaining staff was the low wages levels. Many stakeholders felt that the sector’s comparatively low wages discourage workers from staying in one particular job or with one company. It was indicated that other manufacturing sectors pay more and attract the largely unskilled workers making the lowest wages. In hiring new staff, employers only look for experience and basic/high school education for most positions, except managerial and professional occupations. When asked what are the qualifications for various sector occupations, employers said that they look for experience and basic qualifications, like high school diplomas. The only positions that seemed to require more than this were managerial positions, where employers wanted university graduates, and professional positions, such as CNC programmers, etc., where employers wanted staff with technical education (certificates and diplomas). Employers who indicated that they had hired staff from technical courses at formal educational institutions indicated they were pleased with these employees. Stakeholders felt that the sector required better management skills. While stakeholders did not identify any major trends with skill gaps in the production, trades and professional occupations, sector management positions were targeted as being especially weak. Stakeholders also felt that while there were no other major skill gaps, there was not enough staff overall. “Entrepreneurs need management skills, financial management skills and marketing skills.” -stakeholder commenting on skill gaps in management.


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Stakeholders felt that recent graduates have the high tech skills needed in the sector. A vast majority of stakeholders felt that recent graduates are “equipped with the high technology skills they should have to be effective in the industry” (82%). Stakeholder thought that graduates were prepared sufficiently by the existing training programs, but that there were not enough graduates. “Nobody comes out with all of the tools, but recent grads from co-op programs like UBC and Conestoga College (ON) have some valuable skills and relevant experience to bring to their new jobs.” -stakeholder interview. Less than half of employers have hired staff with formal training in the last five years. Only 38% of employers had hired staff with formal training from a specialized vocational program geared towards the sector. Still, over half (56%) of the companies surveyed said they had developed links with educational institutions. Of the companies that had developed links with educational facilities, the Woodworking Centre of Excellence in Campbellton, New Brunswick was a common partner. The University of British Columbia, Conestoga College, Ecole du Meuble, Southern Alberta Institute of Technology, Red River Community College, Bow Valley College and Germany’s Rosenheim Institute were also mentioned. The average amount invested in employee training as a percentage of payroll was 3.4%. The average investment in employee training of 3.4% of payroll irepresents a surprisingly high level, and may not be representative of the total sector. It is likely that the number is inflated, as companies who may be more proactive in terms of employee training may be more likely to participate in sector surveys. Most employers said that they had experienced either little or no growth in the last two years in terms of the number of employees. Only 8% of employers experienced growth above 50% in employee numbers in the last 2 years, whereas 25% of companies experienced some decline. The majority of companies had either experienced no change or a slight increase of up to 25% in the last 2 years, indicating there has been only modest employee growth in the sector. Of those with an opinion, stakeholders generally felt that new secondary and post-secondary graduates are slightly better than graduates of 5 years ago. Stakeholders thought that there had been significant gains in the area of professional occupation training (for Engineers, CNC and CAD/CAM operator positions) with 26% saying recent graduates were “Significantly better” and 44% saying that they were “Slightly better”. Few stakeholders felt the schools were producing weaker graduates than 5 years ago.


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SECTION 5: CONCLUSION

5.1 Summary of Analysis The Canadian advanced wood products manufacturing sector is felt to be in its adolescence. While it has matured past a simple reliance on cheap and accessible resources to overcome inefficient and outdated manufacturing processes, it has yet to reach the level of sophistication in training, education, research, and adoption of new technologies of other international players, like Germany, Scandinavia, and parts of the United States. While the Canadian sector continues to grow, it is seeing increased international competition, which may offset future export gains. Canada has high sector wages compared to other countries (though not compared to other Canadian sectors), and as a result must improve marketing, design and effective management to compete internationally. China poses a significant competitive challenge to both international and domestic markets for the Canadian advanced wood products manufacturing sector. The sector will have to manage and effectively undergo fundamental changes to meet the challenges of altering regional, national and international economies. The main areas of concern identified in the literature review, site visits and surveys were the following: � Staff shortages: It is obvious that skill shortages in current staff and a shortage of trained

employees in general have put pressure on the sector to recruit more workers. Unfortunately, with sector employment growing steadily, it is felt that there are insufficient numbers of new workers to replace existing ones. This is especially relevant considering that in many of the occupations, especially the skilled trades, professionals and managerial/supervisory positions, the level of knowledge required is felt to be higher than at pervious times. Surveys showed that although employers do not feel that retirement is a significant factor in creating the need for hiring now, the age of staff demonstrates that this will certainly become a factor.

� Staff limitations: It was felt that although the level of training and education for sector staff

has traditionally been low, innovations like CNC and CAD, and tougher competition from international and extra-sectoral companies have necessitated the need for higher levels of education and training. While many jobs still require a minimum of training and education, many more positions involve technological or marketing skills that are not available in all companies. These staff requirements are challenging considering the relatively low levels of public interest in the sector and the low wage levels compared to the primary forest products industry and other manufacturing sectors.

� Limitations of Management: The limitations of management were felt to be a major

weakness of the Canadian advanced wood products manufacturing sector. It was felt that management is focussed on day-to-day operations instead of on innovative strategizing or human resource development. This is likely the result of many managers having little formal training, and the result of the relatively small size of most sector firms. There are few formal networks within the sector to support innovative management practices.


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� Limitations of Marketing Knowledge: As a result of management limitations, marketing,

R&D and business innovation have not been major priorities for the Canadian sector. Many firms appear to be production-driven, rather than market-driven. There is also a reliance on exports to the US, rather than on diversified markets.

There is a common perception that the problems the sector faces are largely human resource related, and that all other challenges are secondary. While the late 1980’s and 1990’s saw rationalization in the sector, and a reorientation of the industries from domestic production to export, the threats of increased globalization are seen to be less pressing than the need to have sufficient, and sufficiently knowledgeable, staff. This challenge is exacerbated by the sector’s overall low wages across professions and its low public image. On a positive note, the number of female students and workers entering this traditionally male sector is seen as proof of increased diversification. Germany’s Rosenheim Institute was highlighted as an example of what Canada requires. University of British Columbia’s Centre for Advanced Wood Processing is a start, although the centre is not producing enough graduates to meet industry needs and requires further promotion and increased enrolment. Stakeholders and the literature often argued that the Canadian sector’s future must not depend on high volumes of low cost lumber. It should follow the lead of Scandinavia, which has no old growth forest remaining and high supply costs, but thrives due to efficient and modernized plants, streamlined facilities, sophisticated design and marketing, and excellent management and training. Overall, the sector needs to attract and retain knowledgeable workers who understand not only production, but also marketing and human resource issues. While the sector is seen to be unable to compete with the lower wages and material costs of emerging international players, like those in Asia, it must, like the Europeans, compete through quality and design innovation, a highly-skilled workforce and through the maximization of production. 5.2 Identification of Research Gaps The research results suggest that while considerable human-resource related information exists on the Canadian advanced wood manufacturing sector, there is a shortage of detailed information at the sub-sector and/or provincial level. Topics that could be investigated through future research include: � Examination of the skill base / skill requirements of the industry: While the literature

suggest there are several occupations with skilled labour shortages, a more detailed industry needs assessment could be undertaken to ascertain the extent to which skilled labour (both for current vacancies and for future positions) is required. Typically, such needs analyses include representative broad-based surveys of sector employers, stratified by size and region. Information from such surveys could help to develop a sector human resource strategy. Such analyses could examine the issues from the both the worker and management perspectives.


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� Identification of the Industry Education and Training Capacity: The literature review identified a variety of educational programs offered in Canadian colleges and universities. Of potential interest might be the identification of in-house training available in the sector. This effort could identify potential partnership opportunities between industry/schools and/or between individual companies or sub-sectors.

� Assessment of Factors Associated with Employee Turnover: Turnover information collected during the literature review suggests that employee turnover is high. Analysis could be completed to identify reasons for high turnover and to provide potential solutions to enhance employee retention. Potential research projects include surveys of recently separated employees (exit surveys) and/or information collected through surveys of employers/union organizations.

� Development of Industry Promotion/Attraction/Recruitment Strategies: There is a perception that careers in this sector are not attractive to Canada’s youth. Research could be undertaken to assess youth perceptions of the advanced wood manufacturing sector. Through such research, the sector could be better positioned to develop a marketing/promotion strategy aimed at encouraging potential workers to consider careers in advanced wood manufacturing. Such research could also assess potential strategies for attracting “non-traditional” (i.e. women/equity groups) workers into the sector.


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APPENDIX A - DESCRIPTIONS OF SIC AND NAICS CODES OF THE ADVANCED WOOD PRODUCTS MANUFACTURING SECTOR SIC CODE INCLUDES SIC 2541 Prefabricated Wooden Buildings Industry

Cottages, wood frame construction, pre-fabricated, manufacturing Farm buildings, wood frame construction, prefabricated, manufacturing Garages, wood frame construction, prefabricated, manufacturing Houses, wood frame construction, pre-fabricated, manufacturing Modular buildings, wood frame, manufacturing Prefabricated buildings, wood frame construction, manufacturing Prefabricated sections for wooden buildings, manufacturing Prefabricated walls for wooden buildings, manufacturing School buildings, wood frame construction, prefabricated, manufacturing

SIC 2542 Wooden Kitchen Cabinet and Bathroom Vanity Industry

Bar tops, wooden, manufacturing Bathroom vanities, wooden, manufacturing Cabinet components, wooden, manufacturing Counter tops, wooden, manufacturing Kitchen cabinets, wooden (exc. free standing), manufacturing Table tops, wooden, manufacturing Vanity components, wooden, manufacturing

SIC 2543 Wooden Door and Window Industry

Bifolding doors, wooden, manufacturing Combination doors, wooden, manufacturing Door frames and sash, wood and covered wood, manufacturing Door units, prehung, wood and covered wood, manufacturing Doors, combination screen-storm, wood, manufacturing Doors, wood and covered wood, manufacturing Doors, wooden (louvre, flush), manufacturing Double-hung window units, wooden, manufacturing Frames, wooden, door and window, manufacturing Garage doors, wooden, manufacturing Jalousies, wood frame, manufacturing Louvre windows and doors, wood frame, made from purchased glass Pre-hung doors, wooden, manufacturing Sash, door and window, wood and covered wood, manufacturing Sash, window, wooden (storm, screen), manufacturing Sashless window units, wooden, manufacturing Shutters, door and window, wood and covered wood, manufacturing Storm doors and windows, wood framed, manufacturing Window frames and sash, wood and covered wood, manufacturing Window screens, wood framed, manufacturing Window units, wooden (incl. metal or plastic covered), manufacturing Windows, louvre, wood, manufacturing Wood window frames and sash, manufacturing

SIC 2549 Other Millwork Industries

Beams, laminated wood, manufacturing Cross arms, wooden, manufacturing Flooring, hardwood strips or tiles, manufacturing Lumber cores, manufacturing Moulding, wooden, manufacturing Partitions, wooden, manufacturing Rafters, laminated wood, manufacturing Roof trusses, wooden, manufacturing Stairs, prefabricated, wooden, manufacturing Tongue and groove lumber, manufacturing Trusses, laminated wood, manufacturing

SIC 2611 Wooden Household Furniture Industry

Bedroom, furniture, wooden, manufacturing Bookcases, household, wooden, manufacturing Cabinets for radios, television sets and record players, manufacturing Cabinets, household, free standing, wooden, manufacturing Cedar chests, manufacturing Chairs, household, wooden, manufacturing Children's furniture, wooden, manufacturing Dining room furniture, wooden, manufacturing


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Domestic sewing machine cabinets, wooden, manufacturing Hall furniture, household, wooden, manufacturing Household furniture components, wooden, assembling and finishing Household furniture, wooden, manufacturing Kitchen cabinets, free standing, wooden, manufacturing Kitchen furniture, household, wooden, manufacturing Laundry hampers, wooden, manufacturing Living room furniture, wooden, manufacturing Outdoor household furniture, wooden, manufacturing

SIC 2612 Upholstered Household Furniture Industry

Chairs, household, upholstered, manufacturing Chesterfields, manufacturing Hassocks, manufacturing Household furniture, upholstered, manufacturing Living room chairs, upholstered, manufacturing Recliners, household, upholstered, manufacturing Sofas (incl. sofa beds), manufacturing Upholstered household furniture, manufacturing

SIC 2649 Other Office Furniture Industries

Bookcases, office (exc. metal), manufacturing Cabinets, office (exc. metal), manufacturing Chairs, office (exc. metal), manufacturing Desks, office (exc. metal) Filing equipment, vertical or lateral (exc. metal), manufacturing Tables, office (exc. metal), manufacturing

SIC 2692 Hotel, Restaurant and Institutional Furniture and Fixture Industry

Beds, hospital, manufacturing Chairs, dentist, manufacturing Church furniture, manufacturing Counters, hotel, motel, restaurant, store and office, manufacturing Dental cabinets, manufacturing Display and show cases, manufacturing Hospital furniture, manufacturing Hotel furniture, manufacturing Institutional furniture and fixtures, manufacturing Laboratory furniture, manufacturing Professional furniture and fixtures, manufacturing Public building furniture and fixtures, manufacturing Restaurant furniture, manufacturing School furniture, manufacturing Shelving (incl. metal), manufacturing Store furniture, manufacturing

The following are descriptions of the SIC codes listed above95 Statistics Canada defines the Prefabricated Wooden Buildings Industry (SIC 2541) as: Establishments primarily engaged in manufacturing prefabricated or pre-cut buildings of wood frame construction. Prefabricated (factory built) buildings include all buildings that are pre-manufactured at a plant either in sections, complete units or in components for "on-site" erection. Establishments primarily engaged in manufacturing mobile homes are classified in SIC 3244 - Mobile Home Industry and those primarily engaged in the erection of prefabricated wooden homes on the site of construction are classified in SIC 4011 - Single Family Housing, construction or SIC 4023 - Institutional Building, construction. Statistics Canada defines the Wooden Kitchen Cabinet and Bathroom Vanity Industry (SIC 2542) as: Establishments primarily engaged in manufacturing wooden kitchen cabinets, bathroom vanities (finished and unfinished) and wooden tops for tables, bars and counters (finished and unfinished). Establishments primarily engaged in manufacturing free standing wooden kitchen cabinets are classified in SIC 2611 - Wooden Household Furniture Industry

95 http://www.statcan.ca/english/Subjects/Standard/sic/E.htm#2541


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and those primarily engaged in the installation of wooden components in buildings are classified in SIC 4274 - Finish Carpentry, construction. Statistics Canada defines the Wooden Door and Window Industry (SIC 2543) as: Establishments primarily engaged in manufacturing, for industrial or residential use, wooden doors and frames, wooden window units and frames, including those covered with metal or plastic. Establishments primarily engaged in manufacturing metal doors and windows are classified in SIC 3031 - Metal Door and Window Industry. Statistics Canada defines the Other Millwork Industries (SIC 2549) as: Establishments primarily engaged in manufacturing woodworking mill products not elsewhere classified. Statistics Canada defines the Wooden Household Furniture Industry (SIC 2611) as: Establishments primarily engaged in manufacturing household furniture of all kinds whose chief component material is wood. Establishments primarily engaged in manufacturing free standing household cabinets are included here and those primarily engaged in manufacturing kitchen cabinets are classified in SIC 2542 - Wooden Kitchen Cabinet and Bathroom Vanity Industry. Statistics Canada defines the Upholstered Household Furniture Industry (SIC 2612) as: Establishments primarily engaged in manufacturing household furniture whose chief component material is upholstery fabric. Statistics Canada defines the Other Office Furniture Industries (SIC 2649) as: Establishments primarily engaged in manufacturing office furniture whose chief component material is wood, textile, plastic or other materials except metal. Secondary products of establishments in this industry include wooden partitions. Establishments primarily engaged in producing wooden partitions are classified in SIC 2549 - Other Millwork Industries and those primarily engaged in manufacturing metal office furniture are classified in SIC 2641 - Metal Office Furniture Industry. Statistics Canada defines the Hotel, Restaurant and Institutional Furniture and Fixture Industry (SIC 2692) as: Establishments primarily engaged in manufacturing special purpose furniture and fixtures for hotel, motel, restaurant, store, office and institutions. A secondary product of establishments in this industry is wooden office furniture and equipment. Establishments primarily engaged in manufacturing wooden office furniture and equipment are classified in SIC 2649 - Other Office Furniture Industries. The comparable North American Industry Classification System (NAICS) codes for this analysis include96: NAICS CODE INCLUDES 321911 Wood Window and Door Manufacturing

Bifolding doors, wooden, manufacturing Door frames and sash, wood and covered wood, manufacturing Door units, prehung, wood and covered wood, manufacturing Doors, combination screen-storm, wood, manufacturing Doors, wood and covered wood, manufacturing Frames, door and window, wood, manufacturing Garage doors, wood, manufacturing Jalousies, wood frame, manufacturing Louvre windows and doors, wood frame, made from purchased glass Sash, door and window, wood and covered wood, manufacturing

96 ICCS – Industry Classification Coding System Version 1.2


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Shutters, door and window, wood and covered wood, manufacturing Storm doors and windows, wood framed, manufacturing Window frames and sash, wood and covered wood, manufacturing Window screens, wood framed, manufacturing Window units, wood and covered wood, manufacturing Windows, louvre, wood, manufacturing Windows, wood and covered wood, manufacturing Wood window frames and sash, manufacturing

321919 Other Millwork

Baseboards, floor, wood, manufacturing Blanks, wood (e.g., bowling pins, handles, textile machinery accessories), manufacturing Boards, wood, made by resawing purchased lumber Bobbin blocks and blanks, wood, manufacturing Bowling pin blanks, manufacturing Brackets, wooden, manufacturing Brush blocks, wood, turned and shaped Cants, resawed (lumber), manufacturing Ceiling lumber, dressed, made by resawing purchased lumber Clear and finger joint wood mouldings, manufacturing Columns, porch, wood, manufacturing Cornices, wood, manufacturing Cut stock, manufacturing Dimension lumber, made by resawing purchased lumber Door shutters, wood, manufacturing Door trim, wood moulding, manufacturing Floor baseboards, wood, manufacturing Flooring, wood, manufacturing Furniture dimension stock, unfinished wood, manufacturing Furniture squares, unfinished hardwood, manufacturing Gun stocks, wood, manufacturing Handle blanks, wood, manufacturing Handle stock, sawed or planed, manufacturing Hardwood flooring, manufacturing Ladder rounds or rungs, hardwood, manufacturing Lath, wood, made by resawing purchased lumber Mantels, wood, manufacturing Mouldings, wood and covered wood, manufacturing Mouldings, wood, manufacturing Newel posts, wood, manufacturing Panel work, wood millwork, manufacturing Parquet flooring, hardwood (assembled), manufacturing Parquetry, hardwood, manufacturing Planing mills (i.e., dressing purchased rough lumber) Planing purchased lumber Porch work (e.g., columns, newels, rails, trellises), wood, manufacturing Railings, wood stair, manufacturing Resawing purchased lumber Rounds or rungs, furniture, hardwood, manufacturing Seasoning and planing purchased lumber Silo staves, wood, manufacturing Silo stock, wood, manufacturing Snow fence lath, made by resawing purchased lumber Softwood flooring, manufacturing Stair railings, wood, manufacturing Stairs, prefabricated wood, manufacturing Stairwork (e.g., newel posts, railings, staircases, stairs), wood, manufacturing Stock, chair, unfinished hardwood, manufacturing Strips, hardwood, flooring, manufacturing Studs, made by resawing purchased lumber Tiles, hardwood, flooring, manufacturing Tongue and groove lumber, made by resawing purchased lumber Trellises, wood, manufacturing


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Trim, wood and covered wood, manufacturing Turnings, furniture, unfinished wood, manufacturing Vehicle stock, hardwood, manufacturing Venetian blind slats, wood, manufacturing Wainscoting, wood, manufacturing Weather strip, wood, manufacturing Window trim, wood and covered wood mouldings, manufacturing Wood shutters, manufacturing Wood squares, blanks, manufacturing Woodwork, interior and ornamental (e.g., windows, doors, sash, mantels), manufacturing

321992 Prefabricated Wood Building Manufacturing

Buildings, prefabricated or pre-cut, wood frame, manufacturing Chicken coops, prefabricated, wood, manufacturing Corn cribs, prefabricated, wood, manufacturing Cottages, prefabricated, wood frame, manufacturing Farm buildings, prefabricated, wood frame, manufacturing Garages, prefabricated, wood frame, manufacturing Garden sheds, prefabricated, wood, manufacturing Geodesic domes, prefabricated, wood, manufacturing Houses, prefabricated (except mobile homes), wood frame, manufacturing Log cabins, prefabricated wood, manufacturing Modular buildings, prefabricated, wood frame, manufacturing Panels for prefabricated wood buildings, manufacturing Prefabricated wood buildings, manufacturing Sauna rooms, prefabricated, wood, manufacturing Sections, prefabricated wood buildings, manufacturing

337110 Wood Kitchen Cabinet and Counter Top Manufacturing

Bar tops, wood, manufacturing Bathroom vanities, wood, manufacturing Drainboards, plastic laminated, manufacturing Fixture tops, plastic laminated, manufacturing Kitchen cabinets (except free standing), wood, manufacturing Kitchen counter tops, manufacturing Table or counter tops (e.g., kitchen, bathroom, bar), plastic laminated, manufacturing Vanities, bathroom, wood, manufacturing

337121 Upholstered Household Furniture Manufacturing

Bed chesterfields, manufacturing Chair and couch springs, assembled, manufacturing Chair beds, on frames of any material, manufacturing Chairs, overstuffed or upholstered on wood frames Chesterfields, manufacturing Convertible sofas, manufacturing Couch springs, assembled, manufacturing Couches, upholstered on wood frames (except convertible beds), manufacturing Furniture, household, upholstered on metal frames (except dual-purpose sleep furniture), manufacturing Furniture, household, upholstered, manufacturing Hassocks, upholstered on wood frames, manufacturing Juvenile furniture, upholstered on wood frames (except convertible beds), manufacturing Living room furniture, upholstered on wood frames (except convertible beds), manufacturing Lounge chairs, upholstered, manufacturing Occasional chairs, household, upholstered, manufacturing Recliners, household, upholstered, manufacturing Reclining chairs, household, upholstered, manufacturing Rockers, upholstered on wood frames, manufacturing Rocking chairs, household, upholstered, manufacturing Sofas (including sofa beds), manufacturing Spring cushions, manufacturing


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337123 Other Wood Household Furniture Manufacturing

Bassinettes, manufacturing Bedroom furniture, wood, manufacturing Bedside stands, wood, manufacturing Bedspring frames, wood, manufacturing Bookcases, wood household, manufacturing Breakfast sets (furniture), wood, manufacturing Bridge sets (furniture), wood, manufacturing Buffets (furniture), wood, manufacturing Cabinets, household, free standing, wood, manufacturing Cabinets, wood household (e.g., radio, television, stereo, sewing machine), manufacturing Camp furniture, wood, manufacturing Cedar chests, manufacturing Chairs, wood household (except upholstered), manufacturing Chests, silverware, wood (floor standing), manufacturing Children's furniture, wooden, manufacturing Coffee tables, wood, manufacturing Console tables, wood, manufacturing Cots, household, wood, manufacturing Cradles, wood, manufacturing Cribs, wood, manufacturing Custom made household wooden chairs Desks, household, wood, manufacturing Dressing tables, wood, manufacturing Dining room furniture, wood, manufacturing End tables, wood, manufacturing Furniture, wood household, made to individual order Furniture, wood household, manufacturing Garden furniture, wood, manufacturing Hampers, laundry (except metal), manufacturing Headboards, wood, manufacturing High chairs, children's, wood, manufacturing Household furniture components, wooden, assembling and finishing Juvenile furniture, wood (except upholstered), manufacturing Kitchen furniture, wood, manufacturing Living room furniture, wood, manufacturing Magazine racks, wood, manufacturing Nursery furniture, wood, manufacturing Outdoor household furniture, wooden, manufacturing Pine and oak furniture Playpens, children's, wood, manufacturing Porch furniture, wooden, manufacturing Racks, book and magazine, wood, manufacturing Radio cabinets and cases, wood, manufacturing Rocking chairs, household, wooden, manufacturing Screens, privacy, wood, manufacturing Sewing machine cabinets and cases, wood, manufacturing Smoking stands, wood, manufacturing Stereo cabinets, wood, manufacturing Stools, household, wood, manufacturing Swings, porch, wood, manufacturing Tables, household, wood, manufacturing Tea wagons, wood, manufacturing Telephone stands, wood, manufacturing Television cabinets, wood, manufacturing Vanity dressers, manufacturing Wardrobes, household, wood, manufacturing Whatnot shelves, wood, manufacturing


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337127 Institutional Furniture Manufacturing

Altars (except stone and concrete), manufacturing Assembly hall furniture, manufacturing Bar furniture, manufacturing Benches, public buildings, manufacturing Bleacher seating, portable, manufacturing Bowling centre furniture, manufacturing Cabinets, factory, manufacturing Cafeteria furniture, manufacturing Chairs, hydraulic, barber and beauty shop, manufacturing Chairs, portable folding, manufacturing Chairs, tablet arm, manufacturing Church furniture, manufacturing Communion tables, wood, manufacturing Console panels, wood, manufacturing Draughting tables (without attachments), manufacturing Drawing tables and boards, artists', manufacturing Factory furniture (e.g., stools, work benches, tool stands, cabinets), manufacturing Furniture, beauty shop and barber shop, manufacturing Furniture, professional, manufacturing Furniture, store, manufacturing Hotel furniture, manufacturing Institutional furniture, manufacturing Library furniture, manufacturing Metal chairs, folding and stacking, auditorium or theatre (portable), manufacturing Motel furniture, manufacturing Pews, church, manufacturing Public building furniture, manufacturing Pulpits (except stone), manufacturing Racks, display, for merchandise, manufacturing Restaurant furniture, manufacturing Restaurant tables, manufacturing School furniture, manufacturing Ship furniture, manufacturing Stadium seating, manufacturing Stools, factory, manufacturing Store cabinets, portable, manufacturing Store furniture, manufacturing Theatre furniture, manufacturing Tool stands, factory, manufacturing Wood chairs, folding and stacking, auditorium or theatre (portable), manufacturing Work benches, industrial, manufacturing

337213 Wood Office Furniture, including Custom Architectural Woodwork, Manufacturing

Benches, wood office, manufacturing Bookcases, wood office, manufacturing Cabinets, wood office, manufacturing Chairs, wood office, manufacturing Custom-designed office interiors (i.e., furniture, architectural woodwork and fixtures), manufacturing Desks, wood office, manufacturing Filing boxes, cabinets and cases, wood office, manufacturing Modular furniture systems, wood office, manufacturing Office furniture, wood, padded, upholstered, or plain, manufacturing Panel furniture systems, wood office, manufacturing Stools, wood office, manufacturing Tables, wood office, manufacturing Visible record equipment (e.g., filing cabinets, boxes), wood, manufacturing

337215 Showcase, Partition, Shelving and Locker Manufacturing

Backs, furniture component (except plastic), manufacturing Bar fixtures, manufacturing Booths, telephone, manufacturing Butchers' store fixtures, manufacturing Cabinets, show, display and storage (except refrigerated), manufacturing Carrier cases and tables, mail, manufacturing


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Cases, display and fixture (except refrigerated), manufacturing Chair frames for upholstered furniture, wood, manufacturing Chair glides, manufacturing Chair seats, hardwood, manufacturing Commercial store fixtures, manufacturing Counter display cases (except refrigerated), manufacturing Counters and counter display cases (except refrigerated), manufacturing Counters, hotel, motel, restaurant, store and office, manufacturing Display cases and fixtures (except refrigerated), manufacturing Exhibition booths of wood, manufacturing Exhibition booths, manufacturing Exhibition booths, of metal, manufacturing Fixtures, store, manufacturing Frames for upholstered furniture, wood, manufacturing Frames, chair, metal, manufacturing Furniture components, porcelain enamelled, manufacturing Furniture frames for upholstering, wood, manufacturing Furniture frames, manufacturing Furniture legs, wood, manufacturing Furniture parts and components, plastic, manufacturing Furniture parts, metal, manufacturing Garment racks, manufacturing Lockers (except refrigerated), manufacturing Lockers (except refrigerated), wood, manufacturing Lunchroom fixtures, manufacturing Mailing racks, postal service, manufacturing Merchandise display racks and stands, manufacturing Office fixtures (except metal and wood), manufacturing Partitions (except free-standing), metal, office and store, manufacturing Partitions (except freestanding), wood, prefabricated, manufacturing Partitions, freestanding, metal, prefabricated, manufacturing Partitions, freestanding, wood, prefabricated, manufacturing Plastic furniture parts and frames, manufacturing Point of purchase display racks, wire, manufacturing Postal service lock boxes, manufacturing Racks, merchandise display and storage, manufacturing Seat cushions and backs for wheelchairs, manufacturing Shelving angles and slotted bars, manufacturing Shelving, office and store, manufacturing Showcases (except refrigerated), manufacturing Sleeper mechanisms, for convertible beds, manufacturing Sorting racks, mail, manufacturing Stands, merchandise display, manufacturing Stands, merchandise display, wire, manufacturing Window backs, store and lunchroom, prefabricated, wood, manufacturing Wire display racks, manufacturing

The following is a description of the NAICS codes described above97 321911 Wood Window and Door Manufacturing This Canadian industry comprises establishments primarily engaged in manufacturing wood doors and frames, and wood window units and frames, including those covered with metal or plastic.

97http://www.statcan.ca/english/Subjects/Standard/31-33.htm


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Exclusion(s): Establishments primarily engaged in:

• installing prefabricated windows and doors in buildings (23, Construction); and manufacturing metal windows and doors (332321, Metal Window and Door Manufacturing).

321919 Other Millwork This Canadian industry comprises establishments, not classified to any other Canadian industry, primarily engaged in millwork. These establishments generally use woodworking machinery, such as jointers, planers, lathes and routers, to shape wood. Establishments primarily engaged in seasoning and planing purchased lumber are included. Wood millwork products may be covered with another material, such as plastic. Exclusion(s): Establishments primarily engaged in:

• carpentry, including installing prefabricated stairs in buildings (23, Construction); and manufacturing dressed lumber from logs (32111, Sawmills and Wood Preservation).

321992 PREFABRICATED WOOD BUILDING MANUFACTURING This Canadian industry comprises establishments primarily engaged in manufacturing prefabricated or pre-cut wood buildings, sections and panels. All buildings that are made away from the construction site, either in sections, complete units, or in components for on-site erection, are included. Establishments primarily engaged in manufacturing log cabins and log houses are included. Exclusion(s): Establishments primarily engaged in:

• constructing wood frame buildings on site (23, Construction). 337110 Wood Kitchen Cabinet and Counter Top Manufacturing This industry comprises establishments primarily engaged in manufacturing wood kitchen cabinets, bathroom vanities, and counters, designed for permanent installation. 337121 Upholstered Household Furniture Manufacturing This Canadian industry comprises establishments primarily engaged in manufacturing upholstered household furniture. 337123 Other Wood Household Furniture Manufacturing This Canadian industry comprises establishments primarily engaged in manufacturing wood furniture designed for household use, except upholstered. Such furniture may be used in buildings other than private dwellings, for example in hotel rooms. Exclusion(s): Establishments primarily engaged in:

• manufacturing wood kitchen cabinets and bathroom vanities designed for permanent installation (337110, Wood Kitchen Cabinet and Counter Top Manufacturing); and manufacturing upholstered household furniture (337121, Upholstered Household Furniture Manufacturing).


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337127 Institutional Furniture Manufacturing This Canadian industry comprises establishments primarily engaged in manufacturing furniture designed for use in institutions such as schools, churches, restaurants and other public buildings. Establishments primarily engaged in manufacturing factory furniture, such as work benches and tool stands, are included. Exclusion(s): Establishments primarily engaged in:

• manufacturing laboratory and hospital furniture (339110, Medical Equipment and Supplies Manufacturing).

337213 Wood Office Furniture, including Custom Architectural Woodwork, Manufacturing This Canadian industry comprises establishments primarily engaged in manufacturing wood furniture designed for office use, such as office chairs and desks. Establishments primarily engaged in manufacturing custom designed interiors consisting of architectural woodwork and fixtures, primarily utilizing wood, are included. 337215 Showcase, Partition, Shelving And Locker Manufacturing This Canadian industry comprises establishments primarily engaged in manufacturing fixtures for office, store and similar applications, such as display cases, shelving and lockers. Establishments primarily engaged in manufacturing furniture parts and frames, for all types of furniture, are also included. Exclusion(s): Establishments primarily engaged in:

• manufacturing refrigerated cabinets, showcases and display cases (333416, Heating Equipment and Commercial Refrigeration Equipment Manufacturing).


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APPENDIX B – POST SECONDARY PROGRAMS Program Name Fine Furniture Institution/Source Camosun College Province British Columbia Contact Person Cameron Russell Web Site www.camosun.bc.ca/schools/tradesntech Address 4461 Interurban Road, Victoria, BC V9E 2C1 Scope of Program A 10-month pre-employment program designed to prepare students for

employment in the Cabinetmaking and Millwork trades, with classroom work and practical shop projects.

Description of Program The program is comprised of 4 components:

Module 1 - Woodworking: hand and power tools; fastening methods; selection and use of

adhesives Module 2 - Furniture Design: furniture history; preparation of working and presentation

drawings; elements and principles of furniture design, materials costing Module 3 - Furniture Construction: veneering; laminating and shaping curves; lathe turning;

carving and production methods Module 4 - Finishing: colour matching, bleaching, staining, filling and sealing; application of

top coats; renewing and removing old finishes; minor surface repairs and replacement parts.

Program Name Wood Products Processing Institution/Source University of British Columbia Province British Columbia Contact Person Robert Furst Web Site www.wood.ubc.ca Address 4040 - 2424 Main Mall, Vancouver, BC V6T 1Z4 Scope of Program The program offers both a B.Sc. and a M.Sc. designation designed to

produce graduates who will be capable of managing a wood products manufacturing facility which uses state-of-the-art computer driven manufacturing equipment. A co-operative education program is also offered which allows students the opportunity to gain work experience in the industry.

Description of Program Courses offered and topics covered include:

- Technical Communication: report preparation; business correspondence - Linear Systems and Differential Equations: linear systems, matrices; first and second order differential equations - Introduction to Manufacturing Business Economics: relationship of a manufacturing

enterprise and the business environment from an economic perspective - Wood Adhesives and Coatings


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- Wood Products Manufacturing: producing and joining lumber, edging, drilling, veneers and CNC

equipment - Industrial Engineering: work process analysis, time and motion studies, capacity

determination and coordination, and plant optimization - Quality Improvement - Mechanics of Wood Products: properties and strength of wood and wood products - Plant Layout and Design - Wood Products Marketing: industry structure, competitive environment and strategic options

of major segments of the North American wood products industry - Customer Research Methods - Wood Finishing: surface preparation, application equipment and properties of various

coatings - Advanced Wood Products Manufacturing: techniques for producing furniture and cabinets

including the design, production and use of jigs and fixtures for automated processing - CAD/CAM: computer-assisted design and manufacturing applied to secondary wood products

manufacturing

Program Name Continuing Education Program Institution/Source Centre for Advanced Wood Processing – UBC Province British Columbia Contact Person Iain Macdonald

Web Site www.cawp.ubc.ca Address 2900-2424 Main Mall Vancouver, BC V6T 1Z4 Scope of Program Continuing education program that combines classroom theory with

shop work in a broad range of specialized fields, with emphasis on specialized processing equipment and systems.

Description of Program Various workshops focusing on the following topics:

- quality control, management and teamwork - marketing for value-added wood products manufacturers - integrating and using advanced machines and processes - wood machining, tooling and problem analysis - kiln drying - traditional and advanced wood finishing - local and exotic wood veneering technology - equipment costing and selection - process design, layout and optimization


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Program Name Wood Products Manufacturing Institution/Source British Columbia Institute of Technology Province British Columbia Contact Person E.G. Worthy

Web Site www.mechanical.bcit.ca Address 3700 Willingdon Avenue, Burnaby, BC V5G 3H2 Scope of Program The program emphasizes wood science, log utilization, computer skills,

lumber tallying and grading, manufacturing techniques, process control, mechanical and electrical equipment and economics; management skills in areas such as problem-solving, supervision, cost control, product sales and distribution, and business communications. Students participate in an industry-sponsored project (practicum or directed studies) in the second year of the program. The industry project is an integral program component, which is required for completion and certification.

Description of Program Courses and topics covered include:

- Technical Communication: letter and memo writing; technical reporting; oral

presentations - Technical Mathematics for Wood Products Manufacturing: linear and quadratic

equations; plane and solid figure geometry; trigonometry - Management Engineering: analysis techniques; costing; Total Quality Management

(TQM); process improvement - Lumber Grading: tree growth and wood structure; species identification; classification of

products; recognition of characteristics found naturally and caused in manufacture - Wood Science: structure and properties of wood - Introduction to Forestry/Lumber Manufacturing: log harvesting technologies; methods

and equipment used in the manufacturing of lumber; primary breakdown and secondary milling processes

- Wood Products Industry Issues: internal and external factors that influence the forest industry; legislation relating to the industry; environmental concerns; world trade issues

- Statistics and Quality Control for Wood Product Manufacturing: examples from wood products manufacturing and research papers from the industry

- Wood Products Sales and Distribution: major domestic and export markets for lumber and plywood; sales process


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Program Name Woodworking Technology/Woodworking Technician Institution/Source Conestoga College Province Ontario Contact Person Mark Bramer

Web Site www.conestogac.on.ca/woodwork/woodprog.htm Address 299 Doon Valley Drive, Kitchener, ON N2G 4M4 Scope of Program The Woodworking Technician program is a two-year diploma program

emphasizing the operation of wood working machinery and equipment, breakout of lumber and panel components, laminating, veneering, machining, sanding, assembly and finishing. In the former program, more emphasis is given to management issues and computer applications. The Woodworking Technology program is a three-year co-op diploma program designed to provide students with a theoretical and applied knowledge of the technology and skills involved in the efficient and quality conscious manufacture of furniture, cabinets and architectural millwork.

Description of Program Courses offered include (Woodworking Technology and

Woodworking Technician programs):

- Drafting and Blueprint Reading (Woodworking Technology program only): - Finishing - Automated Manufacturing - Computer Drafting and Machining - Computer Applications in Wood Products - Numerical Woodworking Applications - Effective Supervision - Woodworking Techniques - Woodworking Facilities Planning - CNC (Woodworking) - Product Material Testing and Analysis - Computer Applications - Quality Control - Product Engineering - Product Design and Development - Shop Management - Architectural Millwork/Kitchen Cabinets Module

Program Name Bachelor of Applied Technology - Advanced Manufacturing Technologies- Wood and Composite Products

Institution/Source Conestoga College Province Ontario Contact Name Mike McClements Web Site www.conestogac.on.ca/woodwork/woodprog.htm Address 299 Doon Valley Drive, Kitchener, ON N2G 4M4 Start Date August 18, 2003 Scope of the Program The Advanced Manufacturing Technologies - Wood and Composite

Products (AMT-WCP) program is a new four year Applied Degree that offers applied learning and practical projects. It is geared to motivated


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individuals looking for challenging careers in the dynamic and growing advanced wood and composite products manufacturing industry.

This unique program is focused on the Engineering, Production and Management considerations in the High-tech Wood and Composite Products Industry. It offers a detailed study and evaluation of the principles, methods and applications needed for making technically sound decisions in manufacturing processes, physical properties of materials, advanced computer applications, a solid foundation in business considerations, and an exposure to liberal arts disciplines. This program combines up-to-date theory with practical hands-on training and real world experience. It offers the best of conventional classroom delivery with applied projects, industrial case studies, and co-op work terms. Throughout the four years of study, students will also apply their acquired technical skills to relevant business issues.

Description of Program:

Year 1 Integrated Projects Advanced Mathematics I Physical, Chemical and Mechanical Properties of Wood Product Design Development Fundamentals Solid Wood Processes and Machining Style in Scientific and Technical Writing Computer Fundamentals - Graphical Applications Physical and Mechanical Prop. of Composites and Laminates Product Engineering Wood Composites Processes and Machining Visual Media in Technical Communications

Year 2 Integrated Projects Analytical Geometry & Algebra Properties of Adhesives and Protective Coatings Architectural Documentation and Specification Architectural Products and Processes Evolution of Architectural and Furniture Style Computer Fundamentals for Manufacturing Control Properties and Processes of Non-Wood Materials Design for Manufacturability and Assembly Programmable Controls for Wood Products Processing Financial Management

Year 3 Integrated Projects Applied Mathematics II Advanced Tooling, Cutting and Abrasives Technologies Problem Solving in Wood Manufacturing Industrial Systems - Electrical and Fluid Power Fundamentals Business Economics Human Health, Ergonomics, Environment and SafetyProject Management: Methods and Tools Work Measurement Complementary Studies

Year 4 Integrated Projects Business Organization Marketing Fundamentals Operations Management I Facilities Planning and Management Business Analytical Methods Human Resource Management Operations Management II Quality Assurance: Methods & Management Law, Ethics & Professional Practice Complementary Studies


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Program Name Wood Processing Technology Institution/Source University College of the Cariboo Province British Columbia Contact Person Dennis Johnson

Web Site www.cariboo.bc.ca/tt/woodpro/wood.htm Address Box 3010, 900 McGill Road Kamloops, BC V2C 5N3 Scope of Program A two-year diploma program providing theoretical and hands on skill-

building experiences which will enable graduates to contribute to efficient, cost effective processing of BC wood products.


- Introduction to the Wood Processing Industry: interpersonal skills; technical writing and

communication skills; ergonomics; WCB regulations; WHMIS Training; forklift operation - Wood Science and Value-Added Products: structure and properties of various species of

wood; grading and drying technology; suitability, availability and supply of value-added products

- Woodworking Techniques and Equipment: traditional woodworking tools and equipment; machining; templates and fixtures; machine set up and maintenance

- Wood Product Design and Construction: basic drafting and sketching; hardware and joinery methods

- Adhesives and Finishing Technology: finishing options and adhesive characteristics - Wood Machining: machining finished wood products such as mouldings, flooring and

dimensional lumber - Architectural Millwork and Cabinets: value-added products such as cabinets, furniture,

millwork, raised panel doors, counter tops and hardware - CNC Woodworking Machines: CAD, CAM, CNC router and machining - Business Organization: marketing; incentives for productivity; international languages;

new product design - Machine Design: strength of materials and design of work stations; primary and

secondary assembly lines and wood products machines

Program Name Wood Products Engineering Technology Institution/Source Northern Alberta Institute of Technology Province Alberta Contact Person Paul Roberts Web Site www.nait.ab.ca Address 11762-106 Street NW Edmonton, AB T5G 3H1 Scope of Program A two year program emphasizing practical, hands-on experience as well

as theoretical courses. Designed to equip the student for a possible career as a supervisor, designer, planner or estimator in the wood processing industry.


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- Technical Mathematics: scientific notation, formula manipulation, area and volume calculations

- Wood Sciences: structure and grain of wood; drying of wood and cutting methods; production of veneers, plywood and manufactured wood products

- Handtools, Machines and Equipment: machine setups; safety; wood machining - Quality Control Implementation: competitiveness and its implications on quality of

products and services; management concept and tools to meet global challenges and customer satisfaction

- Construction Fundamentals: engineered wood products - AutoCAD - Technical Communication: basic listening and writing skills, oral presentations, task

instructions, letters and memos - Introduction to the Wood Industry: flow of materials from the forest to the secondary

forest products manufacturing sector; trends in wood utilization and resource allocation - Industrial Woodworking: computer numerical control (CNC) - Wood Design: analysis and design of basic timer structure components in sawn lumber

and glulam; columns and connection details - Marketing - Statistics - Finance: accounting; economics; cost control - Supervision

Program Name Fine Woodworking Institution/Source Selkirk College Province British Columbia Contact Person Michael Grace Web Site www.selkirk.bc.ca/programs/career/woodwork Address 2001 Silver King Road Nelson, BC V1L 1C8 Scope of Program The curriculum encompasses a broad overview of woodworking

operations and technology and prepares students for employment in the fields of furniture or cabinet making, designing and marketing of wood products, and other related fields.

Description of Program Courses and topic covered include:

- Stair Construction: requirements and methods to calculate, cut, and build comfortable stairs.

- Interior Finishing: door hanging and hardware; door and window casing; installation of baseboard.

- Woodshop Tools and Techniques: safe and skillful use of both hand and power tools, including their selection, purpose and maintenance; jig and fixture design

- Joinery Principles and Practices: principles of joinery as applied to furniture and cabinet construction; joint selection; joinery by both hand and machine tool processes

- Specialized Techniques: lumber milling provides; wood bending (steam and lamination); curved panels; veneering; turning; carving; inlay work


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- Materials Technology: properties of wood; principles of joinery. - Wood Finishing: applications of stains and dyes; fillers; penetrating finishes; top coats. - Furniture Design and Drafting: basic design theory; overview of the history of furniture;

sketching; drafting; model-making - Kitchen Design and Construction: space requirements and space utilization; face frame

and 32 mm cabinet construction - Marketing and Promotions

Program Name Wood Engineering Technology Institution/Source Southern Alberta Institute of Technology Province Alberta Contact Person Katherine Henry Web Site www.sait.ab.ca Address 1301 16th Ave. NW Calgary, AB T2M 0L4 Scope of Program A two-year program with an optional co-op term that offers a curriculum

centered on communications, math and physics along with elements of structural design, plant layout and design, industrial production and processes, and courses related to computer machine controls. Courses in human resource management are also offered.

Description of Program Courses offered include:

- Drafting - Project Planning - Statistics - Quality Assurance - Wood Sciences - Strength of Materials - Wood Manufacturing Fundamentals - Design of Wood Products - AutoCAD - CNC Theory for Wood Products - Engineering Economics - Production and Inventory Management - Automation Fundamentals - Facilities Planning

Program Name Wood Products Manufacturing Technology Institution/Source Red River College Province Manitoba Contact Person Aaron Koodoo Web Site www.rrc.mb.ca/woodpro Address 2055 Notre Dame Avenue Winnipeg, MB R3H 0J9 Scope of Program A 32 month, eight term program consisting of six academic terms and

two work experience terms in industry. Courses are designed to develop skills and knowledge in the following areas: quality assurance, production planning, management, computer & relevant software use, research & development, problem solving, communications, basic business practice, and industry-specific technical skills involving wood science, mathematics, cost estimation, wood finishing, machine operation & programming, basic jig and fixture design, and woodworking tools & techniques.


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Description of Program The courses and topics offered include:

- Finishing: finishing tools, techniques, and materials; application of paints, varnishes, stains, oils, shellacs, etc.

- Wood and Wood Related Materials: characteristics and uses of a variety of wood species; brokerage and sale of timber; manufactured wood products and related materials

- Applied Wood Science: properties of wood; growth patterns; wood classification; lumber drying; abrasives; adhesives

- Portable Power Tools - Technical Communications: technical and business letters; informal reports - Hand Woodworking Tools - Mathematics: measurement; conversions; formula manipulation; trigonometry - WHMIS Workshop - CNC Woodworking: Cartesian coordinate system; machine axes; g-code programming - Product Design and Development: kitchen and general casework; consumer furniture;

Architectural Woodwork Manufacturers Association of Canada (AWMAC) standards manual

- History of Furniture Design - Machining: safe and correct set-up, use, application and maintenance of machines used in

the wood manufacturing industry - Woodworking Techniques: woodworking joints; gluing and clamping; bending and

laminating wood; overlaying and inlaying veneer; basic upholstery; study of cabinet and furniture components

- Introduction to Business: marketing - Production Equipment: safety, application, setup and operation of production machinery - Wood Adhesives Technology - Introduction to AutoCAD - Quality Assurance - Supervisory Management: how to organize and delegate work; obtain and develop

employees; motivate employees; appraise employee performance; understand equal employment opportunity; promote safety and accident prevention

- Design for Manufacturing/DFX: creating designs that consider manufacturability, customer needs and satisfaction, cost, etc.

- Operations Management: employee work ethics; job progressions; deadlines; instruction in a sequential manner

Program Name Wood Processing Techniques/Wood Processing Technology Institution/Source Woodworking Center of Excellence – NBCC Province New Brunswick Contact Person Michel Sivret Web Site www.gov.nb.ca/ael/woodwork/contente.htm Address PO Box 187, Village Street Campbellton, NB E3N 3G4 Scope of Program The Wood Processing Techniques program is designed to prepare

students for various jobs in industries related to secondary wood processing. Students will acquire knowledge of the preparation of wood, the use and maintenance of a wide range of specialized machines, blueprint reading, computer training, industrial engineering and entrepreneurships.


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For students who have successfully completed the Wood Processing Techniques program, the Wood Processing Technology program focuses mainly on the fundamentals of management, engineering, CNC programming, industry regulation systems and computer training. Both programs are 40 weeks in duration and offer work practicums.

Description of Program

The Wood Processing Techniques program offers the following courses:

- Hand Tools and Measuring Tools - Portable Power Tools - Wood Preparation Tools - Wood Composite Panel Preparation Tools - Machining Tools - Computerized Tools (CNC) - Assembling and Sanding Tools - Finishing - Materials - Introduction to Microcomputer

The Wood Processing Techniques program offers the following courses:

- AutoCAD - CNC - Financial management - Management of Personnel - Cost estimation - Shop management - Regulation systems; pneumatic, hydraulic and electric

Program Name Industrial Design Institution/Source Ontario College of Art & Design Province Ontario Contact Person Lenore Richards Web Site www.ocad.ca Address 100 McCaul Street Toronto, ON M5T 1W1 Scope of Program This program includes the design of furniture, lighting, consumer and

commercial products, signage and wayfinding, interface design, exhibits and merchandising. The goal is to prepare students to actively engage in the industrial design profession.

- Computer Aids Design (AutoCAD)- Drafting Fundamentals - Human Relations - Stationary Power Tools - Industrial Engineering - Quality Assurance - Introduction to Entrepreneurship - First Aid - WHMIS - Occupational Health and Safety

- Material handling - Selection of equipment - Advanced courses in machining - Materials - Assembling - Industrial engineering - Products engineering


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Description of Program Only a minor emphasis on wood product manufacturing:

- Furniture Explorations: fundamentals of furniture design; materials and techniques for

furniture production - Contract Furniture: materials and methods for mass production of residential/commercial

high production furniture. Program Name Industrial Woodworker Apprenticeship Program Institution/Source Ministry of Training, Colleges and Universities Province Ontario Contact Person Web Site www.edu.gov.on.ca/eng/training/training.html Address Scope of Program A 4-year apprenticeship program. Description of Program Construct and repair cabinets, furniture, fixtures and related

products; selects materials, reads and interprets blueprints and construction drawings; costs units; operates machinery

Program Name Techniques d'ébénisterie et de menuiserie architecturale Institution/Source École du Meuble de Montréal Province Québec Contact Person Norman Giroux Web Site www.cgpvicto.qc.ca/montreal Address 5445, De Lorimier Montréal, QC H2H 2S5 Scope of Program A 3-year diploma program intended to develop the practical skills

associated with the furniture manufacturing industry. Graduates of this program will be able run their own company or enter management positions within the cabinet industry.

Description of Program Topics covered include:

- Numerical control - Cost and production control - Woodworking tools - Furniture manufacturing - Woodcarving

- Architectural joinery - Technical drawing - CAD - Supervision - Acommunication, leadership and organization


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Program Name Techniques du meuble et de l'ébénisterie Institution/Source École québécoise du meuble et du bois ouvré Province Québec Contact Person Web Site www.cgpvicto.qc.ca/html/eqmbovic.htm Address 765, Notre-Dame Est Victoriaville, QC G6P 4B3 Scope of Program The diploma programs focus primarily on furniture and cabinet

construction. Description of Program Topics covered include:

- English - Mathematics - Furniture assembly - Hand/portable tools

Program Name Wood Products Minor Institution/Source University of New Brunswick Province New Brunswick Contact Person D. Lewis Web Site www.unb.ca/departs/forestry/undergraduate/undergrad-fsAddress PO Box 44555 Fredericton, NB E3B 6C2 Scope of Program The Wood Products Minor is designed for undergraduates who wish to

obtain knowledge of engineering, wood science and technology and wood products marketing. Graduates will have the qualifications necessary to work with private and government wood research laboratories, wood products producers, furniture manufacturers, and forest products companies.


- Management of Quality Assurance: fundamentals of quality assurance and quality circles;

specifications and tolerances; quality costs and design; quality and reliability testing; quality assurance standards recognized by the Canadian Standards Association

- Wood Technology: molecular, cell wall and anatomical structure of wood; relative density, dimensional changes and moisture effects; measuring industrial wood products

- Physical and Mechanical Properties of Wood: strength and thermal properties; electrical conductivity; the movement of moisture in wood; effects of strength-reducing defects; stress grading

- Marketing of Products and Services Provides: product development; promotional design; distribution; pricing/budgeting determination; strategic analysis; communication skills; client/customer relations; considerations for the small business environment.

- Processing of Wood Products: processing of wood to make primary and secondary products; modern structural composites

- Drying & Preserving Wood: kiln drying theory and practice; preservative treatment and sapstain control processes and chemicals; properties of treated wood.

- Numerical control (CNC) - Quality control - CAD


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Program Name Furniture Technician Institution/Source Algonquin College Province Ontario Contact Person George Rothschild Web Site www.algonquincollege.com/trades Address 1385 Woodroffe Avenue Nepean, ON K2G 1V8 Scope of Program This 48 week diploma program is designed to provide students with

knowledge of wood technology and the skills needed for wood machining practices, geometric layout, and joinery. These skills are applied to the construction of traditional and contemporary furniture as well as exposure to CNC techniques.


- English: communication skills (writing, information technology, speaking); communication

of technical information - Mathematics: manipulating fractions; calculating properties of shapes and solids; ratios

and proportions; percentages - Joinery: hand tools, portable power tools and basic machinery; fundamentals of wood

joinery and assembly procedures; machine and shop safety - Wood Technology: principles of tree growth; cell structure of wood; conversion and drying

of wood; lumber grading; production processes used in the manufacture of composite materials; calculations of board footage, linear footage and square footage of materials

- Hand Tools and Machine Basics: origins and functions of the various hand tools used in the trade; safe and proper use of basic machinery

- CNC for Cabinet and Furniture Manufacturing: introduction to computers and their use in the design and manufacturing of furniture components and cabinetry; programming and operating a CNC (Computer Numerically Controlled) Machining Center

- Furniture Making: preparing cutting lists; basic and advanced furniture construction techniques; advanced machining operations; creation of jigs and templates

- Advanced Machining: introduction to advanced machine functions; specialized features and joinery practices; machinery used for the processing of sheet stock

- Furniture Construction: advanced joints and their selection for particular applications; the construction of basic and advanced cabinetry; furniture styles as they relate to traditional woods and construction methods; cabinet hardware

- Business Practices: development of a product and its marketing; the impact of ethics and cultural attitudes to work; government laws that apply to small businesses

- Furniture Finishing and Touch-up: materials, applications, and equipment necessary to apply surface coatings to furniture according to trade specifications.

- Furniture and Commercial Cabinetry: operation of precision equipment designed to dimension and machine furniture components using the 32 mm system of construction; assembly and installation procedures

- Commercial Cabinetry: overview of commercial applications of furniture construction techniques including construction materials and techniques used in commercial cabinetry and kitchen cabinets; drilling patterns used in the 32 mm system; identification and application of hardware compatible with the 32 mm system

Program Name Furniture Technician - Production and Design


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Institution/Source George Brown College Province Ontario Contact Person Frank Belluomini Web Site www.gbrownc.on.ca/Marketing/FTCal/creat/F103.html Address 160 Kendal Avenue Toronto, ON M5R 1M3 Scope of Program This two-year program gives students exposure to the furniture trade,

including upholstery, woodworking and finishing. Description of Program Courses and topics covered include:

- College English - Mathematics: basic arithmetic; pricing; costing - Upholstery: methods of springing; stuffing; diamond tufting; tying coil springs; procedures

for recovering, stripping, repairing springs and frame; repadding; retyping springs; reconstructing cushions (foam, springs or loose fillings); measuring, cutting, sewing fabric

- Technical Drawing/AutoCAD - Cabinet Making and Wood Machining: drawing, layout and preparation of cutting lists of

elementary projects; woodworking hand and power tools; woodworking machines; fitting, assembly, clean-up and surface preparation of machined projects

- Woodworking Theory and Materials: woodworking theory with a focus on lumber, seasoning, defects, hardwood, grading, veneers, plywood, fasteners, adhesives, saw blades and grinding stones; finish hardware; machine joinery; industry standards for kitchen cabinets; chair theory; interior trim; paneling; stair terminology; calculations; layout; handrail systems; door and window construction

- Upholstery Theory and Materials: terminology, communication, material and tools related to manufacturing of upholstered furniture; upholstery fabric; pattern making; fibre sources; fabric cutting techniques

- Furniture Finishing: introduction to finishing materials; health and safety precautions; surface preparation; a simple finishing schedule; mixing and applying various types of stains; application of various coating materials; an introduction to spraying equipment; rubbing schedules; applying various types of clear coatings; finishing of open grain woods; finish repair; introduction to burn-in and touch-up materials

Program Name Industrial Woodworking Technician Institution/Source Humber College Province Ontario Contact Person Mark Paddison Web Site appliedtechnology.humberc.on.ca Address 205 Humber College Boulevard Toronto, ON M9W 5L7 Scope of Program The Industrial Woodworking three-semester accelerated diploma

program provides students with the knowledge and skills to construct cabinets and fine furniture using recognized, traditional trade practices and new technologies.


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- Technical Communications - Cabinet Construction - General Drafting and Blueprint Reading - Woodworking Machinery - Materials - Finishing - Fundamentals of Joinery - Introduction to CAD - Cabinet Construction - Computerized Routing - Woodworking Machinery - Operating Your Own Business - Computer Applications - Shaping Operations - Bending and Laminating Methods - Installation, Site Work and

Repairs Program Name BC Wood Training Program Institution/Source BC Wood Value-Added Development Centre Province British Columbia Contact Person Henk Gauw Web Site www.bcwood.com Address #1-31088 Peardonville Road Abbotsford, BC V2T 6K5 Scope of Program Offers a variety of training programs that provide participants with

opportunities to acquire the basic skills needed to enter the value-added wood products industry. Also offers a number of programs for Canadian value-added manufacturers.

Description of Program Courses and topics include:

- Doing Business in the USA: marketing and distribution strategies, customs and

immigration procedures, accounting and taxation considerations; setting up a USA business identity

- The Industrial Supervisor: dealing effectively with problem employees; discipline - when and how; alternative corrective action; attendance management; human rights issues; grievances/conflict management

- Better Employee Relations: management's rights; investigations/interviews; occupational health and safety issues; employment standards; enforcement policies/procedures

- Selling Value-Added Wood Products Successfully: successful personal selling strategies; generating buy-in (motivation); the 10-step sales process; prospecting/account segmentation; research/setting objectives; effective communication skills; negotiation skills; goal setting; developing an effective presentation

- Wood Products Manufacturing Entry Level Training: overview of the BC forest industry; overview of the value-added wood products manufacturing industry; employment opportunities in value-added wood manufacturing; introduction to Workplace Hazardous Materials Information System (WHMIS); Worker's Compensation Board (WCB) regulations; materials handling; forklift certification; First Aid; resume and cover letter writing; job search techniques; overview of the remanufacturing sector; overview of the cabinet, millwork and furniture sectors; operating power tools and woodshop machines; finishing techniques; wood joinery


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Program Name Wood Processing & Engineering Technology Program Institution/Source College of New Caledonia Province British Columbia Contact Person Joseph Cvenkel Web Site www.cnc.bc.ca/wood Address 3330 - 22nd Avenue Prince George, BC V2N 1P8 Scope of Program The program is designed to complement local needs and fit into the

spectrum of similar programs in the province. Students have an option of completing one year of the program (Wood Processing Technician Program) or to continue for the second year to obtain the Wood Processing and Engineering Technology Diploma.


- Applications of Mathematics for Wood Technology - Communication Skills: human relations; product service; report writing; oral presentations - Wood Technology: sawmilling; craft development; operation of manufacturing and

processing equipment - Wood Working Techniques: identification of wood; drying of wood using a kiln - Introduction to the Forest Sector: BC perspective on global wood and wood products

supply - Manufacturing and Quality Control: ISO 9000 certified process and the process of

certification - Wood Machining and Tooling Technology: mechanics of cutting and machining of wood

fibre - Wood Gluing and Finishing Technology: fundamentals of wood structure and chemistry of

adhesives; WHMIS - Information Systems Technology: Internet communications - Computer Controlled Wood Manufacturing: CAD and MasterCam software; Precix CNC

machine - Engineered and Composite Wood Products - Management and Supervisory Principles: interpersonal skills and human behaviour - Industrial Design - Product Development and Marketing: principles of markets - Product and Production Costing: operating costs; capital costs; depreciation; financial

forecasting; financing; taxes - Alternative Wood Products


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Program Name Wood Products Manufacturing Technology Institution/Source Lambrick Park Secondary School Province British Columbia Contact Person Roger Conrod Web Site lambrickpark.sd61.bc.ca/lambrick/woodshop/woodmain.html Address 4139 Torquay Drive Victoria, BC V8N 3L1 Scope of Program The Wood Products Manufacturing Technology Career Program

provides students with a broad-based practical and theoretical background in the millwork/joinery, cabinet making, furniture making, and value-added manufacturing industry. The program gives students entrepreneurial experience through operating the shop like a small business and a career preparation program.

Description of Program The program includes coursework related to:

- Career awareness and educational opportunities - Cabinet making and millwork/joinery technology - Finishing - Shop and machine safety - Modern materials and processes - Care and set-up of production machines - The use of jigs for increased production and quality - Value added or marginal added wood products manufacturing - Quality control

Program Name Furniture Program Institution/Source Sheridan College Province Ontario Contact Person Robert Diemert Web Site www.sheridanc.on.ca/academic/arts/craftsdesign/furniture Address 1430 Trafalgar Road Oakville, ON L6H 2L1 Scope of Program A three year diploma course that deals with the design and construction

of furniture and related objects, primarily made of wood, with the potential to involve other materials like cast and fabricated metals, plastics, glass, or stone.


- Introduction to Woodworking - Surfaces and Finishes - Wood Furniture Introduction - Materials and Techniques - Furniture History - CAD - Drafting for Furniture - Commercial Furniture Practices - Design and Construction - Seating


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Program Name Wood Products Design Institution/Source Kootenay School of the Arts Province British Columbia Contact Person Peter Galonski Web Site www.ksac.bc.ca/wood.html Address 606 Victoria Street Nelson, BC V1L 4K9 Scope of Program A three year program with an emphasis on designing wood products for

manufacture and marketing across Canada and abroad. The main focus is on the design of furniture, architectural elements and accessories, and construction of prototypes as part of the product development cycle.


- Intro to Design - Design Presentation - Wood Product Design - Design Seminar - Design Process - Product Development - Wood Products Design Studio and Professional Development - Professional

Development Program Name Bachelor of Design (Industrial Design Major) Institution/Source Emily Carr Institute of Art & Design Province British Columbia Contact Person Christian Blyt Web Site www.eciad.bc.ca/eciadMain/programs/html/industrial.htm Address 1399 Johnston Street Vancouver, BC V6H 3R9 Scope of Program This three year program includes courses that address subject areas

such as ergonomics, materials, production technology, digital imaging, design for production, design for electronics, furniture design, and soft design. A new series of courses that focus on innovative wood products development was initiated in the Fall 2001 term.

Description of Program Courses specifically related to wood products include:

- Introduction to Wood Manufacturing: fundamentals of design and manufacturing

techniques; traditional and CNC techniques - Wood Techniques and Technologies - Wood Product Development - Advanced Wood Product Development: originating new products through new processes,

materials, and technologies - Wood Science: mechanics and structure of wood; treatment and manipulation of wood

fibre - Shop Techniques and Materials: workshop tools and machines; safety issues - CAD


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Program Name Bachelor in Wood Design Institution/Source Laval University Province Quebec Contact Person Dr. Michael Beaudoin Web Site http://sbo.for.ulaval.ca/abacc.htm Address Pavillion Abitibi-Price, Laval University, Quebec, Canada, G1K 7P4 Scope of Program A cooperative program in wood science that alternates between work

terms in the industry and studies. The program concentrates on modern wood transformation techniques and their development in competitive economy. The program teaches students fundamental science as well as their application in a context of industrial planning and managing.

Description of Program Courses include:

Fundamental science and engineering: - Mathematics - Chemistry - Computer science - Strength of materials - Thermodynamics

Wood Science: - Understanding of wood anatomy, physics, mechanics, and chemistry - Wood transformation - Wood drying and preservation - Uses of wood and wood products

Economy: - Management - Operational research - Accounting


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Program Name Cabinet Carpentry, Furniture & Woodworking Technology Institution/Source Nova Scotia Community College Province Nova Scotia Contact Person Adrian Wilson Web Site http://www.nscc.ns.ca/Programs/CabinetCarpentry.html Address 39 Acadia Avenue, P.O. 820, Stellarton, Nova Scotia B0K 1S0 Scope of Program The Cabinet Carpentry program develops skill and knowledge in

all aspects of the trade: identifying and selecting stock, using woodworking machines, hand tools, as well as safety and blueprint reading. Instruction and practice includes shaping and cutting wood to close tolerances. In addition to assembling components, students install fasteners and hardware, and prepare articles for finishing.

Description of Program The Furniture and Woodworking Technology program provides the

student with instruction and practice in the design and manufacture of custom made furniture and cabinets for home and office use.

Cabinet Carpentry Program Outline:

- Maintaining and Using Hand Tools - Laminating Techniques - Identifying, Selecting & Storing of Wood and Materials - Preparing Surfaces for Finishing - Shaping Wood and Materials - Safety Procedures - Layout, Sketching, and Reading Blueprints - Small Business Management - Using Woodworking Machinery - Applied Mathematics & Science - Assembling Materials - Communications

Furniture and Woodworking Technology Program Outline:

- Introduction to Shop - Computer - Fundamentals - Identify materials - Frame and panel construction - Hand tools - Drawer construction - Layout and cutting Lists - History of furniture design - Shop equipment - Furniture cabinet hardware - Installing millwork - Review shop equipment - Finishing - Math - Blueprint reading -AutoCAD - Communications - Fundamentals


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APPENDIX C – SECTOR INITIATIVES The proliferation of sector initiatives has followed the general push to develop and support Canadian manufacturing. The increase in sector awareness and the increased competition from foreign sectors has lead to a growing number of initiatives from both industry and government. The federal government offers sector support in a variety of ways. For the household furniture industry, several specific measures, from the provision of special activity grants to statistics and information for business research, have been taken. A partnership between the Department of Foreign Affairs and International Trade and Industry Canada aids in international market development through buyers’ missions, trade shows, market studies and educational seminars. Human Resources Development Canada (HRDC) has supported the establishment of the Wood Manufacturing Council. In Eastern Canada, the Atlantic Canada Opportunities Agency (ACOA) recently undertook an overview of the current state of the value-added component of the industry and the barriers to growth. Initiatives have addressed the coordination of resource allocation. Ontario’s recent “Forest Accord” and the “Living Legacy Trust” are designed to complement existing strategies for protected forest areas, and the Trust has the official mandate to promote advanced wood products manufacturing, though only $7 million of the $30 million is for that purpose. Forest Renewal BC had targeted $22.4 million to its value-added program in 1998/199998 and invested over $50 million in total between 1996 and 2002. Many of the sector initiatives are industry-specific. The national trade association for the furniture industries is the Canadian Council of Furniture Manufacturers, a non-profit umbrella organization based in Winnipeg. Furniture trade shows have become very important activities for regional associations, and are important venue for sales to retailers. Associations use show revenue to finance many of the services they provide. Internationally, effective marketing has been undertaken by pooling government and industry resources, as in the cases of Oregon’s Northwest Wood Products Association (NWPA) or the Malaysia Timber Council (MTC). The following is a list of the principle associations and initiatives that support the sector. Some of the British Columbia associations/initiatives listed were sponsored by Forest Renewal BC, which was eliminated by the BC government on March 31, 2002. Where no specific program information was available, the association has simply been listed. 1. AKTRIN Furniture Research Center www.furniture-info.com

AKTRIN Research Institute was founded in 1985, with the purpose of writing and publishing industrial and economic reports. Since 1988 AKTRIN has been fully dedicated to the secondary wood products industry. AKTRIN’s furniture division produces a handbook on furniture manufacturing and marketing, statistics on a wide range of industry aspects and provides consulting services. Most of their research is done in-house, but they also maintain an international network of associates, including universities.

98 Forum Consulting Group, 1999. Jurisdictional Review: Policies and Incentives to Promote Investment in Secondary Wood Manufacturing. Forest Enterprises Branch, BC Ministry of Forests, 17.


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AKTRIN is involved in several major trade associations, is focused on research for both Canada and the United States, and is based in Ontario and North Carolina.

2. Architectural Woodwork Manufacturers Association of Canada

www.awmac.com

AWMAC’s objectives are to promote the interests of persons, firms and corporations engaged in the business of manufacturing, supplying and/or installing architectural wood products in Canada. Their activities include: improving public relations for the industry; promoting a close liaison between members and suppliers; securing uniformity in usage, custom and trade conditions of those engaged in the industry; formulating and encouraging an educational program for the training of millwork employees; and promoting legislation affecting the industry. The association has chapters located in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Atlantic Canada.

As a result of a member questionnaire conducted in 2001, AWMAC has focused on developing and delivering in-house training programs for members. A Dacum has been developed to train estimators, foreman and drafts people. They are currently searching for funding to develop modules, design new and evaluate existing courses for the Dacum. AWMAC is re-writing its Quality Standards Manual in conjunction with the US Architectural Woodwork Institute. The Guarantee and Inspection (GIS) program monitors specified AWMAC Quality Standards. Presently, AWMAC is involved in a nation wide implementation of its GIS program. GIS inspector training is required to ensure that projects meet specified standards before a two-year guarantee is issued to its members in good standing.

3. Canadian Council of Furniture Manufacturers

The Canadian Council of Furniture Manufacturers was incorporated in 1965 by the three regional furniture manufacturer's associations: the Q.F.M.A, the O.F.M A., and Furniture West Inc. whose members are engaged in the manufacture of residential furniture. CCFM acts as an umbrella organization in matters of national industry concern with various federal government departments. For example, the CCFM administers the UFAC voluntary upholster flammability program that the industry has in place with Health Canada, Consumer Products Safety Directorate.

4. Canadian Kitchen Cabinet Association

www.ckca.on.ca Founded in 1968, the CKCA promotes the interests and conserves the rights of manufacturers of kitchen cabinets, bathroom vanities and related millwork, and their suppliers/dealers throughout Canada. CKCA holds an annual National Forum and Regional Meetings throughout Canada to address industry issues and tour manufacturing plants. The Association provides members with relevant information and statistics and holds workshops on such topics as productivity, plant design, qualifications for various occupations/positions, product trends/colors, markets/marketing, exporting, and motivational seminars. CKCA is active with OFMA in establishing and promoting safety standards and helped to produce a safety manual. CKCA promotes educational opportunities and believes that employee recruitment and training is of prime importance. CKCA does not directly fund projects, but supports relevant initiatives.


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5. Canadian Window and Door Manufacturers Association

www.cwdma.ca The CWDMA's represents and supports all aspects of the window and door manufacturing industry, including formulating and promoting high standards of quality in manufacturing, design, marketing, distribution, sales and application of all types of window and door products. Association services include: supporting national standards, promoting the harmonization of Canadian and international standards; supporting national certification programs; networking with associations and governments; providing technical information to members; promoting industry-related research; and providing members with opportunities to meet and discuss industry matters. CWDMA developed the "Sill to Sash" program which provides information to consumers and industry sales representatives on technical aspects of fenestration products. This includes an informational video (available July 2002) and a national seminar program. A CD-ROM for sales representatives provides industry information, and will be supported by seminars.

6. Canadian Wood Council www.cwc.ca The CWC is the national association representing Canadian manufacturers of wood products used in construction. Their mission is to ensure market access in order to maintain and expand North American markets for Canadian wood products. CWC ensures this market access by working in codes and standards, producing and communicating technical information, and coordinating special programs such as “Wood is Good” and the “Wood WORKS!” Project. The Council also offers continuing education courses, such as online seminars and professional development courses, to assist students and construction professionals in gaining industry related training. The CWC provides approximately 30,000 hours of training per year through its continuing education programs, mostly through "Wood Solutions Fairs" and lunch seminars, which are focused on wood products engineering and design. CWC also offers distance education programs that count as a credit course for university-level Wood Engineering, and online seminars aimed at builders, engineers, architects, etc.

7. Forintek Canada www.forintek.ca

As Canada's national wood products research institute, Forintek’s role is to support the forest products industry in meeting customer's expectations of performance, durability and affordability. Based on priorities identified by the forest industry and governments, Forintek delivers technological solutions in such areas as lumber, panels, and other value-added wood products manufacturing processes or attributes, wood drying and protection, and building systems. The institute also conducts market intelligence studies and helps develop both national and international building codes and standards. Its scientists work closely with organizations worldwide. Forintek has taken a lead role in the establishment of a number of Industrial Chairs in collaboration with various Canadian universities. These networks and partnerships allow Forintek to identify emerging innovations and market trends worldwide. The institute supports industry R&D initiatives while ensuring that wood products are given due recognition by building codes and standards-setting bodies around the world. Forintek partnered with BC Wood to deliver gluing courses, and provided an expert instructor. Until recently, Forintek offered many lumber drying courses, and worked with the Northern BC and Alberta Kiln Drying Association. Today they still offer drying


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correspondence courses and the "KD Expert" drying program software. Forintek holds seminars and workshops on such topics as panel product manufacturing.

8. National Furniture Council 9. WoodLINKS

www.woodlinks.com

An industry/education partnership dedicated to promoting careers in the BC wood products industry, WoodLINKS provides career/educational information such as job profiles, descriptions of possible positions within the secondary wood products industry, and advice on how to get wood industry jobs. WoodLINKS works with high schools, post-secondary institutions and industry to develop wood manufacturing programs in schools and provides practical training opportunities, career counseling and information for students and teachers. They also offer industry statistics and a directory of wood products companies. WoodLINKS partnered with the College of New Caledonia to deliver training for people already in the industry. There is increasing interest from manufacturers in the WoodLINKS certification program and how it can be adapted to existing workers. WoodLINKS is seeking funding, developing the program, and waiting for the opportunity to begin this training.

10. Wood WORKS! www.wood-works.org

This is a national industry-led initiative of the Canadian Wood Council and industry to promote the increased use of wood in commercial, industrial and institutional construction. It uses a targeted pilot site approach, to create a "Build with Wood!" culture in each site by launching an extensive "Think Wood!" campaign targeting politicians, government ministries, municipal and provincial governments, business leaders, architects, engineers, builders, specifiers, building officials and the community. This campaign is accompanied by information, education and technical assistance. Member companies are given several opportunities to distribute their literature and/or have their products displayed at Wood WORKS! Events, which include trade shows, educational seminars and presentations.

11. Wood Products Group www.woodproducts.nb.ca

The Wood Products Group is a not-for-profit association mandated to represent, promote and advance the interests of specialty and value-added wood product companies in Atlantic Canada. It serves as a linkage among a wide network of members, their customers and suppliers, financial companies, R&D labs, training agencies, transportation companies, and federal and provincial governments. The Group promotes strategic supply and marketing partnerships among members, enabling them to jointly pursue business opportunities too large to carry out alone. It offers a number of services including: networking with manufacturers, customers, suppliers, R&D providers, financial service companies and transportation companies; trade and technical missions; industry related conferences and plant tours; a credit insurance program; transportation and logistics management; and reduced rate equipment leasing. In November 2001, WPG delivered a seminar on improving yield in value-added hardwood operations. In 1997-1998, a two-day workshop was held as part of a Gluing Wood Products Technician


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course, which was followed by six months of home study and an exam. Graduates earned an industry-recognized certificate. In 1998/99, the WPG partnered with the Woodworking Centre of Excellence to deliver ten Industry-related courses involving skill-based and technical knowledge. Funding was provided by the New Brunswick government, but the courses were eventually cancelled.

12. New Brunswick Forest Products Association www.nbforestry.com The NBFPA is a non-profit organization that represents its forest industry members by serving as a common voice in relations with the government and the public. It includes almost 100 members that are made up of pulp, paper, and solid wood manufacturing companies, as well as consultants, contractors, dealers, institutions, and individuals. NBFPA assists members by: providing current information about the forest industry to industry and the general public; researching, analyzing, and communicating emerging issues; and promoting sustainable forest management, forest protection and forest products through the advancement of research and the application of new information and technology. Training programs, networking opportunities, and information sharing are among the membership benefits.

13. Centre de Recherche Industrielle du Québec

www.criq.qc.ca

Since its inception, CRIQ has developed more than 40 different types of equipment for primary and secondary wood processing mills for the purpose of increasing productivity and recovering value-added products.

14. Quebec’s Comité sectoriel de main-d'oeuvre des industries des portes et fenêtres,

du meuble et des armoires de cuisine www.clicemplois.net

This sectoral committee is a joint effort of the Quebec Furniture Manufacturers Association, the Quebec Window and Door Industry Association, and the Quebec Kitchen Industry Distributors and Manufacturers Association, and is supported by the province through Employment Quebec. Its purpose is to promote the Industry within Quebec and raise its profile among young people, with the goal of increasing recruitment into training institutes and the industry workforce. The Comité sectoriel has conducted a great deal of research into the human resource needs and practices of Quebec firms, and has both current and future projects. Its Internet website provides information on the Industry, training programs, and possible career opportunities, plus case studies and interviews with industry stakeholders. The Comité sectoriel acts as an Industry advocate with governmental and regulatory agencies. The focus of the Comité sectoriel is the promotion of the Industry, especially to secondary and post-secondary school students and candidates, and the analysis of human resource and training needs of Quebecs Industry. They have a joint website with Employment Quebec that receives over 10,000 hits monthly and provides Industry profiles and training information.


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15. Associated Kitchen Industry Manufacturers and Distributors of Quebec

The Association holds on-the-job training seminars for employees on cabinetmaking, shop carpentry, finishing, and CNC operation. They support training programs in secondary schools and colleges, and are a liaison between employers and schools regarding job placement and co-op programs.

16. Quebec Furniture Manufacturers Association www.afmq.com

The QFMA serves as an umbrella group for nearly 200 furniture manufacturers and partners in the Quebec furniture industry. The Association offers a number of services including: promoting occupational health and safety and workforce development; promoting furniture manufactured by its members through a product labeling program at point of sale with a QID (Quality, Innovation, Design) label; organizing public relations and advertising campaigns; assisting exporters by organizing trade missions and providing contacts with buyers and product promotion; maintaining close links with academic institutions; forwarding requests by consumers, buyers and suppliers directly to members; and organizing the semi-annual Toronto International Home Furnishings Market trade show.

17. Quebec Kitchen Industry Distributors and Manufacturers Association

www.kitchenweb.com/participants/cuisi_pro Guided by a mandate to improve the industry while protecting the consumer, the Association provides members with a range of information regarding industry statistics, health and safety issues, and training.

18. Quebec Window and Door Industry Association

www.windoorweb.com/aipfq Representing 120 member companies, QWDIAs mission is to assemble and represent all businesses in the Window and Door Industry and promote and defend their interests. Organizing missions and trade shows, offering a group insurance service, and conducting customized research are among the services QWDIA offers its members. They hold an annual congress, and the 2002 theme is industry human resource issues, recognizing the increasing retirement and difficulty in recruiting skilled workers. The congress theme was "We Hire," based on the banner signs posted by Quebec firms desperate for employees. Retention of workers is also a congress issue.

19. Quebec Wood Export Bureau www.quebecwoodexport.com

The Q-WEB objectives include: to consolidate existing markets by increasing overseas customer awareness and confidence in the commitment of Quebec wood manufacturers to export a reliable and high quality product; to identify and quantify new specific overseas markets where potential exists for Quebec value-added wood products and to introduce member suppliers to those individual markets compatible with their product potential; and to provide the market information necessary to assist suppliers in producing according to a variety of overseas market needs.


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20. Ontario Furniture Manufacturer's Association

www.ofma.ca

The OFMA a not-for-profit organization dedicated to serving a core group of prominent furniture manufacturers and their partners in Ontario. The Association offers many member services including: monitoring and developing marketing data pertinent to the furniture industry and coordinating consumer and retailer programs; sponsoring the Trillium Awards Program which recognizes achievements in marketing, design and construction of Canadian residential furniture; assisting with export promotion and marketing; enhancing awareness of the industry through media relations; offering an International Fabric Freight Consolidation Program which reduces transportation costs; coordinating technical seminars; assisting in the development of industry training programs; providing consultation to colleges and the Ontario Ministry of Education and Training to ensure appropriate human resource development programs are provided; and informing government officials as to the status of the industry and the economic impact of proposed government legislation on the industry. OFMA is active in safety training with the Industrial Accident Prevention Association and the Workplace Safety and Insurance Board (WSIB) of Ontario. Forty companies from various industries meet five times annually and each chooses five areas of focus for safety improvements. Some firms have noticed a dramatic improvement in their safety records, and companies are given bonuses and premium rebates if they have success in this area. The OFMA also facilitates WSIB presentations, and has recently focused on coverage for sales representatives, a group that is often overlooked. The Association has partnered with Conestoga College to provide two-day seminars on finishing, furniture construction, tooling, and other topics. In the past, the OFMA has delivered training on environmental issues with respect to substances used in the Industry, but no longer focuses on this because of low staffing levels. The Association is also heavily involved with the Upholstered Furniture Action Council (UFAC), and assists manufacturers with aspects of this program. OFMA links with the Canadian Executive Service Organization (CESO), a volunteer organization that provides volunteer advisors (largely retired executives) to First Nations groups to assist their business endeavours.

21. Furniture West Inc. www.furniturewest.ca Furniture West’s mission is to represent the common interests of members in Western Canada. On behalf of its members, they offer a variety of programs including: an annual home furnishings market which allows manufacturers to showcase their product lines to retailers; a communication program which reduces telephone costs; a transportation program which aims to negotiate special agreements with national and international carriers for the movement of raw materials and finished products throughout North America; and an internet marketing program which offers members web site design and Internet consulting/training services. Furniture West provides members with discounted rates on Internet website consulting and sponsors free initial training sessions on the subject to assist its members with marketing. They also hold an annual furniture market in Calgary.

22. Western Wood Products Forum


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23. Alberta Forest Products Association

www.abforestprod.org

The AFPA is a private, non-profit industry organization that represents 66 Alberta companies who manufacture lumber, plywood, pulp and paper, and secondary manufactured wood products. AFPA is dedicated to stewardship and sustainable development of the forest resource, and assists the industry by: working with the public and governments to achieve fair and effective policies and legislation; maximizing an accessible sustainable fibre supply; maintaining open market access for its members’ products; coordinating industry safety activities; and promoting the forest products industry. AFPA offers a leadership training course, complete with an exam, aimed at supervisors. It focuses on improving supervisors' health and safety awareness and practices, which will raise the overall level of safety in manufacturing plants. AFPA is responsible for the training and certification of provincial lumber graders and has developed computer-based training in this area. Manufacturers receive a CD-ROM that employees use to study basic lumber grading before enrolling in formal courses. This allows employers to identify potentially successful candidates for grading instruction and helps employees evaluate their level of interest in grading. As the program also teaches basic grading-related concepts, students are better-prepared when taking formal courses. Generally these students perform better than those who haven’t taken the course. AFPA also provides relevant technical training seminars and courses as needed.

24. BC Wood www.bcwood.com BC Wood’s mandate is to help grow BC's value-added wood products manufacturing industry. Established in 1989 as a partnership between industry and government, BC Wood provides members with programs and services to develop and expand their markets and increase productivity and sales. The BC Wood marketing program assists BC's wood-products manufacturers in developing and expanding their North American and International markets through directories, market reports, and in-field representatives in Japan, China, India, Germany, and the US. Funding is available to member companies to assist with transportation and exhibition costs associated with attending North American and International trade shows and missions. Since 1996, BC Wood has provided many training courses on technical and skill-related aspects of the industry through FRBC. Now that FRBC no longer exists, BC Wood does not offer training; nor are they planning to.

25. Cariboo Lumber Manufacturers Association www.clma.com CLMA is an association of structural lumber and value-added producers operating in BC's Cariboo area. It is a not-for-profit organization affiliated with the Council of Forest Industries (COFI) and the Canadian Wood Council (CWC) that relies upon financial contributions from members. CLMA provides support to members on all aspects of lumber quality, forest resource management, forest and land use issues, and forest products' market access. Their services and initiatives include: facilitating communication to and among members to ensure they are advised of key external and internal initiatives that could impact their operations; ensuring quality control standards are being met by


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members; monitoring and responding to government policy initiatives affecting the forest industry; and building alliances with local communities and business groups.

26. Coast Forest and Lumber Association www.cfla.org

The CFLA is the regional advocate and regulatory issues manager for harvesting and lumber manufacturing companies operating within the British Columbia Coast. Membership services include: advocacy, issues management and/or user-pay services in areas of forestry, environmental and all related regulations in the harvesting and manufacturing processes; fibre facilitation between primary manufacturing operations and value-adding facilities; and lumber promotion programs in Japan.

27. Council of Forest Industries www.cofi.org

The COFI is a trade association representing 100 forest companies and 6 forest industry associations. COFI supports the BC forest industry through initiatives such as: advocating the use of wood versus non-wood products, expanding the international markets for wood; monitoring and compiling information regarding legislative, regulatory and policy initiatives affecting the forest industry; working with other associations to monitor and influence national and international legislation, regulations and conventions; and promoting changes to federal and provincial transportation legislation in an attempt to provide a pro-competitive environment for the shipment of goods produced by and delivered to the BC forest industry.

28. Interior Value Added Wood Association www.woodinfo.net/sites/ivawa

IVAWA is an industry group promoting the interests of secondary wood manufacturers in the Thompson-South Okanagan and Kootenay regions. Their main focus is to improve and develop secure supplies of fibre for members. Members are given the opportunity to network with colleagues who share common business interests and problems. IVAWA liaises with other remanufacturing associations, allowing timely access to relevant information. IVAWA has historically left training and HR initiatives to BC Wood and FRBC. Currently, they are working with provincial colleges and training institutes (particularly BCIT) to assist in the delivery of Industry-related training programs. These cover marketing, management practices and technical skills. Since this instruction will be delivered through independent schools instead of by government-created and sponsored programs, the image of government subsidization will be avoided. This is particularly important following the cessation of FRBC training initiatives. IVAWA is working with the WCB to assume their role in industry safety training. They will hold seminars and courses for members focusing on documenting safety practices, for eventual ISO 9000 certification.


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29. The Kootenay WoodVine Network www.woodvine.org A network organized by the region's independent wood manufacturing firms and woodworkers in an effort to support and promote the value-added wood manufacturing sector. They offer a variety of services to members including: commercial insurance discounts; medical and dental coverage; events; provides information and referrals concerning markets and training; and sponsors market-access programs (e.g. the provincial Wood Co-op). In 1996/97, the Network held courses for start-up microbusinesses. They co-operated with BC Wood and others to sponsor and promote training initiatives offered in their area. In 2000, the Network held seminars on forest and wood certification programs.

30. Northern Forest Products Association www.nfpa.bc.ca

The NFPA was formed to represent the lumber and forest products industry in northern British Columbia. With 35 member companies, it provides information relating to forestry, community and government relations, lumber quality control, forest education, market access and trade, and occupational health and safety.

31. Vancouver Island Association of Wood Processors www.islandpages.com/viawp

VIAWP is a not-for-profit organization representing the interests of independent, value-added wood products' manufacturers and specialty sawmills on Vancouver Island. Through various programs, the association supports its members' wood supply, financing, marketing, and representational needs. In 2001, VIAWP and FRBC looked at future industry recruitment and retirement needs. VIAWP also facilitates training seminars aimed at the managerial/owner-operator level on topics such as recovery (turning wood waste into value-added products), maintenance/optimization of equipment, and technological training. They hold member seminars featuring service providers (Business Development Bank of Canada, Forintek, WCB, etc.). WCB provided a tracking/benchmarking programs for workplace accidents. Value-added lumber grading, sawing, and moulding production training was delivered through the BC Wood Specialties Group, until FRBC funding was eliminated.


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APPENDIX D – SURVEY INSTRUMENTS

Advanced Wood Products Manufacturing Survey

STAKEHOLDER SURVEY Your information will help us to provide data to the Advanced Wood Products Manufacturing Industry that is unique and not available from other sources. R.A. Malatest & Associates Ltd. is conducting the survey on behalf of the Wood Manufacturing Council in response to demands from the industry for this type of labour market information. Thank you for your involvement! Objectives:

• To develop an understanding of human resource issues facing Advanced Wood Products Manufacturing Industry

• To identify hiring trends and shortages of skilled personnel in our industry

• To assist Advanced Wood Products Manufacturing employers with meeting their needs for skilled employees

• To help shape the nature of training programs geared to the industry

Confidentiality:

Individual responses will be treated as strictly confidential by the research firm and the Wood Manufacturing Council. Only summary data will be presented in public reports resulting from the survey.

Your Response: So that we can begin working on the report, we would appreciate receiving your survey by March 15, 2002. A postage-paid return envelope has been enclosed for your convenience, or you may reply by:

Phone: (250) 382-2376 Toll-Free Fax: 1-888-233-3810 Toll Free Phone: 1-800-665-5848 Mail: 3rd Floor – 910 View St. Victoria, BC V8V 3L5

Please provide the name and job title of the person filling out this survey:

Name: □ Mr. □ Mrs. □ Ms. □ Dr. (First) _________ (Last)

Job Title: _____________________________________

Telephone: ___________________________________ Fax: _________________________________________ E-mail: _______________________________________ Company or Institution: __________________________ Address:


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This study looks at the Advanced Wood Products Manufacturing Sector as defined for the most part by the wood component of the following industries: • Wooden Kitchen Cabinets and Bathrooms • Wooden Doors and Windows Industry • Other Millwork Industries • Prefabricated Wood Buildings Industry • Wooden Household Furniture Industry • Other Office Furniture Industries • Hotel, Restaurant and Institutional Furniture and Fixtures Industry These industries include the following occupational areas, among others:

a. Management General manager, plant manager, sales manager, engineering manager, quality manager, manager of logistics and systems, director of operations b. Supervisors

Quality control, finishing end, yard supervisor, quality process, maintenance, production, shop ci. Skilled Trades: Millwright, electrician, welder/fabricator, machinist cii. Skilled Trades: Carpenter ciii. Skilled Trades: Cabinet Maker di. Machinery operator for solid wood processing dii. Machinery operator for panel processing diii. Machinery operator for rough mill div. Assembler dv. Finishing technician dvi. Veneer layup dvii. Quality control dviii.. Production: Packager/charge hand, wrapper/shipper-receiver, forklift operator, bagger e. Professional Engineer, CNC programmer, product planner, CAD/CAM operator, mechanical engineering technologist, draftsperson, production and freight coordinator.

Within the last five years, has your company/organization conducted any research involving the Advanced Wood Products Manufacturing industry?

❒ Yes ❒ No

If yes, what research?


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ADVANCED WOOD PRODUCTS MANUFACTURING INDUSTRY A1a. What factors are negatively affecting the ability of Advanced Wood Products Manufacturing

companies to grow/become more profitable in your province? Please rate the significance of the following in impeding company growth.

Not A Factor at All

Somewhat Insignificant As a Factor

Somewhat Significant As a Factor

Very Significant As a Factor

Don’t Know

a. Insufficient wood supply

1 2 3 4 DK/NA

b. High price of wood

1 2 3 4 DK/NA

c. High price of more productive equipment

1 2 3 4 DK/NA

d. High cost of staff salaries and wages

1 2 3 4 DK/NA

e. Insufficient qualified staff to hire

1 2 3 4 DK/NA

f. Skill shortages in staff

1 2 3 4 DK/NA

g. Insufficient government direction/ help

1 2 3 4 DK/NA

h. Insufficient relationships and ties with wholesalers and retailers

1 2 3 4 DK/NA

i. Lack of quality wood 1 2 3 4 DK/NA

j. Lack of company knowledge of marketing and advertising options/strategies

1 2 3 4 DK/NA

k. Lack of communication between companies within the industry

1 2 3 4 DK/NA

l. Lack of consistent quality standard system for the industry

1 2 3 4 DK/NA

m. Transportation costs to markets

1 2 3 4 DK/NA

n. Competition from other countries

1 2 3 4 DK/NA

o. Other (Specify):

1 2 3 4 DK/NA

A1b. To the best of your knowledge, what is the main roadblock that Advanced Wood Products

Manufacturing companies have faced in trying to grow or become more profitable in the last two years? Please elaborate on that factor.

____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________


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ADVANCED WOOD PRODUCTS MANUFACTURING EMPLOYEES B1a. Which position(s) within the Advanced Wood Products Manufacturing Industry are

the most difficult to recruit for? Why?

____________________________________________________________________________ ____________________________________________________________________________ B1b. Which position(s) within the Advanced Wood Products Manufacturing Industry are

the most difficult to retain staff in? Why? ____________________________________________________________________________ ____________________________________________________________________________ B1c. Do you foresee/expect a shortage of trained/experienced employees in a specific

occupation group within the next two years? Why? ____________________________________________________________________________ ____________________________________________________________________________ B2a. Do you believe that the level of female employees within the Advanced Wood

Products Manufacturing Industry will increase or decrease in the near future?

❒❒❒❒ Increase ❒ Decrease ❒ Don’t Know

Why do you expect the level of female employees to increase or decrease?

B2b. In your opinion, what makes it difficult to recruit or retain females in the the

Advanced Wood Products Manufacturing Industry? ___________________________________________________________________________ ____________________________________________________________________________


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HIRING/TRAINING NEW EMPLOYEES

C1. Please rate the overall quality of new secondary and post-secondary training and education

graduates (within the last two years) for the following Advanced Wood Products Manufacturing Industry positions, compared with graduates 5 years ago.

Occupational Category Significantly Better

Slightly Better

Slightly Worse

Significantly Worse

Don’t Know or

No Response

a. Management General manager, plant manager, sales manager, engineering manager, quality manager, manager of logistics and systems, director of operations

1 2 3 4 DK/NA

b. Supervisors Quality control, finishing end, yard supervisor, quality process, maintenance, production, shop

1 2 3 4 DK/NA

ci. Skilled Trades: Millwright, electrician, welder/fabricator, machinist

1 2 3 4 DK/NA

cii. Skilled Trades: Carpenter 1 2 3 4 DK/NA ciii. Skilled Trades: Cabinet Maker 1 2 3 4 DK/NA di. Machinery operator for solid wood processing

1 2 3 4 DK/NA

dii. Machinery operator for panel processing

1 2 3 4 DK/NA

diii. Machinery operator for rough mill

1 2 3 4 DK/NA

div. Assembler 1 2 3 4 DK/NA dv. Finishing technician 1 2 3 4 DK/NA dvi. Veneer layup 1 2 3 4 DK/NA dvii. Quality control 1 2 3 4 DK/NA dviii.. Production: Packager/charge hand, wrapper/shipper-receiver, forklift operator, bagger

1 2 3 4 DK/NA

e. Professional Engineer, CNC programmer, product planner, CAD/CAM operator, mechanical engineering technologist, draftsperson, production and freight coordinator.

1 2 3 4 DK/NA

Comments:


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C2a. Please describe any perceived training gaps or deficiencies based on the advanced wood manufacturing labour force today (e.g. availability quality/ relevance of existing training):

Occupational Category

Training gaps or deficiencies




cii. Skilled Trades: Carpenter

ciii. Skilled Trades: Cabinet Maker di. Production: CNC Operator, machine operator, grinderperson, optimizing saw operator, moulder operator, finished product grader, lathe technician, tenoner operator, fingerjoint operator, laminator

i. Production: Packager/charge hand, wrapper/shipper-receiver, forklift operator, bagger


C2b. Are recent graduates who are moving into employment in the Advanced Wood Products

Manufacturing Industry equipped with the high-technology skills they should have to be effective in the industry?

❒ Yes ❒ No ❒ Don’t Know C2c. Comments on the readiness of recent graduates for the high technology requirements of

the industry:

____________________________________________________________________________ ____________________________________________________________________________

C3. Are there any short term improvements that need to be made within the Advanced Wood Products Manufacturing Industry, with respect to training? ____________________________________________________________________________ ____________________________________________________________________________


104

C4. Are there any long term improvements that need to be made within the Advanced

Wood Products Manufacturing Industry, with respect to training? ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

C5. Are you aware of any industry/training practices used outside of canada that could

be used to improve canada’s advanced wood products manufacturing industry? If so, please explain: ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

C6. Do you have any additional comments to make regarding the Advanced Wood

Products Manufacturing Industry? ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

[Please feel free to attach any additional comments.] THANK YOU FOR COMPLETING THIS IMPORTANT SURVEY. YOU WILL BE CONTACTED WITH

FINAL SUMMARY RESULTS OF THE SURVEY FOLLOWING PROJECT COMPLETION. ONLY SUMMARY (AGGREGATE) RESULTS WILL BE INCLUDED IN REPORTING. YOUR PRIVACY AND

CONFIDENTIALITY WILL BE STRICTLY GUARDED.


105

Advanced Wood Products Manufacturing Survey

EMPLOYER SURVEY

Your information will help us to provide data to the Advanced Wood Products Manufacturing Industry that is unique and not available from other sources. R.A. Malatest & Associates Ltd. is conducting the survey on behalf of the Wood Manufacturing Council in response to demands from the industry for this type of labour market information. Thank you for your involvement!

Objectives:

• To develop an understanding of human resource issues facing Advanced Wood Products Manufacturing Industry

• To identify hiring trends and shortages of skilled personnel in our industry

• To assist Advanced Wood Products Manufacturing employers with meeting their needs for skilled employees

• To help shape the nature of training programs geared to the industry

Confidentiality:

Individual responses will be treated as strictly confidential by the research firm and the Wood Manufacturing Council. Only summary data will be presented in public reports resulting from the survey.

Your Response: So that we can begin working on the report and get the results back to you, we would appreciate receiving your survey by March 15, 2002. A postage-paid return envelope has been enclosed for your convenience, or you may reply by:

Phone: (250) 382-2376 Toll-Free Fax: 1-888-233-3810 Toll Free Phone: 1-800-665-5848 Mail: 3rd Floor – 910 View St. Victoria, BC V8V 3L5

Please provide the name and job title of the person filling out this survey:

Name: □ Mr. □ Mrs. □ Ms. (First) □ Dr. _________ (Last)

Job Title: ___________________________________________

Telephone: ___________________________________ Fax: _________________________________________ E-mail: _______________________________________ Company Name and Address: _____________________________________________ _____________________________________________ _____________________________________________


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YOUR COMPANY A1. For the purposes of this study, the Advanced Wood Products Manufacturing Industry is

defined by the wood components of the following industry areas listed below. Please identify your company’s percentage of involvement for each of the industry areas listed (total involvement should add to 100%):

Industry Areas Percentage of Involvement

Wooden Kitchen Cabinets and Bathroom Vanities Industry % Wooden Doors and Windows Industry % Other Millwork Industries % Prefabricated Wood Buildings Industry % Wooden Household Furniture Industry % Upholstered Household Furniture Industry % Other Office Furniture Industry % Hotel, Restaurant and Institutional Furniture and Fixtures Industry % Other industry areas related to Advanced Wood Processing Manufacturing Please specify:

%

Other industries not related to Advanced Wood Products Manufacturing Please specify:

%

Total 100% A2. What is the current total number of paid workers employed by your company, and how many are

involved in Advanced Wood Products Manufacturing? (Please refer to the industry components in question A1, above, for specific components of the Advanced Wood Products Manufacturing Industry.)

Full Time Part Time Total # of Employees

A3a. Compared with two years ago, how would you characterize your company’s growth in employee

numbers related to Advanced Wood Products Manufacturing?

❒ 0-25% growth in last 2 years ❒ 0-25% decline

❒ 26-50% growth ❒ 26-50% decline

❒ 51-75% growth ❒ 51-75% decline

❒ 76-100% growth ❒ 76-100% decline

❒ No Change ❒ N/A

❒ Other (please specify) _________________________________


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A3b. What is the main roadblock that your company has faced in trying to grow or become more

profitable in the last two years? Please refer only to those roadblocks that have affected the Advanced Wood Products Manufacturing activities of your company.

A3c. What factors are negatively affecting the ability of Advanced Wood Products Manufacturing

companies to grow/become more profitable in your province? Please rate the following factors in impeding company growth.

Not A Factor at All

Somewhat Insignificant As a Factor

Somewhat Significant As a Factor

Very Significant As a Factor

Don’t Know

a. Insufficient wood supply 1 2 3 4 DK/NA b. High price of wood 1 2 3 4 DK/NA c. High price of more

productive equipment 1 2 3 4 DK/NA

d. High cost of staff salaries and wages

1 2 3 4 DK/NA

e. Insufficient qualified staff to hire

1 2 3 4 DK/NA

f. Skill shortages in staff 1 2 3 4 DK/NA g. Insufficient government

direction/ help 1 2 3 4 DK/NA

h. Insufficient relationships and ties with wholesalers and retailers

1 2 3 4 DK/NA

i. Lack of quality wood 1 2 3 4 DK/NA

j. Lack of company knowledge of marketing/advertising options/strategies

1 2 3 4 DK/NA

k. Lack of communication between companies within the industry

1 2 3 4 DK/NA

l. Lack of consistent quality standard system for the industry

1 2 3 4 DK/NA

m. Transportation costs to markets

1 2 3 4 DK/NA

n. Competition from other countries

1 2 3 4 DK/NA

o. Other (Specify):

1 2 3 4 DK/NA


108

YOUR ADVANCED WOOD PRODUCTS MANUFACTURING EMPLOYEES B1.a) Please fill in your current and forecasted Advanced Wood Products Manufacturing-related

employee numbers in the following general categories. Completing the following sections will help us provide data on current and future levels of employment by occupation. Please note that this information will be held in the strictest confidence and will be reported only as part of a larger group average.

Occupational Category Current Forecast for Jan. 1, 2003

Forecast for Jan.1, 2004

Full Time

Part Time

Full Time

Part Time

Full Time

Part Time





ciii. Skilled Trades: Cabinet Maker

di. Production: Machinery operator for solid wood processing

dii. Production: Machine operator for panel processing

diii. Production: Machinery operator for rough mill

div. Production: Assembler

dv. Production: Finishing technician

dvi. Production: Veneer lay-up

dvii. Production: Quality Control

dviii. Production: Packager/charge hand, wrapper/shipper-receiver, forklift operator, bagger


f. Total (All Advanced Wood Manufacturing Designations)


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B1b. Are there any positions above for which you have been unable to find adequate

qualified staff and are waiting to fill? Current

# of Positions Waiting to Fill

Occupational Category

Full Time

Part Time



ci. Skilled Trades: Millwright, electrician, welder/fabricator, machinist cii. Skilled Trades: Carpenter

ciii. Skilled Trades: Cabinet Makers


dii. Production: Machinery operator for panel processing




dvi. Production: Veneer layup

dvii. Production: Quality control

dviii. Production: Packager/charge hand, forklift operator, wrapper/shipper-receiver, bagger


f. Total (All Advanced Wood Manufacturing Designations)

B1c. Which specific positions and/or skills are hardest to recruit at present? Why?


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B2a. Please provide an approximate breakdown of employee age for each general

employee designation (Totals should equal 100%). Occupational Category <30 30-54 55+ Total a. Management

General manager, plant manager, sales manager, engineering manager, quality manager, manager of logistics and systems, director of operations

100%


100%


100%

cii. Skilled Trades: Carpenter 100%

ciii. Skilled Trades: Cabinet Makers 100%


100%


100%

diii. Production: Machinery operator for rough mill 100%

div. Production: Assembler 100%

dv. Production: Finishing technician 100%

dvi. Production: Veneer layup 100%

dvii. Production: Quality control 100%


100%


100%

B2b. Is retirement a significant factor for causing vacancies in specific occupational groups?

❒ Yes ❒ No ❒ Don’t Know

B2c. If yes (to B2b.), please specify occupational group(s) for which retirement is a

factor: __________________________________________________________________


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B3a. For each of the following Advanced Wood Products Manufacturing employee

designations, please specify the percentage of female employees within your company:

Occupational Category Approximate

Percentage that are

Female within company



ci. Skilled Trades: Millwright, electrician, welder/fabricator, machinist cii. Skilled Trades: Carpenter











B3b. In your opinion, what makes it difficult to recruit or retain females in the Advanced

Wood Products Manufacturing Industry? ____________________________________________________________________________ ____________________________________________________________________________


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HIRING/TRAINING NEW EMPLOYEES

C1. What basic qualifications is your company looking for when hiring in each of the following

occupation areas? Examples of qualifications would include years of experience necessary, formal apprenticeship, technical training, university education, etc.

Occupational Category Basic Qualifications a. Management

General manager, plant manager, sales manager, engineering manager, quality manager, manager of logistics and systems, director of operations














C2a. Has your company developed any links with any educational institutions?

Yes ❒ No ❒ Don’t Know C2b. If yes, with which institutions and what sort of links?

____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________


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C3. In the last five years, have you hired new employees with formal training (that is,

employees who have undertaken a specialized vocational program geared towards Advanced Wood Products Manufacturing)?

❒❒❒❒ Yes ❒ No ❒ Don’t Know

If yes, please indicate which institution(s), and whether you found the formal training to be beneficial to the employee’s abilities to perform his/her job:

Institution Name(s): __________________________________________ Comments:

_____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________

C4. How much does your company invest in employee training as a percentage of payroll?

Percentage: . C5. Please provide any comments you would like to make regarding training gaps or

deficiencies (e.g. availability/quality/relevance of existing training): ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

C6. Are you aware of any industry/training practices used outside of canada that

could be used to improve canada’s advanced wood products manufacturing industry? If so, please explain: ____________________________________________________________________________ ____________________________________________________________________________

C7. Do you have any additional comments to make regarding the Advanced Wood

Products Manufacturing industry? ____________________________________________________________________________ ____________________________________________________________________________


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APPENDIX E - CASE STUDY: THE CENTRE FOR ADVANCED

WOOD PROCESSING AT UBC Site Visit for A Situational Analysis of the Advanced Wood Products Manufacturing Industries – The University of British Columbia, Centre for Advanced Wood Processing January 24, 2002. People interviewed: Dr. Philip Evans, Director, CAWP Iain Macdonald, Associate Director, CAWP Dr. Simon Ellis, Program Director, Wood Products Processing Program (WPP), UBC Catalin Ristea, Research Associate, Department of Wood Science, UBC Cory Williams, Program Co-ordinator, WoodLINKS Opreet Kang, Project Co-ordinator, WoodLINKS Jason Chiu, QC Certification Specialist, Wood Products Quality Council (met initially and later

interviewed via telephone on January 30, 2002) Dr. Evans conducted an extensive tour of the Centre for Advanced Wood Processing. He also gave background information on the industry sector. Overview of the Centre for Advanced Wood Processing (CAWP) The Centre has a mandate to be of service to industry, by providing training, extension, a targeted research program and supporting the Wood Products Processing (WPP) program at UBC, which is a source of graduates for the industry. The Centre was formed with an endowment of approximately $22.5 million, which included money for the original construction and set up of the facilities (approximately $7 million), and $15 million for operation and payment of staff. The money for the endowment came from both federal and provincial (BC) governments and industry, via FRBC. The Centre has a staff of 12 and has three general goals: 1. To use endowment funds to support the Wood Science Department in the delivery of the

BSc WPP program at UBC. 2. To provide industry training courses on a cost-recovery basis as part of a continuing

education mandate. 3. To undertake research that will help the industry as a whole. This aspect could be

developed more fully, but currently, the majority of resources are devoted to (1) and (2). Prior to the foundation of the Centre, the advanced wood products manufacturing industry in Canada recruited students from the Fachhochschule Rosenheim in Germany. Comparable students to those produced by the Fachhochschule could not be found in Canada. Canadian graduates from post-secondary institutions lacked the requisite combination of both experience and academic training. The Centre was originally modeled on Rosenheim, but it is now serving as a model for others, including the University of Stellenbosch in South Africa. In fact, Rosenheim has formulated some of its new directions based on directions the Centre has taken.


115

Curriculum The Centre works with the Department of Wood Science in developing the WPP curriculum. The WPP degree is a 5-year program, 19 months of which are co-op placements. These placements accelerate the maturation of students. The Centre seeks co-op placements that build on the experience of the students. One of the drawbacks of the current co-op program is that it tends to receive the support of the same group of large employers within the industry year after year, with low levels of interest from other sources. Students feel that smaller companies, which are the backbone of the industry, should be more responsive to solicitations made by the Centre’s co-op coordinator. Many transferable skills are taught in the WPP program, including ones that lead to careers in Wood Engineering. Two years of further study in the Faculty of Engineering are required for a PEng once a BSc in Wood Products Processing has been granted. The Centre is attempting to encourage more co-operation between other faculties at the University, for example between the Engineering and WPP programs. Laboratories and other facilities could be shared by students of both programs, as there is a degree of overlap in some of the courses offered by these two faculties. There is also an option to pursue a Commerce minor in conjunction with the BSc in WPP; this aids graduates with the business aspect of the industry once they are in the workforce. Currently, several WPP program grads are enrolled in Master’s programs in the fields of Economics, Marketing and Commerce. As many competitor nations (especially those in Asia and Eastern Europe) have competitive advantages in labour costs and environmental regulations, the Centre feels that Canada’s best competitive approach is to reinforce the quality and competence of the people in the industry. To this end, students at the Centre are taught teamwork skills in addition to the technical knowledge they receive; the co-op program aids these team work skills, as students learn how to interact on the shop floor and gain practical experience about the makeup of the industry. Employers have been very impressed with both the technical and the “people” skills of graduates of the program. Faculty at the Centre see future opportunities for the Canadian advanced wood products manufacturing industry in Asia, (in the form of joint ventures etc) and the Director believes that some co-op terms should be spent overseas, for example in China, Laos, Vietnam. In Canada, future jobs in the advanced wood products manufacturing sector will possibly be in the areas of e-commerce, technical sales, and design, with more manufacturing being done in Asia. Faculty / Students The major problem for the Centre is its inability to recruit sufficient numbers of students for the number of places that are available in the WPP program. The Program has room for ~200 students in total, but at present only 100 are enrolled. About 30-35% of the students in the past have been women, and, to quote one faculty member at the Centre, “women have led the program in past years”. Most of the students are from British Columbia; about 85% of the students have been from Greater Vancouver. It has been a challenge to find and recruit qualified Canadian faculty for the Centre. Potential faculty with the appropriate mix of academic and practical industry experience in the sector have been very difficult to find in Canada. The problem of recruiting people at a high level


116

persists for the Centre. Faculty members in the Centre must hold an academic appointment in the Department of Wood Science. Another problem for Centre and Department of Wood Science is graduate student recruitment. Too few students want to spend years in relative poverty undertaking graduate training when they can begin working in the industry immediately. Another problem is that the graduate level study is often too specialized to be of immediate benefit to industry, and the wages that Ph.D.s expect reduce their attractiveness to smaller firms. These issues of attracting and retaining faculty and students are not problems at Germany’s Fachhochschule Rosenheim. It is believed that the increased exposure, respect and pay that manufacturing careers receive in Europe accounts for this difference. Another factor hindering recruitment of students is that the Centre and the WPP program are relatively new. Awareness of the Centre and the program is low among those considering post-secondary education, so the level of interest among potential students is less than it might be. The public perception of the forest products industry in general as environmentally harmful and labour-intensive also discourages potential students. Increasing public awareness of the advanced wood processing industry with emphasis on high technology and design aspects may change this mindset. To overcome the problem of attracting students, Professor Evans and Faculty in the Department of Wood Science are currently working with government via the newly formed Wood Manufacturing Council to institute a national recruiting program for wood processing programs across Canada. Since the Wood Products Processing Program, in line with Faculty of Forestry policy, accepts students meeting the minimum GPA for entrance at the University of British Columbia (67%), some students have ended up in the program by default, as they could not get into other programs. These students then try to transfer into another department or faculty upon completion of their first year. Most of the graduates that have finished the program at the Centre who have actively sought jobs have received them. Multiple job offers for graduates have not been uncommon. Most of the jobs have been in Canada and the US. Research / Links With Industry As mentioned above the Centre has a mandate to do research in the area of advanced wood processing. With the current level of resources, it has been difficult to make a large impact in this area. The Centre is actively seeking to strengthen its ties with industry. Recently there has been communication between industry and the Centre on industry needs in the area of human resources. Machine suppliers provide the Centre with free leasing of equipment in exchange for the use of the Centre as a demonstration laboratory and a location where training may be provided to potential equipment purchasers. The machinery that is lent by industry is often state-of-the-art. With the formation of the Centre, there was an understanding that industry would provide funding to help with scholarships. This has not happened to the extent that was envisaged when the Centre was formed. Therefore, the Centre will be pursuing additional support from industry in the future.


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Continuing Education / Extension Programs The Continuing Education and Extension programs at the Centre are designed to provide the skills, training and education that industry requires for future success. Two key areas in this regard are marketing and management. Currently, there is a tendency amongst small business owners to focus on production at the expense of marketing. There is a real difficulty in extension programs / continuing education in teaching basic marketing, as well as in getting people interested in marketing. Marketing is often thought of as a “soft skill” and not of direct or immediate relevance to those in the industry. Given these issues, the Centre is looking to develop a certificate program in management and marketing, aimed at those already in the industry. Management skills are seen by those in the Centre as being needed to move the industry forward. Traditional management programs would not be able to offer participants the appropriate amount of technical knowledge specific to the wood products industry. One of the goals of the Centre is to offer a management program heavily dependent on case studies (as with some MBA programs), that highlight and respond to the unique challenges of the wood products manufacturing industry. Other areas of focus are courses on finishing (considered a mysterious “black box” by many in the industry), kiln drying (an area that has become increasingly technical) and quality control. Barriers to Continuing Education It is believed by one staff member at the Centre that the presence (until now) of heavy Forest Renewal BC training subsidies has lowered the perception of the value of retraining, and of the amount of money that the industry should have to pay for retraining in British Columbia. Many workers received free training under BC Wood and FRBC programs, which created an attitude among some employers that all training should be free. Now that subsidies are being removed or reduced, industry is even less willing to participate in training programs. The Softwood Lumber Agreement dispute has also impacted on the willingness of industry to participate in training programs. During the period when many plants were closed or operating on a day-to-day basis, rather than taking advantage of the situation and training workers that were otherwise unoccupied, most firms refused to invest in any training whatsoever until their future business prospects became more clear. This continues to be a challenge as negotiations between Canada and the US drag on. Many continuing education courses are ignored by companies who cannot justify or afford to send workers to Vancouver to attend courses. As a result, the Centre intends to offer more courses by distance learning, especially to communities outside of BC. The Internet will allow people to study in remote communities, or outside of urban centres, and will mean that less travel time will be involved in workers’ continuing education. One of the key goals of the Centre is to develop this type of distance education. The Centre has aimed, especially in the capacity of the continuing education component, to create a network of educational institutions; to date this remains an informal network between the Centre and, in particular, Conestoga College, SAIT, NAIT and Red River Community College. One of the original goals of the Centre was to create an articulation strategy for a network of training throughout different institutions, to avoid overlap and to forge closer ties between institutions. The focus of CAWP in this area is to become a “hub” for training and continuing education throughout Canada, with other institutions using the Centre’s expertise and personnel to set up the programs that the individual schools will deliver. The Centre


118

recommends the use of standardized criteria for courses across the nation, as well as standardized programs. This would best take place through a series of sequential, graduated programs that lead to a certificate of some sort, rather than providing random workshops. For certificate programs, the Centre cannot mandate that applicants undergo entrance tests, but it has recently begun to outline the types or level of skills that are required for the courses. It was found that some of the extension courses were being attended by people with low levels of literacy and numeracy, and the provision of an outline of basic required skills allows potential students to brush up in preparation for courses. The Centre is seeking more feedback from industry on their needs with respect to training programs, especially in the area of continuing education. Graduate Student Prospects In the advanced wood products manufacturing industries, those with graduate degrees tend to work with very large companies that require very specialized training, or with industry-related software companies and research firms. While this is less of a problem in Europe, where firms are generally larger, in Canada, having such a high level qualification can be a hindrance in the industry, as much of the work is at a less-specialized level. Technical work for smaller firms is often performed by consultants rather than through the retention of full-time technologists. Wages are another factor that prevents smaller firms from hiring even those with a bachelor’s degree, as many small producers cannot afford to pay the wages commanded by such workers. As a result, there is a shortage of technologically skilled and/or academically trained employees among smaller firms, and this is becoming increasingly problematic as the industry modernizes. The Centre is an excellent resource for networking within the industry, and this is true at the undergraduate (especially through co-op), graduate, and research levels. Industry / Industry Association Attitudes & Goals The issue of inter-industry competition is important to the advanced wood products manufacturing industry. There are many transferable skills within the industry, allowing graduates to change industries if they decide to pursue other opportunities. These issues affect not just of uptake but also worker retention, and this is especially true of academically or technically trained employees. It is believed that a major societal shift must be effected in order to change concepts of work in young people, who have little exposure to different types of work in general. In Canada, there is a dichotomy between white-collar and blue-collar jobs, with the blue-collar being perceived as less prestigious. Students at a young age are programmed to regard the trades as lesser than academically orientated careers. In addition, the public’s lack of knowledge about the industry leads it to not recognize differences within the industry, such as the distinction between forestry and advanced wood products manufacturing. The next generation is seen as crucial to the industry as there is a general feeling by those in the sector that there will be major skill shortages in this trade and many others.


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Employers in the industry expect trained staff for their entry-level positions. In terms of the WoodLINKS programs, which trains secondary students about the wood products sector, the industry created the curriculum and yet it often will not hire its graduates. It is the feeling of some that this is evidence of the industry’s failure to recognize or acknowledge the current skill shortage among potential employees. Attrition over the next ten years is expected to be enormous, and growth in the industry above average, with the result that industry will experience great difficulty in filling skilled positions.


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