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US Hardwood Exports : A Global Perspective

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Growing Importance of US Hardwood Exports: Exports as a % of US Production Source: Hardwood Review, Oct 2004

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U.S. Hardwood Exports 1986-2004 AHEC Formed $ Million

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Top 10 Markets for Hardwood Lumber: 1990 & 2004 Source: USDA

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Source: USDA-FAS US Hardwood Exports 2004 % Change from previous year

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Most Active Major Markets 2004 (Growth Rates by Value 2003/2004) % Change: Lumber USDA-FAS:

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AHEC MEXICO

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Value of Hardwood Lumber Exports to Mexico 1996-2004 ($ Thousands F.A.S. value) Source: US Census Bureau

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Mexico: Hardwood Import Market Share Source: Global Trade Index

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Mexico US exporters are facing stronger competition Canada doubled exports to Mexico up to 6,000 m3 in 2004 Peru, Bolivia and Brazil are exporting tropical lumber More choices than 5 years ago Promotion programs similar to AHEC in smaller scale from other countries

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AHEC Greater China

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US Hardwood Lumber Exports to China ($ Thousands FAS value)

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China: Hardwood Import Market Share Source: Global Trade Index

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Top Lumber Species Exported to China ($ Thousands FAS value)

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US Hardwood Log Exports to China: 1997-2004 (Thousands of Cubic Meters) Source: USDA-FAS

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Source: Global Trade Atlas Worlds Leading Hardwood Log Importers

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China: Hardwood Log Imports 2003 % Market Share Seneca Creek/WRI 2004:

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Approximately 700 million square meters of finished construction each year Flooring demand to hit 2.5 billion square meters by 2008 Door and window market to hit 500 million units by 2008 Greater China: Property Development Source: ITTO, August 2004

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China Accounted for 20% of Global Economic Growth 2000-2004 Automobile Market Exceeds Germany Largest Mobile Phone Market in the World Estimated 10% of Population with Middle Class Purchasing Power. Represents 130 million consumers and growing! Chinese Domestic Market

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Greater China: Furniture Sector Furniture Production/Export in China Billion US$ 35.4% growth!

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Greater China: Furniture Sector Chinese Furniture Export by Province 2003 (Million US$) Province Guangdong province accounts For over 50% of China furniture exports.

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Export Markets for Chinese Furniture in 2004 Greater China: Furniture Sector Exports to US is still ranked number 1 in the first three months of 2004 valued at $ 1.48 billion, increased 23.6% despite the anti-dumping chaos.

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Is the Economy Overheating? Real Estate Bubble? Undervalued Currency? Political Stability? Trouble on the Horizon?

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Other Markets to Watch Southeast Asia/Vietnam Middle East Latin America India Caribbean **The EU**

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US Hardwood Lumber Exports by Volume - 2004 (m 3 ) Under-promoted Markets Source: US Census Bureau

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S.E. Asia: Market Overview Million US$

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VIETNAM U.S. Hardwood Log, Lumber & Veneer to VIETNAM Million US$ 137% Increase!

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Source: Ministry of Agriculture & Rural development (2003) Picture of wood processing factories in VN Economy areaTotal (%) 1. North West110.9 2. North East524.3 3. Red river delta18915.8 4. Northern of Danang17014.2 5. Coastal of Southern DN16113.4 6. Highland15312.8 7. South East area37631.3 8. Mekong delta887.3 Establishment (company enterprise) 1 2 3 4 5 6 7 8

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South America AHEC/AF&PA Korea Office September 2002 Emerging Furniture Industries 13,000 Brazilian manufacturers U.S. exports of promoted products doubled Brazil12 th largest market for veneer Opportunity High end furniture

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Brazilian Furniture Exports ($million US) Source: Global Trade Atlas

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Brazilian Furniture Exports (Main Importing Nations, 2004) Source: Global Trade Atlas ($Million US)

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INDIA

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AHEC/AF&PA Korea Office September 2002 Tariffs on Sawn Timber have Fallen from 60% to 20% Population of 1 Billion Opportunities Small Furniture Manufacturers High End Housing Commercial Real Estate Challenges Almost no experience with American hardwoods

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The Importance of Europe

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Source: Global Trade Atlas Worlds Leading Hardwood Lumber Importers

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Hardwood Lumber Exports by Volume - 2004 (m 3 ) Source: US Census Bureau

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US Hardwood Lumber Exports by Value 2004 Source: US Census Bureau ($1,000)

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Source: EUROSTAT EU Hardwood Lumber Imports (Billions of Euros)

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EU Imports of Temperate Hardwood Lumber: 2004 (Millions of Euros) )

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EU 15 Wood Furniture Imports (Millions of Euros) Source: EUROSTAT

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EU Wood Furniture Imports: Eastern Europe (Millions of Euros)

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Source: EUROSTAT EU Wood Furniture Imports: Asia (Millions of Euros)

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For additional information contact : AHEC Headquarters 1111 19th Street, NW, Suite 800 Washington, DC 20036 Phone: 202/463-2720 Fax: 202/463-2787 www.ahec.org