grading week - michigan...american hardwood export council 2 european market report nov/dec 2016...

© American Hardwood Export Council 1 European Market Report: NOV/DEC 2016www.americanhardwood.org

www.americanhardwood.org

ISSUE: NOV/DEC 2016

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To find out about our 2017 events

MARKET UPDATE

2016/2017 EVENTS

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RISE IN SAWN EXPORTS TO UK AND GERMANY OFFSET DECLINE TO ITALY AND SPAIN

INDUSTRY OPPORTUNITIES AT INTERZUM 2017 & STAFF CHANGES IN LONDON OFFICE

AHEC SUPPORT WOOD AWARDS AND DELIVER WORKSHOPS AT KEY ARCHITECTURAL FIRMS

LORDS CRICKET GROUND

NEWS

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LARGEST EVER WHITE OAK GLULAM BEAMS INSTALLED IN LONDON

ACTIVITIES

GRADING WEEK

LATEST WORKSHOPS FOR EU HARDWOOD TRADE TAKE PLACE IN SPAIN

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© American Hardwood Export Council 2 European Market Report: NOV/DEC 2016www.americanhardwood.orgFollow us on Twitter ahec_europe

RISE IN SAWN EXPORTS TO UK AND GERMANY, OFFSET DECLINE TO ITALY AND SPAIN

The volume of U.S. sawn hardwood exports to Europe was 304,900 m3 in the year to October, an increase of 3.6% compared to the same period in 2015. The value of exports increased 1.5% to $238.2 million. Growth in exports to the UK, Germany, Portugal and Ireland offset a decline in exports to Italy and Spain. (Chart 1).

White oakU.S. exports of white oak to Europe were 150,800 m3 in the year to October, almost exactly equivalent to the same period in 2015 (Chart 2). However, the overall figure hides a significant decline in white oak exports to Italy and Spain this year, which has been offset by rising exports to the UK, France and Ireland.

Red oakThe decline in exports of white oak to southern European countries has also been partially offset by increasing exports of red oak. Red oak exports to Europe were 16,900 m3 in the year to October, nearly double the volume of the same period in 2015, with most of the gains in Italy, Spain, Germany and the UK.

“The value of American hardwood exports to Europe increased 1.5% this year, to $238.2 million.”

http://www.americanharwood.org


TulipwoodU.S. exports of tulipwood to Europe were 78,500 m3 in the year to October, 7.5% more than the same period in 2015. Again, the overall figure masks a larger recovery in exports to Germany, the UK and Netherlands this year, which has been offset by continuing decline in exports to Italy.

AshU.S. exports of ash, which have been hit by the EU plant health controls this year, fell 17.5% to 22,200 m3 in the year to October. Ash exports to the UK, now the largest European destination for this species, are at a similar level to 2015, while exports to Germany and Portugal have increased from a small base. However, ash exports to Italy have fallen sharply this year, as more material is imported from Estonia.

WalnutU.S. exports of walnut lumber to Europe were 20,300 m3 in the year to October, a slight gain of 2.7% compared to the same period in 2015. A sharp rise in exports to the UK, which has overtaken Germany to become the largest European market for this species in 2016, offset declining exports to the other leading markets including Germany, Italy, the Netherlands and Spain.

Other speciesThere have been only minor shifts in markets for other species (chart 3). Exports of maple have risen a little to the UK and Ireland this year, but have declined to Germany and Belgium. Exports of cherry to Germany, currently the only European country importing more than negligible volumes of this species, have been flat this year. Exports of red alder have increased slightly to Germany, but declined to Italy. Germany is also importing a little more hickory this year.

UK, THE MOST IMPORTANT EUROPEAN MARKET FOR AMERICAN HARDWOODS

Since the AHEC programs began, the UK has always been a leading market for American hardwood exports but in recent years it has emerged as the most important, both in terms of volume and value. Even now after the turmoil of the British vote to leave the EU, trade activity appears not to have been affected.



According to one of the leading UK hardwood importers, 2016 has been a record year for temperate hardwood sales, partly helped by a decision to increase stock levels. They still see strong demand for FSC certified hardwood and admit trying to source volume from the USA, of the right specification and quality, is not always easy. Tulipwood sales continue to grow and outstripped white oak for the first time this year. They report steady sales of walnut and ash and also a growing demand for white oak “ripped to width” strips. So far Brexit has had no effect on sales and they have been passing on price rises of up to 30% to their customers (partly raw material cost but mainly currency devaluation). This importer also reports rising prices from their European oak suppliers and limited volumes available of the top prime grades from some of their preferred sawmills. They have also sold less tropical hardwood this year.

DEMAND FOR U.S. HARDWOODS IN IRELAND GROWS DESPITE BREXIT VOTE Despite recent strong growth, the Irish economy is beginning to come under increasing pressure. Key economic indicators have experienced some volatility since the Brexit vote in June and the unexpected electoral results in the United States have also prompted growing apprehension. The North and South of Ireland share extensive economic ties with the USA and the rest of Europe, so any changes to existing trade deals could hamper long term Irish economic activity.

Despite growing uncertainty about potential turbulence within the global economy, for the moment the domestic economy in Ireland continues to show resilience. Unemployment dropped to its lowest level in years in October and industrial production and retail sales continue to expand. On the political front, the government downplayed recommendations by the European Commission to increase spending in 2017 to boost growth since the government wants to maintain an economic buffer to counter any growing economic risks.

Construction activity driving demand for wood productsDespite recent uncertainty, the construction sector continues to gather momentum and is seen as playing an important role in Ireland’s economic stability and improvement. The value of projects guaranteed planning permission in the first nine months of 2016 rose 45% to 8 billion euros. Some 11,550 housing units are currently under construction in Ireland. This is still to a certain extent Dublin-centric, accounting for 53% of this value. All of this construction needs timber and timber-based products. Recent discussions with Irish timber companies confirmed their view that trading was generally very good and that so far there had been no noticeable impact from Brexit. One trader reported that the last four months had actually been the best in a long time after an okay first six months of the year.

U.S. hardwood exports grow again in 2016A stronger construction sector drives demand for all types of joinery and this is good for American hardwoods. The latest statistics show that in the 10 months to October, U.S. exports of lumber to Ireland were up over 8% in volume to 12,600m3. White oak and tulipwood continue to be the two dominant species in demand. Walnut is also popular with importers reporting increased sales this year, but ash exports have fallen. According to importers, this reduction is not because of import restrictions due to EAB.

Challenging times for Northern IrelandNorthern Ireland is the smallest of the four countries of the UK, both in economic and geographical terms. The economy grew by 0.4% during the first quarter of 2016, which was broadly in line with overall UK figures. One leading importer of U.S. hardwoods said that trading in the North was generally good but still had its challenges from a

“Tulipwood sales continue to grow and outstripped white oak for the first time this year”

“Some 11,550 housing units are currently under construction in Ireland. All of this construction needs timber and timber-based products.”



currency perspective. Business levels are still down by around 40% compared to the pre-crisis boom times. According to one leading hardwood trader, American white oak is favoured over European because the NHLA standard helps provide a consistency that is harder to find from European sawmills. There is still good demand for red oak from coffin makers. There is not much demand for certified timber in Northern Ireland at the moment. One importer has seen a move by architects to look for wood alternatives for kitchen worktops and flooring and is now looking to offer digitally printed flooring options.

AHEC have received a number of requests from Irish importers for grading workshops, as previous feedback suggests this helps improve their sales for American hardwoods.

AHEC SUPPORT WOOD AWARDS IN UK AND IRELAND

Members of the AHEC team attended the second edition of the Irish wood awards, set up to celebrate the best of Irish design with wood. Run by the Irish Wood Marketing federation in cooperation with the Royal Institute of Architects of Ireland (RIAI), the award ceremony took place in Dublin and was attended by the Minister of Forestry.

The following week AHEC were present for the UK Wood Awards ceremony in London, which AHEC also support as a partner. American white oak featured in the winning building in the small project category.

Both events provide valuable sources of information on projects that include American hardwoods, and excellent networking opportunities with leaders from the trade and design communities.

AHEC DELIVERING MORE TAILORED WORKSHOPS FOR KEY ARCHITECTURAL PRACTICES

An increasing number of UK architectural firms have been contacting AHEC to request workshops on U.S. hardwoods for their staff. The huge amount of publicity generated by The Smile project has certainly been a contributing factor, but architects are not only interested in the structural opportunities tulipwood can offer, but also in learning about all the species available and most importantly their environmental credentials.

ACTIVITIES

‘UK Wood Awards Winner, Contour House, in U.S. white oak’

‘Wood Award trophy, made in

American maple and cherry’



In November AHEC presented to Waugh Thistleton architects, a hugely influential practice at the centre of the revolution in timber construction in the UK, having delivered the UK’s first ever tall timber building (9 storeys) in 2009. The session was very successful with particular interest in TMT U.S. hardwoods for cladding and decking. In fact they have asked AHEC to come back in the New Year to focus on AHEC’s life cycle assessment (LCA) research and alternative approaches to demonstrating sustainability other than FSC certification.

LARGEST EVER WHITE OAK GLULAM BEAMS

Designed by stadium specialists Populous Architects and engineered by Arup, the new Warner Stand for the historic home of cricket, Lords, in central London, is a spectacular feat of timber engineering. It is also a first for American white oak, as they are the largest beams ever produced using this species and will be the longest cantilever timber beams in Europe. It is Arup who pushed for white oak to be used because of its appearance and superior strength properties based on knowledge acquired through various collaborations and research with AHEC. The eleven tapered white oak beams (up to 24 metres in length) support the sculptural canopy for the new stand.

‘Waugh Thistleton’s London tower block with a CLT structure, Murray Groove’

‘U.S. white oak glulam beams of up to 24m long being installed in London cricket ground’



AHEC have provided technical support to the project over the last 18 months and advised the contractors on sourcing suitable material. The German fabricators of the beams have undertaken large scale testing of the white oak to determine its performance. This project is an important success story for the AHEC program and is a landmark reference for how U.S. hardwoods can be used in high performance structural applications. AHEC were on site at the end of November with a film crew and photographers to capture the dramatic installation of the finished beams. All this material will form the basis of an exciting PR story, which will be rolled out when the project is completed in March/April next year.

HARDWOODS – A NEW FORCE IN EUROPEAN TIMBER CONSTRUCTION

Every year the key players from German and Austrian wood engineering and construction industries come together in Garmisch, near Munich, for the International Holzbau Forum (IHF). AHEC attended for the first time, as the organisers reacted to market developments and staged a half-day session titled “Designing with hardwood”. A series of presentations highlighted exciting projects and developments pioneering the structural use of European species - such as beech and birch - and white oak and tulipwood from the USA.

Engineers Arup presented AHEC’s tulipwood CLT project, The Smile, and German glulam specialists Hess Timber talked about the challenge of creating huge white oak cantilever beams for the new Warner Stand at Lords Cricket Ground in London. As one leading researcher into wooden construction put it “these projects impressively demonstrate the extent to which hardwood, which until a few years ago was mostly untapped, is now being used in the construction sector”. This event provided a very valuable profile for American hardwoods and an opportunity to talk to industry leaders and academics. As a result, AHEC Europe are working on rolling out a new program of material testing, which is hoped will lead to U.S. hardwood species being used more widely in structural applications.

GRADING WORKSHOPS SPAIN

Following an overwhelming response from the Spanish hardwood trade, AHEC ran another full week of grading workshops across Spain in cooperation with the NHLA and delivered presentations and practical grading sessions to five different importers inToledo, Valencia, Barcelona and Madrid. Each of them started with an introduction to

“AHEC have provided technical support to the project over the last 18 months and advised the contractors on sourcing suitable material.”

‘Installation of the largest ever American white oak glulam beams at Lords Cricket Ground in London’

‘The Smile, American tulipwood

CLT, London Design Festival’



the American hardwood resource, its diversity, sustainability and new technological applications. This was then followed by a grading session, which started with a theoretical class and finished by getting the students to test their practical grading skills at the warehouse.

One of the importers stated that “a good knowledge of the grading system for American hardwoods is essential because it allows us to know the peculiarities of this product, provide a better service to our clients and distinguish ourselves from our competitors.”

STAFF CHANGES

We are sorry to say good-bye to our Programme assistant Nimah Wallis, who has been part of the AHEC London team for the last year and a half. She has moved away from London to pursue a new career path. We wish her all the best and a big thank you for all her hard work. The good news is we have found an excellent replacement, so please welcome Lauren Smith to the AHEC London team, who will start mid January.

INDUSTRY OPPORTUNITIES AT INTERZUM

AHEC’s promotional area at Interzum 2017 has been positioned adjacent to the USA pavilion. Interzum, held every two years in the German city of Cologne, is an excellent opportunity for the U.S. hardwood industry to connect with the International hardwood trade. Many buyers attend from markets all over Europe and increasingly from farther afield. The exhibition runs from the 16th-19th May 2017. AHEC will be creating a meeting point and information hub for American hardwoods on its stand and if any AHEC members are interested in taking a booth in the USA pavilion, which is run and managed by the show organisers, there are spaces available. You can download the Pavilion Fact Sheet to learn more. For additional information and to register, please contact the USA Koelnmesse Inc. office: Franz [email protected]

‘Grading workshops in Barcelona (right) and Valencia (left), Spain’

NEWS

MERRY CHRISTMAS AND A HAPPY NEW YEAR FROM THE AHEC TEAM IN LONDON!


http://www.koelnmessenafta.com/emailfiles/interzum/IZ%202017_Fact%20Sheet_Materials_%20Regular.pdf

http://www.koelnmessenafta.com/emailfiles/interzum/IZ%202017_Fact%20Sheet_Materials_%20Regular.pdf

© American Hardwood Export Council 9Follow us on Twitter ahec_europe

American Hardwood Export Council Unit 20.1, 20-22 Vestry Street, London N1 7RETel: +44 (0) 207 626 4111 email: [email protected] website: www.americanhardwood.orgtwitter: ahec_europe

European Market Report: NOV/DEC 2016 www.americanhardwood.org

PR HIGHLIGHTS

The Workshop of Dreams, American hardwoods,

Domus, Italuy

AHEC European Conference,

TTJ, UK

Shoffice, American white oak,

Working Places, Germany

1 EURO = $

$1 = EURO

£1 Sterling = $

$1 = Danish DKr

$1 = Swedish SKr

$1 = Czech Kr

$1 = Hung’y Forint

$1 = Polish Zloty

$1 = Russian Rouble

$1 = Turkish Lira

2017 13 January Deubaukom Construction show Essen, Germany 14 - 17 January Domotex Flooring show Hannover, Germany 20 - 24 January Maison & Objet Design fair Paris, France 27 - 30 January HOMI Interior design show Milan, Italy 1 February Maderalia International suppliers fair Valencia, Spain 7 - 11 February Stockholm furniture fair Furniture fair Stockholm, Sweden 16 - 26 February Batibouw Timber fair Brussels, Belgium

24 - 27 May Bois & Habitat Wood show Namur, Belgium 4 - 9 April* Salone Del Mobile Design week Milan Italy 16 - 19 May* Interzum Furniture expo Cologne, Germany *denotes AHEC participation

The Smile, American tulipwood CLT,

Diseño Interior, Spain

30/11/16

1.06

0.95

1.25

7.03

9.25

25.57

295.72

4.20

64.18

3.44

1.09

30/09/16

1.12

0.89

1.29

6.63

8.58

24.05

275.31

3.83

65.45

3.00

31/08/16

1.11

0.89

1.31

6.68

8.57

24.26

277.98

3.91

65.29

2.96

31/10/16

1.02

0.91

1.22

6.75

8.97

24.54

279.54

3.91

63.05

3.09

grading week - michigan...american hardwood export council 2 european market report nov/dec 2016...

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