serving forest products buyers worldwide ibs reflects optimism … · hardwood industry,...

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Las Vegas, Nevada–Among the more than 1,800 exhibitors at the 32nd annual Shooting, Hunting and Outdoor Trade (SHOT) Show, held here at Sands Expo and Convention Center, were several manufacturers of gunstock made of hardwoods. They joined producers of gear purchased by hunters, shooters and outdoor enthusi- asts, totaling approximately 60,000 visitors to this year’s four-day event. The SHOT Show generates millions of dollars in revenue that funds the National Shooting Sports Foundation, owner and sponsor of SHOT, as well as services that help “promote, protect and preserve” hunting and the shooting sports. SHOT ranks annually among the fastest growing trade shows and is the 22nd largest trade show in North America. Additionally, it spotlights firearms, ammunition, archery, cutlery, outdoor apparel, optics, camping and other related products. Buyers from all 50 states within the U.S. and more than 75 countries attended the 2010 SHOT Show. Bobby Bernard, with Kuhne + Nagel Inc., a freight forwarding com- pany in Charlotte, N.C., said the freight industry continues to be challenging as major ship lines have consolidated routes and ships. Bernard said a large number of medium-sized ships have been dry-docked and will be sold for scrap. This change will decrease the availabili- ty of service to compa- nies exporting around the world, Bernard said. The forwarder is finding delays and higher prices for bookings. “With the dol- lar declining, exports are strong,” he explained. “As long as the dollar remains low against the Euro, export volume will be strong in 2010. The problem for Vol. 36 No. 4 The Import/Export Wood Purchasing News P.O. Box 34908 Memphis, TN 38184-0908 Address Service Requested PRSRT STD U.S. POSTAGE PAID MEMPHIS, TENN. PERMIT 270 Serving Forest Products Buyers Worldwide February/March 2010 Curtis Struyk is vice president of TMX Shipping Co., Inc. The company has offices in Morehead City, N.C. and Virginia Beach, Va., as well as partnerships around the world. Since 1985, TMX Shipping has worked to provide cus- tomized service, understanding protocol and tending to the smallest details. TMX Shipping is founded on strong customer serv- ice, called Customized TMX, with every cus- tomer having just one account manager who oversees every phase of that customer’s cargo shipments. “As far as we can tell the lumber/log industry is pret- ty strong right now; we’re busy,” Struyk commented. (Editor’s Note: The Import/Export Wood Purchasing News recently discussed the current container, rail and ocean freight trends with Curtis Struyk of TMX Shipping Co., Inc., Morehead City, N.C.; Lloyd Lovett, Transit King City/Northway Forwarding Ltd., Montreal, Que.; and Bobby Bernard of Kuehne + Nagel in Charlotte, N.C. To follow, the three shipping and freight-forwarding experts with 80 years combined experience offer their insight.) By Terry Miller By Terry Miller IBS Reflects Optimism For 2010 SHOT Show Welcomes 60,000 Visitors Curtis Struyk Additional photos on page 10 Additional photos on page 10 Continued on page 11 Continued on page 11 Continued on page 11 Continued on page 11 Niklas Karlsson, Olga Dayneko, Elof Hansson, Inc., Suwanee, Ga.; and Romel Bezerra, Elof Hansson, Inc., Miami, Fla. Larry Mether, Midwest Walnut Co., Council Bluffs, Iowa; and Terry Miller, Import/Export Wood Purchasing News, Memphis, Tenn. Las Vegas, Nevada–This year’s International Builders’ Show (IBS) attracted approximately 70,000 builders, architects, contractors and building product suppliers for the International Builders’ Show at the Las Vegas Convention Center. By all accounts, according to show organizers, the mood was upbeat and hopeful about the future. The National Association of Home Builders (NAHB) developed an innovative service regarding finding new financing for projects that target small and medium sized builders, rendering them hopeful about the year ahead. The chief economist for the NAHB, David Crowe, predicts interest rates will remain low this year, and low inflation will help control the price of building materials….all good news. The NAHB also released its 2010 residential construction at the recent IBS. NAHB is forecasting 697,000 total housing starts in 2010. If this estimate proves correct, it Bobby Bernard Freight Experts Hold Positive Outlooks For Lumber Industry Lloyd Lovett is CEO of Transit King City/Northway Forwarding Ltd., a domestic and interna- tional freight forward- ing company that has been in business for more than 30 years. The firm evolved from a local Montreal stuffing terminal, C.M. Containers Ltd., which was founded by Marc Berard in 1972. As the company grew, Northway Forwarding and King City Containers Ltd. were added to serve customers throughout Canada and the northeastern U.S. Clients ship all over the world including North, Central and South America; the Caribbean; Continental Europe; the Middle East; the South Lloyd Lovett By Michelle Keller and Matthew Fite

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Page 1: Serving Forest Products Buyers Worldwide IBS Reflects Optimism … · Hardwood industry, representing the committed exporters among U.S. Hardwood companies and all major U.S. Hardwood

LLaass VVeeggaass,, NNeevvaaddaa––Among the more than 1,800 exhibitors at the 32nd annualShooting, Hunting and Outdoor Trade (SHOT) Show, held here at Sands Expo andConvention Center, were several manufacturers of gunstock made of hardwoods.They joined producers of gear purchased by hunters, shooters and outdoor enthusi-asts, totaling approximately 60,000 visitors to this year’s four-day event.The SHOT Show generates millions of dollars in revenue that funds the National

Shooting Sports Foundation, owner and sponsor of SHOT, as well as services thathelp “promote, protect and preserve” hunting and the shooting sports.SHOT ranks annually among the fastest growing trade shows and is the 22nd

largest trade show in North America. Additionally, it spotlights firearms, ammunition,archery, cutlery, outdoor apparel, optics, camping and other related products. Buyersfrom all 50 states within the U.S. and more than 75 countries attended the 2010SHOT Show.

Bobby Bernard, withKuhne + Nagel Inc., afreight forwarding com-pany in Charlotte,N.C., said the freightindustry continues tobe challenging asmajor ship lines haveconsolidated routesand ships. Bernardsaid a large number ofmedium-sized shipshave been dry-dockedand will be sold forscrap.This change will

decrease the availabili-ty of service to compa-nies exporting aroundthe world, Bernard said. The forwarder is findingdelays and higher prices for bookings. “With the dol-lar declining, exports are strong,” he explained. “Aslong as the dollar remains low against the Euro,export volume will be strong in 2010. The problem for

Vol. 36 No. 4

The Import/Export Wood Purchasing NewsP.O. Box 34908Memphis, TN 38184-0908

Address Service Requested

PRSRT STDU.S. POSTAGE PAID

MEMPHIS, TENN.PERMIT 270

Serving Forest Products Buyers Worldwide February/March 2010

Curtis Struyk is vicepresident of TMXShipping Co., Inc.The company hasoffices in MoreheadCity, N.C. and VirginiaBeach, Va., as well aspartnerships aroundthe world. Since 1985,TMX Shipping hasworked to provide cus-tomized service,understanding protocoland tending to thesmallest details. TMXShipping is founded onstrong customer serv-ice, called CustomizedTMX, with every cus-tomer having just one

account manager who oversees every phase of thatcustomer’s cargo shipments.“As far as we can tell the lumber/log industry is pret-

ty strong right now; we’re busy,” Struyk commented.

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Curtis Struyk

Additional photos on page 10Additional photos on page 10 Continued on page 11

Continued on page 11 Continued on page 11 Continued on page 11

Niklas Karlsson, Olga Dayneko, Elof Hansson, Inc., Suwanee, Ga.; and Romel Bezerra, Elof Hansson,Inc., Miami, Fla.

Larry Mether, Midwest Walnut Co., Council Bluffs, Iowa; and Terry Miller, Import/Export WoodPurchasing News, Memphis, Tenn.

LLaass VVeeggaass,, NNeevvaaddaa––This year’s International Builders’ Show (IBS) attractedapproximately 70,000 builders, architects, contractors and building product suppliersfor the International Builders’ Show at the Las Vegas Convention Center. By allaccounts, according to show organizers, the mood was upbeat and hopeful about thefuture. The National Association of Home Builders (NAHB) developed an innovative service

regarding finding new financing for projects that target small and medium sizedbuilders, rendering them hopeful about the year ahead. The chief economist for the NAHB, David Crowe, predicts interest rates will remain

low this year, and low inflation will help control the price of building materials….allgood news. The NAHB also released its 2010 residential construction at the recent IBS. NAHB

is forecasting 697,000 total housing starts in 2010. If this estimate proves correct, it

Bobby Bernard

Freight Experts Hold Positive Outlooks For Lumber Industry

Lloyd Lovett is CEOof Transit KingC i t y / N o r t h w a yForwarding Ltd., adomestic and interna-tional freight forward-ing company that hasbeen in business formore than 30 years.The firm evolvedfrom a local Montrealstuffing terminal, C.M.Containers Ltd., whichwas founded by MarcBerard in 1972. As thecompany grew,Northway Forwardingand King CityContainers Ltd. wereadded to serve customers throughout Canada andthe northeastern U.S.Clients ship all over the world including North,

Central and South America; the Caribbean;Continental Europe; the Middle East; the South

Lloyd Lovett

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Page 2: Serving Forest Products Buyers Worldwide IBS Reflects Optimism … · Hardwood industry, representing the committed exporters among U.S. Hardwood companies and all major U.S. Hardwood

States Department ofAgriculture’s ForeignAgricultural Servicecontinues uninter-rupted, and AHECwill receive approxi-mately $10 million in2010 to promoteA m e r i c a nHardwoods over-seas. The American Hardwood ExportCouncil (AHEC) is the leading interna-tional trade association for the U.S.Hardwood industry, representing thecommitted exporters among U.S.Hardwood companies and all major U.S.Hardwood product trade associations.AHEC’s member companies service thegrowing global demand for U.S.Hardwood and represent the full rangeof Hardwood products. AHEC main-tains offices in Japan, Europe,Southeast Asia, China, Korea andMexico, in addition to its Washington,D.C. headquarters, to serve the needsof the global community. For additionalinformation please contact AHEC byphone at 202-463-2720, by fax at 202-463-2787 or consult our website atwww.ahec.org.

After 20 years as a “special project” ofthe American Forest and PaperAssociation (AF&PA), AHEC has nowcompleted its incorporation as a stand-alone 501(c)6 organization for the firsttime. We are also in the process of reg-istering AHEC as an independent organ-ization in all of the countries where wecurrently have staff and offices whichwill enable our overseas promotionalprograms to continue uninterrupted asAF&PA begins to wind down their over-seas activities. Previously, all overseasoffice leases and service contracts wereheld by AF&PA on behalf of AHEC.AHEC will be moving out ofWashington, D.C., and establishing ouroffices within the Hardwood Plywoodand Veneer Association (HPVA) buildingin Reston, Virginia by February 1, 2010.HPVA is generously offering office spaceat an extremely low rate, which will helptremendously as we strive to keepadministrative costs low and focus thevast majority of our resources on over-seas promotion. After the move, AHEC’stelephone number will change to(703)435-2900, although current num-bers will be forwarded through May. Inaddition, the email contact informationfor AHEC staff will also change. MichaelSnow can be reached [email protected]; Di Nguyen can bereached at [email protected] andStefanie Brown at [email protected]. At the same time, it is important to notethat AHEC’s partnership with the United

Page 2 Import/Export Wood Purchasing News

Who’s Who in Import/Exports

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The Department of Natural Resources(DNR) recently released its “State of theTrust Lands” report, containing severalimportant points. Through October of2009 DNR offered 47 sales, whichaccording to the American ForestResource Council (AFRC) sold 45 total-ing 249 million board feet, an estimatedreturn of $48 million. DNR’s report stated its proprietary pro-gram has overspent and the agencyintends to borrow from a companionfund to cover expenses through 2010.DNR’s FY10 sales program is expectedto produce about 740 mmbf, part ofwhich is FY09 no-bid sales. DNRintends to sell about 600 mmbf per yearbetween FY11 and FY14, as sustainedharvest allows. The report also statedlog sales comprised 5 percent of DNR’stotal FY09 volume and will increase to9-1/2 percent of FY10’s volume. Salesthat were legislatively authorizedaccounted for 20 percent of the volume.For more information and to review thefull report visit www.dnr.wa.gov.

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The Senate Energy and NaturalResources Subcommittee on PublicLands chaired by Senator Ron Wyden(D-OR) held a hearing regarding themanagement of federal forests inresponse to climate change.Dr. Kit Batten, Dept. of Interior; TomTidwell, Chief of Forest Service; Dr.Beverly Law, Oregon State University;

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Jack A. Bowen Bob Lackey Matthew T. Netterville

Continued on page 11 Continued on page 12 Continued on page 12Continued on page 12

Dr. Elaine O’Neil, University ofWashington; and Chris Wood, TroutUnlimited all were heard by theCommittee.The focus of much of the hearing wascarbon sequestration. Chief Tidwell saidthat carbon is unlikely to be a primarydriver in the agency’s future manage-ment decisions regarding cap and trade.Instead the emphasis should be onmanagement that increases diversityand resiliency to catastrophic eventssuch as fire, insects and disease. Dr.O’Neil noted the vast amounts of carbonthat are released into the atmosphere bywildfires, comparing it with the amountof carbon healthy forests pull out of theatmosphere and the long-term storagepotential of forest products, as well astheir superior performance against othertypes of building materials which areenergy-intensive to produce. For more information and awebcast of the hearing visit www.ener-gy.senate.gov.

FFoorreesstt CCeerrttiiffiiccaattiioonn PPeettiittiioonnA petition was filed with the FederalTrade Commission (FTC) againstSustainable Forestry Initiative, Inc. (SFI)by the Seattle-based Forest Law Center.This petition accuses SFI of deceptiveand misleading advertising practices. Acomplaint was also filed by the ForestLaw Center with the Internal RevenueService that alleged abuse of the corpo-ration’s non-profit status. Represented by the Washington, D.C.,office of Steptoe and Johnson, a groupof forest product companies filed a com-plaint with the FTC against the ForestStewardship Council’s certification sys-

Bob Lackey hasbeen in sales withIdaho Veneer,located in PostFalls, Idaho, forthe past 11 yearsand has been withthe company for31 years.Idaho Veneer

offers edge glued4x8-foot sheets,as well as flitchstock in a range ofthicknesses (1/10-inch to 1/50-inch),cuts (plain slicedand vertical grainsliced and rotary)and species(Knotty and ClearIdaho White Pine,V.G. Douglas Fir,Western RedAlder, WesternRed Cedar and

Matthew T.Netterville is sec-retary/treasurer,plant managerand involved insales for FredN e t t e r v i l l eLumber Co. inWoodville, Miss.This lumber com-pany offers RedOak, White Oak,Ash, Poplar andCypress on anational and inter-national basis.This wood comesin Rough, S2S,S4S, 1E, Rippedto Width, MoldedProducts, Re-sawing and withFull DimensionCapabilities.Unique servicesand products

Dominique Lauzé

For more information on AHEC and the export promotion programs, call (202)463-2720, fax (202)463-2787, or visit the website, www.ahec.org.

D o m i n i q u eLauzé is a salesrep resen ta t i veand developer forthe PG Group(PG HardwoodFlooring Inc. andModel HardwoodInc.) in Saint-E d o u a r d - d e -Lotbiniere, Que.The PG Groupm a n u f a c t u r e shigh-end, warran-t y - b a c k e dHardwood flooringfor residential,commercial andinstitutional use(2, 2-1/2, 2-3/4, 3-1/2, 4-1/2, Selectand Better, Pacificand Natural, 0.7868 inch and 0.748inch thick, highgloss, semi-gloss,

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Continued on page 26

A New Era Begins for AHEC

Jack A. Bowen isthe vice presidentof sales forHancock LumberCo. in Casco,Maine.Hancock LumberCo. which special-izes in EasternWhite Pineboards, providesspecial drying,m a n u f a c t u r e s(NELMA) patternproducts as wellas other specialpatterns as need-ed.Hancock LumberCo. is a memberof NELMA,Window and DoorM a n u f a c t u r e r sAssoc., NorthA m e r i c a nW h o l e s a l e

®

CC hh ii nn aa ––According to the recentlyreleased Seventh National ForestInventory, China’s forests cover an areaof 195 million hectares, or 20.4 percentof the total land area. The estimatedgrowing stock is 13,721 million cubicmeters. Of the total forest area, naturalforest accounts for 120 million hectares.The inventory’s findings have beeninterpretedas showingthat China’sf o r e s tr e s o u r c e sh a v eentered anew and fastdevelopingstage, how-ever, forestp r o t e c t i o nand man-agement isstill problem-atic in manyareas, saysthe inventoryreport ingeneral, theincrease off o r e s tr e s o u r c e sdoes not equate to the demands ofChinese society, especially in relation toprotection and conservation. The latestnational inventory began in 2004 andended in 2008, five years, and morethan 20,000 technical personnel wereinvolved.To address climate change, China willincrease its forest area by 40 millionhectares. This will be achieved throughimplementation of the “Forestry ActionPlan to Cope with Climate Change.”The state will take the following meas-ures:

•Further strengthen tree plantingaround villages and crop fields, as wellas along roads and canals;

• Improve forest management. Thegrowing stock per hectare in China iswell below the world average.

•Strengthening forest protection meas-ures and take strong action againstillegal felling and the unauthorizedoccupation of forestlands.

According to information from theforestry department of HeilongjangProvince, a plan for the conservationand economic transition of DaXinganling and Xiao Xinganling

Mountains, the largest state-owned for-est district in China, has been submittedby Forestry Department of HeilongjangProvince.This plan will be phased in over twoyears. Eventually, harvesting will becompletely banned in this area andenrichment planting will be carried out.Also rehabilitation and conservation ofwetlands will be implemented. It is fore-cast that by the year 2020, the ecologi-cal environment in this area will havebeen recovered and the forest cover willreach over 70 percent, as reported byFordaq.

China Phases In ForestInventory Plans

China

Page 3: Serving Forest Products Buyers Worldwide IBS Reflects Optimism … · Hardwood industry, representing the committed exporters among U.S. Hardwood companies and all major U.S. Hardwood

FEATURES:IBS Reflects Optimism For 2010 . . . . .1

SHOT Show Welcomes 60,000 Visitors . .1

Freight Experts Hold Positive Outlook .1

AIR DIVISION . . . . . . . . . . . . . . . . . . . .4

ELOF HANSSON AB . . . . . . . . . . . . . .5

2009 Tapei International Expo . . . . . . .6

Greenbuild 2009 . . . . . . . . . . . . . . . . . .8

Maderalia Fair . . . . . . . . . . . . . . . . . . . .9

DEPARTMENTS:Who's Who in Imports/Exports .............2

Washington Scene................................2

World Export Update ............................2

China Phases In Forestry Plans...........2

Are You Ready For The Recovery?......3

Business Trends Abroad.....................15

Business Trends Can., Hardwoods.............16

Business Trends U.S.A., Hardwoods.............18

Stock Exchange ........................ 19 & 20

Newswires ..........................................22

Correction ...........................................26

Obituary ..............................................26

Import/Export Calendar.......................26

Classified Opportunities......................27

Advertisers Index ................................27

U.S. & Canadian Softwood Forest Products

Export Suppliers.......................28, 29 & 30

Table of Contents

Send address changes to Import/Export Wood Purchasing

News, P.O. Box 34908, Memphis, TN 38184-0908.

Annual subscription rates - 6 bi-monthly issuesU.S. $75 - 1 year; $90 - 2 years; $100 - 3 years;CANADIAN & FOREIGN ORDERS MUST BE PAID BYCHECK DRAWN ON U.S. BANK, CREDIT CARD, OR BYWIRE TRANSFER Canada $90 (U.S. dollars) - 1 year; $105 -2 years; $130 - 3 years; Foreign (airmail) $140 - 1 year; $224- 2 years (U.S. dollars)

A Bi-Monthly newspaper servingthe International wood trade.

Published byInternational Wood Trade Publications, Inc.

1235 Sycamore View P. O. Box 34908Memphis, TN 38134

Tel. (901) 372-8280 FAX (901) 373-6180Web Site: http://www.woodpurchasingnews.com

E-Mail Addresses:Advertising: [email protected]

Editorial: [email protected]: [email protected]

Gary Miller - PresidentWayne Miller - Vice President/Executive Editor Paul Miller, Jr. - Vice President/EditorTerry Miller - Vice President/Associate EditorPaul Miller - Secretary/TreasurerSue Putnam - Editorial DirectorMichelle Keller - Associate EditorJohn M. Gray, Jr. - Production/Art DirectorWalter Lee - Production/Asst. Art DirectorRachael Stokes - Advertising ManagerLisa Carpenter - Circulation Manager

U.S. Correspondents: Chicago, Grand Rapids, Mich., HighPoint, N.C., Los Angeles, Portland, Ore., MemphisCanadian Correspondents: TorontoForeign Correspondents: Brazil, Philippines, Malaysia, Chile,Bangkok, Thailand, Singapore, New Zealand.The Import/Export Wood Purchasing News is the product ofa company and its affiliates that have been in the publishingbusiness for over 84 years.Other publications edited for specialized markets and distrib-uted worldwide include:Forest Products Export Directory • Hardwood PurchasingHandbook • National Hardwood Magazine • Dimension & WoodComponents Buyer’s Guide • Imported Wood Purchasing Guide• Green Book’s Hardwood Marketing Directory • Green Book’sSoftwood Marketing Directory • The Softwood Forest ProductsBuyer

The publisher reserves the right to accept orreject editorial content and Advertisementsat the staff’s discretion.

A leading bank and invest-ment executive. IWPA mem-bers and small businesses con-tinue to suffer from reducedcredit lines and new stringent lendingrequirements. Will credit start to flowagain?Flooring Executive Wayne Cotton.Consumers found imported flooring tobe their “go to” material for upgrades and

remodeling. Will thecrush continue? Orwill domestic “lookalikes” take marketshare?Executive memberof the FloridaHome BuildersAssociation. If thereis a poster child forthe recession, it’s

housing. Although there’s been anuptick in sales of existing homes due toa combination of factors: low interestrates, homebuyer tax credit extensionand the return of investment purchases,there are still problems with new home-building, foreclosures and tight credit.Can there be recovery without housing?The economy isn’t the sole focus of theIWPA convention. New laws and regula-tions that hold significant penalties for

There’s a song lyric that goes “I’ve beendown for so long it looks up to me…”That is descriptive of what I am hearingfrom IWPA members. It has been a bru-tal couple of years for industry. Cut-backs, lay-offs, and re-organizationswere the coping mechanisms to stayafloat until things turn around. As moreand more indicators point to a turn-around, it is time to plan for the “newnormal.” No one is predicting an abruptshift in fortunes. A recent survey by theNational Federation of IndependentBusiness shows that small businessesare cautious about what lies ahead bothin business outlook and the effect ofgovernment programs. What does lie ahead? IWPA is provid-ing answers on how to plan for the “newnormal” by featuring market sector lead-ers and experts during its April 28 to 30convention in Miami Beach, Florida. Theconvention at the Eden Roc hotel willhost presentations, new networking con-tacts and other valued-added programsunique to the imported wood industry. The IWPA convention is perfectly timedto evaluate 2010’s first quarter perform-ance and consider trends leading to theremainder of the year. Who’s on tap totalk and discuss the economy and out-look for industry?

Continued on page 12

non-compliance came into play over thepast year. Attendees will hear from

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February/March 2010 Page 3

Are You Ready For The Recovery?

FSC certification ensures responsible use

of forest resources. SW-COC-000734

© 1996 Forest Stewardship Concil A.C.

Page 4: Serving Forest Products Buyers Worldwide IBS Reflects Optimism … · Hardwood industry, representing the committed exporters among U.S. Hardwood companies and all major U.S. Hardwood

At Air Division, only American hardwood is usednow that Teak, which was Air’s leading species,has been discontinued. The firm believes that U.S.material provides a more reliable source.

The company’s well-established premium PlankLiving range of products now only uses White Oakand Black Walnut.

Page 4 Import/Export Wood Purchasing News

AIR DIVISION: No Ordinary Purveyor Of Fine Furniture

SS ii nn gg aa pp oo rr ee ,, AA ss ii aa ––This entrepreneurial enterprising company (AirDivision) punches way beyond its weight, rather like the island state onwhich it is located. Regularly quoted by government ministers and govern-ment-backed industry bodies as an example to all, Air Division is hard todefine.The company is at the leading edge of designer furniture in the Singaporeretail market with two prestigious showrooms for local consumers, as wellas trying extremely hard to bring its own brand of Asian service, design andcustom furniture quality to international markets. Recently, it was grantedprime space at the 2010 “imm” Cologne in the prestigious Pure Hall, afterfive previous attempts. Christopher Soh, marketing manager, believes thisis a testament to the company’s past achievements in becoming a leadingAsian supplier of distinctive designer furniture on the world stage. Sohwould probably be the first to admit that this has not been without the helpof International Enterprise (IE) Singapore, Spring Singapore, theDesignSingapore Council and the Singapore Furniture Industries Council(SFIC), where he worked for a number of years before joining Air. But that’sexactly how things do function in Singapore. Impress the establishmentand little expense is spared to encourage effort and assist towards suc-cess. For example, in 2009 Air Division as one of a band of select furniture

designer/makers that exhibited in Milanwith SFIC under their Singapore Mozaicumbrella; and accompanied by formerPrime Minister, now Senior Minister,Goh Chok Tong, no less. This secondMilan appearance was “better than otherfairs we have been to, and several goodcontacts were made with buyers recep-tive to our designs,” Soh said.Of the four homegrown brands, PlankLiving accounts for up to 50 percent oftotal offerings, from which the woodencollection is mainly derived. Sofas arethe other main items. Designs currentlycome from within, by the company’s owndesigners, but consideration may alsobe given to outside commissioneddesigners. All manufacturing is contract-ed out, mainly in the neighboring Stateof Johor in Malaysia and some are stillmade in Singapore where mass produc-tion of furniture is a thing of the past.Only bespoke furniture making survivesin Singapore – a country where tourism,retail, biomedical and aviation industriesnow set the price of labor. The companyis naturally reticent about its producer

Continued on page 12

Air Division is at the leading edge of designer furniture in theSingapore retail market with two prestigious showrooms forlocal consumers.

Christopher Soh, marketing manager for Air Division inSingapore, says “knowing that American hardwood is fromsustainable sources” has been key to success of the productsby this award-winning firm.

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Page 5: Serving Forest Products Buyers Worldwide IBS Reflects Optimism … · Hardwood industry, representing the committed exporters among U.S. Hardwood companies and all major U.S. Hardwood

February/March 2010 Page 5

The ELOF HANSSON AB—Integrated Global Business FacilitatorBByy TTeerrrryy MMiilllleerr

Continued on page 13

Faye Wargo and Mary Zingalis are Administrative Assistants and pro-vide important support for the group of traders.

Joel Osterloh is Vice President in charge of the Timber Division.(L to R): Niklas Karlsson, International Trader; Olga Dayneko,International Trader; Joel Osterloh, Vice President; and NirianOrdonez (sitting), International Trader

Robert Maynard, International Trader

Romel Bezerra, Senior Trader

Ipanema Decking is available in 5/4” x 4”, 5/4” x 6”wide, 1”x 4” and 1” x 6” wide, all 7-to 16-feet in length.The product comes pre-finished all four sides andends and is fully certified. In four color selections(Walnut, Mahogany, Golden and Natural) and variousprofiles, including two faces flat and one face flat/anti-slip, with pre-grooved sides for easy installation.

Mel Lundberg, International TraderBill White, International Trader

GGootthheennbbuurrgg,, SSwweeddeenn——Elof HanssonAB, headquartered here, offers pulp,paper and timber products, as well assome industrial and consumer products.Elof Hansson trades importedHardwoods in species such asMahogany, Khaya, Sapele, SpanishCedar, Ipe, Jatoba, Teak, Tigerwood,Cumala and Eucalyptus. North Americanhardwood lumber and hardwood flooringavailable through Elof Hansson includeRed and White Oak, Poplar, Walnut,Cherry, Maple, Alder and Basswood. Thefirm also offers panel products and soft-woods including hardwood plywood; PinePlywood; MDF; particleboard; hardboard;tileboard; OSB; edge-glued panels;Southern Yellow Pine; Douglas Fir;Hemlock Fir; Pinus Elliottii; Pinus Taeda;and Radiata Pine.A new decking line by Elof Hansson,Ipanema Decking Co., offers hardwooddecking in more than 20 exotic species.The decking is available in 5/4” x 4”, 5/4”x 6” wide, 1” x 4” and 1” x 6” wide, all 7-to16-feet in length. The product comes pre-finished all four sides and ends and is fullycertified. In four color selections (Walnut,Mahogany, Golden and Natural) and vari-ous profiles including two faces flat and

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struction and building materials show.It serves not only as a trading platformfor suppliers and buyers, but as animportant channel for purchasing

basic and large-scale constructionitems. Held this past year fromDecember 10th to the 13th, the showdrew a record 60,000 visitors, mostly

Page 6 Import/Export Wood Purchasing News

The 2009 Taipei International Building, Construction and Decoration Expo

The 2009 Taipei International Building, Construction and Decoration Expo.

The Taipei International Building,Construction and DecorationExhibition, which debuted in 1987, isTaiwan’s largest international con-

(L to R): Joseph Phaneuf, Northeastern Loggers Association, Old Forge, New York; Eddie Yeh, Charlie Barnesand Xu Fang - Engineered Wood Association, American Softwoods, Shanghai, China

BByy DDíí HH.. NNgguuyyeenn

architects and designers.American hardwoods had a minimalshowing at the Exhibition. SeveralTaiwanese vendors displayed ungrad-ed lumber, mostly milled from logssent to China and labeled by state oforigin as species like “TennesseeOak,” a common labeling practice inChina as well as Taiwan. Furniture on display was primarilytropical hardwoods from SoutheastAsia with little to none U.S. hardwoodspecies utilized in its furniture.How American hardwoods were usedin Taiwan appeared in structural appli-cations like posts, beams, and glulam;wood used structurally is perceived asboth environmentally friendly and lesslikely to suffer damage in earthquakescompared to other building materials.Judging by the exposition, it’s clearwhat Taiwan’s unique role is in thehardwood industry in China. Whilethere is considerable Taiwaneseinvestment in the wood processingand property development industriesin China, Taiwan also serves as amajor hub for doing business on themainland. It is estimated that foreignowned companies, primarily fromHong Kong and Taiwan-account forbetween 50% and 80% of Chinesefurniture production, making Taiwan atleast as important as all of mainlandChina in the selection of Americanhardwoods. Exports of hardwood lumber havedecreased nearly 35% from 2008 to2009 with annualized exports valuedat $6.6 million, nearly one-fifth ofexports in 2004.Also, Taiwan has affluent populationsand more mature economies whereconsumers spend large percentagesof their income on housing and fur-nishings. Although many productionfacilities are now located on theChinese mainland, most of the deci-sion making in terms of raw materialsspecification, design, style, and pro-duction control, are made from headoffices in Taiwan. Unless U.S.exporters are knowledgeable of thesespecific decision makers, it’s best forthem not to exhibit at this show.

Salamanca Lumber Co., Inc. PO Box 416, Salamanca, New York State 14779, USA.Phone: (1) 716-945-4810 Fax: (1) 716-945-1531 Attn: Mr. Barry Yuhas.

Email: [email protected]

30

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February/March 2010 Page 7

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Page 8 Import/Export Wood Purchasing News

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Gore Emphasizes ‘Green’ Responsibilities At Greenbuild 2009

Mark Hayes and Rob Brooks, Weyerhaeuser Hardwoods, Beaverton,Ore.

Matt Mladenka and Matt Medlin, East Teak Fine Hardwoods Inc., Sultan,Wash.

Paul Davis and Richard Poindexter, Columbia Forest Products Inc.,Greensboro, N.C.

Tom Murray, Rex Lumber Co., Acton, Mass.Rob Romines and Kelly Niehoff, M. Bohlke Veneer Corp., Fairfield, Ohio

Photos By Brittney Cunningham

Carol Romero, Exotic Hardwoods, Oakland, Calif.

Mona (Na) Yee and Cary Bell, Kolbe & KolbeMillwork Co. Inc., Wausau, Wis.

PPhhooeenniixx,, AArriizzoonnaa––With 28,000 peo-ple in attendance representing 75 coun-tries, former U.S. Vice President Al Goreaddressed a diverse crowd at Phoenix’sChase Field during the 2009 GreenbuildInternational Conference & Expo, host-ed by U.S. Green Building Council(USGBC).The Nobel laureate served as keynotespeaker at the annual event and encour-aged attendees to take responsibility forexpanding global green building. Goresaid the economic crisis and the climatecrisis are connected. He shared his viewthat a shift to renewable energy that isdomestically produced would createmore jobs by constructing windmills,solar power, green construction andretrofits on existing buildings.Gore said, “The green movement isgrowing by leaps and bounds across theU.S. and the world.”He was introduced at Greenbuild 2009by U.S. Green Building CouncilChairman and CEO Rick Fedrizzi.By all reports, enthusiastic crowds wereat Greenbuild, which this year featuredmore than 1,000 exhibitors.Included in the exhibit hall was theCertified Wood Pavilion, which hostedsuch associations as the ForestStewardship Council, the CompositePanel Assoc., and the SustainableForestry Intiative. In addition to keynote speaker Gore,Greenbuild hosted seven ‘masterspeakers’ who represented facets of thegreen industry, including those thatfocused on the environment as well aseconomics.Attendees had the option to attendmore than 100 educational sessionsheld throughout the 3-day event. Theseincluded: workshops geared towardhelping companies qualify for a LEED

Continued on page 15

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February/March 2010 Page 9

Exhibitors at The International Wood and Furniture Industries SuppliersFair (Maderalia) echoed positive results they gained from participating inthis wood processing fair.

Among exhibitors, representatives of the American wood industry wereon-hand to underscore their commitment with the Spanish wood com-munity in these challenging economic times.

VVaalleenncciiaa,, SSppaaiinn––With just a fewhours to go before the close of the34th edition of the FIMMA-Maderalia fairs, held in FeriaValencia, there was nothing butpraise for an event that has beendescribed by exhibitors as deliver-ing “a pleasant surprise.”Exhibitors at the International Fairfor Woodworking Machinery andTools (FIMMA) and the InternationalWood and Furniture IndustriesSuppliers Fair (Maderalia) all point-ed to the positive results they hadgained from participating in the twospecialist wood processing andassociated technology fairs.North American wood productswere evident in the Maderalia showwith the main goal of making explic-it its commitment with the Spanishwood community in these times ofdifficulties. It was also the timing to detect ifany change has occurred or the per-ception had evolved regarding theuse of U.S. softwoods, noted theSoftwood Export Council, whichdetermined signs were evident thatthe industry is turning in a positivedirection.Despite the bitter period that thelocal industry has been facing,many attendees said there aresome good signs that may signalthe end of the downward trend. One importer noted that the timingof the fair was good due to theattractive prices and the exchangerate. As Joaquim Feixas, managingdirector of Mekakim, said, “We werecoming from a negative startingpoint and a general mood ofdespondency because of the cur-rent economic climate. For us how-ever this year’s Maderalia was avery pleasant surprise. We haveopened up new business channelsduring the fair that throw some lightonto this climate of uncertainty.”Biesse’s sales director, CarlosVivancos, was clear about the valueof FIMMA- Maderalia as a meetingpoint for the industry. “While the fairdid not reveal itself in all its splendorbecause of the cost cutting all of usexhibitors have had to contend within the face of the current unstablecircumstances, it is true to say thateveryone is satisfied.”One of the values that this year’sexhibitors singled out the most wasthe number of professionals thatvisited and the quality of the visitors.These were professionals whoknew what they wanted and whothis year came with a very specificshopping list.According to Tono Estrada, manag-er at Lamichapa, “The general com-ment is that there is no other fair forthis industry in Europe that has hadas many visitors through the door asthis one - at least that was the feel-ing in the aisles. Now we just need

Maderalia Fair Promotes U.S. Products

to start thinking about the nextFIMMA-Maderalia.”The sentiment was echoed byVirgilio Delgado, head of sales forthe Iberian Peninsula at the GarnicaPlywood group, which was exhibit-ing at Maderalia for the first time.“We did not think that there wouldbe as many visitors as at othershows but we had a constantstream of visitors on our stand with

a very professional profile – carpen-ters, architects and so on – as wellas being able to attend to our exist-ing customers we made some inter-esting contacts for the future.”In regards to the international pres-ence at the show, Jose MiguelJiménez, director of Tamalsa and amember of Maderalia’s OrganisingCommittee, said that “what wasmost surprising was the healthy

commercial atmosphere. Wereceived a large number of unex-pected visits in the export depart-ment, as it were, essentially buyersfrom South America and NorthAfrica.”For information on the 2010Maderalia Fair, go to websitewww.maderalia.feriavalencia.com.

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Page 10 Import/Export Wood Purchasing News

IBS PHOTOS - Continued from page 1

SHOT PHOTOS - Continued from page 1

Lawrence Newton and Jeff Mclendon, U.S. Lumber Group Inc., Duluth,Ga.; and Peter Crowell, Durgin & Crowell Lumber Co., New London, N.H.

Brad Stout, Midwest Walnut Co., Willow Springs, Mo.; Peter Crowell,Durgin & Crowell Lumber Co., New London, N.H.; and Stan Smith andShane Cook, Midwest Walnut Co.

Jim Abbott, Boise Cascade LLC, Philadelphia, Pa.; Phil Bannos, BoiseCascade LLC, Chicago, Ill.; and Vernon Banks, Boise Cascade LLC,Boise, Idaho

John Makuvek, POSTSAVER® USA, Kresgeville, Pa.; Peter Crowell,Durgin & Crowell Lumber Co., New London, N.H.; and Kenny Bernstein,Mid-State Lumber Corp., Branchburg, N.J.

Philippe Leblanc, Lumber Resources Inc., Quebec City, Que.; and ShaneCook, Midwest Walnut Co., Willow Springs, Mo.

Doug Phelps and Carla Baker, Pella Corp., Pella, Iowa

Vanessa Parker, Les Baer Custom Inc., Le Claire, Iowa

Daniel Moore, L.J. Smith Inc., Bowerston, Ohio; Dan O’Brien, UniversalBuilding Systems Inc., Minneapolis, Minn.; and Craig Tickner, L.J. SmithInc.

Sarah Blackburn and Matt Fabbri, Genuwine Cellars Inc., Winnipeg,Manitoba, Man.

Rifles by Marlin, New Haven, Conn., on display at the SHOT Show.The Ruger LCR, made in Newport, N.H., was among Ruger’s products.

The Rossi USA, Miami, Fla., display.

Russell Richardson, Southern Pine Council, Kenner, La.; Digges Morgan,President, SFPA, also Southern Pine Council, Kenner, La.; and RichardWallace, SFPA, Southern Forest Products Association, Kenner, La.

Craig Combs, PPG Machine Applied Coatings, Medford, Ore.; GregTroutt, Michigan Prestain, Grand Rapids, Mich.; David Jeffers, PPGMachine Applied Coatings, Raleigh, N.C.; and Chuck Gregory, KC ForestProducts, Snowflake, Ariz.

Terry Miller, Import/Export Wood Purchasing News, Memphis, Tenn.; and Craig and Tom Stout, S&K IndustriesInc., Lexington, Mo.

Joe Herman and Stu Brown, Hurd Windows & Doors, Medford, Wis.

Andrew Dingman, Nordic Engineered Wood, Atlanta, Ga.; Tony Saad,Nordic Engineered Wood, Toronto, Ont.; Albert Renaud, NordicEngineered Wood, Montreal, Que.; Terry Miller, Import/Export WoodPurchasing News, Memphis, Tenn.; and Jean-Marc Dubois, NordicEngineered Wood, Slingerlands, N.Y.

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February/March 2010 Page 11

“In the last three months our businesshas increased up to 30 percent. Shipsare full and the Asian ships are selling atclose to 100 percent.”As for rate increases Struyk said the

company took an increase in Januaryand at press time a $100 GRI had beenproposed on the West Coast and $150on the East Coast. “It’s not as bad on theMediterranean in Italy and Spain, thoserates are not increasing as fast as theAsian rates. All the hardwood is goinginto Asia, at least from what I’m seeing,”he said.As for changes to come in the shipping

industry Struyk said, “It’s going to beinteresting to see what happens afterthe Chinese New Year, because a lot ofpeople are speculating that it’s panicbuying, that their surpluses are low andthere is a shortage of lumber. But let’ssee what happens after the ChineseNew Year. If these levels hold, somepeople think that they’re going to dropback to about half the business theywere doing before the New Year.”“I think the best we can hope for

throughout 2010 is for business to staysteady on the export side,” he contin-ued. “Hopefully steamship suppliers willadd more space into the surface so wecan ship more containers, becausenobody makes a profit if we can’t ship it.Let’s hope the rates don’t stop the buy-ing. Do the manufacturers have any realorders and sustainable business? That’sthe real question that needs to beanswered.”Struyk said TMX Shipping Company

would continue to fight for lower ratesand offer the best service at the bestprice on the market.

Pacific and East, West and South Africa.In a recent interview, he said, “We are

starting to see signs the economy isheaded in the right direction for recoveryslowly.

“The export market for lumber/logsappears to be picking up with the FarEast leading the way, followed up by theMiddle East, Mediterranean andEurope,” Lovett said.

“The container freight rates are like anyother industry where supply anddemand dictate the price fluctuationsthat we are experiencing on a monthlybasis. In 2008,” he said, “the lumberindustry was subjected to ocean freightincreases in some cases between 25percent and 40 percent. The secondquarter of 2009, container prices onaverage declined approximately 15 per-cent to 20 percent.

“Supply and demand is perhaps one ofthe most fundamental concepts of eco-nomics and is the backbone of a marketeconomy,” Lovett continued. “With thatin mind, in 2010 you will see an overallreduction of container ships, due to asteady decline of imports, and moresteamship lines sharing space on eachother’s vessels to streamline their costsand ensure vessels are completelybooked with what they refer to as rev-enue neutral cargo. There is a goodchance that export container prices willincrease slightly in the first and secondquarters due to the fact that forest prod-ucts are not considered a revenue neu-tral cargo. King City/Northway stronglybelieves that rates will not escalate tothe prices that were implemented in2008.

The year 2009 reminds me of a famousquote from Sir Winston Churchill: “ ‘Ifyou’re going through hell, keep going.’I’m glad to see that year behind us andlook forward to a healthy and prosper-ous 2010 for our forest industry.”

FREIGHT - StruykContinued from page 1

FREIGHT - BernardContinued from page 1

FREIGHT - LovettContinued from page 1

Continued on page 12

VENICE EUROPEAN HARDWOOD DIVISION

EUROPEAN HARDWOOD TROPICAL HARDWOOD

ROMEA LEGNAMI S.p.A.Italy - 30030 Gambarare di Mira (Venice) - S.S. 309 Romea - Ang. Via Onari - Ph +39 041 5629811 - Fax +39 041 5629810

www.romealegnami.com - [email protected]

Kyoto Club

©

FSC Trademark© 1996Forest Stewardship Council A.C.

FSC SUPPLIER - ICILA - COC - 031

Member

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NWFANationalWood FlooringAssociation

ASSOC I ATO

QUALITY. ADVOCACY. LEADERSHIP.

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Celebrating 50 Years

MAIN HARDWOOD SPECIES: "AFRICAN MAHOGANY (KHAYA), AFRORMOSIA, ANEGRE, AYOUS, BUBINGA, IROKO, MAKORE, NIANGON, OKOUME, OVANGKOL (SHEDUA),

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BOLOGNA TROPICAL HARDWOOD DIVISION

continue to require such technologicaladvances in step with regulatory compli-ance,” Bernard concluded.With more than 55,000 employees and

its global network of 900 offices in morethan 100 countries, Kuehne + Nagel hasevolved from a traditional internationalfreight forwarder to a global provider ofintegrated supply chain solutions for acomprehensive range of industries. Thefirm has more than 7 million squaremeters/75 million square feet of world-wide warehouse space.

companies exporting will be a shortageof equipment at inland depots and ves-sel space. These two factors will slowthe export growth for 2010.”Bernard said exports of lumber and

logs were down 22 and 35 percentrespectively from 2008 in 2009. Inregards to current demand he comment-ed, “Demand is high, equipment is spot-ty and vessel space is very tight.Eleven percent of the world’s fleet is laidup at anchorage, along with a relativenumber of empty containers, creatingsupply shortage. The vessels and equip-ment will not be brought back into serv-ice until pricing reaches a compensativelevel.”

The company is anticipating rateincreases throughout 2010. Whenasked what Kuehne+Nagel’s plans toadjust in the current market, Bernardsaid the company is actively seekingspace allocations and price commit-ments from the carriers to bring stabilityin costs and shipping schedules to theforest products market.“Our company continues to grow mar-

ket share and make technologicaladvances providing seamless interfacebetween exporters, suppliers, trucking,railand ocean carriers. The industry will

IBS - Continued from page 1

would mark the second lowest annualhousing start figure, but would be a 25.9percent increase over the 2009 mark of553,800.NAHB anticipates the recovery to occur

in the single-family sector, and predictsa 37.7 percent rise from 443,000 lastyear to 610,000 housing starts this year.However, for the first time in 27 years of

IBS’s existence, the event’s showcasehome – the New American Home 2010 –was not completed in time for the showdue to financing problems, related to theLas Vegas area’s high foreclosure rate.

The three-day IBS is chocked full ofdaily events as well as hosting the exhi-bition hall. A total of 175 education sem-inars, taught by industry experts, wereheld daily and keynote speakers fromthe various industries represented atIBS make daily presentations. Approximately 1,500 companies were

on hand to exhibit their products in 300categories.For more information on the show, visit

its website at www.BuilderShow.com.

Lumber Assoc., NSF InternationalStrategic Registration, SustainableForestry Initiative and ForestStewardship Council.Bowen has been in his present positionfor eight years. He began his career inthe forest products industry as a frontline supervisor in 1986.Bowen is a graduate of Mt. Blue HighSchool in Farmington, Maine. Hereceived an associate’s degree in busi-ness from Auburn University in Auburn,

WHO’S WHO - BowenContinued from page 2

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Page 12 Import/Export Wood Purchasing News

Dominique Lauzé [email protected].

WHO’S WHO - LackeyContinued from page 2

WHO’S WHO - LauzéContinued from page 2

WHO’S WHO - NettervilleContinued from page 2

Hemlock).Lackey was born in Post Falls and

graduated from Post Falls High Schoolin 1973. He started with Idaho Veneer in1978 shoveling sawdust and has servedthe company in various capacitiesthroughout his tenure, giving him valu-able background knowledge and experi-ence which he uses to better serve thecustomers. In his spare time, Lackey enjoys spend-

ing time with his family, hunting, fishingand water and snow sports. He and hiswife, Chery, have four children, Brian,35, Wendy 33, Kylie 30, and Luke28, and three grandchildren, Bailey,Connor and Theryn.

Ala.Bowen and his wife of five years, Anna,have two children Derek and Katie and adog named Bodie.

satin, wax and extreme finish for com-mercial use). Engineered products arealso available in seven species, includ-ing two exotics. It comes in widths up to5-3/16’’. The company purchases over16 million board feet annually of RedOak, Birch, Hard and Silver Maple, Ash,Cherry, Walnut, Jatoba and Tiger Wood.The PG Group also provides onlineordering, model respects delivery dead-lines, and can produce short runs. Thefirm is a member of the National WoodFlooring Assoc., World Floor CoveringAssoc. and the Ontario Forest IndustriesAssoc. - Home of CLA Grading &Inspection.Lauzé has been in his present positionfor 11 years. He began his career withPG Hardwood Flooring in 1987 as asummer job at 17 years old sortingwidths of lumber from the gangsawmachine and became a full time employ-ee in 1992. Lauzé has also worked asan internal sales consultant for JELD-WEN Windows and Doors.Lauzé is a graduate of Cegep Ste-Foyand Laval University, both in Ste-Foy,Que.Lauzé and his companion of 11 years,France Lemay, have two children. Heenjoys fishing, raquettes, and drivingsnowmobiles and motorcycles.For more information, contact

offered include Cypress and hardwoodmill-worked products, glued panels andsanding capabilities.Fred Netterville Lumber Co. is a mem-ber of the Hardwood ManufacturersAssociation, the National HardwoodLumber Association and the HardwoodFederation.Netterville has worked for FredNetterville Lumber Co. for eight years,the last four in his current position. Hehas worked in the import/export industryfor these four years.Netterville graduated from WilkinsonCounty Christian Academy in Woodville.He also graduated from SoutheasternLouisiana University with a degree inaccounting.Netterville is vice president of theSouthwest Club. He and his wife, ErinNetterville, have been married fouryears. In his free-time, Netterville says,“I am very passionate about taking theproducts that I help produce at workevery day and putting them to use. I lovedoing remodeling and building smallpieces of furniture and other things.”

MCCLENDON -Continued from page 3

hands-on experts on how to demon-strate due diligence for the Lacey Act.Panelists will recommend best prac-tices, how special Lacey Act insuranceworks and what to do if a shipment isdetained. Composite wood importers will benefitfrom the expertise by Paul Garretto,U.S. Customs Specialist, who will pro-vide case studies on tariff classifica-tions. Using the wrong classification cancost a company thousands of dollars inpenalties. All importers will want to hear updateson the controversial Importer SecurityFiling (ISF) or “10+2” Customs program.There are still many unanswered ques-tions on compliance and paperwork pro-cessing. Non-filing could result in anotice of liquidated damages and otherpunitive actions. Going back to the National Federationof Independent Business survey, thereis plenty to be cautious about expecta-tions for 2010. That’s why knowing moreabout the state of play in the economyand government is so important. I’vesaid in past columns that reliable, up-to-date information is a key to success inbusiness. The upcoming IWPA conven-tion will deliver information in abun-dance – robust industry expertise, bestpractices compliance tips and the com-panionship of industry peers. Don’t missout. Follow convention updates atwww.iwpawood.org.

Continued on page 13

WHO’S WHO - BowenContinued from page 11

AIR -Continued from page 4

relationships, but a recent visit by theauthor to the main manufacturing plantin Malaysia confirmed the standards ofmaterial and quality control as well asworking practices.Only American hardwood is used nowthat Teak, which was Air’s leadingspecies, has been discontinued. Thefirm believes that U.S. material providesa more reliable source, compared toBurmese Teak, which is ever more diffi-cult to get and subject to huge price fluc-tuations. The company also feels thatplantation Teak, from countries likeIndonesia, is not up to the standards itrequires in its well-established premiumPlank Living range, which now only usesAmerican White Oak and Black Walnut. Also, “knowing that American hardwoodis from sustainable sources was key,”Soh said. This can clearly be taken as ademonstration of where American hard-woods lie in the top end of Asian design-er furniture markets. It is significant thatunder hardwood information in the cur-rent catalog, it states that only timberchosen from sustainable forests in theUnited States is used, and later contin-ues: “All hardwood sourced is from amember of the American HardwoodExport Council. American hardwoodspecies comprise one of the most sus-tainably managed forest resources inthe world, producing consistent gradesand providing constant and reliable ship-ments.”To learn more, go online and visitthe association’s website atwww.ahec.org.Air Division is wholly owned bySingapore partners. The company isalso proud that to date its designs are100 percent Sinaporean too, which mayexplain the level of official support itgets. With only a small team of peopleemployed, Air is a tight ship too, andthus able to weather the global financialstorm of recent months when demandtook a dramatic downturn.Incorporated 10 years ago, it describesitself as a highly developed, multi-faceted furniture design and retail spe-cialist. However, the future must includeinternational recognition, given there is adomestic market potential of only 5 mil-lion people. The management is activelyseeking overseas partnerships with like-minded companies or partners in designand is also considering offering franchis-es for which there are details on its web-site. Already Air Division is trading in

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February/March 2010 Page 13

aspect for both the customer and suppli-er.”Osterloh went on to explain that mem-bers of Elof Hansson AB are traveling atmost times and readily available for trav-el. “We travel to both our customers andsuppliers. There is always one or agroup of us traveling to make sure weare present at all times,” he explained.“If a customer requests a visit, we arereadily available without budgetrestraints to be there. During this eco-nomic crisis we are financially able to beprogressive, proactive and aggressive.”Elof Hansson targets the export marketwith domestic hardwoods and is com-mitted to the North American marketwith imported hardwoods. Softwoodsand panel products are also an exportproduct for the organization. In the United States, the company hassales operations in Suwanee andMobile, Ala., with 12 total employees. Inorder to reduce communication barriers,six different languages, includingSpanish, English, Swedish, Russian,Portuguese and Chinese are all spokenat the Mobile, Ala., office. A satelliteoffice operated by Romel Bezerra islocated in Pembroke Pines, Fla. InBrazil, two of the six employees are lum-ber inspectors who travel to the variousmills and inspect every shipment. Approximately seven employees oper-ate Elof Hansson’s timber office inSweden. This location specializes inScandinavian softwoods such asSpruce and Pine for the European mar- Continued on page 15

HANSSON -Continued from page 5

ket. The company also procures for mar-kets in Africa and Brazil and from Brazilinto the U.S. North Africa, Asia, Europeand the Middle East are highly special-ized markets for Elof Hansson.The early beginnings of this sizeableorganization began in Hamburg,Germany. Elof Hansson, founder of ElofHansson AB, began in the forest prod-ucts industry in 1897.As sales expanded, Hansson openedhis first branch office in London by 1904. Eventually he met a Japanese man inHamburg, Mr. Nagasaki, who was anagent for Mitsui & Co. in Japan.Nagasaki needed a pulp supplier andappointed Hansson for the job. Fromthat point on, Hansson established his“niche”—pulp for transatlantic export.By the time World War I began, hemoved his operations from Hamburg toGothenburg, Sweden, in order to contin-ue transatlantic trade.The success of this company may beattributed in part to the company’s corevalues—Trust, Commitment andProfessionalism. “These core valuesshall permeate all of the company’sactivities, whether it be in our role in var-ious managerial or staff capacities or inour relations with the world around us—customers, suppliers and other businesspartners,” is found in Elof Hansson’smission statement. “Always speak andwrite the truth! Truth creates confidence,success. Untruth creates distrust,decline and ruin,” Elof Hansson’s

strength allows us the opportunity tooffer more than the product, we offerpeace of mind,” the firm’s Florida-basedtrader, Romel Bezerra said. “Suppliersare not required to tie up their own cap-ital in receivables, which minimizescredit risk and offers buyers better pay-ment options.”With forestry industry specialistsonboard, Elof Hansson has the ability toguide every buyer to the best product forhis/her application. “When a customercalls with a request down to the time ofday he needs it, there is an array ofopportunities we can offer,” traderRobert Maynard explained. Osterlohadded, “If the potential customer is not100 percent sure of what they need, weask the questions to help clarify theirneeds and can often offer a betteroption.“A number of buyers don’t understandthe difference in timbers from region toregion. Each one has its own specificcharacteristics that are liked as well asits own characteristics that are disliked.For example, an Oak tree from Michiganis different from the Oak tree inAlabama. That’s where our knowledgeand expertise is very valuable.“From a logistics standpoint, we knowthat control over shipping plays an intri-cate role in the success of providingexcellent service,” Osterloh continued.“With the multitude of products and serv-ices we offer, we are able to arrangeproduct and shipment combinationsaround the globe, benefiting every

Lumber Sales - Paul DowPhone 001-330-893-3121Fax 001-330-893-3031

Quincy ChenTaipei Office

Email [email protected] 886-2-89145492

Lei ZhaoShanghai Office

Email [email protected] 86-13917158857

Log Sales - Eugene A.Walters, CFFax 001-304-464-4988

Phone [email protected]@yoderlumber.com

Scandinavia, Germany andLuxembourg.The international appeal of the signa-ture Plank Living Collection is its warmthand assurance enveloped in fine woodwith craftmanship at its heart. The stampof quirkiness and individuality is whatthe company believes sets its Funktionrange apart from others. The company’smain export brand, Plank has been fea-tured in many leading internationaldesign titles such as Monocle andWallpaper.Awards and accolades have also beenimportant for the company’s develop-ment. From 2004 to 2006, it was therecipient of nine awards, including:• 2004 Design Excellence Award for AirDivision catalog;• 2005 ISO 9000: 2008 Award for quali-ty management systems;• 2006 Gold Award for Best FurnitureRetailer;• 2009 ISO 14001 Award for environ-mental management systems;• 2009 Winner, Asian FurnitureLeadership Award.In 2009 Air Division launched its fourthedition of Broadcast catalog, a show-case of its bestsellers and new offeringsof tables, chairs, storage and audio unitsfrom all four homegrown brands. Thereis no easy way to combine minimalismwith comfort, but the struggle to keepmaterial costs down is worth the comfortof making some contribution to the envi-ronment. This is at the center of thecompany’s business and design philoso-phy and jumps out from the pages ofBroadcast 2009.To quote the publication, “At AirDivision, we believe that the integrity ofdesign lies in improving the usefulnessand aesthetic forms of objects, whileserving the needs of people. Our stead-fast design approach is based on sin-cerely applying the following fundamen-tals of good design; creative concepts,honest use of materials, efficient andintelligent use of advanced productiontechniques and exacting proportionsand details.”For more information about thiscompany, go online towww.airdivision.com.

one face flat/anti-slip with pre-groovedsides and Lumber Lock™ or eased foursides are available. Installation is madesimple with Ipanema Decking’s clip sys-tem, drilling is not required. All IpanemaDecking is factory finished for a greatlook and extra-protection. A complete listof Ipanema Decking’s products andservices is available atwww.Ipanemadecking.com.In 2004 Elof Hansson acquired TimberValley Forest Products in Suwanee,Georgia, and Timber Valley’s annualsales revenue grew from $18 million tomore than $100 million in four years.“We combined the knowledge that wehad in exporting softwoods from theU.S. to international countries with ElofHansson’s expertise, offices and con-tacts around the world. Last year oursales were at $103 million,” said JoelOsterloh, Vice President of ElofHansson’s timber division and formerowner of Timber Valley Forest Productstimber division.With agents in more than 100 countries,approximately 550 employees and anannual business volume in excess of $1billion, holdings of the Elof HanssonFoundation, which actually manages thecompany, includes six sales divisions,and a central administration for financ-ing, risk management and shipping.Offering extended credit periods forcustomers with large volume sales andlow margins is all part of Elof Hansson’srisk management program. All risksincluding credit, currency and interestrisks; logistical and political risks arecarried out by experts whose principaltask is to safeguard the profitability forall parties involved. “Our financial

AIR -Continued from page 12

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Page 14 Import/Export Wood Purchasing News

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Page 15February/March 2010

founder wrote in a memo dating back to1904.Today, Elof Hansson is managed by theElof Hansson Foundation. Bo Hanssonand Thomas Petterson serve on theboard of directors. Elof Hansson AB has been recognizedfor their environmental efforts and ischain-of-custody certified by both theForest Stewardship Council (FSC)chain-of-custody and Programme for theEndorsement of Forest CertificationCouncil (PEFC). Elof Hansson AB is amember of the International WoodProducts Association (IWPA), NationalHardwood Lumber Association (NHLA),and the North American WholesaleLumber Association (NAWLA). For more information aboutElof Hansson AB visitwww.ElofHansson.com.

Furniture and household goods held upwell, in spite of the economic downturnin the U.S.According to IHB Fordaq Network,

Mexico’s central bank has decided tohold interest rates at 4.5 percent, a ratethat has been in force for severalmonths. Throughout 2009 interest rateswere cut in an attempt to spark growth.Inflation rates were recently reported atapproximately 4 percent, 1 percent morethan the goal set by the Central Bank.In related news the World Bank recent-

ly approved a $1.5 billion loan to Mexicoto support the Mexican government’seconomic stimulus measures. Most ofthe effort is expected by analysts to beput into stimulating employment and intofinancial regulatory reform.

CC hh ii nn aaAddressing climate changes in China,

Mr. Zhang Jianlong, Vice Administratorof the SFA told correspondents recentlythat China would increase its forest areaby 40 million hectares by 2020.Implementation of the “Forestry ActionPlan to Cope with Climate Change,” isexpected to achieve this goal.Recent statistics show that China has

established a total of 6.55 millionhectares of fast growing and high yield-ing plantations since 2002. Information provided by the forestry

department of Heilonjiang Province,states a plan for the conservation andeconomic transition of DA Xinganlingand Xiao Xinganling Mountains, thelargest state owned forest district inChina, has been submitted by ForestryDepartment of Heilongjiang Province.In other news from China, total exports

for 2009 were reported at $1.2 trillion,forging slightly ahead of Germany,which reported exports of $1.17 trillion.According to China’s customs agency,

the new status is mostly symbolic buthighlights its growing presence as anindustrial power, major buyer of oil, ironand other commodities.China’s $586 billion government stimu-

lus has maintained its economy andconsumption growth. The Chinese gov-ernment is forecasting a full-year expan-

sion of 8.3 percent.

BB oo ll ii vv ii aaApproximately 1300 wood processing

industries are located in Bolivia, of whichan estimated 73 percent are small enter-prises. Private companies are currentlyadopting the Forest StewardshipCouncil (FSC) system in order to gainbetter access to international marketsthrough certification.

II nn dd ii aaConsumption of wood in India is grow-

ing fast. The country, which has 250commercial timbers, including tropicalhardwoods such as Teak, Rosewood,Padouk, Red Sanders and Sandalwood,has implemented a strict conservationpolicy, which limits harvesting. Being anet importer of wood and wood basedpanel products, Indian industrialdemand for wood jumped from 58 mil-lion cubic meters in 2000 to 85 millioncubic meters in 2008 and is expected toreach 150 million cubic meters by 2018.Mostly imported from Malaysia,

Myanmar, Indonesia, Nigeria, IvoryCoast, Ghana, Togo and Gabon, amongothers, Indian manufacturers import tim-ber in log form to feed the domesticindustries. Prices for Teak logs at Government

Forest depots have continued to be firmas domestic demand exceeds the quan-tity available. Adina cordifolia has beenreceiving Rs.300 to 350 per hoppus footand Terminalia tomentosa has been sell-ing for Rs.350 for A grade, Rs.200 toRs.250 for B grade and Rs.200 toRs.150 for C grade logs. According to trade analysts, import

prices are steady as flow of arrivals isgood. The availability of timbers fromMyanmar seems to be getting less andless but the expectation is for improvedqualities of overseas plantations ofTeak. Recently improved quality of plan-tation Teak from Ghana, Benin, Sudanand Tanzania is helping to meet theshortages from Myanmar and suppliesfrom Central and Latin American coun-

GREENBUILD -Continued from page 8

credential, site tours of Phoenix andworld-renowned speakers. A Greenbuilding Job Fair was new onthe agenda this year, as were theGreenbuild Salons, which USGBCdescribed as its version of ‘Inside theActors’ Studio.’ These consisted ofthree-hour afternoon conversationsfocusing on art, technology and sustain-ability.For more information about upcomingGreenbuild Expos, go online towww.greenbuildexpo.org.

500,000 B.F. Dry Kiln Capacity 2 Million B.F. Dry Storage

Container Loading Mixed TL’s

S2S, Ripped to Width, Cut-Length & Finger-Joint

Lumber Measured & Inspected after Kiln Drying

HANSSON -Continued from page 13

BUSINESS TRENDS(ABROAD)

Continued on page 16

JJ aa pp aa nnOfficials in Japan forecast a recovery is

in order due to a slight improvement inthe U.S. housing market and the impactof stimulus measures in China. According to the Japan Lumber

Importers Association (JLIA), there isstill concern over recession due tostrengthening yen, which is impactingexports and unemployment over 5 per-cent. Reduced earning revenues alongwith imports are expected at about halfof the rate of 2006.Imports of North American lumber have

fared relatively well declining 25.9 per-cent as reported by JLIA. Douglas Firlumber from the U.S. has increased thisyear and is expected to come in at280,000 cubic meters. SPF lumberexports from Canada to China sur-passed Japan and are expected to con-tinue to in years to come.Lumber imports from Europe are up

over 9 percent, however down 17 per-cent compared to two years ago.Russia’s 25 percent export tax is likely tobe maintained at current levels until2011 and will not result in increasedimports for Russian logs due to fear thatthe 80 percent tariff will be implementedover time.Japanese government policy for carbon

sequestration has resulted in increasingsupplies and plummeting lumber prices.According to government data, 24.5 per-cent of domestic lumber in Japan is self-sufficient. The Democratic Party ofJapan (DPJ) is targeting a 50 percentself-sufficiency rate.

MM ee xx ii cc ooThe U.S. is considered Mexico’s main

trading partner, as some 85 percent ofthe country’s exports are dependant onmarkets in North America. Due to thisdependence Mexico’s external trade hassuffered this year because of the weakdemand from its northern neighbor.

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Page 16 Import/Export Wood Purchasing News

Baillie has long been recognized as the trusted name in

premium North American hardwood lumber. With its

entry into the exotics market, Baillie takes that same

capability and dedication to quality, value and customer

service and applies it to an exciting new product line.

Baillie now offers the most desirable species from South

America and Africa in a wide range of thicknesses and

sorts, including flat-sawn, quarter-sawn, pattern grade

and figure. And as always, Baillie prides itself on

meeting any customer’s most demanding challenges

with custom sorts.

T H E F I N A L P I E C E T O T H E H A R D W O O D P U Z Z L E

BAILLIE LUMBER CO.Exot ic Sales Direct Line 252.523.0021

4002 Legion Drive / Hamburg, NY 14075 USAphone 716.649.2850 / 800.950.2850 / fax 716.649.2811

www.bai l l ie.com / e-mail : info@bail l ie.com

. . .s ingle source solut ions

Jesper BachExotic HardwoodsManager

EXOTICS

BUSINESS TRENDS(ABROAD)

tries are also expected to get better asthe plantations are getting older.

GG uu yy aa nn aaThe volume of logs exported from

Guyana has declined according torecent reports. However, there was anincrease in production and trade of fin-ished and value-added products.Greenheart log export prices areunchanged and prices for Purpleheartwere reported at a positive rise.While Purpleheart sawn wood achieved

good average prices, Mora sawn woodprices were reported as dropping.Merchantable grade Mora is selling welland producers of dressed Greenheartare currently enjoying high prices alongwith producers of dressed Purpleheart,which is selling at US$900/1126.Both BBCC and utility grades of

Baromalli plywood were exported butBB/CC grade experienced a drop inprice compared to recent levels.Roundwood exports contributed to for-eign exchange earnings and achievedgood average prices for the period. Alsocontributing to the export earnings, wereSplitwood and value-added productsincluding doors, indoor furniture, mould-ings, builders joinery, windows, woodenutensils and ornament exports.Guyana is taking steps to increase

oversight of mining operations and theimpact on forests by increasing the num-ber of Mines officers stationed acrossthe country. As the Norway forestry sup-port begins, the mining community isbeing challenged to be more transparentand identify procedures and practices tominimize irreversible damage to the for-est.“The recent agreement with Norway,

through which Guyana receives pay-ments to avoid deforestation and degra-dation, now puts a significant monetaryand moral cost to any unnecessary

degradation of forest areas for an pur-pose,” a statement from the Office of thePrime Minister said.Contributing to Guyana’s export rev-

enue earnings, the mining sector pro-vides work for thousands and nowneeds to review its operational methods.The Guyana Geology and MinesCommission and the Guyana ForestryCommission are drawing plans toincrease the coordination between thetwo commissions.

CC aa nn aa dd aaIn a recent news brief, Wood

Resources International LLC reportedthat wood costs have remainedunchanged for Canadian pulp mills,despite tighter wood chip supply.Canadian pulp mills have shifted wood

fiber supply from lower-cost residualchips of local sawmills to higher-costwood chips manufactured from round-wood. Low operating rates for manysawmills has decreased the availabilityof relatively inexpensive residual chips,which has forced many pulp mills toeither reduce production or to furnishtheir mills with high-cost fiber.According to the North American Wood

Fiber Review, Canada’s lumber produc-tion has been reported at substantiallylower levels for 2009 than previousyears. Production levels in both westernand eastern Canada are probably closeto the bottom, and with the U.S. lumbermarket predicted to improve in the latterhalf of 2010, Canadian sawmills are like-ly to be running at higher operating ratesa year from now.Over the last three years lumber pro-

duction has declined by approximately50 percent. However, pulp productionhas only fallen by 25 percent and manypulp mills have had to rely on moreexpensive chips manufactured fromroundwood.In Canadian dollars, residual chip

prices have stayed relatively unchangedfor the past three quarters for allprovinces of Canada reports the NorthAmerican Wood Fiber Review. ForBritish Columbia and Alberta, softwood

prices are often linked to the marketpulp price (NBSK), fiber prices reachedbottom and are likely to move up. TheEastern provinces report wood chipshave remained flat and roundwoodprices have slightly declined.

GG ee rr mm aa nn yyPresident of the German association of

the sawmill and wood industry (BSHD),Dr. Josef Rettenmeir expects higherprices for lumber and by-products overthe next few months. “The sawmilling companies now

reached their pain barrier. Shortage ofresources, climbing prices for logs andincreasing energy costs force theGerman sawmill industry to pass thoseheavy charges down to their cus-tomers,” Rettenmeier said.Rettenmeier also warned sawmill com-

panies about rebooting their capacitieswith the first indication of economicalrecovery. “Companies have to hold theircutting in line with the market. Under thecurrent economical conditions everyexpansion of capacities creates bigproblems for the lumber prices.”

Continued on page 17

Continued from page 15

BUSINESS TRENDS(CANADA)

OO NN TT AA RR II OO

Contacts mentioned they experienceda market lull during the Holiday season,with exports to Europe slowed downduring this traditional winter break.Domestic markets settled their operatingschedules for the last two weeks ofDecember 2009. Slower export ship-ments did not affect the flow of orders orplans for business following the holidaybreak, however. The downtime wasreported as no different than past years.Tight supplies are driving factors formost species and grades key to theregions. Sawmill output still is not at lev-

els previously seen for the wintermonths, but remained at a steady butlow rate. Kiln-dried inventories werereported as falling, with noted upwardmovement for selective green and kilndried stock prices.The battle over forestry tenure is a long

standing issue through NorthernOntario, and it became a heated one in2009 as government, municipalities andprivate industry struggled to create realchange. The issue came to a head asthe province began to move on alteringhow those rights are allocated, with pub-lic consultation sessions havingwrapped in the fall.Currently, the province provides cutting

rights through sustainable forest licens-es (SFL), which are granted for 20 yearsand are reviewed after every five. Whenmills close, however, the wood allotmentremains in the hands of the company.Governmental response has been forinterested parties to strike deals with theSFL holder, an approach which hasoften left many unable to secure a woodallotment.Over the last six years, Ontario has

seen 35 permanent mill closures with9,000 lost jobs, as well as 27 indefinitemill closures threatening 5,500 jobs.There were 14,500 direct jobs lost, and43,500 indirect jobs being affected bythe downturn. These numbers are trulystaggering, and a figure that will contin-ue to grow, particularly as the AlgonquinPark decision will put another 195 out ofwork.Some feel sustainability is largely only

possible through proper planning andtenure policies that encourage growth.This includes local access to resourcesas well as locally produced power, low-cost infrastructure and facilities that cancheaply be converted to new uses. Thetenure policy, it is felt, will ensure the col-lapse of communities, and what is need-ed are leaders with an understanding ofeconomic and social development.Michael Gravelle, Minister of Northern

Development, Mines and Forestry, says