April 2009

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Lowe’s addresses expansion plans at Raymond James

Although Lowe’s is scaling back its new store openings in the United States this year, the home improvement retailer intends to push forward into Canada and Mexico, according to one of the company’s top executives. Larry Stone, Lowe’s president and chief operating officer, shared some new details on the retailer’s international expansion plans.

“We still think there are opportunities for 100-plus stores in Canada,” Stone told investors on March 11. Although he said that “it might be five or six years before we get there,” Stone added that Lowe’s is making plans to open stores in the Calgary area in fiscal 2010. Lowe’s Canada now operates 11 stores and has three more under construction, all located in the province of Ontario.

Lowe’s long-awaited debut in Mexico, first announced in January 2007, will take place during Lowe’s 2009 fiscal year, according to Stone. Two stores are slated to open in Monterey in January 2010.

On U.S. soil, the Mooresville, N.C., retailer will open 60 to 70 new stores this fiscal year, compared to 115 in fiscal 2008.  

Stone told analysts and investors that Lowe’s is focusing on small- to mid-sized markets that can support one of the company’s newer formats: a 66,000- or 80,000-sq.-ft. store with a drive-thorough lumberyard and large garden center.

Source: Home Channel News

 

   
 

2009 SUSTAINABLE FORESTRY TOUR PROGRAM

The Temperate Forest Foundation invites YOU to join their teachers on an intensive hands-on experience to learn about forest stewardship and the forest products sector. Sustainable forestry has moved from a conceptual phase to implementation of best management practices on millions of acres across North America. You will learn how sustainable forestry is practiced on various regional landscapes and visit a variety of wood manufacturing and educational facilities. The tours run from a Tuesday afternoon to a Friday morning, and include two days full of woods and mill visits, and educational stops (tree farms, state parks, learning centers, experimental forests, harvesting operations). Your experience will provide you with the insight and understanding of the social, ecological and economical values derived from modern forestry.

Click "HERE" to read about the program.


 
 

Canadian Lumber Producers Suffer stunning Blow in 2008

Vancouver, B.C. – The latest ranking of Canada’s “Top 20” lumber producers in 2008, published annually by International WOOD MARKETS Group, indicates that total softwood lumber production by the Top 20 Canadian companies decreased by 16.7% compared to 2007. Similarly, total Canadian softwood lumber output dropped by a staggering 20.5% to reach just 23.8 billion bf in 2008 as compared to 29.95 billion bf in 2007. Unprecedented North American housing and softwood lumber market conditions drove prices below cost levels to lows not seen since the 1991-92 recession (and even 1982 for some specific products).

With a total production drop of 3.4 billion bf, the Top 20 Canadian producers did not share these reductions equally between regions or companies. Eastern Canadian firms in the Top 20 had the largest average production decrease of close to 27%, while Western Canadian firms saw an average decline of about 12% in 2008 versus 2007. “Five Canadian lumber production companies (2 in Quebec, 1 in Ontario and 2 in B.C.) reduced their 2008 output by a staggering one-third or more, while only two companies (in Western Canada) managed to increase production by more than 5% (another five companies in B.C. and Quebec produced about the same volume in 2008 as in 2007)” said Russell Taylor, President of International Wood Markets Group.

The variation in annual company lumber production in 2008 compared to 2007 generally indicates manufacturing cost advantages or disadvantages between various companies due to lower log and/or production costs, vertical integration with pulp and paper mills, and in some cases, deeper pockets to withstand current market conditions. “Companies with less downtime are perceived to be lower cost producers”, commented G. Van Leeuwen, Vice President of International Wood Markets, “but every company still lost money on lumber in 2008.”

Despite all the production curtailments by the top 20 Canadian companies in 2008, they managed to increase their share of total Canadian softwood lumber production from 68.5% to 71.8%. In fact, the top six companies accounted for more than one-half (50.5%) of total Canadian production.

On a softwood lumber production basis, special accolades are due to West Fraser Timber, as they displaced Canfor Corp. as Canada’s largest softwood lumber producer – a position held by Canfor since 1999. In addition, West Fraser displaced Weyerhaeuser in its perennial position as North America’s largest softwood lumber producer. Both companies operated 27 sawmills in Canada and the U.S. during part or all of 2008.

The magnitude of the total softwood lumber production decline in Canada (-20.5%) in 2008 compared to 2007 reflects the unprecedented severity of the current North American housing downturn on all Canadian softwood lumber producers. “As tough as 2008 has been on the Canadian sawmill industry, projections for further decreases in North American housing starts of another 30-40% in 2009 is guaranteed to further reduce softwood lumber demand and lead to more sawmill curtailments and permanent shutdowns – and even some possible bankruptcies in 2009,” commented Mr. Taylor. “Softwood lumber demand is forecast to finally turn the corner and to increase slowly starting as early as third quarter, 2009 with a sustained rebound expected in 2010”.

The only question remaining is the severity of pain inflicted on individual companies and sawmills in Canada – large and small. The Top 20 company production statistics for 2008 indicate that the pain will not be felt equally and this is expected to lead to further changes in the Canadian lumber industry landscape.

The Top 20 Canadian Lumber Producers List is below.

CANADA TOP 20  SOFTWOOD LUMBER

PRODUCERS · 2008  (Million Bf)

Rank

 

No. of

 Prod'n

 

2007

2008

Company

Mills

2007

2008

% Change

2

1

West Fraser

12

3,530

3,390

-4%

1

2

Canfor

15

4,112

3,299

-20%

4

3

Tolko

10

1,950

2,100

8%

3

4

AbitibiBowater

23

2,375

1,522

-36%

5

5

Tembec

13

1,301

934

-28%

6

6

Weyerhaeuser (Canada) 2

3

1,204

800

-34%

8

7

Western Forest Products

7

789

768

-3%

7

8

Buchanan Lumber *

7

1,000

650

-35%

11

9

Domtar

11

583

614

5%

9

10

J.D. Irving

6

640

535

-16%

14

11

Millar Western

3

389

438

13%

12

12

Dunkley Lumber

2

500

330

-34%

13

13

Interfor

5

443

321

-28%

16

14

Barrette Entreprise

2

298

309

4%

17

15

Hampton Affiliates

2

276

217

-21%

19

16

Carrier Lumber

5

270

211

-22%

-

17

Aspen Planers*

1

200

200

0%

15

18

Kruger

3

310

167

-46%

-

19

Nechako Lumber

1

200

145

-28%

-

20

Gorman Brothers

1

160

147

-8%

 

 

Total Top 20

132

20,530

17,097

-16.7%

 

 

Total Canada

 

29,953

23,813

-20.5%

 

 

% of Canada

 

 

71.8%

 

Notes: Includes lumber produced only at primary sawmills and excludes U.S. production.

 

1 Arithmetic average; no adjustment for downtime

2 Production includes custom cut volumes

* 2008 Estimate

 

Source: WOOD MARKETS

 

 

 

 

 

 

 

 

 

 

 

 

 

The Canadian Top 20 softwood lumber producers is researched and published annually by the global consultants at International WOOD MARKETS Group and is also published in its WOOD Markets International Monthly Report (March Issue) – now in its thirteenth year.

International Wood Markets Group

 
 
 
Aubra Anthony honored with NAWLA Mulrooney Award

NAWLA will award the industry’s highest honor, the NAWLA Mulrooney Award, to Aubra H. Anthony, Jr., Anthony Forest Products Company, on April 27, 2009 at NAWLA’s 117th Executive Conference. The Conference will be held at the Loews Lake Las Vegas Resort in Henderson, Nevada. Come Celebrate with Aubra! Click "HERE" to read Aubra's accomplishments.

NAWLA Members Honored for Continuous Membership

The following companies will be celebrating 25, 50, 75 or 100 years of continuous membership in NAWLA this year.  Companies are honored with an award presentation during the NAWLA Executive Conference to take place April 26-28, 2009 at the Loews Lake Las Vegas Resort in Nevada.

The commitment of these companies to NAWLA is phenomenal and their support of NAWLA meetings, events and programs is much appreciated. Congratulations to:

T.W. Hager Lumber Company 75 years
Warren Trask Company 75 years
Hampton Lumber Sales 50 years
Disdero Lumber Company, Inc. 50 years
Tumac Lumber Company, Inc. 50 years
Mid-America Cedar 25 years
Redwood Empire 25 years
Robbins Lumber, Inc. 25 years
Tolko Marketing & Sales Ltd. 25 years
 
Clobber Fear and Succeed Inside the Box in 2009

More than 500 registrants and 125 exhibitors have already committed to NAWLA in 2009.  Are you and your company among them?  If you missed the deadline for early registration for the NAWLA Traders Market®, don’t fear!  Registration will reopen in late May 2009.

The momentum for THE industry event of the year has gained more speed with a NAWLA favorite and a one-of-kind motivational entertainer.  The NAWLA Traders Market® Committee proudly announces two keynote presentations to help you reposition your business:

Thursday, November 5 – NAWLA General Session
You will not want to miss a NAWLA-favorite, Rick Grandinetti of Succeed Inside the Box.  If you participated in a recent NAWLA Regional Meeting or NAWLA Webinar, you’ll remember Rick’s high energy presentations which will evoke new passion and reform in your existing organization, especially during a down market.

Friday, November 6 – NAWLA Grand Opening Luncheon
Let’s face it.  Things are a little scary out there!  Through his juggling, ping pong ballet and unicycle antics, the “comedian with content” – Frank Miles – will help you and your industry colleagues Laugh at Fear.

The official NAWLA hotel is the Hyatt Regency Chicago. Book your guestrooms now online at www.nawlatradersmarket.com.  The rate is once again only $199/night plus tax (single and double occupancy).  Please carefully read the guestroom cancellation policy for 2009.

Mark your calendar for future NAWLA Traders Markets in Chicago, IL:
November 5-7, 2009 • November 4-6, 2010

 
 
 
  NAWLA Webinar – Free!

Title:                    FSC, SFI® or PEFC? Chain-of-Custody (CoC) for the Wood,
                             Printing and Paper Industries

Moderators:          Mark Evers, Business Development Manager, SGS
                             Mario Vieira, Chain of Custody Product Manager, SGS

Date:                    Tues., May 5, 2009

Time:                    11:00 am CT / Noon ET

 

Register Online Now!  Free NAWLA Webinar!

https://sgsevents.webex.com/sgsevents/onstage/g.php?d=669567270&t=a

Requirements:  Computer and Standard Phone Line

Back by popular demand, NAWLA has teamed up with SGS Systems & Services Certification and is pleased to announce this FREE Webinar exclusively for NAWLA members on Chain-of-Custody.

If you participated in past NAWLA Webinars, you won’t want to miss this follow-up Webinar that addresses Chain-of-Custody. Log on and learn about the following from SGS’s Mark Evers, Business Development Manager, and Mario Viera, CoC Product Manager.

The environment has become a big topic in the news today, and within the business community. Is a company eco-friendly? Do they have environmentally responsible policies in place? How can the origins of a product be verified? These types of questions have caused the corporate world to look for answers and ways to protect themselves from unnecessary anti-environmental exposure. A major area of concern is wood-based products.

In the printing, paper, and wood-products industries, many companies are looking for ways to improve their environmental profile. One way to do this is by examining the origins of the wood that is used in their finished products. The mechanism used in this industry is called “Chain-of-Custody Certification” (or CoC) through various sponsored programs like FSC (Forest Stewardship Council), SFI® (Sustainable Forestry Initiative), and PEFC (Programme for the Endorsement of Forest Certification).

Chain-of-Custody Certification verifies that products from certified forests are kept distinct from products from uncertified forests in the supply chain. This certification assures your buyers and customers that the certified goods they buy are genuine products of a well-managed forest.

The problem is, companies like yours are being told to get certified to one or more of these programs, but doesn’t know what it is about or how to go about achieving this certification. The rapid recent development of this market has lead to a great deal of confusion and misunderstanding.

SGS will outline the following topics:

  • What is Chain-of-Custody (CoC)
  • The History of FSC, SFI, and PEFC and their differences
  • How must a company prepare for an audit
  • How can Chain-of-Custody benefit a company
  • Differences between CoC and ISO 9000 Certification

 

 
The NAWLA Executive Conference – a meeting you cannot afford to miss!

The NAWLA Executive Conference will be held April 26 – 28, 2009 at the Loews Lake Las Vegas Resort in Henderson, Nevada.  Give yourself and your company an opportunity to learn how your peers are getting through these difficult times.  All it takes is one gem of an idea to make the meeting worthwhile.  Network with your peers, customers and suppliers and learn Strategies for Surviving the Recession from Dr. Adam J. Fein Strategies.

One highlight of the event will be the presentation of the NAWLA Mulrooney Award to Aubra H. Anthony, Jr. of Anthony Forest Products during the NAWLA General Session.
Adam J. Fein, Ph.D., founder and president, Pembroke Consulting, Inc. will present a thought-provoking program as he describes how the current economic conditions affect our business.  He will give his forecast for 2009 conditions, and lead discussions on successful strategies during these times.
Click here for brochure and registration materials.

 

 
NAWLA Regional Meeting and Cocktail Event – Vancouver, BC
April 30, 2009 • 3:30 p.m. PT • The Vancouver Club

Don’t miss the Lumbermen’s event of the year, the NAWLA Vancouver Regional Meeting.  This meeting has a new, more exciting format with lower pricing from last year.  It will be held at The Vancouver Club with cocktails and hors d’oeuvres served by the Benkratz Hostesses. Click here to register!

NAWLA Meeting:                  3:30 – 5:30 p.m. - UBC Room
Opening Remarks:               Buck Hutchison, NAWLA Chairman
                                             Mark Palmer, NAWLA Executive Director & Interim CEO
                                             Sponsored by Norman G. Jensen, Inc.

Speakers:                            Mike Wisnefski, VP of Bloch Lumber
                                             Ken Shields, CEO of Conifex
                                             Paul Quinn, RBC – Forest Products Analyst
                                             Sponsored by Euler Hermes Group

 

 
 
NAWLA Regional Meeting – Southern California
May 13, 2009 • 4:30 p.m. PT • The DoubleTree Hotel, Monrovia

Climate Change:  Will it increase the value and demand for lumber?
You have probably heard the catch phrases, but do you really know what you need to know about Climate Change, Carbon Footprints, and Carbon Sequestration?

Bob Prolman, President of Bellefield Advisors LLC, will shed some light on “forest carbon” and what it may mean for your business.  He will bring us up to speed on the emerging rules about carbon credits and why they may spark increased value and demand for lumber and other wood building products. 

If you are in the lumber and wood-related products business and are from southern California and the surrounding area, you will not want to miss this update on “forest carbon” and what it all means for you and your company.  It’s only $89/person!  Click here to register!

Join us for Climate Change:  Will it increase the value and demand for lumber?  and gain up-to-date knowledge on the following:

  1. How Greenhouse Gas programs view the ability of forests and forest products to remove and sequester atmospheric carbon dioxide, the leading Greenhouse Gas.
  2. Why carbon sequestration in wood products may be counted as a “good thing.”
  3. The emerging “carbon credits” market.
  4. How the carbon stored in lumber can be a valuable “credit.”
  5. Some of the competition for the use of climate friendly wood.
  6. How to capture value from wood’s “low carbon footprint.”

General Schedule – NAWLA Regional Meeting – Southern California

4:30 p.m.         Registration
5:00 p.m.         Cocktails and Hors d’oeuvres
6:00 p.m.         Dinner
7:00 p.m.         Educational Program
8:00 p.m.         Informal Networking
For further information regarding NAWLA Regional Meetings, please contact NAWLA at (800) 527-8258 or (847) 870-7470.

 
     
 
 


Welcome NAWLA’s newest member for the month of March:

Manufacturer
The Maine Wood Treaters, Inc.
Contact: John Bumby
P.O. Box 58
Mechanic Falls, ME  04260
Phone:  207-345-8411
Fax:  207-345-8841
Website:  www.mainewoodtreaters.com
Verifiers:
Brad Hodgins, Manufacturers Reserve Supply, Inc.
Jed Dawson, L.R. McCoy & Co., Inc.

Description: The Maine Wood Treaters, Inc. provides wood treating services to manufacturers and wholesalers.
     

 
 

 

J.J. Haggerty, Jr. (Joe) passed away

J.J. Haggerty, Jr. (Joe) passed away March 25, 2009 in Rocky Mount, NC.  He was the CEO of Williams Lumber Co. of NC, Inc.  Mr. Haggerty worked for seventy active years in the lumber industry.

   
 
 
 
5 Ways to Build Affordable, Energy Star-Rated Houses

South Carolina builder captures green buyers by spending just $1,000 more per house.

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It’s hard to ignore the juggernaut that the energy-efficient green construction has become in the home building industry, but it’s also difficult not to seem traumatized by the added cost that’s often associated with it.  “The green thing gets a lot of press ... but there aren’t a lot of folks that are fully equipped to build efficiently," observes Jeremy Graves, a builder in South Carolina that is determined to do just that.  His company, FirstCoast Homes, bucks the "green costs more" trend, managing to build Energy Star-rated homes that are 20% to 30% more efficient than standard homes at a cost of just $1,000 more per house than the builder's previous methods.

Based in Charleston, S.C., FirstCoast is a five-year-old company that builds primarily starter homes and first-time move-up product.  Prices are on the low end, starting at $129,000 and only reaching as high as $209,000, but this does not prevent the company from building for efficiency.  Sensing that affordable energy-efficient construction could be the future of home building, the company in 2007, announced a plan to build only Energy Star-qualified homes.

“One of the most important things we have to deal with today is our energy usage,” explains Graves, the company president.  “I decided that it was time to put our money where our mouth is and bring this to market.”  Reducing energy consumption in this country is an important issue, he says, because buildings account for almost 40% of the demand.

Click the following link for the rest of the article from Builder Online:

http://www.builderonline.com/green-building/five-ways-to-build-affordable-energy-star-rated-houses.aspx?cid=BLDR090407002

 

 
     
Market Trends
 
Revealed: The Top 10 Builders for 2008

Early returns from Builder 100 survey identify the top 10 builders in America last year.

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2008 was, to say the least, a tumultuous year for the nation’s top 10 builders.  Nearly all of them reported a steady stream of record-breaking losses, as the home building market went from bad to worse.  The Census Bureau reported that new home sales fell 38 percent last year.  The survey reveals that sales among the top 10 builders declined by a nearly identical amount.

The depressed sales environment forced the top 10 builders to play some serious defense.  They retreated from marginal markets; sold off land at discounts; continued personnel reductions; cut expenses; and struggled to regain profitability.

The top 10 worked overtime to generate cash flow and allay investor concerns that they could not meet debt obligations.  Unlike many builders in the second tier of the Builder 100, the top 10 all managed to stay in business thanks to long-term debt financing. Even companies reporting the biggest losses stockpiled large cash reserves that they hope to one day deploy to fuel growth.

The country’s biggest builders are now shadows of their former selves.  In 2005, the top 10 builders sold 289,354 homes. Last year, they closed only 132,994 homes, a 54 percent decline.  Many of these companies operate on fiscal year budgets that end in months other than December, making side-by-side sales comparisons difficult.  So each year, Builder magazine, as part of its Builder 100 survey, asks the nation’s biggest builders to total their calendar year closings.

Every one of the top 10 companies recorded a sales decline, though some fell more than others.  One builder, Meritage, made its first appearance on the top 10 list, despite a 51 percent decline in closings.  Another, Pulte, jumped two positions; its closings fell only 24 percent.  Read on and find out who the top 10 builders were in 2008.

Top 10 Builders for 2008

Rank

Company

2008 closings

% change

2007 closings

2007 ranking

10.

Meritage Homes Corp.

5,627

-51

7,687

12

9.

Beazer Homes USA

6,642

-42

11,366

8

8.

The Ryland Group

7,352 

-29

10,319

9

7.

NVR   

10,741

-21 

13,513

7

6.

Hovnanian Enterprises

11,281

-25

14,928

6

5.

KB Home

12, 438

-48

23,743

5

4.

Lennar Corp.

15,735

-53

33,283

2

3.

Centex Corp.

18,241

-41

30,684

3

2.

Pulte Homes

21,022

-24

27,540

4

1.

D.R. Horton 

23,915

-37

37,717

1

 

Total

132,994

-37

210,780

 

From: BUILDER 2009