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Page 24 The Softwood Forest Products Buyer WWPA - Continued from page 23 weakening of the U.S. dollar. Binam added that, “It’s not a bright picture right now in the mortgage lending business, and in the lumber industry, we are about as low as we’re going to go in regard to lumber prices.” Also addressing attendees at the WWPA meeting was Craig Larsen of the Softwood Export Council. Larsen discussed the market status in various countries and how they impact the U.S. situation. For example, Larsen said that the market in Mexico is currently very strong, and dubbed it “our largest market by volume.” The European market continues to grow, said Larsen, especially in regard to high quality specialty products while the market in China has declined slightly this year. However, Ponderosa Pine and Spruce sales have proven to be the exception in China as their sales have increased. Larsen added that Japan and Dubai are presenting strong purchases, and he labeled India as an “emerging market” that holds promise. The Western Wood Products Association is a trade association representing Softwood lumber manufacturers in the 12 Western states, from the Canadian border south to Mexico and from the West Coast to the Black Hills of South Dakota. The Association also provides services in Alaska. WWPA offices are located in Portland, Ore. For more information, visit the association’s website at wwpa.org. • LAT - Continued from page 1 town San Antonio. The Steves’ Homestead holds significant importance to the LAT since Ed Steves Sr. of Ed Steves & Sons in San Antonio was one of five men who met and formed the Texas-based association. At the Steves’ Homestead, LAT members and guests were feted to a dinner garden party, and outgoing leader Kyle Williams, of Bison Building Materials in Conroe, was saluted. Incoming association president Bart Graves, of Fort Worth, was introduced at this gala. Other activities during the three-day, Mardi Gras-themed LAT convention were primarily held at the Henry B. Gonazales Convention Center in San Antonio. Members and guests were treated to a humorous performance by native Texan Morris Eickenhorst, who is recognized throughout the state at various functions as a storyteller, poet and columnist. NAWLA - Continued from page 1 membership representing Asia and Europe, for example. At our various meetings, it’s a great opportunity for our members to be involved and share valuable information.” The Meritage Resort at Napa served as the host site for the recent Napa, Calif., NAWLA Regional meeting and was sponsored in part by ForesTel LLC, located in Portland, Ore. Steve Fischer, of North Pacific Group Inc., of Napa, presided as meeting chairman. More than 30 association members and their guests enjoyed an informal networking hour, followed by cocktails and dinner prior to the official opening address at the meeting, which was delivered by NAWLA Chairman Tom Rice and NAWLA President and Chief Executive Officer Nick Kent. Keynote speaker at the Napa meeting was Craig Adair, director of market research from APA-The Engineered Wood Assoc. His topic for the evening was “Market Outlook For Structural Panels and Engineered Wood Products.” NAWLA’s Vancouver, B.C., regional meeting attracted nearly 300 registrants at the Westin Bayshore Hotel. Norman G. Jensen Inc., headquartered in Minneapolis, Minn., sponsored the opening Lumberman’s Luncheon as well as the meeting’s welcoming segment, which featured several guest speakers. Among the speakers was Don Haid, manager of raw materials analysis for Weyerhaeuser Hardwoods & Industrial Products, headquartered in Federal Way, Wash. Haid covered several topics related to the economy and emphasized that regional dynamics impact overall economic soundness throughout the nation. Additionally, he cited pressure from higher wages as fuel for increased inflation reducing the likelihood of relief from the Fed on interest rates. Haid added that he foresees continual price depreciation for homes in the U.S. through 2008, and stated he believes the housing market has not yet bottomed out in regard to the correction cycle that has been ongoing since mid- 2006, but will hit bottom by late 2007. Haid was followed at the podium by Rod DeBoice, Provincial Bark Beetle coordinator, Ministry of Forests and Range, Province of British Columbia. Michael Ainsworth, executive vice president of Ainsworth Lumber Co., located in Vancouver, B.C., also spoke to the group. NAWLA President Kent and Vice Chair Fitzsimmons kicked off the meeting with opening remarks for this occasion. Attendees were later treated to cocktails and social hour courtesy of Euler Hermes Group, whose offices are located worldwide. Scotia Bank sponsored the after-dinner musical entertainment, which was performed by Kenny Shaw. NAWLA also hosted a regional meeting in Portland, Ore., that was co-sponsored by ForesTel LLC and Hampton Lumber Sales, which is the sales division of Hampton Affiliates, headquartered in Portland. John Jayne, of Disdero Lumber Co., of Clackamas, Ore., served as chairman of the Portland meeting and provided opening remarks to the members, who totaled approximately 60. Following cocktails and dinner, NAWLA President and CEO Kent were joined at the podium by NAWLA’s 1st Vice Chairman Gregg Riley in welcoming the attendees. An educational program panel then commenced, which was led by Michael Covey, chairman of Potlatch Corp., headquartered in Spokane, Wash. Ross Mickey, the western regional manager of the American Forest Resource Council and Jon Anderson, the publisher of Random Lengths assisted in leading discussion of this panel. In Bessemer, Ala., NAWLA’s regional meeting was well attended at the Bright Star Restaurant. Meeting chairmen for this gathering were Mark Junkins, of McShan Lumber Co. in McShan, Ala., and Pat Ogletree of Steel City Lumber Co. in Birmingham, Ala. NAWLA’s Rise and Kent opened this meeting and later turned the microphone over to Dr. James E. Fickle, professor of History at the University of Memphis and visiting professor of Forest and Environmental History at Yale University, which is also this nation’s oldest forestry school. Fickle’s topic was “Timber: A Pictorial History of Southern Lumbering.” • APA - Continued from page 2 Institute of the Republic of China (Taiwan) have signed a memorandum of understanding for establishment of a collaborative relationship for the exchange of information related to wood product research, building codes, material and test standards and wood-frame construction techniques. The agreement, signed recently in Taiwan by Dr. Ming-Chin Ho, director general of the Ministry’s Architecture & Building Research Institute (ABRI), and APA Vice President Tom Williamson, includes provisions for the exchange of research results and technical information, the organization of seminars and conferences, promotion of joint research projects and other mutually beneficial activities. ABRI, the official authority on building Continued on page 25
May/June 2007 Page 25 APA - Continued from page 24 research in Taiwan, promotes research of construction engineering technology, fire safety, disaster mitigation, and green building methods. APA Applauds ITC Review of Chinese Imports APA President Dennis Hardman applauded a request for an International Trade Commission (ITC) review of Chinese hardwood plywood imports, saying he believed it would demonstrate that those products often are improperly and in many cases even fraudulently labeled. The ITC review was requested recently by Senate Finance Committee Chairman Max Baucus of Montana. The Office of the United States Trade Representative (USTR) also has filed a World Trade Organization (WTO) hardwood plywood subsidies case against China. APA has provided import statistics and other relevant information to the office of Oregon’s U.S. Senator Ron Wyden, who has helped champion the campaign against illegally subsidized plywood imports. Hardman said that although the requested ITC review targets only Chinese hardwood plywood and would cover a variety of concerns, such as dumping, illegal subsidies, tariff misclassification, and illegal logging, he hopes it would help draw greater attention to the significant problem of Chinese industry counterfeit trademarks, absence of trademarks, inaccurate grade claims and substandard product performance. • British Columbia Business Trends Continued from page 2 their product domestically (within B.C. and the rest of Canada) and almost the same amount into the U.S. About 5% of production goes into each Japan and Europe. Weather & Water Affecting the Industry What affects the primaries has significant affect on the secondary manufacturers. Adding to what everyone knows about the log and subsequent wood shortages, a two-month towing strike has caused more problems up and down the mighty Fraser River, affecting large and small operators alike. We were unable to reach anyone at the major towing companies (I suspect all management are out on the water moving booms), but Ken Voight, Operations Manager at S & R Sawmills in Port Kells commented that “we had a bad winter for logging, what with the weather and a few other factors, and now the few logs that are out there are hard to get at due to the towing strike”. S & R has five custom cutting mills and estimate that they are getting half of their logs – and that is thanks to management working the tugs for the four major services in the area, along with a few independents. If the strike doesn’t end soon though, there will be another major delay. By mid May, it is predicted by another mill upriver that the water will be running too fast and high to move anything. This is a pretty normal seasonal event, but is certainly going to compound the problem of the current shortage of logs. Gary Ley, a spokesman for Western Forest Products said that they were not unduly affected by the strike – that it was more of an inconvenience, than anything else. They were able to shift the schedule around and use additional suppliers to off-set any potential shortages of moving logs into the yards. However, in a recent article in the Vancouver Sun by correspondent Gordon Hamilton, Western’s president Reynold Hert did indicate that both logging and lumber production were off significantly because of the severe weather. Over the winter, roads on the company’s coastal timberlands were washed out, slopes became too saturated with water to be logged, and towboats were sent scurrying into sheltered coves for days at a time, unable to deliver what logs they had to company sawmills. The extreme weather really hit home in Port Alberni, where, at one point, Western’s Somass sawmill was forced to shut down when a creek burst its banks and flowed right through the mill. Other mills closed when they could not get enough logs. The storms during November and December alone knocked Western’s log production down 500,000 cubic metres — 25 per cent — to 1.6 million cubic metres during the fourth quarter. Western’s Chief Financial Officer, Paul Ireland said the log shortage resulted in a 17 percent drop in lumber production during the fourth quarter. Instead of 326 million board feet of lumber, the company produced 271 million, a decline of 55 million board feet. “Unit costs were higher than would otherwise be the case as a result,” Ireland said. “Both our timberlands and our manufacturing operations were negatively impacted by the unusual weather we encountered on the West Coast of British Columbia.” Western did not release financial figures on the weather impact but were able to recoup some of the costs from the storms by realizing higher sales prices for its lumber products. Average prices increased from $739 to $782 per thousand board feet from the third quarter to the fourth quarter. Hert said the weather events can be coast-wide or localized, pointing out that the Island’s west coast around Port Alberni was hit particularly hard. Even on days when the weather is calm at the company’s Duncan head office, tugs towing loads of logs only a few kilometres away in nearby Stuart Channel have been forced to seek shelter from strong winds. WASHINGTON - Continued from page 2 • ways to make up funding shortfalls for rural schools and communities wracked by declining timber sales and shrinking property tax bases. During the Senate’s recent 51-47 vote for an emergency war spending package that sets a 2008 withdrawal date from Iraq, the money for rural districts, nearly $5 billion across 39 states, was added, which binds the two funding packages. President Bush has threatened to veto the bill and has labeled the legislation as the Democrats’ “arbitrary” troop withdrawal timeline, as well as for other spending provisions he derided as “pork.” However, with the help of Oregon Democrat Ron Wyden, a provision was backed that added $4.7 billion into a program that helps timber-dependent counties make up the losses from declining lumber sales on federal lands, primarily located in the Pacific Northwest. Also included in the Senate bill are $20 billion in domestic initiatives for flood relief along the Gulf Coast, compensation for crop losses, drought assistance and low-income heating subsidies. The Senate bill would provide states like Alaska upwards of $10 million a year over the next five years under a rural schools plan and its companion program, called Payment in Lieu of Taxes. One of the areas most affected is in Alaska’s heavily timbered Southeast Panhandle. Craig called the law establishing the rural programs “a lifeline for our timberdependent communities. Letting the law die is not an option.” Bush’s Budget Reductions Impact Forest Service Budget reductions proposed by the Bush Administration to eliminate the federal deficit by 2012 include a significant Continued on page 26
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Page 3 and 4: May/June 2007 Page 3 Table of Conte
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