5th National Wood ConventionNew Trends in the American Market for Wood Presentation by: Tom Wilson President International Specialties, Inc. IWPA Board of Directors, IWPA Lumber Committee Chairman, IWPA Past President
International Specialties, Inc. With more than 35 years of experience in the international wood and wood products trade, we use our vast experience and knowledge to match customer’s needs with producer’s capabilities. We design and implement supply programs to answer customers’ needs. Offering Lumber, Plywood, and Solid Wood Components. SW-COC-910 ©1996 FSC Responsible Forest Management SPECIALIZING IN DIRECT MILL CONTAINER & TRUCK LOAD QUANTITY SHIPMENTS Tel: (901) 853-4620 Fax: (901) 221-0057 E: firstname.lastname@example.org www.intlspecialties.com
About IWPA Profitability, Sustainability, Growth. The International Wood Products Association (IWPA) represents more than 200 companies and associations from 30 countries: • U.S. Importers • Offshore Suppliers • Shippers, Brokers, etc. • Sustaining Forests - Sustaining Trade
What do buyers want? • Legality is a “must”, so is Genus and species • Producer countries must offer assurances to the trade • Growing demand for “Green” • Value for their $$$
Snapshot of Buyers’ Environment in U.S. • Consumer Confidenceis low. • Housing Market!! • Companies haveshed jobs, can’t get credit. • Volatility and unpredictability
U.S. Housing • Single largest use of wood in the U.S.A. is the construction of new homes. • Construction of single-family homes increased in July for the fifth straight month, according to the National Association of Home Builders. New-home construction is still 70 percent below the peak of the housing market in 2006, but up 37 percent from winter 2008.
U.S. Remodeling • Remodeling –modest gains in 2nd quarter of 2009. • Remodeling Market Index grew from 34.5 to 38.1. (50 is target number)
C cubed • Credit Crunch Continues • Nearly 2/3rds of single-family home builders are reporting a severe lack of credit for housing production • 63 percent of builders surveyed report credit availability worsened in second quarter of 2009. • Waiting to see if government offers extended “bail-out”
U.S. Demand for Wood Products • Cabinets: Down 32% from previous year • Hardwood Plywood imports: Down 35% • Hardwood Lumber imports: Down 46%
New Realities… • Homes will be smaller. End of the “McMansions” • Less wood will be used • More competition from alternatives and wood composites “posing” as exotics
Opportunities for Growth • Accent wood for customized crown molding, stair rails and cabinets. • Exotics for decking is robust and growing • Exotic flooring is expected to gain lost ground
Other Market Drivers • Consumers are increasingly taking on home repair and maintenance projects on their own. A whole new audience to educate on tropical forestry products and uses. • Lowe's, Home Depot Inc. and other Big-Box DIY stores will become more important to imported wood sales as consumers seek economical “one stop shopping.”
How to grow the market? • Take advantage of the Lacey Act & Peru FTA to brand Peru wood products as sustainable and legal. • Market the pluses of hardwoods – color, strength, durability, value. • Establish codes of conduct for procurement practices
Embrace Lacey • Trade celebrates Lacey • Marketplace now has complete assurance that imported products are legal, responsible. • Architects and designers can increasingly specify imported species and products. • Increase/maintain imports market share in U.S.
Get to know what your market needs… National Wood Flooring Association • Establishes requirement for imports from “high risk” countries to complete the NWFA Verified Legal Origin program • LEED “Green Building” only FSC • Plywood must be low emitting for formaldehyde (U.S. national standard in the works)
Promote Truth, Not Fear Red-knobbed Hornbill Endangered species due to tropical deforestation U.S. company getting it wrong… IT’S MYSTERIOUSLY DIFFERENT. IT’S INCREDIBLY EXCITING. IT’S STRANGELY UNIQUE. Company Tagline (website): While exotic hardwoods may add mystery and drama to your living space, they also come with a high environmental price tag. Now you can have the look of exotics without the guilt……… [AND IT’S TOTALLY GUILT-FREE] Responsibly satisfy the hunger for exotics with an intriguing new product that’s as environmentally friendly as it is desirable..
Strengthen Marketing Efforts • Market Promotion of tropical wood as a commodity. • Education –Tackling hot button issues: legal trade, SFM, CITES, benefits of wood IWPA’s International Wood magazine shows the diversity of imported woods. Targeted to architects, specifiers, builders, and the trade. Distribution over 15,000 in the USA.
www.iwpawood.org New Online Information on Lacey The United States Department of Agriculture has created a Website dedicated to providing the latest information on implementation of the new Lacey Act amendments. Visit the new website here • Popular Items • Industry Trade StatisticsFirst Half 2009 Posted • IWPA Member Search • California Air Resources Board(ARB)-Plywood EmissionsRegulation: Resources & Updates New List of CARB Certified MillsThe California Air Resources Board (CARB) has released the initial list of mills producing CARB compliant composite wood panels. Visit here for the list of certified mills
Key Takeaways • U.S. market is in slow recovery • U.S. buyers are being asked to prove legality of their imports • Seize the opportunity to use media, partnership with IWPA, Websites, trade missions and other means to publicize Peru wood products as “Green”
World of Wood Convention World of Wood 2010 April 28-30, 2010 Eden Roc Hotel Miami Beach, Miami www.iwpawood.org Connect, Save and Sell!
World of Wood Convention ADEX Members: Special Registration: US$ 495 IWPA will promote your company’s attendance when you register! ….Your Connection to the U.S. Market Convention registration opens November IWPA to share details soon with ADEX
Thank you Tom Wilson International Specialties, Inc. www.Intlspecialties.com email@example.com Attend World of Wood 2010 April 28-30, 2010 Eden Roc Hotel Miami Beach, Miami www.iwpawood.org