January/February 2010 Page 23

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CChhiiccaaggoo,, IIllll..––Members of the WesternRed Cedar Lumber Association (WRCLA)met here recently in conjunction with theNorth American Wholesale LumberAssociation’s Traders Market®. WRCLA leaders updated members onassociation activities. About 40 were inattendance.Later, WRCLA hosted an all-day promo-tional program presentation about theassociation. Cees de Jager, WRCLA’s mar-keting director, and Jack Draper, managingdirector for the organization, spearheadedthis ‘open house,’ which included an infor-mation session at which an update of the2009/2010 promotional program wasreviewed, as well as other relevant topics.Draper noted that 60 percent of the organi-zation’s budget targets promotions. “We’rea marketing arm for Cedar,” he said. “Thisis what we are about. We are a voice for theCedar industry.”De Jager addressed ‘targeting architectson a very limited budget’ as a priority for

Continued on page 37

Al Lazauskas, Skana Forest Products Ltd., Richmond, B.C.; Steve Boyd,Manufacturers Reserve Supply, Inc., Irvington, N.J.; Cees de Jager, WRCLA,Vancouver, B.C.; Rick Fischer, Mid-America Cedar, Osseo, Minn.; and JackDraper, WRCLA

Mark Rutledge, Shakertown, Winlock, Wash.; Bill Hurst, Mid-AmericaCedar, Matthews, N.C.; and Susan Zick and Rick Fischer, Mid-AmericaCedar, Osseo, Minn.

Bradley Hodgins, Shakertown, Winlock, Wash.; Brent Stuart, RussinLumber Corp., Montgomery, N.Y.; and Don Demens, Western ForestProducts Ltd., Vancouver, B.C.

Paul Zartman, The Waldun Group, Maple Ridge, B.C.; Kim Poole, MazeNails Co., Purdue, Ill.; Tina Breen, Manufacturers Reserve Supply, Inc.,Irvington, N.J.; Ray Pauwels, Skana Forest Products Ltd., Richmond,B.C.; and Tim Knox, Mid West Lumber Minnesota, Inc., Stillwater, Minn.

Jim Gillis, Haida Forest Products Ltd., Burnaby, B.C.; Chris Beveridge,Skana Forest Products Ltd., Richmond, B.C.; Jack Draper, WRCLA,Vancouver, B.C.; and Ben Meachen, Western Forest Products,Vancouver, B.C.

Scott Lindsay and Kent Beveridge, Skana Forest Products Ltd.,Richmond, B.C.; Dave Daugherty, National Industrial Lumber Co.,Elizabeth, Pa.; Gary Arthur, Haida Forest Products Ltd., Burnaby, B.C.;and Kevin Ketchum, Consultant, Cordova, Tenn.

Ryan Kline, Disdero Lumber Company, Inc.,Clackamas, Ore.; Jim Ford and Don Bond, Brown& Rutherford Co., Ltd., Winnipeg, Manitoba; andRobert Burnett, Disdero Lumber Company, Inc.

Jeff Robinson, Mid Valley Lumber Specialties Ltd.,Aldergrove, B.C.; Chris Brooks, Roberts &Dybdahl Inc., Des Moines, Iowa; and Al Fortune,Mid Valley Lumber Specialties Ltd.

WRCLA Welcomes Members, Holds Open House At NAWLA

Carlos Furtado, Sawarne Lumber Co. Ltd.,Richmond, B.C.; Shawn Enoch, Cedar Siding &Lumber, Rochelle, Ill.; Jim Epperson Jr., EppersonLumber Sales Inc., Statesville, N.C.; and BradleyHodgins, Shakertown, Winlock, Wash.

Page 24 The Softwood Forest Products Buyer

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WESTON Overcomes Challenging Times, Advocates Growth

Michael Gosselin, Go Natural Wood Limited, Walsall, United Kingdom; Chuck Beatty, Gutchess Lumber, Cortland,N.Y.; Marec Khanov, Sergei Onishchenko, and Grathya Khoulian, AVA Company, Omsk, Russia

Gordon Glass, Gateway Hardwood Lumber Co., Kirtland, Ohio; and George Evarts, G.H. Evarts & Co., Springfield,N.H.

Frank Mainolfi, Weston Forest Group, Mississauga, Ont.; Brian Brown, Coastal Lumber Company, Charlottesville, Va.;and Art Nelson and Michael Shapiro, Weston Forest Group

BBoossttoonn,, MMaassss..––During the recent annu-al convention of the National HardwoodLumber Association at Sheraton BostonHotel, approximately 30 guests attended areception and presentation hosted byWeston Premium Woods Inc., Brampton,Ont., which is part of the Weston ForestGroup of Companies.According to Michael Shapiro of Weston

Forest Group, “We are taking the approachof growth even in these unprecedented anddifficult times. That growth involves addingto our sales force across North Americaand overseas, partnerships with mills, con-

centration yards, and other suppliers toensure the highest quality product deliv-ered to our customers on a consistentbasis. “The long and short of it is that Weston

Premium Woods, part of Weston ForestGroup, is growing rather than contracting.We are spending money on infrastructureand training, hiring new people, searchingfor new markets, looking for acquisitions,looking to solidify existing partnerships andbuild new ones and we want the lumbercommunity to know about it so they can bea part of it.”

BByy WWaayynnee MMiilllleerr

Chip Cummings, Roy Cummings and Scott Cummings, Cummings Lumber Co. Inc., Troy, Pa.; and Nico Poulos,Weston Premium Woods, Brampton, Ont.

At the reception, Shapiro presented aPowerPoint presentation to those in atten-dance. He addressed Weston’s preparato-ry steps toward building a strong future,which include: a strategic plan, implemen-tation of a new operating system, creationof a new organizational structure, creationof new company positions, invested in cap-ital equipment and expanded the productline.He added that, “last year Weston

Premium Woods refused to participate inthe recession. Now we are stronger thanever and ready to take our business to the

next level.”Weston Premium Woods Inc. produces

and distributes upper grade Hardwoodlumber and panel products to manufactur-ers and distributors across North Americaand globally.For more information, visit the

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•

January/February 2010 Page 25

Is The Softwood Lumber Industry Ready For A Check-Off Program?In the second quarter of 2009 theBlue Ribbon Commission (BRC)leadership—chairman Jack Jordan,of Jordan Lumber in North Carolina,and vice chairman Duncan Davies,of Interfor in Vancouver, B.C.,launched the Blue RibbonCommission with the purpose ofexploring the feasibility of establish-ing a check-off program forSoftwood lumber. The BRC is agroup of 21 chief executive officersand heads of business from allregions of the U.S. and Canada whohave taken a hands-on approach todeveloping a check-off program. Working with forest products pro-ducers and the U.S. Department ofAgriculture, if adopted, the programwill institute an assessment onSoftwood lumber products to sup-port a broad-based research andpromotion program, called “check-off,” designed to grow markets forSoftwood lumber.The process to develop a commod-ity ‘Check-Off Program’ takesapproximately two years. Theefforts of the BRC to establish thisprogram, which will fund promotion-al activities for the Softwood lumberindustry, are supported by theBinational Softwood LumberCouncil.BRC members include 14 repre-sentatives from the United Statesand seven from Canada. SouthernForest Products Assoc. (SFPA)along with Southern Pine Council

(SPC) and SoutheasternLumbermen’s Manufacturing Assoc.(SLMA) members sit on the com-mission.According to industry experts,check-off programs are the mostequitable way of funding genericproduct promotion and are designedto strengthen the position of anindustry in the marketplace. Amongthe many reasons for a check-offp r o g r a m ,some say,are theopportunityto grow mar-ket share,i m p r o v eb u s i n e s scondi t ions,and capturethe rightfulplace of thei n d u s t r y ’ sproducts as the most environmen-tally friendly building materials, andpart of the climate change solution.Check-off programs have beenused for more than 50 years by U.S.agricultural commodity producers togenerate funds to help educate con-sumers and promote domestic andforeign market demand. Well-knownexamples include the “Got Milk?,”“Beef, It’s What’s for Dinner,” and“Pork, the Other White Meat” pro-grams.The Binational Softwood LumberCouncil is providing leadership in

supporting the development of acheck-off through its funding of theinitiative and active participation inthe process by its directors andstaff.The BRC has agreed on sevenguiding principles on which to baseits work:1. Purpose: grow markets—improve share and profitability:

•Strong focus on architects,builders andp r o d u c tspecifiers• M a r k e tp r o m o t i o ndriven bye c o n o m i cfocus sup-ported andenabled bythe manyenvironmen-tal attributes

and preferability of wood—greenbuilding opportunity•Market opportunities created bybuilding codes2. Leverage check-off funds to pro-vide additional funding, expertiseand impact3. Minimize free riders: reduce bur-den on companies, that currentlyand traditionally fund cross-indus-try programs4. Lean management and adminis-trative structure: outsource pro-grams5. Collaborate with industry experts

to use existing industry programsand associations where appropriateand effective6. Avoid duplicative programming7. Focus research on growing mar-kets•Market research should drive pro-grams•Research to expand buildingcodes provides marketing opportu-nities•Life cycle research bolsters greenmessagingDuring this quarter of 2010 the BRChopes to have the details of a possi-ble check-off ready to share with theindustry, including information onpotential programs, assessmentand exemption levels, governance,etc.The Softwood lumber check-off ini-tiative is based on a study commis-sioned by the U.S. Endowment forForestry and Communities. Thisstudy is available at www.usendow-ment.org.

•

The BRC is a group of 21 chiefexecutive officers and heads ofbusiness from all regions of theU.S. and Canada who havetaken a hands-on approach todeveloping a check-off program

Page 26 The Softwood Forest Products Buyer

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Sources across theNortheast report sta-ble market condi-tions, although somesaid more businessclosures and limitednew construction areevident. According to

Random Lengths, spots of EasternSpruce-Pine-Fir activity were reported, butthe overall tone remained quiet. A trendfound in all regions, many builders arestruggling with limited credit availability forland acquisition, development and con-struction. A Pennsylvania supplier of all domesticSoftwoods said business activity wassteady. “At best business is steady, and atworst, we’re still seeing a lot of peoplegoing out of business.”The supplier said Basswood has pickedup steam. “I don’t know that anybody elseis moving any other types of Softwoodsother than Basswood in my area,” heexplained. “For us everything has stabi-lized.”Marketing to a full line of customers fromfood grade to construction suppliers, thesource mentioned while seasonally it’s nor-mal for a lot of his customers to slow downduring this period, “surprisingly most ofthem are still doing fairly well.”Looking ahead at 2010 he said, “I don’tsee conditions getting better in 2010. Idon’t expect to see a turnaround until atleast the second quarter of 2011.”Market conditions are much the same inNew Jersey, according to a Softwood sup-plier in the area. “I don’t know what to tellyou. We’re keeping busy and it seems fair-ly active, but there doesn’t seem to be areal demand,” he explained. As to the fac-tors involved, he cited housing and unem-ployment along with the general economy.

Western Softwoodsuppliers said mar-ket conditions areslightly depressedwith activity spurtsthat come on in ahurry and die off justas quickly. According

to the Western Wood Products Association(WWPA), the lumber industry should soonsee signs of a recovery, albeit a slow one.An Eastern White Pine and Western RedCedar supplier in Idaho noted that intermit-tent activity has continued sinceNovember. “We’ve been experiencingspurts of activity that come on all at onceand then die off in a hurry,” she explained.“We had a very busy late November andthen things kind of tapered off for a coupleof weeks, rising again in the first week ofDecember.”The source commented that cautiousspending for the winter was contributing tothe flurries. “People are being very carefulas to what they’re spending during the win-ter months. The remodeler’s may purchasehalf of a job because it’s at a fair price andcome back in a month and purchase theother half. We also have many inquiriesthat carry-on into the next month, cus-tomers are trying to see if the total price willgo down over a time period, so they canget the best deal for their dollar.”As the market dictates, the source saidshe has been trying to sell down inventorylevels and has been successful with 30percent less inventory than 90 days prior.Transportation issues have not been aconcern for the contact. “Transportationcosts have actually been pretty flat. Wehaven’t run into any issues and we’re hop-ing to make it through the winter withoutany issues popping up,” she said. “Thebiggest factor in our region is that people

are very shy about placing orders that theydon’t need immediately. Everyone is work-ing on a just-in-time inventory and thingsare a lot more involved than they were ayear ago, trying to get material to a cus-tomer who needs it tomorrow. There are alot of different factors involved now in mak-ing the sale.”Marketing to industrial manufacturers thesource said her clients markets are slowbut steady. “A lot of my customers havebeen preparing for this winter over the lastseveral months. I think people are a lotmore prepared then they were a year agowhen we were heading into the winter andpeople were expecting steady business,then the bottom fell out.”She mentioned that her customer’s mar-kets were also up and down. “It’s the samething, they get a couple of jobs and they’redoing great then it just dies off. So there isno sort of rhyme or reason or consistencyto this market.”A Softwood supplier source in Montanacommented, “Some people are remodelingin this area, and they’re buying a smallamount of material or either they’re usingrecycled material, which doesn’t help mymarket much. However, business activity isbeginning to show signs of improvementwith inquiries coming in.”The contact said the cost of fuel had beenstable in recent weeks, but he expected aprice increase as business begins toimprove.Taking an optimistic stance for 2010, thesource said he believes business will pickup in speed. “I think business will be a littlemore regular. I think we’ll see some sort ofrecovery. I don’t think it will be a greatrecovery, but I think we will at least be ableto look forward in optimism.”According to Random Lengths (RL),Western Spruce-Pine-Fir producers andtheir customers have had more weeks ofuneventful trading. While prices of No. 2and Better 2x4 through 2x8 teetered backand forth, prices of the wides were firm orslightly higher. The Western Wood ProductsAssociation’s (WWPA) newest forecastnoted 2009 should be the bottom for mills,with lumber demand dropping to the lowestpoint in modern history. However, therecovery is expected to be a slow one.

Going into 2010 he said he didn’t expectconsumer confidence to pick up by much.“Everybody can say it’s getting better, butpeople need to believe that before it hap-pens. In this area, if you’re employedyou’re lucky, many people are unem-ployed. I think the economy needs to beback on track for things to pick up and Idon’t see that in the short term future.”The supplier of Eastern White Pine andCedar said, “There seemed to be a littledemand for shingles and shakes a coupleof weeks ago, but it was sporadic.”Compared to 90 days ago the source saidhis inventory levels were the same. Whenasked about transportation costs, he saidfuel cost had remained relatively stable.According to the U.S. Energy InformationAdministration (EIA), the U.S. averageprice for regular gasoline slipped a pennyto $2.63 per gallon, $0.82 higher than theprice a year ago. Prices declined through-out the country with the Northeast droppinga fraction of a cent to $2.63 per gallon. TheEIA also noted that total U.S. inventories ofpropane fell in recent weeks by 0.9 millionbarrels to 62.7 million barrels.Northeastern stocks grew by 0.7 millionbarrels.New York manufacturing sector contactsreport steady to increasing activity andcontinued improvement in general busi-ness conditions. The Beige Book recentlyreported that commercial real estate mar-kets in the area have been steady to mod-erately weaker, while residential real estatemarkets have been mixed, but generallyweaker, especially at the high end of themarket. In the nation’s second largest district,medium to small sized banks reporteddecreased demand for all types of loans,particularly residential mortgages. A tight-ening of credit standards across all loancategories was indicated at a widespreaddegree. Bankers in the region noted anincrease in the spreads of loan rates overcosts of funds for all loan categoriesexcept residential mortgages, where nochange was reported. Credit standards arenot expected to loosen any time soon asbankers also reported increased delin-quency rates for all loan categories, most-ly in residential and commercial mortgagesegments.

Western BusinessTrends

By Terry MillerAssociate Editor

Continued on page 37

Northeast BusinessTrends

By Sue PutnamEditorial Director

Continued on page 37

January/February 2010 Page 27

Continued on page 37

By Gary MillerManaging Editor

South/SoutheastBusiness Trends

The Southeastregion reports slight-ly improved market

conditions with some experiencing helpfrom the recently extended $8,000 first-time homebuyer tax credit; and $6,500 taxcredit for owners of existing homes whoare purchasing a new principal residence.Existing homeowners can claim the $6,500credit if they have been residing in theirprincipal residence for five consecutiveyears out of the last eight.

According to the National Association ofHomebuilders (NAHB), the new law willextend the tax credit for sales contractsentered into by April 30, 2010 and closedby June 30, 2010.

In addition, the income eligiblity limits toclaim the full credit amount for both groupsof home buyers have been raised to$125,000 for individuals and $225,000 formarried couples.

The National Association of Realtors(NAR) released its expectations for the fullyear of 2009: 5.01 million home sales, anincrease of 2 percent from 2008. Whilegrowth was minimal in 2009 the groups2010 forecast is an anticipated rise of 13.6percent at 5.69 million home sales.

An Alabama Softwood lumber suppliercommented, “From the way it looks, it’sgoing to be a long, cold and hard winter. Ihope we can see some activity pick up byMarch but I’m afraid that it’s going to bemore like May or June of 2010.”

As to the factors involved in the currentmarket, the source said construction wasat its lowest point. “Not only do you havethe seasonal factor that people normally

don’t build in the winter, but you’ve got theeconomic conditions where people areafraid to do anything,” he explained. “We’rein a situation where we’re seeing moremills closing or mothballing. The banksaren’t lending any funds with stringentrequirements and that’s a huge problem.”

The supplier said the homebuyer taxcredit has helped his market to a degree.“It has helped some. There has been men-tion of extending the credit to any home-buyer not just specific to first-time home-buyers, and, from my understanding, somelegislation just passed and that develop-ment should help the Softwood lumberindustry and others, if they meet the creditrequirements.”

Manufacturing Cypress and SouthernYellow Pine, the contact said he recentlydropped his inventory levels another 15percent. “Transportation costs are thesame as they were three years ago. We’renot seeing the volume out there, I don’tthink it will be a bed of roses in 2010 and Iquestion how many mills will be left.”

In Mississippi a Softwood supplier saidmarket conditions were spotty throughout2009. “The early part of the year is slow forus in a normal market. I hope we’ve seenthe bottom but conditions are about thesame. We haven’t seen a lot of improve-ment over the last six months.”

According to the source, lack of confi-dence is the primary factor. “If there’s noconfidence in the market, people aren’tgoing to spend, which slows the economy,”he said. “Unemployment numbers are alsohigh right now and that has a large nega-tive impact.”

The Southern Yellow Pine supplier alsonoted that transportation costs were down.“Fuel prices are down and trucks haven’tbeen hard to find,” he explained.

Serving mainly industrial markets thesource said his customers’ markets wereoff. “They’re down like most, but I thinkwe’ll all see a little improvement after thefirst quarter,” he noted. “I think we are in fora slow recovery and there will be gradualimprovements.”

The National Assoc. of Realtors recentlyreleased its 2010 housing forecast. Withexplanation and caution, the group’s chiefeconomist, Lawrence Yun, explained, “Asteady draw-down of inventory will help

Ontario/QuebecBusiness Trends

As 2009 draws to aclose, wholesalersand mill owners alike

are hopeful that recent signs of improve-ments in the Softwood lumber market willtake root and grow into 2010. Althoughindustry officials remain unsure as towhether the slight recovery of the pastmonth represents a temporary or lastingchange, many are expressing optimism forthe coming year.

In Quebec, the sales manager of onewholesale operation said that although hissales for both Softwood and hardwoodhave dropped by almost 50 percent overthe past three years, he has been pleasedby a recent upturn in business. He said hissales of White Pine and Yellow Pine arebeginning to creep up again.

“It’s increasing a little in sales in the lasttwo months,” he said. “On a month-to-month basis, it’s up about 15 percent fromthis month a year ago.”

He noted that there are a number of fac-tors that continue to hold back the market.

“It’s because of the economy; it’sbecause of the U.S. exchange rate; and it’sbecause of international competition ofother species at a low cost,” he said,specifically citing low-grade imports fromChina.

He also noted that in terms of his compa-ny at least, the improvement in businesscomes after some steep costs.

“We’ve downsized quite a bit and openedup offices in China and Vietnam,” he said.“We’ve worked less hours; we’re working35 or 37 hours instead of 40.”

He noted that the downsizing processhas been considerable, with a drop from

By Michelle KellerAssociate Editor

150 employees in 2005 to 62 today. Still,he said, there are advantages to workingas part of a smaller company.

“We can get away with downsizing andhaving a much easier business to man-age,” he said. “Bigger is not always better.”

He added that although the prospect ofbusiness returning to the banner days of2005 seems remote right now, he remainsoptimistic that the industry is turningaround. That’s a sentiment shared by a fel-low wholesaler in Ontario, who said he isguardedly hopeful about 2010.

“I would have to say things have been upa little bit,” he said. “I think there’s a betterbalance now between supply and demand.This month, mills announced significantdowntime. Pretty much every mill hastaken extended downtime, and that hasspurred a little buying.”

He said that after three years of beingable to get Softwood whenever they want-ed, wholesalers are beginning to find thatthey need to plan ahead for the first time ina while. Still, he said, with the UnitedStates’ economy still in a depressed stateand housing starts still lagging, he contin-ues to see some tough times ahead.

“There’s a lot of blood on the floor and Ithink there’s a lot more to come,” he said,alluding specifically to foreclosures in theU.S. He added, however, that if enoughmills shut down, the balance between sup-ply and demand may be restored.

“Any uptick in demand creates a priceincrease,” he said. “That can be quick andsignificant, but probably not sustainable.”

Mills that have survived the tough times,however, may be poised to capitalize onany rejuvenation of the industry. OneOntario mill owner said he is hopeful, but isin the midst of what he called “thestrangest year I’ve ever had.”

“Last winter was slow, then it picked up inApril and May and dropped off in June andwas up in July and August. Then it wasdown in September and October and nowit’s up again,” he said. But when askedabout the future, he was reluctant to makea prediction. “No comment, because I justdon’t know.”

He said his mill, which specializes inWhite Pine, has transitioned over the pastfew years to offering more value-addedproducts, including dressing and drying

Continued on page 38

Page 28 The Softwood Forest Products Buyer

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CHARACTER BUILDING

NAWLA -Continued from page 1

BERG -Continued from page 1

dance was only off by approximately 20percent from last year with over 1,100 del-egates at this year’s event in Chicago.Exhibitors polled were mixed in their per-ceptions about this year’s show. Somewere pleased with the number and qualityof visits from buyers they received, whileothers voiced concern about lack of buyersand the slow pace of the show. In addition to the exhibition hall, severalspeakers addressed guests in variousseminars. They included: Dr. Adam J. Feinof Pembroke Consulting who spoke on“Strategies for an Evolving Supply Chain”;John D. Wagner and Green BuildingProduct Trainer and Consultant–“SellingGreen for the Lumber Industry.” Forumsand panel presentations were also offered,including Rick Grandinetti whose addresswas “Succeed Inside The Box.”Networking and social functions are amainstay during all NAWLA TradersMarkets. This year was no exception. Theassociation hosted an Early Bird CocktailReception, a Grand Opening luncheon, anIce Breaker reception and 10 variousgroup meetings.The NAWLA Traders Market® is the lum-ber, millwork and building materials indus-try’s premier event focused on supplier/dis-tribution interaction. The 2010 TradersMarket will be November 4-6, also inChicago.To contact NAWLA, phone 800-527-8258and visit them online at www.nawla.org.

•

recting for this phenomenon.”He continued, “That pressure on our mar-

ket because of that speculative bubble inhousing, that overbuilding, has translatedinto aggressive cost reduction effortsacross all sectors.” “The cause of the collapse of the housing

market is two-fold,” Berg said. “First of all,

said.Berg said the Federal Reserve is con-

cerned about vacancy rates in commercialproperties. This is a classic problem, hesaid, as commercial properties lag behindthe economy.A drop in the GDP last year, reflecting a

$1.1 trillion loss of production, has affectedoffice and retail space. This is differentfrom the beginning of this decade, whenthe dot.com bubble burst, he said. Therewas overbuilding of commercial spacethen, Berg said, but that’s not the case thistime. “As the economy turns around, weshould be able to assimilate these units.”While housing starts are expected to

increase and home repairs should improveby 2011, nonresidential construction coulddrop even more in 2010, Berg said.“The outlook for lumber demand under

modest housing numbers is not extremelypositive,” Berg said. “But you see that itdoes gain a little momentum in 2011 asnonresidential repairs and remodeling turnaround.”The total demand for North American

Softwood Lumber (American andCanadian combined) is projected to be 50billion board feet in 2010 and 56 billionboard feet in 2011. This is below the previ-ous peak and a 10-year average.Berg addressed the supply side of things,

including the cost profile of the industryand the available capacity to produce lum-ber.There has been a dramatic reduction in

the cost curve. “We’ve see log prices dropprecipitously. We’ve negotiated and seenreductions in all input prices. Mills havereduced head-counts. They’ve gotten cre-ative on production runs to the point wherethey have maintenance people standingon the line. They’ve cut overhead costs.Higher-cost mills have been closed. All ofthese have worked to lower the total cost-curve for the industry. So we have a dra-matically reduced cost curve as we go intothe next cycle.”Between 2006 and 2008, product-adjust-

ed cost plus freight to Chicago from differ-ent regions of the U.S. and Canadadropped from about $380 per million boardfeet to below $350 and, in most cases,below $300.“We’ve seen a dramatic reduction in

capacity,” Berg said. “With the losses

we’ve experienced and the length of timewe’ve experienced it, we’ve lost an esti-mated 10 billion board feet of capacitybetween 2005 and 2010. That comes toabout 133 mills that have closed perma-nently.To get the demand capacity ratio in 2011

back to the upper 80 percentile, you’d haveto lose another 125 to 130 mills, Berg said.He believes capacity will continue to drop

through 2010 but the number of closureswill stop in 2010 and there will be incre-mental gains in productivity.He predicts the demand capacity ratio to

be 70 percent in 2010 and 77 percent in2011.At the end of 2009, dealers and whole-

salers were buying only the lumber theyneeded to meet orders, he said. “Thisworks fine in a retreating market,” Bergsaid. “This is a real safe deal becausedemand is dropping and you’re not testingthe supply capabilities of the industrybecause the industry is lagging behind andnot cutting as fast.”Going into the end of 2009, he said, “We

don’t have the inventory overhang that wehad to blow out at the end of ’08. At thesame time, mills are already losing money.Their production schedules in the fourthquarter will reflect that they are not makingmoney.”In the second and third quarters of 2010,

Berg expects seasonal and cyclicalimprovements in demands, raising thepotential for volatile prices.“It’s not a bullish forecast but I think as the

market does improve, you will see anupward trend in prices.”Berg predicts cash flow for mills to be

neutral in 2010 with a modest improvementin 2011. Every quarter for some time, hesaid, demand for North American SoftwoodLumber has dropped below the year-agolevel. “We’re now starting to expand,” hesaid.He believes that in the third quarter of

2010, business will be 10 to 15 percenthigher than the previous year on a volumebasis and this will test the supply capabili-ties of operating capacity.Mills will have to increase production.

Berg said that once the mills respond –“and they can” – prices should return toclose to their levels at the beginning of

Continued on page 29

we had overbuilt. We had a lot of specula-tion in the marketplace, and adjustmentsfor this speculation can be done by reduc-ing production, therefore reducing housingstarts, or demolition, actually removinghousing from the inventory. Both of thoseare well in place.”Berg expected that the excess housing

would be worked off by the end of 2009.“The second problem,” Berg said, “is a lit-

tle more entrenched into the marketplaceand it is a little more painful to correct for,and that’s the overbought. Many house-holds purchased homes they that couldn’tafford because of credit standing. Peoplethat owned homes leveraged way beyondtheir means, and as home prices havecome down, they’ve been squeezed. Thisprocess takes both relocation of house-holds into homes that they can afford andalso lower home prices. And we’re seeingthat unfold and continue to unfold into nextyear. And these dynamics are going to bemanifested in foreclosure rates that aregoing to stay at relatively high levels butimprove probably through the next year.”Berg said it appears the housing market

has bottomed and turned, but it isn’t “flyingout of recession levels.”Sales, inventory, production and prices

appear to have bottomed, he said.Key elements for a housing recovery in

2010 and 2011 are much-improved afford-ability and pent-up demand, he said.People evicted from their homes are in

need of less-expensive housing, he said,and they constitute pent-up demand.He said that in the aftermath of the over-

building of the late 1990s to the middle partof this decade, housing starts will staybelow underlying demand for the next cou-ple of years.Mortgage rates, at 5 percent at the time of

the webinar, are expected to stay lowthrough 2010 at least, he said.The home improvements segment of the

forest products industry is weighed downby tighter credit available to homeownersand the fact that much equity was wipedout this decade.Support for this market comes from sales

of existing homes slowly starting toincrease.Based on the prevailing headwinds,

remodeling will be weak until it picks up inthe second half of 2010 and in 2011, he

January/February 2010 Page 29

BERG -Continued from page 28

FORECASTS - BernsteinContinued from page 1

FORECASTS - JeffersContinued from page 1

2010.“Even with our bullish housing forecast,

which we’ve heard from many people,”Berg said, “demand for North AmericanSoftwood Lumber in 2010 is going to bebelow the average for the last 10 years. It’sa lackluster forecast. Prices in this forecastreflect that.”But since the industry has been down for

so long, this forecast could seem overlyoptimistic to many people.

•

with our vendors. All parts of the supplychannel want to understand the actual sup-ply lines and the required amount of invest-ment their inventory will require. As theseasonal requirements change so doesthe level of investment. In 2010 we believethat the building material product groupswill experience inflationary swings, pricingvolatility and shortages. This is hard tobelieve given the state of our overall econ-omy, but we believe it will happen.Delivering this message to the retail/con-tractor level of the supply channel is a diffi-cult one. This year greater communicationbetween channel partners will be critical tothe recovery. Having the right amount ofinventory, at the right time will play a criti-cal role to this industry’s recovery. Theconsumers today monitor their expendi-tures and available income for spendingmore so than ever before. They will buy itwhen they can and will not, when they can-not. Our supply channel needs to under-stand this and invest in our industry soproducts are available for thecontractor/consumer when they are ready.Empty shelves will only frustrate the enduser and delay our industry’s recovery. Ourmarketing efforts, buying programs, inven-tory commitments that we offer to our cus-tomer base, hopefully delivers an incentiveto maintain inventory levels at their point ofthe supply channel.

•

What we do now, we know, will drive ourbusiness in the future. Some of the thingswe are doing is we have just recentlylaunched MachinePure® Prime, a newtechnology, environmentally friendly primerthat delivers ultra low VOC and HAPS freecontents while eliminating the need for slip-sheets in most instances, eliminatingwaste and saving money. We are expand-ing the inventory of our water based stainkilling primer, Seal-Grip® MC, providing asolid option to oil based primer on manyextractive rich wood species. And we havedeveloped advanced ways to deliver finishcoat material for wood or fiber cement andcomposite building materials by eliminatingthe need for colorants and using a comput-er to dispense and blend exceptional col-ors. This process and technology will moveusers to higher performance capabilities byimproving processes and eliminating costsand wastes while delivering outstandingquality of product.There is no doubt 2010 will offer us newchallenges and opportunities. Doing some-thing new with our offering, knocking onmore doors, and listening well to our cus-tomers will continue to be our path forwardto prepare us for the challenges and allowus to capitalize the opportunities.

•

chain. Instead of working together it’s morelike retailers vs. distributors and distribu-tors vs. the mills! At least in the case ofWestern Red Cedar, our more astute cus-tomers have realized that there really is awood shortage in certain items. Because ofthe vast amount of mill closures it will bedifficult to call twenty mills to get coveragewhen only a handful exists. When this cur-rent situation does turn around havingmore wood in fewer hands will make themarket even more volatile.Tri-Pro™ Cedar Products Inc. continues

to be a full service manufacturer. We don’tplan any expansions but rather will contin-ue to fine tune our current capabilities.

•

essence of our ability to recover and gen-erate growth through business investment.Once the level of business investmentbecomes active and the unemploymentlevels begin to stabilize, or decrease thenwe can look forward to the years 2011 and2012. Until then keep pulling out that splin-ter.The major challenges we are proactively

preparing for are customer credit issues,and supply line disruptions. There aremany ways to monitor customer credit.Continued dialogue with our customerbase creates a closer relationship so if aproblem does occur both parties canaddress it before it’s too late. The greateststruggle is extending credit lines to enableincreased revenues, but maintaining con-servative exposure, this is the fine line wewalk.A large effort is continued communication

and have done everything possible to takemarketshare in the no growth businesscycle we are in. There have been businesscasualties but the strong survive and likelywill in 2010 and beyond.Here at PPG/Olympic Machine AppliedCoatings, we are continuing to invest innew products, new programs and strongerselling efforts. New customers are alwaysthe key to survival while we deliver excep-tional service to our existing customers.We didn’t cut back on exhibiting at tradeshows or in our advertising budget.Advancing our brand and telling our storyis still a key strategy for us.

TTeerrrryy BBaakkeerrTTrrii--PPrroo™™ CCeeddaarr

PPrroodduuccttss IInncc..OOlldd TToowwnn,,

II dd aa hh oo

Sounds a bit repeti-tive….given the cur-rent situation in theoverall economy wefeel 2010 will contin-ue to be an incredi-ble challenge. We’reprobably looking at a

slight uptick in the second quarter; goingfrom a two to three on a scale of ten isn’texactly a runaway, however. Our cus-tomers, as are we, proceeding withextreme caution.The comments from our customers are

very consistent…preparing for the worstbut hoping for the best! There seems to bea definite rift developing in the distribution Continued on page 30

KKeevviinn HHyynneessHH aa nn cc oo cc kk

LLuummbbeerr CCoo..CCaassccoo,, MMaaiinnee

In preparing ourBusiness Plan for2010 we have talkedto our customersand friends aboutwhat they see forthe coming year.Generally the feelingis upbeat and posi-tive with sales of Eastern White Pine beinganywhere from slightly better than 2009 to25 percent better. I haven’t heard anybodysay conditions will be worse than 2009.The majority agree it is going to be 10 to 15percent better in 2010 than in 2009.The reason for this is solid. Whether you

are a sawmill or a retail yard, neither arecarrying much inventory of Eastern WhitePine. Different from last year when therewas too much inventory, thin inventoriesthis year should equate to steady buyingthrough the first quarter of 2010. Mills have adjusted their manufacturing

capabilities to fit the market. No one is gen-erating more lumber than they can sell. Atthe same time, if and when their customersneed more the capacity is there to fillorders. Having consistent outlets for Eastern

White Pine Lumber overseas has alsohelped to keep sales and production in bal-

Page 30 The Softwood Forest Products Buyer

FORECASTS - HynesContinued from page 29

ance.In any market, quality is important. At

Hancock Lumber Co. we are always striv-ing to improve the quality of our products.To produce a better quality product at ourBethel, Maine facility, we installed a newWeining moulder in January 2010, whichgives us the ability to produce made-to-order pattern stock with short lead times.This important Capital Investment, is aninvestment in the service and quality forour customers.Also recently we installed a state-of-the-

art software system in our Bethel PlanerMill to provide better operating and qualitycontrol. This new system controls everymachine in the Planer Mill, enabling us tofine tune the entire Planer Mill for optimalquality performance. As we head into 2010 Hancock Lumber

Co. would like to remind our customersand friends that we are here to meet yourneeds. No matter how unusual or difficult itmight be the Team at Hancock Lumber willget it done.

We hope all of our customers, friends,and associates had a great Christmas andwish you all a happy and prosperous yearahead.

•EErrnniiee CCllaarrkk

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I’m optimistic that2010 will be a betteryear for the lumberindustry than whatwe experienced in2009, but not a wholelot better. It’s going totake time for thehousing market and

economy to get strong, again. We’ll have asupply driven market in 2010 becausethere just isn’t much supply out there. I believe that many of the mills that have

shut down will not be reopening for a cou-ple of reasons: first, it would take a wholelot of capital to re-open a sawmill; and sec-

ondly, when a mill closes all the employ-ees, including the key people, are going tofind other jobs. A mill would have anextremely hard time replacing their keypeople that have a lot of experience in per-forming various jobs at the mill. So in slowtimes many sawmill owners are contentwhen their mills at least break even so theycan keep their employees working. Theowners still operating are counting on mak-ing better profits when the economy getsbetter.A topic Americans frequently hear about is

global warming. The environmentalists andeven our state and local government seemlike they are always using global warmingas a tool against the forest products indus-try. In some areas they don’t want logtrucks operating on roads because theythink it’s a determent to the environment.I’m sure many of the well-intentioned indi-viduals in government do not realize howbig the forest products segment of oureconomy is. Our industry furnishes hun-dreds of thousands of jobs in this countryand millions of dollars of tax revenue forboth state and local governments. It’s obvi-ous that environmentalists are always try-ing hard to get people to believe like theydo. I know here in Mississippi, we just hadone of the coolest Augusts that we’ve hadin recent memory. Furthermore, I heard ona radio talk show recently that Chicago justhad their coolest July since the 1970’s.From everything I’ve read and heard, it’s ascientific fact that our country has been ina cooling trend for 10 years.As far as mentioning any expansion my

company has undergone, by the time thisarticle comes out in the January 2010issue of your newspaper, we would havealready moved into a larger building abouta block away from where my wholesalelumber company is currently located. The last subject I’d like to touch on is how

important it is for us in the forest productsindustry to write your senators and con-gressmen to let them know where youstand on key issues before them. If there’san important bill about to be voted on, I callmy political representatives to let some-body in their office know where I stand.Phone calls to your senators and con-gressmen can go a long way in helping toget legislation done like you want.My co-workers and I hope everyone had a

nice Christmas and a Happy New Year!

•DDiiggggeess MMoorrggaann,,

PPrreessiiddeennttSSoouutthheerrnn FFoorreesstt

PPrroodduuccttssAAssssoocciiaattiioonnKKeennnneerr,, LLaa..

The SouthernForest ProductsAssociation (SFPA)is a nonprofit tradeorganization repre-senting SouthernPine Lumber manu-facturers. Since 1915, SFPA has promotedmembers’ products for a wide variety ofresidential, light commercial and industrialapplications.Our industry has faced dramatic down-

turns before, but certainly nothing quite likethe business climate of the last two years.Steady, monthly declines in lumberdemand have affected members’ opera-tions to create an environment not seensince the Great Depression. The absenceof meaningful homebuilding activity acrossthe country, magnified by continuing recordforeclosures, has eliminated the market fornew home construction. As a result, SFPAis taking aggressive steps that allow ourindustry to undertake the best possiblepromotional strategy for moving forward.For manufacturers, we anticipate no

improvement to the profitability picture untillater in 2010 or in early 2011. Fortunately,we may have seen the market bottom, butour industry could be stuck in neutral formost of 2010. From a record annual vol-ume recorded in 2005 (19 billion boardfeet), Southern Pine manufacturers maybe fortunate to turn out 13 billion board feetin 2010. And that figure represents animprovement of the total volume estimatedfor 2009 of barely 11 billion board feet. Our member producers will continue to

apply what they learned last year: how tolose less money. Softwood lumber pricesremain below break-even levels, whilecompanies continue to operate in survivalmode. Just like last year, associations andcompanies are learning how to “do morewith less.”

Continued on page 31

The extension of the federal tax credits tonew homebuyers and those who are look-ing to move up has helped manage themassive national inventory of properties forsale. There will be no new demand forhousing until a substantial portion of themillions of homes now on the marketbecome occupied. Fortunately, the creditcrunch has eased somewhat. What toexpect during the second year of a newadministration in Washington adds yetanother variable. Struggling financial mar-kets, high unemployment, stagnant per-sonal income growth and minimal exportscontinue to complicate the recovery pic-ture. Despite the poor business climate, SFPA

is moving forward. Collaborating withmembers, our proven marketing programcontinues to make progress in promisingtarget markets. SFPA is working toadvance the positive green messages thatonly a renewable resource like wood canoffer end-users. Our Forest ProductsMachinery & Equipment Exposition isbeing retooled and moving to Atlanta for2011 to showcase the newest productsand services available as our industrygears up for a recovery. True, the current downturn is unlike any

we have seen before. For nearly 100years, SFPA has conducted a wide rangeof promotional programs and weatheredevery downturn. Providing necessary serv-ices to our members while healthier mar-kets are eagerly awaited, we can assurethe long-term success of our industry.Complete information about SFPA pro-grams and services is available atwww.sfpa.org.

•DD ee nn nn ii ss

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EEnnggiinneeeerreeddWW oo oo dd

AAssssoocciiaattiioonnTTaaccoommaa,, WWaasshh..

Prospects for thestructural woodpanel and engi-neered wood prod-

But a full recoveryfor the lumber indus-try should not beexpected any timesoon.For 2009, U.S.

demand forSoftwood lumber isexpected to be lowerthan any year inmodern history atjust over 31 bΔillionboard feet – lessthan half the volumeconsumed five years earlier.Paralyzed by the U.S. financial crisis, con-

struction of new homes plummeted to551,000 in 2009, the lowest total in morethan a half century. Since new residentialconstruction accounts for 45 percent ofannual lumber demand, the decline inhousing starts has had a devastating effecton U.S. production and Softwood lumberimports. Looking ahead to 2010, sawmills will

begin to see some improvements in themarket. But persistent problems involvinghome foreclosures, credit availability andunemployment will continue dampeninglumber demand and production.Lumber demand should rise 11 percent in

2010, totaling 34.5 billion board feet.Housing starts will increase 21 percent to668,000. U.S. lumber production will move higher to

meet the new demand. Western mills areexpected to produce 11 billion board feet oflumber in 2010, up 8 percent. Sawmills inthe South will match that growth andincrease production to 12.6 billion boardfeet.Canada should begin to regain some of

the market share lost over the past fewyears. Imports from Canada are expectedto rise 18.8 percent in 2010 to 9.4 billionboard feet. Volumes from Europe and LatinAmerica also will increase to just over 1 bil-lion board feet.Beyond 2010, both lumber demand and

production are expected to follow anupward trend as economic activity andhousing construction continue to rise.

•

January/February 2010 Page 31

illl & Timberr Products

Contact: Jim Dunse, Berny Power or Sid Sigfusson

At Mill & Timber wemill our logs at oursawmills in PortMoody and Surrey,B.C. and we finish ourlumber at our plant inRichmond. We’ve gotthe resources andcontinuity few Cedar suppliers can offer. With the

seasoned experience of our sales team, and our skilled and fully certifiedproduction staff, Mill & Timber is your source for reliable service and thehighest quality Western Red Cedar products.

127700 -- 116thh Ave.. •• Surrey,, BCC V3VV 7H9Ph:: 604-580-27811 •• Fax:: 604-580-3646

Western Red Cedar is the Best and the BestWestern Red Cedar comes from Mill & Timber!

FORECASTS - HardmanContinued from page 30

forecast to decline 10 percent. U.S. and Canadian structural wood panel

exports are expected to finish 2009 down45 percent from 2008, a reflection of theglobal recession. Imports last year also areexpected to be down 21 percent followinga similar decline in 2008 in response toweak North American demand. However,both exports and imports are forecast torise this year as economies around theworld begin to recover. Panel exports areexpected to increase 22 percent to 745million square feet (3/8” basis) while panelimports are projected to rise 42 percent to732 million feet. The forecast by product category is for

North American Softwood plywood produc-tion to rise 4 percent this year, OSB 14 per-cent, glulam timber 8 percent, wood I-joists35 percent, and laminated veneer lumber25 percent. These are all welcome num-bers, although again, recovery will be slowand the challenges significant under eventhe best market demand and industry pro-duction forecasts for this year and beyond. Like companies and industries across

North America, APA over the past year hashad to reduce spending and focus on activ-ities most essential to its core mission.Current Association priorities include main-taining the high standards of our qualityauditing and certification programs; assur-ing member market access via codes,standards and local market activities; sup-porting such vital services as market fore-casting, online information services andthe Product Support Help Desk; and final-ly, leveraging non-dues income in supportof such programs as our Gulf Coast resi-dential construction and North Americannonresidential construction market pro-grams. Those programs in combination with

APA’s ongoing market maintenance anddevelopment efforts underscore our beliefin the importance now of building for bettertimes.

•

uct industries will hinge for the most part inthe coming year on the housing market.That is no surprise, since residential con-struction is far and away the single largestand most important market for most woodproducts in the structural engineered cate-gory. Given the dismal state of the housing mar-

ket in 2009—just 560,000 single-familyand multifamily units combined (plusanother 55,000 manufactured units),based on our late-year estimate—it is diffi-cult not to think that the housing markethas hit bottom and is nearing a turnaround.The rebound, however, is most likely to beslow in tandem with recovery of the overalleconomy, which still suffers the highestunemployment rate in a generation. Our current forecast is for single and mul-

tifamily housing starts to rise by 105,000units this year, to 665,000. That would rep-resent a substantial 19 percent increaseover 2009, but still just a third of the hous-ing starts recorded in the peak year of2005. A full-fledged housing market recov-ery is not likely until 2012, when housingstarts under our latest forecast are expect-ed to reach 1.24 million units. A hedge against that bet is interest rates,

which remain at historical lows but whichwill almost certainly come under increasingpressure at some point in response tounprecedented federal government stimu-lus and other spending. It will thereforelikely be a race to get housing going againbefore mortgage rates spike sufficiently tostifle the turnaround. Our forecast is for all domestic markets

except nonresidential construction to seeincreases in demand for plywood, orientedstrand board, glulam timber, wood I-joistsand laminated veneer lumber this year.Nonresidential construction, historically ona different cycle than residential construc-tion, peaked in 2008, three years later thanthe residential market. While the residen-tial construction, remodeling and industrialmarkets are expected to see 2010 struc-tural wood panel demand increases of 24,7 and 5 percent, respectively, demand inthe nonresidential construction market is

Continued on page 35

MMiicchhaaeell OO’’HHaalllloorraann,, PPrreessiiddeennttWWeesstteerrnn WWoooodd PPrroodduuccttss

AAssssoocciiaattiioonnPPoorrttllaanndd,, OOrree..

There are signs of a light at the end of thetunnel for Western lumber mills in 2010.

WHO’S WHO - GorshingContinued from page 22

WHO’S WHO - IorgContinued from page 2

“The Department of Defense prefers themover other wheel chocks available as thebottom has no primer or paint, which helpsthe wooden chock stay on the tarmac moreeffectively,” Gorshing says.Oklahoma League for the Blind also man-ufactures other products, not made withwood.It purchases 200,000 board feet annuallyof lumber, all of it certified.Oklahoma League for the Blind is a mem-ber of the Oklahoma Lumbermen’sAssociation.Gorshing has held her present positionsince July 2007. That year, she won theEmployee of the Year award.Gorshing graduated from Sentinel (Okla.)High School and went on to earn a bache-lor’s degree in accounting fromSouthwestern Oklahoma State University.She and her husband of 12 years, Chad,have two daughters.“I have currently started rowing,” Gorshingsays. “A few volunteers for OLB have puttogether a rowing team made up of foursighted individuals and four non-sightedindividuals. I am one of the non-sightedindividuals on the team rowing on theOklahoma River in downtown OKC.“I also love spending time with my hus-band, Chad, and our two daughters, Paige,12, and Alyssa, 8.”

•

turned 4x4 post and post caps,” Iorg says.The company also offers turned balustersand has the ability to handle truck loads orunit orders.Pacific Clears purchases 7,000,000 to8,000,000 board feet of lumber annually.Pacific Clears is a member of theCalifornia Redwood Association.Iorg has worked in the forest productsindustry 40 years. His first job was atMcNamara & Peep in 1968. After that, he

Page 32 The Softwood Forest Products Buyer

we believe in only the best quality.

W E S T E R N R E D C E D A R F A S C I A • R O U G H D I M E N S I O N S • D E C K I N G • T I M B E R S • F E N C I N G • P A T T E R N S T O C K

west bay. we’re big on cedar.

C A L L F O R A Q U O T E O R T O D I S C U S S Y O U R C U S T O M I Z E D C E D A R N E E D S T O D A Y 1 . 8 0 0 . 6 8 8 . 1 1 0 8

Manufacturers of Eastern White Pine.1x8 Std S4S or Pattern

6/4x8 Premium Log Siding5/4 D&Btr Select

Eastern White Pine C-Sel 5/4 Sel

DiPrizio Pine Sales

Route 153 & King’s Hwy.Middleton, N.H. 03887

603-473-2314 1-888-330-8467Fax: 603-473-8531

Mid Valley Lumber Specialties Ltd.

Phone: 604-856-6072

Fax: 604-856-6043

sales@midvalleylbr.com

www.midvalleylbr.com

TM

1122 Hwy. 2 • Oldtown, Idaho

(208) 437-0653 • FAX (208) 437-0579

Idaho Timber of North Carolina - Henderson Office

Henderson, North Carolina

SPF 2x4 - 2x12 (2’-24’) All Grades

SPF 2x4 & 2x6 pre-cuts 8’, 9’ & 10’ All Grades

SPF 2x4 - 2x12 Any cut to size trims

HF 2x6 - 2x12 (22’ & 24’) #2

CONTACT: Mike, Stuart, Craig, Martin or Deane

(252) 430-0030 Fax: (252) 430-6142

Idaho Timber of North Carolina - Chadbourn Office

Chadbourne, North Carolina

SPF: 2x4 - 2x12 RL (8’-20’) All Grades

SPF STUDS 2x4 & Wider, ANY PET TRIMS

1x4, 1x6, 1x8, 1x10 SPF boards 4’ - 20’

HOLTEC and TRIM SAW

European SPF all dimensions and widths

Edge Glue Panels imported

CONTACT: Jim

(800) 592-6035 Fax: (910) 654-3756

IDAHO TIMBER

Boise, IdahoTel.: (208) 377-3000FAX: (208) 378-9449

www.idahotimber.com

softwood forest products’ stock exchange

1 T/L 4” Std 6’ - 16’

1 T/L 10” Std 6’ - 12’

1 T/L 12” Std 6’ & 8’ S4S

15000’ 4” Prm S4S All 6’

15000’ 8” Prm S4S All 6’

10000’ 8” Std S4S All 6’

1 T/L 8” Prm S4S R/L 8’ - 16’

1 T/L 12” Prm S4S R/L 8’ - 16’

4”-12” C Selects S4S 8’-16’ 500’ Units

Custom cant sawing available

FSC Certified Eastern White Pine Products

ALL SUBJECT TO PRIOR SALEALL OTHER EASTERN WHITE PINE

PRODUCTS AVAILABLE UPON AVAILABILITY & REQUEST

P.O. Box 299 • 1260 Poland Spring Rd

Casco, ME 04015

Sales Tel: (207) 627-7605

Sales Fax: (207) 627-4200

Visit us at:

www.hancocklumber.com

Contact: Terry Baker Julie Anderson

Steve Hirst Lance Hubener

(800) 488-2726

WESTERN RED CEDAR

-Decking-Timbers-Balusters-Fence boards rails and posts-Pallet stock

DOUGLAS FIR

-Timbers-Clears

Western Red Cedar Kiln-Dried Products

Siding - Pro Select Knotty - Plain Bevel11/16” x 6” & 8”3/4” x 6”, 8” & 10”

Siding - Pro Select Knotty - Rabbeted Bevel3/4” x 6” & 8”5/4” x 6”, 8” & 10”

Pattern Stock - Pro Select Knotty WP-4 11/16” x 8”WP-11 11/16” x 8”WP-105 11/16” x 6” 8” & 10”WC-200 2” x 6” & 8”Channel - 11/16” x 6” & 8”

Fascia - Pro Select Knotty - No Hole5/4” x 4”, 6”, 8” 10” x 12”

Fascia - Pro Select Knotty - No Hole - S1S2E5/4” x 12”

Boards -D&Btr - S1S2E 7/8” x 4”, 6”, 8”, 10” & 12”

Boards -3&Btr - S1S2E 7/8” x 4”, 6”, 8”, 10” & 12”

Boards - #4 - S1S2E 7/8” x 4”, 6”, 8”, 10” & 12”

January/February 2010 Page 33

L U M B E R D I V I S I O NP R O D U C T S

PEFC/01-31-103

ROBBINS LUMBER, Inc.

est.1881

Searsmont, Maine U.S.A.

Stock ListingAll items subject to prior Sale

30,000 1x8x8 Stand

Can be Run to Pattern

30,000 1x12 Stand

Random Lengths

Can be Run to Pattern

P.O. Box 9Searsmont, ME 04973

Tel.: 207.342.5221 Fax: 207.342.5201Web: www.rlco.com

DOWNES & READER HARDWOOD CO., INC.

P.O. BOX 456 – EVANS DRIVE

STOUGHTON, MASS 02072

IMPORTED HARDWOODS DIVISION

TOLL-FREE: 866-452-8622

336-323-7502

FAX: 336-217-7970

IRON S ICK®

KILN STICKS

TOLL-FREE:

866-452-8622

ALL SIZES

IN STOCK - TRUCKLOADS OF:FLAT OR FLUTED

3/4 OR 7/8 X 4’ - 6’ - 8’

CALL WILLIAM OR STEVE

TOLL FREE: 866-452-8622

www.ironsticks.comimports@downesandreader.com

softwood forest products’ stock exchangeRadiata PineEWP Pattern/S4S boardsSPF/LP-PP/SYP/DF Decking/LockdeckGlulams–SYP/PT/DFTufftrim primed boardsAtlantic White CedarWoodway lattice/deckrailEnhance EWP Prestained PanellingScaffold PlankRex SynFeltVersatex boards/stealth/mouldingsRaindrop housewrapWRC/ Incense Cedar boards & deckingYardcrafters rail systemTruemarc deckingAshton-Lewis SYP flooringBlue Star Meranti & accessoriesPressure treated SYP beams/plywoodPoplar & Oak boardsTebo Hidfast SystemTimbersilCellek deckingDouglas Fir beams/timber/dimension/uppers2x6/3x6 wood deckingFinnForest LVLAnthony Power Joists/Wood ColumnsIpe

Hood Distribution600 Iron Horse Park

No. Billerica, MA 01862

1-800-752-0129 Fax: 978-667-0934

Swanson Group Mfg.

www.swansongroupinc.com Ph: 800-331-0831

Fax: 541-856-4299

Dimension:

Green Doug Fir2x4 #1/Btr; Std/Btr, Utility; Economy2x6 Select Struc; #2/Btr; #3; Economy2x8 #2/Btr2x10 #2/Btr

Studs:

Green Doug Fir2x4 Trims up to 117”2x6 Trims up to 117”4x4

Kiln Dried Doug Fir; Hem Fir; White Fir; SPF2x4 Trims up to 117”2x6 Trims up to 117”

Plywood:

OverlaysTruPour HDO 1/2” – 1 1/8”TruPour MDO 1/2” – 1 1/8” 9’ and 10’ avail.TruForm BBOES 5/8” – 1 1/8”EZ Pour 1/2” – 1 1/8”TruPaint 1/2” – 1 1/8”

Underlayment23/32 Sturd-I-Floor1 1/8 Sturd-I-Floor

IndustrialCCPTS 3/8” – 1/18”Sanded 3/8” – 1/18”

SpecialtyMarine Grade 1/2” – 3/4”Siding 3/8” – 5/8”

Page 34 The Softwood Forest Products Buyer

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800.347.6720

Our industry experts provide youvaluable help every step of the way.

As the 32 year lumber and building product technologyleader, DMSi delivers its acclaimed Agility so warewith unparalleled exper se and service for peakperformance, ease-of-use, and ROI. To learn more, callDMSi at 800.347.6720 or visit us online at dmsi.com.

The Teal-Jones Group17897 Triggs Road

Surrey, B.C.604-587-8700

www.tealjones.com

Teal Cedar16, 18 and 24 inch shinglesGrades #1 #2 #3 and #4Number one grade available in Prime CutQA1 Gold StandardHandsplit resawn shakes18 and 24 inch#1 grade and #1 Prime Cut.Premium Grades available in QAI Gold StandardTapersawn shakes18 and 24 inch#1 #2 and #3 gradesPremium Grades available in QAI GoldStandardAll shakes available in custom lengths andthicknessesSidewall shingles16, 18 and 24 inch lengthsRe-butted and rejointed (R&R)Grooved or SandedClassic Butt decorator shingles18 and 24 inch3, 5 or 6 inch widths10 styles to choose fromTeal Cedar sidewall finish

prime grey or whiteOil finish in semi and solid – all custom colorsAcrylic finish in 2 and 3 coat systemsUp to a 25 year warranty availableTeal Cedar lumberAppearance grade timbers and dimensionFine grain industrials-clears, shops and flitch-esExport ClearsFinished ProductsPanel and Pattern, siding, decking and fas-cia/trimRemanufacture blanks – mill run and TKSpecialties

The Waldun GroupManufacturers of Quality Western

Red Cedar Products

Maple Ridge, B.C.

Phone: 604-462-8266

Fax: 604-462-8264

www.waldun.com

Stave Lake Cedar

18, 24-inch Re-butted and Re-jointed

shingles

Machine Grooved and Sanded Shingles

Fancy Butt Shingles

Available in pre-primed and custom colors

Waldun Forest Products

18 & 24-inch Resawn Shakes

18 & 24-inch Tapersawn Shakes

16, 18, 24-inch Shingles

Tapersawn & Shake Hip & Ridge

Jumbos & Custom Sizes-Yellow Cedar

Shakes & Shingles Available as preserva-

tive or fire treated

Twin Rivers Cedar Products

2x3 thru 2x12 R/L S4S Arc-Knotty or

Custom Knotty

2x4 thru 2x12 R/L Rough Std/#2 Btr No Hole

4x4 R/L S4S Arc-Knotty or Custom Knotty

4x6 thru 8x8 Appearance grade Timbers

S4S or RGH.

Outdoor Living Today

Cedar gazebos, garden sheds, playhouses,

breezes (pergolas), and spa (hot tub)

shelters.

U.S. OfficesNH –Tel: (800) 990-0722 NY –Tel: (800) 935-2212

softwood forest products’ stock exchange

Kiln Dried Douglas Fir Timbers, Western Hemlock

and Western Red Cedar - Timbers Inventory, AllGrades, Milling and Remanufacturing

GOODFELLOW ORIGINAL and INTERNATIONAL

COLLECTION Hardwood Flooring – Prefinished andUnfinished

Southern Yellow Pine, Red Pine, and Clear Douglas

Fir Flooring

PRIMING AND STAINING FACILITIES

GOODLAM Laminated Beams – Spruce, Douglas Fir,and Southern Yellow Pine, Architectural and IndustrialGrade, APA Certified

Domestic and Imported Hardwood Panels – MDF,MDO, All Sizes and Grades

Solid Roof Decking 2x6 – 3x6 – 4x6

GOODFELLOW INC.Delson, Quebec Tel. : (800) 361-0625www.goodfellowinc.com

R. B. LUMBER COMPANYP.O. Box 2254

Oregon City, OR 97045

GARY - (503) 655-8020 FAX (503) 650-7235

E-MAIL: knightatrblumber@aol.com

RANDY - (623) 936-7090 FAX (623) 936-7091

E-MAIL: rblumberco@aol.com

Green Western Red Cedar/Pine/SpruceTile Batts.1x2-4’- rough, bundled and unitized.Western Red Cedar/Incense Cedar/YellowCedar Fence Rails2x3-8’2x4-8’Western Red Cedar/Yellow Cedar Fencing Flat Top & Dog Ear1x4-4’,5’,6’,8’-S4S, S1S2E, Rough1x6-4’,5’,6’,8’-S4S, S1S2E, Rough1x8-4’,5’,6’,8’-S4S, S1S2E, RoughYellow Balau Hardwood Decking5/4x6-6’ to 16’- S4S RED2x2-3’ - S4S4x4-8’ S4S1x4-8’ - Pattern, Bottom & Sub Rail2x6-8’ - Cap RailWestern Red Cedar Barbeque Cooking Planks1x8 - Various Lengths available

Call Us For

Western Red Cedar

and Import Needs

January/February 2010 Page 35

worked in quality control and lumber salesat Cal Pacific Redwood, and in lumbersales at Schmidbauer Lumber.For the past 30 years, Iorg has worked forPacific Clears as general manager. A grad-uate of Arcata High School, he went on toearn a bachelor’s of science degree atBrigham Young University.He is a member of the board of directorsof the California Redwood Association.Iorg and his wife of 35 years, Pamela, havea son, four daughters, seven grandsonsand five granddaughters. In his free time,Iorg enjoys archery, hunting, fishing, musicand guitar.

•

College with a degree in liberal arts. Herhusband Mark also works for RobbinsLumber Inc., as master electrician andMaintenance Department Manager. Theyhave one daughter, Mallory, who is sevenyears old. Tonia volunteers at her daugh-ter’s elementary school – where she ispresident of the Parent Teacher Group(PTG), is a Trustee at the University ofNew England, volunteers as a host of theannual auction on public television, andenjoys designing and crafting hand-madestationary and cards in her spare time.Sustainable Forestry Initiative (SFI) certi-fied Robbins Lumber Inc. is a member ofthe North Eastern Lumber Manufacturer’sAssoc. (NELMA), and the North AmericanWholesale Lumber Assoc. (NAWLA). Formore information about Robbins LumberInc.’s products and services contactTibbetts at 207-342-5221 or visitwww.rlco.com.

•

WHO’S WHO - IorgContinued from page 31

WHO’S WHO - KlingContinued from page 2

OLD VIRGINIA - Continued from page 4

WHO’S WHO - StuckeyContinued from page 2

annually.In 2005, Tuff Shed was named Ernst &Young Entrepreneur of the Year.In 2008, the company was named HomeDepot Provider of the Year.Kling has worked in his present positionfor the entire 12 years he has been withTuff Shed. He began his career in the for-est products industry 17 years ago as pur-chasing manager for an architecturalwoodworking firm.A graduate of Edwardsburg (Mich.) HighSchool, Kling went on to graduate fromOlivet Nazarene University in Kankakee,Ill., and to earn an MBA in operationsresearch from the University of Denver.He is an adjunct professor in the depart-ment of management at Regis University.Kling and his wife of 23 years, Amy, havetwo sons. In his spare time, Kling enjoysthe outdoors and playing guitar.

•

is a concentration/distribution yard thatpurchases over 10 million board feet ofCypress, Cedar, and Southern YellowPine, engineered wood products, framinglumber, composite decking, boards andpattern each year.Wholesale Wood Products manufactures

items from Cypress, Pine and Cedar inaddition to sales.Stuckey says he has been with the com-

pany since he was a young boy. His father,Jim Stuckey, and co-owner, Chuck Harris,started the company in 1979. His first job in the forest products industry

was in 1996 as a mill sales representativefor Custom Lumber Manufacturing. In2000, he became an account manager forGeorgia-Pacific Corporation’s Softwoodlumber division. He then returned toWholesale Wood Products in 2003 as gen-eral manager.Wholesale Wood Products is a member of

North American Wholesale LumberAssociation (NAWLA) and theSoutheastern Lumber ManufacturersAssociation.Curt Stuckey is a member of NAWLA’s

membership committee and theTouchdown Club-Birmingham chapter.Stuckey graduated high school from

Houston Academy in Dothan, Ala., andearned a bachelor’s of science degree inbiology from the University of Alabama atTuscaloosa.Stuckey and his wife of three years,

Heather, have two daughters and a son.

•WHO’S WHO - TibbettsContinued from page 2

September of 2009. In addition sheattended the 2009 NAWLA TradersMarket® in Chicago.A new face in the sales office is not all thatis new at Robbins. Robbins Lumberrecently launched Penobscot BayCoatings (PBC), a full line of paint andclear coat products. PBC is available forpriming of 4/4 and 5/4 boards as well asclapboard and Hardiplank. PBC also pro-vides top coating in any color, customstaining of live edge bevel and other roughfaced products and clear coating of knottyPine products run to pattern, such as WP4and ECB1S.Tibbetts graduated from Westbrook

certain their log home dreams come true.From the receptionist to the draftsman,whether it is one of their own designs or acustom design, Old Virginia has a reputa-tion for fine-tuning plans until they areexactly what the customer desires.The Eagle System is a unique design of

hand hewn 6”x12” logs in White Pine,Western Hemlock and Hem-Fir in lengthsup to 40-feet that are grooved to accom-modate movement with the company’s dis-tinctive chink board system.With the Williams System logs are hand

hewn or planed to accommodate four dif-ferent styles: 1.) A V-groove on both sides;2.) Chinking on both sides; 3.) a V-grooveon one side and chinking on the other; 4.)Each room in the house can be treatedindividually with chinking or V-groove asdesired. The company’s customer planersizes 6” x 12” White Pine timbers in lengthsup to 16-feet to uniform 11-3/4” in height,simultaneously cutting a groove that hous-es a wooden spline to assimilate the cus-tomer’s choice of style.Due to the numerous requests for a

planed log with a rounded contour, the HuffSystem was created. While milled logs areoften known for trouble spots in the manu-facture of log homes such as leaky cor-ners, cracks between the logs and air infil-tration, this system solves those troubleareas. This system features a dovetailnotch corner instead of a saddle notch orbutt & pass. Old Virginia uses a log screwsystem that replaces spikes and allows thehouse to settle if there is shrinkage whereall the fits will grow tighter. With so muchcontroversy over which is better to use forair infiltration—spine or tongue andgroove—the company integrates both inthe Huff & Williams System.Every piece that goes into Old Virginia’s

log homes is air-dried. It is due to theirlarge inventory of logs and the large stor-age area that they are able to provide air-dried lumber.Logs are hand hewn then dried at least

four months and are below 20 percentmoisture content before being used in alog package. All logs and materials usedare graded under the supervision of TimberProducts Inspection Inc. (TPI). Every pieceis inspected a second time as the home ishandcrafted. Each corner is fitted and setup in the manufacturing yard to ensure aperfectly tight fit, then disassembled andloaded on company trucks to be deliveredto the customer’s completed foundationand sub floor. Log homes are installed asthey are unloaded by experienced compa-ny employees or company qualified con-tractor/dealers, saving the customer thechallenge of getting the logs to the site andproperly installed.Old Virginia’s “What You See Is What You

Get” guarantee means exactly what itsates. “If the overall quality is not as goodas our headquarters, we will offer a fullrefund and the house is free of charge,”Williams explained. “Our guarantee is sim-ple and to the point, and we stand behindit.” Not only do they invite prospective cus-tomers to tour their facilities, inspect themodels and even spend the night in theirguest cabin, “while you’re here and if youfeel up to it, you can even try your luck athand hewing a log,” he added.Old Virginia Hand Hewn Log Homes was

founded in 1981 with the goal to continuean American heritage—handcraftingauthentic, Appalachian style log homesand to continue a family tradition. With acommitment to excellence over cost effec-

Continued on page 36

Page 36 The Softwood Forest Products Buyer

tiveness, gratitude to the generationsbefore them and an experienced knowl-edgeable staff, Old Virginia will likely besuccessful for years to come.For more information about Old Virginia

Hand Hewn Log Homes Inc., visit them atwww.oldvaloghomes.com to view step-by-step schematics of their log homes, or con-tact 246-546-5647.

•

marily Hemlock, Douglas Fir and SitkaSpruce domestic and export lumber prod-ucts, including structural and appearancetimbers and squares and industrial prod-ucts (clears, flitches, shops, mouldings).This mill also provides custom cutting serv-ices.

Five years ago the Jones’ built J.S. JonesTimber, a state-of-the-art sawmill, whichhas the capability of cutting up to one mil-lion board feet of lumber per day. “Wenamed the mill after my Dad. We cut smalllogs from this mill that go all over the worldto our good friends in the U.S. and to ourgood friends in Japan and other parts ofthe world,” Tom explained. The small log

OLD VIRGINIA - Continued from page 35

FOREST GROVE - Continued from page 6

TEAL-JONES - Continued from page 10

specifications we can supply a surfacedproduct, a band-sawn product, a circlesawn appearance product or a hand hewnappearance product. Whatever look thecustomer wants to achieve we can deliverit. We also have our trademark processcalled Accuruff®, which is a coarser bandsawn look for those applications that needsomething a little courser.” Accuruff’s rusticfinish is available on one, two, three or foursides.President Sid Smith has been a partner inFGL since 1991. Smith’s history in the lum-ber industry began in 1965 at J.W.Copeland Lumber Co. in Oregon City,Ore., where he was a manager. During hiscareer he worked for North Pacific andhelped start their Shelter Products divisionin Portland. Smith founded Idaho PacificLumber Co. in 1979 where he acted in hisrole as president until his retirement in1993. Smith returned to the industry withFGL after only two years of retirement.Vice-President Jack Burnard rejoined thecompany in 1975 to help his father keepthe books for a couple of weeks. He hasremained with the company ever since.After a long career in Canada’s lumberindustry, COO Ted Dergousoff joined FGLin 2004. The FGL team consists of approximately50 employees with 22 a part of the com-pany’s sales team.FGL also provides 19 pre-designed corbelpatterns, arches, knee braces and othercustom milled products. The company’ssupply network is made up of more thanten sawmills in the Pacific Northwest andCanada.FGL’s timbers have “landed” in someinteresting places. “Some of the ultra richmovie stars decided they wanted to havethis special look in California and we’vehad several big homes that we built there,or furnished the timber for, which gives usa special satisfaction,” Smith explained.“Our product is spread in applicationsthroughout the United States on specialjobs that we feel very proud of having sup-plied. We’ve got something very specialand select. Some of the larger timbers thatare needed can only be found in theNorthwest and we have the good fortuneof experience and ties to a lot of mills thatgive us the ability to find some of thesevery, very difficult timbers. Now these arenot everyday occurrences, but we end uphaving some very special orders all overthe United States.”FGL is a member and strong supporter ofthe West Coast Lumber Inspection Bureau(WCLIB) and a member of the TimberFrame Guild. The company’s specialproducts coordinator, Mike Burnard,serves on the Portland Wholesale LumberWholesalers Association’s board as itspresident.For more information visit www.fglco.comor contact 800-647-9663.

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sawmill manufactures Douglas Fir andHemlock, focusing on high value ‘specialty’square edged, small tight-knotted structur-al merchandise products, such as appear-ance grade decking for treating, trim, fas-cia, and lam/truss stock.Teal-Jones offers 215 sorts from the

sawmill. “We have 215 primary sorts com-ing out of the sawmill,” Randy Jackson, millmanager explained. “There is a portion ofthose 215 that ends up going to the planermill to be sorted again. We utilize as muchof the log as possible, we’ll wind up makinganother 50 sorts at the planer mill.”In Salmon Arm, B.C., the firm’s Red Cedar

Lumber Division specializes in custom cut-ting Red Cedar appearance timbers. Well-branded finished products with preferredlength and width tallies are manufacturedfrom this facility. Specialty products includ-ing Red Cedar fascia, posts and industrialsare also manufactured from this facility.Operating several facilities throughout

British Columbia, the Red Cedar Shake,Shingle & Sidewall Product Divisionincludes the Teal Cedar Shake & Shinglemill, which produces a variety of roofingand sidewall products. Teal Cedar is alsothe only Shake & Shingle mill that has itsown timberlands which provides directaccess to raw fiber. This in turn providesconsistent and reliable sourcing of logs. The Cascade Cedar operation has three

shake machines that produce 1/2-inch and3/4-inch shakes in both 24-inch and 18-inch lengths. In Masset, B.C., the Grahamfacility has four shingle machines and oneshake machine and the Titan Ridge facilityin Port McNeil, B.C., has seven shinglesaws and a Diasaw that produces shinglesand shakes. With four generations of Jones family now

onboard, the company also has a history ofmultiple generations of employees andcustomers. “We have customers that haveremained with us from the day that westarted,” Tom said. “Now their sons anddaughters are running their businessesand continuing on.” Some of the Teal-Jones’ employees are in their third genera-tion.The company’s relationships are as stable

abroad as they are in their home of theU.S. “Different countries have differentcustoms, and we respect those customs,”Tom said. “When I go to Japan, the buyerslike it when the actual owners come. Theylike to see the same people coming eachvisit.”At its core, The Teal-Jones Group is a

family structured, owned and operatedbusiness with decades of experienced per-sonnel. Along with Tom’s wife Holly, hisdaughter April Choquette, son Chad andhis brother Dick’s daughters and sons,Shelley Schmidt, John Gardner, Alan andMandy Jones also work for the company.Dick Jones attributes the success of Teal-

Jones to values instilled by their father atany early age. “Our Dad instilled integrity inus from the beginning. Everything that hereceived, he earned.”As for the reason a customer should

choose Teal-Jones Group over their friend-ly competitors, Dick said, “Quality is notjust a word at Teal-Jones. We grew up inthis business, we know how to make agood product. The company is fabricatedinto our daily lives, we take it home at nightand wake up with it in the morning.”Tom added, “I was working in the mill from

the time I was 9 years old.” As a framedphoto takes him down memory lane, Tomtells what it was like growing up around thesawmill. “In that picture, we were in North(Delta) with our little mill. We used to havefive square shingles and every Friday nightwe would load them onto the truck to sell toanother mill,” he explained. In fact, theJones’ own a renovated truck, identical tothe very same 1930 Model AA truck in thephotograph. “It’s the same truck we used todeliver the shingles from our one machineshingle mill in Surrey many years ago,” hesaid.The Teal-Jones Group offers buyers a tra-

dition of quality for over 60 years. TomJones said, “The company operations spe-cialize in well-manufactured high qualityforest products and in servicing their cus-tomers’ needs with innovative, cost effec-tive solutions.”Manufacturing price competitive products

according to customers’ demands andspecifications is the company’s missionand policy. By providing well-manufac-tured, consistent high quality products in acost effective manner, company manage-ment believes customers will continue torely on the Teal-Jones Group for much oftheir needs. For more information about the Teal-

Jones Group visit www.tealjones.com orcontact 604-587-8700.

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tion so far. In addition, coalition organizershave directed that the new AWC will coor-dinate and work closely with the industry’sexisting state, regional and product associ-ations.

For more information on how your com-pany or organization can get involved, con-tact Robert Glowinski of AWC at 202-463-2768.

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only about 1.7 million. Another potentialheadwind is that the Federal Reserve haspurchased virtually all of the mortgages in2009 and this is scheduled to change inMarch of next year. Mortgage rates mayhave to increase to entice others to buymortgage backed securities.APA’s forecast looks for increased wood

product demand for all domestic marketsexcept nonresidential construction.Nonresidential construction, historically ona different cycle than residential construc-tion, peaked in 2008, three years later thanthe residential market. While the residen-tial construction, remodeling and industrialmarkets are expected to see 2010 struc-tural wood panel demand increases of 24,7 and 5 percent, respectively, demand inthe nonresidential construction market isforecast to decline 10 percent. U.S. and Canadian structural wood panel

exports are expected to finish 2009 down45 percent from 2008, a reflection of theglobal recession. Imports last year also areexpected to be down 21 percent followinga similar decline in 2008 in response toweak North American demand. However,both exports and imports are forecast torise in 2010 as economies around theworld begin to recover. Panel exports areexpected to increase 22 percent to 745million square feet (3/8” basis) while panelimports are projected to rise 42 percent to732 million feet.The 2010 forecast by product category is

for North American softwood plywood pro-duction to rise 4 percent, OSB 14 percent,glulam timber 8 percent, wood I-joists 35percent, and laminated veneer lumber 25percent. A total of 42 Engineered Wood

Technology Association members andindustry suppliers participated in the sev-enteenth Info Fair exhibition, which wasopen during two receptions and a lunch atthe annual meeting. Strong support of theAPA meeting was also provided throughsponsorships. The Willamette ValleyCompany was a platinum sponsor, whileHexion Speciality Chemicals and Valsparwere gold sponsors. Participating at the sil-ver sponsorship level were AdalisCorporation, Arclin, Ashland PerformanceMaterials, Con-Vey Keystone,Dieffenbacher, Flamex, Grenzebach,Huntsman Polyurethanes, MEGTECSystems, Raute, Samuel StrappingSystems, TurboSonic, and Ventek.Sponsoring the golf tournament were theWillamette Valley Company, Arclin,Georgia-Pacific Chemicals, HexionSpecialty Chemicals, WPS IndustriesGroup, Valspar Corporation, and Ventek.The Ole Sorensen Memorial TennisTournament was sponsored by Flamex.For more information about APA, call 253-

620-7476.

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AWC - Continued from page 15

GREENBUILD - Continued from page 17

APA - Continued from page 19 PWLA -

Continued from page 21

the economic crisis and the climate crisisare connected. He shared his view that ashift to renewable enery that is domestical-ly produced would create more jobs byconstructing windmills, solar power, greenconstruction and retrofits on existing build-ings.Gore said, “The green movement is grow-

ing by leaps and bounds across the U.S.and the world.”He was introduced at Greenbuild 2009 by

U.S. Green Building Council Chairman andCEO Rick Fedrizzi.By all reports, enthusiastic crowds were at

Greenbuild, which this year featured morethan 1,000 exhibitors.Included in the exhibit hall was the

Certified Wood Pavilion, which hostedsuch associations as the ForestStewardship Council, the Composite PanelAssoc., and the Sustainable ForestryIntiative. In addition to keynote speaker Gore,

Greenbuild hosted seven ‘master speak-ers’ who represented facets of the greenindustry, including those that focused onthe environment as well as economics.Attendees had the option to attend more

than 100 educational sessions heldthroughout the 3-day event. These includ-ed: workshops geared toward helpingcompanies qualify for a LEED credential,site tours of Phoenix and world-renownedspeakers. A Greenbuilding Job Fair was new on the

agenda this year, as were the GreenbuildSalons, which USGBC described as itsversion of ‘Inside the Actors’ Studio.’ Theseconsisted of three-hour afternoon conver-sations focusing on art, technology andsustainability.For more information about upcoming

Greenbuild Expos, go online towww.greenbuildexpo.org.

•

chair of the APA Board of Trustees. Nybladhas been an APA trustee for four years andmost recently served as chair of the APAMarketing Advisory Committee. In other changes to the Board, Mark

Luetters, President of Georgia-PacificWood Products, LLC; and Rick Huff,President of Ainsworth Lumber Co. Ltd.,were elected to serve as trustees. Members of the Marketing Advisory

Committee voted to accept the 2010Strategic Marketing Plan and recommend-ed approval of the plan to the APA Board ofTrustees. The Board approved the plan ata meeting the following day.Leading off the presentations at the MAC

meeting was Dr. Ed Price, Georgia-Pacific,with an update on the PS 1 and PS 2Standards committees. APA staff coordi-nators reported on programs in theInternational, Nonresidential, Residential,Industrial and Supporting Program sectorsof the strategic marketing plan. Outgoing MAC Chair Mary Jo Nyblad,

Boise Cascade LLC, introduced TomTemple, Potlatch Corporation, who isassuming the role of chair for the commit-tee. In his market outlook, APA Market

Research Director Craig Adair predicted aslow recovery for housing and the econo-my in 2010. The economy is expected togrow about 2 percent next year and hous-ing is expected to rebound from 560,000starts this year to 665,000 in 2010. Thisyear, housing starts will be the lowest sincethe 1940s and there are many headwindsfor a recovery. One headwind is the 3.6million existing homes on the market thatare competing with new homes.Historically, existing home sales average

of the award is to recognize an individualin the Northwest lumber wholesale and/orsawmill industry. The selection criteriaincludes:• The length of time in and service to theindustry;• Contributions to the community, stateand nation;

Chuck Lamping, Hampton Lumber Sales, Portland,Ore.; and Mark Goodwin, Kuzman Forest Products,Hillsboro, Ore.

Pat Murphy, Pacific Western Lumber, Lake Oswego,Ore.; and Chris Chase, Patrick Lumber Co., Portland,Ore.

Continued on page 37

January/February 2010 Page 37

• Carlos Furtado • Ryan Furtado

www.sawarne.com

4/4xRWxRL • 4/4x6xRL • 8/4xRWxRL • 6/4xRWxRL

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ATT: PALLET - STAKE - INDUSTRIAL MFRS!Hardwood Lumber Rough Green

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Mars Hill, Inc.at (866) 629-9089 for obtaining the

best looking White Poplaryou’ve ever seen.

We kiddingly say “It’s so white, it’ll blind you!”We offer our White Poplar in 4/4 through 8/4 thicknessesin Sap 1F & Btr, 1 Com and/or FAS/1F grades in truckload or container load quantities only. FSC available.

FSC SupplierSCS-COC-002247

©1996 Forest Stewardship Council A.C.

Cedar producers. “Architects want greenand sustainable products,” he said.LEED and how it is a part of WRCLA’smarketing strategies was also a topic, andde Jager cited the fact that there havebeen 117 Cedar projects that are designaward winners now. Also, architects cannow receive a continuing education train-ing credit and sustainable design creditfrom WRCLA’s education classes.Summing up, de Jager said, “The enemyof my enemy is my friend. We’ve partneredwith Southern Pine and other wood associ-ations to educate buyers at Lowes and TheHome Depot and other retail wood outlets.”Draper added, “We’re going after newmembers in the U.S. and Canada. Weneed a membership drive, so we are lessdependent on government for our funding,which is expected to lesson in the future.”The mission of the WRCLA and its mem-bership is to produce quality Western RedCedar lumber products and support itsmembers with technical information, edu-cation and promotion.To contact the WRCLA, phone 877-778-9096.

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WRCLA - Continued from page 23

MIDWEST TRENDS - Continued from page 12

ONTARIO/QUEBEC TRENDS - Continued from page 27

WESTERN TRENDS - Continued from page 26

NORTHEAST TRENDS - Continued from page 26

McGraw Hill Construction’s 2010 forecastprojects various sectors will produce an 11percent gain for the value of new construc-tion starts throughout 2010.With more people in the Midwest buying

woodlots, average property size isdecreasing, making it harder for individualproperty owners to generate enough tim-ber profits to pay for proper land manage-ment. Significant advances were recently made

to help family forests better access ForestStewardship Council (FSC) certification.The goal of reducing the costs of certifica-tion and streamlining reporting require-ments has been met with FSCInternational’s new Group Certificationstandard and a revised accreditation stan-dard. The key issues addressed are an

improved group management system; agreater division of responsibilities betweenthe group manager and members; a newoption to apply Small and Low-IntensityManaged Forests (SLIMFs) streamlinedprocedures for mixed groups (SLIMF andnon-SLIMF); a new option to evaluatecompliance on some indicators at a grouplevel; and sampling requirements based onthe homogeneity of management systems,with a higher sampling intensity for largergroup members and a risk approach formega-groups.According to FSC International the new

Group FSC Certification is a key mecha-nism to bring small family forest ownersinto the FSC network. Scheduled for com-pletion by the end of the first quarter of2010, these standards promise to make

• Support of the greater Portland area lum-ber wholesale industry.Torgerson noted that this year’s recipientserved in World War II as a machinist andtrained as a waist gunner and later aninstructor on a B-24 bomber. WhenHallstrom returned from the war, heworked in the family’s sawmill businessfounded by his father and two other part-ners. He earned a mechanical engineeringdegree from Washington State Universityin 1950 and then became active in hiscommunity. About this time he alsobecame general manager of the family’smill. As the mill grew, relocated and remod-eled over the years, it became known forcutting fine grain Douglas Fir.Hallstrom, after 35 years in the business,at age 62, stepped down as general man-ager in 1985 and passed leadershipresponsibility of Zip-O-Log Mills Inc. to thethird generation – Jim and Karl Hallstrom.In addition to presenting the award andhonoring Hallstrom, attendees were treat-ed to a social gathering prior to the lunch-eon. Victoria Taft, a radio talk show host inPortland, was the guest speaker for theluncheon’s program.

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PWLA - Continued from page 36

FSC-certification accessible to all opera-tions, regardless of size, as stated by theorganization.

•

“Given the unprecedented downturn,recovery for the lumber industry is unlike-ly to follow the same path as it has in thepast,” said David Jackson, WWPA econo-mist. “The challenge for mills will beadjusting to a ‘new normal’ for the future.”The association predicts statistical datawill show only 31 billion board feet of lum-ber was utilized in 2009, which is less thanhalf of what was consumed in 2005. Only551,000 houses are expected to havebeen built in 2009, 39 percent down from2008. A record low surpassed only by326,000 in 1945.The second largest market for lumber, theremodeling sector has fared slightly betterthan home building. Some 11 billion boardfeet of lumber is estimated to have beenused in remodeling for 2009, 26.6 percentdown from 2008.Experts say markets should start the longroad to recovery in 2010. However, giventhe weak economy, continued high homeforeclosure rates and a financial systemstill struggling for stability, increases inlumber demand along with production willbe modest.WWPA predicts lumber demand to rise 11percent this year to 34.5 billion board feet.Housing starts are expected to increase21 percent to 668,000, a substantialincrease—but only half of the total con-sumption rate of 2007.

•

According to a market forecast fromWOOD markets, the Softwood lumbermarket is headed for a slow recovery.“Even by 2013, lumber demand will not beas high as its peak in 2005,” the reportstates. “While the coming winter will likelybe a tough one, rising housing starts, leandistribution-channel inventories and somelingering government stimulus programsshould kick-start lumber demand and evenprices,” president of Wood Markets,Russell Taylor said.Taylor forecasts the real recovery to takeplace in 2011, 2012 and 2013. “By 2012,and especially 2013, when demand shouldoutstrip supply at various stages, stud anddimension lumber prices should climb toaverage an incredible $200 US (per thou-sand board feet) or so higher than 2009levels,” he said.

•

lumber. Still, he said, he remains con-cerned about the future of the industry.

“I’m not an economist, but the ongoingSoftwood lumber fiasco with theAmericans in terms of trade has beenexacerbated by high fuel costs and thelow dollar,” he said. “I don’t even looksouth of the border any more. Also, thereis no desire to fix any of these thingsbecause there’s no building going on. Thepolitical will is not there.”

The only upside to the current chal-lenges, he said, is that the same high fuelcosts that increase his export costs areslowing the import market as well.

In Quebec, the sales manager at onemill said he is just pleased to see moreinterest in Softwood.

“Compared with six months ago, thingsare way better in terms of prices,” he said.“For next year, we are expecting way bet-ter than we did last year.”

He added that he was surprised by theamount of spec buying in October andNovember, and was even more surprisedwhen it continued into the early part ofDecember. He said his mill has alwayssold to wholesalers, and that nothingwould change that approach.

“We never went direct with any stores,plants, or treaters,” he said. “We want tokeep it that way. We haven’t changed theway we make product over the last fiveyears.”

Continued on page 38

Page 38 The Softwood Forest Products Buyer

home values to turn positive in 2010, butrisks such as unemployment remain in theeconomy.” According to Yun the outlook forhousing and the economy appears headedfor a sustainable recovery.

“Given the success of the first-time buyertax credit to date, and the need for quali-fied buyers to continue to absorb inventorythat will include additional foreclosuresover the year, we are hopeful about theimpact of the expanded tax credit becauseit will stabilize home prices,” he said. “Infact, the credit is working better than firstprojected—it now looks like we’ll have 2.3million to 2.4 million first-time buyers thisyear.” Housing starts, including multi-fami-ly units were estimated to total 564,000units in 2009 but forecast to grow to752,000 this year.

According to Home Channel News, NARwasn’t the only optimistic recent forecast.At a Building and InfrastructureConference, Peter Linneman, the principalof Linneman Associates and the AlbertSussman Professor of Real Estate,Finance and Public Policy at the WhartonSchool of Business at the University ofPennsylvania said, “I think this recoverywill stun people when it occurs.”

Focusing on previous downturns, particu-larly that of the early 1980’s, Linnemansaid panic played a heavy role in the cur-rent market downturn. “Exuberance fol-lowed by panic, hey, it happens,” he said.“It’s going to come again.”

With the nation’s heavy concern towardsunemployment, Linneman added thatmany companies simply didn’t replaceworkers who retired or left. “That factor willtend to speed job growth during a recov-ery.” He predicted job growth would beginto show small gains in March and April2010 before taking off.

“The good news is, as soon as the econ-omy grows, you just have to replace; youdon’t have to have systemic growth in theeconomy to get a massive job growth,” hesaid.

•

He did note that the mill’s product make-up has changed somewhat, based ondemand. For example, he said that 5/4 by6 premium grade green rough has beenvery profitable for his mill over the last fewyears.

“The feedback was good, so let’s keepgoing,” he said. “We make it now on a reg-ular basis. We’re always looking for new,high value products. We have to do thesechanges to stay alive. We don’t have achoice.”

Back in Ontario, another mill owner saidthat the changes in the market have dra-matically reshaped a business that he hasbeen a part of for the past 17 years.

“It’s changed so much, it’s like I’m runninga new business,” he said. “It’s not like any-thing I did five years ago. I think we have tohunker down and prepare for a long winter.The experts say that by the second half of2010, things will turn. In six months, we’llknow if they knew what they were talkingabout.”

•

ONTARIO/QUEBEC TRENDS - Continued from page 37

SOUTHEAST TRENDS - Continued from page 27

TRADE TALK

RRiicckk PPaallmmiitteerr aanndd AAhhrreenn SSppiillkkeerrJJooiinn IIddaahhoo FFoorreesstt GGrroouupp

CCooeeuurr dd’’AAlleennee,, IIddaahhoo——Rick Palmiterrecently joined IdahoForest Group (IFG)located here, as spe-cialty products andaccount manager. “I am extremely

pleased to announcethat Rick Palmiterhas joined our salesteam as specialtyproducts andaccounts manager,”Jim Scharnhorstsaid in a recentpress release.“Rick’s lumber career

has included over 20 years experience assales manager of Idaho Veneer. We appre-ciate the support of IFG customers andtrust recent changes will enhance ourefforts to better serve you in the yearsahead.”Palmiter and his wife of 30 years, Colleen,

have twelve children. In his spare time heenjoys fly-fishing and spending time withhis family.Ahren Spilker has joined the firm’s sales

staff. Spilker brings several years experi-ence having recent-ly worked in lumberand stud sales forPlum Creek TimberCo. along with priorexperience in salesat D.R. JohnsonLumber Co.,Umpqua LumberCo., and RiddleLaminators. He hasalso worked in lum-ber sales/procure-ment for GeorgiaPacific Distribution,and as sales man-

ager for Timber Resources ForestProducts/Floragon Forest Products.In his spare time he enjoys golfing, fishing

and spending time with his wife of 17 yearsand their three children.IFG was formed through a merger in 2008

of two long-time family-owned and operat-ed companies, Riley Creek Lumber andBennett Forest Industries. The companyoffers White Fir, Hem-Fir, Doug Fir/Larch,SPF, Ponderosa Pine, Englemann Spruce,Lodgepole Pine and Cedar in 2X3 through2X12, 8’ to 20’; 2X3 through 2X6, 8’ to 9’PET; 1X4 through 1X12 PP & ESLP, LamStock, Select Structural, No. 1 & Better,MSR, and Custom grades.

•CCaallvveerrtt CCoommppaannyy JJooiinnss FFoorrcceess

WWiitthh CCaassccaaddee SSttrruuccttuurraallLLaammiinnaattoorrss

EEuuggeennee,, OOrree..——The Calvert Companyand Cascade Structural Laminatorsrecently announced they are joining forcesunder the banner of Calvert Company. Calvert Company

intends to serve thecustomer base for-merly with CascadeStructural with a fullline of stock beamand header invento-ry as well as customglulam production.“Combined with theexpertise of Calvert,this arrangementpromises to be anexciting program forthe marketplace,” arepresentative said.Cascade’s main manufacturing facility

was destroyed by fire in May of 2009.“Thank you to all of our customers, thesupport we received before and after thefire was tremendous, Kilgore said in apress release. “We at Cascade want tobelieve that we created something specialand delivered value to all of you.Fortunately, the venture with Calvert prom-ises to provide a platform to offer tremen-dous opportunity.”Doug Calvert, president of Calvert

Company and Steve Kilgore, president ofCascade Structural Laminators are in theprocess of purchasing additional equip-ment in anticipation of improving marketsand sales growth. Calvert will retain Kilgoreas sales and product development special-ist. For more information contact DougCalvert at 360.693.0971 or Steve Kilgoreat 541.726.9836.

•IImmppeerriiaall SSyysstteemmss AAnnnnoouunncceess

NNeeww SSaalleess MMaannaaggeerrJJ aa cc kk ss oo nn CC ee nn tt ee rr ,, PP aa .. ——Imperial

Systems Inc., located here, recentlyannounced a newsales manager,Charles Owens. Imperial Systems

Inc. provides dustcollection solutionsfor the forest prod-ucts industry. Thecompany’s productline includesR e v e r s e - A i rBaghouses, PulseJet Baghouses,Cyclones, Airlocks,Slide Gates, DiverterValves, Abort Gates,

SCF After-Filters, BackDraft Dampers andall necessary components. Continued on page 39

Ahren Spilker

Rick Palmiter

Steve Kilgore

Charles Owens

Imperial Systems designs, fabricates andinstalls turnkey systems. Among manyinstallations, the company converted a

wood biomass power plant. According tothe company website, this was one of thefirst power plants in the United States toconvert a coal-fired power plant to a wood-fired. By implementing Imperial Systems,the coal usage of the plant was reduced by30 percent.With more than 15 years prior industry

experience, Owens will be responsible forsurveying clients needs by doing air read-ings of current systems and designing newsystems.Owens and his wife of 43 years, Martha

Jane, have four children. He will work froman office in Knoxville, Tenn. For more infor-mation visit www.isystemsweb.com.

•SSnnaavveellyy FFoorreesstt PPrroodduuccttss EElleeccttss

VViiccee PPrreessiiddeennttPP ii tt tt ss bb uu rr gg hh ,, PP aa .. ——Snavely Forest

Products, headquartered here, recentlyelected Mark L. Spargo as vice presidentof the company.Spargo joined Snavely Forest Products in

1987 as a member of the ExecutiveTraining Team. He has held positions ininside and outside sales. Spargo was pro-moted to PhoenixDivision GeneralManager in 1997.“Having proved hisprofessional, cre-ative and leadershipabilities, Mark wasagain promoted to asignificantly largerfacility as generalmanager of theSnavely ForestProducts DenverDivision in 2006. Heholds a B.S. in mar-keting from ArizonaState University. Spargo and his familyreside in Westminster, Colo.Snavely Forest Products headquarters

are located in Pittsburgh, Pa. and salesand distribution facilities are located inPittsburgh, Pa.; Baltimore, Md.; Dallas,Texas; Denver, Colo.; Houston, Texas;Liberty, N.C.; Phoenix, Ariz.; and Lakeland,Fla. Snavely International has sales officesand remanufacturing facilities inPittsburgh, Pa., and Westminster, Md.

•AAnntthhoonnyy FFoorreesstt PPrroodduuccttss CClloosseess

AAccqquuiissiittiioonn aanndd AAddddss NNeewwSSaalleessmmaann

EE ll DD oo rr aa dd oo ,, AA rr kk .. ——Anthony ForestProducts, based here, and The MolpusGroup, headquartered in Jackson, Miss.,recently announced completion of the saleand acquisition of 91,360 acres of maturePine sawtimber timberland and related tim-ber cutting rights from Anthony.Under the terms of the sale, Molpus will,

on behalf of a client, provide a substantialportion of the premium sawtimber under along-term timber supply agreement toservice Anthony’s mills located in Urbana,Ark.; Atlanta, Texas; and Plain Dealing, La.Anthony manufactures lumber and engi-neered wood products for the buildingindustry, as well as wood chips for thepaper industry. Molpus will also continuethe Sustainable Forestry Initiative® (SFI)certification of the timberlands, which wasachieved by Anthony.“The Anthony properties are strategically

located in the Ark-La-Texas region in ahighly attractive wood basket with strongdemand from regional wood and paperindustries. Also, the Anthony family has,over the decades, done an extraordinaryjob of acquiring and managing these prop-erties. We look forward to continuing theAnthony legacy of stewardship on thisland,” said Dick Molpus, president ofMolpus Woodlands Group.In other news at Anthony Forest Products

Co., Russ Anthony, executive Vice

President, recently announced that RussKimbell, former vice president and generalmanger of U.S. Timber’s Southern division,has joined Anthony Forest Products Co. tolead the lumber sales organization.

“The addition of Russ Kimbell as lumbersales manager will bring over 25 years oflumber sales knowledge and managementexperience to our organization,” RussAnthony said.Kimbell added, “I am very excited about

working for Anthony Forest due to the com-pany’s survivability in the current marketdue to business integration, diversity ofexperienced management, and reputationof quality in the marketplace.”Russ Kimbell started and managed U.S.

Timber in the central sales office inConway, Ark., as well as remanufacturingfacilities in Booneville, Ark. and Cordell,Ga.He is a native Texan and has lived many

years in Arkansas; Kimbell enjoys boating,duck hunting and fitness. He has a son,Scott and a daughter, Kristen. Kimbell maybe contacted atrkimball@anthonyforest.com or 870-862-3414.Anthony Forest Products Co. is an inte-

grated forest products business incorporat-ed in 1965. The company owns approxi-mately 91,000 acres of timberland inArkansas, Louisiana and Texas. The com-pany also operates engineered wood lami-nating plants in El Dorado, Ark. andWashington, Ga. Anthony Forest ProductsCo. and Domtar Inc. of Montreal, Canadajointly own and operate the I-Joist manu-facturing plant in Sault Ste. Marie, Ontario.For more information visit www.anthonyfor-est.com.

•FFoorrmmeerr RRIISSII EEccoonnoommiissttss LLaauunncchhFFoorreesstt EEccoonnoommiicc AAddvviissoorrss LLLLCC

WWeessttffoorrdd,, MMaassss..——Former RISI econo-mists recently launched Forest EconomicAdvisors (FEA) LLC. An independentanalysis and third-party forecast firm forthe forest product and timber sectors, FEAis owner-operated.“Our wide-ranging network of contacts in

the producer, supplier, financial, govern-ment and academic communities assuresthat we provide our clients with a balancedand comprehensive assessment of thesectors we cover,” stated the company pro-file on Linkedin.com.Comprised of former RISI economists with

a long track record in the industry, mem-bers of the team have been covering theforest products industry since graduateschool. The company is headed by PaulJannke, principal of lumber, BrendanLowney, principal of macroeconomics andGreg Lewis, vice president of wood panels.

•SSccoottcchh LLuummbbeerr CCoo.. MMeerrggeess

WWiitthh GGuullff LLuummbbeerr CCoo..FF uu ll tt oo nn ,, AA ll aa .. ——Scotch Lumber Co.,

based here, and Gulf Lumber Co., locatedin Mobile, Ala., have recently agreed tomerge. Combining Scotch’s sawmill in Fulton with

Gulf’s sawmills, remanufacturing plant andtreating facilities in Mobile and Jackson,Ala., the new company will be Scotch &Gulf Lumber LLC. Sales and administrativeoperations will be located in Mobile, Ala.

•FFoorreesstt22MMaarrkkeett IInnttrroodduucceess

MMiillll22MMaarrkkeettCChhaarrlloottttee,, NN..CC..——Forest2Market, head-

quartered here, recently launchedMill2Market, weekly lumber price reportsfor the wholesale lumber trade.“Mill2Market corrects the deficiencies of

the price reports that most companieshave traditionally used. Instead of basingthe prices reported on survey or interviewresults, Forest2Market collects its datafrom actual orders and invoices,” projectmanager for lumber product development

Imperial Systems Converted Wood BiomassPower Plant

Mark Spargo

Aubra Anthony Russ Kimbell

January/February 2010 Page 39

Massachusetts800-752-0129 800-468-8220 800-955-2677

Connecticut Vermontt

www.HoodDistribution.com

R. B. LUMBER COMPANY

R. B. LUMBER COMPANYP. O. Box 2254

Oregon City, OR 97045

623-936-7090 - Randy

Fax 623-936-7091

rblumberco@aol.com

� INDUSTRIALS

Moulding, Finger Joint, Shop Core Stock, Pattern Work

� PRODUCTS FOR REMANUFACTURE

Random length low grade boards & dimension, Waney cants, Tight Knot Timbers

CALL US FOR

WESTERN RED CEDAR AND IMPORT NEEDS!

Our products include:

� FENCING ROUGH & S1S2E, FENCING DECKING & PATTERN STOCK

1x4, 1x6, 1x82x4, 2x6, 2x84x4, 6x6Western Red Cedar

Incense Cedar Chinese Fencing, Decking & PatternsGalvanized PipeStove and Horse Bedding Pellets

503-655-8020 - Gary

Fax 503-650-7235

knightatrblumber@aol.com

TRADE TALK

Continued from page 38

at Forest2Market, Suzanne Hearn said.“We then aggregate the data into threereports—mill realization by region of origin,mill realization by destination and deliveredprice by destination.”The Mill2Market reports each detail vol-

ume weighted prices for a wide range ofdimensions and lengths. Southern YellowPine, Spruce Pine Fir, Douglas FirHemlock and Larch are among the speciesincluded.“Forest2Market is well-known in the

forestry and wood products industry as theonly provider of transaction-basedstumpage and delivered prices for forestproducts from timber to wood fuel,” saidPete Steward, president and CEO ofForest2Market. “Our existing customersbelieve so strongly in our approach to datacollection that they asked us to develop alumber product that would have the samedegree of transparency, credibility andneutrality as our raw material pricing serv-ices. With the addition of Mill2Market,Forest2Market now covers the entire sup-ply chain, from the forest to the market.”For more information visit

www.forest2market.com.

•WWeessttoonn FFoorreesstt PPrroodduuccttss AAccqquuiirreess

CCoolloonnyy RRaattcclliiffff LLuummbbeerr’’ssIInndduussttrriiaall BBuussiinneessss

MM ii ss ss ii ss ss aa uu gg aa ,, OO nn tt .. ——Weston ForestProducts, based here, announced it haspurchased Colony Ratcliff Lumber Inc.’sIndustrial Lumber business.“We wish to thank our many suppliers,

customers and staff who supported ourIndustrial Group, but we think our cus-tomers will be better served by WestonForest Products,” said Ratcliff PresidentRick DeVincenco. “The breadth and depthof their inventories and remanufacturingcapabilities will bring more value to ourcustomers than we could.”“Colony Ratcliff is an excellent company,”

Weston Forest Products executive vicepresident Steve Ekstein said. “We arepleased we were able to deal with suchnice people. We wish Ratcliff continuingsuccess with their home builder business.”Weston Forest Products Inc. is a part of

Weston Forest Group, whose companiesremanufacture and distribute a wide rangeof Softwoods, hardwoods, panels andengineered wood products throughoutNorth America and overseas. For moreinformation visit www.westonforestprod-ucts.com.

•FFoorrmmeerr UU..SS.. TTiimmbbeerr CCoommppaanniieessMMeemmbbeerrss DDeevveelloopp LLuummbbeerr CCoo..

EEaaggllee,, IIddaahhoo——Eagle Forest Products,based here, is a new lumber and panelsales, supply and manufacturing organiza-tion.Developed by former U.S. Timber

Companies members Brad Bower, CaryHoladay, Mike Ebert, Roger Brown andScott Vario, the company is also a licensedtransportation broker involved in both truckbrokerage and rail consultation.For more information contact Brad Bower,

president of Eagle Forest Products at208.323.9300.

•CCaappttiiaall LLuummbbeerr WWeellccoommeess

CChhrriiss CCoouunnttssPPhhooeenniixx,, AArriizz..——Capital Lumber Co.,

headquartered here, recently announcedthe addition of Chris Counts as accountsmanager. With over 25 years of experiencein the forest products industry, Counts wasmost recently with Cedar Creek.Capital Lumber Co. supplies Redwood,

Cedar, Douglas Fir and Whitewoods, Pine,hardwoods, and composites, polymers andplastics. For more information visitwww.captial-lumber.com.

•SSFFII RReevviisseess SSttaannddaarrdd IInn 22001100

WW aa ss hh ii nn gg tt oo nn ,, DD .. CC .. ——The SustainableForestry Initiative (SFI) program hasrevised its standard for 2010. The revised2010-2014 Standard is the outcome of aone-year open review process in whichmore than 2,000 individuals and organiza-tions were invited to comment. Among the

revisions, an added emphasis on theimportance of avoiding controversial or ille-gal fiber sources, strengthening landowneroutreach and logger training programs,and better aligning principles with interna-tional criteria and indicators has beenincluded. “As a result of the transparent review

process, the revised standard reflects allvalues, including important provisions forwildlife habitat and biodiversity,” vice pres-ident of the Wildlife Management Institute,Scot Williamson said. “It is both forward-looking and practical.”

•EEsstteemmeerrwwaalltt LLoogg HHoommeess RReecceeiivvee

NNAAHHBB’’ss EExxcceelllleennccee AAwwaarrddHH oo nn ee ss dd aa ll ee ,, PP aa .. ——Estemerwalt Log

Homes was recently awarded theExcellence in Home Design honor from the2010 Building Systems Councils (BSC) of

the National Association of Homebuilders(NAHB), a trade association that repre-sents the concrete, log, modular, and pan-elized building system industries. Estemerwalt Log Homes is a 5th genera-

tion family-owned company with over 126years experience in the lumber industry.Estemerwalt creates one of the most com-prehensive log home packages available,offering a wide variety of log profiles,including D-Log, Half Log, and the ever-popular Full Round Log. The BSC Excellence in Marketing and

Home Designs Awards has promotedexcellence in the housing industry for morethan 10 years. This year’s winners wereannounced at an awards luncheon thattook place in Marco Island, Fla. The cere-mony was held in conjunction with the BSCShowcase event—a leading trade showand conference based around the sys-tems-built housing industry. Among thegroups recognized at the Showcase werehome manufacturers, builders and industryassociates. Said BSC Chairman Michael H. Weber

with Lancaster Redevelopment Corp.,“This year’s award winners, likeEstemerwalt Log Homes, prove that evenin a slow housing market, the systems-builtindustry is raising the bar in residentialmarketing and home design concepts.” Hecontinued, “Our award winners are addingcredibility to their businesses and sheddinga positive light on the building systemsindustry as a whole.” Companies like Estemerwalt Log Homes

were commended for the quality of theirproducts by a panel of industry experts.Kurt Propst, the owner of Estemerwalthomes, thanked the panel and praised hisemployee’s efforts.

•

Beth Reece (left) and Kurt Propst (right) ofEstemerwalt Log Homes receive the NAHB’sBuilding Systems Council Excellence Award.(also pictured in center is Vic DePhillips fromSignature Building Systems)

WEST COAST TRENDS - Continued from page 12

and that the worst is behind us in thisrecession. There are no shortages now,but that could change fast in Cedar supply.Primary producers are not carrying loginventories so if there is any surge in buy-ing it could turn into a scramble for Cedar.”At a primary Cedar mill another executivesaid, “We see some pent up buying due tolow inventories in the field. We don’t seethat 2010 will be a banner year, but we dosee generally more confidence comingfrom our customers throughout the states.This winter will be slow and it will be atough time, waiting to see what spring willbring.”Carlos Furtado, sales manager forSawarne Lumber, Richmond, B.C., said,“The Cedar market is still quiet. Prices

Continued on page 40

Page 40 The Softwood Forest Products Buyer

S a l e s :: Winn Smith,, Jr.E m a i l :: win@limingtonlumber.com

P h o n e :: (207) 625-3286F a x :: (207) 625-7399

Website:: www.limingtonlumber.com

Manufacturerss off Qualityy Easternn Whitee PineProducts and Services:• Producing 15,000,000 bdft. annually• Weinig Waco maxi planer specializes in pattern stock• Nine Irvington Moore dry kilns - total capacity 360,000 bdft.• All shipments via truck or van are paper wrapped• Marketing through Wholesale and Wholesale Distributors

OU R PR O D U C T S A R E MA R K E T E D THROUGHOUTTH E UN I T E D ST A T E S A N D CA N A D A.

LIMINGTONLumber Co.

411 Pequawket TrailRte. 113, P.O. Box 47

E. Baldwin, ME 04024

OOBBIITTUUAARRYYCCLLAARREENNCCEE DDAAYY

MMeemmpphhiiss,, TTeennnn——Clarence Day, 82,recently passed away from injuriesreceived in an automobile accident.Born on July 27, 1927, to Clarence andChristine Day in Aberdeen, Miss., hereceived his secondary education atAberdeen High School, attendedSouthwestern at Memphis (now RhodesCollege), and earned a B.A. in BusinessAdministration from the University ofMississippi. He obtained honorarydegrees from Centre College, FurmanUniversity, Rhodes College and theUniversity of the South at Sewanee. Dayis survived by his daughter, DiannaHolland of Memphis; his granddaughter,Natasha Christina Heflin Davis of NewYork City; and his stepson, Eli Haizlip ofSan Francisco, Calif.Day operated Day Plywood Companyfor approximately 40 years after pur-

chasing a wire bound box company,veneer mills and door skin plant, heslowly converted them into one largehardwood plywood mill that producedmedium-to-high-end hardwood plywood. He was a member of the MemphisCountry Club, the Edgartown Yacht Clubon Martha’s Vineyard, and the RoyalAutomobile Club in London. Memorialservices were held at Calvary EpiscopalChurch, followed by a reception at theJunior League of Memphis House.Memorials may be sent to YouthVillages, 3320 Brother Blvd., Memphis,TN 38133.

•

WEST COAST TRENDS - Continued from page 39

are stable and we are seeing moreinquiries for spring. Some people areasking for extended terms if they takewood early. We are seeing a few slowpay accounts. But generally most cus-tomers are more optimistic that 2010 willbe a bit better than this past year.Everyone is just taking one day at atime.”Joe Nealon, partner in Pacific WesternLumber, Lakewood, Washington, said,“We offer a wide range of products,including commodities between ouroffice here and the one in Lake Oswego,Ore. We have six guys in the office thereand they all focus on different markets.Most of the commodity sales are fromthere while we focus here on timbersand specialties. The timber and special-ty product items are seeing depressedsales like all the other areas. These mar-kets crashed about a year ago and haveseen no sign of recovery since. We sellto mines, shipyards and our sales gointo very high priced homes, which arebuilt for $800 to $1000 a square foot.Everyone is in the same boat. Sales areoff 30 percent or more in almost everyarea. Lumber production is off maybe 35percent from last year. I do see encour-aging signs the last couple of months inlevels of activity. However, the firstquarter remains a mystery and after thatit is anyone’s guess. Till we get peopleback to work we will not see much of arecovery. Our biggest concern is whatwill our industry look like at the other endof this down period, especially the small-er mills and family owned operations.”Vince Mast, handling sales fromPortland, Ore., from one of HamptonLumber’s Washington mills, said, “Themarkets have been promising. The lastthree to four weeks have seen prices goup, but now it is leveling off in greenDoug Fir and SPF. Mill curtailmentshave helped support the market. Winterweather has slowed demand consider-ably. Right now there is a bit of a standoff in that mills do not want to give onprice and customers are not ready tobuy. Right now mills are poised to breakeven or maybe make a little money, butany increase in production will seeprices weaken. The fundamentals tell usthat we don’t have strong housing num-bers, politics are uncertain, there is handto mouth buying of logs for productionand that any increase in production willover supply the market. In 2010 we willsee additional sawmills fail. Hamptonrecently bought Weyerhaeuser’sWarrington, Washington sawmill. Thismakes our company the largest vendorof Hemlock in the world, and this moveis part of our long term planning strate-gy. It adds another 350 million feet to ourproduction. It means that based on atwo shift basis Hampton is up from 14thto 5th in total North American volume.”Raymond Luther, on the sales team of

Mary’s River Lumber, Corvallis, Ore.,said, “We are seeing Western RedCedar buyers just filling in inventories asneeded, hand to mouth. They are stillbuying at half truck load levels in manycases. I did have a Texas buyer order 10trucks of material last month of midgrade products, but that is the excep-tion. I feel 2010 will be a lot like 2009.We took three weeks off at one sawmilllocation during December and fourweeks off at our second Cedar mill. Weare planning to go back full bore on oneshift at each mill because we have tofront load our customer base for the newyear.”Bob Maurer, on the marketing team forSwanson Group, Glendale, Ore., said,“We are in the process of adding a sec-ond shift to our plywood plants inSpringfield and in Glendale, Ore.Demand for our panel products isencouraging. However, we are basical-ly manufacturing 2 x 4 and 2 x 6 framinglumber going into housing. That markethas got to get a lot stronger to positivelyaffect our sawmills. We are looking atsome new markets for our plywoodincluding school bus and marine use.One of the areas we are always workingon is improving quality. I am proud to saythat two of our sawmills have been QMS(Quality Management Systems) desig-nated by the Western Wood ProductsAssociation, and a third will soon be sodesignated. Currently there are only 15such designated mills (in eight firms) inthis Association, so we feel proud of thisaccomplishment.”Darren Duchi, at Siskiyou ForestProducts, Anderson, Calif., said, “Rightnow most people we know are strug-gling to get through the holidays. Ourcustomers have seen hard times. Wehave a little bit of an order file. Everyoneis trying to be optimistic and is lookingfor some improvement in the first andsecond quarters of the new year. Weare making a fair variety of productsincluding two coat primed exterior mate-rial, using Western Red Cedar orRedwood. We offer SIS2E or S4S andlengths from 16 to 20 feet and we offerpattern stock. Several of our customersmake windows and doors. We havebeen on two shifts for the last fourmonths and we are running short onpersonnel, partly on purpose. We’vebecome more efficient over the pastyear and we have been making capitalimprovements—even now in today’sslower markets. When we come out ofthis slump, we want to be ready to moveforward. Right now we see there is anopportunity to make improvements veryefficiently and for lower costs, but it isalso a bit of a gamble. What is some-what worrisome is the possibility ofsome serious inflation ahead.”

•

January/February 2010 Page 41

SOFTWOOD CALENDARJANUARY

Northwestern Lumber Assoc.,Building Products Expo, Grand CasinoHinckley Conference Center, Hinckley,Minn. Contact: 763-544-6822 or e-mailnlassn@nlassn.org. Jan. 11-12, 2010.

British Columbia Wholesale LumberAssoc., Annual Meeting and Seminar,Vancouver Rowing Club, Vancouver, B.C.For more info go to: www.bcwla.ca. Jan.20.

National Association of HomeBuilders International Builders Show,Las Vegas Convention Center in LasVegas, Nev. Contact: 202-266-8111. Jan.19-22, 2010.

FEBRUARY

Northeastern Retail Lumber Assoc.Lumber and Building Material Expo,Seaport World Trade Center, Boston,Mass. Contact: 866-299-2386. Feb. 3-5.

MARCHWestern Wood Products Assoc., AnnualMeeting, Embassy Suites, Portland, Ore.Contact: 503-224-3930 orinfo@wwpa.org. March 8.

Southern Cypress Manufacturers Assoc.,Renaissance International Plaza, Tampa,Fla. Contact: 412-323-9320. March 10.

NAWLA Regional Conference, The HotelMonteleone, New Orleans, La. Contact:847-820-7470. March 26.

APRILNAWLA Regional Conference, PortlandGolf Club, Portland, Ore. Contact: 847-820-7470. April 6.

Lumbermen’s Association of Texas,Henry B. Gonzales Convention Center,San Antonio, Texas. Contact: 512-472-1194. April 8-10.

•

Quality WWestern CCedar PProducts

2x4 RAILS in 8-10’ bothrough and surfaced

Cedar 4x4 POSTS in4, 5, 6, 7, 8, 9and 10’ lengths

1x4 BOARDS in 4, 5and 6’ lengths

Cedar PICKETS

4418 NE Keller Rd., Roseburg, OR 97470 • FAX (541)-672-5676

Dan Keller, Sales Manager • (541) 672-6528

2x2 clear cedarBALUSTERS in 32” - 36” -42” - 48” - 96”

Classified Opportunitiestimes Ad is to run. All Ads to be insert-ed on prepaid basis only.

Classified advertising accepted onlyfor: Position Available, Position Wanted,Business Opportunities, Machinery ForSale, Machinery Wanted, Wanted ToBuy, Service Offered.

Classified Rates: Display $60.00 percolumn inch, fractions of an inch will becharged as a full inch. Line Ads are$8.00 per line.

All classified Ads must be received bythe 15th of the preceding month.Example: Ads for the March/April 2010issue must be in by Feb. 15th, 2010.

Also, please specify the number of

FOR SALEMACHINERY LIST

McDonough 54” resaw model RA-59 (tilting HYD feed)New Holland Skid steer loader Model LX565 Runs wellNewman KM-16 3 Head Trim SawYATES, A62 – Motorized PlanerStetson Ross 6-12-A1 planer 5-headPERKINS 4.203 Newly Rebuilt Forklift Engine 1989 Ford L8000 with 12 ton/50’ CraneChip Bins-20 unit and 14 unit, 30 unit and 15 unit Western Pneumatics bins, NiceToledo digital truck scale 11’ wide x 68’ longMISC. Tilt Hoists, Lumber Handling EquipmentMISC. Electrical, DisconnectsMISC. ConveyorsMISC. Roll CasesMISC. BlowersMISC. CyclonesMISC. Hydraulic Pumps

CONTACT: Darrell Gottschalk(208) 835-2161

IDAHO TIMBER

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Page 42 The Softwood Forest Products Buyer

INDEX OF ADVERTISERSBoise Cascade LLC ...................................21

Crawford Creek Lumber Co. Ltd. ...............10

DMSi ..........................................................34

DiPrizio Pine Sales ....................................23

Durgin & Crowell Lumber Co. ....................19

Eastern Forest Products ..............................4

Forest Grove Lumber Co. ..........................30

Goodfellow, Inc...........................................25

Gulf Coast Shelter......................................24

Haida Forest Products Ltd. ........................12

Hancock Lumber Co...................................11

Hardwood Forestry Fund ...........................42

Hood Distribution/McQuesten Group .........39

Idaho Timber Corp. ......................................6

Keller Lumber Co. ......................................41

Lazy S Lumber...........................................44

Limington Lumber Co.................................40

Mars Hill, Inc. .............................................37

Mary’s River Lumber Co. .............................8

Mid-State Lumber Corp..............................40

Mid Valley Lumber Specialties, Ltd. .............7

Mill & Timber Products Ltd. ........................31

NELMA (Northeastern Lbr. Mfrs. Assoc.) ...28

Nordic Engineered Wood...........................43

Pacific Western Lumber, Inc. .....................43

Pacific Western Wood Works Ltd. .............27

Pa. Lumbermens Mutual Ins. Co. ..............26

PPG Industries/Olympic ..............................3

R. B. Lumber Co. ......................................39

Richardson Timbers ...................................43

Robbins Lumber Inc...................................17

Sandy Neck Traders ..................................41

Sawarne Lumber........................................37

Siskiyou Forest Products ...........................35

Swanson Group .........................................22

Taylor Machine Works................................29

Teal-Jones Group.......................................33

Tri-ProTM Cedar Products Inc......................13

Trout River Lumber ....................................15

Waldun Group, The......................................5

West Bay Forest Products & Mfg. Ltd........32

Wynndel Lumber Sales................................9

Zip-O-Log Mills, Inc. ...................................43

www.millerpublishing.com

P.O. Box 34908 ~ 1235 Sycamore View

Memphis, TN 38184-0908

(800) 844-1280 or (901) 372-8280

Fax: (901) 373-6180

E-mail: editor@millerpublishing.com

Miller Publishing proudly serves the woodworking industry with thefollowing publications and online directories:

National Hardwood Magazine................................www.nationalhardwoodmag.com

Import/Export Wood Purchasing News ..................www.woodpurchasingnews.com

Softwood Forest Products Buyer .........................................www.softwoodbuyer.com

Classified Exchange ..........................................................www.classifiedxchange.com

Imported Wood Purchasing Guide ...................www.importedwoodpurchasing.com

Forest Products Export Directory www forestproductsexport com

Imported Wood Purchasing Guide ...................www.importedwoodpurchasing.com

Forest Products Export Directory ............................www.forestproductsexport.com

Dimension & Wood Components Buyer’s Guide...........www.dimensionwoodcomponent.com

Hardwood Purchasing Handbook ...................www.hardwoodpurchasinghdbk.com

Greenbook’s Hardwood Marketing Directory ................www.millerpublishing.com

Greenbook’s Softwood Marketing Directory ..................www.millerpublishing.com

Forest Products Stock Exchange ...........................www.forestproductsstockexc.com

Please visit us online for more information

about our publications

FOR SALE

MACHINERY LIST

McDonough 54” resaw model RA-59 (tilting HYD feed)

New Holland Skid steer loader Model LX565 Runs well

Newman KM-16 3 Head Trim Saw

YATES, A62 – Motorized Planer

Stetson Ross 6-12-A1 planer 5-head

PERKINS 4.203 Newly Rebuilt Forklift Engine

1989 Ford L8000 with 12 ton/50’ Crane

Chip Bins-20 unit and 14 unit, 30 unit and 15 unit

Western Pneumatics bins, Nice

Toledo digital truck scale 11’ wide x 68’ long

MISC. Tilt Hoists, Lumber Handling Equipment

MISC. Electrical, Disconnects

MISC. Conveyors

MISC. Roll Cases

MISC. Blowers

MISC. Cyclones

MISC. Hydraulic Pumps

CONTACT: Darrell Gottschalk(208) 835-2161

IDAHO TIMBER

Classified Opportunities

January/February 2010 Page 43

DOUGLAS FIR up to 20” x 20” x up to 40’CEDAR 16” x 16” up to 32’

Richardson Timbers is a leader in cus-tom millwork and manufacturing of cus-tomized timbers, with capabilities ofdelivering products throughout the U.S.Serving the construction industry for

nearly 60 years, by taking the spirit ofthe old and combining it with the leadingtechnology of today, Richardson Timbersis able to offer wholesale products withunparalleled service and quality.

Size does matter.

Stocking Distributor of Tru-Dry® Fir ProductsTexas • Oklahoma • Louisiana

RICHARDSON TIMBERSSince 1949

toll free (877) 318-5261 phone (214) 358-2314fax (214) 358-2383

www.richardsontimbers.com

PACIFIC WESTERN LUMBER, INC.

Visit our website: www.pacwestlumber.com

• Manufacturers and wholesale distributors.

• Appearance Douglas Fir & Western Red

Cedar beams – green or kiln dried.

• Milled Log Home patterns, profiles and

cants.

• Fabricated timber trusses.

• Timber frame components.

• Lathe turned Douglas Fir/Whitewood/Cedar logs, up to 18”

diameter, 8’ to 85’ lengths.

• Kiln Dried 4x4 Appearance Grade Hem-Fir & Douglas Fir.

• Wood dowels – 2” to 7” diameter.

• Agricultural posts, poles and stakes.

Two locations to serve your Specialty Lumber NeedsMAIN OFFICE: Lakewood, WA800-232-2132 Fax: 253-581-1343

Lake Oswego, OR 800-819-4238 Fax: 503-595-0948

Page 44 The Softwood Forest Products Buyer