FPInnovations Publications

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The following is a list of select research reports, including links to the abstracts. The full reports are available for purchase from FPInnovations for a nominal cost.

1. Gaston, C. and D. Fell. 2012. Architectural Element Trends in North American Non-residential Construction. BC Coastal Forest Sector Hem-Fir Initiative.

2. Lavoie, P. 2012. North American industrial markets for wood products. FPInnovations Record #: E-4733.

3. Robichaud, F. 2012. Builders’ needs in the 20 U.S. homebuilding markets of the Case Shiller Index. FPInnovations Record #: E-4734.

4. Fell, D.R. 2011. Wood and human health. Brochure, FPInnovations Record #: W-2862.

5. Poon, J. 2011. Wood market statistics including pulp and paper in Canada 2011 edition. FPInnovations Record #: W-2906.

6. Poon, J., Bahde, S.W. 2011. Wood market statistics including pulp and paper in Alberta. FPInnovations Record #: W-2907.

7. Poon, J. 2011. Global wood product trade flows : 2011 edition. FPInnovations Record #: W-2908.

8. Gaston, C. and F. Robichaud. 2010. Synthesis Report on Bio-materials. Prepared for the Forest Products Association of Canada Phase II Bio-pathways initiative.

9. Robichaud, F. 2010. Builder perceptions of wood and non-wood products in the U.S. top 20 metro housing areas. FPInnovations Record #: W-2751.

10. Robichaud, F., Lavoie, P., Gaston, C.W. 2010. Demands on lumber suppliers within the US prodealers channel. FPInnovations Record #: W-2769.

11. Fell, D.R., Toosi, B. 2010. Assessing the market opportunity for treated glued wood products. FPInnovations Record #: W-2773.

12. Poon, J. 2010. Wood market statistics in British Columbia 2010 edition. FPInnovations Record #: W-2791.

13. Gaston, C.W., Eastin, I. 2010. A tale of two markets : opportunities for western redcedar and yellow-cedar in Japan and the U.S. Reprint : 1 p. A tale of two cedars – International symposium on western redcedar and yellow-cedar. Gen. Tech. Rep. PNW-GTR-828. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station: http://www.fs.fed.us/pnw/pubs/pnw_gtr828.pdf. FPInnovations Record #: W-2910.

14. Tardif, P., O’Connor, J. 2009. Selling wood products to the green building market : a guide for wood product manufacturers : understanding green programs (LEED and Green Globes) (Version 1.0). FPInnovations Record #: W-2615.

15. Robichaud, F., Lavoie, P., Gaston, C.W. 2009. Market trends in top 20 U.S. metropolitan areas – homebuilders’ profile. FPInnovations Record #: W-2627.

16. Lavoie, P., Robichaud, F., Gaston, C.W. 2009. Market trends in top 20 U.S. metropolitan areas – homeowners’ material preferences in decking, floor and wall applications. FPInnovations Record #: W-2628.

17. Fell, D.R., Lavoie, P. 2009. Opportunities for increased use of wood as a visual material in built environments. FPInnovations Report Record #: W-2672.

18. Gaston, C.W., Hartkamp, R., Hillring, B., Mabee, W., Olsson, O., Skog, K., Spelter, H., Vinterback, J., Wahl, A. 2009. Continued growth expected for wood energy despite turbulence of the economic crisis : wood energy markets, 2008-2009. Reprint : 14 p. UNECE/FAO Forest Products Annual Market Review, 2008-2009, ECE/TIM/SP/24:97-109. FPInnovations Record #: W-2701.

19. Lindenbach-Gibson, R., Poon, J. 2009. Wood market statistics including pulp and paper in Saskatchewan 2009 edition. FPInnovations Record #: W-2733.

20. Eastin, I. 2009. Analysis of the US market for decking materials : exploring the market potential of Pacific silver fir in the US residential market. BC Coastal Forest Sector Hem-Fir Initiative. FPInnovations Record #: W-2828.

21. Wahl, A. 2009. Hemlock/Pacific silver fir in Europe. BC Coastal Forest Sector Hem-Fir Initiative. FPInnovations Record #: W-2833.

22. O’Connor, J. 2008. BC non-residential market assessment 2006. FPInnovations Record #: W-2493.

23. O’Connor, J., Poon, J., Fell, D. 2008. LEED parameters for appearance wood products. FPInnovations Record #: W-2494.

24. Wahl, A. 2008. Wood market trends in Europe. Special publication No. SP-49. FPInnovations Record #: W-2530.

25. Lavoie, P., Robichaud, F., Gaston, C. 2008. Attributes demanded in the North American structural components industry. FPInnovations Record #: W-2535.

26. Lavoie, P. 2008. Research assessment needs: wood substitution by concrete in the US South residential market. FPInnovations Record #: E-4327.

27. Robichaud, F., Kozak, R.A., Richelieu, A. 2008. Wood use in nonresidential construction : a case for communications with architects. FPInnovations Record #: E-4580.

28. Crespell, P., M. Vidal, C. Gaston, and R. Knudson. 2008. Market and Technical Review of the Fibre Polymer Composite Industry.

29. Gaston, C.W., D. Cohen and I. Eastin. 2007. Wood Market Trends in Japan—2006 Edition. Special Publication SP-43.

30. Marinescu, M. 2007. Economics and methods of improved manufacturing integration and flexibility. Integration methods in the forest products industry. FPInnovations Record #: W-2381.

31. Wahl, A. 2007. Opportunities for Canadian wood products in appearance applications in Europe : Final Report 2006/07. FPInnovations Record #: W-2387.

32. Karwandy, J. 2007. Saskatchewan homebuilders perspectives on the potential for greater market penetration of prefabricated wall systems. FPInnovations Record #: W-2429.

33. Fell, D., Tokarczyk, J., Hansen, E. 2007. User innovation and modification of wood-based construction materials. FPInnovations Record #: W-2444.

34. Robichaud, F. 2007. The role of communications in the forest products industry. FPInnovations Record #: E-4250.

35. Lavoie, P.J.P., Laytner, F. 2007. Roadmap for the manufactured building systems’ industry : the future of the wood construction industry in Canada. FPInnovations Record #: E-4255.

36. Lindenbach-Gibson, R., Fell, D., Marinescu, M., Rice, J. 2006. Alberta facts on wood series fact sheets for Balsam fir, Balsam poplar, Black spruce, Jack pine, Lodgepole pine, Tamarack, Trembling aspen, White birch, and White spruce. Pamphlet. FPInnovations Record #: W-2189B.

37. Lavoie, P.J.P., Lindenbach-Gibson, R. 2006. Market challenges for the acceptance of prefabricated building systems. FPInnovations Record #: W-2268.

38. Gaston, C., Marinescu, M. 2006. The competitiveness of Canadian softwood lumber: a trade flow analysis. FPInnovations Record #: W-2270.

39. Gaston, C., Fell, D. 2006. Treated wood product opportunities in the Southern United States. FPInnovations Record #: W-2271.

40. O’Connor, J. 2006. Market outreach : disaster-relief housing in Indonesia. FPInnovations Record #: W-2313.

41. Wahl, A. 2006. Identify viable non-commodity softwood lumber product diversification opportunities available to Alberta producers. FPInnovations Record #: W-2341.

42. O’Connor, J. 2006. Ontario 2005 non-residential construction market assessment. FPInnovations Record #: W-2411.

43. Gaston, C. 2006. “U.S. gap analysis II” revisits a large number of past builder and homeowner surveys. 2 p. (Technote ; 06-02W) Record #: TN581.

44. Gaston. C.W. and J. Karwandy. 2006. Assessment of Product Opportunities for Aspen from the Weyerhaeuser, Prince Albert FMA. Prepared for the Saskatchewan Premier’s Task Force.

45. Wahl, A. 2005. Opportunities for Canadian wood products in appearance applications in Europe. FPInnovations Record #: W-2144.

46. Gaston, C., Goudie, D., Lindenbach-Gibson, R. 2005. Opportunities and strategies to enhance utilization of Canadian trembling aspen. FPInnovations Record #: W-2187.

47. Fiedler, M., Wahl, A., Lindenbach-Gibson, R. 2005. Door and window stock manufacturing opportunities for commercial softwood species in Alberta. FPInnovations Record #: W-2188.

48. Lindenbach-Gibson, R., Fell, D., Marinescu, M., Rice, J. 2005. Alberta species development for value-added applications. FPInnovationsRecord #: W-2189.

49. O’Connor, J. 2005. Alberta non-residential construction market assessment. FPInnovations Record #: W-2312.

50. Robichaud, F., Lavoie, P., Gaston, C. 2005. Wood opportunities for manufactured housing and structural components. Special Publication. FPInnovations Record #: W-2322.

51. Wahl, A. 2004. China’s non-structural panel market in furniture and interior finish. FPInnovations Record #: W-2048.

52. Thomas, J., Fell, D., Hansen, E. 2004. Consumer preferences for decking products : North America FPInnovations Record #: W-2067.

53. Vlosky, R., Gaston, C. 2004. Potential for increased treated wood products usage in U.S. south residential construction. FPInnovations Record #: W-2068.

54. Fell, D. 2004. Assessing preferences for wood characteristics in visual applications. FPInnovations Record #: W-2069.

55. O’Connor, J., Fell, D., Kozak. R. 2004. Potential for increased wood-use in N.A. [North American] non-residential markets – Part II. FPInnovations Record #: W-2076.

56. Wagner, E., Fell, D., Hansen, E., Gaston, C. 2004. Forest product resources on the internet. FPInnovations Record #: W-2077.

57. Tabarsi, E. 2004. An analysis of the North American home siding market. FPInnovations Record #: W-2089.

58. Wahl, A. 2004. Opportunities for lumber in China’s interior finish and furniture industries. FPInnovations Record #: W-2098.

59. Wahl, A. 2004. Benchmarking wood use in roofs of multi-family housing in China. FPInnovations Record #: W-2099.

60. Robichaud, F., Lefaix-Durand, A. 2004. Assessment of large builders market strategies. FPInnovations Record #: E-3853.

61. Fell, D., Lindenbach-Gibson, R. 2003. Furniture and interior finish opportunities for select underutilized wood species – Saskatchewan and British Columbia. Part 1. FPInnovations Record #: W-1943.

62. Gaston, C., Maplesden, F. 2003. A benchmarking study for structural wood products demand in the People’s Republic of China. FPInnovations Record #: W-1944.

63. O’Connor, J., Kozak, R., Gaston, C., Fell, D. 2003. Wood opportunities in non-residential buildings : a roadmap for the wood products industry. Special Publication SP-46, FPInnovations Record #: W-1956.

64. Fell, D., Tabarsi, E. 2003. Professional repair and remodelling markets for wood products. FPInnovations Record #: W-1958.

65. Fell, D., Lindenbach-Gibson, R. 2003. The North American value-added components industry : overview and market opportunities. FPInnovations Record #: W-1959.

66. Lindenbach-Gibson, R., Robichaud, F. 2003. Saskatchewan’s forest and wood products industry : sector profile and market identification. FPInnovations Record #: W-1967.

67. Wahl, A., Gaston, C. 2003. Preliminary competitor analysis for wood products in China. FPInnovations Record #: W-2014.

68. Robichaud, F. 2003. Homebuilder perceptions of interior wall framing materials. FPInnovations Record #: E-3774.

69. Gaston, C. 2002. Emerging international markets for treated wood. FPInnovations Record #: W-1829.

70. Fell, D. 2002. Consumer visual evaluation of Canadian wood species. FPInnovations Record #: W-1859.

71. Tabarsi, E. 2002. Suitability of oriented strand board for upholstered furniture : market analysis. FPInnovations Record #: W-1861.

72. Fell, D., Robichaud, F. 2002. Attributes demanded in single-family walls. FPInnovations Record #: W-1862.

73. Gaston, C. 2002. Maintenance of market information databases. Report : 138p. (Canadian Forest Service No. 21) 2713 Record #: W-1867.

74. Gaston, C. 2002. An assessment of market opportunities for western Canadian aspen in the United States, Japan and Europe. FPInnovations Record #: W-1896.

75. Gaston, C., McKeever, D.B., Tabarsi, E. 2002. Wood use in industrial markets in the United States – 2000.] FPInnovations Record #: W-1901.

76. Fell, D., Hansen, E.N., Punches, J. 2002. Segmenting single-family home builders on a measure of innovativeness. FPInnovations Record #: W-1936.

77. Robichaud, F., Fell, D. 2002. Prefabricated walls and roof trusses in U.S. residential markets. FPInnovations Record #: E-3705.

78. Fell, D., Gaston, C. 2001. Do-it-yourself markets in western Canada. FPInnovations Record #: W-1734.

79. Fell, D., Gaston, C., Hansen, E., Hovgaard, A. 2001. Attributes demanded in single-family floor systems. FPInnovations Record #: W-1735.

80. Gaston, C., Kozak. R., O’Connor, J., Fell, D. 2001. Potential for increased wood-use in N.A. [North American] non-residential markets. FPInnovations Record #: W-1736.

81. Fell, D., Gaston, C. 2001. Material selection for outdoor projects in western Canada. FPInnovations Record #: W-1737.

82. Gaston, C., Kozak, R. 2001. Sawn softwood – consumption, production and trade. Reprint : 16 p. ECE/FAO Forest Products Annual Market Review, 2000-2001 : Chapter 6. FPInnovations Record #: W-1831.

83. Gaston, C., Fell, D. 2000. Markets for Canadian wood products in the U.S. : a gap analysis. FPInnovations Record #: W-1656.

84. Gaston, C. 2000. Future markets for treated wood. Canadian Wood Preservation Association, Twentieth Annual Meeting, Vancouver, B.C., October 25-26, 1999. Proceedings : 79-98. FPInnovations Record #: W-1695.

85. Gaston, C. 1999. Japan’s value added market : wood product attributes and competition. FPInnovations Record #: W-1602.

86. Gaston, C. 1998. The Canadian treated wood products industry : prospects for growth. Canadian Wood Preservation Association, Eighteenth Annual General Meeting, Vancouver, B.C., November 3-4, 1997. Proceedings, 131-145. Record #: W-1491.

87. Cartwright, D., Morris, P.I., Gaston, C. 1998. Markets for termite-resistant wood products. Phase II. Market review of India, China and Taiwan. FPInnovations Record #: W-1500.

88. Gaston, C., Lum, C. 1997. North American and Japan market access : model development and application. FPInnovations Record #: W-1412.

89. Wayne B. Trusty & Associates Limited. 1995. Building materials in the context of sustainable development : phase III summary report, the life cycle analysis framework, additional unit factors and related impact studies. FPInnovations Record #: W-1246.

1. Gaston, C. and D. Fell. 2012. Architectural Element Trends in North American Non-residential Construction. BC Coastal Forest Sector Hem-Fir Initiative.

This report presents the results of web survey that was completed by 250 architects in North America that specialize in non-residential building design. Over a third of the respondents were chosen because they have utilized architectural elements in their designs. Architectural elements are defined here as solid wood heavy timbers, glue-laminated and other engineered beams or posts, which are visually exposed. These members can be structural or non-structural.

Results showed that these visual wood products are used in virtually all types on non-residential buildings, and are growing in popularity. This coincides with an overall growth in popularity for wood interior finish in these buildings. It was also found that there is a link between the two in terms of a desire to match species, color and character. For BC Coastal species, the popularity of Douglas fir was confirmed, and opportunities for Hemlock and Amabilis fir were explored. This included the fact that these species lend themselves to stain, and have desirable strength characteristics. For the latter, if was discovered that there may be an opportunity for developing and promoting timber strength ratings, much like what is presently done for Japan.

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2. Lavoie, P. 2012. North American industrial markets for wood products. FPInnovations Record #: E-4733.

Industrial markets were investigated due to their relatively high importance for the wood products sectors. In 2009, it was estimated that about a third (33%) of all lumber use went to markets other than construction. The information collected in this project allowed estimating consumption volumes for the five (5) sectors studied.

In addition to gaining a better understanding of volumes and products used, the project focused on trying to identify unmet user needs or product issues influencing satisfaction with wood products. This kind of information could result in opportunities to substitute products currently used or develop new markets for wood products currently used. Clear cut opportunities specific to each sectors were difficult to identify. It is apparent that wood product users are yearning for straighter products and products displaying fewer defects like wane, knots, etc. This could point towards potential markets for finger jointed and engineered products. The demands for more products that are more visually appealing is somewhat surprising since these are not typically associated with industrial applications. The information comprised within this report will serve as the basis to explore future business opportunities for wood products in specific business cases.

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3. Robichaud, F. 2012. Builders’ needs in the 20 U.S. homebuilding markets of the Case Shiller Index. FPInnovations Record #: E-4734.

This project relied upon a survey of 562 homebuilders in the 20 U.S. metro areas of the Case Shiller Index; Objectives were to uncover homebuilders’ needs in insulation materials, wall sheathing, studs, floor joists, roof systems, and prefabricated walls. Other objectives were to monitor the substitution of wood products at the metro level; In insulation products, most important builders’ needs are improving R value and improving water tightness of the envelope; in wall sheathing, the most important need is to improve the water tightness of the envelope; For studs, the most important needs are to increase straightness and to decrease both lumber sorting and rejection on site; for floor joists, the most important needs are to improve the product to reduce floor squeaks and to improve the product to ease the installation of ducts, plumbing and wires; In roof systems, the most important need is to improve products to make attic space available; In prefabricated walls, the most important needs are to reduce the time delay between order and delivery, and to ease the process of making plans changes when using prefab walls; 24% of respondents feel that the use of concrete as a primary structural floor material will increase greatly or somewhat. 56% think that the product to be used is poured concrete over steel deck, 44% think it will be precast/prestress panels; 20% of respondents feel that the use of concrete as a primary structural wall material will increase greatly or somewhat. Poured (formwork) is the most often foreseen technology (50%) followed by blocks (masonry) at 27% and precast or prestressed panels at 23%; Statistically, the expected future use of concrete has not changed overall between 2008 and 2011;

In wall systems, untreated wood products have gained much market share between 2008 (69%) and 2011 (88%). This was especially done at the expense of pressure treated wood products and concrete blocks; In floor systems, untreated wood products have gained significant market share between 2008 (65%) and 2011 (80%). This gain was done at the expense of pressure treated products especially; the use of OSB as a floor sheathing material has almost remained unchanged between 2008 (46% market share) and 2011 (47%). The market share for plywood in floor sheathing has shrunk from 29 to 26% over that period, while treated products (OSB or Plywood) have increased their share from 17% to 21%; in wall sheathing, OSB has lost a few points in market share, from 57% to 55% between 2008 and 2011. Plywood, too, had a lost, from 18% to 16%. Products who have experienced small percentages of increase, albeit coming from a lower base in the market, are preservative/mold treated OSB, Radiant Barrier OSB, and Foam sheathing; and, in decking materials, the rapid rise of market share for composite decking appeared to come to a halt. Between 2008 and 2011, the market share for this product category has been stable at some 29%. Meanwhile, the market share for both treated and untreated wood products has increased.

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4. Fell, D.R. 2011. Wood and human health. Brochure, FPInnovations Record #: W-2862.

A recent study at the University of British Columbia and FPInnovations has established a link between wood and human health. In the study the presence of visual wood surfaces in a room lowered sympathetic nervous system (SNS) activation. The SNS is responsible for physiological stress responses in humans. This result opens the door to a myriad of stress-related health benefits that the presence of wood may afford in the built environment. The application of wood to promote health indoors is a new tool for practitioners of evidence-based design.

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5. Poon, J. 2011. Wood market statistics including pulp and paper in Canada 2011 edition. FPInnovations Record #: W-2906.

The intent of Wood Market Statistics (WMS) is to provide the readers with quick and relevant statistics on Canada’s forests and the forest industry. Information and topics covered in this document include, but are not limited to, growing stock, timber supply, production and export shipments of various major forest products, as well as employment and the industry’s contribution to the nation’s economy. From the Canada edition, three provincial WMS publications were produced: WMS-British Columbia, WMS-Alberta and WMS-Saskatchewan with other provinces to follow.

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6. Poon, J., Bahde, S.W. 2011. Wood market statistics including pulp and paper in Alberta. FPInnovations Record #: W-2907.

The British Columbia Forest Industry Fact Book was last issued by the Council of Forest Industries (COFI) in 2000. The COFI Fact Book, as it was commonly known, presented and summarized frequently requested information specific to the forest sector, mainly focusing on British Columbia, as well as some highlights and key findings on Canada and the rest of the world. Based on the COFI Fact Book, the Markets & Economics Group at FPInnovations has created a new publication – Wood Market Statistics Including Pulp & Paper (WMS). Similar to COFI’s Fact Book, WMS will be updated and made available on an annual basis. In addition to Alberta, WMS has been made available for Canada, British Columbia, and Saskatchewan.

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7. Poon, J. 2011. Global wood product trade flows : 2011 edition. FPInnovations Record #: W-2908.

Trends and new market opportunities data is presented for lumber by species; various panel products, including oriented strand board, hardwood and softwood plywood; particleboard and medium density fibreboard; continuously shaped wood products such as flooring, moulding, siding and millwork; builders’ joinery such as windows, doors, post & beams, and glulam; as well as wooden furniture. The trade data is collected in monetary terms as well as in volume and unit prices, when available. It is then presented in the form of graphic illustrations, coupled with detailed descriptions, including comprehensive data tables.

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8. Gaston, C. and F. Robichaud. 2010. Synthesis Report on Bio-materials. Prepared for the Forest Products Association of Canada Phase II Bio-pathways initiative.

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9. Robichaud, F. 2010. Builder perceptions of wood and non-wood products in the U.S. top 20 metro housing areas. FPInnovations Record #: W-2751.

This project looks at the preferences for structural wood products within the top 20 residential homebuilding markets in the United States. A first objective was to document the attributes demanded by homebuilders in structural floors, walls and decking applications. The project further characterizes the performance of wood, steel, and concrete on these demanded attributes. The study was completed into two subsequent steps. The first step was a quantitative survey of an average of 50 builders per market in the Top 20 markets. The second step included focus groups with homebuilders in four of these markets: Philadelphia, Chicago, Phoenix, and Denver.

Results show that wood products continue to be under pressure from the growth of concrete in wall and floor systems. While the basis for growth in the use of concrete was traditionally found in the U.S. South, this survey points out that western and northern cities of the United States may become susceptible to the growth of concrete slab floors. The intended future use of concrete in walls was also high in some Northern jurisdictions such as New-York, Minneapolis, Washington, and Philadelphia, indicating a possible spread of concrete use in walls in some markets which traditionally relied on wood. However, the discussions with builders in Chicago and Philadelphia tempered this threat, as most of participants to the focus groups were much relying on wood for their projects. Nevertheless, the survey shows that, according to homebuilders, concrete significantly outperforms wood on durability, strength/structural integrity, and acoustic performance. Two of these attributes (durability and strength/structural integrity) are among the Top 3 important attributes in both floor and wall applications. With that said, it is important to point out that wood obtains a high score on the performance scale for both these attributes, despite the difference with concrete. These attributes may guide the development of future wood based products and building systems. On code acceptance, wood also scores high on the performance scale, and is at least equal with concrete.

Wood based sheathing (OSB, Plywood and Fiberboard) detain over 85% of the market in 17 of the 20 metro areas. However, foam and kraftboard sheathing have gained some importance in selected markets. In Chicago, the market share of foam and kraftboard together even reaches 24%. When comparing the performance of wood-based sheathing with foam-based sheathing, plywood and OSB are significantly thought superior to foam for strength, structural integrity, resistance to jobsite damage, environmental friendliness, and code acceptance. Foam is said to perform better than OSB or Plywood for both acoustics and energy performance. As a result, acoustics and energy performance in sheathing applications prove to be valuable paths for product development. This was confirmed in focus groups sessions.

Most generally, builders interviewed for the discussion sessions expressed the need for new products addressing their concerns. In focus group sessions, labour issues came out as one of these concerns (except in Chicago). Especially, the current housing downturn has forced many trades out of the homebuilding sector, and most builders met fear that there will be a severe shortage of qualified labour once the housing market rebounds. Other issues that builders actively pursue include a combination of insulation and structural properties for sheathing (confirmed by the quantitative research), low maintenance and low call-back products, and ease of installation. From the discussion sessions, there is also room for new insulation products.

Composite decking has captured at least 20% market share in 12 of 20 of the metro areas. The highest market shares are found in Denver (71%), Washington (50%), Seattle (45%), and Philadelphia (40%). Clearly, composite decking now offers the greatest competition to wood in decks. This is shown by the satisfaction measures of decking materials which are greater for tropical hardwood and composite/plastic lumber than for wood, treated or not. Composite materials seemingly suit better the most demanded attributes, including durability, appearance, and longevity. The importance of low maintenance was further confirmed through the focus groups.

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10. Robichaud, F., Lavoie, P., Gaston, C.W. 2010. Demands on lumber suppliers within the US prodealers channel. FPInnovations Record #: W-2769.

Prodealers are building materials suppliers whose client base comes mostly from the homebuilding industry. Because they represent an important channel for wood products, a 2007 survey of US prodealers examined (1) lumber attributes demanded, (2) products and suppliers requirements, (3) trends in substitution between countries supplying lumber to the United States, and (4) trends toward prefabrication of structural components. Forty-six prodealers were surveyed; most answered for multiple stores. On average, respondents purchased 60 million board feet of lumber in 2007, and their overall consumption was estimated at 2.76 billion board feet. By far, the most common grade in the prodealer segment is dimension lumber (No. 2 and better) and the most common type is the spruce-pine-fir species group (SPF). Within the sample, 5 percent of US lumber imports came from offshore. Canada supplied 51 percent of the lumber purchased by respondents, and the United States supplied 47 percent. Wane as well as warp and twist were consistently identified as the most challenging lumber attributes for prodealers. Product quality was identified as a primary reason for changing lumber suppliers. In characterizing properties of the dimension lumber imported from Europe to the United States, it was found that European lumber stands out mostly for visual appearance and low wane. For customer support and timely deliveries, respondents tended to favor US mills. The study suggests that customers are not fully satisfied with lumber, expecially with regard to wane and straightness, and that lumber quality issues may be more important today than in the past.

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11. Fell, D.R., Toosi, B. 2010. Assessing the market opportunity for treated glued wood products. FPInnovations Record #: W-2773.

In this study market opportunities for treated glue-laminated (glulam) products were investigated in the industrial wood sector. The main benefits of treated glulam are through-product treatment and the ability to manufacture treated products in shapes and sizes that do not fit into common treating chambers. These attributes provide for very durable and large glulam structures that are appropriate for outdoor use. For these reasons bridges, power poles, and sound abatement barriers were investigated. These are markets where wood has lost market share to or is being challenged by concrete and steel substitutes.

The vehicular bridge market was once heavy to the use of wood. Today wood accounts for only 7% of the number bridges in the US and less than 0.9% of the actual surface area of bridges in place. In interviewing municipalities in Canada it is clear that wood is not the preferred material with many wood bridges being replaced by concrete. Further, none of the municipalities contacted were planning wood bridges. However, wood bridges are still being installed. In the US 0.9% of the bridges installed by area in 2007 were wood. This is good news as wood is holding its market share. Steering clear of high volume or large bridges, local bridges are well suited for wood as they are plentiful, small in scale, and many are in disrepair. If 20% of local bridges were built with wood in Canada this would have equalled approximately $51 million in wood bridge construction in 2007.

Municipalities are much more open to the use of wood for pedestrian bridges and overpasses. Their quick construction and aesthetics are positive attributes in this application. One municipality contacted is planning multiple wood pedestrian bridges in the next five years. However, for the purpose of this market review there is little published information on pedestrian bridges.

Noise abatement barriers are a good high-volume technical fit for treated glulam. Increases in traffic and current road infrastructure improvements will lead to more demand for sound abatement in the future. This market is dominated by concrete, but at a very high price. If treated glulam can give adequate durability and sound performance properties it would be approximately 20% cheaper than concrete. The market for sound barriers in Canada could utilize up to 10 mmbf of wood per year to construct 80 km of barrier. This product can also be marketed as a high-performance acoustic fence for residential markets.

Treated glulam was also considered for utility poles. It is transmission grade poles where glulam would best fit the market as the demand is for longer poles which are more difficult to get in solid wood. This type of pole is where wood is currently being displaced by tubular steel. If glulam poles were used in 25% of the replacement transmission poles per year this could equal 8 mmbf. Light poles or standards are another market to consider. While this is a relatively low volume market glulam light standards are a premium product in European markets.

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12. Poon, J. 2010. Wood market statistics in British Columbia 2010 edition. FPInnovations Record #: W-2791.

Based on the COFI Fact Book, the Markets & Economics Group at FPInnovations has created a new publication – Wood Market Statistics Including Pulp and Paper (WMS). Similar to COFI’s Fact Book, WMS will be updated and made available on an annual basis. In addition to BC, WMS has been produced for Canada, Alberta and Saskatchewan.

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This presentation begins with an overview of the wood properties and markets for western redcedar and yellow-cedar. The specific attributes and properties of these two cedars will be covered from a supply, demand and competition perspective. Topics covered will include: BC/PNW production, shipments, international trade, end-uses, and market shares. This will provide a statistical overview of the opportunities for marketing these species. Our presentation will then focus in on two specific market opportunities.

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Manufacturers are increasingly asked by their customers to supply “green” products for use in “green” or “sustainable” building. This trend is driven by many issues we see or hear about in the media daily – for example, concerns over resource depletion, greenhouse gas emissions and global warming, waste generation and occupant health.

In recent years, the construction sector in particular has been identified as being a significant energy and materials consumer, as well as a significant source of greenhouse gas emissions. Various levels of government have targeted the sector as one that needs to improve its performance to meet “sustainable living” objectives. As well, customers have become more environmentally conscious. The entire construction sector is under pressure to become more “green.”

This guide has been written to help wood product manufacturers start or enhance a “greening process” that can enable them to meet the new market demand for environmental responsibility. The guide: explains what “green” means as it applies to construction products and building; explains how the two major green design programs, Leadership in Energy and Environmental Design (LEED) and Green GlobesTM, work; outlines what factors to consider in making a decision to “go green”; provides step-by-step instructions for how to align wood products with LEED and Green Globes; and suggests options for how to get green products recognized in the marketplace.

This guide focuses on the Canadian versions of LEED and Green Globes for non-residential or multifamily buildings. Guidance provided here is specific to those applications, however, general principles discussed here also apply to the US versions of these programs and to programs addressing smaller residential projects such as single-family homes and townhouses.

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15. Robichaud, F., Lavoie, P., Gaston, C.W. 2009. Market trends in top 20 U.S. metropolitan areas – homebuilders’ profile. FPInnovations Record #: W-2627.

This project looks at consumption patterns for structural wood products within the Top 20 residential homebuilding markets in North America. A first objective was to document the use of wood, steel, and concrete materials in structural floors, walls and decking applications. In all these applications, the most important attributes required by homebuilders were outlined and ranked. The project further allows characterizing the performance of wood, steel, and concrete on these demanded attributes.

Results show that wood products continue to be under pressure from the growth of concrete slab floors. While the basis for growth in the use of concrete slabs was traditionally found in the U.S. South, this survey points out that western and northern cities may be also susceptible to the growth of concrete slab floors. According to homebuilders, concrete significantly outperforms wood on durability, strength/structural integrity, and acoustic performance. Two of these attributes (durability and strength/structural integrity) are among the Top 3 important attributes in floor applications.

The use of concrete in structural walls, either poured or concrete blocks, is well over 65% in Tampa, Orlando, and Miami. Concrete use in walls also reached a market share ranging between 20% and 30% in New-York, Minneapolis, Washington, and Philadelphia, indicating a possible spread of concrete use in walls in some markets which traditionally relied on wood. The market share for wood in walls remains very strong especially in Dallas, Austin, and Houston. Concrete significantly outperforms wood on durability, strength/structural integrity, and acoustic performance. Two of these attributes (durability and strength/structural integrity) are among the Top 3 most important attributes in walls. For wood to remain a competitive alternative in walls and floors, these attributes should be guiding the development of future wood based products and building systems.

Wood based sheathing (OSB, Plywood and Fiberboard) retains over 85% of the market in 17 of the 20 metro areas. However, foam and kraftboard sheathing (alone or in combination) have a market share of 10% or more in 6 areas: Detroit, Houston, Austin, Dallas, Phoenix, and Chicago. In Chicago, the market share of foam and kraftboard together even reaches 24%. When comparing the performance of wood based sheathing with foam based sheathing, plywood and OSB are significantly thought superior to foam for strength, structural integrity, resistance to jobsite damage, environmental friendliness, and code acceptance. Foam is said to perform better than OSB or Plywood for both acoustics and energy performance. As a result, acoustics and energy performance in sheathing applications prove to be valuable paths for product development.

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Past market studies (Lavoie, 2008; Fell et al., 2006; Robichaud, 2003; Eastin et al., 2001) have shown that wood is increasingly threatened by replacement materials such as concrete, wood plastic composites and steel. It is within this context that this project sought to estimate market shares and explain material preferences of homeowners in decking, floor and wall applications. Issues of environmental performance of materials as well as influence of communication media were also addressed. Fifty (50) respondents from the top 20 metropolitan construction areas were surveyed yielding a total of one thousand respondents. The originality of this project largely lies in the fact that results can be analyzed at small-scale as opposed to the four region approach most construction data employs.

A significant proportion of North American homes (40%) have decks. Most of them are built using treated lumber (55%). Wood plastic composites, the key threat to wood products, have yet to capture 10% of the market. Yet, based on homeowners’ preferences for next deck surfacing products, wood plastic composites are in position to increase their market shares to 38%. Some cities, such as Washington, Philadelphia, Las Vegas and Denver, have anticipated market shares equal or above the 50% mark. Consequently, wood plastic products are in a position to gain ground (over treated lumber and other non-treated wood alternatives) in decks. Strength/structural integrity and durability/low maintenance are two attributes on which they perform well. Incidentally, these two attributes are also those that homeowners look for the most in decking products.

Wood floors (over basements or crawl spaces) represent the majority of floors (51%) currently built in the US. Current concrete (mainly slabs) market share stands at 37%. Attributes most sought by homeowners are strength/structural integrity, durability/low maintenance as well as lower energy bills. Despite the fact that perceptions of durability and strength remain challenges for wood floors, it appears they will acquire 10% market shares in future floors built in the US. Key assets of wood products include lower energy bills, ability to make repairs, warmth in winter and comfortable to walk/sit on. It is possible that affordability issues will stimulate the expansion of wood products in floors. This may be an indication that there are region/climate specific opportunities for wood products. Yet, it is likely that concrete floors will maintain or increase their shares in most markets of the South region (where they are mostly built) based on homebuilders’ influence on material selection.

Market shares for wood products in wall applications suggested that homeowners were generally uninterested by wall material selection. This manifested itself in potential added shares for alternative techniques such as insulated concrete forms and structural insulated panels.

One of the key outcomes of this project consists in the data collected on perceptions of environmental merit of building materials. In short:

· Wood’s environmental assets (green, renewable, recyclable, etc.) continue to be shadowed by concerns of regeneration/scarcity of the material.
Steel is seen as being equally recyclable as wood. It is seen as a durable material.
· Concrete is viewed as the best material to ensure low energy costs. This is an attribute homeowners currently rate very highly.
· The impact of materials on greenhouse gas emissions is not a salient/tangible concept in the minds of homeowners. It is likely to gain in importance as green building standards and knowledge of environmental impact of product on a lifecycle basis develops.
· Energy efficiency/costs issues (more than any other environmental issue) are important for homeowners. Following structural issues (durability and strength), homeowners are giving significant consideration to energy efficiency. It is the most important complaint homeowners have about their current house. Unfortunately, wood is supplanted by concrete on the energy issue in floor applications.

Respondents were asked to identify the information sources that influence them the most in their material selection decisions. The top five communication media identified are (in order) physical examples, neighbours/friends/relatives, home center staff, TV shows/DIY network and internet/websites. The results suggest complementary promotion and communication strategies should be evaluated by the wood products industry.

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17. Fell, D.R., Lavoie, P. 2009. Opportunities for increased use of wood as a visual material in built environments. FPInnovations Report Record #: W-2672.

Canadians spend 88% of their time in indoor environments. With such high exposure to buildings it is important to understand what type of environment they are surrounded by. This study took an initial step to create an inventory of materials used in different types of buildings. Not only does this study look at what materials are used in buildings, it also studied how occupants see their surrounds with respect to an inventory of environmental descriptors. Finally, respondents in this study were asked if they would like to see more or less of a series of materials used for each building types. The goal of this study is to provide a baseline for which to set priorities with respect to targeting further visual wood use in buildings.

This report contains a literature review on buildings and their users. Building inventory and construction data is contained within this report for homes, offices, hotels, hospitals, schools, libraries, and recreational facilities. It also looks at the annual users and intensity of usage of each type of building. This provides a baseline for which to evaluate the human benefit of using more wood in various environments.

Two surveys were executed to collect primary data for this study. A study of the general Canadian population over 25 years old looked at the use of materials in their home environments. There were 545 respondents to this survey. The second survey had the same population parameters but looked at the use and experience in non-residential buildings. There were 646 respondents to the non-residential survey.

Highlights and results by building type are below:

Homes:

There are 32.5 million regular users of home environments. Half of the average Canadian’s waking time is spent in their home. In general, the materials used in the home matched the materials desired in homes and in other types of structures. These priority materials are wood, glass, and plants. The reason that home materials match the desired materials is that 67% of Canadians are homeowners and they can remodel their home environment to their own desires. This is a high priority sector because of the volume of inventory (close to 13 million homes) and the intensity of remodelling and new starts.

Offices:

Offices have some 4-6 million regular users in Canada. There are 410 million square feet of commercial office space in the country. Wood is used in offices but not intensely. Material use is actually quite spread out. However, respondents would like to see more wood and plants in their office environments to make them more agreeable. Offices are generally perceived to be clean but not particularly warm, healthy, or productive. This is a priority sector as commercial spaces turn over often and are remodelled and new furniture and fixtures are added. In 2007 there were over $5 billion in permits issued for construction and remodelling to office buildings, not including the fixtures and furniture.

Hotels:

Hotels are a medium to high priority for further wood use. There are only 376 thousand regular users of hotels (workers) but there are 84 million overnight stays per year in the country. When people do stay at hotels they are foregoing their comfortable home environment. Hotels can recreate this with the appropriate use of materials. While there was a moderate amount of wood used in hotels it was clear from the study that more wood, glass, and plants are desired. The top descriptor for hotels was clean, but relaxing and warm were also common. Hotels were not seen as natural, healthy, or productive.

Hospitals:

Hospitals are a low to medium priority for further wood use. While respondents would like to see more natural materials in hospitals this must be tempered with the intense durability and cleaning demands of a hospital setting. Hospitals are high stress environments. However, respondents disagreed that hospitals felt healthy or natural. The only statement they agreed with was that hospitals are clean. Respondents desire less concrete, metal and plastic and more wood, glass and plants. Durability must be a key consideration for further wood use. This could involve hardening and coatings. Alternatively, wood could be selectively applied to ceilings where durability is not an issue and patients are often forced to stare from their bed.

Schools:

Schools are a moderate priority for further wood use. Like hotels the need for a positive indoor environment must be tempered with the need for durability. Schools and colleges are heavily used with close to 7 million regular users (teachers, staff, and students). This puts school use on par with office use in Canada. Respondents reported concrete, plastics, and glass were the most commonly seen materials in schools. Of these they wanted to less concrete and plastics and more natural materials. Design for durability is needed to add more natural elements to schools.

Libraries:

There are approximately 2700 non-school libraries in Canada. Libraries faired well with respect to the match between actual and desired material usage. More natural materials are desired but respondent were moderately happy with library attributes.

Recreation facilities:

Pools and arenas are heavy users of concrete and metal. There are approximately 2500 ice rinks and 1200 public swimming pools in Canada. Interestingly half of this infrastructure was built in the 1970’s and is therefore due for replacement and renovation. These buildings have had infrastructure money directed at them as part of the 2009 economic stimulus package. While more natural materials are desired these demands of these structures mean that mixed material solutions are the most likely.

Strategies for more visual wood use:

There is a desire for more wood use in many non-residential buildings. One of the key issues is the heavy use of these buildings makes wood surfaces more susceptible to wear and tear. The key to more visual wood use in non-residential construction is to focus on its strategic application rather than applying what we do in residential construction. Momentum is beginning to build in the structural / visual application of wood. These applications are often in roof systems where wood performs well structurally and is not subject to user wear and tear.

Three strategies for further visual wood use are:

1. Up and away – visual wood applied where user wear and tear is reduced,

2. High performance surfaces – hardening and finishing to reduce wear and tear and to aid in cleaning,

3. The mixed material toolbox – apply wood in combination with other materials considered natural or preferred. These are plants, glass and stone.

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Highlights:

The economic crisis has not reduced the demand for wood energy, which is expected to continue to grow.

The downturn in sawmill production caused a shortage of raw material supply for wood pellet producers.

With decreased demand for pulpwood-quality roundwood for wood and paper products in 2009, some pulpwood is being converted into wood energy.

Economies of scale are being increasingly utilized in both production and logistics to further expand the market volume.

The pellet production level in Russia is gradually rising again, after stagnation in 2008.

An ambitious policy of the Russian Government on the use of renewable energy sources is contributing to the development of the domestic wood biomass market.

North American wood pellet production is increasing swiftly and is primarily focusing on the European market.

Canada continues to be the world’s largest wood pellet exporter, shipping large amounts to power stations primarily in western Europe, but also in Japan.

A proposed phase-out of electricity generation from coal in Ontario, Canada, is expected to increase domestic demand for biomass as power stations are converted from coal to biomass.

While the energy debate highlights electricity and transportation fuels, space and water heating make up perhaps the majority of energy demand in the UNECE region.

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19. Lindenbach-Gibson, R., Poon, J. 2009. Wood market statistics including pulp and paper in Saskatchewan 2009 edition. FPInnovations Record #: W-2733.

Based on the COFI Fact Book, the Markets & Economics Group at FPInnovations has created a new publication – Wood Market Statistics Including Pulp & Paper (WMS). Similar to COFI’s Fact Book, WMS will be updated and made available on an annual basis. In addition to Alberta, WMS has been made available for Canada, British Columbia, and Alberta.

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The demand for decking and fencing materials is driven by several factors, including the macroeconomic environment, demographics, construction expenditures, and the repair and remodel sector. In addition, competition within the decking and fencing markets has recently been significantly altered by regulatory constraints on the forest products industry that have restricted harvest levels, by increasing imports of softwood lumber and by expanding competition from non-wood substitute materials. These last two factors are likely to have the greatest impact on the specification and use of decking and fencing materials in the mid to long term as the markets adjust to the changing regulatory environment and changing consumer perceptions and preferences. This report will explore the extant literature related to the demand for decking and fencing materials in the residential, non-residential, public and non-building segments of the construction industry.

The demand for decking products is projected to increase from 4.7 billion board feet (bbf) in 2000 to 5.6 bbf in 2010, a 19.3% increase over the ten year period. This market expansion will not be distributed evenly across the three major types of deck materials, however. Whereas wood-plastic composite decking (WPC) is expected to increase by an astronomical 491% and plastic decking by a healthy 152%, the demand for wood decking is expected to decline by 8.5%. Further, the demand for redwood is projected to decline by over 15% between 2000-2010, although the decline in the demand for redwood lumber is attributed to supply constraints rather than declining demand. These demand outlooks are driven by two fundamental end-user attributes: durability (long-deck life) and low maintenance. Very little consideration was paid to price and price sensitivity of either new home builders or home owners. As a result, these demand estimates are more heavily weighted towards the higher priced substitute materials than the actual market situation might otherwise justify, particularly in the 2005-2010 period.

The primary construction application for decking is repair and remodel (approximately 86%) followed by new home construction (approximately 14%). While the demand for decking products in new construction is expected to experience strong growth between 2000 and 2010, the sheer size of the repair and remodel market make it a much more attractive market segment for producers. In addition, new home builders are a much more price sensitive set of buyers compared to home owners given the nature of the project expenditures. In addition, decks on new homes tend to be smaller than repair and replacement deck projects.

Residential construction is the primary market for decking materials, followed by non-building projects (docks, marinas, park structures, etc.) and non-residential construction. The demand for decking materials in the residential market is expected to grow by 24.3% between 2000 and 2010 while demand is expected to grow by just 6.9% in the non-building market. Again, contractors in the non-building segment are much more price sensitive given the nature of the bidding process in these types of projects.

Almost 80% of decking material is installed by professionals as opposed to homeowners (DIY). While demand is expected to grow substantially in both segments, the highest growth is projected to occur within the DIY segment (27.7%) rather than the professional segment (15.9%). Given the profit constraints facing most professional installers, this segment of the market tends to be more price sensitive than the DIY segment.

Finally, the deck market can be segmented into deck platforms versus rails and accessories (benches, stairs, planters, etc.). It is important to note that only 59% of the total demand for decking materials is derived from the construction of deck platforms. The remaining demand can be attributed to deck rails and accessories, suggesting that overall demand for a specific product may be influenced to a substantial degree by the availability of rails and accessory products manufactured from the same material. Growth in both of these market segments is expected to be strong.

The projections indicate that the largest demand region for decking products is the US south while the US west is the smallest demand region. Interestingly, the largest growth in demand for decking materials is expected to come from these two regions.

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21. Wahl, A. 2009. Hemlock/Pacific silver fir in Europe. BC Coastal Forest Sector Hem-Fir Initiative. FPInnovations Record #: W-2833.

Europe is Canada’s second-largest offshore market for wood products, after Japan. Significant changes in industry structure and markets have taken place in Europe over the last decade, many of which are related to the opening up of the countries in the former Eastern Bloc. This report summarizes the latest developments in the drivers of wood use and industry trends in Europe and reviews key markets in Europe for opportunities and challenges for wood products made from hemlock and Pacific silver fir.

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22. O’Connor, J. 2008. BC non-residential market assessment 2006. FPInnovations Record #: W-2493.

In this study, current market share for wood in British Columbia non-residential construction was determined as well as potential for increased consumption of wood, based on a 194-building sample of 2006 building permits from most of BC’s major cities. For the sample, structural materials used in each project were established through phone interviews with each architect, contractor or other individual associated with the construction of the building. Each project was then compared against the height and area limits for combustible construction as defined in the BC Building Code. In actual market share for 2006, 13% of all buildings (which comprise 5% of all area) were primarily framed in wood. Adding in buildings that were partially framed in wood, 25% of all buildings (22% of all area) are using wood, either primarily or in combination with other structural materials. If every building allowed by code to be entirely framed in wood actually was, seven times more constructed area would be using wood than current practice. Adding in the potential for heavy timber roofs on non-combustible buildings yields a total of eleven times more constructed area that could be using wood. This total potential incremental wood consumption is estimated at up to 27 million board feet of lumber-type products (lumber, trusses, glulam, I-joists and composite lumber) and 13 million square feet of structural panels (plywood and OSB). Previously gathered market intelligence in BC and elsewhere in North America was then reviewed together with the market share statistics to help determine a set of near-term recommendations for the BC WoodWORKS! program to help capture some of this potential market.

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23. O’Connor, J., Poon, J., Fell, D. 2008. LEED parameters for appearance wood products. FPInnovations Record #: W-2494.

This report assists Canadian wood product manufacturers in understanding the requirements of the LEED® program. LEED is a tremendously popular “green” design guideline and rating system in the United States and Canada. Environmentally-conscious construction has rapidly escalated in North America from a niche interest area to a dominant media topic and an important market trend in the building sector. The value of U.S. green building construction was $12 billion in 2007, which was a 71% increase from 2006, which itself was a 37% increase over 2005. Every category of construction product is being affected by this design trend.

The green construction, or sustainable design, movement is driven by rising public awareness of the need to reduce demands on resources, mitigate climate change, reduce waste, and improve occupant health, among other goals. The construction sector is identified as a major cause of energy consumption, material use and greenhouse gas emissions; hence it is a target for improvement. Numerous initiatives are in place across the continent toward that end; however none have approached the recognition and influence of LEED. In place in the U.S. since 2000, LEED has become a de facto standard for green design and is increasingly being adopted in the legislation of various jurisdictions.

In recent previous work, Forintek industry advisors performed an extensive roadmapping exercise for the Canadian value-added sector to determine technical and market needs. One of the themes that emerged from this exercise was a general uncertainty with respect to LEED. Manufacturers that serve commercial, institutional and other non-residential clients were increasingly being asked about LEED preparedness and to bid on supplying LEED projects but did not feel prepared to respond.

This report provides a guide to LEED geared specifically for wood product manufacturers and designed to simplify the process of understanding LEED requirements. In the report, we translate the hundreds of pages of LEED material down to just what the manufacturers need to know about issues such as recycled content, certified wood, and VOC emissions of coatings.

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24. Wahl, A. 2008. Wood market trends in Europe. Special publication No. SP-49. FPInnovations Record #: W-2530.

Europe is Canada’s second-largest offshore market for wood products, after Japan. Significant changes in industry structure and markets have taken place in Europe over the last decade, many of which are related to the opening of countries of the former Eastern Bloc. This report summarizes the key trends in Europe’s wood products sector and assesses resulting opportunities and challenges for Canadian wood product suppliers.

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25. Lavoie, P., Robichaud, F., Gaston, C. 2008. Attributes demanded in the North American structural components industry. FPInnovations Record #: W-2535.

This study is an update of an extensive survey of US component manufacturers done in 2002 which identified automation as a key driver to increased quality requirements (i.e. wane-free and straight lumber).

More than 90 US component manufacturers were surveyed. Around 70% of their revenues are generated by roof trusses. Floor trusses and wall panels are respectively responsible for 15% and 10% of revenues. Average sales were estimated at a little over $8 million. Companies sold most of their production in urban/suburban areas and in the single-family market (over 60% for both). Other market segments served included multi family, repair and remodelling and non-residential.

The average roof truss manufacturer buys 4 million board feet (bft) per year. SPF and SYP account for 70% of all lumber used. In terms of grades, half of all lumber used is #2 and better. Close to 75% of all wood consumed is 2×4.

Lumber used in component manufacturing is bought mostly (60%) via wholesalers. Another 25% of lumber is purchased directly from manufacturers. Wholesalers were generally perceived to be the best suppliers due to the product mix on single truck loads, service, product range offered and contacts. Manufacturers came in second place. Their best assets were price and precision cut lumber. The worst supplier was identified as being home centers for reasons of price, overall value and contacts.

Satisfaction with lumber was mostly derived from its availability, acceptance by clients, delivery and price. It comes as no surprise that there has been a noticeable increase in satisfaction vis-à-vis price and price stability of lumber over the last five years. Quality related attributes have rated fairly low amongst respondents indicating some level of dissatisfaction. OSB is mostly appreciated for its product consistency, acceptance by clients, overall quality and appearance. Satisfaction levels were at their lowest for price stability, price and technical support.

Most wall panel manufacturers are medium sized (i.e. use between 1 and 5 million bft/year). The average lumber consumption of wall manufacturing operations is estimated at 2.5 million bft/year. More than 95% of all lumber consumed in wall panels is studs or dimension lumber. SPF is the most common species of lumber used with 43% of lumber consumed by wall panel manufacturers. Sheathing purchased by wall manufacturers is 75% OSB. Foam sheathing represented an additional 11% of sheathing supply. 75% of respondents expect lower foam sheathing use in the future.

Automation has increased amongst wall panel manufacturers. In 2006, it was estimated that 52% of respondents’ operations are mostly automated compared to 24% in 2002. Wall panels are mainly sold to builders who buy them due to their reduced installation time and costs, reduced amount of waste left onsite and labour-related issues. Walls were the components most often installed as shown by the 42% of wall manufacturers installing this product. Roof and floor truss installation is offered by 13 and 14% of truss manufacturers respectively.

Take home lessons

The structural components industry is becoming bigger and more sophisticated. Automation and installation are advancing. Builders are increasingly recognizing the advantages offered by wall panels.
Increased automation will likely continue to be a driver for increased quality requirements in lumber products. Wane and dimensional stability are key attributes which exhibit low levels of satisfaction.
Current satisfaction levels with lumber makes it vulnerable to substitution by alternative materials and products. Both a threat and an opportunity, this situation could foster innovation in wood products and/or technology.
Customer requirements for wood products need to be further investigated on a regional basis.

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26. Lavoie, P. 2008. Research assessment needs: wood substitution by concrete in the US South residential market. FPInnovations Record #: E-4327.

More than a third of all lumber consumed in North America is used in the new residential construction segment. Competition from other materials, most notably concrete, is making its presence increasingly felt causing wood’s market shares to erode. This substitution is happening mainly in two types of structural applications: exterior walls and floors. The goal of this project was to determine the extent of this phenomenon in the US and, more importantly, assess research needs to counter this trend.

Concrete use in floors has increased significantly between 1997 and 2005. During this period, the floor surface built in the US almost doubled attaining 3.8 billion ft2 in 2005. Furthermore, concrete gained ground on wood. In 1997, only 29% of all floors built in the US were made out of concrete. In 2005, this proportion had increased by 10% reaching 39%. This represents a significant opportunity for wood products. If all concrete floors built in the US in 2005, were to be converted to wood, 2.1 billion board feet of lumber and 2.2 billion ft2 of structural panels would be required. Virtually all concrete use is concentrated in the US South which includes 5 regions: South Atlantic (35%), West South Central (30%), Pacific (14%), Mountain (12%) and East South Central (7%). Paradoxically, an increased proportion of US housing is built in the US South where concrete use is more prevalent.

Wall construction is also employing more and more concrete. Between 1998 and 2005, concrete use has gone from 12% to 14%. More than two thirds of all concrete walls (42 out of 68 million linear feet) are built in the South Atlantic region. If all concrete walls built in the US in 2005, were to be converted to wood, 1.3 billion board feet of lumber and 0.8 billion ft2 of structural panels would be required.

Interviews with builders, wood product distributors, industry associations and others allowed to identify nine issues limiting increased wood use in wall and floor applications. They are:

Perceptions of cost and speed of delivery Sell-ability and homebuyer perceptions of wood framed housing Builders’ and others’ familiarity with building techniques and materials Florida building code as an instrument to promote concrete use Mould, decay, moisture and insurance coverage/premiums Termite and insect concerns Fire concerns Energy efficiency, insulation and the thermal mass effect Green building and environmental sustainability

Six research and extension priority areas were established. The number one priority should be to demonstrate the cost advantages of wood frame housing to homebuilders and homebuyers. An objective cost comparison project is needed to counter perceptions that wood framed houses are more expensive to build. In second place comes the identification of opportunities for wood framed walls in the Florida Building Code. These opportunities should be pursued with existing and new scientific research demonstrating the performance of wood framed structures vis-à-vis its perceived shortcomings (i.e. fire, termites, moisture, etc.). Specific complementary research projects and best suited industry champions are suggested for each item.

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27. Robichaud, F., Kozak, R.A., Richelieu, A. 2008. Wood use in nonresidential construction : a case for communications with architects. FPInnovations Record #: E-4580.

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28. Crespell, P., M. Vidal, C. Gaston, and R. Knudson. 2008. Market and Technical Review of the Fibre Polymer Composite Industry.

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29. Gaston, C.W., D. Cohen and I. Eastin. 2007. Wood Market Trends in Japan—2006 Edition. Special Publication SP-43.

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30. Marinescu, M. 2007. Economics and methods of improved manufacturing integration and flexibility. Integration methods in the forest products industry. FPInnovations Record #: W-2381.

This first year report contains a collection of integration methods, which forest products companies could implement in order to increase their effectiveness in today’s increasingly demanding global markets. These methods range from less sophisticated market transactions and informal agreements to more complex virtual and vertically integrated companies. Each integration method is described and examples from the forest products industry are provided, when available.

Also, examples of integration scenarios are proposed for the second year of the project. These examples include modelling of informal agreements between sawmilling operations, clusters of sawmilling and value-added businesses, and vertical integration of sawmilling and remanufacturing operations. In the second year, these examples could be used in various studies to compare different integration methods and to assess the feasibility of a state of the art flexible and integrated sawmilling operation.

The report concludes with a series of comments and recommendations about the implementation of these integration methods by forest products companies. One important condition is the appropriate communication within and between companies. Another condition addresses the delicate balance that companies have to achieve between adopting flexible and integrated operations and maintain a dependable customer base.

The Appendix includes a set of PowerPoint slides and notes presented by the author at the first “Trees to Dollars” workshop, organized in November 2005 by Forintek in Grande Prairie, AB.

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31. Wahl, A. 2007. Opportunities for Canadian wood products in appearance applications in Europe : Final Report 2006/07. FPInnovations Record #: W-2387.

Market intelligence on species, product preferences, and the competitive environment is needed to provide the value-added wood sector with the necessary information to develop and promote Canadian wood products in Europe. This market research assesses opportunities and challenges for Canadian solid wood products in European markets, examines the competitive environment and investigates end users’ preferences in wood species and other attributes. Surveys were carried out in selected European markets (U.K., Ireland, Germany, Spain, Poland and Romania) to determine the potential for Canadian value-added solid wood products. A literature review examines the softwood lumber market and industry in Europe in light of the recent rise in European softwood lumber exports to the U.S. and other overseas markets.

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32. Karwandy, J. 2007. Saskatchewan homebuilders perspectives on the potential for greater market penetration of prefabricated wall systems. FPInnovations Record #: W-2429.

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33. Fell, D., Tokarczyk, J., Hansen, E. 2007. User innovation and modification of wood-based construction materials. FPInnovations Record #: W-2444.

This project embarked on a new philosophy of information and knowledge collection. This was to mine the frustrations, solutions, and experiences of building products users. As clear methodology for this type of research was not readily available, much of the early efforts in the project involved working with different survey methodologies with a small group of builders and code officials. What we learned is that occurrences of innovations were too few to collect via field surveys. However, traditional paper surveys are not good at fostering reflection and creativity which were important to the study. In the end, the methodology employed was a paper survey with heavy reliance on visual clues such as diagrams of common building systems. This allowed respondents to visualize problems and solutions and to sketch to explain their ideas. Another modification to this project was the addition of building inspectors to the survey population. This was beneficial as inspectors see several homes per day, whereas most builders build only a few homes per year.

Results provide information on: which materials are used in each application, the positives and negatives of materials by application, material modifications for specific applications, ideas for improving building systems.

Few in-practice innovations were identified. However, there were many new or modified product ideas that were desired by respondents.

Major themes included: Finishing, cutting and fastening of finishing products Optimization of traditional and engineered structural material sizes Pre-insulated systems for energy efficiency Improvements in panel markings Reduction of wood use for cost and sustainability Mixed materials Fastener optimizations and improvements

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34. Robichaud, F. 2007. The role of communications in the forest products industry. FPInnovations Record #: E-4250.

This project is about understanding informational needs and at evaluating the role of selected marketing communications in emerging markets for wood products. It is conducted into three phases, the first of which being a survey of architects both in the UK and in the U.S. Architects were invited to share their perceptions of wood, their views on the challenges of designing with wood and, especially, their informational needs. Architects were identified as key materials specifiers in both theses markets.

In the U.S., sustainable design, the environmental footprint of wood, project costing with wood and wood suppliers’ capabilities were the topics for which information needs were the most salient. Informational needs were more important for engineered wood products than for solid wood. Overall, results from the U.S. pre-experimental survey reinforce the conclusions of previous studies with respect to the perception of wood. It seems that wood design is not seen as complex, but rather less desirable. Not surprisingly, wood was deemed the most environmental friendly material. However, architects rated steel and concrete higher than wood for any other attribute. Wood lagged concrete especially for durability and fire resistance. Along with the identified information needs, attributes for which wood has an unfavourable position against other materials can provide guidance in the development of communications.

In the UK, the awareness of wood as a building material is high within the community of architects. However, most architects feel that wood suffers from a poor image among homebuyers and homeowners. In architects’ view, wood lags behind the traditional method of building with bricks and blocks in terms of sound proofing, equity/value of the building, fire resistance, and durability. Results indicate that both environmental friendliness and energy efficiency are the main assets of wood for UK architects. Their most important informational needs regard the environmental footprint and sustainability of wood.

When investigated from a branding perspective, wood is seen by architects as being more of a sincere than an exciting character, either in the U.S. or in the UK. In the U.S., the most salient personality traits of wood were Down to earth, Outdoorsy, Honest, Charming and Wholesome. Traits that were not found to be as descriptive of wood were Intelligent, Upper class, Tough, Up-to-date and daring. In the UK, the four most salient personality traits for wood were Honest, Down to earth, Charming and Wholesome. The traits that were less of an accurate description were Upper class, Daring, Spirited and Intelligent. These personality dimensions can be used to better understand how wood is positioned in the view of architects. They can also be used in communication design.

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35. Lavoie, P.J.P., Laytner, F. 2007. Roadmap for the manufactured building systems’ industry : the future of the wood construction industry in Canada. FPInnovations Record #: E-4255.

Based on the 21 billion board feet of Canadian lumber exported in 2005, Canada has the potential to export 1.6 million housing units worldwide. Therein lies a key challenge: Can the Canadian structural wood products industry convert some of this commodity production and become an exporter of value-added products?

Prefabricated housing exports totalled $560 million in 2005. Approximately 40% of exports were sent overseas, which compares favourably to the US market focus of roof truss and prefabricated wall exports (90%). This is indicative of the industry’s high level of fragmentation and small company size which in turn generally limits their ability to ensure a presence in export markets (especially overseas). There are some industry champions exporting considerable numbers of units annually, yet the large majority of the industry focuses on short-distance markets, supplying customized homes to ‘local’ builders.

Many arguments can be made for homebuilders to switch to manufactured building systems. The lack of trades (labour) that is being reported by homebuilders is expected to get worse over the next decade. Component use (roof trusses and floor trusses) is becoming more and more prevalent amongst homebuilders. In turn, this leads component and building manufacturers to expand their product lines to better service homebuilders. The homebuilding industry is known for its conservatism. As such, the homebuilding process has remained relatively unchanged for the past 50 years with the exception of the adoption of substitute products developed by suppliers/manufacturers. A portion of the homebuilding industry is beginning to look at opportunities to modernize the way it does business; manufactured building systems are a prime vehicle to achieve this objective.

On the whole, there is a sense that a new industry will have to be created if aspirations of a new Canadian structural wood products industry are to be fulfilled. Lumber producers are producing immense amounts of commodity products used in construction, but are not ready to deal with a multitude of small players working at a scale much smaller than theirs. Manufactured building system producers are first and foremost manufacturers and, as such, continue to depend on homebuilders to gain access to land located in urban areas. Homebuilders can be divided into two groups. On the one hand, a large majority of builders call themselves “custom builders” as they build small quantities of high-priced homes on-site. On the other hand, there are “large builders” whose main interest is in developing land by putting houses on lots and servicing them. In between is a myriad of “hybrid builders”. Clearly, large builders are more prone to using manufactured components and building systems. However, this trend is more prevalent in large US builders that often produce their own components and building systems. Taken together, these facts illustrate that there is a void that needs to be filled. This roadmap identifies some of the critical issues limiting this industry’s blossoming into all that it can be. An action plan aimed at surmounting these issues is proposed.

To better understand the issues faced by the Canadian manufactured building systems’ industry, a series of 11 roundtables were held across the country. In total, all 10 provinces were represented. Sessions convened representatives from government, industry associations, industry (manufactured and site builders) as well as other related industry actors when deemed relevant.

To accurately reflect the concerns of industry representatives, portions of the report were sent to roundtable attendees and other interested parties that could not attend the sessions, but were still interested in contributing to the roadmap.

Six obstacles were identified as limiting the development of the industry. They included:

1. The image of manufactured wall panels/panelized homes in the marketplace

Homebuilders (as well as homebuyers) have not been convinced of the advantages of panelized housing products. The industry, either individually or through its associations, needs to present its clients with an attractive value proposition that includes issues of cost, quality, delivery and service. The homebuilding industry is conservative by nature; as a result, the manufactured buildings industry needs to clarify the nature of its product’s value and stand behind it. This process will necessitate that a change in the homebuilding business mentality be initiated by manufactured homebuilders.

2. The inability to identify quality products

Variations in the quality of Canadian products limit the expansion of the manufactured building systems’ industry by preventing homebuilders and homebuyers from distinguishing time-tested quality suppliers from suppliers with poor products and service. Services such as installation, delivery and dimensional adjustments (i.e., panel reconfigurations) could all be components of the definition of quality adopted by the Canadian manufactured building systems’ industry. Energy efficiency, green material and superior engineering are also likely to be part of this definition if the industry develops the ability to supply/export closed wall panels.

3. The industry’s ability to respond to domestic and foreign market requirements

Domestic and foreign requirements are very different; nonetheless both are difficult to meet. Since the prefabricated housing industry consists first and foremost of manufacturers, any expansion of their business would rely on on-site builders and developers adopting manufactured building systems. However, traditional homebuilders, despite all the difficulties they face, cling to their market shares and work habits, regarding manufactured wall panels and building systems as a threat to their dominant position.

Another difficulty lies in working with building inspectors who are not used to evaluating manufactured building systems. Other domestic opportunities exist in the form of social and First Nations’ housing as well as non-residential buildings. While the latter opportunity will require working closely with key specifiers, the former two necessitate government leadership to remove political hurdles associated with them.

Finally, very few Canadian manufacturers have enough production volume (or working capital) to consider the opportunities offered by large builders. Case in point, most exporting Canadian businesses proceed on a project-by-project basis. Hence, most Canadian manufacturers are not ready to enter supply agreements that are sought by large US or off-shore builders. Pro-dealers and other distribution channels targeted at homebuilders offer low margins for prefabricated building components and so have not garnered the interest of Canadian manufacturers. Smaller builders working in multi-family housing and hotels are seen as valuable opportunities because of the repetitiveness (and advantageous margins) associated with them.

4. Labour and training issues

The homebuilding industry as a whole has been suffering from a well documented lack of trained labour for the better part of the last decade. A factory offers an alternative working atmosphere thought to be more desirable (and more productive) than on-site homebuilding. The Canadian homebuilding industry will be required to put together the means to recruit an increasing number of tradesmen. Building homes in a factory setting should be considered a central element of the industry-designed solution.

5. Opportunities for technology investments

Canadian manufacturers are incessantly torn between the possibility of investing in more productive and efficient technologies and the prospect of not having enough markets to justify the investment. Identified as being a “chicken-and-egg” situation by many roundtable participants, numerous industry representatives limit their investments because they do not have access to opportunities that involve large volumes. It is uncertain whether building material distributors (e.g., pro dealers) represent a viable alternative to the more traditional “direct-to-the-builder” segment that has not allowed Canadian manufacturers to gain significant market shares.

6. Industry competencies and capacity

At this stage, the industry still needs to develop its abilities to panelize plans. Inter-operable software and designer training are two key elements in developing these competencies at the industry level. To complement these efforts, working relationships between homebuilders and key specifiers will be required. The wood products industry is a prime candidate to fund the development of tools and training programs supporting the continued use of wood in the Canadian construction industry.

Industry capacity is another concern in light of promoting this industry as the future of the Canadian wood construction industry. A solid business case for the large scale production of manufactured building systems for the Canadian and export markets has not yet been established. It is possible that through integrating other value-added products into their product line (for example windows and doors, siding, flooring) industry proponents may develop an attractive business scenario.

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Each fact sheet describes visual, physical and working properties for the species for the wood-consuming value added sector.

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37. Lavoie, P.J.P., Lindenbach-Gibson, R. 2006. Market challenges for the acceptance of prefabricated building systems. FPInnovations Record #: W-2268.

The solid wood products industry in Canada has been primarily based on softwood species producing commodity lumber. However, due to varies constraints (such as the softwood lumber dispute), opportunities for further value added industries and products have been investigated. One of these areas has been prefabricated building systems. Over the past few years, a large number of studies have supported the value-added merits and market rationale of prefabricated home systems versus on-site/stick-built construction practices. Yet, while prefabricated homebuilding technology offers great potential, such as reduced construction cycle time and improved framing quality, the majority of new houses in North America are still framed on-site using the conventional ‘stick-built’ method. It remains the case that outside of the usage of wood roof trusses, modular home components such as floor and wall systems have made insignificant inroads in North America’s home building sector. Taking a market pull approach, the primary objective of this study was to identify the barriers to a wider acceptance of prefabricated construction systems by the homebuilding industry. Homebuilders across Canada and the US were asked to participate in focus group discussions so issues surrounding their perceptions and barriers to prefabricated component use could be brought to light. Through this effort, five major barriers were identified as limiting the use of prefabricated wall panels in residential construction, and areas of market opportunity were identified.

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38. Gaston, C., Marinescu, M. 2006. The competitiveness of Canadian softwood lumber: a trade flow analysis. FPInnovations Record #: W-2270.

The Forintek Global Trade Flow Model (Gaston and Delcourt, 1998) was employed to analyze the predicted 2002 trade flows generated in 1997, and to recalibrate the model against 2002 known trade data. New predicted trade flows were generated for 2007 and 2012, as well as the generation and analysis of forecast trade scenarios for these years. Based on the forecast scenarios a series of conclusions were drawn regarding the competitiveness of Canadian Forest Products Industry in the global softwood lumber trade.

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39. Gaston, C., Fell, D. 2006. Treated wood product opportunities in the Southern United States. FPInnovations Record #: W-2271.

Two studies were done recently for the Canadian Forest Service Value to Wood program related to treated wood: “Potential for Increased Treated Wood Product Usage in U.S. South Residential Construction” (Vlosky and Gaston, 2004) and “Consumer Preferences for Decking Products in North America” (Thomas et al., 2004). Both of these studies indicated that these markets can be anticipated to change but “attitudes are possibly ahead of behaviour”, suggesting timely for industry to grow one market and work to maintain the other.

This study reports on builder interviews and a consumer focus group to 1) identify barriers for increased treated framing in the US South to help combat the extensive annual termite damage, and 2) to assess ways in which to combat market share losses for treated solid wood decking in favour of wood-plastic composites and non-wood materials.

Results for treated framing indicate the need to increase the awareness/effectiveness of treated framing products as well as its cost/benefit (as well as air quality advantages) relative to other termite control options. In this regard it was determined that the cost of treated framing must come down from existing levels. The value proposition has not been made.

Results for decking can best be summarized by noting the attributes promoted by plastic wood composites/non-wood decking vis-à-vis high-quality appearance, lack of checking and splintering, hidden fasteners, expected lifetime of the deck, and so on. Market share for these second and third generation decking products is estimated at over 25% in the U.S. nationwide, and at two to three times the cost to the consumer. This leaves the wood products industry considerable room for innovation.

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40. O’Connor, J. 2006. Market outreach : disaster-relief housing in Indonesia. FPInnovations Record #: W-2313.

Current overseas market outreach efforts are attempting to export the Canadian lifestyle, with large high-end homes – this yields large wood volumes and profit margins per house but few houses, for a small total exported wood volume. An overlooked and much larger segment of the overseas market is the entry-level home. Lower margins and volumes per house but larger total volumes of wood products are the potential result – eventually reaching as high as 18 billion board feet of lumber per year. Lessons learned from British Columbia efforts in Indonesia in 2005 will help Canada position itself for the market represented by future emergencies, through development of a housing solution that is preferred by international aid agencies, and through adjustments in domestic capacity to enable quick response. The market opportunity is significant, with over 1 million families made homeless every year due to natural disasters. The emergency shelter concept as the export vehicle for Canadian wood products is then easily extended to low-income housing worldwide.

This report provides a market development plan for the short and long term for Indonesian post-tsunami reconstruction, which is estimated as a need for 120,000 houses and several thousand non-residential structures. The plan targets Canadian access to this market and additionally addresses potential extension for earthquake reconstruction in Pakistan. Lessons are recorded here from recently-completed Forestry Innovation Investment and Canadian Forest Service-funded demonstrations and seminars in Indonesia, as well as a preliminary market assessment, costing scenarios and implementation issues. The report describes how best to leverage these previous investments into a long-term offshore market for Canadian wood products.

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41. Wahl, A. 2006. Identify viable non-commodity softwood lumber product diversification opportunities available to Alberta producers. FPInnovations Record #: W-2341.

In view of the long-standing nature of the Canada-U.S. softwood lumber dispute, this literature review examines opportunities for softwood products that are currently not affected by the dispute. This includes non-commodity softwood products for the U.S. market and softwood lumber opportunities in the domestic Canadian market, Asia and Europe.

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42. O’Connor, J. 2006. Ontario 2005 non-residential construction market assessment. FPInnovations Record #: W-2411.

In this study, the potential for increased consumption of wood in Ontario non-residential building construction is estimated based on a 47-building sample of 2005 building permits in the cities of Kitchener and Waterloo. For the sample, structural materials were determined through phone surveys with each architect or contractor. Each project was then compared against the height and area limits for combustible construction in the Ontario Building Code. Actual market share for wood is described, as well as potential market share if all buildings allowed by code to be wood actually were. Then, potential incremental wood volume consumption is calculated for this currently uncaptured market. In addition, local design practitioners were interviewed (seven people in five offices) to help clarify the construction environment and attitudes towards wood in this region. The survey data, the interviews, and previous research on non-residential growth potential were then synthesized into a set of near-term recommendations for the Ontario WoodWORKS! program.

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43. Gaston, C. 2006. “U.S. gap analysis II” revisits a large number of past builder and homeowner surveys. 2 p. (Technote ; 06-02W) Record #: TN581.

Over the past 8 years, the Markets & Economics Group have conducted over 25 primary market research studies, most of which focused on surveying builders and homeowners. Topics included attributes demanded in wall/floor/roof systems, treated framing and decking, prefabrication, component usage in secondary manufacture, non-residential construction, and increased usage of underutilized species. In 2004/2005, the Group revisited these studies with two mail surveys, one for builders and one for homeowners.

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44. Gaston. C.W. and J. Karwandy. 2006. Assessment of Product Opportunities for Aspen from the Weyerhaeuser, Prince Albert FMA. Prepared for the Saskatchewan Premier’s Task Force.

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45. Wahl, A. 2005. Opportunities for Canadian wood products in appearance applications in Europe. FPInnovations Record #: W-2144.

The UK market for softwood appearance products and the German market for components/lumber in furniture and cabinets were investigated in Year 1 of the project. In the UK, market size and species use in the softwood appearance market were quantified; supply sources and trends were identified. In Germany, material and species use in furniture components and lumber, competition, trends, and attributes demanded by furniture and cabinet manufacturers were assessed. A literature review and surveys of manufacturers in the UK and Germany were carried out. Opportunities were identified for Canadian exports of existing and new/modified products, focussing on solid wood components. In both markets, failure to match or surpass the technology, know-how and innovation of competitors in Europe and, increasingly, in Asia was identified as the greatest threat to Canadian exports of appearance products. More in-depth market research is recommended for the most promising products in the UK in Year 2 of the project, while no immediate need was found for further research in the German furniture market.

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46. Gaston, C., Goudie, D., Lindenbach-Gibson, R. 2005. Opportunities and strategies to enhance utilization of Canadian trembling aspen. FPInnovations Record #: W-2187.

Although significant volumes of Canada’s trembling aspen resource are being used for pulp and for oriented strand board production, the species can accurately be referred to as “under-utilized” with respect to the production of solid wood products. However, aspen – a species long considered a ‘weed’ – has started to gain recognition in terms of potential market opportunities for value added applications. This project has served as a follow-up to an earlier study that investigated market opportunities for trembling aspen in Canada. That report (Gaston, 2002) identified several promising marketing opportunities for aspen lumber and specialty products. While market opportunities were identified in all three specified geographic jurisdictions (Japan, Europe and the US), the area recognized as having the most promising potential for high-valued products was Japan – a market where aspen’s light colour, lack of grain and light-weight were highly regarded and appreciated. The primary objective of this study was to further explore the Japanese market with intent on achieving a clearer understanding of whether or not: a) the aspen resource can be economically converted to the products desired in the marketplace, and b) sufficient volume of high quality aspen timber can be made available.

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47. Fiedler, M., Wahl, A., Lindenbach-Gibson, R. 2005. Door and window stock manufacturing opportunities for commercial softwood species in Alberta. FPInnovations Record #: W-2188.

Substantial room exists for expansion in further processed products utilizing Alberta wood species. Door and window stock manufacturing using Alberta softwood species has been identified as a promising area of growth. This report evaluates the window and door market in North America, properties and grades required for lumber and component inputs, machining processes, and existing infrastructure in Alberta. The feasibility of producing window and door stock in Alberta is examined by linking the existing resources and infrastructure with the technical recommendations and market demand in North America.

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48. Lindenbach-Gibson, R., Fell, D., Marinescu, M., Rice, J. 2005. Alberta species development for value-added applications. FPInnovationsRecord #: W-2189.

The objective of this report is to provide a universal approach to measuring the market and technical fit of wood species to various value-added markets. While much of the technical data exists for Alberta’s commercial tree species, it is the intent of this report to compile and formalize all data within a master document for ease of understanding and comparability. As a compliment to the final report, publication of species properties in user friendly and comparable formats has also been prepared. The underlying objective of the provided information is to ultimately establish guidelines for the wood demands in a wide range of value-added applications.

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49. O’Connor, J. 2005. Alberta non-residential construction market assessment. FPInnovations Record #: W-2312.

This study is an analysis of 2004 non-residential construction activity, based on building permits, for Calgary, Edmonton and Red Deer. In addition to general construction statistics, this report addresses percent of non-residential market captured by wood (by number of permits, by construction value, and by building sub-assembly), and percent of market that was available to wood under the Alberta building code but was not captured. The report also identifies “best bet” market segments and suggested promotional and technical activities in order to increase the market share for wood.

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50. Robichaud, F., Lavoie, P., Gaston, C. 2005. Wood opportunities for manufactured housing and structural components. Special Publication. FPInnovations Record #: W-2322.

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51. Wahl, A. 2004. China’s non-structural panel market in furniture and interior finish. FPInnovations Record #: W-2048.

This project evaluates the potential for non-structural panels in the furniture (including cabinetry) and interior finish industries in China. It entailed two stages:

1. Review of existing information on non-structural panel markets and industry in China;

2. Survey of wood-based panel manufacturers and non-structural panel specifiers in China.

137 furniture and 132 interior finish manufacturers in eastern and southern China were surveyed by phone, mail/fax, and in personal interviews. Personal interviews were carried out with 11 panel mills in the eastern region.

The literature review is based on the Preliminary Competitor Analysis for Wood Products in China (Wahl and Gaston, 2003) that was carried out for Forestry Innovation Investment. Information specific to furniture, other non-structural panel markets and more recent publications have been added to this literature review.

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52. Thomas, J., Fell, D., Hansen, E. 2004. Consumer preferences for decking products : North America. FPInnovations Record #: W-2067.

This study expands geographically on past work on material preferences for decks in Vancouver, Calgary, and Edmonton (Fell and Gaston, 2001). In the fall of 2003 over 1,300 consumers were interviewed at home shows in Toronto, San Diego, Atlanta, and West Springfield (MA). Preferences for deck materials, expected lifetimes, annual maintenance requirements, and price were evaluated using conjoint analysis which explores the trade-offs consumers are willing to make to get the product that best suits them.

This study differs in other aspects than region from the Fell and Gaston (2001) study. Most importantly, three years have passed since the last study. Since then decking, specifically that treated with CCA, has become a prominent issue in the media. At the same time redwood harvests are down and western red cedar entering the US faces duties. Finally, awareness of wood plastic lumber and its availability have increased. For these reasons major differences from the 2001 study were expected.

It is interesting that after all the changes to the dynamics of the decking market since 2001, the basic desires of consumers remain the same. Consumers rate material type and expected lifetime of a deck to be the most important attributes. Price and maintenance requirements are secondary requirements. These results are almost identical to those seen in 2001. The practical implications of this result are that consumers appear willing to pay more and do more maintenance for a deck they expect to last longer.

Where the most profound differences are to be found is with respect to material. In 2001 (Western Canada) treated wood was of almost equal preference to naturally durable wood, with wood plastic composites being viewed very negatively. Three years later treated wood has a negative perception, and wood plastic is perceived positively in all but one of the study cities.

Naturally durable wood remains the material of choice overall. It was especially popular in Toronto. Toronto was the only city where wood plastic was had negative preference. In view of the 2001 results in Western Canada this may indicate that Canada as a country is less open to wood plastic composites than the US. Wood plastic was most positive in Massachusetts where it was preferred to naturally durable wood. Finally, treated wood was viewed least negatively in Atlanta and Toronto.

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53. Vlosky, R., Gaston, C. 2004. Potential for increased treated wood products usage in U.S. south residential construction. FPInnovations Record #: W-2068.

The potential for the use of treated wood products in construction is considerable, primarily in the U.S. South for termite protection and to mitigate moisture related decay. It has been estimated that damage to wood structures by termite damage in the U.S. is $2 billion annually (USDA Forest Service, 2002). While treated southern yellow pine products (SYP) constitute the bulk of treated wood species inputs (44% of all SYP is currently treated), the potential size of this end-use market suggests that the South may not have the capacity to be self-sufficient. Further, in certain construction end-uses, particularly wall framing, builders prefer spruce-pine-fir (S-P-F), Douglas-fir and hem-fir.

From the treated wood manufacturer point of view, results suggest that treated wood brand recognition is very low for homeowners, and that the level of trust regarding the responsibility of providing builders, remodelers and consumers with treated wood product safety and handling information is not high. Improvements here could go a long way in increasing market penetration of treated wood compared to alternatives such as regular fumigation or alternative building materials.

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54. Fell, D. 2004. Assessing preferences for wood characteristics in visual applications. FPInnovations Record #: W-2069.

As this is a relatively new field much of the emphasis of this study was on a literature review to help develop a theoretical platform to work from. It was found that the colour of wood appears in the literature in two ways. It appears qualitatively in marketing and value-added research, and it appears quantitatively in colour matching and quality control research. The present research study is the first known occurrence of the quantitative comparison of measured colour with measured consumer preference.

There has been considerable research into character marks in wood. This research has largely been based around traditional hardwoods as the result of increasing scarcity of high grades of lumber. However, more fundamental characteristics such a grain profile, rings per inch, and the presence of visual features such as rays and vessels have not been considered with respect to visual preferences.

Consumer preference data used for this study originated from the study “Consumer visual evaluation of underutilized Canadian wood species” (Fell, 2002). This was chosen as it has a great variety of species to analyze. However, in the survey consumers evaluated the species for overall appearance and not for specific end-uses. Therefore results of the current study are general to wood used in the home and do not apply to specific end-uses.

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55. O’Connor, J., Fell, D., Kozak. R. 2004. Potential for increased wood-use in N.A. [North American] non-residential markets – Part II. FPInnovations Record #: W-2076.

A survey of non-residential builders and owners/developers was performed in Fall 2003, as a continuation of a Forintek market research project conducted in 2000/2001, which was itself modeled on a non-residential market research method pioneered by Dr. Robert Kozak of the University of British Columbia in 1993. Those two previous studies examined opinions and behaviours of architects and structural engineers, assumed to be the primary specifiers of structural materials. In the 2000 study, it was revealed that building owners/developers and construction contractors have a substantial influence on material selection. This group within the non-residential building construction community has been virtually unstudied in the past. The authors report here the results of a survey and focus group project conducted with builders and developers in 2003, and compare that data to key findings from the 2000 study of architects and engineers.

At US$268.7 billion in 2002, the total value of non-residential construction in the U.S. was 88% that of new residential construction. Non-residential is thus a substantial market for construction materials, but not a strong one for wood. The volume of lumber and structural panels used in non-residential construction in 2002 was less than 10% of the volume used in new residential construction.

Various regulations restrict the use of structural wood in non-residential applications. However, while wood may not be an appropriate structural building material for all non-residential buildings in North America, code-related issues are only estimated to limit wood’s potential market share to approximately 50% by value. Given the small share held by wood to date, this represents tremendous room for growth.

The primary goal of this project was to study decision-making in structural materials through a survey of non-residential building developers and general contractors in the United States and Canada, as an extension of our 2000 examination of non-residential architects and structural engineers. Specific objectives of the study were to:

· determine the types of buildings that are currently being constructed in the non-residential sector according to builders and developers, and compare with data from engineers and architects;

· determine the extent to which these builders and developers are using wood products;

· determine perceptions, knowledge and comfort levels regarding wood among non-residential builders and developers;

· identify best opportunities for promotional strategies for builders and developers to open up markets for wood products in the non-residential sector; and

· determine barriers to wider uses of wood or threats to current uses of wood from the point of view of builders and developers.

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56. Wagner, E., Fell, D., Hansen, E., Gaston, C. 2004. Forest product resources on the internet. FPInnovations Record #: W-2077.

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57. Tabarsi, E. 2004. An analysis of the North American home siding market. FPInnovations Record #: W-2089.

In this study builders and professional repair and remodellers were given a chance to evaluate 12 of the most common home siding products available in the market today. The products were evaluated on seven different attributes: price, maintenance, installation, attractiveness, status/image, fire resistance, and durability. Overall, fire resistance, attractiveness, and maintenance were selected as the most important product attributes by single-family homebuilders and repair & remodellers. The majority of respondents stated that their customers had a strong influence on their final choice of siding materials. In addition respondents were asked for their opinion regarding product popularity, rate of installation, substitution trends, and their choice of siding products for different categories of homes.

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58. Wahl, A. 2004. Opportunities for lumber in China’s interior finish and furniture industries. FPInnovations Record #: W-2098.

The objectives of this project were to examine the use of lumber products in the furniture (including cabinetry) and interior finish industries in China’s largest production centres for furniture and interior finish products, and to assess the potential and opportunities for lumber from British Columbia.

Rising disposable incomes and the urbanization of China’s population continue to drive demand for new housing and increased spending on home furnishings. As a result, the furniture and interior finish industries have developed rapidly in the last decade. By comparison, China’s market for structural applications for wood products is small at present.

A total of 137 furniture manufacturers and 132 producers of interior finish in eastern and southern China were surveyed by phone, mail/fax, and in personal interviews in November and December 2003. The eastern region comprises Shanghai and the provinces of Jiangsu, Anhui and Zhejiang, while Guangdong province represents the southern region.

This market research was carried out in conjunction with a survey of non-structural wood-based panel users for the Wood Panel Bureau/Forestry Innovation Investment.

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59. Wahl, A. 2004. Benchmarking wood use in roofs of multi-family housing in China. FPInnovations Record #: W-2099.

This benchmarking study aims at providing the Canadian industry, agencies and governments with the necessary understanding of the knowledge and perception of wood roof trusses among specifiers in selected urban regions in China for ongoing and future promotions of wood roof trusses in China.

The objectives of this project are the following:

1. Assess current awareness, knowledge and perception of wood roof trusses in multi-family housing among specifiers (architects, engineers and builders/developers);

2. Examine how decisions on roofing/building systems and materials are made;

3. Determine best ways to transfer knowledge about wood roof truss systems to specifiers.

Two separate surveys were carried out for benchmarking wood use in roofs in China. The first survey was part of a survey of Chinese building specifiers (Benchmarking Chinese Building Specifiers (Cohen and Ding 2004)) carried out in October/November 2003. A second survey was administered during the Conference on Hybrid Building Construction in China and Wood Roof Truss Workshops in Shanghai and Beijing in December 2003.

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60. Robichaud, F., Lefaix-Durand, A. 2004. Assessment of large builders market strategies. FPInnovations Record #: E-3853.

The consolidation of the homebuilding industry is meant to continue and to have profound impacts on the forest products industry. It is changing the way houses are built as well as the relationships between building materials suppliers and home builders. Along the consolidation way, builders are also gaining more purchasing power as evidenced by the lumber consumption of the Top 100 builders, estimated to near 7 billion Board Feet.

More than ever before, large homebuilders are considering direct and longer term agreement with suppliers of lumber and OSB. It is expected that, due to the emergence of longer term and more direct purchasing agreement, collaborative practices become more developed. As far as building techniques go, we assume that the componentization of the housing industry will keep its advance, especially in the large builder segment. Componentization not only brings more off-site fabrication, but it also relies on a higher engineering content in the housing construction process.

Currently, purchasing agreements are short term based either for lumber, structural panels, engineered wood products, roof trusses and prefabricated walls. However, when questioned about the future of their purchasing agreements, respondents clearly showed a propensity to develop long term agreement. Indeed, every participant to this study pointed out to longer term agreements with suppliers and, in some cases, raised the possibility of more exclusive arrangements. This observation was further confirmed in site visits.

While centralization of the purchasing process is not the preferred choice of every large builder, we hypothesize that the specifiers will increasingly be centralized in the future in the wake of national purchasing agreements. Meanwhile, it is clear that regional offices will continue to have their word to say. Materials selection is not a one way process from top to bottom, but the head office is likely to be involved even when the process is regional.

As of now, most of the interactions between large builders and their suppliers may be summarized as information exchange. This indicates a fairly low level of inter-firm co-operation. However, the majority of participants expect either a shorter supply chain, more direct relationships or more partnering over the next five years. In turn, information and communication technologies, either for fund transfer of business planning, will spread out.

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61. Fell, D., Lindenbach-Gibson, R. 2003. Furniture and interior finish opportunities for select underutilized wood species – Saskatchewan and British Columbia. Part 1. FPInnovations Record #: W-1943.

The primary objectives of this study are to demonstrate the feasibility of:

1. Producing high quality value-added products from lesser-used species through prototyping; and

2. Marketing high quality value-added products from lesser-used species through consumer research on the prototypes at home shows.

In year one of the project, fibre was sourced and prototype products designed and produced. This was achieved through partnering with eleven companies from the primary and value-added wood industries in British Columbia and Saskatchewan. Having carried out these prototyping exercises, there are two main areas to assess after the first year of the project. These are: (1) the appropriateness of the underutilized fibre for use in furniture and interior finish products, and (2) the infrastructure that exists to take the fibre in log form through to market-ready interior finish or furniture products.

All six species used in this study were well received by the companies that utilized them in the production of prototypes. All species machined well and were deemed to have appropriate properties for the products for which they were used. In situations where a partner company had never used a certain species, all companies indicated a willingness to use the species in the future, given adequate supply and market demand.

Most of the challenges encountered in year one of this project were with respect to gaps in the infrastructure in place. Infrastructure varies among provinces, species, products, and all combinations thereof. However, some general observations can be made that cover most industry scenarios.

For interior finish and furniture manufacturers, there seem to exist two extremes with respect to the use of underutilized domestic species:

1. Many furniture and interior finish producers in Western Canada are completely detached from the domestic resource. This is due to the lack of availability of suitable domestic lumber and veneers for their manufacturing needs. In addition, risk aversion with respect to market demand prevents some from using new species.

2. Other manufactures of interior finish have taken the approach of integrating back to the resource by sourcing logs, sawing lumber, and drying lumber, all in addition to their core business of designing, manufacturing, and marketing finished products. Many of these companies report difficulties sourcing logs. In addition, the vertically integrated business model of sourcing logs to marketing consumer products is challenging for smaller companies to excel at.

To foster growth in the use of domestic underutilized species in the value-added sector the following infrastructure challenges must be addressed with respect to fibre conversion. Access to logs is reportedly difficult for smaller producers who specialize in sawing for the value-added sector. The specialty sawmilling industry that focuses on the recovery of visual grades, grain orientation, and colour sorts has not fully developed in Western Canada. Drying capacity appropriate for lumber destined to the value-added industry is limited to non-existent in some regions. Veneers are not available in many underutilized species, stalling the potential growth in lumber demand as the two products are used together. Prospective demand for specialty lumber and veneers from underutilized species must be clearly documented to warrant investment by specialty sawmills.

Key recommendations and industry needs identified after the first year of this study include:

1. Technical transfer to specialty sawmills –

These companies need the background, technical information, and tools to produce lumber of underutilized species for value-added markets. Specialty mills must be introduced to the possible grades and sorts that can be produced for this type of lumber, as well the type of sawing optimization that will allow them to recover these grades.

2. Drying facilities –

Drying capacity is necessary for lumber manufacturers who wish to be in the value-added market. However, many of these mills are very small and cannot justify the expense of their own kilns. The model of centralized drying operations partnering with multiple small sawmills must be further explored and developed.

3. Marketing and distribution –

One of the requirements of the value-added industry is consistent supply. Again, a collection of small sawmills would be better positioned to provide continuous supply than single sawmills. Further, the value-added industry must effectively market their products of underutilized species if they are to provide sufficient demand for specialty sawmills.

4. Veneer availability –

Veneers are necessary to establish a new species in the value-added sector as they are used with lumber. Veneer production can be outsourced, as veneers are economical to ship. However, companies wishing to sell a new species of lumber must ensure veneers are an option for their potential customers.

5. Market research –

The last component needed is market research indicating to specialty sawmills and value-added producers that there is sufficient market potential for lumber and finished products made of underutilized domestic species. This will be addressed in year two of this project.

In year two of this study, the prototypes that have been produced will be the subject of market research on the consumer acceptance of products made underutilized domestic species. Data will be collected at six home shows; two in Canada and four in the United States. Combinations of species, grades, and product formats that have the best market prospects will be identified.

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62. Gaston, C., Maplesden, F. 2003. A benchmarking study for structural wood products demand in the People’s Republic of China. FPInnovations Record #: W-1944.

China has long been recognised as a major potential market for wood-based products. This view has been fuelled by the scale of the domestic market, rising GDP per capita (albeit from a low base), a demonstrated government commitment to housing reform, reduced timber supplies and, more recently, China’s accession to the World Trade Organisation (WTO).

These enormous market changes will have significant implications for forest products exporters. A cursory examination of the literature suggests that while there is considerable information and analysis of past trends, few of these provide comprehensive clues to the real areas of competitive advantage for softwood producers, or provide insights into the demands of future Chinese wood products consumers, who will undisputedly be of a different genre to the past consumer.

This study investigates these potential opportunities via a two-part literature review and the results of a market benchmarking survey of almost 1,000 existing or pending homeowners in Beijing, Nanjing and Shanghai, three cities which have been identified with the largest potential for increased demand for wood products related to housing. The first of the literature reviews focuses on the published demographics of housing demand in China, and serves as a background to the benchmarking survey results. The second review is a paper written by Dr. David Cohen at the University of British Columbia, and investigates the cultural, political and societal changes and its impacts on foreigners doing business in China. The benchmarking survey was intended to record the existing awareness of wood-frame residential buildings, along with positive and negative attributes that they associate with these structures.

Highlights of this study include:

At over 1.2 billion people, exploding urbanization, steady economic growth and a significant housing deficit, the growth in demand for housing materials/systems will be massive over the coming decades. At the same time, government reform has created a housing market where consumer quality demands exceed what was previously offered by the State. With continued environmental protection policies, self-sufficiency in building materials will continue to decline, relying more and more on imports. (Note: overall imports surged by 63.4% year on year in January of 2003, to US$31billion; exports grew by 37.3% to US$29.8 billion, leaving China with its first monthly trade deficit since December 1996. [The Economist]) Like Japan, China’s population is aging, largely due to their “one child” policy. The number of people aged 60 and over is predicted to double in size by 2020. Income distribution in China is uneven geographically and the disparity is widening. 2.2% of the population of China, living in such cities as Shanghai and Beijing, had reported annual household incomes between US$10,000 and US$15,000 in 2001 (CPIRC). This is considered a very affluent income level in China, a point that must be kept in mind regarding the population’s ability to pay for B.C./Canadian wood products. In contrast, over 50% of the population in China live in western and inland parts of China and earning less that US$1,800 in 2001. These income levels were confirmed in the market benchmarking analysis of this study, showing annual household incomes among the respondents of primarily between CDN$4,600 and CDN$8,900 per year (26,000 to 50,000 RMB). It should be noted that the vast majority of these household incomes are earned by two people, meaning the average income per person is half this. Further, average monthly rents for those that did not yet own their homes was CDN$191 for Beijing, CDN$122 for Nanjing and CDN$143 for Shanghai for those surveyed. Surprisingly though, the average existing/expected home purchase size (primarily apartments) was 97 m2 at a price of CDN$72,000 for Beijing, 125 m2 at a price of CDN$75,000 for Nanjing, and 109 m2 at a price of CDN$83,000 for Shanghai. There are two explanations for this divergence between income levels and willingness to pay for housing. First, savings rate is very high in China as compared to Canada. Second, not unlike Japan, interest rates are very low. It will be interesting to see what the existing levels of bad debts in China’s banking system does to the latter in the coming years. Although evolving, China’s cultural, political, social and economic realities necessitate that B.C./Canadian exporters understand the environment to succeed. The need for local joint ventures, an assessment of risks/costs/benefits and a clear understanding of the dynamics of this market are critical. The awareness of North American platform-frame and Japanese post & beam wood building systems was significant in all three cities investigated. For example, 44% of the respondents in Nanjing were aware of Japanese post & beam and 22% aware of North American platform-frame homes. Awareness came primarily from advertisements in China, followed by exposure through television / cinema programming. Awareness of wood-based home systems increased both with the respondent’s level of income and education. There was an even higher awareness of combined wood / concrete / masonry building systems. This was found as a curious result as evidence of such structures in urban China is not evident. Further investigation revealed that the high awareness comes from the respondents’ previous life in (or knowledge of) rural homes in China where such structures are common. This is a very important issue regarding the Chinese connotations of wood-based homes. The image of these masonry/wood rural homes is not high, but rather associated with subsistence living. This is a much needed area for further market research, as it will not be clear whether or not this influences responses to positive / negative attitudes toward wood-based homes (next two highlights). Aesthetics of wood-framed homes was the number one positive attribute in the survey in all three cities, followed by its insulative properties and environmental protection. Attributes such as “natural” and comfortable were also common among respondents. It is interesting to see that the performance of wood structures was NOT listed as a positive except for its earthquake resistance (see negative attributes). On the negative attributes side, concerns over fire ranked number one in all three cities. The other negative attributes noted were virtually all performance related, including lack of insect resistance, moisture resistance, or even seismic concerns (conflicting with the positive mention above). Dealing with the concern over these negatives will be key in any promotion activity in China. The results of this study suggest that there is a strong potential demand B.C./Canadian wood products/systems. In addition to continuing exposure through the existing promotion of high-end single-family homes, it is recommended that the greatest potential lie in the recognition of the cultural, social, political and economic realities that exist for housing in China. These largely point toward increased wood-use in their common low-rise multi-family structures. This must include dealing with the existing negative performance connotations of wood by the Chinese. Promotional efforts by our government and industry need to incorporate the knowledge gained by the market intelligence generated in this and ongoing market research studies.

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Based on market research involving North American architects and structural engineers performed in 2000/2001, this document presents a road map for increasing the number of wood-frame non-residential buildings. Most commercial and institutional buildings in the United States and Canada are made from steel or concrete, although 50% could be made from wood under current building codes. Capturing this significant missed market will be complex, as evidenced by the variety and depth of marketplace hurdles identified in the study. The authors performed extensive technical interpretation of the survey and focus group data from the study in order to develop “best bet” activities in five areas of perceived wood weaknesses: fire-safety code issues; performance data and cost-effectiveness; lack of adequate skilled site labour; shortcomings in designer training and on-the-job resources; and entrenched images of wood as inappropriate or inadequate for non-residential applications.

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64. Fell, D., Tabarsi, E. 2003. Professional repair and remodelling markets for wood products. FPInnovations Record #: W-1958.

Published market research on the building materials used in repair and remodelling is dominated by studies of do-it-yourself (DIY) consumer preferences. However, the professional repair and remodelling sector has quietly grown in the past decade from approximately one half of repair and remodelling purchases to closer to two-thirds of purchases.

The goal of this project was to create a profile of the professional repair and remodelling sector. Specifically, we were interested in the types of projects completed and the products consumed. The study consisted of a literature review followed by a telephone survey.

Highlights include: Kitchen and bathroom remodels are the most common and among the most expensive projects. These projects provide a healthy market for wood-based cabinets. In the current trend to wood floors, the professional repair and remodeller is more often called upon to install solid wood flooring than laminate floors. The cost of professional installation indicates consumers place additional value on a solid floor. The incidence rate of projects related to rebuilding after disasters is high among professionals. These are the most expensive project types and the most likely to use softwood lumber and structural panels. Local lumberyards are the most common source of purchases, as compared to box stores or buying direct. Local suppliers as well as promotional and instructional literature are the most important sources of new product information for professionals. Quality, appearance, value, and ease of installation are the most important product attributes. For visual products such as flooring and cabinets, brand and appearance are of increased importance relative to structural products. The profile of the typical professional repair and remodelling client:

o Average to large single-family home,

o 35-49 years of age

In summary, professionals play a large and increasing role in the repair and remodelling sector. They purchase a significant value of wood products, particularly finished wood products such as cabinets, flooring, windows and doors. Their preferred source of supply are lumberyards, which they also rely on for new product information. Any marketing strategy aimed at the professional repair and remodeller should be focussed on this distribution channel rather than the DIY-oriented box store.

Combined with market studies that Forintek has completed on the North American DIY and new housing construction sectors, there now exists an extensive database for cross-sector comparisons. It is recommended that a follow-up summary report of these studies be produced.

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65. Fell, D., Lindenbach-Gibson, R. 2003. The North American value-added components industry : overview and market opportunities. FPInnovations Record #: W-1959.

There is very little information publicly available on the wood components industry. However, as value added companies consider outsourcing wood components rather than purchasing lumber and panels it is important that the wood products industry understand this trend, how it will affect the attributes demanded in their products, and the opportunities available to them for further processing.

The primary objective of this study was to provide an overview of the value added components industry in North America. This objective was divided into four sub-objectives or tasks:

1. Technical overview of the component industry.

2. Market overview on value added components and lesser-used species (literature review).

3. Survey of component manufacturers inputs, products, and markets.

4. Survey of component using industries with respect to inputs, products, and markets.

The objective was met by sponsoring research and literature reviews under each of the sub-objectives. Stand-alone reports for each sub-objective can be found in the appendices of this report.

The keys to wood components manufacturing are efficient processing and fibre utilization. These are historical strengths of the Canadian wood products industries. Component manufacturing provides the opportunity for resource-based companies to move into the arena of value-added production without having to invest heavily in the design, distribution, and marketing capacities required if final products are produced.

The most common type of component purchased by secondary manufacturers in both the US and Canadian surveys were cut-to-size blanks. This type of product is very appropriate for companies close to the resource. Lower grades of lumber can be processed into blanks to upgrade their value. By performing this function close to the resource, savings in shipping costs are also realized. The machinery for producing blanks is relatively straightforward and capital investment can be justified by full utilization of the equipment. This requires full order sheets and a continuous supply of fibre.

While there appears to be some resistance to the use of alternative species in component consuming industries, species such as yellow birch and yellow poplar provide evidence that substitution is happening. As the lumber markets for white birch and aspen are developing in Canada and the US, component blanks may be a viable outlet for the lower grades of lumber produced. In this way, the component industry may make the development of underutilized Canadian species more viable.

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66. Lindenbach-Gibson, R., Robichaud, F. 2003. Saskatchewan’s forest and wood products industry : sector profile and market identification. FPInnovations Record #: W-1967.

Over the last two years, Saskatchewan’s forest industry has experienced growth the likes of which have never been seen before within the province. With more than half a billion dollars in new investment, Saskatchewan’s forest industry has quickly “emerged as one of the province’s bright lights”, stepping out of the shadow of a declining grain economy (Martin 2001). Similar to what has been advocated within the grain sector, Saskatchewan’s forest sector is expanding not only in raw production, but also into value-added products. With all this change and increased activity, the objective of this report is to provide an overview of the Saskatchewan forest and wood products industry. The report is an expansion of a previous Forintek report analysing the market opportunities available for the Saskatchewan forest industry. The intent of this report is to present linkages between the Saskatchewan resource, production capacities, and markets as a foundation for identifying future opportunities for growth.

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67. Wahl, A., Gaston, C. 2003. Preliminary competitor analysis for wood products in China. FPInnovations Record #: W-2014.

China has become the focus of much interest by the Canadian forest sector for its potential as a growth market for Canadian wood products. Such interest spans the full range of products (softwood and hardwood lumber, wood-based panels and other further processed wood products) and end-use applications (residential and non-residential construction, doors, windows, interior finish, furniture, and industrial end-uses).

This preliminary competitor analysis is the first step towards actively positioning British Columbia as a supplier to the Chinese market for the purpose of increasing market share. The two key objectives of the analysis are to do a thorough review of existing information on China’s wood products market and industry and to identify gaps in information. The results will provide Forestry Innovation Investment with a basis for prioritising future research, product development and promotional activities for China’s market.

When analysing information on China’s market and industry it is important to keep in mind that much of the officially reported data is not reliable. Comprehensive and reliable statistical collection systems have yet to be established in China. This report is primarily based on adjusted official figures and published primary research reports.

The key conclusions from this analysis are:

· China’s raw material supply from plantations and imports is increasing.

· Russia and Southern Hemisphere countries will remain B.C.’s main competitors for softwoods.

· China’s domestic sawmilling industry is uncompetitive.

· Panel demand is rapidly growing while lumber demand is steady; at the same time lumber imports are rising.

· Substitution with reconstituted wood-based panels and non-wood materials affects lumber demand.

· Furniture and interior finish are the main drivers of wood demand in China; softwood lumber consumption depends largely on civil construction activity.

· There is a mismatch between the main wood products currently supplied by B.C. and market demands in China. China demands hardwood for interior finish and furniture and softwood logs for processing in China to compensate for the decline in domestic harvests. B.C., on the other hand, supplies structural softwood lumber that has limited existing applications in China. In China demand for non-structural reconstituted panels is growing fastest while B.C. produces mainly structural panels.

· Any opportunities for B.C. producers to capture a significant market volume in China therefore require either developing a new market for existing B.C. products or developing new products for existing markets.

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68. Robichaud, F. 2003. Homebuilder perceptions of interior wall framing materials. FPInnovations Record #: E-3774.

In 2002, for this study on interior wall framing materials, 329 North American homebuilders were surveyed. In addition, two focus groups made up of homebuilders were consulted in Toronto and Boston. The purpose of this study was to determine homebuilder perceptions of selected interior wall framing materials, while focusing on finger-jointed lumber, and to assess consumer awareness of the various grades of finger-jointed studs.

In Eastern Canada, builders who shy away from lumber in interior wall framing tend to prefer steel. In Western Canada and in the Southwest United States, builders consider finger-jointed lumber to be an alternative material. Nonetheless, lumber is perceived as providing more structural integrity, being more accepted by framers and homebuyers, being more easily available, easier to install, and as having a lower installed cost than other framing materials such as finger-jointed lumber, structural composite lumber, steel studs, and prefabricated walls. Lumber is rated lowest by builders only in terms of wall straightness. However, because wall straightness is important to builders, they—particularly the larger builders—are increasingly considering alternative framing materials. The level of awareness of these alternatives varies among the North American regions studied. It is, not surprisingly, much lower in the regions where lumber use is higher. Finger-jointed lumber grades are also not very well known, although focus group participants identified stamping of the product as the main indication of reliability.

This lack of awareness suggests there is a need for information, even for solid lumber, at all levels—homebuilder, framer, and homebuyer. Essentially, builders now seem more receptive to using or at least trying products that they would never have considered just ten years ago. Accordingly, they expect building materials suppliers to provide them with sound information and supporting data on the performance of their products.

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69. Gaston, C. 2002. Emerging international markets for treated wood. FPInnovations Record #: W-1829.

The vast majority of all treated wood production in North America is used domestically in outdoor applications, either industrial or for outdoor consumer products. The two largest areas of growth are in expanded end-use applications in North America (for example, treated wood products used in residential and non-residential framing), and in expanded geographic markets. This paper focuses on the latter.

The international markets which are shown to have the best prospects for expansion or adoption of treated wood products are, in order, Japan, Western Europe, and emerging Pacific Rim economies. These markets are investigated for both wood frame construction and outdoor applications of treated wood. This investigation includes competitive and environmental considerations.

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70. Fell, D. 2002. Consumer visual evaluation of Canadian wood species. FPInnovations Record #: W-1859.

This project sought to evaluate the consumer acceptability of some of the lesser-used Canadian wood species with respect to value-added applications. Based on the recommendations of project liaisons across the country eleven species were chosen for the study. Of these there were four hardwoods and seven softwoods. Within this group of species some special topics such as old and second growth differences and blue-stained wood were addressed. In addition to the eleven “lesser used” species two “industry standard” species were included in the study to provide a benchmark.

Data was collected at the Toronto and Vancouver fall home shows. A booth was set up to display samples of each of the wood species. Consumers were asked to fill out a five to ten minute survey which asked which samples were most attractive, which best fit a set of ten descriptors, and which they would like to see used for a series of furniture and interior finish applications. In addition, information was collected on product purchase intentions and respondent demographics. A total of 1031 usable surveys were competed over the fours days of the Toronto show and the four days of the Vancouver show.

Furniture was more common than interior finish with respect to recent purchases. However, interior finish items were the top planned purchases. Of all products in the survey wood floors were the top product in terms of future purchase intentions.

As expected colour and grain are the most important attributes consumers consider when evaluating the look of wood. The top descriptors were warm and classic. However it is interesting that the lower ranked descriptors of modern and cool saw the greatest differences based on demographic segments.

Demographics played a major role in species selection. There was a marked urban / suburban split in the selection of wood species. Urban respondents selected a wider range of species and were looking for looks beyond just warm and classic. Suburban respondents tended to choose red toned species with a warm or classic look. With respect to gender, women generally gravitated to one or two species while men’s species choices were more diverse. From a provincial perspective Ontario respondents chose more red toned woods while BC respondents chose lighter woods for some applications.

Species Overview

White birch

The flat grain profile of white birch was one of the top selections of respondents in this study. The red tone of white birch heartwood is viewed as warm, one of the highest ranked attributes respondents were seeking. While other hardwoods finished above white birch for furniture it was generally among the top choices. The strongest result for white birch was in floor applications.

Red alder

Red alder was noted by respondents for its classic look. It was often chosen for diningroom and livingroom applications where a classic look is desired. Red alder was also chosen quite for kitchen cabinet applications. Red alder finished much stronger than industry standards, and was chosen over red oak for flooring.

Broadleaf maple

Broadleaf maple was the top hardwood species in the study. It is also only the species in the study where edge grain was consistently chosen over flat grain. The edge grain was viewed as both classic and warm. Application opportunities are good for all furniture and for flooring. In the flat profile broadleaf maple was viewed as more neutral. Overall, it was a popular species in both profiles.

Trembling aspen

Trembling aspen was chosen consistently as the least attractive species in the study. This was due to its very bright colour, not its grain. This said there are some opportunities for aspen. It was generally viewed to have a modern and cool look. This look was popular with younger urban respondents. Kitchen cabinets were the best application prospect for aspen.

Amabilis fir

No notable results, positive or negative, emerged for amabilis fir.

Douglas fir (Old, Second)

Second growth Douglas fir was a popular sample set in the study. Flat grain was viewed as warm, but not classic. Overall, it was viewed to be in the top half of the samples as most attractive. Edge grain second growth Douglas fir on the other hand was highly cited as least attractive. This was due to its very pronounced grain. When both flat and edge grain appeared in the same survey the flat grain was viewed as most attractive of all samples and the edge grain was viewed as least attractive. There is a niche for edge grain however. It was viewed as modern, distinctive, and to a lesser extent exclusive. It was more popular with men and with Ontario respondents.

Western hemlock (Old, Second)

Old growth hemlock in the flat profile showed strongly in the study. Its erratic grain pattern was viewed as an exclusive and sometimes natural look. It was generally chosen for use in cabinets and floors. Bedroom furniture is the best furniture prospect.

Lodgepole pine (clear, major blue stain, minor blue stain)

Lodgepole pine generally did not register as an attractive or non-attractive species. Edge grain lodgepole pine was seen to have a natural look.

Blue-stained samples were viewed to be very unattractive in general. Some respondents did chose these samples for a cool, natural, and distinctive look. The sample with mild blue stain was a surprise choice for bedroom furniture.

Western larch

This is the top softwood species in the study. Western larch was viewed as both warm and classic for its deep red tone. In the survey setup with two industry standards western larch was the clear favourite for most attractive. It was chosen over red oak for flooring. Western larch was strong for all furniture applications and for flooring.

Subalpine fir

Subalpine fir was a surprisingly popular species. In the flat grain profile it was popular for its gradual transition for earlywood to latewood, giving it a clean and natural look. Bedroom furniture is the best prospect for subalpine fir.

Tamarack

Due to a sample with significant defects no clear conclusions can be made about tamarack.

Red oak

Red oak was noted for its classic look. It surprisingly was not seen to be a warm species. The application where it faired well against the other species was floors, a traditional market for red oak.

Sugar maple

Sugar maple was viewed as modern and cool, the two least important attributes. It is interesting that it did finish strong for kitchen cabinets, a current strong market for the species in new homes and renovations.

Applications

Furniture

In general, respondents were seeking a warm look for furniture. For diningroom and to a lesser extent livingroom furniture respondents also looked for a classic look. In bedrooms there were some respondents who chose a lighter natural look.

Interior finish

Of all application looked at in this study, kitchen cabinets saw respondents being most adventuresome. Though a warm look still dominated, a good portion of respondents chose lighter cabinets, and cabinets with distinct grain patterns. For wood floors respondents usually chose species with warm red tones and soft grain patterns. Wood moldings did not generate any significant trends.

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71. Tabarsi, E. 2002. Suitability of oriented strand board for upholstered furniture : market analysis. FPInnovations Record #: W-1861.

A market study was conducted on the potential of OSB products in the Canadian upholstered household furniture sector. Five large upholstered furniture manufacturers across Canada were selected for an in-depth personal interview and mill visit. The information gathered in this study was intended to aid OSB manufacturers expand their markets within the upholstered furniture sector. It is projected that the North American OSB production will increase from the 20.4 BSF in 2000 to 24.8 BSF by 2004. On the other hand, plywood production is projected to decrease from 20.3 BSF to 17.5 BSF in the same period of time (Wood Markets, 2000). There are 10 new OSB mills expected to be built between 2000 to 2003, four of which will be in the US South, another two in Eastern Canada and the remaining four in Western Canada. This will result in an estimated increased production of 1.5 BSF per year for the next three years. The excess capacity of OSB in North America will force production capacity rates down from 97% in 1999 to as low as 85% within the next few years (Wood Markets, 2000).

Currently, more than 65% of the total volume of OSB produced in North America is used in home construction, compared to only 4% for industrial markets (the balance going to repair & remodeling at 19%, non-residential construction at 10%, and export at 2%). With the excess OSB capacity projected for the near future, alternative markets will soon have to be explored. To ensure future success, OSB manufacturers would have to rely not only on the commodity markets, but also focus on industrial, and other specialty markets. One such market that demands more attention is the upholstered furniture market.

The study results indicate that some upholstered furniture manufacturers have already started using limited amounts of OSB products in their furniture frames. In particular, two respondents reported using OSB in areas such as front rails and back, side arms, and armrests. Respondents were asked their opinion on the advantages and disadvantages of using OSB in their upholstery furniture frames. Some of the main advantages of using OSB included cost, product consistency, availability, low labor requirement, low product wastage, and overall a cleaner product to work with. On the other hand, some of the draw backs of using OSB included low staple holding ability on the edges, lower strength in areas perpendicular to the surface (armrest) as compared with hardwood lumber, surface roughness, and greater saw blade and tool wear.

A concurrent technical study was carried out to identify gaps in the performance of OSB products accepted by upholstered furniture manufacturers and products currently being manufactured by Canadian producers. The technical study identified differences in both basic panel properties like bending strength, stiffness and internal bond, and in fastener holding properties. Fastener holding properties were particularly sensitive to localized density variation in the OSB. Overall panel density, density profile and resin content also affected basic panel properties and fastener holding.

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72. Fell, D., Robichaud, F. 2002. Attributes demanded in single-family walls. FPInnovations Record #: W-1862.

This study aims at assessing the changes happening within the residential construction industry with respect to walls. There are three major goals of this study. The first is to assess the attributes demanded by builders in single family wall products and systems. The second is to assess product usage and substitution in single-family walls. The third aim is to assess the move to component building in residential walls.

A mail out survey was sent to single-family homebuilders in the US, one randomly drawn list of builders plus a list of the top 100 builders in the country. The survey covered builders concerns, attributes demanded in walls, and products and systems used for walls.

Results indicated that energy codes were the top concern of builders. Interestingly, very few builders were concerned with engineered wood or prefabricated systems availability, but lumber availability was considered a constraint by some firms, especially the large ones.

With respect to walls attributes it is clear that the most important attribute of a wall is straightness and square. However, the next three most important attributes are related to on-site issues; speed of assembly, easy to handle, and low on-site waste. This was especially true for large builders. Cost factored in as moderately important with installed cost finishing ahead of material cost.

With respect to walls systems it was found that over 40% of builders have tried prefabricated wood walls. This was strongest in the North. Large builders also were high users of prefabricated wood walls. Prefabricated exterior walls were more common than prefabricated interior walls. Many builders, especially those in the West, used site-built steel for interior walls. In fact, it would appear that of the prefabricated wood interior walls and site-built steel are substitutes.

Labour availability is an equal, if not greater, factor than product availability in the competition among building products and systems for residential construction today. Further, demographic forecasts show labour availability decreasing into the future. At the same time the consolidation of residential building firms is giving rise to more automation and off-site building. For these reasons, it is safe to assume that prefabricated building will only increase into the future. Therefore, it is imperative that the wood products industry defines how the competitive advantage their products have always had in the residential construction industry can be adapted and maintained in an era of prefabricated construction.

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73. Gaston, C. 2002. Maintenance of market information databases. Report : 138p. (Canadian Forest Service No. 21) 2713 Record #: W-1867.

Maintenance of Market Information Databases reports the Markets and Economics Group’s efforts in recording wood products trade and end-use market intelligence.

The goal of this ongoing project is to maintain Forintek’s market intelligence on global wood use. The key objectives are to maintain trade-flow databases on all wood products, primary and secondary (volumes and unit values), maintain the literature/effort review databases, and to keep up with general market intelligence in all Canadian wood product markets.

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74. Gaston, C. 2002. An assessment of market opportunities for western Canadian aspen in the United States, Japan and Europe. FPInnovations Record #: W-1896.

This study is a preliminary investigation of market demand for Western Canadian aspen in three major market places, the United States, Japan and Western Europe. As a preliminary investigation, there was no attempt to statistically characterize specifier populations. Rather, through consultations with industry, combined with the author’s personal experiences, potential specifiers were identified and selectively interviewed. This process included aspen lumber/boards at various grades, edge-glued panels, veneer, plywood, and laminated veneer lumber. Both structural and non-structural applications were considered.

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75. Gaston, C., McKeever, D.B., Tabarsi, E. 2002. Wood use in industrial markets in the United States – 2000. FPInnovations Record #: W-1901.

The main objective of this study was to gather information on the volume of wood products used by industrial manufacturers across the United States. This report details the most comprehensive estimate of softwood and hardwood lumber and non-structural wood-based panel usage in industrial applications since a USDA Forest Service study done for 1977 (McKeever and Martens, 1983). Combined with a more detailed analysis by the APA-the Engineered Wood Association for structural wood-based panels for 1998 (APA, 1999), the wood products industry now has fairly reliable and up-to-date information of wood usage in this significant end-use market in the United States.

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76. Fell, D., Hansen, E.N., Punches, J. 2002. Segmenting single-family home builders on a measure of innovativeness. FPInnovations Record #: W-1936.

The past decade has seen major shifts in the types of building materials specified by single-family home builders. With respect to wood products, engineered wood has displaced traditional materials, especially in joist and sheathing applications, e.g., I-joists and oriented strandboard. However, these two products were on the market long before their explosive growth in the 1990s. It is the early adopters that established these products in the building community and provided the foundation for the market growth of the past decade. This study segments single-family home builders on their tendency to adopt new technologies relatively early or late and then provides a demographic and communication profile of each segment. In 1998, 200 single-family homebuilders (SIC 1521) in Washington, Oregon, and California were surveyed regarding their use of 9 innovative building products. These firms were then assigned to adopter groups based on both the number of innovative products used, and the time of first use of each product relative to other builders. Upon profiling these adopter groups, it was found that the most innovative builders tended to be larger firms building high-end homes. These builders also generated the greatest proportion of their revenues from new construction, as opposed to the repair and remodeling business.

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77. Robichaud, F., Fell, D. 2002. Prefabricated walls and roof trusses in U.S. residential markets. FPInnovations Record #: E-3705.

In a recent report, the authors found that the market share for prefabricated wall panels in the U.S. single-family construction stood at 18% in 2001. The usage of structural components such as prefabricated wall panels has been increasing mainly due to the consolidation of the homebuilding community, which leads larger builders to look for gains in efficiency, and to the lack of qualified labour. The adoption of prefabricated wall panels is significantly more associated with larger builders and, geographically, is concentrated in the U.S. North.

This study is meant to identify fundamental trends in North American housing and their impact on the wood products industry. Structural components are bound to play an increasing role in the housing industry. As roof truss manufacturers were felt to be the most likely to enter the wall panel market, a survey instrument was implemented to characterize the structural components industry. In addition, since the components sector consumes about a third of all the lumber going into new residential housing, it was important to assess the satisfaction of structural component manufacturers with softwood lumber and panels.

Results show a tendency to greater production of wall panels in the North, which is in line with the wider use of the product in this region compared to the South and West. In wall panels, spruce-pine-fir (SPF) was by far the preferred species group. In roof trusses, however, the most frequently used species is southern yellow pine (SYP). Opportunities therefore exist for some Canadian species to increase their market share in U.S. roof trusses plants, although SYP is highly competitively priced as well as seen by many components manufacturers as the only species their consumers would accept in roof trusses. The volatility of lumber and structural panel prices was the most negative attribute for component manufacturers, and wane came second for lumber. Structural panel consumers were generally more satisfied with the product than lumber consumers.

In the eyes of component manufacturers, the ideal situation would consist in being supplied by a distributor/wholesaler for personal contacts, product range and payment terms, at the price of a direct sale. One important observation was that pro-dealers already serving the homebuilding industry were increasingly providing builders with complete solutions, of which structural components –roof trusses, floor trusses and wall panels- were a part.

As automated technologies for producing wall panels and roof trusses are spreading at a brisk pace among component manufacturers, builders and pro-dealers, there is an opportunity for softwood lumber producers to focus on straight and wane-free lumber dedicated to components. This report concludes that the inroads of automation will only reinforce the need for high quality lumber.

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78. Fell, D., Gaston, C. 2001. Do-it-yourself markets in western Canada. FPInnovations Record #: W-1734.

The objective of this project was to characterize the repair and remodeling (R&R) activities of homeowners in Western Canada, with special emphasis on do-it-yourself (DIY) activities. It is hoped that the information generated will offer wood product manufacturers important background information in their service of this large market segment.

3,000 mail surveys were sent to owner-occupied households in Alberta and British Columbia, yielding roughly 250 completed responses. Highlights of the information gathered from this survey include:

Average expenditures of respondents on DIY projects in 2000 were $2,389, of which 45% was on wood products. Home centres were the major source of DIY purchases, representing 52% of all DIY purchases. Home centres were also the top source for wood product purchases, with lumberyards a close second. The most important attribute considered in the purchase of DIY products is long-term durability. This is followed by quality, ease of maintenance, and appearance. It is interesting that value/cost rated a lower as an important attribute. The leading motivation for doing DIY projects was for respondents to make their homes look better. Rural respondents were more likely to say they do DIY projects for the enjoyment of the activity. Males and females were equally comfortable building small projects, but females grew less comfortable than males as project complexity increased. Rural respondents were more comfortable than other respondents on the most complex projects. The highest rated source for DIY information was from personal experience. Females rated their own experience lower than males, instead rating the experience of friends and family as their top source for DIY information. Females also rated stores, and more specifically store demonstrations, literature support and workshops more important than males. Packages are becoming an increasingly common way to purchase and perform a DIY project. Over 60% of respondents had purchased shelving packages for DIY in the past, followed by sheds and fences at just over 30% each.

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79. Fell, D., Gaston, C., Hansen, E., Hovgaard, A. 2001. Attributes demanded in single-family floor systems. FPInnovations Record #: W-1735.

The objective of this project was to provide a baseline evaluation of the market fit of new and existing structural floor systems in residential construction. The project focuses on the attributes that are demanded by specifiers of floor systems and the tradeoffs made among attributes when designing and building these systems. This information will aid product manufacturers and the research community in better meeting market demands.

The project identified specific attributes that are being demanded of floor systems (including ease of design, ease of construction, costs, safety factors, serviceability, performance, durability, indoor air quality, and walking comfort), and evaluated the trade-off made among these attributes in design/construction. The latter was accomplished through a mail survey of single-family homebuilders throughout North America. Finally, the homebuilders that filled out the survey were asked to offer a detailed description of the installed floors in the last house the built in 1999.

The results showed that the respondent homebuilders the three most important floor attributes are, in order, dimensional stability, low installed cost, and ease of on-site construction. 57% of the respondents installed solid wood floors in 1999, followed by 23 % wood I-joists, 9% parallel chord trusses and the balance concrete. When rating floor type against attributes, wood I-joists performed the highest against the top three just mentioned, as well as scoring top marks in design flexibility, technical support, walking comfort and low environmental impact. Out of 15 attributes investigated, wood generally scored higher ratings than concrete except for vibration, sound transmission and fire resistance. It is important to note that solid wood floors scored the lowest of all building materials when it came to the number one attribute, dimensional stability.

Results of this study lead to recommendations for extension and/or further research in the following areas;

1. Dimensional stability of solid wood joists.

2. Vibrations in wood floors.

3. Technical support for using solid wood. .

4. Technical transfer on the environmental performance of wood.

5. Further analysis of floors database for specific inquiries.

6. Creation of products/practices/performance databases for walls and roofs.

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80. Gaston, C., Kozak. R., O’Connor, J., Fell, D. 2001. Potential for increased wood-use in N.A. [North American] non-residential markets. FPInnovations Record #: W-1736.

At US$273.5 billion in 1999, the total value of non-residential construction “put-in-place” in the U.S. was 80% that of new residential construction. Non-residential is a substantial market for construction materials, yet not one penetrated by wood. The volume of lumber used in non-residential construction was less than 11% of the volume used in residential (not including repairs and renovation), and 11% of the volume used in residential for structural panels.

The primary goal of this study was to determine the potential for increased use of structural and non-structural wood products in North American non-residential construction markets. Specific objectives of the study were to:

provide information pertaining to the types of buildings that are currently being designed and constructed in the non-residential sector; determine the extent to which wood products are used in this sector; determine whether wood products have made any inroads into this market based on a comparative time series analysis of current data and data collected seven years previous; identify opportunities that may exist and provide recommendations for promotional strategies that serve to open up markets for wood products in the North American non-residential sector; determine barriers to wider uses of wood or threats to current uses of wood from the specifiers point of view; document existing perceptions about wood; and identify opportunities for improved technology transfer, and areas where design-oriented information is lacking.

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81. Fell, D., Gaston, C. 2001. Material selection for outdoor projects in western Canada. FPInnovations Record #: W-1737.

In the fall of 2000, exit surveys of home centre consumers were executed in four western Canadian cities. These computer-driven surveys collected information on general do-it-yourself (DIY) activities, and then focused more specifically on outdoor projects such as decks and fences.

Respondents in detached homes reported average expenditures of $10,207 in the past five years on DIY activities. This was much lower for those in multi-family homes at $4,006. Of the 613 respondents, 38% reported building a new deck or remodeling an existing deck in the past five years. The average deck size was 308 square feet. Treated wood was used for 45% of these decks, naturally durable wood for 26%, and non-treated wood for 13%. Average expenditures on a deck were $1,732 for DIY projects and $3,578 when a contractor was hired.

Fences were built by 36% of respondents in the past five years. In contrast to decks, 45% of fences were built with naturally durable wood and 28% with treated wood. Metal and wire fences factored in at 13%. The average fence was 5.7 feet tall and 144 feet long. Built as a DIY project the average cost was $817. This nearly doubled to $1511 when a professional was hired.

Analysis of the surveys yielded important results for both producers and retailers of wood products for outdoor do-it-yourself projects. Probably the most significant of these results is the degree to which consumers are willing to sacrifice other product attributes for long-lasting outdoor products. There are two directions this finding can take in market implementation.

1. From a price-point perspective consumers are willing to pay more for a longer lasting product.

2. From a maintenance perspective, the trade-off analysis indicates that consumers were willing to do more maintenance if it meant their deck would last longer.

Combined with consumer segmentation, specific product/market opportunities are indicated.

Urban consumers preferred naturally durable wood, sub-urban consumers were indifferent between treated and naturally durable wood, and rural consumers had a strong preference for treated wood. Multi-family homes, which are predominantly urban, have a strong preference for naturally durable, and radius edge decking. More than any other market segment, this group felt the strongest that a natural look and feel, and low environmental impact are important in a deck. There exists an opportunity for an upscale deck package built of premium radius-edge cedar. The package should include information on the environmental aspects of cedar. This is a prime opportunity for eco-certified products. There is an existence of an “upgrade” decking market segment demanding premium radius edge materials.

Women are less price sensitive than men when it comes to decks and other outdoor projects. However, they also expect more in the overall product package, especially on the service side. Women indicated that they were looking for products that are easy to install and maintain. Low environmental impact was also a more important consideration for women.

Overall, the existing offerings on the market for deck materials appear fit relatively well with consumer expectations. Durability is key, and new product development should continue in this area. However, upon closer examination of consumer segments it is evident that demand is not homogeneous, and a wider range of product and service offerings could capture further value for suppliers and retailers.

The heterogeneous nature of the outdoor products sector suggests that product packaging is under-utilized. While some individual deck components are branded such as specific brands of treated wood or preservatives, the opportunity to brand an entire deck package has not been exploited. The individual products exist to make these decks, but by packaging the products along a brand theme the consumer can better conceptualize the final product they are buying. Examples might include branding a deck for durability, value, use of natural (eco) materials, or prestige.

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For the first time the authors of this chapter come from outside of the secretariat, thus giving a fresh look to the Review’s sawn softwood analysis. The chapter maintains the traditional statistical tables, based on UNECE and FAO statistics, and subregional analysis.

Analysing Europe by “EU/EFTA” and “Other Europe” (principally central and eastern European countries), in line with the same break out in other chapters, the authors divulge the dynamics of the rebounding central and eastern European sawnwood markets, contrasted to the much larger western European markets, with their slower growth.

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83. Gaston, C., Fell, D. 2000. Markets for Canadian wood products in the U.S. : a gap analysis. FPInnovations Record #: W-1656.

The primary objective of this study is to assess what is and what is not known about the U.S. market for wood products. By performing this “gap of knowledge” analysis, Forintek is better able to prioritise future market research efforts while at the same time avoiding duplication of efforts. The U.S. Gap Analysis consisted of three major components. The first component is a market segmentation exercise in which U.S. markets are numerically described or segmented where possible. This exercise was intended to put a perspective on the size of the various U.S. markets. The second component was a literature review. Literature concerning the wood products and housing markets was collected and annotated, including abstracts. Sources included academic journals, government publications, trade publications, and so on. The final portion is a review of the current market research efforts taking place. This takes the form of a survey of academic, government, and association researchers. The efforts review bring to light the information which will soon be available on U.S. markets. It also helps facilitate cooperation with other market researchers and will help avoid duplication of efforts in the future.

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84. Gaston, C. 2000. Future markets for treated wood. Canadian Wood Preservation Association, Twentieth Annual Meeting, Vancouver, B.C., October 25-26, 1999. Proceedings : 79-98. FPInnovations Record #: W-1695.

Canadian exports of treated lumber to the U.S. have soared over the past few years, reflecting a resurgence of the trend for North American’s love affair for outdoor living. When considering future markets for Canadian treated wood, it is important to recognize that domestic shipments and exports to the U.S. have and will continue to dominate, primarily for decking, fencing and landscaping. In addition to new construction, repair and renovation will likely remain strong. It was estimated in 1992 that the installed value of treated wood products in Canada is over $10 billion (Carroll-Hatch International Ltd.). Extending this result to the U.S. would lead to an estimate of over $100 billion. Having said this, there are growth opportunities, both in other end-uses in North America and in other geographic markets such as North America, Japan and emerging Pacific Rim economies.

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85. Gaston, C. 1999. Japan’s value added market : wood product attributes and competition. FPInnovations Record #: W-1602.

The objective of this study is to compare wood product attributes demanded to those that can be profitably and competitively supplied to the Japanese market by the Canadian primary and secondary wood products sector. Specifically, this includes providing market research and an international trade-flow analysis to highlight areas of competitive advantage for the Canadian primary and secondary wood products sectors.

The study has been broken down into three components: the Attribute Analysis, the Competitor Analysis, and the Linkage Analysis. The first of these has been completed and reported in seven publications as follows:

Japan’s Value Added Market: Wood Product Attributes and Competition:

Attribute Analysis: Introduction and Methodology

Attribute Analysis: Building Systems

Attribute Analysis: Wood Structural Members

Attribute Analysis: Engineered Structural Products

Attribute Analysis: Interior Finish

Attribute Analysis: Wood Furniture

Attribute Analysis: Outdoor Furnishings and Decking.

The second component of the study, the Competitor Analysis, has been ongoing since the beginning of the project, and the first of two reports was released:

Japan’s Value Added Market: Wood Product Attributes and Competition:

Competitor Analysis.

Competitor Analysis One focused on the methodology employed in reconciling and organizing wood products trade data and subsequent trade-flow modelling. This report also offers an appendix of all softwood lumber trade detail used in the model, both in volume of and in unit value, from 1991 to 1997. Japan’s Value Added Market: Wood Product Attributes and Competition: Competitor Analysis Two, continues with the inclusion of categories of softwood logs and structural and non-structural panel products. Further, Competitor Analysis two offers base-line trade forecasts for all wood product categories investigated for the years 2002 and 2007, as well an illustration of “what-if” scenarios against these forecasts. This report highlights this information.

The third component of the study, the Linkage Analysis, was not scheduled for commencement in this fiscal year. However, with the addition of a new researcher, this portion of the study is ahead of schedule, with the methodology for the analysis developed. This methodology is highlighted in this report.

Japan’s Value Added Market: Wood Product Attributes and Competition: Linkage Analysis is expected for release in the summer of 1999.

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The size of the Canadian treated wood products industry has remained relatively stagnant since the late 1980s, following two decades of strong growth. This mirrors the U.S. industry, in spite of expectations for growth through the turn of the century, to be fuelled through a strong repair and remodelling (R&R) market (Resource Information Systems, Inc., 1990). The North American R&R market was indeed strong through the 1990s. The fact that treated wood products did not benefit is a reflection of a reduced desire for “outdoor living”, something that was very strong throughout the 1970s and 1980s. There has also been a degree of substitution with such products as plastic wood for decking. This paper also discusses a number of bright spots for the Canadian treated wood products industry. Statistics for the domestic industry, United States, Japan and the emerging Pacific Rim Economies are discussed, along with a look ahead.

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87. Cartwright, D., Morris, P.I., Gaston, C. 1998. Markets for termite-resistant wood products. Phase II. Market review of India, China and Taiwan. FPInnovations Record #: W-1500.

Termite-resistant wood products have been identified as a potential value-added product opportunity for the Canadian wood products industry. This market identification project was conducted in two phases, the first of which reviewed six potential markets and identified India, China and Taiwan as warranting further review. This Phase II report summarizes the results of detailed market investigations that included a visit to each country and interviews with key contacts. It is intended to provide exporters with an indication of the market potential and how the market can be developed.

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88. Gaston, C., Lum, C. 1997. North American and Japan market access : model development and application. FPInnovations Record #: W-1412.

Canada is a resource rich country which relies heavily on its exports, with forest products being the single largest contributor to the trade surplus. For this reason, the study of trade-flows and market access issues is considered paramount to the forest industries, and in turn, Canada’s prosperity. The initial objectives of this project were: 1. To acquire wood product flow and market access information for Canadian product consumption in North America and Japan, with an emphasis on regulations (codes and standards); 2. To develop a particular market opportunity in one major non-residential structural wood product application in North America and/or Japan by initiating key codes and standards activities. Related to the first objective, it is recognized that virtually no solid wood product trade analysis has been reported in the literature beyond very broad aggregates, such as “softwood lumber”. Given the diverse nature of wood product supply and demand (including species and grade of lumber), this greatly obscures the information used by government, forest product researchers and industry. The development of a data matrix and forecasting model with sufficient product detail will greatly aid in the identification of areas of competitive advantage that Canadian products possess (or potentially possess). As a result, two activities have been undertaken in the first year of this project. The first was to determine the extent of existing trade modelling efforts in North America and/or Japan, to avoid duplication and foster synergies. It was discovered that the Canadian Forest Service’s Industry, Economics and Program Branch has been, and continues to develop, a model of the N.A. solid wood sector in conjunction with the USDA Forest Products Laboratory in Madison. It was decided that the strongest support to these efforts could be obtained by focusing efforts on the extension of the product detail, and to conceptualize methods in which such detail could be incorporated into existing efforts. This constituted the second effort; a cross-section of the quantitative and qualitative information discovered is reported here. To address the second objective, the market for finger-jointed and MSR lumber use in wood trusses were investigated, including the identification of codes and standards barriers. However, the identification of the wood truss market has lead to tremendous technical product-related issues which must be dealt with before market access issues can be properly identified. This has lead to a separate proposed effort in conjunction with the Western Wood Truss Association of British Columbia. Due to the problems associated with the second project objective, and industry concerns heard at the Forintek Technical Advisory Committee Meetings over the broad scope of the first objective, this project is being terminated in favour of new project proposal. The concerns of industry were at least partially supported by the results of this project; it was determined that the level of wood product detail available is insufficient to adequately deal with market access issues. While the importance of identifying trade-flow trends has not diminished, the need to identify specific attributes of wood products in end-use applications has become clear, both in the identification of competitive threats from other wood products and non-wood substitutions. Thus, the new proposal is a natural extension of North America and Japan Market Access.

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This report summarizes work undertaken during Phase III of the Sustainable Construction Materials Project. The report also serves as a bridge from the original work program to an expanded program that will be started in 1995. The project is designed to assess the environmental impacts of various building materials from a life cycle perspective. The focus to date has been on steel, wood and concrete building products in structural applications. The ultimate project objectives are to contribute to Canada’s Green Plan by developing a systems model (the Environmental Design Model) to assess the environmental consequences of using alternative building materials in defined applications; providing objective, publicly available information about the relative fit of alternative building materials within a holistic sustainable development framework; and providing direction for building products R&D which will minimize environmental impacts through more efficient use of natural resources and building materials.

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