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Forintek Canada Corp. BC Wood Specialties Group and Forintek Canada The Specialty Wood Products Network Presentation to Island Coast Economic Trust November.

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Presentation on theme: "Forintek Canada Corp. BC Wood Specialties Group and Forintek Canada The Specialty Wood Products Network Presentation to Island Coast Economic Trust November."— Presentation transcript:

1 Forintek Canada Corp. BC Wood Specialties Group and Forintek Canada The Specialty Wood Products Network Presentation to Island Coast Economic Trust November 17th, 2006 Bill Downing, CEO, BC Wood

2 BC Wood Specialties Group Specialty Wood Products Industry A Company Perspective – Cedarland Specialty Wood Products Network Community Participation Forintek Canada Corp. Agenda

3 Forintek Canada Corp. BC Wood Specialties Group Established in 1989, BC Wood is a not-for-profit industry association of over 250 members, dedicated to growing BCs value-added industry. Our mission statement is: To assist BCs secondary wood product manufacturers to grow faster by helping them access and exploit markets that they would not otherwise enter. By doing this BC Wood will maximize the dollar value of BC fibre and minimize the business risk by diversifying our members market activities.

4 Forintek Canada Corp. BC Wood Specialties Group Identify: BC Wood uses the experience of BC-based and in-market staff and member firms, along with the most recent market research, to Identify specific opportunities. Connect: Connect BC manufacturers of value-added wood products with buyers - tradeshows, trade missions, seminars, WWIS, Global Buyers Mission Engage: Assistance with logistics such as overcoming barriers (e.g. language, cultural and regulatory issues), marketing material, following up on leads and finding distributors and/or agents

5 Forintek Canada Corp. Specialty Wood Products Industry Remanufactured ProductsLumber specialties Custom processing Cutstock Decking Sawmill specialties Fencing Siding Boxes, bins and crates Engineered Wood ProductsLaminated beams Trusses Panel boards Treated wood Laminated veneer lumber MillworkDoors Windows Moulding Flooring Architectural woodwork Turned wood Stairs CabinetsKitchen cabinets Vanity cabinets Cabinets doors Countertops FurnitureHousehold RTA Commercial & Institutional Patio Pre-Built HomesPre-fab buildings Log Homes and Timber FrameLog homes Post & Beam Timber frame homes Industry Product Sector

6 Forintek Canada Corp. Shipment Value 2004 Total: $14.5 BN Source: Woodbridge Associates Specialty Wood Products Industry Value-added industry on Vancouver Island represents approximately 1,330 jobs and $269 million in sales/revenue

7 Opportunity: The BC government has recognized that secondary manufacturing has the potential to play an increasingly significant role in maintaining the competitiveness of British Columbias wood products industry. Growing the Value Added Industry in British Columbia - Strategic Directions – BC Ministry of Forests 2005 Forintek Canada Corp. Specialty Wood Products Industry

8 Forintek Canada Corp. Significant Potential Source: Woodbridge Associates Specialty Wood Products Industry

9 volume to value economic zoning outsourcing optimizing the value-chain clustering revised tenure system tax incentives Forintek Canada Corp. Specialty Wood Products Industry

10 Entrepreneur: An individual who organizes production, bears the associated risks, and reaps any resultant profits Forintek Canada Corp. Specialty Wood Products Industry New ProductSalesOpportunity New ProcessLower Costs Opportunity

11 Forintek Canada Corp. Timber Resource Log Sorting & Merchandising & Exporting & Custom Cutting Primary Lumber Manufacturing Secondary Specialty Wood Products Manufacturing Customers Traditional Supply Driven PUSH Commodity Lumber Flow SWPD Demand Driven PULL Specialty Wood Products Flow SWPN Concept SPECIALTY WOOD PRODUCTS NETWORK Commodity Flow $ Margin Add Best Fit Use Specialty Wood Products

12 Forintek Canada Corp. Cedarland Forest Products

13 Forintek Canada Corp. Cedarland Forest Products Genesis of a new product! 2001 - New distributor in UK/Ireland 2003 - Met with architect in Ireland 2004 - Mexican buyer 2004 - Sample panels shipped to Europe - Tradeshows in Ireland/UK - Demand is confirmed for an commercial exterior panel

14 Forintek Canada Corp. Cedarland Forest Products Product Development Product Specifications Gluing Coatings Protective Fire Turn-key connector/fastener system

15 Forintek Canada Corp. Cedarland Forest Products Production Investigated facilities in WA/OR/BC Focused on BC because of multiple plants Production split between Snowcap, Central Island Cedar and Canwood. Difficult environment for quality control Production now underway

16 Forintek Canada Corp. Cedarland Forest Products Summary Huge investment for a small company Only possible because Cedarland had the resources (time, capital and RM). But the story is not over - needs help with training, more capital and marketing

17 Forintek Canada Corp. Specialty Wood Products Network Marketing and Market Intelligence Product Development Innovative technology application Access to skilled people (Operational and Management) Business planning and entrepreneurial management Access to capital Access to raw material

18 Forintek Canada Corp. The Specialty Wood Products Network OpportunitySalesProduct Market IntelligenceProduct Development Production Technology Skills Training Raw Material Market Development Market Access Capital and Business Planning

19 Forintek Canada Corp. Current Approach BC Wood Specialties Group delivers the marketing programs. Forintek Canada delivers the technology transfer and product development program The Specialty Wood Products Network

20 Forintek Canada Corp. New Approach BC Wood Specialties Group and Forintek Canada propose to join forces (leverage strengths and resources) to create a new platform that better services the secondary wood products sectors in BC. SWP Network will act as a single point of service delivery (contact) for BC manufacturers. The Specialty Wood Products Network

21 Forintek Canada Corp. Direct Delivery by SWP Network -Market Development, Market Access and Market Intelligence Services -Technology Transfer: Implementation and Process Improvement -Product Development -Raw Material Sourcing Sub-Contracted Delivery -Skills Development -Business Planning -Capital Sourcing The Specialty Wood Products Network

22 Forintek Canada Corp. Industry Marketing Prod. Dev Tech Transfer Raw Material Sourcing TrainingBusiness PlanningCapital The Specialty Wood Products Network

23 Forintek Canada Corp. SWP Network - Structure and Governance SWP Network Board of Directors Japan China United States European Union Korea Marketing Advisor Technology Advisor Advisory Committee Finance Admin Marcom Technology In-Market Staff F&AMarketing Raw Material Raw Materials Advisor Raw Material Advisor Sector Reman EWP Millwork LHTF Pre-Fab Furniture Cabinet Note: Some advisors will service multiple sectors.

24 Forintek Canada Corp. Fund an advisor on Vancouver Island Access to capital and HR. Infrastructure - build with wood and create a local market! Community Participation

25 Forintek Canada Corp. The Specialty Wood Products Network … The impact of traditional comparative factors such as labour costs, interest rates, exchange rates, security of raw material supply, physical infrastructure, distance to market and economies of scale are inescapable, and some other regions of the world may have an advantage over BC in various combination of these factors. However, studies have shown that qualitative aspects such as management capability, entrepreneurial orientation, market knowledge, work force skills, innovation and adoption of new technologies are often what determine successful performance. Shultz and Gorley (2006)

26 Forintek Canada Corp. Thank You


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