Presentation on theme: "Global Demand for US Hardwood Exports. What is AHEC? The American Hardwood Export Council (AHEC), founded in 1988, is an umbrella organization that represents."— Presentation transcript:
What is AHEC? The American Hardwood Export Council (AHEC), founded in 1988, is an umbrella organization that represents U.S. hardwood exporting companies and major U.S. hardwood product trade associations. The purpose of AHEC is to increase the value and volume of U.S. value-added hardwood exports through overseas market development and promotional activities and increase consumption of wood worldwide.
Why Exports Matter Fourth largest market for hardwood production after pallets, furniture, and dimension/components This gap is widening. Since 1983, exports of value-added hardwood products have increased an average of 6.4% by volume and 10.1% by value per annum. Absorbs approximately 9% of production by volume, but over 14% by value
U.S. Hardwood Exports 1986-2002 AHEC Formed $ Million
Top 10 Markets for Hardwood Lumber: 1990 & 2002 Source: USDA
Top Markets for Red Alder Lumber: 2000-2002 (Cubic Meters) Source: The World Trade Atlas
Value of Hardwood Lumber Exports to Japan 1995-2002 ($ Thousand F.A.S. Value) Source: US Census Bureau
Japan Market Overview Until late 1990’s Japan was second largest market for U.S. hardwood products; Manufacturing moved offshore, required shift in promotional strategy; AHEC’s focus moved from promoting to manufacturers and traders to specifiers (interior designers/architects) and consumers via event driven public relations
Japan’s Furniture Imports Custom statistics, JapaneseMinistry of Finance
Value of Hardwood Lumber Exports to Korea 1995-2002 ($ Thousands F.A.S. value) Source: US Census Bureau
Market Challenges/ Opportunities Relocation of Manufacturing Facilities Offshore Emerging remodeling market segment --Government removed “ cap ” on resale prices Price sensitive Untrained specifiers and designers AHEC/AF&PA Korea Office September 2002
US Hardwood Exports to China Year to year increase of nearly $34 million over 2002 Volume of lumber exports increase more than 62% ($ Thousands FAS value)
China: Hardwood Import Market Share Source: Global Trade Index
Top Five Lumber Species Exported to China ($ Thousands FAS value)
Demand Drivers GDP and Population Growth –Rising Income Construction Furniture, Architectural Woodwork and Packaging Relative Price Competitiveness with Other Materials Historical and Cultural Factors –Consumer Tastes
GDP Growth % Change from Previous Year Source: The World bank..
Chinese Consumption: Did You Know….? GM sold more cars in Shanghai than any other city in 2002 China buys more camera equipment than Japan. More cell phones than the U.S. More televisions than France. More cars than Germany
Real Estate Boom Housing Privatization-1999 “Turnkey” Construction-2002 Increasingly sophisticated and wealthy consumers driving domestic demand for higher quality interior products.
Chinese Building Activity Total Floor Space In Billions of cubic meters Source: Chinese Ministry of Construction, 2001
Quality Sample Program Interior of model home in Shanghai outfitted with U.S. hardwoods