1. Global Demand for US Hardwood Exports

2. 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.

3. AHEC’s Global Reach

4. 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

5. U.S. Hardwood Exports 1986-2002 AHEC Formed $ Million

6. Top 10 Markets for Hardwood Lumber: 1990 & 2002 Source: USDA

7. Top Markets for Red Alder Lumber: 2000-2002 (Cubic Meters) Source: The World Trade Atlas

8. Value of Hardwood Lumber Exports to Japan 1995-2002 ($ Thousand F.A.S. Value) Source: US Census Bureau

9. 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

10. Japan’s Furniture Imports Custom statistics, JapaneseMinistry of Finance

11. Hang Tag Promotion: Environmental Focus

12. Eco-Furniture Design Contest

13. Value of Hardwood Lumber Exports to Korea 1995-2002 ($ Thousands F.A.S. value) Source: US Census Bureau

14. 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

15. 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)

16. China: Hardwood Import Market Share Source: Global Trade Index

17. Top Five Lumber Species Exported to China ($ Thousands FAS value)

18. 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

19. GDP Growth % Change from Previous Year Source: The World bank..

20. 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

21. Real Estate Boom Housing Privatization-1999 “Turnkey” Construction-2002 Increasingly sophisticated and wealthy consumers driving domestic demand for higher quality interior products.

22. Chinese Building Activity Total Floor Space In Billions of cubic meters Source: Chinese Ministry of Construction, 2001

23. Quality Sample Program Interior of model home in Shanghai outfitted with U.S. hardwoods

24. Quality Sample Program

25. Chinese Furniture Production and Exports: 1997-2002 Billion $US Source: China National Furniture Association

26. Major Furniture Exporters: 1998-2001 Major Furniture Exporters: 1998-2001 $US Billion. Source: CSIL Milano

27. Per Capita Wood Consumption In cubic meters per capita Source: China Timber Import Export Co/Hardwoodmarkets.com 2001

28. China Domestic Timber Output Under NFCP Source: China Timber Import Export Co/IFSA Consulting, 2001

29. China Timber Production from Plantations 1995-2015 Volume (1000 Cubic Meters) Source: China Timber Import/Export Co., 2001

30. Chinese Timber Consumption and Production: 2000-2010 Source: China Timber Import Export Co., 2001 Millions of cubic meters

31. US Hardwood Log Exports to China: 1997-2002 (Thousands of Cubic Meters) Source: USDA-FAS

32. Other Markets to Watch Southeast Asia/Vietnam Middle East Mexico Caribbean **The EU**

33. Hardwood Lumber Exports by Volume - 2002 (m 3 ) Source: US Census Bureau

34. US Hardwood Lumber Exports by Value 2002 Source: US Census Bureau ($1,000)

35. Average Unit Values of Hardwood Lumber Exports 2002 ($ per cubic meter F.A.S. Value) Source: US Census Bureau

36. Eastern European Hardwood Exports to European Union ( million euros) Source: Hardwoodmarkets.com

37. www.ahec-europe.org www.sustainablehardwoods.info

39. S.E.Asia: Market Overview Million US$

40. US Exports to Vietnam Million US$

41. Value of Hardwood Lumber Imports to Mexico 1996-2002 ($ Thousands F.A.S. value) Source: US Census Bureau

42. US Hardwood Lumber Exports by Volume - 2002 (m 3 ) Under-promoted Markets Source: US Census Bureau

43. For additional information contact : AHEC Headquarters 1111 19th Street, NW, Suite 800 Washington, DC 20036 Phone: 202/463-2720 Fax: 202/463-2787 www.ahec.org