WEBINAR #1-LOCAL WOOD PRODUCTS MARKETING Harry Watt North Carolina State University and US Forest Services Wood Education and Resource Center web Thursday, January 26th, 2012

North Carolina State University Wood Products Extension Since 1950 has supported the wood products industry in North Carolina in the areas of wood education, training, troubleshooting problems, research and overall assistance in making a large variety of wood products. It is the policy of the State of North Carolina to provide equality of opportunity in education and employment for all students and employees. Educational and employment decisions should be based on factors that are germane to academic abilities or job performance. Accordingly, the North Carolina State University (NC State) does not practice or condone unlawful discrimination in any form, as defined by this policy.

Wood Education and Resource Center Is the focus of the US Forest Service effort of support of the hardwood forest industry in the states east of the Great Plains Located in Princeton, West Virginia, Our WERC projects websites = and The work upon which this webinar is based was funded in whole or in part through a grant awarded by the Wood Education and Resource Center, Northeastern Area State and Private Forestry, U.S. Forest Service. In accordance with Federal law and U.S. Department of Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. To file a complaint of discrimination, write USDA Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue, SW, Washington, DC or call (202) (voice and TDD). USDA is an equal opportunity provider and employer.

WERC Grant Project for Local Wood WERC funds grants to promote the improved utilization and marketing of hardwoods Goal is to promote the growth of locally made wood products made with US woods in the USA Want to recreate markets lost to imports to support growth of jobs and economic activity Want to provide better markets for minor hardwood species

Other Supporters of WERC Grants to NC State Wood Products Extension Independent Sawmill and Woodlot Magazine WoodShop News Magazine IWF 2012 in Atlanta-booth and lecture session Shows-NC Home Builders Association, Kentucky Wood Expo, Paul Bunyan Show

We Need a Wood Industry Turnaround Strong decline in hardwood lumber production Lots of plant closings and job losses Loss of income to forest landowners Imports continue to grow at the expense of domestic production of cabinets, furniture and millwork

Two Key Sectors Need to Turnaround for the Hardwood Industry to Succeed 1.Casegoods furniture-until recently the largest user of hardwood lumber in the US-see graph for trends 2.Government purchases of cabinets, furniture and millwork made by local manufacturers

Lots to Learn by Looking at Sectors

Hardwood Production Lessons 1.Furniture is the Big Daddy we need to regain 2.Cabinets are tied to construction and will remain flat until housing recovers-better now to concentrate on remodels and repairs 3.Furniture can use all grades and species 4.Institutional and government office purchases are now targets-especially to replace metal and plastic furniture and furnishings

Why Look at Local Buyers and Markets? 1.Lowest cost customers to pursue-backyard buyers 2.Likely for producer to be more competitive 3.Some buyers have a preference for local 4.Easier to service in design and customer support

Servicing Local Can Be Part of Servicing Other Markets Local-within a few hours Regional-within a days travel National-the USA International-the world

We Can Piggyback on the Successful Local Food Movement The public greatly supports the Local Food Movement Many who understand the LFM understand the benefits of buying wood products locally Growers of food are often landowners who have forests The LFM is well supported by state and local governments, so if we partner with the LFM we are more likely to gain the support of our governments

Non-Commodity Products Better Fit a Local Wood Products Business Model Products that can be modified to better meet the needs of customers-customers who can get what they want pay more than just getting close Small lot size manufacturing strategy can be sucessful Offer some flexibility in sizes, finish colors, species, etc. Customers want a reasonable delivery time

Going Local Means Networking Can create formal and informal networking groups Can cooperate in marketing-shows, websites, print, sales teams, delivery, etc. Gain clout with governments for promoting local businesses and awarding contracts Sharing production and marketing capabilities lowers business costs and can grow sales

Grant Project Support-Local Wood Products Website at Newsletters, Articles, Webinars Leadership Conference at WERC on Thursday, August 2 nd, 2012, cost = $35 IWF 2012 Atlanta lecture session We can sometimes make visits to companies interested in local wood products marketing

Upcoming Webinar Dates-all on Thursday Note-these dates are the last Thursday of each month except for August that would fall while at the IWF show in Atlanta (we will be there-come by and visit) Let us know what topics you want to cover next time! Recordings at February 23 rd March 29 th April 26 th May 31 st June 28 th July 26 th August 16th

Upcoming Workshops at WERC-2012 Thursday, June 7 th -New Technologies for Value Added Wood Products = Cabinets, Furniture, Millwork-$35 Equipment Software Tooling Finishes Thursday, June 14 th -Small Sawmills-$35 Ideas to grow profits and sales Equipment Lumber drying and reducing degrade Demos on equipment-sawmill, edger, resaw