Shanghai Surprise - Code Approval Favors Canadian Lumber

SHANGHAI CODE APPROVAL OPENS UP MARKET TO CANADIAN WOOD

SHANGHAI – Shanghai’s approval of a new wood-frame building code is a major step forward in the growing demand for Canadian wood products in China, the Honourable Lisa Raitt, Canada’s Minister of Natural Resources, and British Columbia’s Forests and Range Minister Pat Bell announced today.

“The Shanghai Local Code is the first comprehensive set of guidelines for wood-frame construction ever published in China,” said Minister Raitt. “This is a big step forward in achieving our goal of opening new markets for Canadian forest products. We are confident that the Shanghai Local Code provides a framework that will be easily adaptable to other cities and provinces across China.”

“Shanghai – a city with about four times British Columbia’s population – is now a wider, more open market for Canadian and B.C. lumber,” said Bell. “Modern wood-frame construction can now be used to meet Chinese building needs, something that previously wasn’t easily done due to complex and dated building and fire codes.”

The Shanghai Local Code is the most comprehensive and detailed code for wood-frame structures in China, addressing all technical issues related to wood-frame construction, including structural, fire, durability, energy conservation, noise transmission and construction inspection.

Canada Wood Group (an industry marketing agency supported by the federal and B.C. governments), FPInnovations (a Canadian forest products research organization) and their Shanghai counterparts began work on updating the code in 2006.

Bell made his comments while attending the official launch of the code, which took effect Sept. 1, 2009. The event was attended by more than 300 guests, including engineers, architects and building officials who worked on the code changes.

Shanghai is one of the most important markets in China for Canadian wood products. It is home to the Dream Home Canada demonstration site that showcases wood-frame design and offices for Canada Wood Group and Forestry Innovation Investment staff promoting the province’s wood products and building solutions.

Canada is the second-largest supplier to China of softwood lumber after Russia, with about 98 percent of this lumber sourced from British Columbia.

Hard times in BC Forestry

Global TV did a segment on tough times in the BC forest industry last night. Analysts are saying these are some of the toughest times in two decades for forestry. Some of the contributing factors are:

- high Canadian dollar vs US dollar

- low lumber prices

- US lumber agreement kicking in 15% duty

- slumping US housing construction

- high fuel prices

It almost seems like everything that goes against the forest industry is happening at the same time, with no positives. Many mills in the province are facing shutdowns or aren't operating. For example, six out of eight mills in Mackenzie aren't in operation right now.

Also consider, two years ago lumber prices were around $400 US, and the Canadian dollar was worth about 80 cents US. Today, lumber prices are around $210 US, and the Canadian dollar is just over par. I can't think of any other industry that has been hit so hard in the price of it's product.

Analysts expect the downturn to last at least a year, but it's hard to say how long lumber prices will stay low, and when the US housing market will turn.

If the industry does turn around, it also might have a harder time finding workers.

A new report out today warns of Canada's aging workforce.

The workforce in Canada is aging significantly, prompting concern from analysts about the impending threat of labour shortages across the country.

For the first time ever, there are just as many workers in Canada over 40 as there are under 40.

The 2006 Census findings, released Tuesday by Statistics Canada, show 15.3 per cent of Canadian workers are 55 or older and nearing retirement.

link to article:
http://news.sympatico.msn.ctv.ca/TopStories/ContentPosting

A final factor to consider is that we are in the midst of a pine beetle outbreak that will kill most of BC's lodgepole pine within the next few years. If lumber prices stay low and mills shut down, then a lot of the pine that is dead or dying will remain in the woods and will be lost to fire or rot. It's a shame, because this pine could have provided jobs and wood products, and the logged areas would have been managed to ensure new forests were established.

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Herb Doman - Forestry Titan passes away

It was sad to hear that Herb Doman passed away this week. I used to work for Western Forest Products, a company owned by Doman Industries, back in the mid 90's. Western had interests in pulp and lumber. Some time after I left the company ran into problems with too much debt, and eventually went bankrupt before re-emerging with a new share structure. That must have been tough to take for a business owner. Herb Doman started out as a truck driver in forestry and slowly built his company over time, acquiring mills and tenures. He came to Canada as a young boy with his family, actually by mistake from what I was told. His family thought the boat was going to a different destination. With all the consolidation and turmoil in the forest industry these days, there won't be many more stories like Herb Doman's in the future.

http://www.canada.com/victoriatimescolonist/news/story.html?id=3d020ac3-fa74-46ca-bc09-2b99b6e19b81&k=33269