Looking up to Ganadian lumber

Canadiran forest products companies have been selling inm the eastern U.S. for many ysafs, so tbey have been able to wak out most of tbe complexities now that th€y are increasing shipments into other parts of the country. Many of the complications were resolved with the innovations in phones, for machines and computers. And Canadian companies do have something valuable to offer, namely supply. According to Oe Canadian Wood Council, nearly half of the nation's 2.5 billion acres is forested and half of that (600 million acres) is available for commercial forestry. This massive resource accounts for lSVo of the world's softwood timber, ftom which Canada produces ll% of the world's lumber. Over half of Canada's annual production (about 13 billion b.f. of lunber) is exported to Oe U.S., meeting over 25% of U.S. lumber needs.

Keith Alsop, assistant salas manager, Olympic Industries, North Vancouver, British Columbia predicts the supply crunch will make even more American companies look north: "Whether an American company calls us directly or if he calls a wholesaler in his own backyard, somebody will still have to call up here to get the wood." Olympic Industries is the only Canadian-based of the 10 companies owned by Forest City Trading Group, Portlan( Or., yet nearly 857o of their sales are to the U.S.

And it seems that Canada should dso be able to better service its own wood products. "If somebody orders Canadian spruc€ or cedar, in our opinion we are bett€r able to service him because we see things from the mill's point of view, as opposed to the U.S. wholesaler calling the Canadian market at the customer end," Alsop says. "We're more in touch with the supply end of it. We visit the mills frequently and have established relationsbips with tbem. We see the people, the plants and the products. lVe're better able to understand Oeir problems, and the politics of the country and of the province. However, if they want southern yellow pine, now that's a different story."

Tbe difference in cunency doesn't present too many difficulties since many Canadian wholesalers and mills are constantly buying U.S. funds and handle the excbange internally. "The rate of exchange is no problem," claims Chris Lunn, Black Tusk Forest Products, Langley, B.C. "It's just a part of doing business."

"It's dl worked out in the price," adds Alvin Otsig, Allnar Lumber Distributors, South Burnaby, B.C. "It's all priced out. But a good tine (for U.S. companies) to buy is when their dollar is high and ous is low."

Canadian companies have been up against the 6Vo countervailing duty, but most think it won't hold. "Like many Canadian companies, we choose not to take the duty out, figuring we will get a refund anyway," says Alsop. "We also can't know where shipments will end up; we may be selling to a reloader who's going to turn around and send it somePlace else. But we are of the oPinion the duty will not hold and all the monies collected will be refunded."

Marson sees a growing U.S. reliance on Canadian wood. "In the long-tenn, my personal experience is yes, it will increase. The timber supply situation in the Nonthwest doesn't seem to be getting any better, and we will become more dependent on our neighbors !o the north."

Canadian Softwood Species GrouPs

(ittdividtul specics h each grory hatte similar strength /qpearawe)

. Spruce-Pine-Fir - spruce (except coast Sitka spruce), jack pine, lodgepole pine, balsam fr, alpine fir

. Douglas fir-Iarch - Douglas fir, western larch HemFir - Pacific coast hemlock, amabilis fir

. Norttrern Species - western red cedar