Be aparrt of history

The Merchant Magazine's TSthAnniversary Issue: July L997

Your advertisement in this landmark issue provides an unparalleled opportunity to get your message before A special full-color section in the July issue will relate in words and pictures the fascinating story of lumber and building products sales and distribution in the West since L922.

thousands of extra readers.

This collector's issue also features:

. Engineered Wood Products

. Tools and Hardware

. Tbeated Wood Markets r Cerlification labels are designed to reward companies which produce or use wood from well-mhnaged sources, and to provide purchasers with an easily identiliable choice of sustainable wood products. o A lorest owner voluntarily requests an independent certification body to inspect his or her forest land. r r The certilier visits the lorest sile and determines whether lhe management meets particular standards and criteria. The forest and its raw products will be certified il and when the standards are met. r Intermediate and finished products may be sold as certified if all the wood came from certified sources, This requires an audit of the 'chain of custodt''from the log yard to the final point of sale. r The merchant's role is invenlory man. agemen| ensuring lhat certifi€d produbts (indicated by banded loads, painted boards or labeled final products) are not mixed in with non-certif ied products. r The merchant may promole certilied producls to increase sales or margins. l' ESS THAN a decade ago, many I-lin the forest products industry saw timber certification as a promising idea, but few agreed whether it was realistic. Critics saw certification as a lofty topic for discussion and conjecture among ivory tower academics, policy makers and environmental groups.

. PLUS: Expo Preuiew, a 24-page, full-color supplement in conjunction with the National Building Products Expo, being held Aug. 10-13 in Chicago.

. PLUS: 2,000 extra copies distributed at the Expo in Chicago.

Your advertisement in this important issue will have extra readership with the added bonus that this commemorative issue will be kept around and re-read many times. Extra exposure for your advertising message.

Don't be left out. Act now to be part of this once-in-alifetime issue.

Call David Cutler or Chuck Casey at (7t4') 852-1990.

What ls the goal of certification?

I Timber certification is designed lo ensurs a stable, long-term supply of highquality wood products from lorests managed with social and environmental responsibilily.

IIow does certification work?

\ilhat is a merchant's rote?

But, since then, various certification ventures have begun to take root. Some major industry spokespeople still assert that independent certification is doomed to be cost-prohibitive and unpopular with public and industry alike.

So what is the verdict in 1997? lt appears that certification is now an indisputable and significant reality in the forest products sector. Over l0 million acres of managed natural forests and plantations have been certified worldwide, and over 635 million bd. ft. of certified wood are traded annually. Many end up in highprofile items, like Jay Leno's desk on tv's Tonight Show or a new Gibson guitar line. At least l0 certified wood buyer groups have been formed in North America, Europe and Australia. There are at least eight certification bodies operating across the world's tropical, temperate and boreal forests, and there is one widely recognized label of accreditation, the check-mark logo of the Forest Stewardship Council (FSC).

The standard FSC accreditation mark and procedures ensure that, despite the proliferation of localized certifiers and tailored local solutions to the challenges of sustainable forestry, there is a broad-based set of criteria to which all accredited certifiers must adhere. More important, the single FSC label provides a clear, recognizable choice for producers and consumers.

Early critics of certification programs correctly pointed out the inherent confusion of having dozens of competing labels and claims. FSC was founded in part to resolve that issue. Unlike the ISO 14000 guidelines, an international protocol that has been touted by some industrial foresters as the better system to promote sustainable forestry, the standards of the third-party accreditation and certification system are scientifically based, measurable and provable. Timber certification is also purely market-driven and voluntary, meaning that individual companies can choose to participate only if their mission or market demands justify certification.

The idea of certifying products is not new. The U.S. Dental Association and American Heart Association selectively certify products based on measurable health and hygiene data. More environmentally and socially oriented labels have also endured the rigors of the marketplace, garnering sales for the certified comPanies: organic food, dolphin-safe tuna, childsafe appliances, labor-friendly garments and even socially responsible investment funds. When certified organic agriculture was first introduced, many felt the idea was too obscure and outside of public consciousness to ever penetrate the produce market. But "certified organic" is now a widely recognized and demanded label commanding billions of dollars in annual sales.

While figures are not available on total sales of certified wood, revenue is likely to rival or surpass those of organic agriculture within the next few years, if it does not already. One buyers' group, the U.K.'s "1995 Plus" group (over 70 companies committed to purchasing "substantial and increasing volumes" of FSC-certified wood) commands $4 billion of annual trade in wood products in the U'K. alone. Companies including Home Depot, IKEA and EuroPean home center chain B&Q likewise have committed themselves to introducing and carrying FSC-certified wood products.

Europe far surpasses North America in certified forest acreage and lumber products. Some European companies require that l00%o of their wood products will be certified in the next few years.

But some U.S. comPanies soon may begin adopting similar policies. According to Mark Eisen, director of environmental marketing for Home Depot, "In the long run I firmlY believe that those in the industry with real vision will find certification the biggest financial boon ever."

A 1995 marketing assessment bY the U.S. Forest Service, which involved over 300 participants in the forest products industry, indicates that there may already be sufficient awareness and willingness zrmong retailers, manufacturers and consumers to make certified wood a profitable and enduring phenomenon. Some of the findings include: o 40Vo were willing to pay a lOVo premium for certified merchandise' o More than 50Vo of manufacturers were willing pay a premium for certified wood.

. 96Vo of retailers and mail order catalogs responded positively to supplying and handling certified products.

. 42Vo had already received requests to buy certified products.

. 80Vo of furniture manufacturers were willing to buy certified wood.

Story at a Glance

Timber certification: time to jump on board or iust a Passing fad? consumers may or may not pay up to 10% more for certified forest Products.

Although few certification authorities agree on how deeply consumers' environmental awareness will be reflected by their spending habits' studies have shown that consumers are willing to PaY 5Vo to lOVo more for certified forest Products. Compared to the actual costs of certification, even a slight preference on the part of consumers is likely to spell higher profits.

A 1996 German government studY concluded that certification costs on tropical timber are insignificant, accounting for less than one-half of lVo of the timber's value.

Additionally, a 1994 RoPer Starch survey found that 84Vo of U.S. consumers have a better image of companies that support social and environmental causes, and two-thirds would actually switch brands or retailers to favor such corporate responsibilities' Yet, a 1992 study by the Hartman Group discovered that onlY l3Vo of consumers feel that corporations are "trustworthy sources of information about environmental matters."

Apparently, the most effective waY to benefit from green consumerism would be through an indePendent, third-party stamp of approval. The FSC certification mark, while generating clear benefits for forests and local forest industries, is a powerful marketing tool. Collins Pine Co., Chester, Ca., found that their sales to retailers and manufacturers increased by about 25Vo directly as a result of certification.

"We have long argued against stifling governmental regulations," says Collins Pine's Bill Howe. "But certification may provide the internal desire for industry to voluntarily achieve results that regulations may rarely accomplish."

Similarly, for retailers, dealing in certified woods is completely voluntary, potentially very rewarding and relatively painless. Ecotimber International, a Berkeley, Ca.-based timber merchant that tries to deal exclusively in certified woods, has seen its sales increase fourfold in the last year.

"Wholesale or retail merchants simply have to manage their inventory well, so that certified stock is kept separate from uncertified stock," says Richard Donovan, director of SmartWood, the first and largest forest products certification program, having accredited three-quarters of the world's certified forests. "The process of good inventorY management doesn't change; it's just applied to a different line of merchandise. As with any other wood, log loads are banded, boards are painted, and final products are labeled. We are not trying to re-invent the wheel here-just to get it rolling."

And the wheel does aPPear to be rolling. After a decade of debate, questions and controversy, timber certification has grown from a promising idea into a worldwide market transition. In the forest industry of the future, FSC certification labels may be as ubiquitous to wood products as Underwriters' Laboratories (UL) marks are to home appliances. Like the uL label, the FSC label promises integrity-not just of the wood, but of the forest and the comPanies from which it came.

Gertified Sources

For more informationl including'l lists of certified sotrrces,. contact the follo;w,ing:

Forest StewardshiP Council, U'S' lnitiative (the body that accredits inde' pendent certificalion programs) R.D. t' Box ]8! Waterbury, Vt. 05676; (8021 244-9257.

SmartWood (non+rofit tin$er cedification program); Rainforest Alliance, 65 Bfeecker St.,"New York, N.Y' 100.l2; (212),$77a9s0'

Scientilic Certilicalion Systems (for'proi' it certification program), 1611 Tete' graph Ave., Sto. 1111, Oaklahd;Oa;' 94612; (s10) 832-1415.

Foresl,Pioducts Buyers Grcup (certified products buyers grouP), 20 Exdange Pl., 32nd Floor, New Yoft, N.Y. 10005; p12) 4e2-06V1.