Wood Exports to China on Record Pace

Shipments of softwood lumber and logs from the U.S. and Canada to China will reach a record high in 2011, according to Wood Resource Quarterly.

In 2010, the two countries exported $1.3 billion worth of softwood products. If the pace seen in the first seven months of 2011 continues, the two countries' exports will more than double from last year, reaching a record $2.6 billion.

Despite the disappointing developments in the U.S. housing sector during the past year, lumber production in both the U.S. and Canada has been higher in 2011 than in 2010. Many sawmills in the western U.S. and Canada have benefitted from the dramatic increase in demand from Chinese lumber consumers. Some sawmills are exporting tp to 3O7o to 40Vo of their production to the fast developing market in Asia.

The biggest increase in shipments the past year has been that of softwood lumber from British Columbia. Much of this lumber comes from the massive supply of timber that has been killed by the pine beetle over the past l5 years. The value of lumber shipments from Canada has increased from just $55 million in 2005 to an estimated $ l 2 billion this year.

While Canada has drastically raised lumber shipments to China in recent years, the U.S. has instead expanded exportation of logs to Chinese lumber manufacturers. This year, U.S. West Coast log exporters are projected to ship logs valued at over $900 million, a jump from $42 million dollars just four years ago.

The U.S. and Canada have also expanded their importance in the Chinese wood market. In 2005. onlv

4Vo of all softwood logs and lumber imported into China originated from North America. Last year, the share was 187o.

North American wood suppliers have the opportunity to expand their export sales into the Chinese market in the coming years.

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Allied Buys Hawaii Supplier

Allied Building Products Corp. has completed its acquisition of Snohomish, Wa.-based distributor Pacific Source, which supplies general contractors and homeowners throughout Hawaii.

Pacific Source was founded in 1992by five owners-Kim Halverson, Rob Bruce, Carol Kinison, Mark Mason, and Doug Martin-and now has branches on the Big Island of Hawaii, Kauai and Maui.

Sonora Dealer Winds Down

Andy's Home Center, Sonora, Ca., is closing by year's end, with the retirement of owner Steve Anderson.

Anderson also cited a stagnant economy. miniscule housing starts. and increased big box competition. He started a liquidation sale Oct.31 and is no longer open on weekends.

The True Value affiliate was founded in 1957, but adopted the Andy's name in 1983.

ldaho Forest Takes Over Clearwater Milling Complex

Idaho ForestGroup, Coeur d'Alene, Id., has completed its acquisition of Clearwater Paper Corp.'s sawmill, planer mill, and dry kilns in Lewiston, Id.

The $30-million deal also includes log and hnished good inventories, timber contracts, and a promise to continue supplying chips and sawdust to Clearwater's pulp mill in Lewiston.

IFG has set Dec. 14 as the date it hopes to restart the facility, which was idled in preparation for the change of ownership.

Beacon Gets Fowler & Peth

Beacon Roofing Supply, Peabody, Ma., acquired nine-unit roofing distributor Fowler & Peth, Denver, Co.

Founded in 1948, Fowler & Peth has six locations in Colorado, two in Wyoming, and one in Nebraska, with annual sales of approximately $60 million. Co-owners Eric "Ric" Peth and Kurt Peth said the sale will facilitate quicker growth for the company and greater career growth opportunities for employees.

"Fowler & Peth is an industry leader and allows Beacon to expand our presence in the very important Denver market beyond our existing Denver branch and to serve customers in the surrounding states," said Beacon c.e.o. Paul Isabella. "Fowler &

Peth is a key component to Beacon's westward expansion plans and will be a gateway to further geographic growth for our company."

Distributor Swaps Home Base

Looking to downsize its headquarters, Lumber Products, Tualatin, Or., has swapped its three-building property for a single building nearby.

Lumber Products, which has DCs in Washington, Idaho, Montana, Utah, Nevada, Utah, Arizona and New Mexico, bought a building owned by air-holding equipment manufacturer Huntair for $7.25 million. Huntair then paid $17.7 million for Lumber Product's larger property.

Yard Burglar Sniffed Out

With an assist from a canine unit, police arrested a man accused of breaking into Parr Lumber's store in Hillsboro, Or., on Sept. 30.

Authorities say the suspect broke a store window and entered about l:20 a.m., triggering a silent alarm. After police arrived, a tracking dog named Odie found Paul A. True, 33, hiding in the lumberyard. He was arrested and charged with second-degree burglary. An accomplice is being sought.

All-American Closing Mega-Center

After 52 years in Downey, Ca., All-American Home Center is liquidating its inventory and will close its doors before the end of the year.

Founded in 1959 by father and son Irving and Lanny Gertler, All-American began as a corner market, selling a variety of home products and knick-knacks. In 1970, the Gertlers purchased land and built a 40,000-sq. ft. building, which expanded into a nearly 175,000-sq. ft. facility with more than 25 departments. Tamar Kane took over the business after her father, Lanny Gertler, died in February 2010.

The 175 employees who are losing their jobs are also mourning the loss of longtime employee Joseph Barum, 49, who committed suicide Oct. 18 at his home in Norwalk, Ca. He had worked at All-American for more than 25 years and had recently grown concerned about "economic issues and feared losing his home," according to county coroner investigators.

Death Penalty for Home Depot Killer

The man convicted of killing a manager during a February 2007 robbery at Home Depot, Tustin, Ca., has been sentenced to death.

Jason Russell Richardson, 41, was convicted of shooting Thomas Egan to death after ordering him to empty the store's safe. After the shooting, Richardson stole $500 from another store employee and fled. Authorities linked Richardson to the murder with DNA evidence found in a sock in which he was carrying ammunition.

According to prosecutors, Richardson had a criminal history for kidnapping and rape and deserved the death penalty for killing Egan like he was "swatting a fly."

New Rule Nears for Exports to EU

By Jan. l, most European Union countries will require structural lumber sold in those countries to bear a CE mark, reflecting that the product meets the standards outlined in the European structural timber standard, EN 14081-1. Producers who export structurally graded lumber to Europe will need to have been issued CE grademarks or risk having their products turned back at the port of entry.

Although the implementation date for the standard has been in flux for some time (it was originally to go into effect in July 2007), it appears now that the January 2012 implementation date is a hard deadline for most EU countries (the U.K. deadline is July 2013). At this point, the requirement applies only to structural lumber.

CE marking has been used throughout Europe since 1993 to indicate that products have met legal requirements.

In order to attain CE marking capability, producers must subscribe to an approved inspection agency, such as Pacific Lumber Inspection Bureau.

Comments Sought for New Southern Pine Design Values

The Southern Forest Products Association has posted the Southern Pine Inspection Bureau's proposed design values for visually graded dimension lumber on its website, www.southernpine.com.

On Oct. 7, SPIB announced their submittal of proposed design values, now pending approval by American Lumber Standard Committee's board of review. Prior to its next meeting-set for Jan. 5 in Washington, D.C.-ALSC is soliciting written comments from interested parties, to be received at least l0 days prior to the meeting. Direct comments to ALSC president Tom Searles, by alsc@alsc.org or fax 301-540-8004.

"These proposed design values from SPIB will help the dialog progress to a better understanding of the process, the data, and the impacts on our industry,"said SFPA president Adrian Blocker.

The last major change for visually graded dimension lumber came in 1991, when design values for southern pine and other North American species were published based on in-grade testing of full-size samples of commercially produced lumber.

Since 1994, SPIB has conducted an annual resource monitoring program developed in collaboration with the U.S. Forest Products Lab. Although the level established to trigger additional testing was never reached, overall trends in the annual test data suggested a shift in the resource mix. These trends, along with anecdotal external information, prompted SPIB to conduct a year-long program of testing and data review.

SPIB is the first rules-writing agency to submit new values. Agencies responsible for other species are in different stages of evaluating design values.

Parr Comes Through for Habitat

Parr Lumber, Hillsboro, Or., donated a truck to Habitat for Humanity Portland/IVletro East to replace a pick-up that was stolen from a Habitat construction site in Gresham, Or.

"Most of our trucks are getting very old," said Habitat executive director Steve Messinetti. "Having this opportunity to replace a vehicle that is on its last life is so valuable for this organization."

Although the stolen truck was recovered, it was damaged and its lumber rack was missing. Tools and construction materials were also stolen.

Swanson Mills Extend Downtime

Swanson Lumber instituted extended shutdowns at its plants last month, which affected 700 workers.

Contact

Sheldon Howell t50gt 874-1163

Bob Bretz t805t 995-0700

Yakama Forest Products

3191 Wesley Rd., White Swan, WA 98952 Fax 509-874-1162 www.yakama-forest.Gom

The company's sawmills in Glendale and Roseburg shut down for two weeks starting Nov. 14. Its plywood mills in Springfield and Glendale shut down for a week starting Nov. 21. All of these mills typically close for the Thanksgiving holiday weekend.

Company president Steve Swanson said demand from China has driven up the price of logs, which in turn drives up the cost of raw materials for mills in the U.S.

He added that China's demand is not much higher than it was back in the 1990s, but with such low amounts of logs coming off federal lands, it makes prices spike.