Australasian Timber February 2015

FEBRUARY 2015

PROCESSING • PRODUCTS • DESIGN • SUPPLIERS Incorporating Australian and New Zealand Timberman – Established 1977.

• Supersized Red Stag • Importers to be kept busy • Single source solution • Ask an expert phone service • New styles of production In 2 minutes this hardwood will regenerate naturally.

See page 5.

The 7th Annual Industry Development Conference and Industry Gala Dinner is fast approaching, with less than 2 months to go.

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This program has been produced with the assistance of funding provided by the Australian Government through the Department of Industry ABN 39 946 785 543 ACN 130 528 291

AUSTRALASIAN TIMBER MAGAZINE

NEWS

3 – February 2015

Innovation in building products retailing

The US Big Box Stores. Innovation in building products retailing. Insights for treated timber suppliers.

Gary Converse Senior vice president, Osmose, USA

I

NNOVATIONS COME in all sorts of shapes and sizes.

In this case it’s the shape of a box and its size is big. We’ve become familiar in Australia with what the Americans call Big Box stores. On our shores they’re the Bunnings and Masters. On American shores they’re Home Depot, Lowe’s and Menards.

Apart from the names the other thing that separates theirs from ours is size, yep everything is bigger in the US but with a population of around 317 million people they need bigger.

In Australia we’re barely pushing 26,500 million people.

About four years ago in the US a number of companies like Home Depot, came up with the idea that if they could find very, very large empty buildings and fill them full of traditional products, like hardware, paint, nursery and treated wood etc. and also add decorative items, kitchen and bathroom, appliances, shelving and flooring ‘they would come’. And they did!

“If they could fill up this big empty space of this big box as we call it, they could generate a new type of business,” said Gary Converse, senior vice president of Osmose in the US. “It would not only attract builders and contractors to come to the store but home owners and do-it-yourselfers.

“Big box retailers have certainly changed the landscape of how we sell building material products as well as other products.

“I’m going to talk a bit about doing business with the boxes.”

In the early days of doing business with the boxes it was a reasonably pleasant experience for wood traders.

“You had an old guy like me and you would make the sales call and sit in the office talk about sports ... eventually you’d get around to getting your proposal out, they’d look at it say ‘Yea this looks pretty good you got a deal’, shake hands and you’re done,” said Mr Converse.

“Today’s buyers are completely different [they are] younger people, men and women, highly educated, typically these people have accounting degrees, MBAs, business degrees and surprisingly a lot of these buyers have little knowledge of wood products. They couldn’t figure a cubic metre if they had to, but they still have the responsibility of managing the category and in the case of treated wood, to turn a profit back to the corporation” So these buyers don’t really know much about the category but according to Converse they are very demanding. They really put the pressure on the treater to do a lot of things that in many cases the treater is not being paid to do, it’s just the cost of doing business with them.

“One example is as a treater I get to come in, in the morning and I’ve got orders for 10 truckloads of lumber,” Mr Converse explains. “The buyer is going to expect I’m going to deliver that lumber that afternoon, and certainly no later than the next day.”

That’s a pretty fast turnaround, but not only that, the buyer wants wood that looks good, wood that has a green or environmental endorsement and one that performs better than expected.

On top of that the Big Box stores are now interested in changing the colour of treated wood from a green to a warm natural brown.

Big, bigger, biggest So there’s a lot of pressure in the US on wood treaters from the Big Box stores. However, you can’t afford to not do business with them.

In the US the biggest chain is Home Depot. It has 2185 stores and a typical treated wood inventory of 300 cubic metres per store. It is not only one of the largest retailers in the US, but one of the largest retailers in the world.

About 90% of Home Depot’s treated wood is treated with MCA, and the customer mix is around 20% builder and 80% homeowner. There’s a lot of commitment to building products in the stores.

The second biggest player in the US is Lowe’s with 1710 stores, and its typical treated wood inventory is 250 cubic metres per store. Like Home Depot it has mainly MCA treated wood, with some CA-C and ACQ. Lowe’s has recently introduced a family of preservatives that are carbon based these are above ground wood with stabilisers.

“Lowe’s customers are about 15% builders and 86% homeowners. One of the big differences between Lowe’s and Home Depot is Lowe’s is trying to fill their stores with more items that attract female shoppers. The store is laid out better for a female shopper and has more decorative products.

The third player is Menards. They are a smaller Big Box store with only 287 locations, but with a treated inventory that is the largest of the three with 350 cubic metres per store. It is mostly MCA treated with a very small percentage of CCA.

The customer mix is 30% builder and 70% homeowner.

They’ve got a bigger commitment to the contractor and tradesman than the other two.

Menards is primarily located in the upper mid west of the US. In the areas where they compete with Home Depot and Lowe’s they are very aggressive. The difference with Menards is they have an outdoor drive-through lumber area. They are catering more to the contractor builder ... so they can load up a truck onsite.

The 8000lb gorilla “So now that you have better understanding of the scale of these Big Box stores here’re some ideas on how you have to present wood to make it onto the shelves.

“Each bundle of wood has to have a bundle placard. The treaters are required to put these on the wood with a barcode so that when the bundle comes into the store the employees can scan it. It tells the employees what it is, so they can’t get it wrong.

“There are also white plastic end tags on the end of each board in the bundle. The retailers require all the treaters put these on every board with a barcode number. They don’t want to spend money having their employees put price stickers on every piece of treated wood. That’s the responsibility of the wood treatment company.

“To give you an idea of scale of the US market, for 2013 [there was] 7.1 billion board feet or 16.8 cubic metres of treated wood [this amount is] processed and sold in the US every year,” said Mr Converse. “It’s a very big market that the Big Box stores pay a lot of attention to.

“If you look at the breakdown of companies that sell treated wood products in the US - 9500 lumber yards.

“Home Depot has 23% of the stores, Lowe’s has 19% and Menards has 3%; the rest - 55% - would be non-box stores

like independent lumber yards.

“However, if you look at the percentage of sales of treated wood products Home Depot, Lowe’s and Menards sell a higher percentage of treated wood products than the independent dealers.”

So, 50% of all the treated wood sold in the US is going out of stores in a lumber cart from the Big Box stores.

“We have a saying, dealing with the Big Box stores in the early days was like trying to do business with an 800lb gorilla - friendly, big, powerful but back then there were about nine companies that were box stores in the United States,” said Mr Converse.

“This included Home Depot, Lowe’s and Menards and it included five or six other companies but they were either purchased by Home Depot or Lowe’s or basically were driven out of business.

“Today we’re dealing with the 8000lb gorilla” The treated wood buyer at Home Depot is responsible for purchasing 400 cubic metres of wood with a retail value north of one billion dollars in sales. So there is one purchasing guy buying more treated wood on the planet than anybody else. That makes him or her a very powerful buyer, and they recognize their power.

Trick or treat Home Depot and Lowe’s deal with maybe around 15 treaters each, but Menards’ buyer does not buy any treated wood from treaters. This is where the business model is a little different. Menards owns its own treating plant.

The company has three treating plants. In fact, the largest single treating plant in the world is in Wisconsin and owned

by Menards. The company also employs this business model with other products.

As is the case in many other businesses all three Big Box stores want to own more than just their name, they want to own the labels under which they sell products. This gives them flexibility.

Private label branding for treated wood categories allows the retailer to control the branding and marketing programs.

Home Depot has Weathershield Premium Wood products, Lowe’s has Severe Weather Max, Menards AC2.

This allows Home Depot and Lowe’s buyers to choose different suppliers without it affecting the branding. They’ve also done this with products other than wood.

“A number of years ago talking to consumers who buy lumber back in those days, we sold a lumber grade we sold as grade number 2 - it has a structural grading,” explained Mr Converse.

“Back in those days some of the material would pass the grading requirements but wouldn’t look very good. We met with the retailers and the first thing we did was stop having the wood mills put ink stamps on the wood.

“In the case of the Lowe’s and Home Depot we went to continued on page 4

NEWS

February 2015 – 4

AUSTRALASIAN TIMBER MAGAZINE

Innovation in building products retailing continued from page 3

suppliers and said we realise we need to have a grade number 2 but we need appearance grade or a pretty piece of wood.

“So the market invented a Prime #2 which is basically a piece of number 2 wood with less knots and wanes ... so the whole market has gone primarily to this prime #2.

“Prime #2 costs the treater about 25% more in the shorter lengths and about 10% more in the longer lengths.

“This change improved the treated wood category for the Big Box stores.

“One mill has taken it up a notch. They developed what they called a treater grade of prime #2. The mill is guaranteeing it will not warp or twist.

“Neither Home Depot nor Lowe’s can manage large deliveries; they’ve got small forklifts that can’t handle the big bundles of wood. And they also want to stack a whole array of wood products.

“So end tagging and bundle placards are musts they want and the treater has to use plastic strapping and corner protectors.

It’s the treaters that have had to make the investment.

“The investment is more than just the end tag or placards. You have to hire people to put the tags on either by hand or using automatic air equipment.

“These placards and end tags are also packed with information and that information

of it includes a third party inspection agency that guarantees the quality and standards of the wood.

Then the product size must be placed over the barcode just in case the barcode can’t be read at the cash register. The other thing that is included is the preservative used and the end use for the wood, in most cases the consumer doesn’t know one preservative from the next.

“A treater could have 200 different barcodes at the treating plant,” said Mr Converse. “They are financially responsible for having the right tag on the right piece of wood.”

Treaters get two-year supply deals, which is a good thing, but good for both treater and Big Box stores. The stores are unlikely to do anything good just for the treater -- there has to be something in it for them. Tying up a two-year deal means they have fixed the price, deliveries etc they can move on to something else.

“Big Box stores are open mostly 24/7 so treated wood deliveries typically happen between 10pm and 6am. They don’t want the trucks there during the main sales hours. isn’t always straightforward but it must always be correct to meet consumer legislation.”

According to Mr Converse, tagging is something not done lightly in the US; part

Planning under way for NZ timber design awards THE PRESTIGIOUS NZ Wood Resene Timber Design Awards will be run throughout 2015 culminating in a gala event at Rayonier Ltd, Auckland Central, on 15 September.

The timetable leading up to the awards evening will involve: • February 2015 - Call for Sponsors • March 2015 - Announcement of Sponsors

• • • • •

March 2015 - Call for Design Award Categories May 2015 - Judging of Stage One entries June 2015 - Call for Stage Two entries August 2015 - Judging of Stage Two entries 15 September 2015 - Timber Design Award Presentation Event

australasian

magazine Incorporating Australian and New Zealand Timberman – Established 1977.

February Vol.24, No.1 Postal Address: 630 Regency Road, Broadview, South Australia 5083 Phone: (08) 8369 9555 Fax: (08) 8369 9501 Publisher and Chief Executive: Hartley Higgins Suite 103, 486 Whitehorse Road, Surrey Hills, Victoria, 3127, phone (03) 9888 4822 General Manager: Elizabeth Bouzoudis Editorial: John Hudswell j.hudswell@ryanmediapl.com.au Adelaide: (08) 8369 9512 Out of office VOIP (08) 7127 6370 Advertising: N orm Nelsen n.nelsen@ryanmediapl.com.au Melbourne: (03) 9888 4820 Timber classified: n.nelsen@ryanmediapl.com.au Melbourne: (03) 9888 4820

Production: Maria Baker Subscriptions: subs@forestsandtimber.com.au Adelaide: (08) 8369 9522 Accounts: Adelaide: (08) 8369 9555 Conditions: Opinions expressed herein are not necessarily those of the editor/publishers; information is published in good faith and we do not accept responsibility for damage which may arise from any possible inaccuracies. All rights reserved, none of the contents may be used in any other media without prior consent from the publishers. Published by Ryan Media Pty Ltd.

MEDIA

INDEPENDENT & AUSTRALIAN OWNED

Coloured wood Big Box stores are now moving towards water repellents and stabiliser additives, colour additives and mould inhibitors at

sawmill level. They are also going after the pro contractor business to increase sales.

One of the things impacting the wood market in the US is the plastic wood market.

“If you look at the plastic wood market everything is brown,” said Mr Converse.

“So if you can’t beat them join them. We are taking traditional green treated wood and turning it into a natural brown colour.

“The colour is blended into the wood treatment solution for a one step treatment and we’ve done a lot of exposure studies, done a lot of focus groups.

“This is really great for the consumer. As an example, a wooden fence built with cedar wears down to a grey colour, a cheaper pine treated and coloured fence is cheaper, looks better than cedar and lasts longer.

“Home Depot wasn’t convinced about coloured wood but they were tempted into putting some in one of their stores over winter to see the take up. They monitored sales and had a 25% increase by adding colour. Now there’s lots of plants providing coloured wood mostly in two primary colours – cedar brown and redwood.

“So, innovations have come as a result of the Big Box stores in the US, some related to the product. However, by and large they have been about the treaters working harder to keep the Big Box store buyers on side.”

WoodSolutions launches ‘Ask an Expert’ phone service

NOW THERE’S a new source of information for professionals designing and building with wood and wood products ... WoodSolutions Ask an Expert!

Combining an extensive database of existing questions and answers with telephone and email access, this new service complements the extensive range of technical design guides and other information available from the WoodSolutions website.

The 2,500+ people who access the WoodSolutions website each day have a new reason to visit the Ask An Expert service. Here they can find instant answers to their questions by searching the extensive database – or, submit their own question by phone or email if they can’t find the answers they are looking for.

“We receive enquiries from architects, building designers and engineers on a wide range of subjects, some highly technical, fortunately we have experts providing the answers,” said Eileen Newbury, Marketing and Communications Manager of Forest and Wood Products Australia,

the industry services company that manages WoodSolutions.

There is a link to the Ask An Expert service on the WoodSolutions homepage, or it can be accessed directly at http://www.woodsolutions. c om. a u / Re s o u r c e s /A s k-A n - E xp e r t / About WoodSolutions™ & Forest and Wood Products Australia Limited (FWPA) WoodSolutions™ is managed by FWPA and supported by companies and organisations in the Australian forest and wood products industry.

FWPA is the forestry and wood industry’s service provider, investing in research and development, and providing research results to the forest and wood products industry in Australia. FWPA aims to improve the competitiveness and sustainability of the Australian forest and wood products industry through innovation, and investment in effective and relevant R&D. FWPA undertakes industry-level activities where a collective approach can deliver more effective and valuable commercial outcomes than individual action.

New-look leading forest and timber publications IN LINE with current publishing trends and customer feedback, the Australasian Timber and Australian Forests & Timber News will be resized to standard tabloid formats commencing with the April 2015 issues.

The slight decrease in size has two significant benefits for readers: it makes for easier handling of the print product and ensures an efficient delivery service based on mail preparation time-savings.

“While we aim to satisfy our readers with timely information via online channels, our surveys indicate that print is still the

preferred medium for receiving industry information. This change of format will ensure there is minimal time delay between the production of the magazines and their delivery,” says publisher Hartley Higgins.

“With this change readers can be assured that Ryan Media will continue to offer a high level of editorial quality and cover a comprehensive range of news, products and industry information.”

For feedback and any inquiries, contact editor John Hudswell on 08 8369 9555 or via email j.hudswell@ryanmediapl.com.au.

www.americanhardwood.org

In 2 minutes this hardwood will regenerate naturally.

Tulipwood is one of the most abundant hardwoods in the US forest, growing at a rate of 35 million m3 every year. Annual harvests of just 17million m3 mean that each year in the US an additional 18 million m3 of tulipwood accumulates naturally.

In fact, the tulipwood timber harvested to create dRMM’s Endless Stair would be replaced by new growth in the forest in less than 2 minutes.

To read more about tulipwood and AHEC’s ISO-conformant Life Cycle Assessment of American hardwoods visit www.americanhardwood.org

Follow us on twitter @ahec_anz Like us on Facebook at Facebook.com/americanhardwoodANZ

Images: The Endless Stair, dRMM Architects

IMPORTED TIMBER

February 2015 – 6

AUSTRALASIAN TIMBER MAGAZINE

The secrets of American hardwood success T

HE US satisfies about one quarter of the world’s demand for hardwood lumber. Australia and NZ have been welcome contributors to the success of the US hardwood export industry in recent decades and 2014 appears to have been a record year.

The latest export data from USDA-FAS shows that roughly 14,000 cubic metres of US hardwood lumber were exported to Australia last year. This marks an increase of 60% compared with the previous year. At the same time, US hardwood exports to New Zealand reached about 5,500 cubic metres, an increase of 30% on 2013. For a region with a healthy indigenous hardwood industry, it is testament to the Australian love of wood that this can be complemented with imported timbers.

What is it about American hardwoods in particular that make them an attractive proposition for Australian architects and designers?

According to Roderick Wiles from the American Hardwood Export Council it comes down to three key factors. “Firstly, American hardwoods tend to be of a consistently high quality and availability,” he says. “America has the only standardised hardwood lumber grading system in the world, in addition to considerable expertise developed over many years in precision kiln drying.”

He goes on to suggest that the sheer variety of American species means that there is one suitable for almost every application and architectural or design need and aesthetic taste. The species predominantly imported into Australia is American white oak. It fits the trend for light timber with a distinctive grain pattern. American white oak has good overall strength, which also means that it is being used by architects and designers in structural applications and continues to be the favourite of Australia’s furniture design elite.

In recent years, American red oak has taken more of a hold in Australia. The largest species group growing in the American forest often appears to be very similar to white oak – especially once a finish is applied. In fact, its porosity means it accepts stains particularly readily and this is something Australian designers have recognised. The large volume of red oak production ensures ready availability and a high proportion of long, wide boards with uniform grain can be obtained.

“The oaks continue to be popular,” says Wiles “but ash is also in increasing in demand, as is tulipwood. We find Australian architects and designers to be eager to learn about new species and to experiment with lesser-known species”. The RACV resort on the iconic Great Ocean Road being a case in point. Architects Wood Marsh selected American aspen for the ceiling batons, a species that is seldom used outside America.

n Albert Road Melbourne in American white oak. Credit: Tony Neilson.

n Scrivania dell’amore red and white oak. Credit: David Norrie

n Pop Down Bar in American ash. Credit: Peter Bennetts.

Perhaps the main drawcard for American hardwoods, given the choice of imported timbers available, is their proven environmental credentials. For more than a century, selective cutting has been used to harvest only those trees that are at their peak life.

Wiles comments: “For every hardwood tree that is felled in the US, 1.9 trees take its place through natural regeneration. As a result of this clever management of the forest resource there is more than twice as much hardwood growing in the USA as compared with 50 years ago. There are more than 4 million private forest land owners in the USA who have done a spectacular job of maintaining this ‘legacy crop’ to pass onto their grandchildren, great grandchildren and beyond.”

In 2012, The American Hardwood Export Council released a report for the largest LCA study ever undertaken in the international hardwood sector. The ISO conformant study, conducted through independent consultants PE International and peer reviewed, details the environmental profile of US rough-sawn, kiln-dried hardwood lumber using a comprehensive set of environmental impacts. It covers the environmental life cycle of hardwood lumber from point of harvest in the US through to delivery at the importer’s yard in major export markets. It provides quantitative data on

Global Warming Potential, Acidification Potential, Eutrophication Potential, Photochemical Ozone Creation Potential, and Ozone Depletion Potential in addition to a qualitative assessment of toxicity, biodiversity, land use and land use change, and water resource impacts. The report also includes a sensitivity analysis to show how environmental impacts vary according to key factors such as species, lumber thickness, and transport distance and mode.

“It’s one thing to claim environmental credentials, but quite another to be able to prove them in the way in which we are able to do based on independent studies that have been conducted,” says Wiles.

With AUSILPAR recently coming into full effect, these give certainty of legality to importers. The 2008 Seneca Creek study showed the potential for illegal wood to enter the US hardwood chain to be less than 1%, and that tiny risk can be accounted for by border disputes from landowners rather than illegal practices.

In fact the report concludes there is no organised illegal logging in the US. “The rule of law is very clear in the US,” concludes Wiles.

“The US Forestry Service and the Environmental Protection Agency work closely, effectively and efficiently to ensure that the industry is able to flourish.”

n RACV Torquay in American aspen.

Credit: Wood Marsh.

Importers to be kept busy

THE PAST year was a busy time for the timber importing and wholesaling sector and 2015 looks like being a continuation of this trend. Australian Timber Importers Federation (ATIF) general manager John Halkett advised that a priority task for ATIF in the last six months of 2014 was shifting gears in relation to illegal logging matters from working to assist in shaping the legislation to implementing the requirements of the regulation that took effect on 30 November 2014.

“A substantial task in this regard has been the preparation of a legality

compliance toolkit along with an associated a USB memory stick.

This material was distributed to ATIF member companies before Christmas.”

Mr Halkett said the toolkit is available to other timber product importers on application.

While illegal logging related activities and the preparation of the toolkit have been priority activities over recent months ATIF has continued with other tasks, including staging the Chile Wood Expo and associated trade liaison meeting in October last year and

n Roderick Wiles from the American Hardwood Export Council.

participating in biosecurity, industry standards work and other relevant national policy matters.

Mr Halkett said the role of ATIF member companies in leading the application of new products and building systems, notably tall buildings with massive panel construction systems and prefabricated floor and wall systems, is making an important contribution to housing goals and the expansion of timber product markets.

“Equally, the import of more specialised products, like laminate flooring, decorative plywood

n Geelong Performing Arts Centre in American walnut. Credit: Tony Neilson.

and cabinet timber has provided important inputs into the country’s multi-billion dollar additions and alterations market.”

He said the timber importing sector will continue to make a positive contribution to the timber supply chain and building sector in 2015.

“It is disappointing that some narrow-minded sections of the industry have sought to criticise imported timber products, rather than put effort into expanding the overall size of the market so that everyone benefits.

“I am proud that in a number of ways timber importing companies have and will continue to be able to continue to push out the leading edge of product innovation and market expansion for the benefit of the entire industry,” said Mr Halkett.

ATIF welcomes enquiries from timber product importing companies about access to the legality compliance toolkit and downloadable documents intended to assist in undertaking the due diligence requirements of the illegal logging legislation.

Legality Compliance Toolkit Illegal Logging Prohibition Amendment Regulation 2013

Australian Timber Importers Federation Inc

www.atif.asn.au

This toolkit has been prepared to help timber product importers comply with the requirements of the Illegal Logging Prohibition Act 2012 and the Illegal Logging Prohibition Amendment Regulation 2013.

November 2014

n Chilean sophisticated timber products make an important contribution to housing goals and the expansion of timber product markets in Australia.

n Chilean timber exporters and industry representatives visiting Masters store in Sydney.

n Legality compliance toolkit along with an associated a USB memory stick available to non-ATIF timber product importers on application.

IMPORTED TIMBER

AUSTRALASIAN TIMBER MAGAZINE

7 – February 2015

Imported timber complements Australian-grown timber range B

RITTON TIMBERS International, the international arm of Britton Timbers Australia which has a mill in northwest Tasmania and distribution centres in Melbourne, Sydney and Brisbane, is one of Australia’s largest importers of specialty timbers.

Director Dominic McNeil says Britton stocks more than 50 species from North and South America, Europe, Africa, the AsiaPacific region and Australia. He says demand is strong and growing for sustainably harvested timber from certified forests.

“We import timber to complement our range of Australian timbers and our PEFC certified Tasmanian species such as Tasmanian Oak, Myrtle and Blackwood.

“Some imported timbers offer a grain structure and colour palette that is not available locally. Australian timbers are generally quarter-sawn and imported timbers are not, so that’s an obvious point of difference.

“American hardwoods such as American White Oak are sought-after by architects, specifiers and developers simply as an alternative.

“People looking for the French Oak look, for example, can obtain that from American White Oak at a very reasonable price,” he says.

Dominic says sales of Asian timbers are also on the rise.

“Importing from Asia is a core part of our business and given its proximity, prices are very competitive. In some instances, Asian timbers can also be available in very long lengths and that suits a variety of applications.

Australian timbers are generally not available in super-long lengths.’

On the question of ensuring the provenance and certification of its imports Dominic says Britton Timbers takes a cautious approach.

“The importance of sustainability and proper harvesting practices cannot be overstated. It is vital in today’s market to be able to reassure customers that they are buying timber harvested under strictly enforced guidelines and with international certification.

“That’s why we personally visit the areas from which our imports originate. If you’re interested in longevity of supply and on-going customer satisfaction, you cannot be too careful. You must do your due diligence.”

As most importers would know, the rules surrounding timber importation have been strengthened as of November 30 last year, and the onus put squarely on the importer to make sure of the legality of the imported timber, so Britton’s approach may well be followed by other importers.

“The new laws are a significant step in the right direction. Establishing the bona fides of timber can only be a good thing.

Accreditation systems such as PEFC and FSC are doing their best to ensure the sustainability of timber production around the world and at the importation end we must also take responsibility.”

Dominic says satisfying demand for imported specialty timbers means making a significant investment.

“We carry large stocks to ensure we can meet demand for our timbers with a minimum of delay and that makes using imported timbers a viable and attractive option for our customers.”

Dominic says Britton Timbers’ strong links to the American Hardwood Export Council have also been advantageous.

“We were the first non US-based company to be invited to join the AHEC ranks. This was a reflection of the work we’d done to bring the advantages of American timbers to the Australian market. We’ve collaborated closely with AHEC at trade shows and the like to market American hardwoods. The relationship has been valuable and has helped us provide a professional level of service and advice to customers.”

And what of the future?

Dominic believes it’s very bright. “You only have to look at some of the major European building and development projects to see that the strength, attractiveness and environmental advantages of wood are much sought-after.

There has been a turnaround in thinking and wood - both in its natural state and as component of engineered products - has made a huge comeback. And so it should. Wood is the future.”

n American White Ash.

n Mitchelton Winery.

n American Black Walnut Christian Cole Furniture (quarter curve).

n American Black Walnut kitchen of the year JAG.

n AHEC BrittonTimbers presentation.

Taking care of small business a priority for logging review THERE WILL be an independent review into the impact of the Illegal Logging Prohibition Amendment Regulation 2013 on small business.

The review was announced jointly by the Minister for Small Business, Bruce Billson MP, Parliamentary Secretary to the Minister for Agriculture, Senator Richard Colbeck, and Parliamentary Secretary to the Prime Minister, Josh Frydenberg MP. “Small Businesses are often time and resource poor. They may not have compliance departments to deal with the heavy regulatory burdens placed on them. They are too busy focussing on building their businesses and growing our economy,” Minister Billson explained.

“We are committed to reversing the deterioration in the small business environment experienced under six years of Labor and six Labor Small Business Ministers. Removing red-tape and reducing compliance burdens are both important elements of this effort.

“The review will focus on businesses with an income of up to $10 million, which will ensure the review examines the impact logging industry regulations on micro and small businesses.”

Senator Colbeck said the independent review would ensure compliance costs of the new regulations did not unduly impact small businesses.

“We’ve been working hard on the implementation phase to ensure these regulations have the least possible burden on Australian businesses,” he said.

“The regulations are designed to protect responsible producers and markets – it’s important that we get this right.”

The Government will also develop an associated Regulatory Impact Statement.

Mr Frydenberg said the Government was committed to an ambitious deregulation agenda that aimed to reduce regulatory burden on businesses, community organisations and individuals by at least $1 billion a year.

“A balance must be struck between reducing the risk that timber and timber products for sale in Australia have been illegally logged and the cost to small business.

“A major focus of the assessment will be looking at whether the current due diligence arrangements strike that balance in the most efficient and effective way for small business.

“The review will report to government by March and will include targeted consultations with small business representatives throughout the process,” he said The new regulations started 30 November 2014 and require ATIF AdvertFINAL.pdf 1 3/12/12 11:59 AM Australian timber importers to carry out due diligence on imported timber products.

The Department of Agriculture’s website contains a range

of information to help businesses understand and comply with the illegal logging regulations. For the first 18 months the Government’s focus will be on raising awareness and promoting compliance.

The Australian Government is committed to combating the trade in illegally logged timber, a practice that undermines legitimate operators in Australia and overseas.

It is a significant issue and Interpol and the United Nations Environment Program estimate the global trade in illegally logged timber could be as much as USD$100 billion annually.

Some standards enforced in Australia orginate from international certifying bodies Small Think Global (not just Local) (ie business card, comp slips etc)

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Member

Australian Timber Importers Federation Inc www.atif.asn.au

Australian Timber Importers Federation Inc www.atif.asn.au

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Always purchase appropriately

imported Medium certified (large stationary items etc) timber products Member

Australian Timber Importers Federation Inc www.atif.asn.au

Australian Timber Importers Federation Inc

www.atif.asn.au

Large (packaging etc)

February 2015 – 8

IMPORTED TIMBER

AUSTRALASIAN TIMBER MAGAZINE

Import system had people foremost in the planning S

OUTH AUSTRALIAN-based Durable Hardwoods, operated by Rod Taverner and Justin Daws, started about 20 years ago with the specific intention of importing timber sourced from low ecological impact villagebased operations in Papua New Guinea. After working there for many years Rod had developed an empathy with the country and its people at a grassroots level.

“We have broadened our business plan to source and supply timber from ecologically sound sources wherever possible.

Our main stock lines are Kwila and PNG Rosewood, two of the finest and most versatile timbers available. We dry and dress timber on site to clients’ requirements, whether from our main stock species or other Australian or imported species,” Rod explained.

“Over the years we have developed a network of reputable sawmills and timber merchants so that we can handle projects large and small.

“Our site at Lonsdale (south of the Adelaide CBD) is our third location since starting business and we now have permanency and room to move.

“We make a particular effort to be sure our clients understand the properties of the timbers they are considering for their projects,” said Rod. He said Adelaide was an interesting and challenging market.

“Other than Pine, Victorian Ash and Jarrah, the appreciation of timber (particularly hardwoods), its properties and its applications is low, both among the professionals and the public.

“Consequently, there are many projects around Adelaide that have not met the users’ expectations – not because timber is inappropriate for the job, but because inappropriate timbers have been supplied. Our goal, alongside supplying ecologically sourced timber, is to make every effort to be sure our clients get a species that is fit for the purpose to which it is being put and that they understand the properties of that species.

“As all timber merchants know, supplying timber from “ecologically branded” sources is more marketing than science,” Rod said.

“For instance, when we sourced timber from village-based harvesters it provided both ecological and social benefits to the PNG villagers that may not be immediately apparent to Australians with accessible health care, education and social security. Village-based harvesting gives the villagers control over their only major asset – their forests. It gives them work, an income, and the opportunity to pay school fees for their children, and buy medicines when they are sick – education and health care is not free in PNG and there is no Social Security.

“Village-based harvesting has the lowest impact of any timber harvesting. It is species-selective, very small scale using portable equipment and leaving all the waste to decompose in the forest. Regeneration is rapid.

“We also paid the villagers well for their timber. The royalty for log paid by the international logging companies was Kina 50 per cubic metre. We paid 25 times that for sawn board and that much again once it had been graded for export.”

Rod said Papua New Guineans had lost immense areas to “legal” loggers since WW2 with the timber going to Asia, if in fact it wasn’t windrowed and burnt to clear for oil palm plantations.

“The royalty payments were small and were quickly spent.

“They derived no enduring benefit and were left with a degraded environment or vast acreages of oil palm, which

FOR SALE!!

New firewood processing equipment from Whitlands Engineering

many might say is the same thing.

“Now, the villagers are reluctant to allow logging, although it is forced upon them by the Government issuing Timber Permits to overseas loggers.”

Rod said that, generally, people respected the efforts we have made to diminish the impact of timber harvesting on the environment by using village-based harvesters. “Certainly it is small scale because if it wasn’t it would be no different to commercial logging. Its benefits are local, not national.

“The Illegal Logging Act will now end this practice if we want to continue buying from PNG. PNG law makes it illegal for villagers to harvest timber unless they have a Timber Authority. “These are issued for selective logging operations for the domestic market. We are getting professional advice on the legality of importing timber from a source covered by a Timber Authority to ensure we are compliant with Australian law,” he said.

“The impact of the Illegal Logging Act on our business is probably small. However, our capacity to support Papua New Guineans at a village level, which was the founding principle of this business, has been eliminated for the present.

“In the meantime, we will not purchase from the “legal” loggers, whose main interest is in exporting logs, not valueadded product. Also, their logging and business practices are not consistent with our ethical and conservationist values.

“On the other hand, the Act will have no impact on companies like the main Malaysian logger in PNG, Ribunan Hijau. Their log exports go to Asia with no value adding or material benefit to the PNG people. They will continue to use their environmentally destructive logging practices. The loop will continue of illegal logs going into Asian sawmills and coming out as legal, certificated products.

“Australia’s laws have zero impact on their business plan,” Rod said.

“The greatest impact on our business is the lack of consumer confidence, which hit its lowest for 17 years in SA in June of last year. It appears to be on the rebound, but that is likely to take a hit with the fall in the dollar and the commensurate increase in the shop-floor price of our many imported items.

“The constant political wrangling doesn’t help either – basic economic theory doesn’t rely solely on Government spending for economic stimulus. Generating a positive view of the future loosens consumers’ purse strings and that positive view is lacking at present and our political leaders are doing little to build that positive view.

“Our clients come from the more conservative group in the community and according to surveys these are the ones with the lowest consumer confidence. For us, this is particularly the over-40s who have had tight budgets when they were younger and did cheap get-by jobs. They now want to get the job done and done properly so that it will last with minimal maintenance - if they have the confidence to spend!

“This also applies to our commercial and Government clients.

“We have maintained our turnover target over the last two years, but we have not gone into price-cutting. Clients can either afford hardwood or they cannot. No-one can compete with Pinus on price, but hardwood can certainly compete on quality, performance and durability. Also, we have sacrificed a lot to build up our stock of seasoned, quality product and there is no benefit in dumping that on the market solely for cash-flow.

“In this difficult trading environment, we have not increased our advertising budget. We rely on our website and word-ofmouth. This is a challenging approach because we have to sell on the basis of quality, service and professionalism, not price alone. However, it is also personally satisfying because we generate loyal repeat clients, instead of one-off customers.

“Our business probably belongs in an earlier time and goes against much of today’s practice. Our client base covers school projects to civil projects. We provide personalized service to our clients, whether city, country or interstate. Our substantial stock of quality timber is machined in-house and we indent from reputable mills to meet client’s expectations for other species. We do not sell Pine,” Rod said.

n Heath’s deck.

n Timber coatings test area.

n PNG carver

n Rod Taverner and saw operator Stephen reprocessing village Rosewood flitch.

n PNG village sawmill.

n Machinery maintenance blocks for mining.

Free Call 1800 702 701

www.superaxe.com.au

n Justin machining.

n Geoff Wright at a Log Pond Bialla.

AUSTRALASIAN TIMBER MAGAZINE

Levelling the playing field for Australian manufacturers and producers T

HE AUSTRALIAN Government is bolstering Australia’s antidumping system with a range of reforms to ensure Australian industry is in the strongest position to compete on a level playing field, while complying with international trade rules.

Industry Minister Ian Macfarlane and Parliamentary Secretary Bob Baldwin announced the reforms they claim will ensure that Australian manufacturers and producers have access to the assistance and information they need about the antidumping system.

“Australia supports free trade, but free trade should also be fair trade,” Macfarlane said.

“The dumping of goods from overseas is harmful to Australian businesses and action can be taken to prevent this behaviour under World Trade Organization rules. Where local companies are being injured by dumping practices they are able to seek trade remedies,” he said.

The move has been given a tick of approval by major industry body Australian Forest Products Association (AFPA). “We welcome the proposed changes to place a significant onus on foreign exporters to cooperate in anti-dumping investigations.

The imposition of higher dumping duties and interim measures as soon as possible for those companies that do not comply with the Anti-Dumping Commission (ADC) is a particularly welcome reform,” said AFPA CEO Ross Hampton.

He said the Australian timber and paper products industry had long advocated for the strengthening of anti-dumping rules, given the significant impacts dumping could have on local manufacturing businesses and employment.

“For too long Australian timber and paper producers have been frustrated by the delaying and circumvention tactics used by some foreign exporters as part of anti-dumping investigations, including the delayed provision of trade data and requests for multiple extensions,” he said.

The Industry Minister said the

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Government’s reform package not only delivered on its election commitments but also introduced additional measures to strengthen the anti-dumping system and respond to industry concerns.

“The changes will ensure that while Australia becomes increasingly open to trade, Australian industry is not left vulnerable to dumping by foreign companies.”

“One of the significant outcomes of these reforms is that overseas exporters who choose not to cooperate with antidumping investigations will face higher dumping duties and have interim measures imposed as early as possible,” Baldwin said.

“The Government is implementing a range of new and expanded information and support services for Australian companies.”

“These include using the AusIndustry business hotline to triage enquiries, tripling the number of International Trade Remedy Advisers to better manage the increasing workload and establishing an Anti-Dumping Information Service to provide consumer information and undertake economic analysis of trends and trading behaviours across markets.

“Changes will also be introduced to improve the way the merits review of anti-dumping is undertaken by the AntiDumping Review Panel. They include raising the legal threshold for applications, introducing a conference mechanism for all parties and introducing a scaled fee for applications.”

These reforms will be complemented by a range of technical amendments to modernise Australia’s anti-dumping laws.

This includes reforms to address practices where products are slightly modified to avoid the payment of dumping duties.

FOOTNOTE: Back in September 2013, Australian Forests & Timber News highlighted the need for a level playing field concept in one of several editorials in the lead-up to the federal elections.

TQ announces new Deputy Chair

PAUL BIDWELL, Executive Deputy Director of Queensland Master Builders Association, is the new Deputy Chair of Timber Queensland for 2014-15.

Rod McInnes, CEO of the peak body representing Queensland’s $2.4 billion per annum forest and timber industry, said Paul was appointed at the final board meeting for 2014.

“His appointment acknowledges the valuable contribution he has made to Timber Queensland since he joined the board in 2013,” said Rod. “Paul is the board

representative for Timber Queensland’s technical subscriber members and his deep knowledge of the building industry will help ensure Timber Queensland continues to provide the advice, education and services we are renowned for.”

Paul joined Master Builders in July 2009 and has almost two decades of private and public sector experience in policy planning and analysis.

He most recently worked with the Chamber of Commerce & Industry Queensland, Herron Todd

White Property Valuers and AgForce Queensland.

Paul is a qualified valuer with tertiary qualifications in urban and regional planning, and business administration.

9 – February 2015

NEWS

February 2015 – 10

AUSTRALASIAN TIMBER MAGAZINE

Dubai WoodShow emerges as Middle East’s biggest trade show D

UBAI WOODSHOW (DWS), the region’s premier timber trade fair, has grown in stature to become the biggest wood and woodworking machinery trade show in the Middle East. The next edition, which will be held from April 14 to 16 April, is expecting 250 exhibitors from 45countries.

Josine Heijmans, Exhibition Director of the show said: “DWS has become a major platform for the regional and international wood and woodworking industries. An interesting aspect of the next edition will be the ‘try before you buy’ concept which will transform the exhibition floor into practical workshops. We are creating a perfect environment for enabling fruitful interaction between sellers and buyers.”

Heijmans said that the surging AED 8.82 trillion construction activity in GCC region was driving the wood

industry, as the region witnessed unprecedented growth in imports.

A number of top woodworking machinery manufacturers, toolmakers, timber providers and traders will hold skillbuilding sessions, allowing visitors to view the production process at first hand, with live demonstrations of machinery in operation.

DWS will occupy an area of 13,428m2 offering the latest timber products and tools and a chance to learn from leading international experts and woodworking industrial specialists.

Exhibitors of all skill levels will showcase wood carving, turning, scroll work, fine woodworking, gourd art and pyrography at the three-day show.

The previous edition of DWS, organised by Strategic Marketing & Exhibitions, attracted 8,349 high quality

WA still the strongest home building market WESTERN AUSTRALIA has once again topped the rankings in the HIA bi-annual Housing Scorecard report.

“It remains the strongest residential building market in the country by a healthy margin, ahead of the Northern Territory and New South Wales. There is daylight between the three strongest states and the rest of the pack,” said Geordan Murray, HIA Economist.

“The Australian Capital Territory took a tumble down the league table sliding from fourth to sixth. Lower levels of activity in multi-unit segment drove the decline, although there were also emerging signs of weakness in the ACT’s detached house building market.

“The recovery in Queensland continues to gather momentum. The analysis shows the improvements can be attributed to a boost in multi-unit home building. While Queensland

still ranks as the second weakest jurisdiction nationally, the margin to the States sitting mid-table has narrowed markedly,” Geordan said.

“Overall, the Scorecard shows that WA and NSW have caught up to Victoria in terms of historically high levels of new home building activity. However, activity in these states no longer appears to be rising. At this point in time, future growth hinges on the capacity of the Queensland market to sustain the recovery.”

The HIA Housing Scorecard benchmarks the contemporary performance of 14 key indicators of activity in residential building against long term averages in each State and Territory. This analysis is aggregated in a scoring system to generate a league table ranking the relative strength/weakness of residential building conditions in each jurisdiction.

Housing industry welcomes focus on faulty building products MOVES BY the Federal Government to focus attention on the problem of poor building product compliance have been widely welcomed by the industry.

The Housing Industry Association had raised concerns of home builders, manufacturers and product suppliers at the lack of coordination and oversight in relation to building product compliance.

“The supply chain for building products and materials should provide certainty to home builders and contractors that the products on the shelf are fit for purpose,” said HIA building spokesperson, Kristin Brookfield.

“By ensuring that the products available for sale meet the right standards, the risk to builders, contractors and home owners can be minimised.”

Ms Brookfield highlighted the problem with the current building product supply chain in Australia for both locally made and imported products, which leaves the decision about whether a product is good or bad in the hands of the last person standing – the consumer.

“This shouldn’t be the case,” said Ms Brookfield.

“The responsibility for making sure products comply should rest with the manufacturers, suppliers and importers. They should be responsible for proving

to the buyer that their products are fit for purpose and be willing to back up their products with ongoing after sales support.

“This is an increasing problem for the whole building industry, and no one wants to see a significant or catastrophic failure occur. It’s time that all levels of government worked together to seriously address the issue.

“We look forward to working with the government on ways to ensure that everyone in the supply chain shares responsibility and that ultimately consumers can have confidence in the homes we build.”

Single source solution

D

UE TO high demand from existing customers, leading business products and services supplier, Staples, has launched a new division Staples Safety Solutions.

The Staples Safety Solutions range features more than 25,000 products including Personal Protective Equipment (PPE), workwear and site safety products suitable for a range of industries including mining, construction, manufacturing, food service, transport, Government and warehousing.

“The gap we saw in the market, combined with an increase in demand from our customers for a single source solution for all their PPE and workwear, led us to launch Staples Safety Solutions,” said Joe Taylor, head of Facility Solutions, Staples Australia and New Zealand.

“Our team of safety specialists can help ensure that there is product consolidation across an organisation and that they’re only ordering necessary equipment and clothing, reducing overhead costs and excess deliveries,” added Joe. Staples is also able to provide onsite vending machines with key card access allowing staff who may need items at short notice quick access on any given day or time. Each vending machine has an inventory management system that tracks stock usage and controls stock on hand with auto-replenish levels set by the customer.

“Our goal is to ensure that our customers continue to have access to the most up-

New show supports secondary woodworking market CANADA’S BOOMING western markets will play host to a brand new woodworking machinery and supply show geared to secondary woodworkers from western Canada, the United States and beyond.

Canada Woodworking West will take place at TRADEX in Abbotsford, British Columbia, October 7-8, 2015. This new show – the first of its kind for western Canada – follows the success of Canada Woodworking East, which took place in Montreal, Quebec in September 2014.

“This event is for commercial and residential cabinet manufacturers and installers, commercial and home furniture manufacturers, architectural woodworkers, millworkers, molding, door and stair manufacturers and the list goes on,” explained Show Manager Mike Neeb.

“Exhibitors at this event will have the machinery, hardware and accessories needed to transform wood into these much sought after products.”

Presented by Master Promotions Ltd.,

trade professionals from 95 countries. The participating exhibitors included 500 brands, suppliers and manufacturers representing 40 countries.

to-date and innovative safety products at cost effective prices and with fast delivery,” he said.

In addition to ease of ordering and replenishing stock, Staples can provide customised reporting to help manage procurement goals. Plus, its partnerships with industry leading manufacturers enables customers access to the newest products and latest innovations, further enhancing its stance on providing the best possible customer service.

All of the safety equipment and workwear available in the Staples Safety Solutions range is sourced from reputable safety brands and meets either Australian or the equivalent global standards.

this event is expected to attract some 200 exhibiting companies along with thousands of trade show visitors. More than 100,000 square feet of exhibit space is available, and major machinery distributors have already jumped onboard and started their booking process.

Canada Woodworking West will include forward-thinking educational seminars, an expansive exhibit floor, and limitless opportunities for networking with industry peers. It is the latest in a line-up of successful

“We are currently working on some exciting improvements to our online ordering platform, which will make ordering workwear a much easier experience for our customers. New functionality will enable them to customise their uniforms with logos and associated embroidery – ensuring a faster turnaround time,” Joe said.

The Staples Supply Chain model has 22 warehousing and distribution points offering next day delivery in metro regions, and the Staples Spot Service means with the correct authority, orders can be delivered to a secure nominated location within a premises without the need for a signature.

woodworking and heavy equipment shows being produced by Master Promotions, including Canada Woodworking East, InterSaw, BiomassExpo, Pacific Heavy Equipment Show, Demo International, Canada North Resources Expo, and TRUXPO. Complete details are available on the show website: www.CanadaWoodworkingWest. ca.

AUSTRALASIAN TIMBER MAGAZINE

NEWS

11 – February 2015

One of the oldest materials in the world protects our seeds A

R C H I T E C T MARK O’Dwyer explains why one of the oldest building materials in the world – wood – makes such a good external insulator. “Timber has that benefit; it’s a wonderful shade screen, an external skin,” he said. “Timber itself likes to expand and contract. It thinks it’s still on the tree. As it heats up and accepts and rejects moisture, it expands and contracts the same way it did when it was in the tree.”

Mr O’Dwyer, a director of H2o architects in Melbourne, was discussing timber’s role in what was a unique project: the Australian Grains Genebank in Horsham, in Victoria’s Wimmera grain belt in the state’s north-west.

The genetic bank, 80 metres by 60 metres in size, can store 200,000 seed strains for up to 100 years, but they must be kept at a constant minus 20 Degrees Celsius. It is one of three such facilities in the world.

The problem for H2o was maintaining that temperature through the seesawing temperatures, particularly the scorching summers, of the grain belt.

The solution was to place the seeds in a refrigerated central area, which in turn was protected by a second metal shed with a gap in between, big enough to walk around.

That gave another layer of insulation. Timber was the third layer. “Like a timber shade cloth, it skirts the building and stops the metal box getting higher temperatures from direct sunlight as well,” Mr O’Dwyer said.

“A timber rain screen is perfect. It’s made up of independent pieces of timber with gaps in between. By being a rain screen, it allows the expansion and contraction in the gaps you leave between it. It also makes it look interesting.”

As well as stopping the rays of the sun, the timber is also a passive thermal buffer; the heat exits at the top and the side, making a cooling instrument unnecessary. This reduces energy consumption and operating costs.

H2o, which has pioneered the use of timber cladding in commercial and institutional buildings, investigated different timbers, including Australian, for the project.

“We came back to (Canadian) Western Red Cedar. It’s got the best performance in terms of that expansion and contraction,” Mr O’Dwyer said.

Also it did not split. Timber on the tree was curved, but sawn timber was cut and made rectangular. “The downside is it likes to curve, it wants to go back to what it was when it was part of the tree. Western Red is the best for that.

It does not cup or split.”

Another issue was the bleeding of timbers when they weather. “The last thing you want to do with a good timber like Western Red Cedar is to seal it. That stops the natural process of moisture going in and out, “ Mr O’Dwyer said.

“Don’t seal it, accept the water will move in and out, and it’s going to go grey, but that’s part of the attraction.”

The western red cedar also did not produce any tannins – brown stains - when going grey, unlike many hardwoods.

Mr O’Dwyer said the gradual greying of the timber – “something we quite like” – was integrated into the design. “We have not tried to give the building a special garden landscape. Instead with the surrounding plains, it recalls the historic storage sheds and agricultural buildings of the Wimmera,” he said.

“They just sit in the field and you don’t have to do any special treatment. The field itself is wonderful the way it just leads up to the building.

“The timber has to look good when the landscape is green, but it also has to look good in summer when it all goes straw colour.

When grey and natural, it works well with the different colours of summer and winter.”

On the outside of the building, timber panels carry images of a seed growing into a plant, hinting at the purpose of the building.

Internally, timber was used on the floor and walls. “Spotted gum makes fantastic flooring; it does not have that issue of expanding and contracting, knotting and the like. There is no cupping – where the edges of board are higher than the centre of the board - with the thicker board. Cupping can be caused by moist conditions beneath floor, heat in a specific location or a very dry environment above the floor. The tongue and groove method allows that if something does happen, you can take it up over time,” Mr O’Dwyer said.

The space was edged with plywood, and solid timber - Tassie Oak – was stained in the various colours of the wild flowers of the Wimmera and nearby Mount Arapiles.

Lime-washed plywood panelling on the upper walls complements the subtle, earthy “feel” of the interior.

Of course, not to be forgotten is that mainstay of any good building: the timber deck. Staff can sit out and have a coffee on a deck that faces south, with views over wetlands. “We tried to be a bit residential on that part of the building, to make it feel friendly,” Mr O’Dwyer said.”

Are your workers qualified and safe?

The FOL system for forest operators can help you to: Reduce risk and improve workplace health and safety Support environmental care Ensure employees hold current skills that meet national competency standards Manage training records Support people development strategies

Learn more at fols.forestworks.com.au.

Investing in skills and our industry n It doesn’t matter which way you look at it, the Australian Grains Genebank in Horsham is extraordinarily distinctive and highly functional. All images by H2o Architecture.

FOLS is not for profit, administered by ForestWorks and endorsed by industry.

PREFABRICATION

February 2015 – 12

Crawl, walk, run into new styles of production Plant production requirements - understand the facts

I

N THE infancy of the prefabricated wall frame and roof truss industry many of the initial practices were simply moving the traditional onsite assembly into a shed, out of the sun and away from the wind and rain.

Things have changed and the industry has progressed to a high level of automation.

Things that are now happening were dreams, or seen as a ‘pie in the sky’, according to Ian Currie business development manager for Pryda Australia.

Ian knows that for the transition from a traditional truss business into a successful automated supplier of products such as flooring cassettes there’s more to consider than just the purchase of new equipment.

“Today we have sophisticated design software ... automated sawing and assembly equipment ... and most importantly improved safety conditions,” he said at the recent FRAME 2014 conference. “[We are] all operating in economical conditions and business demands that are very, very different. Where the cost of production is increasing and business margins are being eroded therefore, we need smarter ways to do things.”

He said that in order to improve overall project costs, builders and consumers were looking for areas of overall savings and part of that was the movement towards cassette flooring systems and panelisation.

At best this is niche market at least in the short term for Australia and New Zealand.

From truss to cassettes “If you’re a truss plant wanting to develop

in this area you will need to give serious consideration to the overall business proposition and your own capabilities today and going forward,” said Ian. But before fabricators head down the road of implementing new systems and processes there’s a host of considerations that need to be taken into account, some are pretty obvious, but others not so much.

One of the first things to consider is what change is actually required? And can it be done with the existing systems? Then, what and where does change need to be added?

Let’s take a look at them in a bit more detail.

According to Ian, what comes first is a bit like the chicken and the egg. Part of that is design software that can incorporate the whole project.

“We need to consider the sub floor or support requirements,” he said. “The actual floor truss layout when we are talking specifically floor truss systems. We need to look at the voids required, stairwells etc.

“Then we also need to look at the optimum floor sheet layout, but the question I would ask is do you have the systems or the resources within your current design business to handle that?”

The next thing to consider is the product size that you want to produce, as he said there is no point having your designers work on a 10 metre module if you can only produce eight metres.

Then he threw up a whole lot more questions.

Do you really have the production capacity?

What production throughput is required out of this process? Will this work be additional

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2015 Conference and Exhibition 1 June 2015, Park Hyatt Melbourne

to what you currently manufacture or is it going to be taking away from your existing model? And do you have enough people? If it was only a part-time job previously, do you have enough resource to fill it?

After you’ve considered that, you best start thinking about the specialized equipment needed for the change in manufacturing. This new equipment could be a very large capital expenditure from thousands of dollars, to hundreds of thousands or even millions. It’s up to you how far you want to go.

Money matters The question is: how far do you need to go, and how far can you afford to go?

“For example, if you’re producing a cassette floor what about the gluing of the sheet flooring? What about the nailing; how are you going to do that within the process?” he asked.

There’s also the floor space issue, you need enough physical space to do the job.

“You may be able to start with a circular saw up front and that will do the job for stage one, but you may need to progress to a panel saw or something similar for your volume cutting and for the accuracy you want to get and for the productivity,” said Ian. “How much space will these things take up in your existing structure?

“Your floor cassettes are no longer a simple product that can be picked up by one or two operators and stacked ... it’s now a process that’s much larger, much heavier and can run as high as 500kg per cassette.

“The transport to site; how do you handle that? You now have potentially wide loads that need to be handled on a far more regular basis. So how are you going to do that?”

Onsite access is another consideration.

You need to consider truck access on a much bigger scale because you’re handling potentially bigger products.

You need to consider how to schedule the loads and how you’re going to handle that.

You can no longer drop off the product and let someone else worry about it; you now have to handle it the whole way through.

“Each of the previous areas mentioned have and are likely to have substantial impact on your current business model and likely to add capital expenditure for the process,” said Ian. “Once you have answers to the points I’ve raised you’ll have a much better picture for your business.

“By adopting what we call an outside-in approach you can review the overall task you want to achieve and it may deliver some previously less obvious solutions.

“If you are too close to the issue I would suggest you may want to look at people better placed to seek some input ... or people who have gone down that path, here or overseas.

There’s a great wealth of knowledge and experience overseas in areas that we’re just starting to walk down.

“You may have a sawing system that handles the current day-to-day running of your business but what about the growth that going to flow through and the increased demand.”

An important consideration is that simply upgrading or adding another piece of equipment to accommodate increased production, or working overtime may not be the best answer.

Perhaps you may want to source some of the standard components and buy them in already cut to length. Another flow-on advantage of this is that it’s going to reduce waste, materials handling, and saw reduction.

Alternatively a review process could highlight wasted areas of an existing practice that can provide the business with some overall productivity gains, so the flow-on benefit could be that it starts to also assist you

AUSTRALASIAN TIMBER MAGAZINE

in your wall frame production and in your roof truss production.

“Just because your existing forklift has capacity to handle a 500kg lift it may be well undersized to handle a finished product that could 10m x 3m in size,” said Ian. “This is not to mention the swinging space to handle it and the hard stand you will need to accommodate it as well.

“So you may also need to consider another area of the production process, what about storage before it goes out to site?

“You need to take into account the physical storage you have to hold that in your business before it goes out. It may be undercover or it may just need to be protected in some way.”

It’s the old adage, crawl, walk, run “You don’t need to make a global change to your business process from day one in an attempt to reach your ultimate goal,” said Ian. “You may find your initial target moves once you gain better exposure to that product offer. So it could be that what you assume you start with is not what you end up requiring for the market.

“Planning for the future is very important but a controlled structured progression is just as important.

“Some of these changes may be quite obvious to the business and others not so.

You may be able to easily identify that your forklift is undersized but not know if you have enough capacity in your cutting or pressing.

This is where a business process review is needed.

“An assessment of your current process to see who is doing what and when will be an important step, but even before you start thinking about the manufacturing process ... you need to know what your customer actually expects and if you can provide it.”

Consultation is the answer, especially with others who have gone down this path as it can minimise risk.

Marketing of your new product will also need to be considered and funded.

According Ian, your entry point into that new market will also now likely to differ so you must talk to the specifiers.

“If you’re not involved in the grass roots of the process it may be difficult to gain acceptance for your new offer,” he said.

“For those who have sales reps there’s a fair chance that training is required so a clear picture is painted within the business and to the end consumer.

“Overlooking this can take you down the path that the wrong message is presented to the end user and there’s potential loss of business and eroding what you have established.

“Rumour and assumption can be detrimental to your existing business model.

“When it comes to the assembly part of the process elements of this may be new to you, manufacturing bare floor trusses could be something that you are already doing but the secondary process of putting it all together makes it a change.

“Your site work will also require an increase in existing crane trucks as it is used to unload and position the floor cassettes alternatively you may need mobile crane for this task due to the reach requirements or the actual site conditions.

“The important point is that for the overall time for the lifting equipment onsite may be two to three times what you usually allocate within the price of the job.

“The important element that I’d like you to take away is that the investment in production equipment or the change in your process can often be a significant one therefore, you may want to be sure that your purchasing a piece of equipment or a change to the process that is right for your business and that is give you the desired outcomes for you and your customer.”

SAFETY

AUSTRALASIAN TIMBER MAGAZINE

13 – February 2015

Latrobe City adopts ‘Wood Encouragement’ policy I

N A nation-leading decision, Councillors at Latrobe City Council have adopted a ‘Wood Encouragement’ policy. The policy has the goal of driving construction in the region towards an outcome which is better for the environment and will benefit a great many local businesses.

The Council’s decision to adopt the policy followed significant positive support from a public consultation process undertaken in November.

The Chief Executive Officer of the Australian Forest Products Association, Ross Hampton welcomed the Council’s decision led by Mayor, Councillor Dale Harriman, and looks forward to implementation of the policy.

“All over the world in countries such as Canada and

France, Governments are making the decision to change their tender processes to better accommodate timber.

Latrobe City Council is to be congratulated for leading our nation with the adoption of this policy,” said Ross.

“The reasons political decision-makers are taking this stance is simple. Timber products are completely renewable, biodegradable and as they store carbon, play a positive role in reducing greenhouse gas emissions. In Latrobe City Council’s case the benefits are clearly economic as well.

“The region is one of the premier timber producing areas. Timber products contribute some $800 million a year to the local economy, providing more than 1 325 jobs and many times that number of indirect jobs.”

Nationally forestry and forest product industries provide

some 80 000 direct jobs and about 200 000 indirect.

These jobs are generally clustered around regional areas in Gippsland, Tasmania, South east Queensland, the Green Triangle of South Australia and Victoria, northern and southern NSW, Central Tablelands and the Tumut area of NSW, and Southwest WA. Mr Hampton said, ‘It is my hope that all councils in these areas will follow the lead of Latrobe City Council and adopt their own wood encouragement policies’.

The Latrobe City Council wood encouragement policy would require all submissions for Council construction to pay adequate regard to wood, and acknowledge Council’s strong preference for quality wood buildings, where suitable.

New company, new machinery ... new hope for sawmills!

3RT Leadership Team Peter Torreele (Managing Director) Peter has over 25 years of international business experience in the Consumer, Services and Building Industries. Before becoming the CEO of the first generation strand technology company Style Ltd in June 2008, Peter was the youngest Managing Director at the World Economic Forum (Davos). Before joining the Forum, Peter had a 15 year international career as a Senior Executive in two Fortune100 companies, Roche Group and Danone Group. Previous functions include Marketing Director of the Danone UK dairy division, Commercial Director of the North European Danone beer division and Global Vice President Marketing at Roche Consumer Health. Peter has an engineering degree complemented with an economics degree and a Marketing MBA. Peter has been leading the manufacturing operations and global commercialisation of the first generation and the development of the second generation technology since 2008.

Prof David Lewis (Director) David is Professor of Materials Science at the Molecular Technologies Research Centre of Flinders University. He has a PhD in Materials Engineering from Monash University and a post doctorate at Virginia Polytechnic Institute and State University (Virginia Tech). David joined the IBM T.J. Watson Research Centre in NY in 1988 and returned to Australia in 1998 in a research management role with SOLA Optical (now Carl Zeiss Vision), based in Adelaide, which led to senior R&D Management roles, including managing the Discovery and Innovation function. David joined Flinders University in 2009 in a joint appointment as Flagship Fellow with the CSIRO. David has been leading the R&D efforts of Flinders University on the second generation technology since 2011.

Dr Jonathan Campbell Jonathan is a Materials Scientist and Program Manager at the Molecular Technologies Research Centre of Flinders University. He has a PhD in Materials Engineering from Monash University and a Grad Dip in Business from AGSM. He has expertise in a wide range of materials technology areas including thermoplastics, nanocomposites, photoactive polymers, wood-based compounds and nanotechnology. He has analytical expertise in both thermal and physical analysis of materials and processing experience from small scale laboratory testing to large scale production trials including commissioning of new laboratory and processing equipment.

Jonathan has worked for several research centres including SOLA International Research Centre in SA, Cooperative Research Centre for Polymers in VIC and NSW, Pernod Ricard Research Centre in SA and Flinders University. Jonathan has been heading the research at Flinders University relating to the first and second generation technology since 2011.

MELBOURNE-BASED company 3RT has partnered with Flinders University to develop a machine that cuts wood offcuts or softwood into strips, sticks them together and presses them into blocks. The aim is to increase hardwood supply sustainably and create market opportunities for mills that have been struggling with loss of access to native forests, labour shortages and competition from cheaper imports.

3RT was formed in September last year with the specific purpose of commercialising research done with Flinders University since 2010. “The reason for 3RT was to ensure that the IP would be for the benefit of the Australian industry and not be highjacked by the Chinese, where we developed the first generation technology based on Chinese bamboo,” said 3RT Managing Director Peter Torreele.

“3RT aims to provide the wood processing industry with a plug&play manufacturing solution to transform low value and waste wood into sustainable and high value wood products with similar properties to mature tropical hardwood for application in several industries including flooring, construction, furniture and transport.”

Peter said the first generation lignocellulose manufacturing technology was commercialised in China in 2006. “It transforms Chinese bamboo into exceptionally hard and dense flooring products with the characteristics and appeal of old tropical hardwood timber,” he said.

Peter said 3RT was created to commercialise a second generation of strand technology suitable for commercial production in high labour cost countries. It allows for cost-effective manufacturing of higher-value wood products to compete with imports from low cost countries.

“The second generation technology is truly unique because it can transform timber waste or young plantation timber into products with both the visual look AND the technical properties of tropical hardwood. In addition, the products are termite resistant and fire retardant.

“A Technology Innovation Centre was initially planned to be built at Tonsley Park in Adelaide, but we have received competing offers from other States. We are awaiting a decision of the SA Government, which has first rights to the location of the Centre.

“The TIC will implement the 3RT technology roadmap that incorporates nanotechnology developed at the Flinders Centre for NanoScale Science and Technology to provide further innovation such as resistance to weathering (thereby creating no-maintenance decking),” Peter said.

Mt Gambier will be the location for the first manufacturing unit to transform radiata pine sawmill waste into flooring and decking products. This site will also refine the technology in a full-scale manufacturing environment. The Mount Gambier site will be developed as of April 2015.

“In addition, the pilot manufacturing unit will showcase to other mills in Australia what can be achieved when embracing this new technology, at a relative low investment cost ($2-5 million depending on installed base and output capacity required). It will be proof that advanced manufacturing can deliver value to existing mills whilst leveraging existing assets,” said Peter.

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n Australian Radiata Pine pressed from n Sydney Blue gum pressed from waste strips waste veneers

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February 2015 – 14

BUSINESS PROFILE

AUSTRALASIAN TIMBER MAGAZINE

Supersized Red Stag in New Zealand

By Mandy Parry-Jones

A

S YOU turn off New Zealand’s State Highway 5 and onto Waipa State Mill Road it all looks very rural. When I was there in November 2014, it was abuzz with mountain bike riders charging up with coffee at the Waipa café.

But just a few kilometres further up the road the Red Stag site comes into view, and fills the view. This is a vast site; no wonder it has been chosen to house the largest sawmill in the southern hemisphere.

According to The Cutting Edge: A history of Waipa Sawmill the mill is an institution in New Zealand, particularly in the North Island where it is located.

It was built by the New Zealand Government in the 1930s as a policy instrument to move the industry from milling native timber to processing radiata pine and Douglas fir. While it was very successful in its first few decades of work its success petered off and its main reason for being was as the main employer for the Rotorua area.

Two attempts tried to revive the mill, one as a Stateowned enterprise and the second as a private enterprise, both failed, then Phil Verry and son Marty saw potential where others saw problems and within six years had the business back on its feet.

Now it’s not just back on its feet, it is leading the pack with vision, foresight and the promise of huge investments. Our trip to the mill was to interview Red Stag General Manager Tim Rigter, and check out the progress to date and the future site.

“This investment decision is a vote of confidence by the board in the Red Stag management team and staff who have built up the business almost from scratch since 2003, when we purchased Red Stag from receivership,” Red Stag group CEO Marty Verry told Australasian Timber.

Altogether the amount bandied around as the cost of investment is NZ$120m, a sizable chunk of money in anyone’s terms. At the moment just half is the investment for stage one, there are two stages in total.

“It’s a bit more than that because we’re putting in a new power supply so it’s more like (NZ)$65 million,” said Tim Rigter.

“The first stage has started ... to make room for where we are going to build the new sawmill we had to relocate our chipping system – our screens, our chip bins, our chip pad.

“We’ve done that this year so that next year we can start building the new building for the new sawmilling equipment.”

Just in front of where the new sawmill building will be built stands the old chipping system next to a new concrete structure that has started to be filled with new chipping equipment.

It is so placed so that the changeover from one chipping system to the next can be done seamlessly. It has to integrate into the current mill without any hiccups, as the new sawmill as that will take at least another year or so to come on stream.

“We’ve got the design for the building (sawmill) and all the equipment - we designed the equipment then we designed the building around the equipment,” said Mr Rigter.

“We hope to start the building about February or March next year; the building should be complete by about October or November.

“Sawmilling equipment will start to arrive by October or November, so we want to put that straight into the building.” It should be operational by mid-2016.

Equipping the supermill US company USNR has been chosen to supply the equipment which is mostly ‘off-the-shelf’ items. Sounds so simple when you put it like that but not when you look at the capacity of what is being touted a ‘supermill’.

Waipa will have an annual log input capacity of 1.2 million tonnes running on two shifts using the latest sawmilling, scanning and optimization equipment which will tie into the mill’s current back-end bins and stacker.

The investment will lift the company’s annual output from 450,000m3 currently to 700,000m3 in five years but only with further site investment on the second stage.

For now let’s focus on stage one, where log supply begins at the log infeed decks through the step feeder and log loading conveyor.

USNR’s MillTrak 3D sensor system will be positioned above the step feeder to control the flow of logs onto the conveyor for auto rotation scanning, ahead of the reciprocating quad roll log turner.

At the log turner, a Precision Geometric Log Rotation

n Outside the main gates.

(PGLR) system will monitor and correct the turn of the log in real time and the ELI positioning infeed features slew and skew capability, that incorporates three sets of scanners to scan and monitor the log’s position as it is being processed by the cutting tools.

Chip heads will expose the sides of the cant, then a series of vertical feedroll modules (VFM) and sharp chains will securely guide and feed the cant through two quad bandmills, where up to eight sideboards will be dispatched.

The resulting cant will proceed on to the HSS gang line.

The HSS will be an 8” single bottom arbor shape sawing gang system. The configuration of the shifting saws on the arbor will allow for a variable timber pocket to produce a centre cant and/or boards that will feed the existing trim line downstream.

USNR’s MillTrak system will monitor and direct the flow of sideboards from the bandmills to twin edger lines downstream, and also from the edger unscramblers through the scanners to the Edger Maximizer positioning infeeds.

The edgers will be 5-saw, top arbor machines with close-coupled picker outfeeds to separate the tailings from edged boards.

The optimization system throughout the new mill will be based on the MillExpert platform.

At the primary and HSS lines it will utilize Smart TriCam sensor technology.

Where vision-based scanning technology is applied it will be combined with the latest BioLuma sensor technology.

One unique new feature in this installation will be the BioVision side profile scanning system that will scan the sawn cant faces at the #2 sharp chain outfeed to identify the boundary between sapwood and corewood.

The system will utilize BioLuma 2900LVG sensors with integrated, high definition laser profile, color vision and GrainMap technologies. The resulting data will provide the cant optimizer the information to dynamically model the sapwood and corewood boundaries.

The system’s Grade Zone feature will allow specific low-grade lumber products to be sawn from the lowdensity corewood.

The edger optimizers’ transverse scan frames will feature USNR’s BioLuma 2900LV sensors with high density laser profiling and color vision technologies, providing edger grade scanning capability.

Edger BioVision will classify knots by size, location and quality, as well as identify splits, shake and stain.

“This new sawmilling technology, along with our existing kiln drying and treatment technology, is far ahead of anything currently used in New Zealand, and the results are straighter, dryer, stronger and more dimensionally stable timber for our customers and their customers,” said CEO Marty Verry.

If this equipment all sounds high tech and futuristic, that’s because it is. This type of technology is state-ofthe-art for sawmills and not seen before as a complete package in our neck of the woods.

“Technology keeps improving all the time and the computer power,” explained Mr Rigter.

“I guess the main thing for the sawmill – that we don’t do now – is there will be a different log mix. We’ll be able to cut bigger logs.

“We’ve currently got two log lines one is a small log line and one is a large log line. We’ll be able to focus on

n The new chip plant to the left, the existing one ahead.

n Tim Rigter inside the main office building.

AUSTRALASIAN TIMBER MAGAZINE

bigger logs, you get a better recovery out of bigger logs.

“The technology will position the log accurately to one degree, it will rotate the log so that you’ve got the best position – so auto positioning of the log and its got slew and skew so you can maximise what you get out of the log. It’s positioning the log and it’s positioning it in front of the saws.

“Then the other big advantage is the curve sawing gangs, that’s been around a long time but we haven’t got curve sawing gangs at the moment. That will give us a better recovery, better length of timber, better grade of timber because you’re following the grain of the wood. That will give us better fibre conversion out of the log and there’ll be lower costs of production.”

Stage Two waiting in the wings So that’s stage one, pretty impressive in itself but add it to stage two and it’s not only impressive but a very big deal for a country as small as New Zealand.

For the second stage to jump off the drawing boards it may take a bit more work. It has been said that the second stage is dependent on New Zealand taking on a Wood First policy. A change of government has made that a little less likely.

“Yes, we need to grow the market we sell approximately 60% of the domestic market we want to grow the pie in the domestic market,” said Mr Rigter.

“If we had a policy in New Zealand where they do assist the use of wood, that would help, that would grow the pie.

While the recent election didn’t assist Red Stag as they hoped, Mr Rigter said they are still working on it.

“The present government is still open to it. They are looking at it to see if they can assist. The terminology is changing, it was Wood First now some are calling it low carbon – there’s a growing awareness of it.”

Basically the Wood First policy centred

ATM_2015-02_USNR-THG-Grading.indd 1

BUSINESS PROFILE on the government ensuring that in every instance where a new government building or renovation was planned timber would be considered as an option in the design stages. It had to be evaluated as a possible material.

What this does is force the government to see where wood can be a real advantage structurally, environmentally and economically. Once government sees the benefits it has a flow-on effect down the line to architects, specifiers, builders and eventually the housing market.

“There’s a little bit of momentum but we need some cost effective solutions and unless you start to build lots and lots of buildings with engineered wood products sometimes people don’t know the products,” said Mr Rigter.

“This is where we thought the government would lead the way and that would make it easier for other people to follow. The government is the biggest construction customer in New Zealand – why not support timber, which would be good for absorbing carbon? It’s still a work in progress.”

The Wood Processers and Manufacturer’s Association in New Zealand surveyed its members this year and found that such a policy would likely trigger NZ$1.17 billion of investment.

“With the growing awareness of wood’s environmental, thermal, and earthquake properties, as well as the potential for regional employment and export growth, I expect the government to follow Canada, France, Japan and parts of the USA in adopting such a policy in due course,” said Mr Verry.

Government policy is only one of many factors affecting the decision on whether to build the second stage.

“That’s just one factor that we want to grow the pie,” said Mr Rigter. “If that doesn’t happen we can still see the second stage happening, either by selling more domestically or exporting more.

“A lot of that is dependent on foreign exchange rates, logs cost and shipping –

15 – February 2015

n They built a huge clear span holding area substituting as much timber for steel as they could to prove it could be done easily.

n Existing drying facilities that are still high tech as they have one building with two lines of wood being dried.

1/16/2015 5:36:47 PM

February 2015 – 16

BUSINESS PROFILE

AUSTRALASIAN TIMBER MAGAZINE

n Machinery inside the new chip facility.

n Outside the current mill with feed lines.

n Part of the existing chip facility.

n Inside the current mill.

if those things line up we could easily go to the next stage because we can make it economic.”

The second stage equipment is a boiler to get more energy to dry the wood, the kiln, trim plant and planers. That’s the next NZ$60m.

According to Mr Rigter the decision about that stage is expected to be made 12 months out because there are big lead times with a new boiler and kilns it could take up to two years for the equipment to be made and installed.

Stage one is basically about a sawmill that can cut large volumes of logs, 700,000cu can be sawn on two shifts but the company only has processing capability to do about 450,000cu.

Stage two is about getting processing capability to process that extra 250,000cu which is energy to dry the wood, the kilns and treatment plant.

“There’s always options, like you can cut wood green and ship it, we’ve done that,” said Mr Rigter. “When you spend a lot of money on a new mill you always think of the future. We’re positioning ourselves to take that next step.”

Red Stag’s piece of the pie needs to be increase, a lift in market share from 25% to 40% is possible but only with the second stage up and running. With just the first stage Mr Rigter expects a market share lift of around 35%.

“Australia is a main market, we’ve always exported to Australia,” said Mr Rigter.”There’s definitely growth in the Australian market if we’re competitive.

“China is a maybe, in Asia we do sell some products but it’s a maybe it’s all dependent on log costs and the costs of the market. We do a fair bit in the pacific Islands.

“It’s really Australia first, then Asia, which is really China which is kiln dried product that they use for furniture then the Pacific Islands, then New Zealand, but we’re looking to grow all of them.”

According to Marty Verry the company

n This is where the new mill will be built.

is seeing continued opportunity to increase market share during a period of strength in the New Zealand and Australian markets out to 2018.

“After that we expect a period of high competition and contraction of the sawmilling sector, as Christchurch and Auckland’s residential growth slows and the economy cycles,” said Mr Verry “This will be partly offset by increasing wood penetration of the medium rise residential and commercial markets in urban centres, where wood has cost and prefabrication advantages.”

The competition is also good news for homebuilders, with Red Stag expecting timber prices to fall up to 10% as a result of the added market competition.

From the sounds of this investment it would appear as though New Zealand is cutting a lot more timber than in the past but that’s not so according to Red Stag.

There’s been a lot of rationalisation with many smaller mills going under and so the company is still cutting about the same amount of wood as it did 10 years ago, which is disappointing.

There are now five big mills in the country. An estimated 25 sawmills have closed in New Zealand in the last 10 years, as larger more efficient operations have expanded.

“It’s a long term trend that we are determined to stay ahead of,” said Mr Verry. “I think we are probably the lowest cost producer in Australasia now, but this investment will mean another step change reduction to our cost base, mainly through scale and getting more recovery and value from logs.”

Stacking up the odds If you haven’t got the technology to

increase productivity or keep your costs down or increase fibre recovery it doesn’t stack up economically.

The company has a full time equivalent of 330 staff on site but no increase is likely in those numbers because of the technology essential to make the new sawmill economically viable.

“We visited a lot of sawmills overseas,” said Mr Rigter. “It’s been driven by what logs do we want to cut, understanding the markets they go to and then you select the equipment.

“It comes down to what saw milling equipment can cut large logs efficiently.

We looked at two northern US companies for equipment.

“The mill will be the largest in southern hemisphere, we looked at Brazil and Chile and there’s a lot of big sawmills there but on one site this will be the largest.”

So to build the largest you need a sizeable site, Red Stag in Waipa has 80-hectares. Mr Rigter said the idea had originally been to put the mill in the town of Rotorua because of the rail link there but it was decided that it might cause environmental issues.

The site at Waipa is relatively flat, close to town and close to the forest so it was not a bad second choice at all. The timber will be trucked from the site about 70 kms to town, as it is now.

“Trucks are getting more efficient, they’ve just changed the legislation so now they can carry about an extra 20% so they’ve gone from 44 tare to 54 tare so they can carry an extra 10 tonnes,” said Mr Rigter. “That’s made road almost as efficient as rail.”

The investment also means more chip residues in the Central North Island, which the company says can either help

n The new chip facility building.

underpin new investment in pulp and paper operations or potentially a new MDF plant or the like further down the line.

With volatile pricing and demand in export log markets, log suppliers welcome the new investment in stable domestic production.

“We would like to acknowledge the support we have had from Red Stag’s log suppliers. It has given us the supply confidence to make this investment,” said Mr Verry.

Perhaps it’s not surprising that the investment is coming about since timber is New Zealand’s third largest export but on the other hand the size of this investment is surprising. It will put New Zealand and Red Stag on the world map.

AUSTRALASIAN TIMBER MAGAZINE

SCANNING

17 – February 2015

Hybrid grade scanning system for green mill application

Meeting the challenge

The characteristics that the Pukepine system is required to correctly detect and classify include the following: • • • • •

Partnering with USNR The sawmill’s headrig carriage utilizes USNR’s MillExpert optimization.

The Newnes-McGehee (now USNR) gang and edger were previously relocated from a North American mill, and employ the Newnes Sawmill Suite (NSS) software platform. Trimming comprised a manual grading, valley trimmer line that was very limited on capacity, with room for only one grader on the line. Constrained by both trim line layout and technical capability, David said, “Our goal was to increase capacity and improve grade recovery.”

The project starts with a lugged transfer (Pukepine supplied) feeding the precision belted scanner transfer.

This trimmer optimization system is comprised of a new scan frame fitted with 22 BioLuma™ 2900LVG+ sensors.

Next in the line, a new Multi-Track Fence utilizes 13 paddles to position lumber on the positioning transfer for trimming. From here, the equipment was supplied

by Pukepine. Positioned lumber is fed to the multi-saw trimmer, and select trimmed boards are rerouted at the smart tipple gate.

Uniquely Pukepine There are several aspects of this automated grading line that are unique to Pukepine.

Firstly, this configuration is atypical from the standard green grading systems in that the sensors are mounted off-axis to provide 4-sided scanning with only 2 rows of sensors (1 each, top and bottom). This configuration is typical for the Transverse High Grader (THG) system used for automated grading in dry, planed applications.

Most green grading BioVision lines require only top and bottom faces to be scanned, where the sensors are mounted above and below in a true differential scanning arrangement. With the types of defects encountered in Radiata pine, and the grades that Pukepine’s products specified, the 4-sided scanning arrangement was required.

Radiata pine has some properties that are not common in North American species, such as needle fleck (bird’s eye), that required additional optimization coding to detect and correctly classify these characteristics for the products Pukepine is producing.

For this application, Pukepine selected BioLuma 2900LVG+ sensors that collect and integrate high resolution laser profile data (0.3”/8mm x 2500 Hz), high density color vision data (0.01”/0.25mm), as well as GrainMap™ data (0.3”/8mm x 500 Hz) from all 4 surfaces of the board. GrainMap grain angle measurement provides more comprehensive defect analysis, and allows the optimizer to detect and classify defects that do not offer significant visual contrast.

This system provides 3D modeling with far more detail than any other scanning system on the market today. continued on page 18

• • • • • • • • •

ENE

CO

with the Tanners, assisting and advising on day-today operations as well as management of capital investment projects. As such, he worked closely with Jeff and Paul Tanner to manage this project. He said, “We selected USNR for this project based on a good working relationship in the past with previous projects, and we were keen to continue building that relationship.

“We hoped to have a oneyear payback on the project based on conversion and grade recovery. We haven’t gone a full year yet, but we are on course to exceed those expectations.”

R

M

ILLS THE world over are enjoying brisk markets, and scrambling to stay ahead of the curve with improved processes.

Pukepine Sawmills is one of those operations that is proceeding with vigorous plans to update its technology and improve its throughput and value recovery. With several projects under way, it selected USNR to install a unique green grading line that is beating targets for return on investment.

Pukepine’s management didn’t mind being the first to try a new concept. They understood that it can sometimes take time to achieve full results from a new design, but believed the benefits would prove its worth. They have a strong history with USNR and were confident they would receive good value for their investment. With several months run time under their belt, the results are exceeding their expectations.

Pukepine Sawmills, located at Te Puke, New Zealand, is owned and operated by the Tanner family; Ken Tanner is CEO, joined by his sons Jeff (general manager) and Paul (engineering and maintenance).

The operation comprises green and dry mills, lumber kilns, a wood treating plant, a secondary processing plant that produces finger-joint and moulding materials, and a paint plant. Pukepine employs 120 on a single shift.

The sawmill produces 50% structural timber products for the New Zealand and Australian markets, and 50% high quality appearancegrade products for New Zealand, Australia, North America and all of Europe.

The mill’s capacity is 100,000m3 annually, up from 65,000m3 with recent improvements.

David Sandford is a consultant who works

Geometric, wane, shallow face and edge wane (saddle-back), skip, crook and twist Planed bark graded as wane Knot location, classification and measurement, end-zone knot exclusion Decayed/unsound knot Bark encasement/bark encased knots Blue and heart-stain High resin content Pitch pockets Needle fleck (bird’s eye) Tear out from chip heads Match line within 1mm (from the gang Splits/shake Slope of grain Rate of growth

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SCANNING

February 2015 – 18

All new grading scanner F

INSCAN has developed an all new grading scanner, BoardMasterNOVA, which has already been delivered to several green and dry grading lines.

The new grading system includes improved electronics, cameras and other key components. It scans individual boards from 10 different angles and makes fast quality analysis and optimization solutions. The new scanner analyses more precisely, for example, knots, holes, splits and shakes. Because of more scanning data the analysis of wane and deformations are done in a more comprehensive way.

All common international grading rules have been implemented for a wide variety of softwood species. A large selection of application programs for different remanufacturing purposes is available.

Pre-grading can be done for component factories, for cross-cutting and ripping, as well as for finger-jointing applications.

The FinScan grading system includes tools for extensive off-line simulations and analyses of the production.

The board end analyser, EndSpy, will analyze the annual ring widths, pith position as well as splits, bluestain and rot

in the board end. EndSpy can be used at sawmills for grading the boards optimally in the drying process. The most common position is quality grading at the dry mill. EndSpy can be used for selecting the appropriate boards -- e.g. for window manufacturing plant -- and it is also a reliable tool for automatic board turning.

MoistSpy microwave moisture analyser measures the total moisture content profile of the board from up to eight positions. It performs fast and very accurate moisture measurements that can be used for analysing drying errors and for quality grading. Temperature variations, air moisture variations or changes in board dimensions do not require continuous calibration check-ups.

BoardMasterNOVA automatic grading

system can be used for green sorting and edger applications in the sawmill, and for sorting of dry boards as well as for final grading of planed boards. FinScan grading systems have been delivered for softwood grading in both large and small sawmills.

In the largest mills, more than 200 boards per minute can be graded and the total production output may be over 500 000 m3/ year. Even in the smallest mills with a capacity about 50 000 m3/year the investment in automatic grading system shall give an acceptable pay-back time.

During the past 25 years FinScan Oy has delivered more than 300 automatic board grading systems to sawmills, making company the globally leading supplier for transversal board scanning applications.

AUSTRALASIAN TIMBER MAGAZINE

State-of-the-art scanner boosts yield and quality

n Microtec’s CEO, Federico Giudiceandrea.

n BoardMasterNOVA installation

Hybrid grade scanning system for green mill application continued from page 17 Another aspect of this green grading system that is unique is the utilization of an end grain scanner that is commonly used with the THG for dry mill grade scanning. A BioLuma 2900V vision sensor is mounted in the lumber line end of the scan frame where its field of view is horizontal, and it scans the ends of the boards as they pass by. The end grain scanner provides valuable data by locating the board relative to the pith in its “parental” log. The optimizer uses this information about pith location in determining knot projection and connectivity within the piece.

Because this is a green line, a cleanup saw is positioned ahead of the scanner to present a freshly sawn, square end of the board for end grain scanning.

Grading challenges This green grading system is based on USNR’s THG. The hardware and scanning technologies required are the same, whereas the primary difference is in the software that is configured to detect and classify characteristics in green vs. dry, and in un-planed vs. planed wood.

When grading green vs. dry wood, some defects change color once they are dried, and this can positively or negatively impact the capability of the grading system to accurately detect and classify those defects. As well, planed lumber allows more subtle use of the system’s GrainMap feature, as the surface is smoother and more uniform. Planing also creates a cleaner surface free from most grease and machining marks, making it easier for the system’s range of technologies to detect minute variations in the wood.

Facing these challenges means making adjustments in the code and training the system to accurately recognize those variations, then correctly classify them within the parameters of specified products. Training the system equates to teaching it to classify each characteristic based on accumulated data that has been fed to the optimizer through scanning a large quantity of boards. Training sets are created for each defect type and for each species that is to be run. The classifier retains this database of characteristics, and compares the scan data to each of these as it develops a solution.

For some characteristics such as stain, the system is tuned to identify areas of interest that are then passed to the classifier to compare the data against its database and correctly classify that particular feature.

Another challenge that is overcome with experience is the natural variations that occur with different species of wood.

While Radiata Pine is similar in its properties to Southern Yellow Pine, there tends to be less contrast between knots and the surrounding wood fibre in Radiata Pine. This demands the utmost in capability from the grading system. It requires minute GrainMap measurements, ultra-high resolution color imaging, and highly dense end grain data combined through DataFusion® to compare and verify all the data inputs before a solution is generated.

Additional projects The mill’s upgraded its existing NSS transverse cant optimization system to version 7.2, and the operating system

to Windows 7. This addressed any obsolescence concerns from the previous version which dated back over 15 years. The new system also offers much more computing power. David commented, “This version is a lot more robust; we’re very happy with it.”

Regarding the new Multi-Track Fence, David related that the mill wanted to be prepared for future increases in speed and throughput. “The Multi-Track Fence is probably overkill for our needs, but we were thinking ahead. We’re very satisfied with the fence’s operation.”

Better than expected With the new grading line operating for several months, David says, “It is exceeding our expectations.” He didn’t want to disclose any specifics other than to say that he projects it will take Pukepine about a year to determine exactly how far the system has exceeded their goals.

He went on to relate that, over and above the increase in value recovery the system is providing, it now sets the stage for further capital improvements at the site. “This project has been based on recovery and grade improvement. And now it also allows us to increase production considerably. We’re in the middle of adding more kiln and boiler capacity, and that allows the sawmill to produce more.”

David was pleased with the way the project progressed overall. He said that in spite of the short timeline, USNR met the timeline and the project was installed during the mill’s 2013 Christmas break. “The grading system commissioned up very well over about 5 months with this being the first 4-sided green scanning system; the technicians did a good job!”

Giving credit David gives much credit to Stephen Wardrop, USNR’s technician who started up and commissioned the BioVision system, and to William Cleland, Pukepine’s optimization technician who works on all the mill’s optimization systems.

He said that William traveled to USNR’s Salmon Arm, BC facility for a week’s training on the system prior to installation, then worked closely with Stephen during the start-up and commissioning phases. Other USNR personnel who worked closely with Pukepine’s team were Nadim Karmali, project manager, Steve Woods and Natalie Peles, software designers, and Shayne Cameron, service technician.

He also gave credit to Pukepine’s in-house electricians, maintenance team, engineers and construction crew who handled the disassembly of the old line and installation of the new equipment. And he related that the trim line’s configuration and layout had to be reworked significantly to accommodate the new processes. He also gave credit to Tui Technology that handled the controls for the project.

Looking ahead With four new kilns and boiler upgrades currently in the works, the Pukepine team is looking ahead with anticipation of continued strong markets. With the investments they’ve already put into place Pukepine is ready to take on fresh challenges.

GE R M A N-BA SE D HIT Holzindustrie Torgau has optimized its production with CT Log, the high-tech solution for saw-infeed and saw-line made by Microtec. After 10 years of development, this is the fifth Microtec flagship scanner to be installed.

Large Cone-Beam technology, developed

by Microtec, allows for the first time a complete digital reconstruction of the internal characteristics of a log.

The CT Log scanner captures all defects and quality features before the breakdown of the log. CT Log enables a perfect sawing pattern optimization, allowing evaluation of all sawing combinations that fit the quality of the final products.

The optimization software determines the sawing pattern which has the highest added value and the requirements of the final product are controlled in real time according to current production requirements.

“This solution will considerably increase the productivity of the sawline, which promotes a sustainable processing of the raw material and improves the yield and the quality of the final products,“ says CEO at HIT, Günther Hilmer.

M i c r o t e c ’ s CEO, Federico Giudiceandrea, explains the technological development of the CT Log: “Computed Tomography for logs, the CT Log, will become an

indispensable part of the sawmill. The trend of the wood working industry is definitely moving towards an increase of value and quality, instead of quantity. The newlydeveloped software for online sawing optimization leads to the most precise results, and realizes the profitability of the investment in a very short time frame.”

In this specific project the CT Log Computed Tomograph is equipped with the Logeye “Fingerprint” system for the recognition of each log and to determine the correct angle. The system recognizes each log reliably any time later on the sawing line, allowing full access of the original CT Log scan information for sawing optimization.

The software tool Maxicut supports the sawing optimization.

This solution maximizes the added value of the sawing patterns by examining all the possible combinations of the activate product lists.

Microtec exports its products worldwide and has branch offices in Linz, Venice, Melbourne and Vancouver.

HIT Holzindustrie Torgau was founded in 1999 in Torgau. Next to the modern production site of short wood and thinnings, the company focuses on the production of pallets, which are produced according to many standardized variants. The diversity of its product range includes products for the packaging industry and wood for house, garden and landscaping. HIT Torgau currently has a capacity of more than 800,000 cubic meters per year. Each day up to 120 truckloads of stems are delivered at three calibrated logyards, where the logs are classified and debarked.

The production of the pallets is carried out on 8 fully automatic lines in 4 shift operation with a daily capacity of 40.000 pieces.

AUSTRALASIAN TIMBER MAGAZINE

SCANNING

New scan heads triple the scan rate of previous models J

OESCAN, Inc., a leading manufacturer of 3-D laser scan heads for sawmills and other wood-products applications, continues to make scanning more accurate and reliable with the evolution of its products.

JoeScan’s latest innovation, the JS-25 X-Series, offers a significantly increased maximum scan rate. The JS-25 X-Series captures up to 850 profiles per second, which more than triples the scan rate of most previous models.

“The faster laser exposure results in higher accuracy, especially when scanning moving objects,” said Fabian Hohmuth, senior software engineer at JoeScan.

The JS-25 X-Series includes six different models – standard and extended-range, wideangle, and two- or three-laser configurations – that provide versatility in sawmill scanning solutions.

The JS-25 X-Series scan heads are backward compatible to the JS-20; they can serve as drop-in replacements in systems that already use JS-20 scan heads.

Most importantly, the JS-25 X-Series complies with JoeScan’s stringent quality standards.

“The JS-25 X-Series delivers a significantly faster scan rate while providing customers with the simplicity and reliability they have come to expect from JoeScan,” says Joey Nelson, the president and founder of JoeScan.

“Quality remains at the forefront of JoeScan’s technology.”

19 – February 2015

ASSOCIATION NEWS

February 2015 – 20 GOLD SPONSORS

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Wide-ranging conference topics to suit all fabricators

By Kersten Gentle Executive Officer FTMA Australia

H

APPY NEW Year to all readers. I hope you had a great break and are refreshed for what I hope will be a dynamic year for the frame & truss industry and of course the wider timber industry we are proudly part of.

The first half of 2015 is already shaping up to be a busy time for everyone with some major events including ForestWorks 7th Annual Industry Development Conference

in Canberra titled Innovation in Action; skills and practices that work.

The ForestWorks conference is the only national conference that covers all sectors of the timber industry and as someone who has attended all conferences, I believe this is a must for our industry and the only way it can continue is ensuring the wider timber industry supports it.

FTMA Australia has proudly participated in ForestWorks Innovation Skills focus with our own Innovation Working Group focusing on ways to minimise the cost of waste to our industry. The Industry Development Conference will bring all working groups together, with industry, to discuss what has worked in practice and I hope readers consider attending this great event.

The conference itself is held on Wednesday, 25 March, however on Tuesday 24 March the Innovation in Workplace Health & Safety Forum followed by the Innovation in Leadership: The Role of Women.

Both these events will be held at the Crown Plaza and again are important events for our industry.

On the evening of Wednesday 25 March, ForestWorks and AFPA in conjunction with many industry associations will be coming together for the Black Tie Gala

Dinner at Parliament’s Great Hall.

The 2014 event was superb with the Great Hall filled to capacity as all sectors of the timber industry networked with politicians and key decision-makers.

From an FTMA Australia perspective the big event for 2015 will be the FTMA Australia National Conference on Tuesday, 28 April, 2015 which is being held at Twin Waters, Novotel on Queensland’s beautiful Sunshine Coast.

Prior to the conference on Monday 27 April we have the Red Activities Day sponsored by Pryda & Hyne where delegates can choose between golf, the FTMA Amazing race or the Segway Challenge. These events then lead in to the official Conference IceBreaker which will be a BBQ on the beach with laser clay shooting over the water during the night.

Recently someone asked me the theme for our conference and I explained our theme never changes and like past conferences the theme for 2015 is Whatever interests the fabricator as the FTMA Conference is all about the fabricator, just like our association.

The FTMA Conferences have continually grown over the years and this year I am wanting fabricators to be provided with a range of ideas on ways to improve

their business from their workers, through to the service provided to their customers. Issues raised by fabricators as topics they would like covered are: Housing Market Overview by Harley Dale Innovation in Waste Management Prefabricated Ground Flooring product research and testing Scheduling software, and; Knowing your business costs The registration and final program will be distributed to fabricators at the end of January and as always the cost for the conference has been kept to a minimum, whilst the fun and networking opportunities are outstanding.

The conference is also a great opportunity for suppliers to promote their products and services to the industry as the FTMA Australia Conference is the best attended national conference – by fabricators, than any other event.

The take up on sponsorship for the 2015 Conference has already been fantastic with only four Conference Sponsorship Packages still available. Exhibition stands are locked in for: • Pryda • Multinail • Austbrokers Phillips • HealthCare Insurance • Vekta Automation

Funding boost helps post-secondary institutions excel in research FPINNOVATIONS and the Forest Products Association of Canada (FPAC) have welcomed the announcement that the federal government is moving ahead with the Canada First Research Excellence Fund. Details of the initiative were revealed by Prime Minister Stephen Harper.

The Fund will position Canada’s post-secondary institutions to compete with the best in the world for talent and breakthrough discoveries, creating long-term economic advantages for Canada.

Post-secondary institutions are already a vital part of the dynamic forest innovation system that has resulted in world-first developments in Canada’s forest products industry. Canada can point to the award-winning cellulose nanocrystal (CNC) research and midply wall construction system as clear examples of cutting-edge innovations brought

by FPInnovations’ strategic partnerships with Canadian universities.

In 2013, Canadian scientist Derek Gray received the prestigious Marcus Wallenberg award for his cutting-edge CNC research during his career with McGill University and FPInnovations. The Midply Wall System, an innovative redesign of standard shear walls used in construction, was developed by scientists from FPInnovations and the University of British Columbia under funding from Natural Resources Canada.

FPInnovations’ high performance Midply Wall System is featured in the winning design for the construction of a five-storey, 9,023m2 elderly care facility in Tokyo’s Adachi

Ward. On completion the building will be the largest wooden building ever built in Japan.

The Midply Wall System, an innovative redesign of standard shear walls used in construction, was selected because of its outstanding resilience to severe earthquakes and extreme winds.

Midply Wall System shear walls sandwich wood-based structural panels between 2x4s that are positioned on their flattest side. Sandwiching the panel results in Midply shear walls having greater structural integrity and dissipating seismic energy. walls.

The Council of Forest Industries of BC and FPInnovations

• • • • • • • •

Daw Trading Hyne Timber Hundegger LP Building Products McCormack Hardwood Sales Mitre 10 Wood Solutions ForestWorks

If you are interested in an affordable Sponsorship Package for Australia’s best attended fabricator conference, please call me on 0418 226 242 or email me at kersten@ftmaaustralia.com. au. With only four packages still available I recommend you get in quickly.

In June the final event for this financial year will be held with Kevin Ezard’s Frame Australia being held at the beautiful Park Hyatt in Melbourne. This year Kevin’s focus for Frame will be on the design and construction of residential and commercial buildings utilising prefabricated timber and engineered wood construction systems.

I would like to finish off the first column by thanking our annual sponsors and welcoming three new Bronze Sponsors with Hundegger Australasia, LP Building Products and StoraEnso Timber all coming on for 2015 at Bronze Sponsors of FTMA Australia.

universities play a key role within the Canadian forest sector innovation system. Federal investments such as this have already led to ground-breaking research and development of game-changing technologies and this Fund will help post-secondary institutions develop a strong capacity to do fundamental research that helps to diversify the Canadian forest sector and contribute to developing new innovative products. That is an essential step toward applied research, pre-commercial pilot projects and eventually to commercial production.” - Pierre Lapointe, President and CEO of FPInnovations.

“The future of the revitalized forest sector is strongly linked to innovation in technology and product development. Though

"The Council of Forest Industries of BC and FPInnovations have long been involved in the implementation of wood-frame construction in Japan." have long been involved in the implementation of wood-frame construction in Japan.

According to a 2008 test conducted on the world’s largest shake table in Japan, a six-storey structure using Midply withstood a one-in-2,500 year seismic event with only minor damage.

“FPInnovations has a long history of collaborating with academic networks because we believe that colleges and

this initiative is not aimed specifically at the forest products industry, this fund will have spin-off benefits of encouraging more discovery research at the university and college level.

Adding to this capacity can only help us reach the ambitious goal of Vision2020 to generate an additional $20 billion in new revenue through new products and markets by the end of the decade.” - David Lindsay, President and CEO of the Forest Products Association of Canada.

ASSOCIATION NEWS

AUSTRALASIAN TIMBER MAGAZINE

21 – February 2015

Association has sights set on a bright future for all G

ARRIE JAMES, Timber Preservers Association of Australia (TPAA) President, described 2014 as a year of change for the organisation. “We had some significant changes in administration and some remarkable opportunities and challenges were presented to the Council and ultimately the industry.

“Moving forward, the most significant changes will be the revamp of the website and the establishment of a Quality Assurance scheme,” said Garrie.

“We aim to offer irresistible value for money for each of the treatment plant number registrants and those who upgrade to full TPAA membership.”

Basic or plant register membership will include: • Website listing of plant number, plant name, treatment chemical, type & location.

• Support of the operations of the plant register & the TPAA. • Representation as part of the peak national association for the timber treatment industry • Industry representation on Standards & industry related committees.

• Opportunity to participate in meetings & events • Contact newsletter Full TPAA membership will include: All of the above • Voting rights at meetings • Enhanced listing on the website to include a link to a personal page for each plant number registered.

• •

Marketing of membership status.

Full member benefits, including discounts and group buying.

“There is plenty of work ahead of us, but we have a brilliant committee to see it through. I would like to thank all who work with Council and Technical Committee.

Most importantly I would like to thank members of the Plant Register and TPAA for showing faith and support for our industry.

“Without you we would not exist, but with you we can grow stronger,” he said when outlining the benefits of membership.

OUR MISSION: To be recognised and referred to for leadership, expertise and integrity as the peak national industry body in all matters relating to the preservative treatment of timber in Australia.

NATIONAL ROLE: TPAA represents the timber treatment sector’s interests to the wider Australian community, governments, public authorities and distribution channels on matters relating to the timber we treat and the preservatives with which we treat it.

STRUCTURE: TPAA is governed by a national Council. Councillors are therefore Directors of the Association, are elected at each Annual General Meeting and are representative of the breadth of our Membership. Currently, of 16 Councillors, nine are Treater Members (including the President), four are Supplier Members, and three are specialist Associate Consultant Members.

TECHNICAL EXCELLENCE: The TPAA Technical Committee includes Australia’s leading scientific and technological experts in the field of wood protection. This is the reason that governments and legislative

LIGNA to present networked manufacturing for the wood and furniture industries C H A N G I N G CONDITIONS are forcing the wood and furniture industries to adapt in many ways. For example, market demand for one-off production is on the rise, and industry needs to deliver on this without compromising quality, efficiency or flexibility.

The same goes for optimizing resource consumption and the longterm traceability of the components and materials used. In order to meet these and other challenges, it is essential that wood and furniture industry professionals as well as mechanical engineering and automation specialists pool their expertise and together develop suitably networked and integrated approaches to manufacturing.

The place where it all comes together is LIGNA – the world’s leading trade fair for the forestry and wood industries. At LIGNA’s next staging (11 to 15 May 2015), exhibitors will be providing a comprehensive and revealing look at how cutting-edge networked production is already possible today. The most

important innovations and solutions for smart manufacturing will be on display, giving tangible shape to the “Smart Factory” vision for woodworkers, wood processors and furniture makers.

Custom production of one-off furniture items requires a high degree of process reliability. System availability, throughput speed and processing performance must be in tune to ensure quality and efficiency. This requires very precise measurement technology as well as a high degree of automation. Each individual assembly needs to perform dependably, and communication between the various machines has to be seamless, also right on through to the planning and marketing phases.

Smart automation solutions in the wood and furniture industry can enable manufacturing facilities to autonomously predict tool wear in advance, reduce emissions, optimize energy consumption through tailored assembly control, and prevent production flaws. Downtimes, manual adjustments and scrap

are minimized, machine operating convenience and service life are improved, through-times are optimized, and productivity and energy efficiency raised – all without higher automation technology costs.

Smart automation technology thus contributes significantly to making furniture manufacturing more flexible, efficient and sustainable. Already today, existing and new plants can be equipped with the core technology, which is PC-based and open system. Thanks to advanced telecommunications, data from every link of the production planning and manufacturing chain can be seamlessly exchanged in real time.

So far, only applications of limited scale can benefit from the above technology.

Currently available PC computing power cannot yet cope with the necessary volumes of data to control complex machines and systems. However, automation specialists are already working closely with their partners on promising new concepts.

n GARRIE JAMES, Timber Preservers Association of Australia (TPAA) President.

authorities listen to and respect the many technical, informed recommendations and submissions that we make on behalf of our Members.

SECRETARIAT: The TPAA National Office is currently based in Brisbane.

The Secretariat has, for the past 20 years, been out-sourced to specialist companies, the Principals of which have personally had long-term involvements in the timber treatment sector.

ACHIEVEMENTS: TPAA is one of the main drivers in the development of Australian Standards relating to timber preservatives, analysis techniques, treatment plants, etc.

These Standards help specifiers, policy makers and end users to have confidence in the use of treated timber.

COMMUNICATION: The TPAA Newsletter “CONTACT” is distributed every

two months, not only to Members but to an international mailing list of several hundred interested stakeholders - and that list keeps growing! Our website at www.tpaa.com. au receives an enormous number of “hits” every day of every week of every month of every year! Each TPAA Member is listed on the site, providing a means for potential customers to contact members.

LIAISON WITH OTHER ASSOCIATIONS: We know that there are many other timber industry associations and we liaise with them all on your behalf.

TPAA itself is now an Associate Member of Forest & Wood Products Australia (FWPA).

However, TPAA is the only peak national industry body to represent the timber treatment sector. + Sincere thanks to Doug Howick, Editor, TPAA “CONTACT” Newsletter.

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ASSOCIATION NEWS

February 2015 – 22

Obligations - changes to rosters or hours of work

By Brian Beecroft Chief Executive Officer Timber Trade Industrial Association

E

MPLOYERS SHOULD be aware that TTIA has received a number of calls regarding any additional obligations when changing hours of work of their staff. Employers need to be conscious that effective 1 January 2014, all modern awards have included an additional obligation to consult with employees (and their representatives, if any) about any change to rosters or hours. The new consultation clause under the Timber Industry Award 2010 is as follows:

“9.2 Consultation about changes to rosters or hours of work Where an employer proposes to change an employee’s regular roster or ordinary hours of work, the employer must consult with the employee or employees affected and their representatives, if any, about the proposed change.

The employer must: provide to the employee or employees affected and their representatives, if any, information about the proposed change (for example, information about the nature of the change to the employee’s regular roster or ordinary hours of work and when that change is proposed to commence); invite the employee or employees affected and their representatives, if any, to give their views about the impact of the proposed change (including any impact in relation to their family or caring responsibilities); and give consideration to any views about the impact of the proposed change that are given by the employee or employees concerned and/or their representatives.

The requirement to consult under this clause does not apply where an employee has irregular, sporadic or unpredictable working hours.

These provisions are to be read in conjunction with other award provisions concerning the scheduling of work and notice requirements.”

The obligation is similar to the obligation to consult employees regarding major workplace change (which most commonly comes into operation when redundancies are proposed).

In the context of changes to rosters or hours, the obligation arises where an employer proposes to change an employee’s regular roster or ordinary hours of work. The obligation is to provide the employee or employees affected and their representatives (if any) with information about the proposed change (e.g. the nature of the change to the roster or hours and when that change is proposed to commence), to invite the employees affected to give their views about the impact of the proposed change including any impact in relation to

Maintaining customer relations is crucial

By Eric Siegers Executive Officer TMA NO MATTER what the economic boffins say, I remain optimistic about this year. Yes, it looks like Melbourne is becoming over-built with apartments. Yes, it looks like properties are overpriced in the capital cities; and yes, negative gearing is a constant source of dispute ... but the prevailing economic conditions are still positive!

What is important is recognising that the businesses that weather the storm of economic change are the ones that are constantly monitoring, and improving and recognising that keeping a customer by keeping them satisfied is more beneficial to the bottom line that always struggling to find a new customer.

In fact, research shows that customer retention activities add about 5% to the profit line! So it’s worthwhile to work on keeping the customer.

It sounds like an easy thing to do. However, so many businesses are fixated on the sale they forget the simple things like profitability, deliverables and importantly the relationship. As any of us who have been around for a while will know it’s the relationship that matters! Funny thing happens in the rush to make the sale – the customer relationship is often forgotten.

While it’s a simple message it’s one that is easily forgotten in the heat of necessity and I’ve heard of many businesses that normally build solid relationships go for the sale only and then regret it.

There are lots of reasons why a business fails to respond with confidence in a difficult time, we have all done it, but it stresses the importance of keeping your business crisis ready. In a similar way to meeting the needs of OH&S requirements, a business needs to be certain it is customer ready.

In the same way staff are trained on matters of OH&S, sales training needs to be ongoing and consistent and importantly reflective of the organisational strategy.

The TMA is working to deliver sales and marketing training relevant to the sector to align with the popular Timber Knowledge course, and the soon-to-bereleased Industrial Relations Training for Management.

AUSTRALASIAN TIMBER MAGAZINE

family or caring responsibilities, and to give consideration to any views expressed. This does not, of course, require that those views must be accepted, but they should be considered in good faith, and accommodated if practical.

It is fairly common for most TTIA Members to communicate with employees about the changes to hours and when such changes should commence. The gist of the provision is that rather than telling an employee what the changes will be, changes should be communicated as a proposal with scope for response, and indeed the obligation could be read as including an obligation to actively enquire about how the change might affect the employee’s family or caring responsibilities, rather than stating the position and leaving it to the employee to raise that issue.

What might be required in that regard would depend on how significant the proposed change is: if it involves weekends, or early or late hours, or hours which affect the ability to collect children from school or childcare, then it will be necessary to ask the employee what effect the proposed change will have.

Although there is no obligation for this consultation to be accompanied by written notice or records, a prudent employer would note on the personnel files of the affected employee at least brief details of communication and response, and any subsequent change to hours or rosters.

The potential consequence of failing to consult with an employee as required would be prosecution by the Fair Work Ombudsman for breach of an award condition. In practical terms, this is most likely to happen in cases where no genuine consultation took place or the employee was threatened with termination if they failed to comply with the direction.

In summary, under that legislation introduced by the previous federal government, the employee would have the right to take the matter further. We therefore need to be seen to apply a genuine consultation process. If you are in any doubt regarding the employee’s response after further consultation, please do not hesitate to contact the TTIA advice line on (02) 9264 0011 for further guidance.

Busy calendar of events planned by TMA THE TIMBER Merchants Association has a lot going on this year so it has been working hard to get the programs for the year pulled together. Some of the agenda items are member only (such as training on IR and HR items) but others are available to the broader industry.

Please mark your diaries for the following: February 28 : Business support update – discussions and presentations from OH&S, Insurance and Internet providers to assist in business development and advancement. Member only function.

March 19: First TMA breakfast – This year we will be exploring the market and importantly solutions to engaging your customers. In the first breakfast we will provide hard data as to how customer behaviour is changing, and what the ramifications are for your business, strategically, functionally and the bricks and mortar investment of your facilities. It will be a breakfast not to be missed! Watch out for the survey regarding this breakfast, we want to know what data you would like to see!

Members get priority at this event.

March 25: Canberra Gala Dinner at Parliament House. A great opportunity to network with politicians, lobbyists and national representatives. A follow on from a highly successful industry event in 2014 that saw over 600 members of the supply chain reinforce the power of the industry across the political spectrum.

April 28: Timber Knowledge course. Member only function

May 8: TMA Dinner: A celebration, a party, to be entertained while networking with you colleagues in the merchant sector. Open to broader industry June 10: Timber knowledge course. Member only function.

June16: TMA breakfast series to explore market and growth opportunities for the merchants.

July 23: Business support update. For those members that miss out on the February 28 event Member only function.

Month of August: Building industry support month where we will be undertaking a series of workshops directed to the building community together with Business Victoria and the small business festival. This is a great networking opportunity with our most important market and is designed to build awareness of the value merchants bring to the supply chain across business, social and environmental spectrum.

September 24: Industry Breakfast October 6 : Timber Knowledge Course: Member only function November 26: Breakfast series.

There is a lot more we are working on so keep your diaries up to date as we give you more information.

We are still working on the dates, but in the next few weeks we will be releasing the dates for employer training on IR & HR management needs.

Emma Watt will be offering an industry focused series of workshops designed to help managers build knowledge with industrial and human resources issues. Many business managers

are not comfortable working through staffing issues, often to the detriment of the business. This series of workshops is designed to build experience using case studies and role play in a small group environment.

Spaces are limited because we want to make the training focused to maximise the results. Built as a series of workshops and spread across the year you can choose to do all 10 modules, or just those that meet your particular needs.

These workshops are designed to help you get the most from your people so that your business retains customers, builds stronger market capability and strengthens your role in the community.

Workshops: • Employers & Employees … the basis of the relationship • Awards, agreements and the National Employment Standards • Recruitment – getting it right from the start • Documentation … what you have to have • Performance management … a robust process • Managing misconduct • Termination of employment • Preventing and managing discrimination, harassment and bullying • OHS Management Systems for Small Businesses • Workers compensation and Return to Work obligations … the basics Should you have any questions regarding any of the items above please do not hesitate in contacting either Eric or Ingrida at the TMA.

ASSOCIATION NEWS

AUSTRALASIAN TIMBER MAGAZINE

23 – February 2015

Timber floors in renovations

In many cases when it comes to renovations timber floors are the only choice with the desire to extend an existing timber floor area into the addition. Or perhaps there has been a multitude of flooring surfaces and the desire is to have a new timber floor that flows seamlessly from one end of the dwelling to the other. This all sounds easy but as David Hayward ATFA Technical Manager explains, you must still dot the i’s and cross the t’s to ensure that floor performance is optimised.

A

S THE saying goes, a building is only as good as its foundations and the same principals apply with renovation work. The desire is always to obtain the awe inspiring look however if the conditions beneath the new floor are not correct then these can severely influence the floor’s performance. There are a number of key aspects that come into play on this, which we will go through.

Often existing floor surfaces are old and not particularly flat but with carpet or similar, the degree of flatness (undulations) or how level the floor is (slope) has gone unnoticed. So, the first rule is to pay attention to what your new timber floor is going over. Time and money spent to level joists and bearers or concrete slabs is well spent. Time to remove problems such as squeaks in existing timber of sheet subfloors is time well spent and time to check the integrity of timber floor framing or old concrete slabs is also time well spent. Address any issues, because potential problem areas that are covered up have an uncanny knack of becoming a future problem.

The second rule relates to the dryness of the subfloor. There have been many times that it has been said ‘well it looked dry’ or ‘it had an existing timber floor so it must be right’ or ‘the slab has been here for years’ only to find that a lack of attention in this area has resulted in floor failure. A moisture survey of all subfloor surfaces and the adequacy of subfloor space ventilation is a necessity.

Unless these aspects are checked, the new floor should not be laid. If an existing timber floor is present then its moisture content will provide a good guide to what the moisture content of the new floor will be. Also ensure that an extension to the dwelling does not create any new dead air spaces beneath the floor or reduce the level of ventilation that had previously been present. The addition of a new patio can for example cause this.

Another common error is to assume that because a concrete slab has been down say 15 years then it is going to be dry. Yes, it has had plenty of time to dry but this does not take into consideration how permeable the slab is and permeability goes back to the initial concrete mix. So old slabs can still be moist slabs and you need to check this.

And finally with this, when extensions are to have timber subfloors, always ensure that the new joists and bearers are from seasoned products, as unseasoned timber framing, even though it has been used in the original dwelling, will shrink and result in future problems.

When it comes to adding the timber floor both industry and manufacturer recommendations need to be followed.

Although this would appear to be common sense, due to unevenness of the existing dwelling or existing floors at slightly different levels, there can often be a temptation to compromise. That is, one area of the floor may have been laid with thinner plywood or battens than that recommended. Also take care to ensure the fixings are also adequately strong throughout the whole installation including the likes of particleboard to joists which may have been fixed many years prior.

The next aspect that may need to be considered is the matching of the new floor to the old floor. Some additional care is needed here, as simply choosing the same species can provide a different look and can result in unexpected disappointment. Flooring cut at different times and from different localities generally has a different look. Old floors with old coatings can also darken considerably n A renovated Queenslander. with age and therefore look quite different, even if the timber is closely matched. Some species and species mixes will however blend better than others but in other instances new flooring of the same species can look quite different. So take time and particular care in this area. Perhaps there is a case for the new floor not to closely match the existing or be of a different style, such as use of parquetry. Also consider the condition and life remaining in the existing floor that you may be trying to match. It could well be that when the budget permits that you will decide to replace the old floor and therefore this should have less influence on the selection of the new floor.

Renovation work is a little different to new installations requiring more thought throughout the process. However, appropriately considered the new timber floor to the renovation or addition can be all that you dreamed it would be and provide many years of service and elegance to your home.

RTOid 4168

For 2015 Course Programs Phone n A new Blackbutt floor to a renovated Queenslander.

n David Hayward ATFA Technical Manager.

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