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NEWS
AUSTRALASIAN TIMBER MAGAZINE
3 – November 2014
Fibre boom starts taking up the slack T
HE FIRST forest product industries annual business confidence survey suggests companies are emerging from the global financial crisis and are well positioned to help the economy weather the decline in the mining sector. The survey’s headline Business Confidence Index for FY 2014 /15 is +13.73 (out of a possible 40). Of the States, South Australia is showing the most potential with 77% of executives expecting to increase their capital investment this year.
n Percentage of executives predicting increased capital investment
“Through the last decade the forest products industry was hit very hard by the triple crunch of a stubbornly high dollar encouraging a massive growth in imported timber, the global financial crisis (GFC), and soaring input costs such as energy,” said Chief Executive Officer of the Australian Forest Products Association (AFPA) Ross Hampton.
“Our forest products industry companies are now leaner and well positioned to take advantage of the forecast recovery in the retail sector for consumer goods such as tissue and paper, and timber for new housing starts which are hopefully moving back toward pre –GFC levels of about 150 000 a year. “In addition to this domestic demand, analysts predict that the USA will again build up to some 1.5 million housing starts and that, of course, is dwarfed by the potential in China which will soon be 15 million a year. “In a carbon constrained global economy the use of timber in our buildings has enormous long-term benefits for the environment,” he said. “The Australian forest products industry is well placed to take advantage of this fibre boom. “The Government is to be congratulated for its ongoing support for the industry, most noticeably through the recent formation of the Forest Industry Advisory Council, and its understanding that the industry needs a national fibre and forestry plan. “It should be noted, however that, with the decline of managed investment schemes, tree planting for forest products has effectively come to a halt in Australia. Policies to promote greater innovation and valueadding of this fibre will also be important. “The 80 000 people who work directly in forest products industries largely in regional Australia, applaud the Government for its strategic thinking which should ensure that we capture the opportunity to be part of the regional fibre-boom,” Ross said. Senator Richard Colbeck, Parliamentary Secretary to the Minister for Agriculture said the survey showed that Australia’s forest products industry was recovering under a
Coalition Government that recognises the importance of forestry. He said it was particularly pleasing to see a high level of industry confidence returning after years of mismanagement under a Labor Government that did not recognise the importance of forestry. “Timber is undoubtedly the building material of the 21st Century and Australia is well placed to take advantage of the opportunities presented by this trend.” Senator Colbeck said the Coalition is focussed on creating the right policy foundation for a strong and sustainable long-term future for the forestry industry, including the forest products sector. “We have done as promised and removed the toxic carbon tax, resulting in significant cost savings for business,” he said. “I recently announced the establishment of the Forestry Advisory Council which will develop a national plan for the industry. Council members have wide-ranging experience within the forestry industry and community.
“We are committed to supporting longterm Regional Forest Agreements and establishing a 20 year rolling life for each agreement and have begun working to implement this policy.” National Business Confidence Indices for Forest Products Industry (out of a possible 40) Change in business conditions Change in capital investment Change in total value of sales Staffing level Export volumes Export prices
13.73 12.8 12.8 6.25 10.64 5.96
Note: While the index has a theoretical maximum of 40, this would require 100% of companies to indicate an expectation for ‘significant improvement’ A baseline of zero would indicate a unanimous forecast of ‘No Change’ while negative numbers would indicate a forecast of diminishing conditions.
Key finding State by State include
NSW
VIC
QLD
SA
WA
TAS
Increase in capital investment
60.00%
71.43%
62.50%
76.92%
66.67%
72.73%
71.43%
80.00%
75.00%
83.33%
80.00%
90.00%
35.71%
42.11%
40.00%
54.55%
35.00%
63.64%
64.29%
78.95%
64.29%
83.33%
57.14%
81.8%2
42.86%
47.37%
42.86%
66.67%
52.38%
45.45%
Increase in sales value Increase in staff
Increased export volumes Increased export
Hyne stalwart hangs up his hat TERRY BAKER says his connection to Hyne Timber didn’t end upon his retirement on 26 September. 2014. Reflecting back over almost 29 years, he speaks very highly of the Hyne family. “The main thing I’m going to miss are the people; coming to work and communicating with these great guys. They will be my friends for life but I’ll no longer get to see them every day like I do now.” Terry said that visiting other pine mills in Australia and overseas, it proved Hyne is a world leader. “A tremendous amount of thought and planning is always done prior to making improvements, ensuring a positive result is always obtained,” Terry said. Terry previously worked with another well known, family-owned company called Fairlie and Sons who were sawmillers and joiners. This is where Terry completed his trade as a joiner machinist and went on to work there for 20 years. He had connections to the timber industry as he grew up. His father worked on the plantations including the Tuan forests, working as part of the teams who had the foresight to plant the 30 year cycle in order to maintain the softwood resource into
n How times have changed – Terry reflecting on his 28 years at Hyne – Tuan Mill Timber Merchandiser.
the future. Little did his father know, his son would be processing these stems through the Tuan Mill many years later! In 1985, Terry started work for Hyne and managed the Dry Mill in Maryborough awaiting the opening of the revolutionary Tuan Mill nine months later. Although they were already manufacturing small amounts of pine to train staff and test the market, nothing prepared Terry for the high speed planers he was about to use at Tuan. “After a week of training in Sydney, we put the first piece of timber through at Tuan. That planer was scary; boards just flying past at 120 linear metres per minute. Nowadays, that’s up to 620 linear metres per minute. “We wouldn’t have imagined that back then. The
Tuan Mill was unique and I was and still am proud to have been a part of it since its beginnings. “We would get visitors from all over. Prime Minister Bob Hawke, Premier Peter Beatie and many other VIPs were visiting on a regular basis,” he said. He recalled how Warren, Richard and Chris Hyne practically lived at Tuan at the time. “Everyone was invested in Tuan. It was, and still is, all of our futures, not just the Hyne family. We all have a name; no one is simply a number. “I ran my area like it was my own business, spent money like it was my own, treated machinery like I had bought it myself, and continued on page 4
Our name has changed but not our mission. • The NSW Forest Products Association is now Timber NSW. • Membership is now open to all NSW timber growing and processing businesses. • We remain a strong, united industry advocate to government. • Our work underpins a sustainable timber industry. • Our advocacy promotes timber as a renewable resource with economic, social and environmental benefits to NSW.
Become a member today: call Maree McCaskill on 02 9279 2344 email info@timbernsw.com.au online www.timbernsw.com.au
NEWS
November 2014 – 4
AUSTRALASIAN TIMBER MAGAZINE
Building jobs and seeing the fruits of good planning By Steven Burke Wangaratta Chronicle
A
NOTHER good news story has emerged in Wangaratta’s employment sector. Merriwa Industries, a fixture in the local manufacturing industry and a major employment provider to people with disabilities, is experiencing growth across several of its sectors. Some 215 people are employed through Merriwa Industries, which includes staff at the Greta Road headquarters and timber division, Superior Joinery, Whitlands Sawmill in Gibson Street, Park Lane Nursery and an accommodation services division. To put that in context, some 217 people are employed by the businesses operating on the former Bruck site – Australian Textile Mills, Wilson Fabrics and Australian Weaving Mills. Merriwa chief executive officer Bart Crawley said the growth of the business was down to planning and providing products there was a demand for and serving customers. “We’ve got to be progressive,” he said. “The reality is we’ve got to provide a commonly accepted product and serve the customer’s needs. If we don’t do these things we won’t be in business.” Mark Umanski is Merriwa Industries production manager, overseeing the engineered timber products division, including glulam beams, bench tops, posts for in-ground applications and stair treads. He came to the company 23 years ago when
cake boards (which are still made at Greta Road) were Merriwa’s main speciality. Now, he oversees a workforce of 60, two thirds of who are in supported employment. The huge glue laminated, finger jointed beams made in the Greta Road facility are sold by Bunnings and are used throughout the building industry. Specialty crates for export of components by Schneider Electric are also made at Greta Road, as well as new modular decking and numerous other products. Mark said the laminated division would have to expand in the next 12 months. “We’re investing heavily in our timber division to keep up with demand,” he said. “We’ve got the latest equipment which gives us a competitive edge. “A lot of other companies wouldn’t invest to the degree Merriwa has and that allows us to take on more jobs in more areas.” Merriwa’s planning also includes an average annual $100,000 investment in compliance, which is paying dividends. It’s a similar story at Whitlands Sawmill, which Shane Everett manages. He started at the sawmill seven years ago as a wood machinist and became a manager a year after Merriwa took over the company in 2010. Hardwood flooring and dressed board for joinery are made at the Gibson Street facility which employs 11 people. “At the moment we’re struggling to keep up with demand,” Shane said.
n INNOVATIVE: Mark Umanski at work in Merriwa’s timber division, attaching rubber blocks to timber which would be suitable for use in a school gym. PHOTO: Luke Plummer
n STRONG PRODUCT: Phil Lowrie works on the huge glue laminated, finger jointed beams produced at Merriwa Industries. PHOTO: Luke Plummer
Hyne stalwart hangs up his hat
australasian
continued from page 3 magazine Incorporating Australian and New Zealand Timberman – Established 1977.
November Vol.22, No.7 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: Norm 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:
“Since the start of the year we’ve increased productivity by 20%. At Christmas time we’re going to restructure the saw mill and bring it up to modern specifications. “That should give us 10–20% more efficiency than what we’ve got now. “Growth is predicted to continue – we’re turning away work at the moment.” Some 80 of Merriwa’s 215 employees are in supported positions and the company largely owes its existence to this cause. But Mr Crawley said Merriwa wouldn’t exist if it wasn’t competitive and forward thinking. “Merriwa’s goal is to provide employment opportunities for people with a disability. “We also need to make sure that the work is sustainable – it is work people can do and it’s ongoing. “And it needs to be profitable. “The social benefit is a bonus.”
respected others like they were family. “Warren Hyne would have regular, open discussions ensuring our productivity, costs etc were in control, and it was always a pleasure working with Warren,” Terry said. Throughout Terry’s years with Hyne Timber, he was largely based at Tuan. Occasionally he spent time as part of the Management Improvement Teams at Tumbarumba and Mary Valley, ensuring these mills were operating to the same standard as Tuan, or
“reinventing the wheel” as Terry put it. Tuan grew and expanded over the years as did Terry’s career going from Dry Mill Manager to Production Manager, to Site Services Manager. It hasn’t always been smooth sailing along the way for Terry. About 10 years ago, he was diagnosed with a serious illness. Upon reflection of this traumatic and emotional period, he speaks fondly of the Hyne family and the crews he worked with who supported him, kept his job for him and he says the people during that time are
the memories he will keep for life. After 12 months of travelling for treatment and operations, Terry got the all clear and returned to Hyne, resuming as Site Services Manager, having a joke and making the most of Tuan life.
With a total of 50 years work in the timber industry behind him, Terry and Daphne plan to enjoy many more years in retirement, travelling, continuing to go on cruises and trying to find some extra time to even wet a line.
Beyond the call of duty
CHRIS HYNE, Director of Hyne Timber and a fourth generation Hyne, said he worked alongside Terry Baker since the day he started. “Terry has always been an incredibly dedicated member of the Hyne team and I am very aware of the significant contribution Terry has made over almost 29 years of his life. “He has continuously operated to a high standard, well beyond the call of duty, working closely with my family over the years. “He had an integral role in establishing and growing the Tuan Mill, while providing support to Tumbarumba and Mary Valley along the way too. “It’s guys like Terry who really make the business. He can look at the Tuan Mill today and take pride in knowing he was a key player in its success. “On behalf of my family, I would like to express our sincere thanks to Terry and wish him a long and happy retirement,” said Chris.
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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.
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INDEPENDENT & AUSTRALIAN OWNED
n Terry Baker at the Tuan Mill, September 2014.
n Terry at the Tuan Pine Plantation which was originally planted by his father.
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NEWS
November 2014 – 6
AUSTRALASIAN TIMBER MAGAZINE
Quality and success go hand-in-hand T
HE CONSTRUCTION market is booming, and ATS Timber is taking full advantage of this thriving time. As one of Sydney’s largest importers and distributors of timber, engineered wood products and building materials, ATS Timber has grown exponentially over the years. As the company continues to experience success in a prosperous market, it consistently turns to the LP® SolidStart® Engineered Wood family of products because it provides unmatched quality for ATS customers. “ATS Timber focuses on providing excellent service and a wide range of top-of-the-line building products — at competitive prices,” said Haytham Moshi, founder and president of ATS Timber. “When I discovered LP’s engineered wood products at an industry expo a few years ago, I knew I had found both a supplier and a commodity that would deliver on our core values as well as differentiate ATS from our competitors.” ATS history And Moshi is a man who knows his stuff. With over 20 years of experience in the timber industry, he has worked in a variety of positions, including the timber furniture business. He soon realized, though, there were greater opportunities in the timber and building products industry. In 2001, he established ATS Timber out of his family’s garage. Now, the company has a large location in Northmead, near Sydney, as well as a distribution site based in Adelaide. “Through many years of hard work, and using the highest quality products, like LP engineered wood,” said Moshi, “we’ve been able to gain consumer trust and more importantly, continuous business, ultimately lifting our company’s reputation in terms of providing the best in building materials. The benefits we’ve seen through using these products are many, and because of that, we consistently have faith in the products we deliver, and our customers are always confident in ATS.” LP SolidStart Engineered Wood Products offer cost efficiencies and sustainability benefits that traditional timber cannot match. When it comes to strength, durability and consistency, LP SolidStart products are designed to outperform wood every time. They’re typically lighter in weight as well, making them faster and easier to work with. ATS Timber sells the full LP SolidStart Engineered Wood Products (EWP) family, including LP SolidStart LVL, LP SolidStart Rim Board and LP SolidStart I-Joists. Engineered wood in action Sydney-based Jonathan Homes—a customer of ATS— recently completed construction of the Saints Peter & Paul Parish Church in Cecil Park, Sydney. With the wider, vaulted ceilings, in both the place of worship and assembly hall, they needed a product that would offer both length and strength. They turned to LP® SolidStart® LVL. “Before LVL and the engineered products these length rafters would have been a nightmare, with many connections and supports,” said George Jamu, owner of Jonathan Homes. “It will be much easier with the longer length LVL. Once the roof is installed, we will have a solid platform of great, even rafters, that haven’t swollen, bowed or twisted out of shape.”
n The church project.
Jamu has exclusively used LP SolidStart LVL and LP SolidStart I-Joists for the past three years for residential projects. “We have not had a single call-back regarding LP SolidStart LVL or I-Joists in our homes. This is worth a lot to me and the business from not only cost savings but also our reputation for using the best quality products.” LP Building Products delivers more As more Australian builders and distributors turn to LP Building Products, the company has updated its LP® SolidStart® LVL facility, LP Golden in British Columbia, Canada. “We’ve seen a lot of changes to our Golden facility, including new gang rip saw equipment, SiteCote™ and unit size flexibility, H2S treated LVL and increased cargo capacity. All of these updates have positioned the mill to become our primary source for international LVL,” said Bryce Piggot, plant manager. Renovations started with the installation of new stateof-the-art gang rip saw equipment, which improves metric dimension capabilities and allows LP to consistently offer four eased edges on LP SolidStart LVL, according to Piggot. “The facility can now also apply LP’s unique SiteCote seal to just wide faces and ends of 90-mm studs and joists when specially ordered by customers. We can mix these special orders with product that has SiteCote on all six sides—such as ends, edges and wide faces—in the same shipping container,” Piggot said. To learn more about these products, visit LPCorp.com/ AU or contact IntlSales@LPCorp.com. To learn more about ATS Timber, visit atstimber.com.au/.
NEWS
n Haytham Moshi, Director of ATS Timber (left) and George Jamu, owner of Jonathon Homes.
NEWS
AUSTRALASIAN TIMBER MAGAZINE
7 – November 2014
WoodSolutions joins Frame 2015 conference W OODSOLUTIONS will join the Frame Australia 2015 Conference as exclusive “Principal Supporter” to assist in designers and builders being aware of the benefits from wood construction in residential and commercial construction. The Frame 2015 event titled ‘Building with engineered wood construction systems’ will be held at Park Hyatt Melbourne on June 1, 2015, with topics on current trends and analysis of building projects utilising prefabricated timber and engineered wood. Eileen Newbury, Marketing and Communications Manager for Forest and Wood Products Australia (FWPA), said: “WoodSolutions is a resource for design and building professionals in providing access to information on timber products and technical data to assist in specification. “The Frame conference program will present topics with information that complements WoodSolutions’ activities, providing comprehensive hands-on information for timber and wood building construction. “The FWPA supports a range of initiatives by WoodSolutions in providing information to specifiers on timber and wood, and this event will assist in greater understanding of the potential in multi-residential and commercial developments,” Eileen said. “Following our Frame Australia conference in May this year, feedback from the design and construction delegates was overwhelming in being interested in more information on prefabricated timber off-site building solutions,” Conference Director Kevin Ezard said. “It is being suggested a ‘timber revolution’ is under way in Australia, with an increasing number of residential and commercial buildings being designed in timber and engineered wood. “A key driver behind this trend is planning changes by State Governments increasing the density and height
of housing in the inner and middle suburbs, to check the increasing sprawl of our major city boundaries. “Residential construction projects of 3 to 5 storeys are now being built with pre-fabricated timber frame and engineered wood systems at much lower cost than traditional steel and concrete. “Savings are achieved from increased speed of construction, reduced labour on-site, improved health and safety, higher quality buildings, and lower overall development costs,” said Kevin. These opportunities will be extensively discussed at the Frame Australia 2015 conference and exhibition next year, and for more information visit the website www. frameaustralia.com
n Kevin Ezard.
n Eileen Newbury.
ForestWorks 7th annual Industry Development Conference and dinner
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FORESTWORKS will next year again host its annual flagship conference event for the forest, wood, paper and timber products industry. The special event will be held in Canberra on 25 March. The Innovation Skills Program event will offer an exceptional forum for professionals to extend their industry knowledge and expand their network. Michael Hartman, ForestWorks ISC Chief Executive Officer, said it was great to have the opportunity to deliver the industry development conference as a key educational event for industry with a focus on innovation. “We aim to provide participants with valuable information and examples in our industry about what makes innovation work. “At the 2014 conference in March we talked about how to make innovation happen. In 2015, we will look at examples of how it happens and why, including innovation success stories and case studies. “We will look beyond the innovative technologies in our industry and focus on the people, exploring
how they bring about innovation,” said Michael. Due to the success of this year’s Industry Gala Dinner, ForestWorks will again work with the Australian Forest Products Association (AFPA) to co-host a similar event at Parliament House. Michael said that it was great to work with AFPA on this dinner, and also with all the associations that participated with their members. Further details will be announced in the coming months, including the conference theme, speakers and venue. For more information please contact ForestWorks: forestworks@forestworks. com.au
n Michael Hartman, CEO ForestWorks
NEWS
November 2014 – 8
Historic bandsaw now on display O
NE OF the largest bandsaws ever used in Australia is now on display at Gympie’s Woodworks Museum. Chris Hyne, of Hyne Timber, dedicated the bandsaw during the museums 30th Birthday celebrations. Chris said Hyne Timber had been a part of the local community since 1882 so having such an iconic piece of the industry displayed and preserved at the Woodworks Museum was fitting, “The local timber industry has provided sustainable employment for Queenslanders for many decades. Throughout its history, everyone has had some connection, even if it’s simply that you live in a timber framed home. “This 6 metre high bandsaw was the second to be used at the Maryborough sawmill and it represents a large piece of our history. “It was sawing hardwood from 1979 to 2009 including Fraser Island Brushbox and Satinay. “Many people from Hyne have fond memories of this bandsaw and we were pleased to contribute to the relocation and installation expenses to share it with the community. “The museum staff and volunteers have done an exceptional job in installing and presenting the bandsaw. They should be commended for their efforts.” Chris said. The last Saw Doctor to work with this bandsaw was Stan Petersen. He said when it was operating well, it just sang to you. “As a Saw Doctor, I could hear immediately if there was something wrong from wherever I was in the mill. It’s hard to explain but your ear tunes into it. “The Fraser Island Brushbox and Satinay logs were so full of silica that every tooth point had to be hardened by heating with an
oxy torch until red, creating a case hardened tip after sharpening. “I worked with this bandsaw for 23 years and even filmed the last log going through on the 7th April 2009. “I was extremely pleased to hear it would be displayed. I found the old log book and provided it to the Museum. It belongs with the saw after all,” Stan said. It was purchased from Barnett Bros at Bell Bay in Tasmania but originally manufactured by Isles Forge and Engineering at Coffs Harbour. The bandsaw is 14.7 metres long, 2.4 mm thick with a swaged tooth at 3.4 mm and a pitch of 50mm and gullet depth of 19mm. The blade was strained to 6800kg and spun at around 1982 metres per minute. It could cut a 600mm deep cut at a feed speed of 44 metres per minute. The bandsaw wheels had to be ground annually which took two days. They were ground with a 3mm crown at 115mm from the front. Brief history: In 1905 Henry J. Hyne purchased the first bandsaw (not the one displayed at the Woodworks Museum) known in the industry as ‘the old Allis Head rig’. Its previous owners, a New South Wales timber mill, had been unable to use it effectively to cut Australian hardwood after importing it from Canada. Many within the industry at that time wondered how Hyne Timber planned to use it effectively. Henry J. Hyne recognised that this bandsaw relied on the people operating it. Through the innovative skills and experience of the employees such as legendary millwright Yankee Jack, Bill Tate, Jim Smith and Harry
Ruback, the bandsaw was successfully used on hardwood. Lambert Hyne steered the company for 40 years including through the dark days of the great depression. He opened wholesale and trade outlets, established regional sawmills and most significantly, he began cutting plantation pine as early as 1947. The old Allis Head rig bandsaw was then decommissioned at the end of 1978, replaced by the bandsaw which is now displayed at the Woodworks Museum, Gympie. While this bandsaw continued to cut the large hardwood trees, the focus on plantation based softwood pine for structural, industrial and engineered timber products was going from strength to strength. From 1979, Warren Hyne led the transformation of Hyne Timber from small scale sawmills to high volume softwood processing including the development of the revolutionary Tuan Mill. Eventually, Hyne Timber sold its hardwood mills (including this bandsaw), transitioning exclusively to plantation softwood pine logs
AUSTRALASIAN TIMBER MAGAZINE
in September 2007, making the Tuan Mill the largest softwood pine mill in Queensland. Hyne Timber continues to stand proud as a leading, family owned Australian timber producer and significant employer throughout various regions.
n Chris Hyne (left), Director Hyne Timber, and Stan Petersen the Saw Doctor with the bandsaw in the background. Photo: Hyne Timber
n Chris Hyne, Director Hyne Timber, and Stan Petersen the Saw Doctor reading the new bandsaw museum sign. Photo: Hyne Timber
Frame 2015 for designers and builders THE TREND to higher density housing developments in our cities is an unprecedented opportunity to achieve sales of timber, building materials and prefabricated components into this emerging growth market, without affecting your existing market sales. The number of detached dwellings built have remained static for some years, but medium to high density multiresidential is on the rise and will eventually exceed detached dwelling numbers. The supply opportunity is from increasing interest by commercial builders in using timber frame construction systems for multi-residential buildings of 3 to 5 storeys and higher, now a lower cost option compared to traditional steel and concrete. In addition, changes to building codes and regulations will relax the restrictions currently in place to make the change to timber easier for designers and builders. With this market change gaining momentum, designers and builders are expressing a high level of interest in the Frame Australia 2015 conference and exhibition ‘Building with engineered wood construction systems’ being held on June 1.
Conference Director Kevin Ezard stated: “This event will be a unique occasion to engage with delegates from the residential and commercial building design and construction sector, with conference sessions primarily on timber and wood construction. “An important factor will be strong support by industry and member associations, with MBA and HIA promoting to over 20,000 members, and to building professionals through their member organisations. “Sponsors exhibition displays are a principal element that provides promotion of your brands and product benefits to new customers with face to face access. “Another valuable benefit is market exposure from the Frame Australia website, which is the central point for all communications from publicity in the Building Design and Construction sector, and for on-line delegate registrations,” said Kevin. Sponsorship acceptances are due by November 28, 2014, to ensure sponsors obtain complete participation in the promotion program leading up the conference. For more information visit the website www. frameaustralia.com
World experts at engineered wood seminar INNOVATION IN new products and emerging new markets will be presented by international and local experts at the seminar “Engineered Wood Products - from here to the future” to be held on November 13 and 14. The day and a half seminar is intended for senior management and industry leaders in forestry, timber processing, wood products supply and distribution, and others interested to hear about future trends that will have impact on the forest and wood products sector. Global changes are now under way in engineered wood products (EWP) resulting from new technologies and products, new market applications, and shifts in global supply dynamics that will have a major influence on the Australasian market. Leading world experts from North America presenting at the seminar will be Art Schmon of Forest Economic Advisors, Professor Chip Frazier of Virginia Tech, and Professor Fred Kamke of Oregon State University.
Their topics will cover the current supply and demand in North America and the potential future supply situation, industry and university cooperative research programs, and modified wood products for new market opportunities. Key local speakers include Andrew Nieland, head of Timber Solutions at Lend Lease, whose team spearheaded the ‘Forte’ development in Melbourne Docklands, Australia’s first 10 storey timber apartment building and the tallest in the world. Other experts are Owen Griffiths of TimberLab Solutions, provider of innovative, and customised engineered timber solutions, and George Goroyias of Poyry Management, consultants to the entire wood products value chain. Presenters also include Peter Torreele of META, a network to help transform Australia’s manufacturing sector into a globally integrated and competitive industry, and Tai Hollingsbee of GHD, an international technical services
n Australand Property Group apartments site in Parkville, which is 5 storeys built completely in timber prefabricated wall frames and cassette floor systems, which is a great example of the new thinking by designers and builders using timber and engineered wood in commercial construction.
consultancy for clean and renewable energy projects, sustainable built environments, and low carbon buildings. The speakers program is guaranteed to be thought-provoking and to deliver information that can help business by awareness of growth opportunities, both now and in the future. Hosted by the Engineered Wood Products Association of Australasia (EWPAA) and Forest and Wood Products Australia Limited (FWPA), the seminar will be held
n Fred Kamke.
in conjunction with the FWPA Annual General Meeting at Surfers Paradise Marriott Resort. During the program, key political leaders Senator Richard Colbeck, Parliamentary Secretary to the Minister for Agriculture, and the Deputy Prime Minister, Warren Truss will address attendees. For more information on this important seminar and other activities in the event program, visit the website www.fwpa.com. au/news-and-events/upcoming-events
n Art Schmon.
n Chip Frazier.
HOUSING - CONSTRUCTION
AUSTRALASIAN TIMBER MAGAZINE
9 – November 2014
Home building to reach record high as more Australians embrace apartments A
RECORD-breaking recovery in home building is under way that will run for another two years and continue tilting the Australian lifestyle toward apartment living, according to leading industry analyst and economic forecaster, BIS Shrapnel. According to its Building in Australia 2014-2029 report, dwelling building activity will reach a new high in terms of homes constructed, and more of those new homes will continue to be in apartment towers. “New housing starts are forecast to reach 190,000 nationwide in 2014/15, which will surpass the previous peak of around 187,000 set back in the 1994 boom,” said Dr Kim Hawtrey, Associate Director with BIS Shrapnel. “In the next two years we’ll also see the recent emphasis on high-rise units continue. Currently two high-rise apartments are being built for every five detached houses, which is double the historical rate of one apartment for every five houses built.”
In the company’s latest forecasts, pentup demand from recent strong population growth - coupled with the lowest interest rates in 50 years - is generating a record-breaking home building outlook for 2014/15 that will maintain its momentum into 2015/16. Building activity, especially home construction, is responding to low mortgage rates which are unlocking pent up demand. Pent up demand derives from population growth, a key driver of residential construction. Australia’s population is growing at a rapid 1.7% per annum, which is among the fastest in the developed world. This is translating into strong demand for new dwellings. “Home building has been punching below its weight for about a decade, and has not kept pace with population growth for some time now,” said Hawtrey. Based on BIS Shrapnel assumptions about household formation per thousand head of population, the Building in Australia report estimates the national dwelling stock
deficiency is currently around 100,000 dwellings. “We estimate that it will take the next five years to eliminate the unmet demand for housing. We therefore do not see this housing shortfall closing until 2018,” said Hawtrey. This remains true despite expected national population growth slowing from its recent highs to just 1.18% by 2017/18 as net overseas migration falls back from its peak. “Investors and upgraders/downsizers are driving demand in this cycle,” said Hawtrey. “ First home buyers are still largely on the sidelines. “Importantly, the residential recovery is now spreading, moving beyond high-rise apartments to include detached houses, and beyond the major cities to incorporate regional areas. Nationally, the forecaster sees private sector detached house starts growing by 8% in 2014/15. “However, the improved conditions are yet to either stimulate significant gains in alterations and additions activity, or gather up first home buyers, and these segments of the market remain a concern,” said Hawtrey. The Building in Australia report provides a respected and independent mediumterm assessment of the Australian building industry outlook. It contains demographic trends and detailed forecasts on the residential (housing, other dwellings), non-residential (commercial, industrial, social and institutional) sectors, and the alterations and additions market, by State. The report covers key drivers for housing demand, population trends, the outlook for building material costs, and the nonresidential building cycle. Residential building outlook According to the Building in Australia 2014-2029 report, the outlook for residential building is very positive over the next few years. Housing starts are estimated to have
already grown by 14% in 2013/14 to a healthy annual total of 184,350 commencements. This compares with a recent trough of only 145,300 starts just two years ago, in 2011/12. BIS Shrapnel sees commencements picking up further in 2014/15 (+3 %) to around 190,000 starts by June 2015. While this will mark the peak of the cycle in growth terms, the level of housing construction will remain high in 2015/16 with 186,850 commencements predicted, and 2016/17 will see activity still buoyant with an expected 168,600 dwelling commencements. Momentum is strong in New South Wales in particular (+9 % growth in housing starts forecast for 2014/15), with Queensland (+3 %) also in a growth upswing. The improvement in these eastern States reflects strengthening local economies and underlying pressure from mounting stock deficiencies. Recovery is being aided by strong investor demand especially in Sydney. Victoria (+3 % expected in 2014/15) has been over-building relative to demand and is expected to see a local slowdown due to oversupply, but not for another 12 months or so. Strong investor demand for Melbourne property – including from overseas investors – is helping to prolong the market there. However, Victoria will begin a sharp contraction by 2015/16, an inevitable correction following several record years of phenomenal home building in the State. Until recently, Western Australia has been riding on momentum from the mining boom, but that is now turning and the State is forecast to record a fall of 5% in housing starts in 2014/15. Following an impressive overall national performance in home building during 2014/15 and 2015/16, natural cyclical factors will then lead to a correction in the cycle during 2016/17 (-10 %) and in 2017/18 (-12 %). Growth in housing starts will resume in 2018/19.
New research backs negative gearing NEW RESEARCH by the Housing Industry Association (HIA) confirms that restricting access to negative gearing for residential property would reduce investment in housing, erode housing affordability and put upward pressure on rents. It also concluded that abolishing stamp duty on conveyances should be the top priority for housing tax reform, making housing more affordable for both renters and owner-occupiers. “Discounting residential negative gearing in isolation is a retrograde step for tax reform, in terms of both efficiency and equity,” said HIA Managing Director Shane Goodwin. “New housing is one of the most highly taxed sectors in the economy, and the removal of negative gearing would only make that situation worse and discourage investment. This would in turn reduce housing supply and increase
the cost of renting. “Negative gearing promotes private investment in the rental market, thus stimulating economic activity and taking the pressure off social housing and the public purse. “With an ageing workforce and future pressure on services, policy settings such as negative gearing that promote wealth creation and self-sufficiency in retirement should be promoted. “It is important to remember that negative gearing is not the domain of so-called ‘wealthy investors’. Figures from the ATO demonstrate that 74% of taxpayers receiving rental income have a taxable income of less than $80,000,” said Shane. The research paper titled ‘Economic Impacts of Negative Gearing of Residential Property’ was commissioned by HIA and conducted by Independent Economics.
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TIMBER AWARDS
November 2014 – 10
AUSTRALASIAN TIMBER MAGAZINE
Timber for healing’: health building wins design award M
ORE THAN 200 architects, building designers and industry leaders gathered at the National Maritime Museum at Darling Harbour in Sydney on September 18 for the 15th annual Australian Timber Design Awards. Special guest Senator Richard Colbeck, federal Secretary for Agriculture, took part in the presentations with entrants and award winners announced by MC Rebecca Gilling, human resources adviser with Planet Ark. The overall Australian Timber Design Award, sponsored by WoodSolutions, was presented to Bates Smart (in collaboration with the Irwin Alsop Group) for Melbourne’s Dandenong Mental Health Facility. The judges said the entry recognised the benefits of timber for functionality as well the importance of sensory experience. The building and surrounds were an elegant complement to their environment. The judges commented on the understanding by the design team that wood use benefits occupants’ health – “timber for healing”. A domestic-scale interior and the extensive use of ironbark (Eucalyptus crebra) gave the project warmth, drama and texture, the judges said. The popular People’s Choice Award was won by k20 Architecture for the Hindmarsh Corporate Centre in Nhill, a town in the Wimmera in western Victoria. The design was inspired by the local rural vernacular of agricultural sheds and storage silos using Victorian ash glulam timber for primary structure to minimise the use of steelwork across the project.
The coveted Sanderson Memorial Trophy for Engineered Wood Excellence, sponsored by the Engineered Wood Products Association of Australasia, was presented to Grimshaw Architects (in collaboration with Billard Leece Partnership) for the Peter Doherty Institute for Infection and Immunity next to the Royal Melbourne Hospital. Opened this year, the institute houses a coalition of infection and immunology experts to lead the fight against infectious human diseases. Where possible, timber was adopted as an alternative to materials with high embodied energy. Laser-cut plywood panels and timber battens were used as feature ceilings in prominent areas throughout the building, while meranti veneers were used in the auditorium wall and ceiling linings, foyer seating, fixed office joinery, furniture and feature wall linings. Top prize .. Eileen Newbury, marketing and communications manager, Forest and Wood Products Australia (right) presents the WoodSolutions-sponsored overall Australian Timber Design Award to Kevin Masci, representing Bates Smart Architects, for the Dandenong Mental Health Facility. Looking on as Eileen hands over the plaque, a slice taken from a blackbutt burl, are federal Parliamentary Secretary for Agriculture Senator Richard Colbeck and Australian actor and Planet Ark human resources adviser Rebecca Gilling who was MC for the awards night at the Maritime Museum, Darling Harbour.
Overall excellence in the use of engineered wood .. Federal Parliamentary Secretary for Agriculture Senator Richard Colbeck (right) congratulates Tara Veldman of Billard
Leece Architects, Sydney, and Gilbert Yeong, Grimshaw Architects, Melbourne, joint winners of the EWPAA Geoffery Sanderson Memorial Trophy.
n Dandenong Mental Health Facility Photography by Peter Bennetts and John Gollings
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THE DESIGN brief for the refurbishment of The Oaks Hotel in Neutral Bay involved extensive used of rustic timber for the ceilings which needed customising to meet the acoustic and structural engineers’ requirement. SUPAWOOD helped achieve this by supplying DRIFTWOOD rustic timber slats fabricated precisely to suit. One of Sydney’s most iconic hotels and built in 1884, The Oaks has undergone many facelifts but never to this extent. The $4millon revamp was designed by Paul Kelly Design and undertaken by The Chillie Group in two stages. The intent, to create a unique identity with strong history links while reinvigorating The Oaks into the present-day. The new ceilings required fixing to the existing old structure so the weight of timber used potentially posed a problem. SUPAWOOD solved this by supplying loose DRIFWOOD slats customised in width and thickness to suit the structural engineers’ weight constraints. These also met requirements for acoustics. Stage one transformed the original bars into an old butcher shop themed Bar and Grill with an Art Deco twist. DRIFTWOOD Blackwash has been used on cleverly illuminated sections of the ceiling which define three seating aisles. The finish completes the cosy mood of the rich décor as a whole. Stage 2 transformed another area into a space inspired by a classic Victorian conservatory that that opens into the famous oak tree dominated courtyard. The new Garden Pavilion features a diagonally DRIFTWOOD White slatted ceiling which lifts the light filled interior. While resolving other specific problems encountered, the rustic DRIFTWOOD ceilings blend perfectly to successfully complete an atmosphere of old-world charm, the décor as a whole uplifting the building to befit current trends. Award: Finalist in the National Interior
Design Awards – Hospitality 2014. Designer: Paul Kelly Design Builder: The Chillie Group
AUSTRALASIAN TIMBER MAGAZINE
CROSS LAMINATED TIMBER
CLT high-rise for Adelaide THE TRENDY Adelaide city fringe suburb of Kent Town will be home to the first cross laminated timber constructed residential building in South Australia - and only the second in Australia. The Development Assessment Commission has granted development approval for Verde – a $27.3 million premium five-storey, predominately residential development, with 54 generously proportioned apartments, seven small home offices (soho), ground floor retail and commercial offices. The approval follows the development’s successful completion through the Department of Planning, Transport and Infrastructure prelodgement and State Government Architect’s Design Review processes. The first two floors will be of standard concrete construction with the top three storeys constructed in CLT. Construction is scheduled to start late this year with a completion date between February-March in 2016. Verde is a joint venture between South Australian family owned developer FA Mamac and building company Morgan and Hansen. The project has been designed by leading South Australian architects Proske using the latest evolution in sustainable building materials, cross laminated timber, for the construction. The cross laminated solid timber is being used for all the load bearing walls, floors and ceilings of the residential apartments. Manufactured using European technology, cross laminated timber is lightweight (25% of the weight of concrete) and exceptionally strong, shortens construction time and enables quieter construction to lower the impact on local communities. As well as being extremely strong and solid, because timber is natural it helps to create a gentler and cosier living environment. It
also has significant environmental benefits and significantly lowers heating and cooling costs. Cross laminated timber is made from layers of wood that are arranged crosswise on top of each other and glued to each other with a massive press to form large-sized solid wood elements. The crosswise arrangement of the layers reduces swelling and shrinkage of the wood and considerably increases both the static load-carrying capacity and dimensional stability. Managing Director of builders Morgan and Hansen, Andrew Morgan said it was a pity that CLT wasn’t yet made in Australia “but I think it is simply a matter of time. Perhaps when there are more buildings constructed in Australia we will reach that scale where it becomes worthwhile for a manufacturer to invest in a CLT plant”. Andrew and his business partner Chris Hansen were “sold” on the CLT idea when they had an extremely close look at the Lend Lease Forte building in Melbourne’s Docklands, plus further extensive investigation of the product overseas. “To me CLT is just a very, very simple and logical building system,” said Andrew and while he believes it may not be suited to all building projects it is ideal for the Adelaide project. “We know a lot about CLT even though we haven’t done anything with it yet,” he said when explaining that a thorough investigation of the product had been carried out. Ross Hampton, chief executive officer of the Australian Forest Products Association, said cross laminated timber was proving to be stronger and lighter than steel in addition to having the environmental benefits of using a natural, renewable product that stores atmospheric carbon for the life of the building. “Although wood has been used in buildings for centuries, engineered timber products
such as CLT, glue laminated beams (glulam) and laminated veneer lumber (LVL) have brought engineers and architects a natural and sustainable alternative to traditional building materials such as concrete and steel. “CLT is not yet made in Australia but as demand for this product increases there will be more opportunities for manufacturers to meet the demand. “Reports and studies such as the recent McKinsey/BCA report have shown that Australia is endowed with sun, water and land, just perfect for growing timber for use in building. “All that is needed are the right investment incentives and we are on the cusp of a brand new exciting industry,” Ross said. “Verde will provide residents with an enviable lifestyle with the development incorporating spacious apartments, contemporary interiors with the latest fixtures and fittings and balconies with sweeping views towards the eastern parklands,” said Andrew. “Creating lush, green environments within the development has been a key priority so apartments feature either an internal courtyard or light-court and generous balconies to provide the residents with a
11 – November 2014
quiet private space for relaxation. “We’ve also incorporated a large, central private internal Piazza into the building design as a communal space for residents to enjoy. It will feature mature trees, lush landscaping and outdoor furniture. “Kent Town has become a tightly held, popular suburb where opportunities for new residents to move into the area have been limited. “Verde will create a once in a decade opportunity for buyers to buy into this vibrant, character laden suburb. “Most importantly, Verde has been designed to be sensibly priced so will be attractive to new home buyers looking to live close to the CBD.” Verde is located within a five minute walk of the Rundle Street shopping strip and provides easy access to the city through the eastern parklands, and a 15 minute walk to the redeveloped Riverbank precinct and Adelaide Oval. Apartments will be priced from $330,000 for a one bedroom and up to $525,000 for the largest two bedroom residence, and the SOHO (small office home office) from $420,000. Buyers can register their interest at www. verdeliving.com.au
CROSS LAMINATED TIMBER
November 2014 – 12
AUSTRALASIAN TIMBER MAGAZINE
New timber technology a game-changer for Singapore
A
USTRALIAN DEVELOPER Lend Lease is introducing Cross Laminated Timber technology to Singapore, which promises productivity and cost savings in addition to environmental benefits. Australia’s first public building made out of Cross Laminated Timber (CLT), the Library at the Dock in Melbourne, opened earlier in May. Lend Lease is advocating the use of CLT in Singapore. The idea of using wood for building walls in Singapore must have sounded outlandish to the authorities back in 2012. After all, wood is flammable and the country requires that the structural elements of buildings be fire-proof. But this year, the Singapore Civil Defence Force (SCDF) officially revised its fire code to allow the use of Cross Laminated Timber (CLT) for structural components in buildings after a thorough safety assessment. This change came about thanks to the efforts of international property and infrastructure firm Lend Lease, which has been leading efforts to promote the use of CLT technology in Singapore as a cost-saving, environmentally-sustainable building system. Lend Lease noted that the use of CLT technology will reduce reliance on foreign manpower and imports of sand and aggregate, which is good news for Singapore’s construction industry. Over the years, the Government has been cutting back on foreign manpower quotas to soothe the growing friction between locals and foreigners in the densely-populated city. The price of sand has also jumped as several South-East Asia countries have banned the export of sand and granite to Singapore, citing environmental degradation caused by sand extraction. Lend Lease in Australia had done three years of due diligence on CLT technology before embarking on its Forté project, comprising 23 CLT apartments in Melbourne, which
was completed in 2013. Forté was completed 30% faster than if reinforced concrete had been used. Mann Young, Head of CLT Business (Asia) for Lend Lease, shared with Eco-Business in a recent interview that the SCDF and the Building and Construction Authority (BCA) granted their in-principle acceptance of CLT technology mid-last year after 18 months of discussions, presentations and overseas study trips. But even then, they stipulated that CLT buildings could not exceed four-storeys. Eventually, the height limit for CLT buildings was increased last November to a maximum of 24 metres, or six- or seven-storeys, after authorities conducted a
If CLT technology is thought of as just a material replacement, it will fail... it is changing the way we design and construct buildings from first principle. further European study tour of CLT buildings. Earlier this month, Singapore’s Economic Development Board (EDB) launched a new platform called the ‘Pre-Project Innovation Consortium’ to promote integrative design and enable building industry players to collaborate on sustainable buildings early in the design stage. Under this initiative, Lend Lease will be leading a consortium and plans are under way to test-bed the use of CLT in Singapore. CLT is produced by pressure-gluing three, five, seven or 11
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layers of timber such that the wood grain of each layer is at 90 degrees to that of the next layer’s, distributing weight in both directions. The resulting CLT panel has a load-bearing capacity similar to that of concrete, but is 80% lighter, so the foundation for a building constructed with CLT will not have to bear as much weight. The foundation for a CLT building in Singapore will remain constructed from concrete to prevent termite infestation. The stacked layers of CLT also result in a predictable and slower rate of burning, “like charcoal rather than a box of matches, charring at 0.7 millimetres per minute”, noted Young. One test that demonstrated CLT’s “better-than-concrete integrity” and fire-resistance involves having a 1000°C fire burning away on one side of a five-layer thick CLT panel. When the fire had burnt the panel down to three layers, the temperature on the opposite side of the panel was measured at 24 to 25 degrees Celsius – a testament to its excellent thermal performance, which will help reduce the energy needed for cooling buildings in tropical Singapore. Timber is renewable and requires the lowest energy and water consumption of any building material, which in turn, reduces the amount of deliveries needed to the worksite. The sustainability benefits of CLT include being recyclable after the building is demolished. Young said that a study by RMIT University in Australia conducted for its Forté project found that even though the CLT is imported, the Forté building has lower environmental impact across all the assessed categories, including lower impact for materials and transport when compared to traditional concrete structure. Young cautioned that “if CLT technology is thought of as just a material replacement, it will fail…. it is changing the way we design and construct buildings from first principle.” Simply put, building a room traditionally required four concrete columns, four beams and non-structural walls. With CLT, only four load-bearing, structural walls are needed. This eliminates the need for formwork, scaffolding and the waiting time required for concrete to cure. Sub-contractors can begin to install their respective ceiling services, wall and floor finishes, improving overall efficiency and productivity. Using CLT technology thus requires spending more time upfront on the design and drawing phases of building development because the CLT panels are cut to specification in factories, down to the openings and slots for water pipes and wiring, before being assembled on-site “just like Lego pieces”. This allows faster construction with fewer on-site staff, which indirectly reduces the likelihood of workplace accidents and directly reduces the waste, noise and dust pollution on the surrounding community. Young observed that the entire design and building process in Singapore tends to happen in silos, adding that there are industry challenges in getting “ upfront collaboration and integration” between architects, engineers, consultants, builders and facilities managers. Yet, such integration is needed to minimise waste and optimise design when using CLT. He said: “The challenge for us now is to get architects and consultants locally to understand and be comfortable enough to design buildings using this technology that is new to them.” When asked why he advocates the use of CLT since Lend Lease is not a supplier of the material, Young explained: “From an investor point of view, using CLT makes sense for Lend Lease. Land cost in Singapore is about two-thirds of development cost so if we can build safer and smarter with less manual labour on site, we can achieve an improved internal rate of return. Timber finishes also look great, produce a sense of warmth and has numerous sustainability benefits. “I see the CLT system as a game changer for Singapore. The timing is perfect for here, now,” he added. Source: Eco-Business
Is your banker missing the target? Some bankers just don’t hit the mark when it comes to tailoring a finance package that suits your specific needs. Looking for a long term finance option that is easy, offers a true, sustainable, business partnership which works for you and allows you to focus on what you do best? With the significant buying power which comes from funding over $350mil pa in Equipment and Vehicle finance through a dozen competitive underwriting banks and finance companies, Finlease has the experience, knowledge and skills to be an ideal finance partner to business owners. Finlease... understanding, speed, personal service, small business expertise... in so many ways...
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finlease.com.au
November 2014 – 14
FINANCE
By Mark O’Donoghue
well and into “bank speak”. If it is not, either a finance approval won’t happen or if it does it will be “roped and chained” far more than it needs to be and possibly to an extent that is not ideal for the client. Let’s not get confused about any complexity here, finance comes down to 3 fundamental questions:1) Can you afford the payments? 2) If it all goes pear shaped can you sell the gear and pay out the debt? 3) Have you always honoured your commitments (historic finance report card)? Whether the asset cost is $20,000, $200,000 or $2mil, these 3 fundamentals apply. Yes, it is true that the larger the asset cost, the more detail is needed around these 3 questions. If we are seeking the finance approval for a $1mil transaction we typically address over 20 individual areas however these are all in reality simply subsets of these 3 fundamental questions. As an example, under “can they afford to pay” or to put it another way are there areas that may indicate a “significant risk” to their ability to pay, the following will typically be addressed:Do their present trading results indicate they can pay even if the machine being financed does not contribute to any additional income/profit? If no, what tangible savings or additional incomes can be “reasonably” expected? Are there existing debts that are currently running off which will free up cash to service the new debt? Does the client have a good spread of clients and or industries that they supply to so as not to be too exposed to losing a single client or industry sector and if exposed, is that an acceptable risk (ie major or Government Contract). How much do they owe (creditors) versus how much are they owed (debtors), Owing as much as you are owed is probably not a good thing. Are the majority of both ledgers trading in reasonable 30 – 60 day terms or is there something there that looks like an issue? How are their cash levels or access to cash levels (cash at hand, overdrafts etc ). Is their tax up to date? What is their management structure? If the MD falls off their twig, can the business carry on. In essence can the business continue if the MD is out of play? On the asset exposure side, if a $1mil machine is seen to have a $700,000 auction value, the perceived shortfall exposure is $300,000 on day 1. Lenders can be comfortable with this exposure if they know the client has other equipment which are either wholly owned or have “equity” in them meaning the resale value is greater than their debt. Similarly, great comfort is obtained where the business owner has good equity in property (either personal or through the business). Let me make it clear here, they are not after a mortgage, simply the “comfort” of knowing the borrower has
AUSTRALASIAN TIMBER MAGAZINE
Even though your bank may say it is – finance ain’t rocket science!
n Mark O’Donoghue is the founder and CEO of Finlease
A
FTER 25 years of funding plant and equipment of every description for company owners, one thing is clear – the client has already approved the machine purchase in their own mind, they know why they are buying it, what it will earn or save them and the risks involved. Whether the machine is being purchased to improve the processes, required for additional contracts, or to reduce existing outsourced subcontractor costs, the business owner has already gone through a mental “approval” process or justification behind buying the gear. Firstly, all too often this very concept and what it really means is lost on the banks or at least not heard as clearly as it needs to be. Secondly, it is worthwhile addressing the relative “skin in the game” if it all goes wrong. For the bank, any default can create a potential loss and the approving officer may be “hind sighted” on the transaction to see if they had made an error in approving the loan on the information initially presented. For the client, it gets very personal, by that I mean they typically have their personal guarantee on the line and with that an obligation to make good any debt shortfall even if that means their need to sell other assets to clear the debt or face the prospect of bankruptcy. So, it is fairly easy to see who has the most “skin in the game”. Good finance is not about jumping through hoops for the bank, it is absolutely about assisting the bank in understanding why the decision has been made to buy the machine how it will be paid for and the defence trenches in place in the event it all goes “pear shaped”. This needs to be communicated
Trial operation brought widespread acceptance IT HAS now been three years since Daiken NZ trialed and then implemented the Andritz Iggesund Tools TurnKnife® system on its 96inch Fulghum chipper. “ When first approached by Andritz Iggesund Tools about doing a trial the feedback from the logyard staff was that they won’t work, they aren’t robust enough, but what we have now works great,” said Mike Hawes, Product Support Leader Daiken NZ. “These views were from guys with over 30 years experience in our logyard. “After our three month trial I couldn’t believe the turnaround in the guys. They found the knives performed exceptionally well. Our knife life pretty much doubled, knife changes could now be done by one person. “If a knife was damaged by a stone etc. they only had to change out the effected knife, where in the past it would have meant a full knife change,” Mike explained. “The quality of our chip was maintained and was more consistent. From a health and safety aspect the guys were now handling knives that weighed about 400grams each; our old knives weighed in excess of 3.5 kgs. “The decision for Daiken NZ to change to the Andritz Iggesund Tools TurnKnife® System has proved to be a real winner,” Mike said.
resources which can assist in paying any shortfall if called upon to do so. These questions simply address “if it all goes pear shaped can you sell the gear and pay out the debt?” There is nothing complex about the areas shown above, they are in so many ways simply common sense and definitely not “Rocket Science”. Any savvy company owner has already addressed such matters in their own mind as a function of contemplating the purchase of the equipment. After all they are the ones who are taking the real risk and will suffer the consequences of an incorrect decision.
Innovation the key to improved business performance MORE THAN a third of Australian businesses reported an increase in income from the sale of goods or services between 201112 and 2012-13, according to figures released 19 September by the Australian Bureau of Statistics (ABS). “Businesses in the financial and insurance services industry were most likely to report an increase in income, while in contrast, more than half of all businesses in manufacturing had a decrease,” said Sue-Ellen Luke from the ABS. “However, against each of the measures, which included, among others, profitability, productivity and the total number of jobs or positions, businesses that had innovative activity during the year were more likely to report increases against the measures than non innovation-active businesses.” More than a quarter of all businesses used trades skills in undertaking core business during 2012-13 and 7% had a shortage or deficiency in these skills during the same period. Consistent with previous
results, during the year ended 30 June 2013, two thirds of businesses in the construction industry used trades skills, with 16% of businesses in this industry reporting a shortage or deficiency of these skills. Results also provide an insight into how businesses are using information technology. During 2012-13, almost half of all businesses had a web presence and more than a quarter of businesses had a social media presence. Businesses with innovative activity were more than twice as likely to be using these, with more than two thirds having a web presence and more than 40% having a social media presence. Included in the release for the first time is information on Government procurement. “Overall 8% of all businesses had a contract or agreement to supply goods or services to Government during 201213. With innovation-active businesses almost twice as likely as non innovationactive businesses to have these arrangements in place,” she said.
INSURANCE
AUSTRALASIAN TIMBER MAGAZINE
15 – November 2014
Insurance: Necessary evil or business tool? N
O MATTER the size your business or the risk factors associated with your daily operations it is good management to understand the things that would seriously impact your revenue stream. In addition to this, having a plan to make sure contingencies are considered and documented could just save you from receivership. Organising your general insurance around your critical and important risk issues will result in good outcomes should a large claim occur. Focusing on premium price and minimum coverage rather than what is needed to protect you and your business will most likely result in a bad experience and an attitude that “insurance never covers anything”.
In a similar vein handing over your insurance invoices and cover summaries to a new broker so they can discount the total payable by 10% / 15% is no way to treat your own risk management process. What you are actually doing is relying on the Professional Indemnity insurance of your insurance “professional” rather than arranging insurance around your risk profile. Think about the key risks associated with your business, jot them down and consider the impact and what would be required to remedy the loss. Here are some key points to help you with this process: IT back-up overnight - off-site storage of information is essential. Loss of client data and financial management information will seriously impact your recovery/survival.
Action plan (Disaster Recovery Plan or Business Continuity Plan) for urgent “things to be done in the event of a disaster”. As an example, Contacting clients, finding alternative premises, lease requirements and Landlords response, replacement of critical items of plant or stock, alternative processes such as availability of kiln drying elsewhere. Sickness or perhaps an accident prevents you from working. Hire in a temporary manager, close business, sell business. What are your options? Bad press following an incident (serious injury to staff or contractor, outbreak of disease etc) TV cameras and crew outside your business wanting to know how you let this happen?? Local council suspect waste and
contaminated fluids are entering nearby creek and polluting the water. You are threatened with a statutory penalty and fine and issued with a Show Cause notice. What happens next? There are many threats that can seriously impact your business, damage reputation, distract you from running your business and earning a living. Premier Insurance Brokers can assist in helping you identify these risks and as stated above help you implement a tailored insurance plan that will respond to your critical risks and keep you in business.
Premier Insurance Brokers AFSL 238123 ABN 95 010 576 324 Scott Hastings, Managing Director 0406 382 582
Hyne Timber training recognised again!
JUST TWO weeks after being a finalist in the NSW training awards, Hyne Timber was officially recognised for its training in the ‘Employer of the Year’ category in the Queensland Government training awards. Hyne Timber CEO Jon Kleinschmidt attended the Brisbane ceremony and said he was pleased Hyne Timber had been recognised as a finalist twice in only two weeks across two different States. “Most Hyne employees spend a significant amount of their lives contributing to the growing success of Hyne Timber. “We take pride in our high retention rates through continuously developing people to ensure a successful, long and personally satisfying career,” he said. “Having the value we place on our employees recognised across both NSW and Queensland reaffirms that Hyne
Timber commits to and delivers the highest standard in its training,” said Jon. Employing more than 500 people, the Hyne Timber footprint reaches from Cairns to Melbourne. Six of the 11 Hyne Timber sites are situated in Queensland including the headquarters in Maryborough. James Hyne, Operations Manager at the Tuan Mill near Maryborough, said training in the timber industry had come a long way with safety a priority focus. “Almost every Hyne Timber mill employee here at Tuan has, or is currently undertaking a Certificate III or IV in Sawmilling and Processing. “Safety is a priority and a reccurring theme throughout this training. “I’ve got no doubt, Hyne employees go home with the action: ‘Stop:Think:Safe’ on their mind,” James said.
Environmental product declarations for Australian timber products to contribute to Green Star Credits THE TIMBER Development Association (TDA) and sustainability expert PE International have started a project to develop Environmental Product Declarations (EPDs) for Australian timber products. “These EPDs are an exciting step forward for the our industry as they will help demonstrate to users the strong environmental credentials of timber and allow it to be compared like-for-like with other construction products,” said Stephen Mitchell, TDA’s Sustainability Program Manager. “EPDs will also benefit timber consumers as it will be easier to get credit for using timber in projects seeking a rating under systems such as Green Star.” “The construction industry around the world relies on transparent, verified data to influence sustainable purchasing decisions,” said Barbara Nebel, Managing Director of PE International for Australasia. “We are
excited to support the Australian timber industry with the development of EPDs to disclose technical environmental information rather than greenwash.” The EPDs will be useful for developers and designers applying for credits in the Product Transparency and Sustainability section in the soon to be released Green Star Design & As Built rating tool of the Green Building Council of Australia (GBCA). The EPDs will also be useful for claiming credits in the Materials Life Cycle Impacts section as well as via Innovation Challenges in current tools. The Australian timber industry is supporting development of the EPDs through Forest and Wood Products Australia (FWPA). The EPDs themselves will draw on FWPA’s earlier sponsored study, Life Cycle Inventory of Australian Forestry and Wood Products. “This project demonstrates the ongoing commitment of the Australian timber
industry to sustainability,” said Ric Sinclair, Managing Director of FWPA, “and I am delighted to see that our past work will now be a source of commercial benefit for our members.” Declarations will be produced for sawn hardwood and softwood, particleboard, MDF, plywood and veneered boards. Each declaration will show average environmental performance across Australia – rather than the performance of a specific process – an approach designed to benefit small and large producers alike.
An EPD is a standardised and verified way of quantifying the environmental impacts of a product based on a consistent set of rules that have been developed through a stakeholder consultation process. These impacts are based on the product’s consumption of raw materials and energy, waste generation, and emissions to air, soil and water over its full life cycle. An EPD includes a carbon footprint alongside other environmental indicators.
n Tuan Mill team (l-r) Chris Bernard, Dale Carter, Deborah Coote, James Hyne, Emryn Bafico. Photo: Hyne Timber
IMPORTED TIMBER
November 2014 – 16
AUSTRALASIAN TIMBER MAGAZINE
American hardwood Pop Down Bar, the scene for creative collaboration A
UGUST SAW the shortlist announcement for the ever-popular Eat Drink Design Awards take place below Space Furniture in Melbourne. Architecture studio DesignOffice, conceived an immersive installation created exclusively from American ash for the occasion. In the spirit of the awards, the bespoke Pop Down Bar was a collaborative effort cooked up by the American Hardwood Export Council, Design Office, Britton Timbers, Tanqueray, Space Furniture and Architecture Media. The aim, which was fully realised, was to design a simple, yet rigorous and tactile structure using an American hardwood species to create a sense of intimacy. The bar design was counterbalanced by a touch of unstructured lustre and glamour. Guests were invited to enter through a partially closed door and layered laneway created from
thermally modified ash leading to the natural ash interior. The bar itself was evocative of a luxuriously lined and lit jewellery box with muted lighting, which highlighted the pale, creamy tone of the ash against a subtle golden fabric backdrop. The shortlist announcement party was hosted by program ambassador Jill Dupliex on 22 August. Throughout the following day the bar became the venue of choice for Melbourne’s design community to pop down to during Melbourne Indesign and enjoy refreshment courtesy of Tanqueray. Mark Simpson of DesignOffice, commenting on his choice of American ash for the project said: “We were really excited by its purity and strength of grain. It’s got a really lovely clarity and simplicity as a timber”.
Roderick Wiles, Director for the American Hardwood Export Council Oceania said of the collaboration: “Nothing gives me greater pleasure than seeing an installation that not only looks fabulous, but which can be experienced – in this case as a wonderful venue for the Eat Drink Design Awards shortlist announcement. We see American ash exports to Australia growing year-on-year and clever designers are recognising its potential for not only furniture but also interior joinery. It is a particularly durable timber, with a beautiful hue and grain. The thermally-modified ash, whilst the same species, has a completely different and richer tone, which made the Pop Down Bar entrance appear mysterious and enticing.” The final results for the Eat Drink Design Awards 2014 will be announced at a ceremony on 18 November.
American ash and walnut imports rise RECENT EXPORTS of American hardwoods to Australia rose by 27% in value and 25% in volume in the first half of 2014 YOY. While white oak continues to be the most demanded American hardwood species in Australia, accounting for 85% of imports, ash and walnut also saw an increase. Ash imports rose by over 407 cubic metres, almost 3 times more than in the same period in 2013, while walnut imports rose from 40 to 209 cubic metres. Rod Wiles, Director for the American Hardwood Export Council, Oceania said of the figures: “It’s always interesting to anticipate the trends in architecture and design through looking at the trade figures. Having just returned from Melbourne Indesign we saw some wonderful examples of Australian made furniture using white oak, ash and walnut. We also met with interior designers who were starting to discover ash and were enthusiastic about using it not only from an aesthetic perspective but also because of its strength and workability, which makes it very suitable for furniture and joinery.”
n Geelong Performing Arts Centre – American black walnut. Credit: Tony Neilson
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n Filter by DesignOffice – American ash. Credit: Haydn Cattach
2015 Australian Timber Design Workshop program announced THE UNIVERSITY of Tasmania’s School of Architecture and Design has announced the program for its 2015 Australian Timber Design Workshop (ATDW). “This workshop continues the school’s long tradition in excellence in timber design and in learning by making,” co-organiser Dr Jon Shanks said. The ATDW (in Launceston from 2-13 February) provides a hands-on learning opportunity for those interested in the digital design and fabrication process associated with mass customised manufacture of architectural timber structures. The program specifically caters to undergraduate architecture and engineering students. “Multi-day learning-by-making workshops provide participants with a unique opportunity to work with experienced timber design professionals and make full use of the fantastic workshop facilities available at the university
including our new 6-axis KUKA robot,” Dr Shanks said. “The skills participants learn will be useful in architectural, engineering and design practice and are equally relevant to students in these, or similar, disciplines.” The ATDW has a varied and exciting program. Workshop participants will design, fabricate, construct and install a live project utilising a range of solid timber and engineered wood products. Learning will be through both practical hands-on tasks and online. Participants will have access to on-line lectures and learning resources prior to the workshop. These will provide a background into the design project brief, timber material characteristics and precedents. Students from other universities are encouraged to apply through crossinstitutional enrolment. Further information about the ATDW is available at www.utas.edu.au/arch
Position paper welcomed To the Editor...
I NOTE you printed an article and comment from IHB website in the August edition of Australasian Timber News. Your headline states “Regulation welcomed by timber industry”. While I understand your need for succinctness the TDA press release, on which article was based, stated that we welcomed
the position paper released by Department of Agriculture. This is not the same as welcoming the Regulation. TDA accepts that the Regulation is in place and industry has to comply from 30 November 2014. The position paper provided some clarity to key aspects of implementation and
compliance for industry which we welcomed. Australian timber industry (domestic and importers) are doing it tough at the moment and any additional regulation only add to its burden. Stephen Mitchell Sustainability Program Manager - Timber Development Association
SAWLINES
AUSTRALASIAN TIMBER MAGAZINE
20 Years and still going strong E
STABLISHED IN March 1994, Lucas Mill Pty Ltd is a family owned and operated business located in North East Victoria. The Business employs almost 30 permanent staff members along with supporting dozens of local and interstate suppliers. The factory originated in a small farm shed on a sheep property nestled within the native stringy bark and red box trees in a locality called Wooragee. With low expectations, it came as a welcome surprise that orders for over 50 machines were placed in the first month of manufacturing – a quantity the Lucas family would have welcomed as a typical annual output. Initially the company specialised in manufacturing the model 6 sawmill with a 6¼ inch cut until early 1996 when a model 8 was launched capable of cutting 8½ inches and powered by a 20hp engine. Towards the end of 1996 Lucas Mill manufactured the first dedicated slabber, a
machine specifically designed for cutting large timber slabs. The electrically powered swing-blade sawmill was the next addition to the Lucas range in 1998 powered by a 3 phase electric motor. Its portable sawmills continued to evolve and grow over the next 16 years with six different circular swing-blade machines now available, ranging from 4 1/8 inch model up to the versatile 10 inch model. Optional attachments are available for each model including slabbing, planing, sanding and weatherboard attachments. The Lucas Portable Sawmill has become an increasingly well recognised piece of machinery among the farming and timber communities of Australia. Whether your project is cutting timber for private fencing, building or furniture making; or if you are a sub-contractor, there is no doubt that there is a strong demand for a quality Australian made product such as the Lucas Mill portable sawmill.
In the current climate of environmental awareness, the Lucas Mill portable sawmill represents an ecologically sustainable option towards the recovery of timber from forests. The Lucas Mill can be transported to almost any location and set up to select harvest timber with minimal impact to the surrounding environment. March 2014 represented Lucas Mills’ 20th anniversary in manufacturing their popular and proven portable sawmills. We are pleased to announce that the first Lucas portable swing blade sawmill ever made, a model 6-16 is still operating 20 years later (see photo). To date around 14,000 Lucas Mill portable sawmills have been sold into more than 100 different countries around the world. If you would like to learn more about the Lucas Mill phone: 03 5728 7283 Fax: 03 5728 7296 Email: info@ lucasmill.com.au Website: www.lucasmill.com.
Demand for wood construction on the humanitarian aid market
FINLAND’S MINISTER for International Development, Pekka Haavisto, is encouraging companies in the wood product sector to enter the growing international market for humanitarian aid in disaster areas, in which there is demand for wooden homes for distressed families. “There is a growing need for new products and innovations in the fields of construction, clean water and food,” says Haavisto. “We must get into the supply chains of large aid organisations which order products needed in crisis areas.” More than US$ 15 billion per year is spent on international humanitarian aid. Because it is not usually possible to buy aid supplies locally they have to be purchased on international markets. “The world has a growing number of different humanitarian crises caused by wars and natural disasters, and they all require aid,” says Pekka. “When you also take into account reconstruction, it is a question of large and growing markets. The ministry is being offered different aid products such as clean drinking water, food and housing solutions for crisis-hit regions. Wood constructors should become more actively engaged in the international market for humanitarian aid, where major players are operating. Haavisto thinks that wooden buildings are excellently suited to the second wave of aid and reconstruction after the first stage, which involves rapidly ensuring the availability of tent accommodation. It must also be borne in mind that refugee camps often grow into towns and the buildings constructed there tend to remain as permanent structures. By way of example, Haavisto mentions a Macedonian ministerial colleague who lives in a wooden Finland House, which was exported to Skopje as disaster aid in the wake of an earthquake. The aim of manufacturers of wooden homes for distressed families is to produce ecological accommodation, toilet
and auxiliary facilities that are more durable than tents to meet the needs of reconstruction. The buildings needed in disaster areas should be light, easy to move and erect and, if necessary, also easy to extend, dismantle and recycle. The transportation of building elements to intermediate storages and disaster areas should also be competitive. Haavisto encourages wood constructors to take advantage of international humanitarian aid organisations and civic organisations which have the resources and expertise for purchasing. “The tendering principles and the need for aid of major aid organisations must be investigated and bidding competitions must be entered,” he says. Wood product companies should start to co-operate with the international humanitarian cluster to promote export. Wood construction in disaster areas is justifiable as a renewable, reusable material, says Haavisto. Solutions must take into account not only the local culture, but also climate and natural conditions such as matters relating to storm-, moisture- and termite-resistance. Local culture and local conditions must therefore be recognised and the use of local materials and manpower must also be promoted. Haavisto encourages companies in the wood sector to seek technological expertise and take advantage of partners in international markets, then even small companies can get involved in business consortia to develop and offer their products. “It’s important for products to be tested and piloted in conditions for which they are intended before being marketed to aid organisations operating in disaster areas. Markets in disaster areas are challenging and risky, because disasters usually take place in developing countries where the operating conditions are unstable and dangerous,” says Haavisto.
17 – November 2014
n Lucas Mill goes anywhere!
n Yes, 16 years on and it’s still operating.
Tenon takes high value products up a notch TENON LIMITED is investing in a new optimized Edger line for its major manufacturing plant at Taupo that will include automated grading of its green mill products derived from high value, Radiata Pine prune logs. Tenon is a global producer based in New Zealand. Its focus is on a wide range of solid wood, appearancegrade products for its core markets in the US, NZ and Asia. Equipment supply The new equipment will include a radius back unscrambler, lug loader, scanner transfer, Maximizer edger infeed table, 5-shiftingsaw edger, and pendulum style outfeed. The mill has opted for a MillTrak™ lumber flow management system to control the flow at the edger infeed. MillTrak is visionbased, whereby a camera is
mounted above the transfer to maximize the efficiency of transporting material through your mill during processing. The line’s PLC control system will be based on the ControlLogix platform. BioVision Edger The mill is investing in a BioVision™ system for its new Edger line, allowing the mill to maximize its potential for grade and value recovery in its products. Edger BioVision provides value through re-manufacture or rip based on the ultimate grade of the piece. For example, a #3 appearance due to knots can be edged to #3 wane, maximizing recovery. Likewise a low grade, wide piece may be worth more if ripped into two narrower boards, one of them being high grade. Edger BioVision grading at the sawmill allows for better decisions at an early stage in the process,
before the boards are edged or trimmed. The BioVision optimization system is based on the MillExpert platform. A new scan frame will accommodate 22 BioLuma 2900LVG sensors, providing the utmost in integrated high resolution color vision, high density laser profiles configured for true differential measurements, and GrainMap™ grain angle measurements. This powerful combination allows the optimizer to detect and classify far more defects than any other green grading system on the market. Tenon joins a growing list of customers in the region that are adding USNR’s advanced, vision-based grading technology to their lines, including Pukepine Sawmills, Craigpine Timber, Hyne Timber, Chugoku Lumber, Stoneyhurst Sawmilling, and AKD Softwoods.
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ENGINEERED WOOD
November 2014 – 18
MDF for staircases A
CLAIM that Australian manufactured MDF products are unsuitable for use as components for staircase construction has been strongly refuted by the Engineered Wood Products Association of Australasia. Commenting on an article in the Master Builder Victoria magazine (April-May), EWPAA general manger Simon Dorries said: “They’re out of step on this one; MDF boards have been used in staircases for at least 30 years without any instance of structural failure.” The article made the following points: • Non-structural MDF should not be used in staircase construction (without additional reinforcement). • The only MDF product which is structurally rated is HP (high performance) MDF (as defined in AS/NZS 1859.2).
•
The EWPAA have been quoted as saying that there are no HP MDF boards made by Australian manufacturers certified to AS/NZS 1859.2. Simon said it was likely that the some readers of the report simply misinterpreted Australian standards and information provided on the use of MDF in staircases. He said the manufacturing standard for MDF boards (AS/NZS 1859.2) specified values for basic structural and material properties of MDF. This allowed many grades of MDF to be designed and be ‘fit for use’ in dry protected applications such as stair components, as had been the case for more than 30 years. “Any insinuation that EWPAA does not endorse or support the use of MDF in staircases is false and misleading and is a misuse of the facts,” Simon said. He said some manufacturers in the solid wood sector
AUSTRALASIAN TIMBER MAGAZINE
had been using the report to suggest EWPAA did not support the use of MDF boards in staircases. “This is very far from the truth,” he said. Producers of compliant MDF in Australia include Laminex, Borg Manufacturing and Alpine MDF Industries. As the recently appointed chair of Australian Standards Committee TM-011 responsible for Engineered Wood Products Standards, Simon confirmed that one of the first items of business would be an urgent update to AS/ NZS 1859.2. “This was last updated in 2004 and does not reflect advancements in manufacturing technologies and the production of more reliable MDF products to clarify their suitability for use in a range of protected load carrying applications.”
Cost competitive and environmentally friendly, too By Nicholas Sills THE ADVENT of modern engineered wood products, such as cross laminated limber, laminated veneer lumber, laminated strand lumber, parallel strand lumber and glue laminated lumber has opened a plethora of construction opportunities for those who look for more holistically efficient ways to produce beautiful structures. Presently there are roughly 29 modern multi-storey heavy timber and heavy timber hybrid buildings in existence around the world. This list includes structures that were built after 2005, are five stories or more in height, and contain substantial heavy timber components. This does not include the numerous light frame construction projects in existence. Since 2005 with the first five-storey CLT building being constructed in Trondheim, Norway, we have seen a global explosion of interest in modern multi-storey heavy timber construction. The majority of these
projects have been constructed in the last three years, with at least another 15 projects in progress for the next three years. Large name companies have shown significant attention to modern timber construction including Australia’s Lend Lease, Austria’s Rhomberg Group and the United States’ Skidmore Owings and Merrill. There are a variety of reasons for such broad international interest in these projects including remarkable environmental benefits, swift construction times and competitive cumulative costs. These projects have not been confined to one geographical location, but can be found across the globe. These heavy timber projects were generally pushed forward by the advent of cross laminated timber (CLT). CLT inspired architects and engineers to reexamine the way we use timber products and the possible structures that can be created from them.
With renewed inspiration many architects and engineers have developed solutions that do not use CLT in their heavy timber designs, but follow modified post and beam methods or state-of-the-art hybrid construction solutions. We can divide these modern multistorey marvels into a variety of categories based on construction systems. The first break down can be split into three simple sections: • all-wood construction • wood-concrete construction • wood-steel construction All wood construction, accounting for 52% of these buildings, is generally the preferred standard when regional regulations allow the construction of such buildings. Wood-concrete hybrid buildings (41%) are popular in many regions and optimize the structural and architectural design to meet local requirements. Wood-steel hybrid buildings (7%) are not extremely common, but represent one solution for a specific design problem set. The table illustrates the geographical
layout and composure of modern heavy timber buildings. It can easily be noticed that there are already specific construction trends for different markets. Within these markets we see a variety of solutions being adapted to fit different architectural problem sets. Some solutions, specifically in the United Kingdom, tend to focus on assemblies entirely composed of CLT elements. Other areas such as Switzerland or Norway take a more varied approach using refreshed post and beam construction methods to reach for the sky. Each of these solutions has a range of benefits specific to each design situation. The variety of functional methods for each architectural situation continues to increase as more architects, engineers, and developers become comfortable at working with modern timber products. There are a number of projects under development with buildings up to 14 stories in height and proposals of up to 42 stories, although the majority of projects will likely stay between six and 12 stories. The next step in the boom of modern timber is to optimize each set of building
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n Modern Multi-Storey Heavy Timber Projects * Projects are five stories or more and primarily composed of heavy timber products.
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solutions to a specific market place and furthermore to each specific project based on an array of criteria. The development of modern timber construction is just warming up with the future presenting many exciting opportunities.
Nicholas Sills, guest blogger, WoodSolutions, is a Canadian who recently completed his Master’s degree in Switzerland. He provides insight into current market conditions and provides optimisation solutions for innovative design scenarios. For more details on existing modern multi-storey heavy timber buildings and coming projects, Nicholas can be contacted through WoodSolutions.
PREFABRICATION
AUSTRALASIAN TIMBER MAGAZINE
Touring Europe for inspiration I
N 2013 Johann Betz, of JS Betz Consulting in New Zealand, organized a tour of timber panel manufacturers in Europe. His group visited a good cross section of innovative prefabricators and projects to study methods of panelised prefabrication and housing construction.
People came from New Zealand and Australia, and comprised wood processors, prefabricators, builders, architects, engineers and Government delegates. The study tour concentrated on Germany and Austria. It was an invitation to learn from some of the best in the panelised timber building industries. Johann spoke of the tour during the 2014 FRAME conference. “I came to the conclusion that there’s only so much walking and showing pictures you can do, and talking about panelisation. “At some stage you just have to go where these things happen to look and touch, and feel and see how things are done. “My main objectives in putting this program together were that I wanted to show the audience the spectrum from small to large and that means from the small single family home right through to the multi-storey building. “I also wanted to show the small prefabricators as well as the large ones, there are companies that prefabricate 10 or 15 houses a year to the same standards of quality as the large ones who are doing hundreds.” Busting myths Johann also wanted to bust some myths, as there’re some opinions going round that prefabrication is all about multi-million dollar investments, and that it’s about highly automated factories. “I also wanted to look at the cost of prefab ... very often people approach me and they talk about prefab and say ‘well, surely it’s only half the cost, it’s only prefab’,” he said. “At the end of day prefab is just a different way to deliver the building.” A tour was also a good way to highlight differences. In Germany the architecture is different, the climate is different, the building regulations are different, the standard of living is different, and the culture is different. So you can’t just copypaste a factory from Germany to New Zealand or Australia. According to Johann, the tour was also about finding inspiration, about how you actually do panelised product systems - the business models, details. “The tour needed to be more than just sight seeing, by that I mean more than just looking at finished prefabs and looking at factories because neither of the two helps to answer the question - if this will work down under,” said Johann. “I tried to minimise travel, there’s so
much interesting stuff throughout German speaking Europe - Austria, Switzerland, Germany and other parts of Europe and people had travelled such a long way that there was no need for domestic flights around Germany.” When Johann first put the program together the aim was to have about 8-12 people. Then he started promoting the tour and because he says he is not very good at turning people away, he ended up taking a group of 20. This group was a good mix of wood processors, truss and frame manufacturers, industry people, builders, architects, engineers as well government delegates. It was very important to have a wide array of interested parties because if this is to come to fruition in Australia and New Zealand all these parties need to be involved. “I wanted to give the group an overview of what prefabrication in Germany looks like in the 21 century,” said Johann. Scaling up
“There is a showhome village an easy train ride from Munich - you see 55 plus prefab houses from different companies and they are all clustered around a central information centre. “You can go around and get a good overview of what prefabrication is about. “These showhome villages are doing a tremendous job educating the customer. “They are a sales tool for prefabrication construction in Europe educating the customer because if the customer goes there and compares and looks and so on, he learns a lot about the new mode of construction, building materials and innovations. “Another project we looked at was the NEST and plus energie medium density housing. “We looked at it for three reasons, one because it was medium density housing right in the middle of Munich. “The second reason was that the company, Bergmueller Holzbau, was my first employer after university. “The company built that project; they are actually a very small prefabricator. They are doing about 25 to 35 single family homes a year with about as many staff and what’s evident now is that they have the possibility to scale up, to take that panelised form of construction to buildings that are higher and bigger. “This is evident in Europe, one of the lessons we took away was that once the industry is established and has mastered panelisation on small scale you can scale this up, building regulations permitting. “The third reason this project was
interesting was because the gentleman in the photo is actually the chair and president of an organisation called ZimmerMeisterHaus (Master carpentry homes).
Collaborating for success ZimmerMeisterHaus is an umbrella organisation of about 90 very small prefab businesses that have divided Germany into sections so they can operate under the ZimmerMeister umbrella doing marketing as one brand, selling as one brand and tackling R&D questions in collaboration. Collaboration is the key word as there’s problems that every individual, every single player needs to solve for themselves but there’s also problems that are best solved and addressed in collaboration. That’s what these guys are trying to do especially marketing as one brand, by doing that they make themselves bigger than they actually are. “Another organisation is the BDF - German associate of timber home prefabricators - these are larger companies, more industrialized,” said Johann. “There’s more automation in their factories, there’s about 45 to 48 members and they would be doing about between 50 and up to 800 houses a year. “So we had an opportunity to meet that organisation. We learned about how this organiation has managed to lift the quality that is produced by their member companies. “We were surprised to hear that the quality criteria was way beyond minimum requirements. They’ve managed to use these to raise the profile of panelisation and prefabrication.” Panelisation and prefabrication are not cheap and flimsy products; they are premium products that customers pay a premium to have. For some buyers in Europe it’s almost becoming a status symbol. There’s a lesson in that said Johann. “If we only associate ourselves with postdisaster housing and emergency shelter this is what we’re going to sell but increasing offsite construction should target well beyond that. “These people we met, they are building the whole house and therefore they control all aspects of cost and process and understand what drives cost and what influences cost and they can tweak that accordingly,” said Johann ... “A one stop shop. “In Germany in my opinion … it’s all about being an efficient process, with standardised assembly with the goal being rapid assembly onsite. “We looked at factories and finished projects and what became evident was that there were quite significant differences to what was in Germany and what is in New Zealand and Australia.” Style, form and function The average prefab in Germany is a simple ground floor and first floor construction, quite square and boxy with a simple pitched roof.
19 – November 2014
Buildings in Australia are quite different they have east wings, west wings lots of breaches and valleys, and if you tried to panelise the roof it would be very difficult.
So can you just copy-paste the European approach? “I would say the answer to that is no, then we tried to explore on the tour what works in the local context,” said Johann. “The key to that ... a systematic engineering approach from product to process. “The German prefab industry actively trains people at degree level - process engineers, timber engineers. “Rather than building a shed and putting some equipment in there let’s think about what we’re actually trying to make. Is it a one-stop shop to build a house, or do you just want to make panels. “If you want to make the whole house what does that house look like? What do the details look like? The wall to wall junctions, the wall to floor junctions, closed panels or open panels?” Johann was incredibly proud of his German heritage because wherever the tour went they were met with open doors and made very welcome. “I was actually proud to be German because we could ask any questions and take as many photos as we wanted and it was a real joy to visit,” he said. Take away messages from Europe: • Plenty of inspiration, especially around quality and technology • These guys are building and selling houses, NOT panels! • Panelised prefabrication is scalable and can produce quality buildings from small to large • Challenges (in Europe) for multistorey lie in fire/weather-tightness, and moisture issues rather than capability in prefabrication • Skills working ON the prefab business are important • Prefabrication is ‘a means to an end’. Whether panelised makes sense for your product and volumes can only be answered through a systematic and thorough engineering approach using technical and commercial feasibility, from product to process.
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PREFABRICATION
November 2014 – 20
AUSTRALASIAN TIMBER MAGAZINE
A game-changer for the construction industry AUSTRALIAN BUILDING firms face lagging behind global competitors, with prefabricated housing an untapped market for local manufacturers, according to META Managing Director Zoran Angelkovski. META, a collaborative network of engaged manufacturing businesses and researchers, together with prefabAUS, will determine how Australia can transform its construction industry to a smarter, leaner manufacturing mind-set through the launch of META’s prefabAUS Hub. “A primary objective of the Hub is to identify how our local construction industry can transform and compete against imported products in terms of quality, value, and speed,” Zoran said. “Hub participants will grow prefabricated housing through development of new architectural design thinking, innovative techniques and processes and work towards advanced manufacturing within the field.” Prefabricated housing is manufactured off-site in advance, usually in simple sections that can easily be shipped and transported. The Australian construction industry creates more than $150b contribution to GDP (10%) of which the prefabricated housing sector is just $4.6b (3%). The sector is expected to grow at more than 5% per annum compared to the overall industry at 2.3% through to 2023. Peter Newman, Professor of Sustainability at Curtin University and board member of Infrastructure Australia, says the Australian construction industry is outdated in its design of new developments. “The past 50 years of urban development in Australia has been based around building unsustainable car-dependent suburbs on the urban fringe. With Australia’s population growth expected to see a 60% increase to 37.6 million people by 2050, the industry needs to look to more cost effective and well designed inner city developments at higher densities. “Prefabricated housing is a next generation housing construction industry, a game changer in cost of housing, competitiveness, efficiency and productivity. Without leveraging this technology we will see Australia going backwards as overseas firms meet the needs of our local market,” Professor Newman said. Sarah Backhouse, CEO of prefabAUS, architect and Melbourne University researcher, says there is strong potential for Australia to develop a new manufacturing base centred on 21st century construction innovation and quality. “In Japan and across Europe prefabricated housing is widely accepted as a quality alternative to traditional construction due to its speed of delivery, design options and energy efficient choices. This represents exciting opportunities for Australia to innovate as our prefabricated housing industry continues to grow and span not only individual houses but also medium and high density solutions while ensuring we remain globally competitive,” she said. Jan Gyrn, from leading Australian prefabrication developer Modscape, said there was huge potential for local manufacturers to adapt to this growth market while providing consumers with innovative designs and choice. “Over the last decade, we have seen prefabricated housing transition from a temporary building idea to a sophisticated, design-led alternative to traditional construction.
Innovation Skills and practices that work 25 March 2015, Canberra
Save the Date The 7th Annual Industry Development Conference followed by the AFPA and ForestWorks Gala Dinner at Parliament House.
www.forestworks.com.au
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
“We have worked on exciting commercial and residential projects that are a far cry from the days of aesthetically boring prefab units and will challenge people’s conceptions of modular buildings. Today we can leverage the latest technology and manufacturing methods to deliver projects such as Ponyfish Island Bar in Melbourne, which shows innovation and artistic style within a logistically complex location. By using a modular base we can create almost any configuration of space at any size to suit individual styles, all the while delivering projects at less cost with minimal disturbance to the surrounding environment,” she said. The PrefabAUS Hub was officially launched at the inaugural Melbourne prefabAUS Conference. In Japan and across Europe, prefabrication is widely accepted as an alternative to traditional construction. Countries such as Japan, Germany, the USA, the UK and New Zealand have active, inspiring industry bodies dedicated to advancing prefabrication through collaboration and innovation. New Zealand’s PrefabNZ has been a powerhouse of activity in its short three years prefabAUS is working towards similar shifts in Australia, providing the consumer with increased choice coupled with a strong commitment to advancing our manufacturing sector.
n Zoran Angelkovski, META’s Managing Director (right), at the prefabAUS Conference, with Minister for Manufacturing David Hodgett and key prefab industry members.
Robotic prefab building system THE LANDESGARTENSCHAU Exhibition Hall is a peanut-shaped pavilion conceived at the University of Stuttgart as part of the ‘Robotics in Timber Construction’ research project. Constructed entirely by a robotic prefab building system, it showcases the current developments and innovations in computational design and robotic fabrication for lightweight timber construction. Funded by the European Union and the state of Baden-Württemberg, the domeshaped building with its convex polygonal plates is both material and energy-efficient. It is the first to have its primary structure entirely made of robotically prefabricated beech plywood plates -- 243 geometrically varying plates were created over the course of three weeks, along with the digital prefabrication of the insulation, waterproofing and cladding. One of the most important challenges and innovations was the robotic fabrication of the 7,600 individual finger joints, which have interlocking connections to ensure the building’s structural stability. The structural loads that occur around the plate’s edges are transferred efficiently by these finger joints. This new kind of timber construction allowed the building to be made of plywood plates that were only 50mm thick. Almost all of the off-cuts produced during fabrication were re-used as parquet flooring. The development of the Exhibition Hall’s complex plate structure was made possible through advanced computational design and simulation methods. These allow the generation, simulation and optimization of biomimetic construction principles in architecture. Rather than drawing each plate manually, the plate’s design space was incorporated into a simulation and optimization process for automated formfinding. The pavilion was developed at the Institute for Computational Design, the Institute of Building Structures and Structural Design,
and the Institute of Engineering Geodesy, and it was realized in collaboration with Müllerblaustein Holzbau GmbH. After the robotic fabrication of the primary structure and the digital prefabrication of all other building layers, it took just four week to set up on site. This newly developed timber construction offers innovative architectural possibilities and is highly resource efficient, with the load bearing plate structure being just 50mm thin.
n Putting it together.
n Peanut-shaped pavilion is par excellence!
ASSOCIATION NEWS
AUSTRALASIAN TIMBER MAGAZINE
21 – November 2014
What grade was that? T
David Hayward, ATFA Technical Manager looks at the grading of timber flooring. It can be difficult to understand ‘what is what’ or the differences between two grades that appear much the same but have different names. In this article David removes all the misunderstandings.
HE GRADING of flooring is an area that is often confusing to the market and at times if those within the industry had a better knowledge of timber grading, then it would also make things clearer. It is important for each of us to know what the grading rules cover and what they don’t. It is necessary for each of us to have an understanding of what grade names mean and how they relate to Australian Standards. In addition to this we should also have an understanding of why different species, but of the same grade, can look quite different. Irrespective of what part of the industry you are primarily involved in, you need to know the concepts behind the grading rules. Currently in Australian there are Australian Standards relating to hardwoods and softwoods, and one specifically for Cypress (even though it is also a softwood). Grade names differ between the standards. In the hardwood standard there are grade descriptions for Select Grade, Medium Feature – Standard Grade and High
n The clean lines of a select grade Blackbutt floor.
n If desiring more character it is provided with this standard grade-medium feature Blackbutt floor.
Feature Grade. The size and number of features increases in line with what the grade names suggest. However, moisture content, machining tolerances and aspects relating to product performance are the same, irrespective of the grade. Gone are the days (as far as the standards are concerned anyway) where a grade with higher feature is regarded to be of lower quality. But what about all the other grade names that are out there. Manufacturers can have their own grade descriptions. These are often similar to those in the Australian Standard but differ in some ways such as the number of permitted borer holes. In most instances they are manufacturing to the moisture contents and tolerances of the standards and can claim compliance to that part of the standard. If doing this, they are to have the respective grade description available. If flooring of a particular grade name is ordered and what is sold to you has a different name, then you need to be aware that it will also be a different grade. Names such as utility grade and cover grade generally refer to material that does not meet grade requirements and may not be structural. That is these names mean that there is something ‘wrong’ with it. There are some things not covered by grading rules that at times both the consumer and those in the industry get surprised at. Firstly and very importantly, board colour is not included. Therefore any colour expectations must be clarified with prospective customers who may have preconceived ideas based on showroom samples, magazine photos or floors they have owned previously. With the flooring provided it is also up to the installer how the boards are mixed into the floor both in terms of colour and feature. One other area
that the standards do not the cover is board lengths. When floors are laid on joists longer lengths are often desired but with overlay particularly in apartments shorter lengths are generally easier to handle and often provide a straighter product. However, again communication between buyer and seller is required. Grading relies on the visual assessment of features in individual boards and sorting those boards based on the number and size of those features present. Through this process it is intended that an overall appearance to a floor will be achieved where features will dominate more in grades permitting higher feature. However, this may not always be the case. In one species gum veins may predominate in determining the grade and as such these will have a dominant affect on floor appearance. In another species borer holes may predominate in determining the grade and as such may influence the appearance of the floor to a much lesser degree. Hence a Standard Grade floor of one species may visually look quite different to standard grade floor in a different species. If suggesting an alternative species to a customer for availability reasons, it is important that not only the colour is considered but also the differences in grade features. The above provides a brief outline of grade related aspects that need considered with timber floors. Take time to consider how aspects of grade affect you in your sector of the industry and realise that communication is the key to meeting client expectations. ATFA can be contacted via our website www.atfa.com.au by phone 1300 36 1693 or email admin@atfa.com.au
ASSOCIATION NEWS
November 2014 – 22
TABMA continues to grow By Colin Fitzpatrick Chief Executive Officer Timber & Building Materials Association (Aust.) Ltd
W
E ARE delighted to announce the addition of two new appointments to the TABMA Australia team. We welcome Jim Dickens to the role of field officer in SA and Steve Magner to the role of field officer NSW. The substantial growth in the placement of trainees and apprentices across Australia has led to these additional appointments. Work Inspirations Project Many trades and career opportunities remain relatively unknown to school careers advisors and subsequently to school students. As such TABMA has been participating as an industry partner, with Manufacturing Skills Australia, TAFE, the NSW Glass &
Glazing Association and the Floor Covering Association of NSW in making careers advisors and students aware of the excellent careers available in timber manufacturing, frame and truss, timber flooring, glass and glazing and textiles. As TABMA has more positions available for trainees and apprentices than applicants, it is hoped that projects such as this will lead to students showing an interest in pursuing careers in the above mentioned trades. FITEC The expansion of FITEC out of SE Queensland has begun with a successful venture into the Northern Rivers area of NSW. On August 28 a special meeting was held in Brisbane and approved the conversion of FITEC to FITEC Pty Ltd a wholly-owned subsidiary of TABMA Australia. Tim Isaacs remains as General Manager of FITEC and is excited about the
expansion plans recently mapped out for the organization.
PRUDENT EMPLOYERS can conduct checks of a candidate’s references, qualifications, police/criminal background, litigious conduct and credit history prior to making a job offer. However, it is important to ensure that your screening process complies with the Australian Privacy Principles, anti-discrimination legislation and state laws. Pre-employment screening (PES) is a due diligence process conducted by vigilant employers prior to making a job offer to a potential candidate. The process is essentially an investigation conducted by an employer with a view to verifying a job applicant’s background and the validity of his/her skills, qualifications and experience as asserted in their job application. Hiring the wrong candidate can lead to a plethora of future problems for an employer, ranging from minor issues such as wrong fit or inadequate performance (resulting in a short lived employment relationship and repeated recruitment costs), to more serious problems such as fraud, damage to reputation or even litigation. Furthermore, given the protections now available to employees, it is especially beneficial to be aware of any of these potential problems prior to making any job offer. Information uncovered during background checks can include: • Historical job commitment (or lack thereof) • Integrity of the candidate - were the alleged qualifications and experience claimed by the job applicant valid or misrepresented? • Litigation history - in a recent case where an employee made a vexatious claim against their employer, it was discovered that they had a history of making similar claims against previous employers What screening processes do companies run? • Reference check - a standard reference check phone call will ordinarily provide a sincere and realistic view of a potential candidate • Qualification check - documentary evidence can be used to verify qualifications and accreditations quickly • Mandatory requirements - some jobs require mandatory checks specific to that role. However, nearly all jobs will require an employer to ensure that a job applicant has a legal right to work in Australia • Police/criminal background check - will disclose the existence of a criminal record • Civil/criminal litigation check - by conducting a public case law search, you may uncover a history of litigious conduct or previous contractual breaches that have the potential to harm your business • Bankruptcy and credit history checks can give a useful indication of a candidate’s levels of responsibility and reliability • ASIC Register - a quick search of the ASIC Register will disclose whether someone has been deemed a banned/disqualified person
Social responsibility is a key issue
SA Management Committee The TABMA SA management committee, headed by Andrew Bone, has outlined plans to substantially grow TABMA in South Australia and assist TABMA management in achieving these lofty goals. TABMA Membership We are extremely happy with the substantial growth of TABMA membership in every State, which is as a result of the proactive stance undertaken by TABMA and the huge range of services and benefits offered by the association to existing and potential members. TABMA is continually in discussions with other associations and organizations to grow the services and benefits offered and ensure we remain at the forefront of the timber industry.
Pre-employment screening can help you avoid hiring the wrong candidate By Aoife Gallagher-Watson CBP Lawyers
AUSTRALASIAN TIMBER MAGAZINE
Obtaining consent from the candidate prior to conducting searches Any employer or business intending to conduct PES must be aware that legal and ethical considerations apply both prior to conducting any searches and when taking any information uncovered into account in making your decision on the successful candidate. First and foremost, consent from the candidate should be obtained prior to conducting any searches. This might be included on a job application form or requested following an interview, for example. Complying with the Australian Privacy Principles Secondly, issues surrounding data protection, privacy and discrimination need to be addressed. The privacy element is especially important considering that changes to privacy laws in Australia were implemented in March 2014. The new Australian Privacy Principles require an individual about whom information is being collected to be informed of certain things, such as the fact that the information is being collected and who is collecting the information. For more information see the website of the Office of the Australian Information Commissioner. Complying with Australian anti-discrimination law Another important issue to bear in mind when conducting (or considering) PES checks is Australian anti-discrimination law. Of particular importance is the Australian Human Rights Commission Act 1986, which applies to employers and employees concurrently with state and territory legislation. Where the discovery of a criminal record results in a person being discriminated against because of that record (including circumstances where a job applicant is refused employment where a criminal record is revealed), a company may leave itself open to discrimination claims. An exception arises where the conviction in question would impact directly on the job. However, it must be noted that some state-specific variations do arise in state anti-discrimination statutes. The Australian Human Rights Commission has developed a set of guidelines that can provide assistance to employers in navigating their way around this issue. The same applies to a dismissal for discovery of a conviction. However, where an employee has misrepresented himself or herself during the recruitment process, there may be cause for termination. What happens when the screening process uncovers unfavourable information? Should a PES check produce a result that gives you any reason for concern, it is advisable to discuss its relevance to that role and/or your potential liability in the event that you need to refuse a candidate based on same with your lawyer. He/she can also assist in determining the legality of any PES policy that you may have in place. Due to the variations in state laws, local guidance in this regard can be particularly beneficial.
By Eric Siegers Executive Officer TMA I THINK the idea that we think global act locally has taken a new turn and there is an expectation across the board companies take a more active role in their social sphere. Social responsibility is not a new term, but it is growing in use in the consumer field as people seek to act locally. The term social responsibility is used to describe the way that a business takes into account the financial, environmental and social impacts of decisions and actions it is involved in. It is an increasingly important issue in business, as managers, consumers, investors and employees have begun to understand how economic growth is linked to social and environmental wellbeing. Social responsibility is a key issue for any organisation aiming for long term sustainability. Whilst it is a mostly voluntary concept, there is increasing pressure on organisations to make a positive contribution to society, or at the least, reduce their negative impact. Internationally, governments are also moving towards the enforcement of certain elements of corporate social responsibility, particularly in regards to the protection of the environment. Responsible businesses may not necessarily be able
to measure the positive impact their behaviour has on their performance, however, irresponsible businesses are likely to notice the negative impact their decisions have on their bottom line. Business sustainability now and in the future depends on organisations taking into account the social and environmental consequences of their decisions and actions. Having been on the back foot on particularly environmental issues for the longest time, putting a focus on individual social responsibility I feel is a good step to all of us contributing to the long term health of our industry. Recently the TMA tested the idea of social responsibility at a series of presentations we gave across the tate of Victoria. What was intriguing was how well the idea was received by builders, merchants and the public. These are people who normally we would consider the idea as being too high brow and too “out of touch”. It wasn’t. This tells me the idea is indeed taking hold and importantly something people seem to expect as part of the overall business mix of their suppliers. Traditionally, managers have been focused on short to medium term. However, there has been a developing trend that goes away from simply increasing the return for shareholders and instead focuses on increasing the value of the business in terms of the stakeholders. Developing your understanding of social responsibility and implementing it into your business now may help you to get a step ahead of your competitors. You can use it to gain a competitive edge and it provides you with the opportunity to provide benefits to a wider range of business stakeholders.
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ASSOCIATION NEWS
23 – November 2014 BRONZE SPONSORS
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Special projects tick all the boxes for members
By Kersten Gentle Executive Officer FTMA Australia AS AN association you get invited to participate in many projects and it is important that instead of participating in everything, you take a step back and ensure your time is spent on achieving the most for members. Two projects in the past year ticked all the boxes for FTMA. Of course the Prefabricated Ground Floor Project is one and we are still working on this with the Market Implementation Group and it is worth noting that there are great trials being undertaken. These trials are for sloping blocks, reactive clay areas and flood plain areas and with the quantitative surveyor finalising the business plan we believe our industry will have great opportunities in the future for increasing their market share with flooring. The other project which has really excited me is the ForestWorks Innovation Skills Program. FTMA Australia is represented on the Project Executive Team and we have seen first-hand the benefits of the innovation forums held in various sectors. Recently we started the Frame and Truss Innovation Working Group which comprises fabricators, nail plate companies and suppliers. The group met to focus on what innovation is needed within our industry and where we can gain the best benefits, not only for FTMA members, but Fabricators Australia wide. The end consensus was for the group to focus the next nine months on waste, lean and safety with the emphasis being on ways to either minimise the costs of waste or maximise the benefits fabricators can gain from their timber waste.
It was estimated that between 50-60% of a fabricators input costs are from timber and the results of an FWPA survey last year highlighted that waste offcuts and sawdust generated 7% of total wood purchased. If we can find ways to save costs on disposal of waste or find markets for value adding the waste than every fabricator in Australia can possibly benefit. Geoff Baxter of BB Truss & Timber has done a lot of research in to maximising timber waste and has installed machinery to create timber briquettes. Not only does this go a long way to addressing his own waste issue but working in conjunction with other fabricators he can take their waste to use his. This new product has the potential to add great value to his business and save the other fabricators money. As a member of the Innovation Working Group, Geoff has brought along his briquettes and shared information on his research which recognises the need for more fabricators to look at this new value added product from waste and of course generate greater markets for the timber briquettes. An important part of the IWG is to look at the possibilities and the possible barriers for waste disposal and a massive barrier will be the disposal of H2 treated pine as there is no doubt over the coming years the blue market will increase such as the recent decision by Hyne to go full Blue in NSW. The group will be looking towards the research already completed courtesy of an FWPA-funded project which was carried out by Stephen Mitchell of Timber Development Association NSW on the Opportunities for post-consumer H2F treated ‘blue-pine’ off-cuts and resource recovery exemption application for end of life wood. Safety is also something FTMA Australia and the Innovation Working Group is passionate about, as again this is something that impacts on every Australian Fabricator as one company’s injuries impacts on everyone else through increased Work cover premiums. Investigations are under way in to the development of a national anonymous reporting system of near misses or accidents but of course it is vital we explore what impacts this may have on fabricators from a legality point of view. For example, if an accident, or near miss is reported on the site with a solution offered to address the safety concern and a fabricator experiences a similar accident at their plant, will there be implications given they didn’t take in to count
possible solutions highlighted on an industry awareness page? This is a negative but the benefits are far greater with cost affordable solutions being identified and shared amongst the industry in the hope of reducing the accident rates within the sector which of course benefits everyone’s premiums. So far the response from authorities and work cover experts has been a positive one with one authority suggesting another aspect of the database could be ‘solutions’ to identified safety risks. These could be shared, they say, without any background as to whether they were born out of an actual incident or just due to a company being proactive in this area. To finish this month’s column and keeping in line with the theme of safety I would like to remind fabricators to keep their stress levels under control. Over the past month I have
spoken with many fabricators who are all extremely busy but the level of stress in their voices indicates that they are over-worked. The industry needs to look at the value of our industry. Many fabricators are busier than they have been in a long time and perhaps the stress is because unlike years gone by they are busier but are making less money due to the way the industry has gone. Many Fabricators say they cannot afford time away from their business for meetings and for business or personal development and this isn’t healthy. You need to take time for your families and yourself and this also applies to your employees. There is no use pushing yourself in to an early grave for nothing. Perhaps it’s time, without the ACCC freaking out that fabricators and the construction industry begin to recognise our industry for it’s true value.
Yes – It’s true, Whittakers Timber Products is closing down! Our Sawmill at the Greenbushes site in Western Australia has already closed and the dry mills and kilns will close towards the end of this year. All plant & equipment is being offered at super low prices on an as is where is basis! The Company Directors say, “SELL IT ALL” Complete near new 2006 MEM sawmill 2 x other comprehensive hardwood mills 3 x moulding lines 15 x conventional kilns Kiln sawdust/thermal oil heating system 2 x optimising docker lines 2 x chipper lines Loaders & forklifts Edgers Cherry picker, scissor lifts Tool grinding shop Log debarkers Compressors Gang saws Maintenance work shop equipment & spares Weigh bridge Large clam shell storage bin Dust extraction systems Comprehensive sawshop Office equipment & furniture Huge inventory of materials handling gear Everything must go! We are even selling the buildings! View our website www.whittakersequipmentsale.com.au or telephone Geoff on (08) 9302 2022 – mobile 0409 302 200 or Chris on (08) 9459 6877 – mobile 0409 083 977
Researched for Truss Plants – Built for Truss Plants – Demanded by Truss Plants
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