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PEFC PEFC/01-31-140
Promoting sustainable
forest management
www.pefc.org
November 2012

Supply Chain

Supply – in general not a lot of change in the supply situation.  There is one overiding change we see, and that is the growth in use of timber which are not TROPICAL HARDWOODS. The growth in market share for temperate hardwoods as well as the growing market for "modified timbers" is FANTASTIC.  The temperate hardwoods are generally from a much more "well managed" source and the "modified timbers" are all "well managed " as well. So the supply and demand for tropical hardwoods is seeing many changes.  We are obviously thrilled at the positive growth in sales for Accoya as an alternative to Tropical hardwoods, and this is one example of the changes taking place. American Hardwoods are also rapidly growing market share. The same is not true of the many tropical hardwoods which come from a range of good to bad sources. How do you choose, well its not clear and or easy and many in the supply chain do not tell the WHOLE story.
There are however three supply chains we are seeing with some notable change and are worthy of discussion:

Vitex ( and other species)from the Solomon Islands which are facing severe shortages as well as questionable legal and sustainable supply. The source we had all been hoping to support ( local Solomon Island communities) has proven extremely frustrating and difficult to manage and monitor. So some troubling questions arise, we and others are still debating the viability and veracity of the community supply. We ( distributors) want to grow a community supply but its the reliability of this supply and the infection of logs from log exporters that is of concern. Log export logs contaminate the supply chain and are in not necessarily legal and or sustainable.

Western Red Cedar from British Columbia (BC) in Canada has been in over supply for sometime (years)  and we have mentioned that at some point this would have to change.  The past Northern summer was a long hot one that caused a long fire season and constrained logging in the forests of BC. The sawmills have seen log shortages and one miller told me that they ran of logs a first for them. The supply pipeline for lumber is therefore very thin. Log prices have risen and lumber prices are now rising as well, reflecting more demand than supply. Will this continue? All depends on demand and how well the major suppliers control the supply. The indications are strong that indeed we are off the bottom and will see more increases in the next little while. Let’s hope it’s not quite like the last bull run where prices surged some 30% in the space of 12 months, then fell off.

Australian Hardwoods in terms of supply are being variously affected by environmental and market forces which are re shaping the supply chain. In Tasmania the supply is in a total mess. Tasmania Forestry has over estimated log availability and then on top of this environmental pressures have led to a huge drop in the log volumes available. In terms of the NZ market the main supplier for years was Gunn’s and with the break up and final demise of the company the supply is a trickle of what it once was. Prices are starting to rise appreciably and are likely to rise further. There is no ongoing supply of the Joinery and Furniture sizes ( 40 and 50mm) we consume here in NZ, so the market will need to adjust to Victorian Ash and or other species. The supply of Victorian Ash is good and for the forseeable future a readily available supply seems assured. It would be remiss however not to note that the resource even in Victoria is State Government owned and with financial losses being made by the State owned forestry Department and environmental pressures the future is by no means certain.  As we have noted previously the widely available and cheap American Hardwoods (especially US White Ash and White Oak) are finding a ready market here in NZ.

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Previous Article
Current Feature Stories
November 2012
/imagesdb/Issue/e7fae975-e5d2-4393-a27f-90676cf90c4b.jpgSupply Chain
A few issues to consider. Three supply chains in particular showing signs of stress. Solomon Islands timbers, Canadian, Western Red Cedar and finally Tasmanian Oak/Victorian Ash. The other interesting story here is the changing position of tropical hardwoods.
/imagesdb/Issue/a3e069e3-9dc2-49fc-9c26-9e8e5c2c469d.jpgAccoya - Wood for the future
Fantastic sales, great interest and Johnny doing heaps of presentations. Sales growth is strong, with new demand for Accoya from Joiners and others from all over NZ.
/imagesdb/Issue/58006e2a-c2d9-4e8a-9c30-73b40233e3f1.jpgMerry Christmas and Happy New Year
Merry Christmas and Happy New Year from the team at Timspec. We are closing for a much needed break on the 21st December and will return refreshed on the 14th January.
Current Feature Stories
August 2012
/imagesdb/Issue/f4dd529e-f26e-4610-a7ab-2b9e09609aa3.jpgWooden Gates to the Rescue
Alan Warner and his team at Wooden Gates, together with Timspec have helped out a customer by donating a gate. there is a link in the story to the story whcih screened on TV One on the Fair Go programme Wednesday 15th August.
/imagesdb/Issue/bf75bc66-6bef-4732-a891-bde929e06f2f.jpgTim Deck
We are launching our new FSC decking product in September. It is Radiata Pine, specially Quarter Cut and CCA treated with the addition of WAX and then machined to a fantastic watershed profile.
/imagesdb/Issue/813215d7-9099-4aab-a43e-d1aa9a3a8394.jpgStrong demand for NZ Hardwoods
We are seeing strong demand for NZ grown Eucalypts ( such as Saligna, Blackbutt( Pilularis)) so we are adding a new option NZ grown Messmate. We also stock NZ Maple and Cherry Beech the FSC Hardwood option from NZ.
/imagesdb/Issue/22373388-f9de-4d04-bf96-42d67ce6dc99.jpgCertClad and new highlight
July was a milestone with testing being successfully undertaken on the vertical shiplap certclad solution. The other news was the first jobs came through for BevelBack CertClad.
/imagesdb/Issue/c0b0cdd1-4a33-407c-b355-d5c49441192f.jpgAccoya Seminars a Success
During July we held 2 seminars about Accoya specifically for Architects and specifiers. Over 120 people attended and the one held in Wellington actually attracted more attendees than did the one in Auckland.
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TIMSPEC (Timber Specialist Limited) PEFC & FSC Certified Products are available on request
Auckland
64 Stoddard Road
Mt Roskill
ph: (09) 620 0260
fx: (09) 620 0261
web: www.timspec.co.nz
Carterton
30 Kent Street
Ph: (06) 376 9381
Fx: (06) 379 9382
email: shane@timspec.co.nz
Christchurch
9B Francella Street
Bromley
ph: (03) 384 5287
fx: (03) 384 5289
email: gareth@timspec.co.nz
PEFC
PEFC/01-31-140
Promoting sustainable
forest management
www.pefc.org
FSC

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