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Socio-Economic
Montage
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Value-Added Wood
Products Strategy
For the Kootenay-Boundary Region
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Authored
by:
R.E. Taylor and Associates Ltd.
Forest FocalPoint Information Services Inc.
Forec Consulting
Commissioned
by:
Forest Renewal B.C.
Cranbrook, B.C.
March 1998
Location
of Publication:
"Columbia Basin Trust Collection"
Forest Renewal B.C., Cranbrook, B.C.
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As a dominant low-cost supplier
of commodity wood products until the 1990's, British Columbia's
industry has never had a strong need to move along the "value
chain" in terms of value-added products, services or marketing.
Since 1994, the province has quickly become one of the world's highest-cost
producers of wood commodities. It has found out the hard way that
its primary industry is top-heavy with commodity products and high-volume
sawmills, and is shallow on new product ideas, market development
initiatives and value-added options.
The objective of this study was
to develop a strategic plan for the promotion and expansion of the
value-added wood products sector in the Kootenay region. It involved
consultation with various stakeholders, interest groups, industry
representatives and government agencies in an attempt to look at
the big picture (vs. focussing on local issues and problems). As
a result, the report contains a comprehensive assessment of the
issues, opportunities and constraints for enhancing the value-added
wood products industry in the region. It details the following areas:
i) Product and
Market Opportunities - An analysis of
the current situation of the forest industry and the value-added
sector in the Kootenay-Boundary region, and an identification of
the potential value-added processes or products that could be suitable
for the region.
ii) Potential
Kootenay-Boundary Value-Added Sector Development
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An evaluation of the identified opportunities in relation to the
main success factors required for the business to be viable and
to the major constraints that could prohibit the business from starting
or maintaining itself. This section includes:
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Potential future growth -
previously identified opportunities evaluated against potential
constraints.
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Furniture retailer survey
- hardwoods (primarily oak and maple) were identified as the
dominant species in the marketplace in all categories. Pine
has the greatest degree of consumer acceptance of all native
B.C. species. "Hot" products include:
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bedroom (pine and pier
bedrooms, shaker styling, wood/metal combinations and
murphy beds);
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casual dining (birch/maple
sets and extension tables);
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wood stools - bar/counter;
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storage (benches, shelves
and blanket boxes); and,
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wooden futons. |
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Government initiatives and
agencies that have the potential to improve communication
and facilitate trade between the primary and secondary processors
in the region. |
iii) Needs Assessment
Based on Identified Opportunities - A
focus on human resources, which includes an overview of the workforce
in the region, workforce requirements for value-added industry development,
and training requirements for upgrading the skills of the existing
workforce.
iv) Strategic
Planning Analysis: Opportunities by Kootenay Industry Sector -
a summary of each industry sector based on the most practical value-added
opportunities that could be developed. This section includes opportunities,
key success factors and major constraints to growth/success for:
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primary
sawmills (basic remanufacturing, engineering wood
products and internal remanufacturing).
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small/medium
sawmills (add to remanufacturing equipment, market
downstream and advanced remanufacturing).
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independent
remanufacturers (basic remanufacturing and advanced
remanufacturing).
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specialty
wood products manufacturers (furniture and specialty
woodworking - casegoods, millwork - doors and windows, and
prefabricated structures). |
v) GAP
Analysis - Some of the value-added opportunities identified
above are constrained by various issues and factors that could inhibit
the development of these businesses. The common success factors
required for viable value-added businesses across the four industry
segments are communications, extension services, fibre supply, finance,
industrial infrastructure, marketing, technology, and training.
Available resources, gaps and potential remedies were identified
for each factor.
vi) Recommendations
- The proposed vision is one of increased industrial
development in both the remanufacturing and specialty wood products
sectors of the Kootenay-Boundary region:
Lumber
Remanufacturing Opportunities - the following industrial
development in the Kootenays is likely to occur within the next
three to five years, subject to the implementation of resources
to assist this sector (fibre access, financing, US quota, technology,
training and marketing), and subject to an improved economic and
business climate:
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primary sawmills (40 jobs)
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small/medium sawmills (30
to 60 jobs)
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independent remanufacturers
(20 to 40 jobs) |
Specialty
Wood Product Opportunities - the following value-added
development is likely to occur within the next three to five years,
subject to the implementation of resources to assist this sector
(workforce skills, product quality, technology, design, financing
and marketing):
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furniture and specialty woodworking
(30 to 60 jobs)
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millwork - doors and windows
(10 to 20 jobs)
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prefabricated buildings and
structures (15 to 40 jobs) |
Issues impacting on the expansion
or restructuring of new and existing facilities include:
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Fibre Supply
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U.S. Lumber Export Quota -
restrictions on exports
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Business Climate |
In the macro-view of a value-added
strategy for the Kootenays, raw materials, capital and people need
to combine to create new jobs and infrastructure. Framing this process
are a number of critical support structures or groups that can be
instrumental in accelerating (or slowing down) the development of
a value-added industry in the Kootenays. Specifically, this includes
some of the following:leadership via government and the existing
industry;
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associations (existing and
with proposed additional functions);
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leading educational institutions
and training schools;
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business assistance incentives;
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new investors and entrepreneurs;
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capital, including financing;
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business climate via government;
and,
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implementation of the whole
package. |
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