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Report
from
North America
Wood product manufacturing up but domestic demand
remains sluggish
The US wood products industry posted of all
manufacturing sectors the highest growth rate in
September, according to the Institute of Supply
Management’s Manufacturing ISM Report On Business.
This was despite little improvement in domestic retail.
Retail sales were virtually unchanged in August according
to US Census Bureau figures, even though back-to-school
sales usually boost retail sales in late summer.
Consumer confidence is low given the recent volatility at
the stock markets and the unsettling economic news from
Europe and the US. August sales of furniture, home
furnishings and building materials were at similar levels as
in July.
On a year-to-date basis retail sales of furniture and home
furnishings is virtually the same as last year, while
building materials sales (including gardening supplies)
increased by 6%. In Canada, furniture sales declined for
the third consecutive month, falling by 2% in July
according to Statistics Canada.
New orders for residential furniture increased by 8% in
July compared to last year, according to the Smith
Leonard survey of US manufacturers and distributors.
Much of the increase was due to higher prices, however,
because the price of raw materials went up from last year.
New orders declined from June levels, but a seasonal
decline in July is normal. Furniture shipments were down
1% compared to July 2010. Furniture inventories went up
from June and were 5% above July 2010 levels, roughly in
line with the increase in furniture orders.
Furniture manufacturing expected to expand in the US
as China’s labour cost advantage erodes
The Boston Consulting Group forecasts that furniture will
increasingly be produced in the US, a trend that will
accelerate in the next five years.
It is becoming more difficult for factories in China to hire
workers and as a result, China’s labour cost advantage
over the US is decreasing. Wages in furniture
manufacturing in China are just 10 to 15% lower than US
wages, down from a 50% gap, according to the portal
Woodworking Network.
Woodworking Network reports that several cabinet and
furniture manufacturers have shifted production from
China to the US or they chose US locations for new
investments.
In some cases furniture components are still made in
China, but they are assembled in the US. This has a ripple
effect on suppliers to the furniture industry who will also
expand or invest in US locations.
Practical advice on the US Lacey act from AHFA
The American Home Furnishings Alliance (AHFA) has
published an excellent short article about the expectations
and requirements of the Lacey Act following the recent
government enforcement actions at a US guitar
manufacturer who imports tropical species.
AFHA describes the main points for US furniture
manufacturers, distributors and retailers, but the article is
valid for all wood products imported into the US. The
article is available online at:
http://www.ahfa.us/uploads/documents/furnexec.pdf#Lacey
EPD’s secured for western red cedar decking and siding
The Western Red Cedar Lumber Association, based in
Canada, has obtained Environmental Product Declarations
(EPDs) for cedar decking and siding products to better
communicate the environmental performance of cedar
compared to other materials such as plastic or woodplastic
composites.
EPDs are standardised summary reports of life-cycle
assessment (LCA) product data from resource extraction,
manufacturing, usage to the disposal of products. EPDs
present an opportunity for the wood products industry to
better communicate the environmental performance of
wood and to improve the competitive position of wood
versus other materials.
While the number of EPDs for products used in the
construction and furnishing of buildings is still very small
in North America, the Western Red Cedar Lumber
Association expects this will change; for instance the US
Green Building Council is looking at EPDs for future
versions of the building certification system LEED.
The US Forest Service recommends including LCA in
green building codes and standards.
The American Hardwood Export Council has
commissioned an LCA study of American hardwoods that
will provide the database necessary to produce EPDs. The
EPDs are expected to better position American hardwoods
in domestic and export markets.
US Forest Service report on wood and green building
Wood should be the primary building material in green
building according to a study released by the US Forest
Service.
The report also finds that the use of life-cycle assessment
(LCA) in building codes and standards would improve
their scientific foundation. To lower the environmental
impact of buildings, life-cycle inventory data for wood
products and non-wood building materials needs to be
collected and regularly updated.
Wood utilization should also to be improved through new
technologies, including re-use of products at the end of
their life.
The full report “Science Supporting the Economic and
Environmental Benefits of Using Wood and Wood
Products in Green Building Construction” is available at:
http://www.fs.fed.us/news/2011/releases/09/green-buildingreport.
pdf
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