MARKET ACCESS & DEVELOPMENTProject number: Pn07.1045

Australian market requirements for western red cedar and Douglas-fir

This report can also be viewed on the FWPA website

www.fwpa.com.auFWPA, Level 4, 10-16 Queen Street

Melbourne VIC 300, Australia

T +61 (0)3 9614 7544 F +61 (0)3 9614 6822 E info@fwpa.com.au W www.fwpa.com.au

DECEMBER 2008

Australian market requirements for western red cedar and Douglas fir

Prepared for

Forest and Wood Products Australia

by

W. MacLoud

Publication: Australian market requirements for western red

cedar and Douglas fir

Project No: PN07.1045 © 2008 Forest & Wood Products Australia Limited. All rights reserved. Forest & Wood Products Australia Limited (FWPA) makes no warranties or assurances with respect to this publication including merchantability, fitness for purpose or otherwise. FWPA and all persons associated with it exclude all liability (including liability for negligence) in relation to any opinion, advice or information contained in this publication or for any consequences arising from the use of such opinion, advice or information. This work is copyright and protected under the Copyright Act 1968 (Cth). All material except the FWPA logo may be reproduced in whole or in part, provided that it is not sold or used for commercial benefit and its source (Forest & Wood Products Australia Limited) is acknowledged. Reproduction or copying for other purposes, which is strictly reserved only for the owner or licensee of copyright under the Copyright Act, is prohibited without the prior written consent of Forest & Wood Products Australia Limited. ISBN: 978-1-920883-45-4 Researcher: W. MacLoud Thorlynne Pty Ltd PO Box 116, West Pennant Hills NSW 2125

Forest & Wood Products Australia Limited Level 4, 10-16 Queen St, Melbourne, Victoria, 3000 T +61 3 9614 7544 F +61 3 9614 6822 E info@fwpa.com.au

Final report received by FWPA in October, 2007

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Executive Summary

Demand for Douglas fir (D fir) has decreased considerably over the last twenty years being replaced by kiln dried, mainly machine graded Radiata pine and Engineered Wood Products from Australia, New Zealand and Scandinavia. Western Red Cedar (WRC) has also decreased in volume over the same time frame but to a lesser degree. The possibility exists for the consumption of WRC to rise as Cedar’s natural durability, unique properties and sustainable supply characteristics will see it replace some non-sustainable Asian species. As well, there is the possibility of WRC being used as an alternative to chemically treated wood.

Australia consumes about 4.5 million cubic metres of wood per year. Imported Douglas fir from all sources (about 98,000m3 in 2004) makes up about three percent of the annual timber consumption while Western Red Cedar holds one per cent of the market.

To learn about attitudes in regards to Douglas fir and Western Red Cedar, interviews and a Web based survey were conducted.

The on-line survey received four hundred replies from a wide cross section of the building industry.

The survey results confirmed that sections of the industry have embraced on-line sources of information for their main source of technical references. Websites came out on top for finding timber information (TDA, FWPRDC (now FWPA) and TABMA websites were most notable). Designbuild, DesignEx and HIA Home Shows scored highest for trade show popularity. Respondents found information available for WRC to be “Satisfactory” but “Less satisfactory” for Douglas fir. When asked why they chose WRC in building projects, “Good looks/Aesthetically pleasing” then “Natural Durability” then “Stability” were chosen from a list of six reasons. “Price” then “Finishing and maintenance questions” were the most cited negatives for WRC. Douglas fir was noted for its “Availability in sizes and lengths required” followed by its attribute “Superior strength to weight ratio”. When asked why Douglas fir was not specified most replied “Don’t know enough about the product”.

Timber knowledge seminars were rated “Good value” with “Environmental Sustainability”, “General information on WRC and Douglas fir” followed by “Finishing and Maintenance” receiving the most support for seminar topics. Responses suggest targeted marketing strategies are needed.

To help increase the consumption of Douglas fir and Western Red Cedar, more information, easily accessible, and better indexed needs to be placed on websites.

A demand was identified for more brochures, increased training of sales staff and product knowledge seminars for designers and builders.

More face to face contact was recommended with Specifiers or Designers. Suppliers must work closely with the Design, Specify and Construction sectors to have these products specified.

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Examples of Douglas fir applications showing features and benefits need more publicity to keep this species attributes in front of consumers, specifiers and designers.

Western Red Cedar has many unique characteristics, most notably its durability, stability and beauty. These characteristics need to be presented often to the market place to raise the species profile and grow market share.

Underlining all of this marketing effort is that the environmentally friendly nature of wood must be continually made known to consumers, designers and builders.

Background to this report

The Forest and Wood Products Research and Development Corporation, now called Forest and Wood Products Australia (FWPA) is funded primarily from two sources; the Australian Federal Government and the Australian Timber Industry. The Australian Timber Importers Federation contributes a levy on every cubic metre of wood imported into Australia. The timber importer stakeholders and timber associations suggested this study into the Australian market for Western Red Cedar and Douglas fir.

The market for both these species has changed considerably over the last twenty years. The overall consumption of North American sourced Douglas fir has been falling since 1989. New Zealand sourced Douglas fir imports have held about steady over the same time frame. Western Red Cedar has seen a fall off of imports over the past 6 years.

Australia in that period has undergone a decrease in housing starts, a change in design and fashion, plus a rise in alternative imported products.

Aims of the project

Briefly outline the historical supply and the relative position these species held in the Australian market.

Stakeholders sought a snapshot of the role these species currently play, identifying the benefits and challenges associated with the use of Western Red Cedar and Douglas fir.

The project aimed to identify opportunities, applications and strategies for the future by suggesting ideas and ways to promote the species and develop new markets.

Methodology

To achieve these aims, a range of people throughout the building industry were interviewed and surveyed. The project focussed on learning about their attitudes towards Douglas fir and Western Red Cedar and soliciting ideas and suggestions for future market development.

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A web based survey served as a central core of the information gathering process. Two separate questionnaires were tested and approved by a range of timber industry people including members of the Australian Timber Importers Federation, timber exporters, association members, the Canadian collaborators, the New Zealand Douglas-fir Association representative, a building consultant and end users.

Questionnaire A was designed for architects, building designers, specifiers, interior designers, builders, engineers, carpenters and tradesmen.

Questionnaire B was designed for timber importers, timber wholesalers, timber merchants, joiners, manufacturers, consumers and home owners.

The questionnaires shared common questions but also asked specific questions oriented to each group.

Questionnaire distribution

An email distribution company was contracted to do an “Email Blast” sending an invitation to a stated 7000 email address list consisting of architects, designers, interior designers, landscape architects, builders, tradesmen, building companies and suppliers.

An online invitation was emailed to timber importers involved in WRC and Douglas fir. Large numbers of the timber merchants throughout Australia were emailed. The Master Builders Association distributed some invitations by email, as did the Building Designers Association of New South Wales Inc. The NSW Architecture Bulletin included a small write-up in the May issue, The Royal Australian Institute of Architects in South Australia and Queensland assisted by sending out the survey invitation to their membership.

Printed invitations were handed out at the Sydney Home Ideas Centre, the Melbourne Home Ideas Centre, at talks given by architects at the Sydney Home Ideas Centre and the front desk of a timber merchant. Invitations were handed out to interested parties at the 2007 Melbourne HIA Home Show and the Sydney design build exhibition. Further invitations were handed out at a Sydney Timber Industry Institute meeting. Not all of the invitations sent by email reached the intended party. Many were halted at the server gateway and set aside as spam.

An estimated 5000 people would have had been sent or handed or have sighted the invitation.

The author gratefully acknowledges all those companies, associations and individuals who assisted in distributing the survey invitation.

Four hundred and one (401) survey forms were received from respondents.

The strike rate of 8% was considered about normal.

Table of contents Executive summary.......................................................................................................................... i

Background to this report .................................................................................................. ii Aims of the project ............................................................................................................ ii Methodology ...................................................................................................................... ii

Part 1 Background to WRC and D fir in Australia ................................................................. 1

Introduction ........................................................................................................................ 1 Part 2 Past and present market ................................................................................................. 3 Part 3 A snapshot of the Australia timber resource ................................................................ 6 Part 4 Results of Douglas fir surveys ......................................................................................... 8

New Zealand Douglas fir ................................................................................................. 15 Part 5 Western red cedar .......................................................................................................... 16

Knotty grade cedar ........................................................................................................... 18 Canadian exports of western red cedar ............................................................................ 20

Part 6 Survey results – western red cedar .............................................................................. 21

Further survey results – additional information ............................................................... 23 Western red cedar and Douglas fir market survey – respondent quotes .......................... 27

Part 7 Timber’s environmental credentials ............................................................................ 31

Forests, Wood and Australia’s Carbon Balance .............................................................. 31 Energy .............................................................................................................................. 32

Environmental credentials of supplying countries .......................................................... 33 New Zealand ................................................................................................................. 33 British Columbia – forestry and sustainability ............................................................. 33 USA forest sustainability .............................................................................................. 35

Part 8 Housing market .............................................................................................................. 37

Australian housing starts .................................................................................................. 37 Housing affordability ....................................................................................................... 37 Affordability trends ......................................................................................................... 39

Part 9 Future markets ............................................................................................................... 41 Projected demographics to the year 2031 ........................................................................ 41 Australia towards 2020 .................................................................................................... 42

Part 10 Challenges for the species in the Australian market .................................................. 43 Part 11 Conclusions ..................................................................................................................... 50

Web .................................................................................................................................. 50 Training and information ................................................................................................. 50 Douglas fir ....................................................................................................................... 50 Western red cedar ............................................................................................................ 51 Advertising and publicity ................................................................................................ 51 Species substitution ......................................................................................................... 51

Part 12 Recommendations .......................................................................................................... 53 Part 13 References ........................................................................................................................ 57 Part 14 Appendices ...................................................................................................................... 58 Part 15 On-line survey – results ................................................................................................. 59

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PART 1 Background to western red cedar and Douglas fir in Australia

Introduction For more than one hundred years, Douglas fir (Pseudotsuga menziesii) and later, western red cedar (Thuja plicata), have been imported into Australia from the West Coast of North America. Many decades later plantation grown Douglas fir from New Zealand also began arriving in Australia. Both Douglas fir and WRC have made a vital contribution to Australia’s building industry in a range of construction applications. Imported volumes of western red cedar today are about half of what they were 20 years ago and volumes of Douglas fir (Oregon)(from all sources) is about 14 per cent of what it was 20 years ago. (Granted, 20 years ago, 1987, was one of the peak years for imports of WRC & Douglas fir and this current year is a relatively low year for building commencements.) Nevertheless, in round figures this is a huge drop in volumes. Why the big change? Housing starts have remained relatively constant averaging about 150,000 per year. Looking just at the Australian framing market, the largest application for sawn wood, two major shifts have occurred over the past twenty years. First, Australia is now basically self sufficient in framing timber, utilizing mainly locally grown plantation Radiata pine. Supplementing framing demand is a plentiful supply of Radiata pine out of New Zealand. Both sources of Radiata are priced competitively. The second major shift in supply has been the rapid uptake (from a slow beginning) of Engineered Wood Products sourced mainly from Australia, New Zealand and Scandinavia. The main EWP products being I beams, Laminated Veneer Lumber (LVL) and Open Web Trusses. In house construction, Engineered Wood Products are mainly used in floor joists. The vast majority of frames and trusses are fabricated off site in frame and truss plants. Frame and truss manufacturers use kiln dried, machine stress graded Radiata pine and Engineered Wood Products almost exclusively. Prefabricated frames, roof trusses and floor joists are supplied in a timely fashion to building sites for rapid erection. Few houses are now “stick built” on the building site.

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Douglas fir There still exists a smaller, but discerning market preferring to use Douglas fir for some framing applications, especially in renovations and additions. In upper storey floor joists, Douglas fir holds a market share as it does in structural and exposed beams, rafters, posts and formwork. With a shortage of supply in F7 Radiata pine, a potential niche market in Douglas fir F7 framing timber is a possibility. Douglas fir clears are specified for numerous joinery applications. Promotion of Douglas fir joinery is required to increase these applications. A modest market exists for Douglas fir and will continue to do so. Global supply of timber is constantly changing and Douglas fir may see renewed import growth in applications where its particular strength and associated qualities are required.

Western red cedar Although the volumes have dropped over the past couple of decades for Western red cedar, it is a preferred species for the joinery market for its inherent qualities and features. WRC is durable, dimensionally stable, aesthetically pleasing, machines well and is a natural thermal insulator. Importantly, it is sourced from sustainably managed and largely certified forests. With increased promotion of its natural performance characteristics and sustainability, western red cedar should grow in volume and market share.

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PART 2 Past and present market In the early days of the colony, buildings were constructed using a variety of locally available materials including sandstone, clay, and various species of trees which were either hand hewn or mechanically sawn into timber. As the colony grew, a timber industry became established, harvesting and processing the surrounding forests. Early merchants in the Australian colony began importing various species of timber that they were familiar with from Europe and then later from North America. The timber from the Americas began arriving around about mid 1800’s and consisted mainly of Douglas fir from the United States, along with small quantities of Hemlock, Spruce and some hardwoods. It was reported that Australia has imported timber from the United States for at least 150 years. (Larsen 1999) Why did people use Douglas fir in the past? Douglas fir was recognized early for its impressive strength to weight ratio, stability, toughness and availability in long lengths and large end sections. It was stable, free of spiral grain, relatively easy to dry, hard, suitable for joinery, framing, boat building and protected exterior uses. The straight, tall trees were plentiful in the coastal Pacific forests of North America. Trees harvested close to the ocean allowed the logs to be easily transported in log booms to the sawmills of the Pacific Northwest (Alaska, British Columbia, Washington and Oregon).

Export grades Douglas fir logs were exported or were resawn into “flitches” - 6” x 12” wider (150mm x 300 wider) (Sydney size) or 8” x 10” wider (200 x 250 wider) (Melbourne size) in lengths from 10’ to 40’ (3.0 to 12.0 m). North American Douglas fir grades imported in Australia for flitch included Select Merchantable Free of Heart Centre, “3 Grade”- defined as #1 Merchantable allowing a maximum of #2 Merch with Select Merch as developing. Clear grades were imported for machining into mouldings and joinery applications. Western Hemlock was also exported to Australia in 12” x 12” (300 x 300) flitches up to 40’ (12 m) in length. Western red cedar was normally exported as 4 x 6 wider or 6 x 6 wider or 1 ¾ x 6 (100, 150, 45 x 150 wider) wider or similar, in a range of grades including #2 clears, # 4 clears, Factory Flitch and Shop and better. California Redwood, (a species competing with WRC in many applications), was a sought after species in the higher grades (mostly Clear All Heart) until about the late 1980’s when supply declined and the price increased substantially. Sitka spruce was imported into Australia for boat building, musical instruments, oars and aircraft airframe construction. In the 1800’s a timber importing and remanufacturing industry was established in Australia to import, resaw and process timber sections into a range of building components- including framing, joinery, moulding and cladding with companies establishing themselves often on waterfront properties in the capital cities. The timber industry became substantial. In 1901 Australia imported timber and timber products to the value of $130 million in today’s terms.1

1 Source: ABS, Year Book Australia, 2001

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During the 1920’s and the Depression era of the 1930’s, plantations of Radiata pine (Pinus radiata – called Monterey pine in its native habitat on the west coast of California) were increased in size in Australia, New Zealand, Chile and South Africa. Around about the same time more plantations of Douglas fir were established in New Zealand and to a lesser extent, in Australia. During the Second World War shipments of timber from North America to Australia virtually came to a halt. Immediately after the War large volumes of timber were imported into Australia to fill the growing demand created from returned soldiers and the subsequent formation of families. The coniferous imports from North America were primarily Douglas fir with smaller volumes of WRC, then Western Hemlock. (Sitka spruce, California Redwood, Spruce–Pine-Fir were minor imports). The 1950’s was a boom time in Australia for building. Timber imports increased substantially. The bulk of the overseas imports for structural timber were Douglas fir from US exporters based in Washington and Oregon States.

Australia’s hardwood supplied building and construction markets An Australian Tariff Board’s Report on Timber 2 dated 20th December 1960 stated; “that based on supply statistics dating back to 1939 that approximately 80% of timber requirements were being supplied by local Australian sawn timber production”. From 1956 to 1976 total supply of sawn timber (from all sources) remained in a range between 3.5 million cubic metres (1962) to 4.7 million cubic metres (1973 – building boom). In the same period Australian sourced sawn timber supply ranged between 81% (in 1959) of the total to 72% of the total sawn timber supply (in 1973). The weighted average percentage contribution of imported sawn timber (from all sources) was 21.8% over the period 1956 to 1976. Of the mostly coniferous species imported from 1956 to 1976, less than 10 per cent of the timber was dressed or moulded. Douglas fir comprised more than 50 percent of the imports from 1960 -1976. Local production and imports in 1968-69 3 New South Wales produced 29 per cent of the total Australian production of sawn timber in 1968-69 and imported 55 percent of total imports. (NSW was a major market for imported Douglas fir, Western Hemlock, California Redwood, WRC, NZ Radiata pine and South East Asian hardwoods). Victoria produced 22.9 percent of the total Australian production of sawn timber in 1968-69 and imported 17.8 percent of total imports (local supplies were sourced from Tasmania and South Australia)

2 Australian Tariff Board 3 Submission to the Industries Assistance Commission May 1977 Australian Timber Importers Federation. Tariff Aid Pty Ltd.

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South Australia produced 8 percent of the total Australian production of sawn timber in 1968-69. On a per capita basis, the State of South Australia was the largest importer of timber in Australia with 13.7 percent of total imports. (Almost all of the imports were Douglas fir, with lesser amounts of WRC, Hemlock and SE Asia hardwoods) (Through the 1950’s, 1960’s and 1970’s Port Adelaide was the home to many large remanufacturing sawmills). In a Tariff Boards Public hearing on 27 May 1957, the Melbourne Timber Importers Association advanced the argument that “imported timbers are not in direct competition with locally produced timbers but complement market supply by extending the range of species, grades and specifications available”. In its report on the industry in 1960 the Tariff Board accepted the complementary argument and stated in its conclusion that – “imports are generally supplementary to, rather than competitive with local production”. Duty has been imposed on timber and timber products since the 1920’s. Over the years to about 1989, Douglas fir imports from North America constituted the bulk of the imports. Hemlock for framing was imported because it was cheaper than D fir and small amounts of Pacific North West Interior sourced Spruce- Pine- Fir (SPF) was imported as was Interior grown Douglas fir/Larch. Small amounts of kiln dried Lodgepole pine was brought in and green American Lumber Standards ALS (North American sized lumber) Douglas fir found a niche for a few years in the roof truss market. Pine species, kiln dried and manufactured in the Baltic countries and northern Europe, made a brief appearance.

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PART 3 A snapshot of the Australian timber resource

Native forests Australia has 155 million hectares of native forests, 11 million hectares are in designated multiple use forest. Less that 1% of these multiple use forests are logged each year. The volume of logs harvested from Australia’s native forests has been relatively stable over recent years.

Australian plantations Australia has 1.7 million hectares of plantations.4 The industry is on track to expand plantations to 3 million hectares by 2020.5 The harvested volume from softwood plantations increased during the 1990s and is expected to stabilise at around the current level. The volume from hardwood plantations is increasing rapidly as the large areas of plantations established since the mid 1990s reach harvest age for woodchips. In Gross Round Wood Equivalent (GRWE), Australia has been a net exporter of forest products since about the mid 1990’s.6 This trend is likely to be sustained by the regulation framework outlined in Plantations for Australia: The 2020 Vision. Other private initiatives will also insure that more plantations will be established in both softwood and hardwood. In 2004 98% of all new plantations were hardwood with about 34% of new plantations being established in Tasmania.4

Annual apparent consumption of sawn wood in Australia Annual apparent consumption of sawn wood in Australia averages about 4.4 million cubic metres. According to ABARE (Australian Bureau of Agriculture and Resource Economics), consumption is set to remain approximately the same for the foreseeable future. See Table 1.

4 Plantations 2020 brochure 5 Plantations 2020 brochure 6 ABARE, ANU Forestry Market report June 2004

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Table 1: Apparent consumption of Forest Products (sawn wood) in Australia

Unit 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Coniferous 000 m³ 3,455 2,912 3,112 3,270 3,608 3,948 est.

Broadleaved 000 m³ 1,425 1,248 1,174 1,138 1,115 1,358 est.

Total Sawnwood

000 m³ 4,880 4,160 4,286 4,408 4,723 5,306 est.

Per cent of Coniferous

71% 70% 73% 74% 76% 74%

Plywood 000 m³ 296 247 297 377 320 351 est.

Sawn wood exports from Australia were almost 300,000 m3 in 2005-2006.7

7 ABARE 2006 Australian Forest and Wood Products Statistics. March-June 2006

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PART 4 Results of Douglas fir surveys Survey results – Douglas fir The following are results from Questionnaire A of the on-line survey. Questionnaire A was designed for the Design and Build sector which included the following professions: Architect, Building Designer, Specifier, Interior Designer, Builder, Engineer, Carpenter, Tradesman. For brevity, this group will be referred to as Architect/Designer/Builder category. There were 203 responses.

Architects – 18% Building Designers / Specifiers– 34% Interior Designers – 9% Builders – 15% Engineers – 5% Carpenters or other Tradesmen – 9% Others – 11%

In the Architect/Designer/Builder category:

For technical information about timber: 27% consulted Websites 20 % product brochures 16% In-house libraries 14% manufacturers technical departments

• Only 12% of the Architect/Designer/Builder category was aware of Websites of domestic suppliers of Douglas fir. (Action required here)

• Seventy-five percent (75%) of the Architect/Designer/Builder category thought a

Q&A (Question and Answer) website link for Douglas fir and WRC was a “Good to Invaluable” idea.

• Eighty-two percent (82%) thought it would be valuable to utilize a link to a Website

with (drilled down) specific information about Douglas fir or WRC. (Example was a link to, ”How to apply WRC shingles” )

• When the Architect/Designer/Builder category was asked to rate the information

available for Douglas fir the answer was “Less than satisfactory”

• Sixty two per cent of Architect/Designer/Builder category said they had used Douglas fir (Oregon) in a building project in the last two years. The most popular applications were: 1. Large beams - 26% 2. Roof framing - 17% 3. Porch posts - 14% 4. Wall framing - 13% 5. Lintels - 12%

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6. Doors and joinery - 8% 7. Windows - 5%.

When the Architect/Designer/Builder category were asked why they chose Douglas fir (Oregon) the reasons given: 1. Available in sizes and lengths required - 23% 2. Aesthetics and good looks -20% 3. Superior strength to weight ratio -18% 4. Dimensional stability -10% 5. Matching previous framing in a renovation – 11% 6. Price - 10% 7. To suit client brief. 8. Liked the smell when sawn - 0.5%

Architect/Designer/Builders when asked why they do not use Douglas fir (Oregon):

1. Do not know enough about the product – 32% 2. Not sure where it can be used -21% 3. Availability was a problem – 15% 4. Lacked span tables and engineering specifications – 12%

Seventy-four percent (74%) of the Architect/Designer/Builder category did not

know that Douglas fir (Oregon) was available in clear grades. (Strong hint here)

Seventy percent (70%) of the Architect/Designer/Builder category wanted more information on timber coatings and finishes.

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Survey Results - Douglas fir (continued) The following are results from Questionnaire B – Douglas fir responses Questionnaire B was designed for the Supplier, Manufacturer, Consumer, which includes the following occupations: Timber Importers, Timber wholesalers, Merchants, Joiners, Manufacturers and Consumers. For brevity, this group will be referred to as Importer, Wholesaler, Merchant category.

When the Importer, Wholesaler, Merchant category require technical information about timber: 1. 27% consulted Websites, 2. 22 % Product brochures, 3. 21% In-house libraries, 4. 13% Timber related Associations (TDA, FWPRDC, AWA, WADIC), 5. 6% Manufacturers technical departments.

IMQ 7. Eighty-one percent (81%) thought it would be valuable to utilize a link to a

Website with (drilled down) specific information about Douglas fir or WRC. (Example was a link to, ”How to apply WRC shingles)

IMQ 8. Eighty-three percent (83%) of the Importers, Wholesalers, Merchants

category thought a Q&A (Question and Answer) website link for Douglas fir and WRC was a “Good to Invaluable” idea.

IMQ 21. When the Importers, Wholesalers, Merchants category was asked to rate

the information available for Douglas fir (Oregon) the answer was “Less than satisfactory”

IMQ 23/4. Forty per cent (40%) of Importers, Wholesalers, Merchants category said

they have used or recommended Douglas fir (Oregon) in a building project in the last two years. The most popular applications were: 1. Large beams -27% 2. Roof framing - 14% 3. Porch posts -13% 4. Wall framing -13% 5. Lintels -10% 6. Doors and joinery -8% 7. Windows - 6%.

IMQ 24. When the Importers, Wholesalers, Merchants were asked why they chose

or recommended Douglas fir (Oregon) they replied: Available in sizes and lengths required - 24% Superior strength to weight ratio - 18% Aesthetics and good looks - 14% Matching previous framing in a renovation - 14% Price - 14% Dimensional stability - 10%.

• IMQ 25. When asked why they do not use Douglas fir (Oregon),

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32% said they “Do not know enough about the product” 21% said they were “not sure where it can be used” 17% said “Availability was a problem” 8% said they “Lacked span tables and engineering specifications”.

• IMQ27. When the Importers, Wholesalers, Merchants were asked if they familiar

with the following websites pertaining to Douglas fir (Oregon): 1. Western Wood Products Association – 20% 2. Council of Forest Industries – 12% 3. New Zealand Douglas fir Association – 9% 4. Coast Forest Products Association -5% 5. BC Forest Products – 5% 6. None of the above – 49%

• IMQ 26. Sixty-five percent (65%) of the Importers, Wholesalers, Merchants knew

that Douglas fir was available in clear grades. • IMQ 30. When asked if timber reps were generally knowledgeable about Douglas fir

or western red cedar the average response was “Less than satisfactory” (2.9 on a scale of 1 to 8)

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One timber wholesaler’s observation of the Douglas fir market A timber importer/ wholesaler described his observations on the current market for Douglas fir scantling like this: “We deal with about 100 builders out of a possible 2300 in New South Wales. Not one of the 100 builders uses North American Douglas fir for framing. Possibly 10 builders would use some NZ Douglas fir for lintels (70 x 90mm) or bottom plates or beams of (72 x 247mm) untreated. We do not sell (100 x 100) 4 x 4 Douglas fir posts for exterior use. Treated and primed Radiata pine posts (88 x 88) are used and placed in the ground and secured with quick drying concrete. Builders are doing this to save stirrup placement”. This same wholesaler, who ten years ago handled huge volumes of Douglas fir scantling for another company, outlined the increasing use of Engineered Wood Products in place of solid Douglas fir floor joists. One contributing reason for this he suggested, is the 7 year structural warranty that a builder is obligated to give. A frame designed using Engineered Wood Products, the wholesaler pointed out, gives the builder a level of confidence as the EWP components are specified in a plan signed off by an engineer. Engineered Wood Products Three products make up the bulk of this market: I Beams, LVL and Open Web Trusses. I beam joists consist of top and bottom flanges of solid timber or LVL with the web fabricated from plywood, OSB or other product. LVL are Laminated Veneer Lumber (veneer grain all runs in the same longitudinal direction). Open Web Trusses consist of top and bottom flanges of timber with steel component webbing. In residential timber framed construction the ratio of volumes used in these Engineered Wood Products are in the range of 75% I joists and the balance LVL and Open Web Trusses. I joists are used in floor joist applications replacing previously specified solid Douglas fir scanting in end sections of (50 x 150,200,250,300mm) 2 x 6, 2 x 8, 2 x 10, 2 x 12. An approximate price comparison: Douglas fir in an F7 grade would be around the $400 m3 mark and LVL in the A$1200 m3 range. 4 x 3 Douglas fir is about half the price of LVL designed for formwork (100 x 75 nominal)

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Steel framing Steel framing holds a share of the market in commercial buildings, sheds and warehouses. In residential buildings, steel framing has declined as the cost of steel has risen due to current raw material demand from Asia. In the past, steel framing may have achieved upwards of 10 to 15% share of the framing market. Douglas fir glu-laminated beams Douglas fir glu-laminated beams are imported into Australia in small quantities. The glulam beams are often used for their aesthetic features or in commercial or residential applications requiring long or curved beams. This is now a small boutique market. New Zealand grown Radiata pine and Douglas fir began to arrive in significant quantities in the 1970’s. Throughout the 1980’s locally produced Radiata pine and New Zealand grown Radiata began to displace North American west coast Douglas fir for framing. Present day market for Douglas fir Most builders agree that Douglas fir scantling is an excellent framing timber. The choice of framing timber basically comes down to price, structural performance, builder preference and availability. Douglas-fir has many advantages. It is stiff, dimensionally stable, high strength to weight ratio, contains no spiral grain, exhibits natural moisture resistance and is sustainably managed. A market for Douglas fir exists for renovations, additions and extensions.

Cost comparison of 2 x 4 (100 x 50) structural framing per A$ m3 FIS Jan 2007 Aug 2007

Canadian Douglas fir 2x4 green R/H

A$445 m³ FIS A$465 m³ FIS

Radiata pine KD 100x50 (90x45 finish) MGP 10

A$365 m³ FIS A$395 m³ FIS

NZ Douglas-fir F5 green 100x50

A$420 m³ FIS A$420 m³ FIS

North Coast Hardwood F11 Sawn

A$730 m³ FIS

Explanation: A$ /m3 FIS- price per cubic metre delivered into yard (Free In Store) R/H – Rougher Headed – rough texture moulded to bring cross section to even size

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Table 2: Volume of Douglas fir imported into Australia 1980 - 20067

Douglas fir volumes imported into Australia

Year North American Douglas fir³ New Zealand Douglas fir1¹

NZ Radiata pine² (for comparison)

1980 92,000 m³ 499,000 m³ 1981 59,000 m³ 1982 51,000 m³ 1983 55,000 m³ 1984 56,000 m³ 1985 64,000 m³ 1986 47,000 m³ 1987 57,000 m³ 1988 783,007 m³ 348mm fbm 67,000 m³ 358,000 m³ 1989 729,000 m³ 324mm fbm 66,000 m³ 1990 522,000 m³ 232mm fbm 77,000 m³ 1991 535,000 m³ 238mm fbm 85,000 m³ 1992‘ 427,600 m³ 190mm fbm 82,000 m³ 1993 351,000 m³ 156mm fbm 30,000 m³ 1994 227,200 m³ 101mm fbm 38,000 m³ 1995 272,300 m³ 121mm fbm 38,000 m³ 989,000 m³ 1996 231,700 m³ 103mm fbm 34,000 m³ 1997 209,300 m³ 93mm fbm 29,000 m³ 1998 135,000 m³ 60mm fbm 43,000 m³ 1999 144,000 m³ 64mm fbm 39,000 m³ 2000 141,700 m³ 63mm fbm 28,000 m³ 1,405,000 m³ 2001 65,300 m³ 29mm fbm 41,000 m³ 2002 78,800 m³ 35mm fbm 21,000 m³ 2003 69,800 m³ 31mm fbm 18,000 m³ 2004 55,000 m³ 25mm fbm 43,000 m³ 168,000 m³ 2005 56,300 m³ 25mm fbm 28,000 m³ 153,000 m³ 2006 37,000 m³ 17mm fbm 24,000 m³ est. 127,000 m³ 2007 1These figures (in red are total exports of Douglas fir) are from New Zealand (Statistics for years ended 31 December). 2These figures are (in blue are total exports of Radiata pine) from New Zealand (Statistics for years ended 31 December).

7 Table prepared by Forestry Statistics Section, Policy Innovation & Research Group, Ministry of Agriculture and Forestry. (These are exports to all destinations) Source: Statistics New Zealand, Overseas Trade. INFOS database, Statistics New Zealand. 3 Sources: ABARE, Cascadia Forest Products, ATIF

15

New Zealand Douglas-fir8 The New Zealand Douglas-fir Association surveyed builders about the merits of Douglas-fir. Under the following headings are statements made by builders: Regarding stability: “saves you time replacing studs and gives you reliability” “With Pine we may have to replace anywhere up to 20 to 25 studs which costs time and money…” Moisture resistance: “We use Douglas-fir where we can. It doesn’t soak up water like a sponge and it will dry on site in two weeks” Strength and Stiffness: “Douglas-fir is well suited for structural beams, trusses and roof framing” In New Zealand, Douglas-fir is the second most planted forestry species after Radiata pine. With around 112,000 ha of Douglas-fir plantations, New Zealand is the third largest grower after France and Germany, outside of the Pacific Northwest. In the New Zealand document entitled, “NFED National regional wood supply forests 2000, New Zealand Douglas fir and Radiata pine volumes are forecast from 2000 to 2040.

In 2020 Radiata pine volumes 32 million m³

Douglas-fir volumes 980,000 m³

In 2030 Radiata pine volumes 32 million m³

Douglas-fir volumes 1.2 million m³

In 2040 Radiata pine volumes 32 million m³

Douglas-fir volumes 1.7 million m³

8 NZ Douglas-fir brochure (www.douglasfir.co.nz)

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PART 5 Western red cedar Over the decades, designers, manufacturers and builders have chosen western red cedar WRC for its unique properties. However, from around 1988, WRC has experienced a fall in demand.

Table 3. WRC imported into Australia from Canada9

1988 97,875 m³ 43.5mm fbm 1989 83,700 m³ 37.2mm fbm 1990 83,250 m³ 37.0mm fbm 1991 58,500 m³ 26.0mm fbm 1992 81,000 m³ 36.0mm fbm 1993 67,500 m³ 30.0mm fbm 1994 72,000 m³ 33.0nn fbm 1995 69,076 m³ 32.0mm fbm 1996 65,925 m³ 29.3mm fbm 1997 69,076 m³ 30.7mm fbm 1998 52,425 m³ 23.3mm fbm 1999 66,825 m³ 29.7mm fbm 2000 69,526 m³ 30.9mm fbm 2001 45,675 m³ 20.3mm fbm 2002 63,451 m³ 28.2mm fbm 2003 51,751 m³ 23.0mm fbm 2004 49,275 m³ 21.9mm fbm 2005 46,125 m³ 20.5mm fbm 2006 53,100 m³ 23.6mm fbm 2007 est. 54,225 m³ 24.1mm fbm

Table 4. Value of western red cedar imported from North America11

2002-03 $Aus ‘000

2003-04 $Aus ‘000

2004-05 $Aus ‘000

Source Canada 64,025 46,188 44,425 USA & other 903 189 255 Total 64,928 46,377 44,680

9 Sources: Stats Canada, Hunter Consulting International Inc. 2007, MB 11 Source: ABS, International Trade, Australia, cat no 5465.0, Canberra

17

Western red cedar (continued) Table 5. Western red cedar import destinations10 2002-03 2003-04 2004-05 New South Wales 19,600 m³ 16,000 m³ 10,900 m³ Victoria 27,700 m³ 23,800 m³ 25,200 m³ Queensland 14,000 m³ 10,700 m³ 13,800 m³ South Australia 3,400 m³ 2,700 m³ 2,600 m³ Western Australia 2,700 m³ 1,000 m³ 1,400 m³ Tasmania 0 0 0 Northern Territory 0 0 0 Total

67,600 m³

54,100 m³

53,800 m³

Table 6. Estimated current uses of western red cedar

40% Panelling, cladding, spa surrounds, screening 35% Joinery (windows, doors) 13% Blinds & shutters 10% Knotty grade (bevel siding, pergola, outdoor structures) 2% Garage doors

10 ABS Imports of rough sawn coniferous sawnwood International Trade. Cat number 5465.0

Current uses of Western Red Cedar

Panelling, Cladding,Spa,

Screening40%

Joinery (Windows & Doors)35%

Blinds & Shutters13%

Knotty Grade- Bevel Siding, Pergola

10%

Garage Doors2%

Panelling, Cladding,Spa,Screening

Joinery (Windows & Doors)

Blinds & Shutters

Knotty Grade- Bevel Siding,Pergola

Garage Doors

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Knotty grade cedar One of the areas that the scope of this report was to cover was to investigate producing a set of span tables to be used in the design and construction of various outdoor structures in Select grades of tight knotty cedar. This information is commercially available in book form entitled,” The Australian Decks and Pergolas Construction Manual”. It was written and published in Australia by Allan Staines and may be purchased from the NSW TDA and the South Australia TDA. The book has been written with input and guidance from Timber Queensland and New South Wales Timber Development Association. The manual is full of designs and span tables to use in building structures such as decks and pergolas. The manual, as pointed out by the author, is a guide only and is not part of a statutory building code. Local relevant building by-laws must be consulted. For details on purchasing the book please refer to the reference section of this report.

Large section beams in tight knot grade western red cedar.

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Table 7. British Columbia Lumber Production 2005 by species13 Hem - fir

3,070,000 m³ 1,299 mmfbm 7.5 %

Western red cedar 1,880,000 m³ 794 mmfbm 4.6%

Spruce-Pine-Fir (SPF) 33,250,000 m³ 14,068 mmfbm 81.0%

Douglas fir / Larch 2,591,000 m³ 1,096 mmfbm 6.3%

Yellow Cedar 177,000 m³ 75 mmfbm 0.4%

Total

40,968,000 m³

17,381 mmfbm

100_%

A brief explanation of the above table: Hem- fir is a species mix consisting of (Western Hemlock, Amabilis fir, Grand fir and Alpine fir). These fir are Abies, a different genus to Douglas fir (Pseudotsuga). In the interior of the province of British Columbia, Douglas fir grows in the same stands as Larch. Larch does not grow in the coastal forest. Spruce-Pine-Fir (SPF) is a species mix found in the interior and not on the coast. 13 Source: Statistics Canada Catalogue 35-003-XIB

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Canadian exports of western red cedar Table 8. Global Destinations of western red cedar exported from Canada Source: Stats Canada – Cedar Lumber + Cedar Siding (as of June 2007) Volume mmfbm Country 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2007e Inc/Dec Belgium 16.8 15.1 12.2 14.6 7.5 6.6 7.9 7.7 8.5 9.8 1.1 12.5 28.0% Denmark 2.3 2.6 1.8 1.5 1.1 1.1 0.9 0.6 0.9 0.6 1.9 3.9 507.5% France 8.5 8.4 6.1 8.2 5.9 6.8 6.1 8.3 9.3 10.5 3.8 7.6 -27.9% Germany 5.0 3.7 3.6 3.0 2.2 1.8 1.2 2.0 2.1 2.5 1.6 3.1 27.1% Ireland 0.1 0.2 0.3 0.8 1.1 1.2 1.2 1.6 2.7 5.4 1.7 3.4 -36.5% Italy 1.0 1.5 1.3 0.8 0.7 1.0 0.6 0.7 0.7 1.0 0.4 0.8 -19.5% Netherlands 6.7 6.3 6.4 11.4 7.3 9.7 11.9 13.8 10.7 12.2 6.9 13.7 12.7% UK 6.6 6.6 7.6 12.4 10.2 11.0 11.4 15.5 14.7 17.2 2.2 13.4 -21.8% Total Europe 47.4 44.8 39.7 52.9 36.3 39.4 42.4 51.8 52.6 61.1 7.8 15.5 -9.6% Middle East 0.1 0.0 0.4 0.3 0.1 0.1 0.2 -149.8% Japan 53.3 41.4 32.6 39.8 28.3 24.0 28.2 27.5 23.9 37.5 10.7 21.4 -43.3% China 0.0 0.0 0.1 1.0 1.7 1.6 2.9 8.4 10.9 19.7 13.6 27.1 38.2% Korea 1.3 0.3 0.4 1.1 1.1 2.1 1.8 2.2 3.8 6.6 2.6 5.3 -19.5% Taiwan 1.9 1.3 1.7 2.9 1.4 1.3 1.2 2.3 1.1 1.9 0.9 1.9 -1.4% Other Asia 1.2 2.6 1.6 1.3 0.2 0.2 0.3 60.5% Total Asia 56.5 43.0 34.9 44.9 32.5 30.1 36.8 42.1 41.0 65.9 28.0 56.1 -14.9% Australia 30.7 23.3 29.7 30.9 20.3 28.2 23.0 21.9 20.5 23.6 12.1 24.1 2.0% New Zealand 8.8 6.2 5.7 7.1 6.1 6.3 7.0 10.3 8.6 8.8 3.5 7.1 -19.4% Total Oceania 39.5 29.5 35.4 38.1 26.4 34.4 30.0 32.2 29.1 32.4 15.6 31.2 -3.8% Total Offshore Shipments

143.3

117.3

110.0

135.8

95.2

104.3

109.6

127.2

123.3

159.6

74.9

149.9

-6.1%

United States 672.0 570.2 653.3 766.0 726.6 691.8 572.3 666.3 672.1 722.2 294.0 587.1 -18.6% Total Export Shipments

815.3

687.5

763.313

901.804

821.816

796.074

681.946

793.523

795.335

881.788

368.9

737.8

-16.3%

Table prepared by Hunter Consulting, Vancouver, B.C

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PART 6 Survey results – western red cedar The following are results for western red cedar from Questionnaire A of the on-line survey. Questionnaire A was designed for the Design and Build sector which included the following professions: Architect, Building Designer, Specifier, Interior Designer, Builder, Engineer, Carpenter, Tradesman. For brevity this group will be referred to as the Architect/Designer/Builder category.

• When the Architect/Designer/Builder category was asked to rate the information available for western red cedar the answer was “Satisfactory”.

• IMQ 17/18. Sixty seven per cent (67%) of Architect/Designer/Builder category said

they have used or specified western red cedar in a building project in the last two years. The most popular applications were: 1. Windows - 26% 2. Doors - 18% 3. Exterior cladding - 16% 4. Interior panelling - 9 % 5. Blinds & shutters - 8% 6. Shade or privacy screens – 7% 7. Gates - 5% 8. Decking – 4% 9. Fascia – 3% 10. Pergolas – 3% 11. Exterior seating and sauna – 3% 12. Shake & shingle roof – 0.5%

• IMQ 20. When the Architect/Designer/Builder category were asked why they chose

western red cedar the replies were: Good looks and aesthetically pleasing -33% Natural Durability – 27% Stable 14% Easy to paint or stain -10% Sustainably managed (a ‘green’ building product) – 8% Easy to source – 5%

• When the Architect/Designer/Builder category was asked why they do not use

western red cedar they replied: 1. Finishing and maintenance questions – 14% 2. Price – 13% 3. Unsure of sizes and grades available – 12% 4. Environmental sustainability questions – 11% 5. More technical information needed – 9% 6. Lack of design examples or ideas – 8% 7. Not in fashion – 7% 8. Availability of information regarding species use – 8% 9. Lack of span tables – 6% 10. Unsure where to source – 5% 11. Unsure of fixing and detailing – 5%

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12. Client choice, structural durability, not specified for project – 3% • When the Architect/Designer/Builder category was asked which of the Websites

pertaining to western red cedar are they familiar with: (36 responses to this question) 1. Western Red Cedar Export Association – 61% 2. Western Red Cedar Lumber Association - 28% 3. Cedar Shake and shingle Bureau – 11%

• When the Architect/Designer/Builder category was asked if they were aware of

WRC Designers Handbook available as a download only two people out of 117 responses to this question answered yes.

• When the Architect/Designer/Builder category was asked if they were aware of

the on-line Cedar school only one person out of 117 responses to this question answered yes.

The following are results from Questionnaire B of the on-line survey. Questionnaire B was designed for the Supplier, Manufacturer, and Consumer which includes the following occupations: Timber Importers, Timber wholesalers, Merchants, Joiners, Manufacturers and Consumers. For brevity this group will be referred to as Importer, Wholesaler, Merchant category.

• When the Importer, Wholesaler, Merchant category was asked to rate the information available for western red cedar the answer was “Satisfactory”.

• Fifty-nine per cent (59%) of the Importer, Wholesaler, Merchant category said

they have used or recommended western red cedar in a building project in the last two years. The most popular applications were: Windows - 21% Doors – 15% Interior Panelling - 13% Shade or privacy screens -8% Fascia - 4% Exterior cladding - 13%

• When asked if timber reps were generally knowledgeable about Douglas fir or

western red cedar the average response was “Less than satisfactory” (2.9 on a scale of 1 to 8)

• Sixty-eight percent (68%) Importers, Wholesalers, Merchants would recommend

WRC Select Tight Knot grade for outdoor or backyard construction

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Further survey results – additional information The following are results for western red cedar from Questionnaire A of the on-line survey. Questionnaire A was designed for the Design and Build sector which included the following professions: Architect, Building Designer, Specifier, Interior Designer, Builder, Engineer, Carpenter, Tradesman. For brevity this group will be referred to as Architect/Designer/Builder category. Information sources ADQ7 The Architect/Designer/Builder category was asked what magazines they

read: 1. Building Product News – 26% 2. Architectural Product News - 22% 3. Building Connection - 15% 4. Architecture Australia – 13% 5. Artichoke – 8 % 6. Monument – 7%

• The 2003 Sweeney Research project (commissioned by Architectural Media Pty

Ltd)11, found:

The top ten publications “Always Read” by the 300 architects surveyed: Architectural Product News 45% Architecture Australia 43% Building Product News 34% InfoLink Architectural 27% BCME 26% Houses 22% Architectural Review Australia 17% Monument 9% Indesign 5% Inside 5% ADQ 8. The Architect/Designer/Builder category was asked which of the following

Web sites were they familiar with: 1. TDA (Timber Development Association) – 43% 2. Forest & Wood Products Research & Development Corp. - 30% 3. TABMA (Timber and Building Materials Assn) – 17% 4. TRADAC (Timber Queensland) – 10%

11 Source: Survey of Architect’s Magazine and Journal Readership 2004. Study 13850, by Sweeney Research Pty Ltd., Albert Park, Victoria.

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• ADQ 12. How many building or trade shows have you Architect/Designer/Builder category attended in the past 2 years? 1. 37% attended 2 shows 2. 16% did not attend any 3. 12% attended 4 shows 4. 12% attended 1 show

• ADQ 13. The favourite Trade Shows (Architects/Designers/Builders):

1. Designbuild - 33% 2. DesignEx- Form & Function – 30% 3. HIA Home show – 9% 4. Working with Wood show - 8% 5. Building & Home Improvement show - 4%

• ADQ 14. Architects/Designers/Builders rated the trade shows as ‘good value’

overall

• ADQ 15. Architects/Designers/Builders Why did they not attend trade shows? 1. Too much time involved - 35%, 2. Learn enough from other sources - 30%, 3. Too far away -11%

• ADQ 31 & IM. When asked if they recalled advertisements-print, TV, radio, on-line

over the past year. Of the 98 people that responded to this question 85 people could recall an ad for western red cedar but only 13 people could remember an ad for Douglas fir.

• ADQ 32 Where do Architects/Designers/Builders mostly learn about new

building products? 1. Magazines – 40% 2. Internet – 27% 3. Trade/Professional Associations – 15% 4. Timber/Building Supply Reps - 9% 5. Colleagues – 7%

• ADQ 34. Sixty percent (60%) Architects/Designers/Builders said that they have

been asked by their clients about sustainability issues or wood certification more often than 2 years ago.

• ADQ 35. Architect/Designer/Builder category felt timber knowledge seminars

were a very good idea.

• ADQ 36. Which seminar topics would interest you Architect/Designer/Builder category? 1. Project examples – design and explanation – 20% 2. Environmental Sustainability - 19% 3. Finishing and maintenance - 17% 4. Fixing, detailing - 15% 5. General info on WRC and Douglas fir - 15% 6. Engineering details & technical info- 13% 7. Appropriate use - 1%

Survey Results – western red cedar

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Information sources (continued) The following are results from Questionnaire B. Questionnaire B was designed for the Supplier, Manufacturer, and Consumer which includes the following occupations: Timber Importers, Timber wholesalers, Merchants, Joiners, Manufacturers and Consumers. For brevity this group will be referred to as Importer, Wholesaler, Merchant category.

• IMQ5. The Importer, Wholesaler, Merchant category were asked which magazines they read:

1. Timber Trader – 32% 2. House and Garden - 22% 3. Building Product News - 18% 4. Home beautiful -13% 5. Architectural Product News – 9%

• IMQ6. Which of the following websites are the Importer, Wholesaler, Merchant

category familiar with? 1. TDA (Timber Development Association) - 26% 2. TABMA (Timber and Building Materials Association) - 22% 3. Forest & Wood Products Research & Development Corporation - 21% 4. TRADAC (Timber Queensland) - 8% 5. Domestic suppliers of Douglas fir (Oregon) and WRC? - 4% 6. None of the above 20%

• IMQ9. How many building or trade shows have the Importer, Wholesaler, Merchant

category attended in the past 2 years? 1. 33% did not attend any show 2. 30% attended 2 shows 3. 13% attended 4 shows 4. 8% attended 1 show 5. 7% attended 3 shows

• IMQ10. Favourite trade shows of the Importer, Wholesaler, Merchant category: 1. HIA Home show - 17% 2. Designbuild - 17% 3. Building & Home Improvement show - 10% 4. Working with Wood show - 9%

• IMQ18. Importers, Wholesalers, Merchants category were familiar with the Cedar

websites: • Out of 146 responses to this question 1. 25% knew of WRCEA 2. 12% knew of WRCLA 3. 1.4% knew of Cedar Shake and Shingle Bureau 4. 61% were not familiar with any of the websites

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• IMQ29. Where do Importers, Wholesalers, Merchants mostly learn about new building products?

1. Magazines - 34.0% 2. Timber/Building Supply Reps - 26% 3. Internet - 23% 4. Trade/Professional Associations -13%

• IMQ31 Does your company ( Importers, Wholesalers, Merchants category) have a

website? 60% said yes

• IMQ33. How valuable would timber knowledge seminars be to you Importers,

Wholesalers, Merchants? 25% said seminars would be somewhat valuable with 8 % saying invaluable. Weighted average indicated “good” value.

• IMQ34. Which seminar topics would interest Importers, Wholesalers, Merchants?

1. General information on WRC and Douglas fir – 26% 2. Environmental Sustainability - 22% 3. Finishing and maintenance - 16% 4. Project examples - design, development and explanation 14% 5. Engineering details and technical information – 11% 6. Fixing, detailing - 10%

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Western red cedar and Douglas fir market survey – respondent quotes From the category: (Timber Importer, Wholesaler, Merchant, Joiner, Manufacturer, Consumer, Home Owner) At the end of the on-line survey the following open ended question was asked: Is there anything else that could be done by Douglas fir or western red cedar suppliers or trade associations to assist you? The following are statements from the survey respondents: “make sure its eco friendly and sustainable” “go to trade shows with new ideas of use” “How to Guides and FAQ’s” “Weekend newspapers- information briefs” “Timber Trade Show demonstrating different clear finishes/stains to correctly maintain the product. “ “WRC - Work more closely with window/door manufacturers to create better design criteria and product information about the features and benefits of using WRC compared to other timber or non timber alternatives” “Advertising to remind Builders etc of how Douglas fir has been used in the past “ “the industry needs to put more effort and money into the promotion of timber, outlining the benefits, the sustainability of wood, and the warmth timber can bring to a home.” “Douglas fir is an excellent product. Best species for 4x4 posts. Excellent for framing- stays straight-no spiral grain.” “articles in weekend papers talking about where the wood can be used and how it can be used. Cedar is a great species. Beautiful and stays straight”

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Western red cedar and Douglas fir market survey – text analysis From the category: (Timber Importer, Wholesaler, Merchant, Joiner, Manufacturer, Consumer, Home Owner) What are your ideas about growing the market for western red cedar or Douglas fir? “Advertising through “home type” magazines & in women’s magazines “Sell the reforestation programs to the public” “By promoting timber as the most environmentally friendly building product on the planet we push the superior environmental sustainable characteristics of WRC” “We need to promote WRC better and let people out there know what a great product it is and its unique properties. Wholesalers and importers need to work together as one instead of against each other and get this timber specified with designers etc.” “education, promotion, tech data” “Both species have individual properties that can be used in the building process but both have suffered due to inappropriate use and not enough importance placed on appropriate coatings from both an aesthetic and maintenance perspective. Engineered products are perceived as superior because of historical misuse and a lack of emphasis on appropriate coatings. We would all do timber a favour if we did this. Our enemy is not other timber products but concrete, bricks, PVC, plastics etc” “weekend newspapers- write information briefs” “Increased product knowledge highlighting the features and benefits of both species. This info should be relayed to user market with tech, data sheets, glossy ideas, and seminars ( i.e. face to face contact)” “Cedar is being used less in window manufacturing because of length availability and cost. Oregon is losing ground because it has been used in incorrect application in the past. (it has been used in structural weather exposed applications and has failed) Because of its natural beauty Oregon is perfect in visual applications that are not weather exposed. E.g. a covered pergola. If these applications can be marketed with photographs in trade magazines, home beautiful magazines and encouraged to be designed by architects I feel that this may help the sales of Oregon. “ “The end users need to be informed on all aspects about the species, including the comparable advantages over alternative products in application. Designers and end users are more in tune with environmental issues; therefore they also need data that promotes the product in design over alternatives. I don’t think the Large Hardware stores have helped Cedar or Doug Fir within the Trade market, for the reason being that the staff at the front trade counter within the store level have very little technical or product availability understanding. How do you measure lost sales or potential growth? They can order non stock lines in as specials, but for this to happen the staff need info that is easy to follow. Trade store sales reps at the Merchant level play a huge part in selling a product. Product training would help. For growth within the market place a Trade show or conference is a possible start. The show could identify and target clients such as designers and architects. “

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“Get architects to specify.”

“Douglas fir. Definite durability concerns, due to lack of proper installation procedures”

“Sustainability, thermal qualities for energy, durability “

“more information should be available to the general public. Especially in the areas of sustainability, environmental impacts, logging processes etc.”

“Increase the advertising, get closer to the specifiers and architects to keep the products at the front of mind, explain the benefits. The big boxes will need to keep improving the knowledge base of their employees.”

“TDA and TABMA need to get more information out to public. Maybe seminars and info nights.”

“more money for adverts, builders nights with prizes”

From the category: (Architect, Building Designer, Specifier, Interior Designer, Builder, Engineer, Carpenter or other Tradesman)

The question on the survey was:

Is there anything else that could be done by Douglas fir or western red cedar suppliers or manufacturers to assist you as a building professional?

“Samples of the products showing different finishes and the natural finish. “

“Would be good to have some pricing examples on the web too. ”

“More integrated info presentation ranging from sustainability to applications and maintenance including strength and weakness analysis/reviews.”

“Road shows - tradeshows in regional areas - Wagga, Albury, Benalla”

“Perhaps more design & engineering information online”

“Quality and mechanical strength should be enhanced.”

“Suitability for external use such as decks “

“Provide details rating these products against their competition for comparison in all areas of design, sustainability, longevity and maintenance.”

“Identifying were the product is really suitable to be used and how it can be maintained in a practical manner”

“More engagement with BDANSW Road shows and at BDANSW State conferences so that there is more information about the products and their applications in today’s market.”

“Detail external uses and longevity in sub-tropical conditions”

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From the category: (Architect, Building Designer, Specifier, Interior Designer, Builder, Engineer, Carpenter or other Tradesman) At the conclusion of the survey the question was asked, ADQ38 Any further comments? “More detailed information needed for detailing and up to date sustainability info (no greenwash - just the facts)” “Should have more coverage in magazine like InfoLink and BPN” “Seminars take one away from the work place and are usually padded out with promo information. A good web page and or phone hot line I feel would get the latest and quickest response.” “More Technical information” “Modern facades are much more articulated than before with a number of cladding materials being used simultaneously. Why not work the products in with other cladding systems to increase textural variety and visual richness?”. “More face to face contact required with Designers”.

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PART 7 Timber’s environmental credentials

“Timber products are some of the most environmentally – friendly products available to us. They score the environmental trifecta – they are natural, renewable and biodegradable. It takes little more than sunlight, water and nutrients from the soil, to produce timber products. ...Importantly, forests lock up carbon from the atmosphere.”

These were the opening remarks of the Honourable Senator Eric Abetz, the Australian Government Minister for Fisheries, Forestry and Conservation at an ABARE conference held in Canberra in March 2007. We in the timber industry must assemble the facts about the environmentally friendly nature of wood and tell the story at every opportunity. Too many inaccurate messages are circulating out in the general community about trees, forestry, and the environment. Wood is the world’s most abundant renewable resource. It’s recyclable, biodegradable and sustainable over the long term. Timber is one of mankind’s most used building materials in applications as diverse as window frames to wharves. It has been used for centuries, probably millennia.

Forests, Wood and Australia’s Carbon Balance In a recent publication by the Forest and Wood Products Research and Development Corporation, entitled “Forests, Wood and Australia’s Carbon Balance”12, readers are offered an opportunity to learn about the all important Carbon Cycle. A couple of quotes from the publication:

“Growing trees absorb the major greenhouse gas carbon dioxide from the atmosphere through photosynthesis and store the carbon. About half the dry-weight of a tree is carbon. One tonne of carbon represent 3.67 tonnes of carbon dioxide.”

Or the following on the opening page:

”There are ways to recognize better the greenhouse credentials of forests and wood products. These include burning more sustainably harvested wood and waste for energy, extending emissions trading schemes to recognize carbon stored in wood, and making full life cycle assessments of building materials.”

A publication well recommended to educate and inform timber industry people and the general public.

12 This publication is available from FWPRDC as a booklet or is downloadable: http://www.plantations2020.com.au/assets/acrobat/Forests,Wood&CarbonBalance.pdf

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Energy Fossil fuel is not an inexhaustible resource. It is finite. It is not renewable. We have a challenge on this planet to supply an ever growing global population with sufficient energy to enable industry and people to live and flourish. Of the multitude of energy sources to be used in the future, using sustainably grown forest biomass and forestry by-products for fuel to be burnt to generate energy will assist in displacing the use of fossil fuels. Carbon stored in wood is released back to the atmosphere only when the wood or wood product decays or is burnt. Table 9. Comparison Chart of energy used in production13

Energy used in Production (MJ/m3)

Carbon Released (kg/m3)

Carbon stored (kg/m3)

Timber 750 15 250

Steel 266,000 5320 0

Concrete 4800 120 0

Aluminium 1,100,000 22,000 0

Timber is a renewable resource able to be produced on a sustained continuous basis with minimal adverse effects on soil and water. Timber’s environmental credentials are outstanding. Put simply, timber is renewable, replantable and sustainable when properly managed. Simple messages are often the most effective for the greatest number of people. For example:

Trees “breathe in” carbon dioxide, “breathe out” oxygen. The carbon dioxide is converted to wood fibre. Wood fibre is made of carbon. The tree stores the carbon in an efficient vertical cylinder until harvested and processed. When processed into framing for example, the carbon is stored in house frames for many decades. At the end of the building life the wood can be recycled to be reused or disposed of - burning wood for energy or heat saves fossil fuel or if buried gradually decomposes slowly releasing carbon and transforms back to soil organics.

The above is an over simplification of a complex life cycle of a tree in a forest that is planted, tended, protected, measured, inventoried, mapped, assessed, harvested, transported, assessed again, sawn, graded, packaged, sold to a merchant, sold to a builder, used in the

13 Source: Plantation pine framing alliance

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construction of a frame of a house, lived in for decades, deconstructed or demolished, recycled into other products, buried or burnt for heat or energy conversion. During this complete cycle the carbon sequestered from the atmosphere is held intact until slowly released in a disposal site.

Oxygen A young vigorous forest is a highly effective oxygen pump. Oxygen is a by product of the photosynthetic process and in a reforested area or in a juvenile plantation the trees are consuming or sequestering the most carbon dioxide of their lifetimes. Carbon storage by the trees continues until the forest reaches a steady state. (mature forest). The soil and forests of the world store more than one trillion tonnes of carbon. All in the forest industry need to be informed about environmental issues and offer advice to the market and consumers in regards to Carbon balance.

Environmental credentials of supplying countries

New Zealand New Zealand’s Douglas-fir forests are managed to encourage biological diversity, renewable timber resources and respect for the complex environment. The New Zealand government estimates that 100 million tonnes of carbon dioxide will be absorbed in New Zealand in Kyoto’s first Commitment Period (CP1) by forests planted since 1990. New Zealand’s plantations will basically cancel out the increase in New Zealand’s automobile emissions in the first Commitment Period (CP1). On the NZ Douglas fir website Life Cycle Assessment (LCA) was discussed. LCA looks more carefully at the long term impacts of products. “LCA objectively measures the impact of material choices. Wood products are clear winners when LCA measures are used.”14

British Columbia – Forestry and Sustainability In British Columbia, the western most Canadian province bordering the Pacific Ocean, ninety-four percent of the land is publicly owned. Forest covers almost two thirds of British Columbia (60 million hectares) (149 million acres). More than sixty percent of the forest land is protected, inoperable, or reserved from harvesting to protect habitat or other ecological values. BC’s park system covers more than 12 million hectares (30 million acres). Protected forests are a reservoir for biological diversity and a benchmark of undisturbed land for future study and comparison

Sustainable Harvesting in BC The forest industry has been harvesting throughout British Columbia for more than 125 years and still more than 80 percent of the natural forest remains untouched. Only 1/3 of 1 percent of the forest in BC is harvested each year.

14 Source: New Zealand Douglas-fir Association http://www.douglasfir.co.nz/

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Approximately 3 seedlings are planted for every tree cut to supplement natural regeneration. The coastal area of BC now has one of the largest percentages of protected areas of any jurisdiction in the world. (Coastal Clarion, Volume 2, Issue 1, March 2006).

Certification Systems Most of the major forest companies operating in British Columbia have achieved or are working to achieve certification under one or more certification systems including Canadian Standards Association (CSA) (prominent in the BC coastal softwood species), Sustainable Forestry Initiative (SFI), or Forest Stewardship Council (FSC). Of the timber harvested in BC about 70% is sourced from operations that include ISO’s (ISO 140001) Environmental Management System Standards. British Columbia in Canada has more than 39 million hectares certified to international standards for sustainability.15 Table 10. SFM Certification Status in Canada—December 200616 Standard Area Certified

(hectares) (acres)

Canada’s National Sustainable Forest Management Standard (CAN/CSA-Z809) (CSA)

73,413,005.00 181,330,122

Forest Stewardship Council ( FSC) 19,617,175.00 48,454,422

Sustainable Forestry Initiative Program (SFI) 31,352,562.00 77,440,828

Total Certified:

123,752,742

305,669,273

The 2005-2006 report, The State of Canada’s Forest, states that of the 301 million hectares of forest land in Canada, 143 million hectares are subject to forest management. Of these 143million hectares, 123.75 million hectares are certified. About one tenth (1/10) of the world’s production forests are certified. Canada accounts for half of the certifications recognized by the global Programme for the Endorsement of Forest Certification Schemes (PEFC) and almost one quarter of FSC certification worldwide. Canada has the largest area of 3rd-party independently certified forests (CSA, FSC, and SFI) in the world. FPAC members account for about 80% of all certifications in Canada.

15 2007/2008 Investment Strategy. Forestry Innovation Investment Ltd. Published November, 2006. 16 Source: British Columbia SFM December 19, 2006 Canadian Sustainable Forestry Certification Coalition www.CertificationCanada.org Prepared by Abusow International Ltd. http://www.certificationcanada.org/

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USA Forest Sustainability The US Forest Service and US Western Wood Products Association publish extensive literature on the subject of sustainability and certification17. From the Western Wood Products Association (WWPA) website came the following article:

‘Forest Harvesting and Renewability’ “There is a popular misconception that America’s forests are disappearing and that we are running out of trees. The facts, however, show just the opposite. Forest growth in the U.S. has exceeded harvest continually since the 1940s. According to the Forest Service, the U.S. forest inventory has actually increased by 39 percent since 1952. The U.S. is the leader in reforesting; planting some 2 billion new trees a year. The forest products industry is responsible for 41 percent of all replanted forest acreage. As a result of these efforts, there are 10 million more acres (4 million hectares) of forestland in the U.S. today that there were 15 years ago.” The US Forest Service website published the following article on Forest Certification: Introduction “Forest certification is a system for identifying forestland that is well managed with a goal toward sustainability. In this context, sustainability includes ecological, economic, and social components. Products from certified forestland are identified by a special label. Forest certification was conceived of as a way to promote sustainable forest production. It allows landowners to let customers know how they manage their forest. It also may function as a market-based mechanism to reward superior forest management. Although there are other types of forest certification, this article deals only with third-party certification. Third-party certification is an on-the-ground evaluation of forest management conducted by an accredited certifying organization and based on accepted standards. It is similar to a financial audit of a corporation. Forest certification is a growing trend. Environmental organizations and a few companies have driven the movement toward certification. Recently, companies and landowners from all over the world have become involved. As of February 1, 2000, approximately 5.6 million acres of forestland were certified in the U.S. with over 5.1 million acres (91 percent) certified in the Northeast and Midwest. Pennsylvania has the largest certified acreage in the region (2.3 million acres) followed by Maine (1.0 million acres), New York (717,000 acres), Minnesota (585,000 acres), Wisconsin (252,000 acres) and Michigan (155,000 acres).

17 Hyperlinked Website addresses of these two organizations can be found in the appendix section of this report.

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Who oversees the certification process? The Forest Stewardship Council (FSC) is a non-governmental, international organization that accredits third-party certifiers and facilitates development of forest management standards. It was founded in 1993 “to promote environmentally responsible, socially beneficial, and economically viable management of the world’s forests.” On The US State of Washington’s Department of Natural Resources Website, Dr. Bruce Bare, Dean of the University of Washington’s College of Forest Resources, and member of the Board of Natural Resources, commented upon the Department’s certification under the SFI® program. He said, “An increasingly important hallmark of sustainable forestry is independently verified forest certification, under a rigorous system such as that provided by the Sustainable Forestry Initiative® program “

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PART 8 Housing market

Australian Housing Starts

Table 11. Australian Housing Starts

Houses Multi-Units Total

2002 112,000 58,000 170,000

2003 118,000 55,000 168,000

2004 104,000 62,000 166,000

2005 103,000 49,000 152,000

2006 103,000 48,000 151,000

2007 est. 105,000 44,000 149,000

2008 est. 112,000 46,000 158,000

2009 est. 114,000 52,000 166,000

Housing Affordability First home-buyers make up a significant proportion of the housing market, typically younger couples often with children. In recent years house prices have climbed substantially with young families now facing large mortgages in the capital cities in Australia. In an article published in The Australian May 29, 2007, “Housing Affordability hits 23-year low” the Housing Industry Australia (HIA) /Commonwealth Bank Affordability index fell 0.6 percent in the March 2007 quarter. This was 10.3 per cent lower than one year ago. HIA’s managing director, Ron Silberberg stated, “The housing affordability crisis shows all the signs of structural supply constraints; it is not part of some cyclical trend that will correct itself. This continuing decline (in housing affordability) confirms previous calls by HIA for a national response to restore housing affordability.” In the article the HIA said that its own projections showed that if the situation was not immediately addressed, housing affordability might not be restored until 2022, even in an environment of strong wages growth and low interest rates. Mortgage repayments now account for 30.7 per cent of an average first home buyer’s income, up 0.2 percentage points on the December 2006 quarter. Perth was now the least affordable capital city. Affordability was better in Adelaide and Melbourne.

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Table 12. Percentage of Income for Mortgage Percentage of household income needed to service typical monthly mortgage, 200618

Housing Affordability

0%

5%

10%

15%

20%

25%

30%

35%

40%

NSW VIC WA QLD SA ACT TAS NT Aust

Sources: REIA In a recent discussion paper by the Property Council of Australia, January 2007, the future of housing affordability in Australia was analysed and discussed. Australia was among the least affordable places in the world to buy a home. Limited land supply, the report stated, was causing land prices to accelerate ahead of construction costs. Government fees, compliance costs , taxes and infrastructure levies were also rapidly rising with the report indicating that these levies and costs can represent about a quarter to a third of the cost of a house and land package.

18 The Housing Industry Association of Australia HIA/Commonwealth Bank of Australia (CBA) Housing Affordability Index measures home purchase affordability. This is the ratio of the average household income to the qualifying income required to meet payments on a typical dwelling (expressed as an index). In calculating qualifying income, a deposit of 20 per cent with repayments equivalent to 30 percent of income is assumed using a conventional 25 year loan. An increase in the index represents an improvement in affordability. Definition: (HIA housing report September quarter 1999) Sources: REIA

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Affordability Trends Affordability in housing is normally defined as mortgage payments equalling 30% or less of household income. Table 15. Median Multiple Trend Main cities 1981-200619

Median Multiple Trend: Australia Largest Markets:1981-2006

0

1

2

3

4

5

6

7

8

9

1981 1986 1991 1996 2001 2006

Data Points at 5 Years Only

Med

ian

Mul

tiple

Sydney

Adelaide

Melbourne

Perth

Brisbane

The Median Multiple Trend in a city is the average household income times the multiple to equal the median house price.

19 The Index was at its lowest point on record in the December 2006 survey. Records have been kept since 1984. Source: 3rd Annual Demographical International Housing Affordability Survey: 2007-06-21

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The following table illustrates how Australia ranks on housing affordability on a world scale Table 14. 25 Most Unaffordable Housing Markets20 Rank Nation Market Median Multiple 1 United States Los Angeles-Orange County 11.4 2 United States San Diego, California 10.5 3 United States Honolulu 10.3 4 United States San Francisco, California 10.1 5 United States Ventura County, California 9.4 6 United States Stockton, California 8.6 7 Australia Sydney 8.5 8 United States San Jose, California 8.4 9 United Kingdom London, (GLA) 8.3 10 United Kingdom Bournemouth-Dorset 8.2 11 Australia Perth 8.0 12 United States Riverside-San Bernardino, CA 7.9 13 Canada Vancouver 7.7 14 United States Miami- West Palm Beach, FL 7.6 14 United States Modeto, CA 7.6 16 United States Cardiff 7.5 17 United Kingdom Bristol 7.3 18 United States Fresno, CA 7.2 18 United States New York, NY-NJ,-CT-PA 7.2 20 Australia Hobart 7.0 21 United Kingdom London-Exurba 6.9 23 Australia Melbourne 6.5 23 United States Sacramento, CA 6.6 23 United States Sarasota, FL 6.6 23 Canada Victoria 6.6 In the 3rd annual Demographia International Housing affordability survey a total of 159 housing markets in Australia, Ireland, United Kingdom, Canada, New Zealand and the United States were surveyed. The survey reported,” The most pervasive housing affordability crisis is in Australia, with an overall Median Multiple of (6.6). Affordability is only marginally better in New Zealand (6.0), Ireland (5.7), and the United Kingdom (5.5). On the other hand, the National Median Multiple in Canada is 3.2, indicating that housing is one-half as expensive relative to incomes as in Australia. The national Median Multiple in the United States is 3.7)”.

20 Source: 3rd Annual Demographia International Housing Affordability Survey: 2007 The Demographia International Housing Affordability Survey uses the “Median House Price to Median Household Income Multiple,” (“Median Multiple”) to establish housing affordability.

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PART 9 Future markets Projected Demographics to the year 2031 In 2005, Mr Bernard Salt, demographer with KPMG, produced a report for the Residential Development Council of Australia entitled “Australia on the Move”. Some key points outlined in the report were:

• By 2031 the population of Australia is forecast to rise by 29% to reach 24.99 million.

• To house this increase in population Australia will require 4.6 million new dwellings. (From 2001 to 2031)

• The average number of people per household is forecast by 2031 to decrease to 2.38. In 1981 it was 3.2 persons. Therefore, by 2031 for every 1000 person increase there will need to be an additional 420 dwellings.

• By about 2020 baby boomer deaths will exceed births in Australia. Immigration from this point will be the only factor to maintain population growth.

Mr Salt forecast that the markets for new net dwelling demand 2005 through to 2031 will be in capital cities across Australia: Table 16. New (net) dwelling demand: 2005 through to 2031 City / Region New (net) Dwellings Average per year Sydney 676,000 26,000 Melbourne 636,000 24,460 Brisbane 489,000 18,807 Perth 360,000 13,846 Gold Coast/Tweed 214,000 8,230 Sunshine Coast 131,000 5,038 Adelaide 113,000 4,346 Newcastle 79,000 3,038 Mandurah, WA 62,000 2,385 Canberra 56,000 2,154 Sydney is Australia’s most urbanized city. Presently, approximately 37% of Sydney’s housing stock is attached dwellings; that is, apartments, units or townhouses. This is forecast to rise to 43% by 2031. Given the forecasts, indications are that Australians may continue to favour stand alone/non-attached dwellings. As a comparison, Mr Salt notes that in the USA in the year 2000, 48% of the dwelling stock was attached, on average across the largest cities in the USA. 1To put the number of houses to be built in Australia in perspective, contrast the 150,000 dwellings per year required in Australia with an estimate from a UN report suggesting that on a global scale, because of an increase of 2 billion people wanting to live in cities around the world, that 96,000 housing units per day must be built between now and 2030. This amounts to 4000 housing units per hour. 1Friday Offcuts – 7 October 2005. NZ based e-newsletter.

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Market Outlook: April 12, 2007 – HIA article from The AGE While housing starts are expected to begin to recover in 2007-08, new construction will only begin meeting the natural growth in Australia’s population by 2010, according the HIA’s director of housing and economics, Simon Tennent. “With affordability stuck at record lows, we face another two years of below par levels of home building,” he said. Private investment in rental housing remains thirty per cent below its peak. To keep up with increases in immigration, Australia needs an extra 160,000 homes a year The HIA has been calling for a “concerted government approach to rectifying the affordability crisis. At a recent Housing Summit held in July 2007, HIA’s Managing Director, Ron Silberberg said , “Leadership, investment in infrastructure and more collaboration across the three tiers of government is essential if the crisis is to be addressed.”21

Australia towards 2020 In the report entitled, ”Scenarios for Selected Timber Markets”, by Rob de Fegely of JPManagement Consulting (Asia Pacific) Pty LTD (Jaakko Poyry) three future scenarios were discussed and analysed. Supply predictions were made using ABARE’s model of domestic timber supply. Timber consumption and lifestyles in 2020 were inherently unpredictable and thus three possible scenarios were put forward. Some strategic areas were outlined in the report’s conclusions:

• environmentally friendly products will be in demand • more medium and high density housing • increased modularisation of house construction • more engineered wood and wood composite products • a reduction in additions and renovations • more recycling of building materials • environmental certification of building materials • low maintenance building materials

In conclusion, the report recommended investment in building system technologies, timber promotion, on-going education of builders and designers and active engagement with government and regulatory authorities.

21 The Property Report July 23, 2007 www.property-report.com

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PART 10 Challenges for the species in the Australian market

Douglas fir Over the years, Douglas fir from North America has seen a gradual decline in consumption despite concerted efforts by a number of timber importers throughout Australia. There are approximately 15 timber companies importing Canadian and US Douglas fir into Australia. Volumes have declined from a high in 1988 of 783,000 m3 (348 million fbm) to 56,000 m3 imported in 2005.

Douglas fir preservative treatments Wood preservative treatment is based on two separate characteristics of the wood substrate: Penetration Retention of the chemical preservative There is marked superiority in the decay resistance of the Douglas fir heartwood with that of sapwood. Durability of the heartwood is proportional to extractives contained. Extractives in Douglas fir increase the resistance to the penetration of preservative treatments. To penetrate into the heartwood of Douglas fir a mechanical slitting process called incising is employed parallel to the grain direction. The slits increase the amount of cross section exposed to the preservative and aids in the retention of chemical preservatives. Incising however decreases wood strength by decreasing the effective cross section of the timber. Decrease in wood strength is more noticeable in smaller cross sections such as 2 x 4 or 2 x 6. Incising a 4 x 4 (100 x 100) shows little decrease in strength. Research into the use of microwave technology to make refactory timbers more permeable and improve preservative distribution has been successful. Douglas fir in North America has been pressure treated over the years using one of the following classifications. Oil-based preservatives such as pentachlorophenol and copper naphthenate. Water borne preservatives such as ACZA (Ammoniacal Copper Zinc Arsenate) CCA, ACQ (Ammoniacal Copper Quat) and ACC (Acid Copper Chromate). Creosote Solutions. All these treatments are under constant scrutiny from Environmental authorities. Chemically treated wood remains an often cost effective solution for many industrial, commercial and residential projects.

Western red cedar Building design, style and fashion has turned away from the timber look (except for timber flooring) to plain designs exhibiting painted walls and rendered exterior surfaces.

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Current world supply / demand balance has driven up prices in 2007 by upwards of 55% from the market price in 2003. A price rise has been the general trend for a range of popular joinery species sourced from Africa, South East Asia and the Pacific Islands. As a consequence of the high prices, species substitution is rife. Kiln dried Eucalypts are being used in windows and some Asian species are being utilized with the addition of an LOSP treatment. In some instances durable species such as Merbau, New Guinea Rosewood, Vitex, and Surian are being used in exposed applications. Durability Correctly designed, well constructed and maintained timber framed houses have a potential long life. The key to long life is good design to protect the house from insect attack and weather. Correct detailing, proper and well maintained surface coatings on durable species will result in buildings achieving a long life. Termites Termites are a natural component of Australia’s ecology. Risk of termite attack can be affected by many factors including soil type, building in areas where forest has recently existed or is in close proximity, age of the suburb and latitude. In Sydney, for example, it is estimated that 1 in 3 houses will be affected by termites over a buildings’ lifetime. Regardless of construction materials or frame type termites can attack any house. Local building authorities and experts should be consulted to assess risk. An appropriate termite management system should be implemented. Numerous sources of information are available on termites. For example: http://www.fwprdc.org.au/content/pdfs/PN03.1213%20survey.pdf http://www.timber.net.au/documents/downloads/Termite_handbook.pdf Bush fires In most cases of fire, buildings burn down from the inside. The contents are combustible. Resistance to fires is assisted with the maintenance of a secure, combustible free, low fuel environment around the house. The next line of defence is protecting the building from ingress of embers, sparks and radiation through openings such as doors and windows. For additional information please refer to: http://www.timber.net.au/bushfire/ Fire retardant treatment of western red cedar Forest and Wood Products Research and Development Corporation (FWPRDC) have a research project currently underway studying the fire retardant treatment of western red cedar using a fire retardant chemical process called FRX. Results from that project will be used to determine further research into fire retardant treatment of WRC joinery products and cladding. Flame-spread and smoke-developed rating “The flame rating of WRC is 67 to 73 (Class II rating) North America. (Richardson 1996) and the smoke developed classification is 98 (WRCLA 2001). Both of these are used to regulate the use of materials where potential to generate smoke or smoke control movement is important. The flame-spread rating is a measure of the rate of advance of flame along the surface of wood. Canadian and USA codes set the maximum flame-spread rating for interior wall and ceiling finishes in most buildings at 150. (National Building Codes Canada 1995) Since western red cedar has a low flame-spread rating, it will perform better than most dense softwoods which have flame-spread ratings around 100. The Canada National Building Code (1995 article 3.1.13.2) restricts the flame spread rating of walls in some occupancies to 75 or less. Western red cedar would be one of very few solid wood

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products that would be acceptable for these applications. Western red cedar has a flame spreading rate and a smoke-developed classification that are considerably below the maximum limits set by US and Canada Building Codes.”22 Challenges in the Window Industry In a report commissioned a couple of years ago for the Australian window industry it was noted that the timber industry needed to address a number of areas of dissatisfaction, namely;

• Architects reported that suppliers of joinery products need to work more closely with the design industry to develop new products and designs for the commercial and residential construction sectors.

• Joiners need to provide Architects and Building Designers with product performance data. (Energy rating was a consistent request)

• Window manufacturers need to offer consistent quality that conforms to building standards.

• Consumers were more interested in the house fittings than compliance with a 5 star rating.

Sectors of possible growth or trends in the future could include the following ideas:

Windows Cedar windows have the beauty, the natural look, the environmental credentials, and the thermal performance. The market will grow as the performance level of western red cedar windows continues to be proven. Doors Front doors in solid WRC or Douglas fir say a lot about the entrance to a home. This is a market that can be expanded. A popular trend is to have large sliding openings in walls to connect the interior and outdoor spaces in houses and commercial buildings such as restaurants, bars and resorts. Blinds and shutters Blinds and Shutters help control light, ventilation and offer a degree of privacy. WRC is not only a relatively easy wood to machine into blinds or shutters it is also an excellent surface or “canvas” on which to apply a paint or an alkyd oil base finish. Although other timber species have been used for the blades, Cedar is the most dimensionally stable and the most trouble-free. Presently the trend is to paint the western red cedar shutters, usually white. Blinds are most often left natural with a clear or semi clear finish. The blind and shutter market has been challenged by imported Asian product over the past few years. It appears from market feedback that this market has basically stabilized. Screening outdoors As building lots get smaller and townhouse developments become more plentiful, creating private spaces or screening out poor views will become more important. Screens in front

22 Source: Growth, Properties and Uses of Western Red Cedar. Forintek. No.SP-37R,

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yards give privacy from the street and cedar screening in back yards allow for spaces to be developed for different activities. Garage doors Garage doors made of WRC always present well on a street front. This application will be continue to be popular. This is an area where an engineered Cedar product would be ideal. Finger jointed, colour and grain matched or veneer overlaid then pre-coated and available in long lengths would find a ready market if the quality was first class. Western red cedar cladding and siding In the timber cladding study (a recent FWPRDC project) recently completed by the NSW Timber Development Association and P. Forsythe, a cladding trend was identified in some of the newer housing estates. The second storey was often clad in lighter weight materials. This trend lends itself to the use of WRC cladding profiles in # 2 or #4 Clear or in Select Tight Knot grades of Bevel siding or reversible Channel siding or Board and Batten. More detail on the new Cladding (Flat Line) system is available from TDA NSW. http://www.timber.net.au/newsletters/web_version/jun2007/ Spas The spa industry will nestle well into the trend of including resort-like features in back yards. Spas take up little room and this fits in with the decreasing building lot sizes. The luxury aspect of Real Cedar cladding surrounding the spa needs to be promoted by the by the spa industry to differentiate itself from cheaper imports. Saunas Saunas are a recreational feature popular overseas and are finding a growing market in Australia. WRC makes excellent seating in saunas as the Cedar, because of its unique cellular structure, does not heat up as much as many other materials and therefore is more comfortable to sit on. The pleasant odour of steamed Cedar is an added bonus. Re introduction to the use of WRC panelling into houses WRC panelling volumes have decreased over the years. Given the pastel colour schemes throughout many new homes a feature wall in WRC panelling could add interest or elegance to lounge areas or bathrooms. Similar to placing artwork, Cedar used as decorating feature can transform a room. This may be especially true in those areas adjacent to expanses of glass to take in country or landscape views. Horizontal WRC panelling may complement the view to the outdoors. Anecdotal evidence suggests that the time may be ripe to begin to promote select WRC feature walls or timber ceiling into selected upmarket project homes as a selling feature. An architect suggested that the industry should approach a builder in a display village and offer to put in a free feature wall of western red cedar in a display home to measure the reaction. Renovation market Total spending on renovations is forecast to exceed $30 billion mark for the first time in 2009/10. This is a growth area that should be targeted by the western red cedar and Douglas fir suppliers. A client’s project to add an extra room, a sunroom, a study or a conservatory could be photographed and written up as a feature article in a weekend lifestyle magazine.

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Backyards Backyard renovations in upmarket houses lend themselves to extensive landscaping which could include outdoor structures and walkways constructed in western red cedar. A recent article by Bronwen Gora in the Sunday Telegraph May 6, 2007, suggests that resort style landscaping is a developing trend. A prominent garden designer (Dean Herald) was featured in the article. In the article, the concept of creating a holiday atmosphere in backyards through the use of a variety of materials appeals to many home owners. western red cedar with its strong visual appeal, excellent durability, stable nature and ability to take an exterior finish could feature in a variety of structures or accents. Gora suggests that “outdoor dining areas are one of a property’s most valuable assets. The most personal space you have is your own back yard.” western red cedar lends itself to a deck walkway surrounding a pool or water feature. The timber is durable, cool on the feet because of its unique cellular structure and can be stained with an Alkyd based oil finish or left natural to mature into soft greys. Screening indoors Cedar screening is a valuable design component both inside and outside the house. Screens or lightweight Cedar sliding walls or partitions can be used inside for defining interior areas. The Japanese have used this concept for centuries. Shade under cedar Provisional of shade will be an ever increasing requirement for backyard living in the future with skin damage by UV rays being a serious health risk. Clever, practical shade control designs in timber will see this market develop. Pergolas Pergolas will continue to evolve with different styles. Douglas fir used for pergola framing or as posts under the cover of a roof makes for a solid attractive feature. Western red cedar in Clear grades or Select Tight Knot grades are ideal as an outdoor timber because of cedar’s excellent durability qualities. Large cedar timbers can be incorporated into designs to increase scale and effect. (Refer to the reference section in this report for details about a construction manual for the design and construction of an outdoor structure. See: Staines, Allan) Exposed beams Thin, fine sawn WRC boards could be applied over Engineered Wood Products for an exposed beam feature in WRC. Alternatively, Douglas fir in large end sections and coated in a clear finish could be used in open plans with exposed solid beams. Exposed beams add a natural feeling to the interior of houses. This ceiling structure could reappear as the trend towards more natural building products progresses. Building trends In the large cities the building lots will be smaller and duplexes or town houses will be built in areas with close proximity to Central Business Districts. To add a touch of warmth to outdoor spaces, WRC cladding or screening could be suggested or encouraged to be specified. Green trends Environmental impact footprints of all building products will increasingly be analysed to ascertain their “green” credentials. Those products which are from sustainable sources may find increasing demand from a growing section of the consuming public. Western red cedar and Douglas fir with proper environmental labelling will find a ready niche market.

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WRC and Douglas fir products should have Carbon Cycle information included in or on their packaging. Indoor/outdoor living Larger windows (many double glazed), feature in houses today. With increasing energy costs and energy rating compliances, buildings will move towards window and glazing products with effective thermal performance. WRC is such a product. Increasing numbers of houses will be specifying large sliding or bi-fold doors to open up the house, extend the living area and connect with the outdoors. Patios will be a growing feature. Here a market exists for designers to incorporate western red cedar and Douglas into outdoor structures for shade and protection from the elements. Low maintenance house and gardens This is a growing trend in today’s city. People want low maintenance but desire personal pleasant space to retreat to. Cedar fencing, screening and overhead protection can create a restful environment. WRC can be left unfinished (uncoated) in the elements. The Cedar will eventually mellow into shades of light browns and greys. It is durable and resists insect attack. However, a finish coating of an alkyd oil based stain or paint improves weathering resistance and is normally recommended. Landscaping and back yards There is potential for durable, built-in outdoor furniture made from WRC and integrated around paved areas. Douglas fir also can be incorporated into an outdoor structure, given it is properly protected from the elements. Large timbers, beams, posts and rails in Cedar Select Tight Knot grade can introduce and develop scale for feature areas. Cedar is durable and can be incorporated around water features. Railings and balustrades Cedar can be used for interior or exterior applications and Douglas fir can be used indoors or under cover. The joinery and manufacturing industry could supply exterior railing and balustrades as components. The balustrades panels could be modular and possibly pre-finished to save the builder or DIY installation time. Douglas fir is specified for its high strength and used around the world for ladders and scaffold planks. This characteristic adds an element of safety for railings. Energy rating Energy rating for buildings, the rising costs of energy and increasing focus on reducing green gas emissions will result in the drive to design more thermally efficient buildings. This will encourage the design and construction of breeze ways, better airflow (exhausting hot air) in summer and the use of more insulating materials. (WRC is an effective insulator). Internal heat sinks inside the house such as stone or concrete walls or floors that absorb heat during the day and give off the captured heat during the night to help heat the house will become more common. To help trap that heat from escaping WRC internal panelling could be an attractive option along with WRC thermal windows. Aesthetics will continue to be important. Both WRC and Douglas fir rate highly among architects and designers for their good looks and aesthetic appeal. Industrial and commercial building trends The timber industry has not been a large participant in the commercial field. Most of commercial construction is concrete and steel.

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Hard wearing Douglas fir for framing, joinery, handrails, stair treads and stringers will fit into commercial establishments. WRC could be incorporated into formal areas such ceiling linings to offer atmosphere. Commercial design areas that could be targeted for durable timber may be shading, screening in outdoors such as designated smoking areas, outdoor shaded lunch areas for employees, decking and built-in seating. Under a veranda or translucent roofing Douglas fir posts and pergola elements could be used if weather protected and properly detailed to prevent water ingress. The thermal characteristics of WRC could be used as an advantage to decrease heating and cooling loads. Additionally there are opportunities for windows that satisfy the design criteria, thermal criteria and budgets for commercial applications. Multi-storey timber-framed construction Much work was done a few years ago in Australia on Multi Storey Timber Framed Construction (MSTFC). As we move into a greener era of environmentally friendly buildings these construction applications such as MSTFC projects may prove to be a viable commercial solution. Please refer to the following website. http://www.timber.org.au/menu.asp?content_id=88 Also, contact TDA in South Australia for their list of publications regarding MSTFC. (The TDA South Australia hyperlinked website is http://www.tda.asn.au/ )

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PART 11 Conclusions As a result of the survey a number of conclusions were reached:

Web The Web is the most important reference source for the specifying and the supply community. TDA and FWPRDC were the most popular websites across the range of respondents. http://www.timber.net.au/ http://www.timber.org.au/ Websites need better and more comprehensive indexing to enable information to be located quickly and easily. Domestic timber supplier websites are almost unknown among specifiers. Resources need to be spent on making more consumers and professionals aware of supplier websites and their addresses. The New Zealand Douglas-fir website for instance, is not easy to find. Slightly more than half the respondents to the survey had company websites.

Training and Information Ideally, both a company’s web site and product brochures should work together as a unit. Many websites offer downloadable brochures. (TDA and the WRC Export Association are examples.) This is cost effective information distribution. http://www.timber.net.au/ http://www.wrcea.org/ A thirst for more timber knowledge exists in the Design and Build community Product brochures continue to be a vital component of timber marketing programs. In-house libraries are still an important reference source. More information is required on the environmental sustainability features of timber products. From the survey, the most requested seminar topics included;

• general information on western red cedar & Douglas fir • environmental sustainability • finishing & maintenance.

Douglas fir Douglas fir’s most popular characteristics are:

• large end sections / length availability • superior strength to weight ratio • aesthetic qualities/good looks.

More information is required for the application, use, detailing and maintenance of Douglas fir.

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Many were not sure where it could be used. Knowledge about Douglas fir is fading in the Design and Build community.

Western red cedar Western red cedar continues to be desired for its natural durability, good looks and stable nature. Finishing & maintenance questions, price and a lack of technical information were the top three reasons people cited for not using western red cedar. A large number of consumers and building industry personnel remembered advertisements for western red cedar. Few could remember any ads for Douglas fir.

Advertising and publicity More advertising of the products is needed to get the species benefits and features in front of consumers and specifiers. Some building and trade magazines were more popular and read more widely than others. Some Trade Shows, identified in the survey, are a worthwhile investment for the supplying industry. Other Trade shows hold little interest for designers and specifiers. Designers and specifiers need more information to support their reasons for specifying either species over alternatives.

Species substitution Architects may specify Douglas fir for framing in residential jobs. Often the builder or homeowner will select another species to save money. Anecdotal evidence suggests this is more likely to happen in a residential project rather than a commercial project. Architects usually have more control in a commercial project. Having the species or product written into the plan or building specifications is critical. Timber species chosen for framing applications are mainly determined by price, performance, reliability of product, reliability of supply. Australia’s overall consumption of sawn timber will most likely remain about the same. Australia has averaged just over 4 million cubic metres of sawn timber for decades. Australia’s plantation resource will continue to grow and timber exports will follow suit. Australian timber will be a traded commodity and will find a price level in the global timber market. Prices of timber products will rise as the world population grows and the emerging middle class of the Asian nations strive for better housing. There is a possibility in the future, as global timber trading develops, that Douglas fir from the Pacific North West may find a niche if ALS/CLS sizes (domestic North American sizes of lumber) are used for Australian framing applications.

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At the moment an opportunity exists for Douglas fir in an F7 grade to fill a requirement in the structural market. Overseas suppliers continue to service this market. Western red cedar is sustainably managed and harvested and may in the future replace some South East Asian timber species that will come under pressure to meet world sustainable harvesting challenges.

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PART 12 Recommendations It appears that the main drivers for the use of western red cedar come from the specifying community. This group, identified as the Architects, Building Designers, Specifiers and Builders, have significant input in choosing timber species and products. Driving this group in many cases are the consumers and clients pushing their desires and demands up the Specifier level. More resources need to be focussed on this Specifier group. Suggestions would include:

• Direct representation with product reps calling on the specifiers. • Brochure packs to be hand delivered to the architect and specifier group. • Running workshops in conjunction with trade shows or conference events. • Tagging onto the paint and timber finish industry workshops. • Running product information nights. • Sponsoring an event connected with the:

o Royal Australian Institute of Architects o Building Designers of Australia o Master Builders Association o Housing Industry Association or similar organization

Making a presentation and/or setting up a display stand at the event. • Utilize the seminar facilities of venues such as the Sydney or Melbourne Home

Ideas Centre and similar building display centres. • Have a visually appealing stand at a selected trade show. Hand out literature. Have a

prize draw to gather business cards. Hand out small timber samples. Display a “coffee table type book” of photos showing recent projects. Staff your stand with knowledgeable and enthusiastic representatives.

Internet Establish or improve your company website. Keep it updated and fresh and have it populated with relevant links. Publicise your website address where ever and when ever you can. Permanent Displays Maintain a presence, individually or with a group, in a year-round display centre. Advertise in conjunction with other companies or as part of an association. Magazines The survey identified the most popular magazines. • To reach the design and specify community the most popular magazines were:

o Building Product News o Architect Product News o Building Connection o Architect Australia o InfoLink

• To reach the Importer Wholesaler Joiner: o Timber Trader o Building Product News

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• To reach the Consumer / Home owner: o House and Garden o Home Beautiful

Brochures Timber Associations can provide brochures or provide web based sites for downloads of brochures to hand out to clients. http://www.timber.net.au/ The Western Red Cedar Export Association has a set of well designed, attractive and detailed brochures regarding Western Red Cedar. These brochures are also available as downloads on the WRCEA website. http://www.wrcea.org/ The New Zealand Douglas fir Association has a brochure that can be ordered and have a new one in production at the moment. http://www.douglasfir.co.nz/ The North American and New Zealand timber industries need to remain committed to the Australian market and be willing to undertake continuing Research & Development to ensure their products’ success. Advertising Well crafted, professionally shot, “Eye Catching” photography of outstanding projects or prestige houses with enticing views of water or countryside; attract the attention of the viewer. This should be accompanied with a short article if possible to keep the viewer focussed on the image and to spend more time with details and explanation. The advertising editor should be able to guide you. Popular, well read magazines should be identified. Direct representation Timber representatives could be assisted with materials that they could distribute to the specifying community, resellers and merchants. A short “brush up course” could be offered to bring reps up to speed on the merits and benefits of both species. Direct calling on architects and building designers with a brochure pack saves the designers’ time. Additionally, a sales rep updating the brochure packs has the opportunity to develop a sales contact. Articles in professional magazines If advertising in a magazine, often the editor will allow some background article to accompany the ad. That article could be instructive, helpful, or inspiring to the readers. Articles in Home and Lifestyle magazines Lifestyle improvement or new directions in style or a fresh use of timber product are all good reasons to submit to a magazine editor; especially if the article is accompanied with an advertisement. DVD or CD media Technical information, span tables, finishing information and current brochures can be copied onto a CD. Having one CD to load may save the designer or architect precious time. An excellent CDROM was produced in 2001 by the Australian Timber Importers Federation on timber durability. The CD was loaded with advice and helpful suggestions. Maybe the CD needs to be updated and re-released.

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Timber Design Awards At the Timber Design Awards night held at the Four Seasons Hotel in Sydney in 2006, attendance was quite strong with architects and designers from all over Australia in attendance. Well known architect, Peter Stutchbury, gave an open, impassioned speech on his love and respect for timber. He suggested that those who use timber as design elements must spend some time working with and learning about timber; hands on. One of the architects receiving an award on the evening, after thanking the organizers for his award, said it was an honour to receive such an award and that to be recognized for a design was both gratifying and encouraging. With this in mind, it probably a good idea if more award categories could be offered by the timber industry. Bringing the architects closer to the industry will be beneficial for both parties. Clever designs in timber can both expand the horizons for timber usage and create opportunities. Sponsorship funding would be required for any new award but having a product used in a cutting edge design or new application may inspire others. WRCEA Consider becoming an Associate member of the Western Red Cedar Export Association. Membership entitles Associates access to enquiries received by the WRCEA from various media, a listing on the purchasing Cedar website feature, tradeshow participation and marketing strategy input. Web Sites Websites, it was learned during the survey, were the first stop for designers and specifiers looking for Douglas fir and western red cedar information. To keep people returning to the site, the site needs to be kept up to date, fresh and relevant. If it’s the first port of call for designers it must make a good impression, be easy to navigate to important information and be useful. WRCEA could have a link on its website to a Douglas fir web site. Just as New Zealand Radiata Pine Association website could have a web link to NZ Douglas-fir. Internet effectiveness. Typing in the word Douglas fir yields 2,180,000 sites. Typing in the word Western Red Cedar yields 2,570,000 sites. Drilling down through such an extraordinary number of mostly superfluous sites is a waste of time. To be commercially successful, websites must be designed in such a way that they are picked up by Search Engines such as Google and presented in the first couple of pages. Anything beyond 3 pages on Google and the customer is gone. Douglas fir Websites The New Zealand Douglas-fir Association has a comprehensive Website with a wide cross section of advice and testimonials from builders and suppliers.

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The Pacific North West Douglas fir suppliers require a dedicated website to clearly explain where and how Douglas fir can be used. Examples of applications, finishing, construction and proper jointing details need to be easy to access. The site must emphasize that Douglas fir can be used outside if protected from the weather and properly finished and detailed. Cedar School Engage Window and Door manufacturers, Joinery companies, WRC Importers and Timber Merchants to encourage their staff to participate in Cedar School. Possibly some incentive from the student’s boss needs to be offered. This training course allows the student to become familiar with the attributes and benefits of Cedar. Work with TAFE, Royal Australian Institute of Architects, Building Designers Association, Master Builders Association and TABMA to have the course recognized as an extension course where a participant can earn professional development points. Supplement the WRC School with information nights. http://en.wrcea-training.org/ Q&A Link on a Website A Q&A (Question and Answer) site for both species had popular support in the survey. Answers to commonly asked questions will be helpful. Small, unobtrusive ads could help fund the site.

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PART 13 References ANU Forestry Report March 2002, Number 19. School of Resources, Environment & Society in association with Australian Forest Growers Australian Bureau of Agricultural and Resource Economics (ABARE) Bootle, Keith Wood in Australia. Second edition. Published 2005. Forest and Wood Products Research and Development Corporation Scenarios for Selected Timber Markets: Summary Report, Project No. PN05.1021 February 2006. Forest and Wood Products Research and Development Corporation “Build in Timber”, brochure produced and published by Fenstar.com.au Forest and Wood Products Research and Development Corporation “Forests, Wood and Australia’s Carbon Balance”, published 2006. Forintek Canada Corp. Wood-frame Construction, Fire Resistance and Sound Transmission, George Katos, Annabelle Subramaniam. Ipos Australia Pty Ltd Developing Australian Markets for Finger Jointed Pine Products Ministry of Forests, British Columbia. Sustainable Forest Management in British Columbia Canada, Produced by the International Relations Unit. National Association of Forest Industries 2001 Briefings. Forestry Facts -an overview. Property Council of Australia 27 November 2006 Boulevard of Broken Dreams -The future of housing affordability in Australia. Published January 2007. Staines, Allan. The Australian Decks & Pergolas Construction Manual. 5th edition published February 2007 by Pinedale Press. Available for purchase from TDA New South Wales or TDA South Australia. Sweeney Research Pty Ltd, Albert Park, Victoria, Survey of Architect’s Magazine and Journal Readership 2004. Study 13850. by U.S. Trade Data, World trade Atlas Data and FAS Attache Report NZ9062, New Zealand (2) Wood Promotion Network Build Green: Build with Wood, Be constructive. www.beconstructive.com

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PART 14 Appendices Timber Industry Websites (hyperlinked) BC Forest Products http://www.bcforestproducts.com/

Cedar Shake and Shingle Bureau http://www.cedarbureau.org/

Coast Forest Products Association http://www.coastforest.org/

Council of Forest Industries http://www.cofi.org/

Douglas fir in BC http://www.coastforest.org/products_002.html

Forest & Wood Products Research & Development Corporation http://www.timber.org.au/

Forest & Wood Products Australia www.fwpa.com.au

Forests NSW http://www.dpi.nsw.gov.au/forests

Forests Tasmania http://www.forestrytas.com.au/forestrytas/

ISO 14000 Environmental Standards http://www.tc207.org/

Lumber Basics – a WWPA site http://www.lumberbasics.org/

New Zealand Douglas-fir Association http://www.douglasfir.co.nz/

NAFI National Association of Forest Industries http://www.nafi.com.au/

On-Line Cedar School http://en.wrcea-training.org/

TDA - South Australia http://www.tda.asn.au/

The Montreal Process- International forestry http://www.rinya.maff.go.jp/mpci/

Timber and Building Merchants Association http://www.tabma.com.au/

Timber Development Association http://www.timber.net.au/

Timber Queensland http://www.tradac.org.au/

US Forest Services http://www.fs.fed.us/

Western Red Cedar Export Association http://www.wrcea.org/

Western Red Cedar Lumber Association http://www.realcedar.org/

Western Wood Products Association http://www.wwpa.org/

WRC cladding – finishing http://www.wrcea.org/cedar-

products/cedar_siding/finishing_siding/overview.htm

WRC Shake and Shingle Handbook http://www.bcshakeshingle.com/En/handbook.htm

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PART 15 On-line survey results Western Red Cedar and Douglas fir Market Survey “A” - Analysis Architect, designer, builder, engineer, specifier or related occupation General Information Total number of responses: 203 PERSONAL INFORMATION 1. Your occupation: Option Percentage Architect 17.7% Building Designer / Specifier 33.8% Interior Designer 8.5% Builder 14.6% Engineer 5.4% Carpenter, or Tradesman 8.5% Other 11.5% 2. Your Postcode: Postcode link: www.thorlynne.com.au/questionnaire1b/analysis-text.php?id=2 3. Do you make most of the timber purchasing decisions for your organisation? Option Percentage YES (73.1%) NO (26.9%)

ACCESSING INFORMATION Technical Information

4. For timber information queries you would use:

Responses for this question: 384

Option Percentage

In-house libraries 15.9% Colleagues 9.9% Product brochures 19.8% Websites 27.3% Manufacturer technical departments 14.3% Product sales reps 12.0% Other 0.8%

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5. If you call someone for timber information would it most likely be: Option Percentage Someone from your profession 8.5% A sales rep or a company 64.6% A timber related Association (for example: FWPRDC, TDA, RAIA) 23.8% Other 3.1% 6. If you were looking for specific information about Western Red Cedar and Douglas fir would you first: Option Percentage Go to a website 63.1% Phone someone 15.4% Consult brochures or technical literature 21.5% INFORMATION SOURCES 7. Which of the following magazines do you read? Responses for this question: 286 Option Percentage Artichoke 8.0% Architecture Australia 12.9% Architectural Product News 22.0% Building Product News 25.5% Building Connection 14.7% Building Contractor 4.2% Monument 7.0% Other 5.6%

8. Which of the following websites are you familiar with? Responses for this question: 166 Option Percentage TDA (Timber Development Association) 42.8% TRADAC (Timber Queensland) 10.2% TABMA (Timber and Building Materials Association) 16.9% Forest & Wood Products Research & Development Corporation 30.1% 9. Are you aware of the websites of domestic suppliers of Douglas fir (Oregon) and Western Red Cedar? Option Percentage YES (12.3%) NO (87.7%)

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DEVELOPMENT OF FUTURE RESOURCES 10. How useful would websites with (drilled down) specific information about Douglas fir and Western Red Cedar be? (a link to say, “How to apply WRC shingles”, for instance): Option Percentage none 3.1% somewhat 10.0% satisfactory 3.8% good 25.4% very good 25.4% excellent 20.8% outstanding 1.5% invaluable 10.0% 11. How useful would a link to a ‘Question & Answer’ site for Western Red Cedar & Douglas fir be? Option Percentage none 3.3% somewhat 10.0% satisfactory 10.0% good 40.0% very good 13.3% excellent 17.5% outstanding 3.3% invaluable 2.5% TRADE SHOWS 12. How many building or trade shows have you attended in the past 2 years? Response Percentage 0 15.8% 1 11.7% 2 36.7% 3 10.8% 4 11.7% 5 5.0% 6 3.3% 7 0.8% 8 0.8% 10 0.8% 12 0.8% 13 0.8% 66 0.8%

Average: 4.0 out of 8

Average: 4.1 out of 8

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13. In your opinion which was the best? Option Percentage DesignEx - Form and Function Expo 29.2% Pool & Spa Outdoor Living Expo 0.0% Building & Renovation Expo 2.5% Building & Home Improvement Expo 4.2% Designbuild 33.3% Working with Wood Show 7.5% HIA Home Shows 9.2% Other 14.2%

14. Considering the building and trade shows that you have attended, how much value have they offered you? Option Percentage none 3.6% somewhat 14.4% satisfactory 17.1% good 26.1% very good 28.8% excellent 6.3% outstanding 1.8% invaluable 1.8%

15. If you do not attend trade shows it is because: Option Percentage Too much time involved 34.4% Parking and associated charges 6.3% My time is too valuable 6.3% Little value 5.2% I can learn enough from other sources 31.3% Other 16.7% WESTERN RED CEDAR 16. How do you rate the information available for Western Red Cedar? Option Percentage none 5.0% somewhat 20.0% satisfactory 41.7% good 20.0% very good 10.0% excellent 3.3% outstanding 0.0% invaluable 0.0%

Average: 3.8 out of 8

Average: 3.2 out of 8

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17. In the last 2 years have you used Western Red Cedar in your building designs or construction? Option Percentage YES (66.7%) NO (33.3%) 18. If so, which applications? Option Percentage Windows 25.6% Doors 18.1% Interior Panelling 9.3% Shade or privacy screens 7.0% Facia 3.1% Exterior cladding 15.9% Blinds/shutters 7.5% Decking 3.5% Pergolas 3.1% Shingle/Shake roof 0.4% Gates 4.0% Other 2.6% 19. If you would like to use more Western Red Cedar in a design or project what is holding you back? Responses for this question: 278 Option Percentage Availability of information regarding species use 7.9% Lack of span tables 5.8% More technical information needed 9.4% Unsure of sizes and grades available 10.8% Finishing and maintenance questions 13.7% Not in fashion 6.5% Price 13.3% Unsure where to source 5.4% Unsure of fixing and detailing 5.4% Environmental sustainability questions 10.4% Lack of design examples or ideas 7.6% Other 4.0%

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20. Why did you decide to use Western Red Cedar? Responses for this question: 189 Option Percentage Easy to source 4.8% Sustainably managed ( a ‘green’ building product) 7.9% good looks / aesthetically pleasing 33.3% Natural durability 26.5% Stable 14.3% Easy to stain or paint 10.1% Other 3.2% INFORMATION SOURCES 21. Which of the following websites pertaining to Western Red Cedar are you familiar with? Option Percentage Western Red Cedar Export Association 61.1% Western Red Cedar Lumber Association 27.8% Cedar Shake and Shingle Bureau 11.1% 22. Are you aware of the online Cedar School (www.cedar-training.org)? Option Percentage YES (0.9%) NO (99.1%) 23. Are you aware that the Western Red Cedar Designers Handbook is available as a download from www.wrcla.org? Option Percentage YES (1.7%) NO (98.3%) DOUGLAS FIR 24. How do you rate the information available for Douglas fir? Option Percentage none 12.0% somewhat 29.1% satisfactory 35.9% good 17.1% very good 3.4% excellent 1.7% outstanding 0.0% invaluable 0.9%

Average: 2.7 out of 8

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25. In the last 2 years have you used Douglas fir (Oregon) in building projects? Option Percentage YES (37.6%) NO (62.4%)

26. If Yes, what applications Option Percentage Large Beams 26.2% Porch Posts 14.0% Doors or Joinery 8.4% Windows 4.7% Wall framing 13.1% Roof framing 16.8% Lintels 12.1% Other 4.7% 27. Why did you choose Douglas fir (Oregon)? Option Percentage Superior strength to weight ratio 18.4% Dimensional stability 12.6% Available in sizes and lengths required 23.3% Price 9.7% Matching previous framing in a renovation 10.7% Aesthetic qualities and good looks 20.4% Other 4.9% 28. If you have not used Douglas fir (Oregon) in recent projects, why not? Option Percentage Not sure where it can be used 21.2% Availability 15.2% Don’t know enough about the product 32.3% Do not have span tables or engineering specifications 12.1% Other 19.2% 29. Are you aware Douglas fir (Oregon) is also available in clear grades? Option Percentage Number YES (26.5%) 31 NO (73.5%) 86 30. Are you familiar with the following websites pertaining to Douglas fir? Option Percentage Coast Forests Products Association 17.5% New Zealand Douglas fir Association 25.0% BC Forest Products 15.0% Council of Forest Industries 22.5% Western Wood Products Association 20.0%

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PUBLIC CAMPAIGNS 31. Do you recall advertisements (print, TV radio or online) over the past year for: Option Percentage Western Red Cedar 92.5% Douglas fir 7.5%

32. Where do you mostly learn about new building products? Option Percentage Magazines 40.2% Colleagues 6.8% Timber/Building Supply Reps 9.4% Trade/Professional Associations 14.5% Internet 27.4% Other 1.7%

RELATED ISSUES 33. Given that timber performance can be enhanced with the correct finish, do you require further information on finishes for Western Red Cedar and Douglas fir? Option Percentage YES (69.2%) NO (30.8%) 34. Do your clients ask about sustainability issues or wood certification more often than they did 2 years ago? Option Percentage YES (59.8%) NO (40.2%) 35. How valuable would timber knowledge seminars be to you? Option Percentage none 8.5% somewhat 14.5% satisfactory 10.3% good 27.4% very good 18.8% excellent 12.0% outstanding 3.4% invaluable 5.1%

Average: 3.7 out of 8

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COMMENTS 36. Which seminar topics would interest you? Responses for this question: 376 Option Percentage Fixing, detailing 14.9% Environmental Sustainability 18.4% Finishing and maintenance 17.6% General information on Western Red Cedar and Douglas fir 15.2% Engineering details and technical information 13.0% Project examples - design, development and explanation 19.9% Other 1.1%

37. Is there anything else that could be done by Douglas fir or Western Red Cedar suppliers or manufacturers to assist you as a building professional? (Please refer to the responses in this report. Page 29 for example )

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Market Survey “B” Analysis Timber merchant, importer, manufacturer, consumer, or other GENERAL INFORMATION Total number of responses: 198 PERSONAL INFORMATION 1. Your occupation: Option Percentage Timber Importer / Wholesaler 36.4% Timber Merchant 14.3% Joiner / Manufacturer 11.7% Consumer / Home Owner 27.3% Other 10.4% 2. Your postcode: postcodes 3. Do you make most of the timber specifying decisions for your organisation? Option Percentage YES (70.1%) NO (29.9%)

Accessing Information TECHNICAL INFORMATION 4. For Douglas fir and Western Red Cedar information queries you would use: Option Percentage In-house libraries 9.4% Supplier sales reps 21.0% Product brochures 22.4% Websites 27.3% Manufacturers technical departments 6.3% A timber-related association (e.g. FWPRDC, TDA, AWA, WADIC) 12.5% Other 1.1%

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INFORMATION SOURCES 5. Which of the following magazines do you read? Responses for this question: 250 Option Percentage Building Product News 17.6% Architectural Product News 8.8% Timber Trader 32.0% House and Garden 22.4% Home Beautiful 13.2% Other 6.0% 6. Which of the following websites are you familiar with? Responses for this question: 258 Option Percentage Domestic suppliers of Douglas fir (Oregon) and Western Red Cedar? 3.9% TDA (Timber Development Association) 26.4% TRADAC (Timber Queensland) 7.4% TABMA (Timber and Building Materials Association) 22.1% Forest & Wood Products Research & Development Corporation 20.9% None of the above 19.4% DEVELOPMENT OF FUTURE RESOURCES 7. How useful would websites with (drilled down) specific information within Douglas fir and Western Red Cedar be? (A link to say, “How to apply WRC shingles”, for instance): Option Percentage none 4.5% somewhat 8.4% satisfactory 5.8% good 24.0% very good 27.3% excellent 17.5% outstanding 1.9% invaluable 10.4%

Average: 3.9 out of 8

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8. How useful would a link to a ‘Question & Answer’ site for Western Red Cedar & Douglas fir be? Option Percentage none 4.5% somewhat 9.7% satisfactory 2.6% good 17.5% very good 30.5% excellent 19.5% outstanding 2.6% invaluable 13.0%

TRADE SHOWS 9. How many building or trade shows have you attended in the past 2 years? Response Percentage 0 30.5% 1 9.7% 2 31.2% 3 8.4% 4 11.0% 5 1.9% 6 3.2% 8 0.6% 9 0.6% 10 1.3% 20 0.6% 30 0.6% 10. In your opinion, which was the best? Option Percentage Pool & Spa Outdoor Living Expo 0.6% Building & Renovation Expo 3.2% Building & Home Improvement Show 10.4% Designbuild 17.5% Working with Wood Show 9.1% HIA Home Shows 16.9% Did not attend any shows 17.5% Other 24.7%

Average: 3.9 out of 8

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WESTERN RED CEDAR 11. How do you rate the information available for Western Red Cedar? Option Percentage none 12.0% somewhat 14.3% satisfactory 30.1% good 20.3% very good 16.5% excellent 6.0% outstanding 0.0% invaluable 0.8% 12. In the past 12 months have you used or recommended Western Red Cedar in your building designs or construction? Option Percentage

YES (58.6%)

NO (41.4%) 13. If so, for which applications? Responses for this question: 273 Option Percentage Windows 21.2% Doors 15.0% Interior Panelling 12.5% Shade or privacy screens 8.1% Facia 4.0% Exterior cladding 13.2% Blinds/shutters 6.6% Decking 2.2% Pergolas 4.8% Shingle/Shake roof 3.3% Gates 6.6% Other 2.6%

Average: 3.3 out of 8

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14. If you would like to use more Western Red Cedar in a design or project what is holding you back? Responses for this question: 207 Option Percentage Availability of information regarding species use 9.7% Lack of span tables 4.8% More technical information needed 8.7% Sizes or lengths not available 5.3% Finishing and maintenance questions 12.1% Not in fashion 2.4% Price 22.7% Supply problems 8.2% Unsure of fixing and detailing 3.4% Environmental sustainability questions 7.2% Lack of design examples or ideas 8.7% Other 6.8% 15. Why did you decide to use or recommend Western Red Cedar? Responses for this question: 264 Option Percentage Easy to source 5.3% Sustainably managed ( a ‘green’ building product) 7.6% Good looks / Aesthetically pleasing 31.4% Natural durability 25.4% Stable 16.3% Easy to stain or paint 9.1% Other 4.9% 16. The durability of Western Red Cedar. How important is this property to you? Option Percentage none 1.5% somewhat 3.8% satisfactory 3.8% good 12.0% very good 29.3% excellent 22.6% outstanding 4.5% invaluable 22.6%

Average: 3.8 out of 8

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INFORMATION SOURCES 17. Would you use or recommend Western Red Cedar “Select Tight Knot” grade for outdoor or backyard construction? Option Percentage YES (67.7%) NO (32.3%)

18. Which of the following websites pertaining to Western Red Cedar are you familiar with? Option Percentage Western Red Cedar Export Association 25.3% Western Red Cedar Lumber Association 12.3% Cedar Shake and Shingle Bureau 1.4% None of the above 61.0%

19. Are you aware of the online Cedar School (www.cedar-training.org)? Option Percentage YES (3.8%) NO (96.2%) 20. Are you aware of the Western Red Cedar Designers Handbook available as a download from www.wrcla.org? Option Percentage YES (6.8%) NO (93.2%) DOUGLAS FIR 21. How do you rate the information available for Douglas fir? Option Percentage none 20.5% somewhat 18.9% satisfactory 26.8% good 18.9% very good 5.5% excellent 7.1% outstanding 0.8% invaluable 1.6%

22. In the last 12 months have you used or recommended Douglas fir (Oregon) in building projects? Option Percentage YES (39.4%) NO (60.6%)

Average: 2.9 out of 8

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23. If Yes, for what applications Option Percentage Large Beams 27.3% Porch Posts 13.3% Doors or Joinery 8.4% Windows 6.3% Wall framing 13.3% Roof framing 14.0% Lintels 9.8% Other 7.7% 24. Why did you choose Douglas fir (Oregon)? Responses for this question: 169 Option Percentage Superior strength to weight ratio 18.3% Dimensional stability 10.1% Available in sizes and lengths required 23.7% Price 13.6% Matching previous framing in a renovation 14.2% Aesthetic qualities and good looks 14.2% Other 5.9% 25. If you have not used Douglas fir (Oregon) in recent projects. Why not? Option Percentage Not sure where it can be used 20.8% Availability 16.7% Don’t know enough about the product 30.6% Do not have span tables or engineering specifications 8.3% Other 23.6% 26. Are you aware Douglas fir (Oregon) is also available in clear grades? Option Percentage Number YES (64.6%) 82 NO (35.4%) 45 PUBLIC CAMPAIGNS 27. Are you familiar with the following websites pertaining to Douglas fir? Option Percentage Western Wood Products Association 20.0% Coast Forests Products Association 4.7% New Zealand Douglas fir Association 9.3% BC Forest Products 4.7% Council of Forest Industries 12.0% None of the above 49.3%

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28. Do you recall advertisements print, (TV radio or online) over the past year for: Option Percentage Western Red Cedar 82.8% Douglas fir 17.2% RELATED ISSUES 29. Where do you mostly learn about new building products? Option Percentage Magazines 33.1% Timber/Building Supply Reps 26.0% Trade/Professional Associations 13.4% Internet 22.8% Other 4.7% 30. Are timber reps generally knowledgeable about Douglas fir or Western Red Cedar? Option Percentage none 15.7% somewhat 28.3% satisfactory 21.3% good 18.1% very good 11.8% excellent 3.1% outstanding 0.8% invaluable 0.8% 31. Does your company have a website? Option Percentage YES (58.9%)

NO (41.1%)

32. Do you or your clients ask about sustainability issues or wood certification more often than you/they did 2 years ago? Option Percentage YES (71.0%) NO (29%)

Average: 2.9 out of 8

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33. How valuable would seminars be to you? Responses for this question: 124 Option Percentage none 3.2% somewhat 22.6% satisfactory 12.9% good 21.8% very good 23.4% excellent 8.1% outstanding 1.6% invaluable 6.5% 34. Which seminar topics would interest you? Responses for this question: 300 Option Percentage Fixing, detailing 10.7% Environmental Sustainability 21.7% Finishing and maintenance 16.0% General information on Western Red Cedar and Douglas fir 26.3% Engineering details and technical information 11.3% Project examples - design, development and explanation 14.0% 35. Is there anything else that could be done by Douglas fir or Western Red Cedar suppliers or trade associations to assist you? ( Please refer to the list of responses in this report – page 29 for instance) 38. What are your ideas about growing the market for Western Red Cedar or Douglas fir? (Please refer to the responses in this report – page 28 for instance)

Average: 3.5 out of 8