Softwood Export Council - News

Trump's Budget Cuts to Eliminate SEC

On Tuesday, Trump's administration released its proposed budget for fiscal year 2018. Among the budget cuts is a 21% reduction in funding for USDA's discretionary programs, which includes the elimination of FAS's Market Access Program (MAP) and Foreign Market Development (FMD) Program. These programs are the cornerstone of Softwood Export Council and it's cooperators; without these programs we cease to exist.

Trump’s long-term budget proposes $230 billion in cuts to farm bill funding spanning 10 years, eliminating $235 million in annual funding for foreign marketing programs.

Softwood Export Council is proudly non-partisan: we serve the U.S. lumber industry by marketing American-grown, American-made forest products around the globe. We are dedicated to growing the reach of U.S. lumber and introducing our members to new, burgeoning markets in places like Vietnam and Pakistan, where our influence establishes mutually-beneficial trade partnerships. Most importantly, our funding allows us to do what a single company would find immensely difficult to accomplish on their own, and we are well-equipped with representatives stationed in China, Japan, the UK, and Mexico, as well as partnering associations world-wide, to tackle international trade barriers and seek out new opportunities for U.S. exports.

If these activities are vital to you, we urge you to call your representative and voice your concern over the loss of our programs. Please advocate for us, as our future is in jeopardy:

Call your local representative. All members of Congress can be reached through the US Capitol switchboard at 202-224-3121. Your personal phone call is the most impactful way to show your support.
Write a message. Using your zip code, you'll be able to find your representative online at house.gov and submit an email via online contact form. You can also find and contact your senators by going to www.senate.gov.
Submit a success story. Our online form collects examples of how SEC programs benefit our members and are submitted to Congress, demonstrating our value.

Rose Research Report Available; Success Stories Needed

Rose Research has released its annual Global Evaluation Report, which is now available for download to SEC members. The report allows American Softwoods to better understand the attitudes, perceptions and behavioral practices among importers, architects/designers, specifiers, manufacturers, etc. in the global market based on 1,538 surveys administered in 2016.

The report offers feedback each year on the constraints facing the industry, and identifies opportunities for growth in public opinion that are crucial to consider when building SEC strategy. The information collected through this project is benchmarked, and has helped identify the perceived strengths and weaknesses of U.S. softwood products since the program was launched in late 2012—a total of 4,833 surveys have been completed and analyzed since that time.

One of many graphs accessible in the Rose Research Report

This year, in addition to the report's annual findings, research shows that American Softwoods cooperators continue to make positive strides in addressing constraints, improving perceptions and incorporating the report's recommendations for message promotion.

While research demonstrates SEC's effectiveness, we still require testimonials from our members in order to justify our funding. USDA's Foreign Agricultural Service (FAS) needs success stories when they meet with your elected officials. FAS has told us that their budget is under increased pressure, and therefore success stories are more important than ever. We are looking for a paragraph that includes how you benefited (in jobs saved or added, sales, etc.) with numerical details preferred but not required, as well as the benefiting location(s) so that the story may be targeted to members of Congress in that state and/or district. You can submit a success story here.

None of this information will be given to other members, and your information will only be seen by SEC staff, FAS, and Congressmen who request justification from FAS for our programs. Thank you for support of our programs.

Cochran Program Assists in Reverse Missions

In 2016, SEC partnered with the Cochran Fellowship Program to host groups from Egypt, Pakistan, & Peru, utilizing other FAS funds outside our core MAP and FMD programs. The Cochran Fellowship Program provides short-term training opportunities to agricultural professionals from middle income countries, emerging markets, & emerging democracies.

Cochran fellows come to the United States, generally for 2-3 weeks, to work with U.S. universities, government agencies and private companies. They receive hands-on training to enhance their technical knowledge and skills in areas related to agricultural trade, agribusiness development, management, policy and marketing.

Bob Lewis gives the Pakistan group a tour of Columbia Vista mill

Of these three groups, Pakistan is currently the largest market and the best immediate opportunity for U.S. softwood products. Pakistani demand for wood products has increased significantly in recent years, reaching 370,000 cubic meters in 2015. U.S. exports to this market are strong, reaching record levels and growing at an average annual rate of 47%. Pakistan has become the seventh largest market for U.S. softwoods and has set themselves up to be a major distributor in the Middle East region.

The Peru group's itinerary

Cochran’s assistance in Peru was also invaluable, and with their financial assistance SEC prepared the most extensive educational programming to date, equipping the ten Peruvian representatives with knowledge about U.S. domestic and international lumber standards and codes: their development, testing, and compliance. Participants also attended the Greenbuild International Conference, with options for multiple seminars and walking tours centered around safety and sustainability. The technical information offered during this Cochran program allowed the Peruvians the knowledge to advocate for U.S. softwoods within their home country, potentially opening Peru’s building codes to include U.S. structural grades.

If your association is interested in hosting delegates from a specific emerging market, please let SEC know, as we have the ability to request market partnerships from Cochran administrators.

Joint Meeting Illuminates Potential in Mexico Market

SEC & IMEXFOR members mingle at meeting reception in San Miguel de Allende

SEC’s board meeting this February took place in Mexico and included a joint meeting with Mexico’s National Association of Importers & Exporters of Forest Products (IMEXFOR). Mexico has been a market of growing potential for the last five years: while SEC has spent relatively little on promotions in this country, the exports to this market now exceed Japan, one of SEC’s most active programs.

Organizing this conference in conjunction with our board meeting allowed members to network and share expertise with the Mexico industry; through our joint meeting SEC has been able to investigate long term opportunities for U.S. softwoods in lumber and value-added building materials, meanwhile developing relationships with importers as potential partners and promoters of U.S. softwoods.

Beginning with an overview of Mexico’s major statistics delivered by Julio Maldanado of Mexico City’s Agricultural Trade Office, the meeting also included an overview of Mexico’s wood import market from Everado Martinez Salazar, and a look at the latest trends in Mexico’s academic sector. This collaboration with IMEXFOR was particularly eye-opening in detailing the international competition present in the Mexico market, as well as opportunities and obstacles for U.S. softwood products. Feedback from IMEXFOR members is included below:

Don Devisser overviews the Western U.S. Species

Gerardo Madrigal joins Everardo Salazar in his presentation

Mexico is the world’s 14th largest landmass, sharing a 1,860 mile border with the U.S. that contains 63 crossings. Each year, Mexico’s need for wood increases, with most of the lumber entering Mexico from the U.S. used for furniture manufacturing and packaging material. There are few examples of softwoods in construction, including OSB roofing supported by inexpensive steel beams. IMEXFOR’s representatives advised members to find a niche in order to introduce lumber to construction—perhaps low-income housing would be the best way to enter the structural market.

According to IMEXFOR members, the Mexican market doesn’t feel comfortable with the U.S.’s inability to accommodate exchange rates. Price is a well-documented obstacle in the Mexican market, as the peso fell 49% against the U.S. dollar within the past 5 years—and at an even faster rate in 2016. However, Chile and Brazil are said to discount 5% to adjust for exchange rates, and Mexico is negotiating an elimination of vat taxes of Brazilian imports.

Perhaps one of the biggest hindrances to trade is a misunderstanding of U.S. dimensions—for instance when ordering U.S.
2 x 4s, Mexican importers become frustrated when they discover the true dimensions are 1.5 x 3.5. IMEXFOR members explained that they can get what they ask for with other countries, and Chile is more flexible customizing for Mexico’s need (25mm x 6, 8, and 10” rough). Mexican importers also struggle to find U.S. lumber that isn’t kiln dried.

Although Mexico imports from Chile and Brazil for softwood lumber due to market communications, language and culture, importers prefer U.S. supply because of its quality and reliability. Proximity is another perk: shared railways mean fast, inexpensive shipping. Additionally, it’s much easier for Mexican importers to obtain credit with the U.S., and IMEXFOR members particularly appreciated that American exporters do what they say they will, and shipments always arrive at the agreed upon time.

Continued engagement with IMEXFOR is crucial to maintaining our relationships, fostering greater collaboration, and creating more opportunities to do business within the Mexican market. More information on Mexico can be found through our membership-accessible Statistics & Reports downloads.

China Updates Disinsection Requirements for Zika Virus

Zika Virus

China has taken steps to stop the spread of the Zika virus. The Foreign Agricultural Service has learned that AQSIQ (General Administration of Quality Supervision, Inspection and Quarantine of People’s Republic of China) will only require disinfection certification from products in the U.S. originating or loading from Florida.

Please find more details in FAS' Update on China's Zika Disinsection Requirements for U.S. Exports. This information is subject to change as the Zika situation develops.

Booth Designs in China Generate Strong AmSo Brand Identity

AmSo's Sylvawood Booth

Visitors discuss materials in AmSo's warm booth space

Softwood Export Council exhibits in trade shows around the world, but our booth designs in China are most successful due to their warmth, effective display of softwoods in interiors, and unique, eye-catching elements. The man behind the design is Xu Fang, Director of American Softwoods' China office. His booth designs at Interzum (Guangzhou) and Sylvawood (Shanghai) this year have set a strong tone for American Softwoods, highlighting the look and feel of softwood panelling and mimicking outdoor as well as indoor structures.

"There are three aspects that I consider in my design in order to make a booth stand out at the show," explains Xu, "How do people feel when they see the booth from a distance? The booth needs to stand out among its neighbors. How do people feel when they are in the booth? The space must accommodate people moving around, talking, reading, and business meetings. Do visitors have a chance to experience our products? People should have a chance to touch the material and feel warmth."

Xu expresses that warmth is among the key elements he incorporates to maintain a consistent American Softwoods brand identity; he also strives for quality, simplicity, and affordability, all of which are what local users are looking for, but unable to easily obtain in the Chinese wood industry. Creating a relaxing, welcoming booth environment allows these qualities to shine, standing alone alongside the other exhibitors at a trade show.

Xu troubleshoots details with construction crew on site before Interzum

The process of creating a booth begins with conceptual design: Xu considers first the impression he knows the trade show's audience will respond to, balancing this with the availability of construction materials, required craftsmanship, and cost. After comparing construction vendors and receiving SEC approval of the designs and quotes, Xu reaches out to local importers dealing in U.S. softwoods. All of the lumber used in booth construction is sourced through donation or at a low price covering basic cost.

"Fortunately, most of the industry people I talk to are quite supportive," Xu says, "The bottom line is to consider the reuse of booth material in the future, and easy handling during assembly and disassembly." Installation takes place one or two days prior to the opening event, and Xu supervises the entire process, working with the construction crew to problem-solve and adapt the design as questions arise.

While American Softwoods must target the existing market in each country, the key elements Xu uses in China's booths (warmth, quality, simplicity, and affordability) are not specific to the Chinese market and allow SEC to expand upon them in other countries.

Completed Interzum booth

The booth makes use of trade show walk way with welcoming design

Visitors engage easily at the completed Interzum booth

Progress in Korean Grade Negotiations

As last reported on the Korean Forest Research Institute’s (KFRI) effort in developing its own lumber grading system and requiring lumber imports to S. Korea to meet its proprietary grading stamp, progress has been made to find an alternative solution to the requirement. Also since the last report, the Korean Forest Research Institute has changed its name to NIFoS, the National Institute of Forest Science.

The implementation of Korea's grading standard is on hold until the General Assembly of Korea approves an amendment to the law allowing the Korean Lumber Standard, most likely in the beginning of 2017. NIFoS has also confirmed the acceptance of North American structural lumber on an equivalent design value basis to the Korean Standard's three structural grades, provided our grades exceed the established properties of Korean grades. Pending their review of the specific grade requirements, NIFoS indicated their willingness to include a table recognizing three appearance grades for each grade rule agency that are equivalent to the three appearance grades in the Korean Standard.

NIFoS had previously included only WWPA C Select, No2 Com, and No.3 Com as acceptable, to the exclusion of other species and rules. NIFoS confirmed, in the case of both structural and appearance grade lumber, that the requirements to label each piece in Korean, and to the appropriate Korean grade, will be the responsibility of the importer. The trade-off will be a the necessary provision of information to the importer regarding the equivalent Korean grade. It is unclear how this will manifest in the end, but discussion to date includes use of bundle tags or supplemental paperwork, etc.

A remaining unresolved item deals with the proposed Korean Lumber Standard being considered by the Korean General Assembly. It establishes parameters recognizing a foreign inspection institute or body (FQII). NIFoS indicated the Korean Forest Service's (KFS) position remains that ALSC or CSLAB (Canada) will not qualify as FQIIs, but that each accredited agency would be eligible to apply. However, NIFoS also noted that the amendment, if passed, would allow their input beyond that of KFS, and they agreed that recognition of accredited agencies through ALSC or CLSAB provided a much simpler solution than dealing with all the individual agencies.

NIFoS indicated they would continue to provide any further information they receive and noted they understood the reasons expressed by ALSC and CLSAB for recognition of the systems in whole.

For more information on this issue, please contact SEC.

Multifaceted: Student Furniture makes the Grade

As part of a series of programs partnering with Universidad Latinoamerica (ULA), our Mexico office recently concluded a student competition showcasing U.S. lumber materials in furniture. The winning piece, selected by a panel of furniture designers, architects, professors, and engineers (Ximena Beltrán Ortíz, Manuel Medina Ortíz, Hugo Egoavil Giménez, José Eskauriatza) will be displayed in future Latin American trade shows.

Incorporated into ULA's annual Universidada" activity in which students design a product and exhibit their design with mockups, the SEC-sponsored competition allowed students to work directly with U.S. softwoods, building familiarity with softwood lumber—an important investment in our future trade with Mexico.

In teams of two and three, students were asked to think critically about furniture use, designing a piece that served dual functions. The winners would have the opportunity to work with a cabinet maker to produce a prototype in real scale (maximum 1m x .80m x 1.10m) as well as travel to the U.S. to tour American-made buildings and learn about the benefits of softwoods in construction.

The winning piece, pictured above, is described by its designers:

"This is multifunctional furniture made with Eastern White Pine. The idea was to create a piece that occupies little space, but provides a comfortable spot for the user to sit and read a book. We decided to create a book case with drawers and benches that could also be used as a storage shelf; it is the user who decides the propose.”

Winners Pamela Hernández Buenrostro, Ximena Hernández Velasco, and Vianey Maldonado Villagómez travel to Seattle next week for tours of MillerHull's Bullit Center, The University of Washington Architecture department, and Pike Place renovations.

Reverse Trade Mission: China visits the West Coast

As China's economy continues to struggle, it becomes increasingly important to create ties with wood industry representatives in the East in order to understand their perspective on the downturn and the opportunities for growth during a strained period of trade. This is precisely why three Chinese delegates traveled to Los Angeles this March to participate in Western Wood Product Association's annual meeting, providing insight into the Chinese economy's impact on wood imports.

During their trip, the delegates (alongside a Chinese reporter) were able to visit Portland, where they toured four U.S. construction sites, each exemplary models of softwood construction that highlight the structural integrity and interior beauty of U.S. softwoods:

Clay Creative 72,000 square feet and six-stories tall, this wood-framed office building is built with timber beams, glulam, and flooring assemblies and expected to achieve LEED Platinum standards, becoming one of the most energy efficient buildings in Portland's central east side.
One North A two-building project surrounding 14,000 square feet of courtyard space, One North features a cedar-paneled exterior, interior Douglas Fir beams and columns, light-frame dimension lumber walls, and timber decking.
Albina Yard This office space is the first example of domestically fabricated CLT used in a building-wide structural system in the United States! The CLT panel floors were installed on site in under three hours and allow the structure to span longer distances with fewer beams.
The Hudson (Vancouver, WA) With its heavy timber structure and 15' high ceilings, each room in The Hudson has a unique floor plan that alludes to the open warehouse spaces that predominated the area in the early 1900s.

After touring Columbia Vista and Sierra Pacific Industries in Aberdeen, WA the next day, our Chinese visitors have a better understanding about our West coast softwood lumber species, their availability, and production.

Softwoods in Interiors: A Highlight of Green Building

Leading the charge in market education overseas, Brian Court of Seattle-based Miller Hull has given seminars in Guadalajara and Beijing on Green Building during August and October, using the award-winning design for the Bullitt Center as a case study. In addition to a waterless composting toilet system, rainwater harvesting system, and rooftop solar panels that yield an annual net zero energy use, the six-story office building features warm softwood interiors made up of glu-lam Doug Fir columns and beams.

Court mixes materials for the most effective structure and exposes the lumber frame not only to save on materials and time, but also for the texture and richness that wood visually provides within the space. The natural finish is an expressive element of the building's design, and resonates with tenants: surveys from employees working in the Bullitt Center report that the number one most-loved aspect of the building is the exposed wood, a critical component that brings life to the workplace during the Pacific Northwest's long, gray winters. "There is a movement where spaces are more flexible, fluid, less prescribed--timber is an element of that," explains Court, "it resonates with people on a primal, emotional level."

As a recipient of Federal financial assistance, the Softwood Export Council does not exclude, deny benefits to, or otherwise discriminate against any person on the basis of race, color, national origin, disability, or age in admission to, participation in, or receipt of the services and benefits under any of its programs and activities, whether carried out by the Softwood Export Council directly or through a contractor or any other entity with which the Softwood Export Council arranges to carry out its programs and activities. For further information about this policy, contact: Megan Haverman, 503-620-5946.

SEC is committed to providing equal access to all programs, activities and materials. Persons with disabilities who require special accommodation or alternative means for communication of information (e.g., Braille, large print, sign language translation) should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD), or the SEC offices.