After successfully completing Emerging Market Program assessments for several South East Asian countries in 2016 (members can read these reports here), SEC is moving forward into Phase II.  Phase II programs are allocated for grading and educational seminars in their country's respective locations, or in the United States.  Over the next two years, SEC will work with OSU & CINTRAFOR to schedule grading & educational seminars in South East Asia. The first of these seminars  will take place in Malaysia this fall.  Panels & Furniture Asia is promoting the seminars locally, as part of a larger Malaysia Technical Assistant Program, organized by SEC in conjunction with the Malaysian Wood Industries Association:

​Visitors can expect compelling talks touching on the grading of U.S. softwoods as well as get up close and personal with influential presenters from OWIC such as Scott Leavengood, director of OWIC; Chris Knowles, associate professor in Forest Products Marketing in the Department of Wood Science and Engineering at OSU; Eric Hansen, professor of Forest Products Marketing and Interim Department Head of Wood Science and Engineering at OSU; and Jeff Morrel, professor in Wood Science and Engineering at OSU with a specialisation in deterioration of wood and its prevention through preservative treatments ​

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

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.