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February 23, 2007

PRINTER-FRIENDLY VERSION  

Insights from NWPCA Conference

Near-record attendance for the annual leadership conference of the National Wood Pallet and Container Association (NWPCA) in Orlando last week provided a receptive audience for promotion of Southern Pine products. The meetings, social events, and exhibits all provided opportunities to learn about the material handling industry and expand this market for Southern Pine lumber. SFPA marketing VP Steve Bean staffed the Southern Pine Council display in the exhibit area. "The pallet and container industry is important to Southern Pine producers. To maximize our potential in this market, we need to attend this meeting every year and build relationships with the members. Most of them already know about Southern Pine lumber, but they need a knowledgeable authority they can trust to give them accurate answers and options for sourcing," Steve commented.

 

The majority of pallet and container manufacturers use hardwoods, but many use Southern Pine lumber, especially when phytosanitary labeling is important. In addition to international issues, several attendees reported problems with interstate shipments, especially to Illinois. They speculated that interstate shipments may become more closely monitored, forcing them to comply with "no-bug" standards for domestic shipments as well. Most attendees reported that business was good in 2006, and strong sales are forecast to continue into 2007.

 

This conference included a tour of Chep Pallet's Innovation Center and Perfect Manufacturing facility. Chep is the nation’s largest pallet manufacturer, and markets pallets and containers worldwide. The tour focused on the engineering Chep devotes to making better pallets, and efforts to create the most efficient manufacturing facility possible. The center’s director indicated that Chep would like to use more Southern Pine lumber for pallets, but were having trouble finding material cut and dried to their specifications. He promised to send details to Steve, for relaying to SPC members in the near future.

 

Banner Year for SP Exports

Exports of Southern Pine lumber during 2006 amounted to 330 million board feet, the highest volume of offshore shipments in six years. Compared with exports during 2005, shipments of bright SP was up 20% (228 MMbf); treated SP was up 21% (102 MMbf). Southern Pine was exported to more than 80 foreign destinations. The top five: Dominican Republic (+32%), Bahamas (-41%), Jamaica (+105%), Leeward/Windward Islands (+21%), and Spain (-3%). Taiwan (+59%) moved into the number six position. Exports of all U.S. softwoods also reached a six-year high, totaling 889 MMbf.

Imports of softwood lumber are another story. In response to continued lower demand in the U.S. homebuilding market, softwood imports dropped 22% in December, and were down 7% for 2006. Big losers include Brazil (-23%), Germany (-8%), and finally Canada (-6%). There were not many gainers in 2006, but China (+450%) and Chile (+16%) reached new highs. Total softwood imports dropped to 22.6 billion board feet, or close to 37% of total U.S. consumption.

 

New SFPA Member

SFPA welcomes Cox Industries, Inc. of Orangeburg, South Carolina, as its newest Affiliate member. Founded in 1954 as Cox Wood Preserving, the company was launched on one acre of land with three employees. Today, Cox Industries subsidiaries include ten locations producing a variety of pressure-treated products. Collectively, these facilities cover over 157 acres and employ more than 260 in four states.

 

Under the direction of company president W.B. (Bill) Cox, Jr. Cox Industries is on the threshold of its sixth decade, providing durable outdoor wood products for residential, commercial and utility applications. Cox brand-name products are distributed by selected building supply dealers, distributors and specialty stores throughout the eastern United States and overseas. Complete details about the company can be found at www.coxwood.com. Cox’s export sales manager Brian Hayson currently chairs the Southern Pine Council’s Treated Systems Committee, and can be reached at 803/534-7467.

 

Sawmill Assessment Form

The 6th annual Southern Pine Sawmill Assessment has been mailed to 300 sawmills across the South. Results of this survey provide Southern Pine sawmillers with operational and financial benchmarks for 2006. This third-party survey is available to all Southern Pine manufacturers and you are encouraged to participate. Companies can download a PDF at www.sfpa.org if you did not receive a questionnaire in the mail. You can also contact SFPA’s Wade Camp, 504/443_4464 ext. 217, or wcamp@sfpa.org to obtain the questionnaire. The deadline for receiving completed forms is April 27, 2007.

PRINTER-FRIENDLY VERSION  

 

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