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March 5, 2010

SFPA Begins Strategic Planning Process

Every four years, SFPA brings members together to discuss and map out a strategic direction for the next few years. An initial 2010 strategic planning session was held with members of SFPA’s Board of Directors last week at SFPA’s headquarters in Kenner, La. Member companies represented at the meeting were Anthony Forest Products Co., Conner Industries, Elder Wood Preserving, Georgia-Pacific LLC, Harrigan Lumber Co., McShan Lumber Co., Temple-Inland, West Fraser, Westervelt Lumber and Weyerhaeuser with proxies received from other companies.

The meeting began with a recap of the results of a survey SFPA conducted to assess the forest products industry’s needs (see story below). Participants then heard brief updates on SFPA programs from staff members before going into executive session to discuss what they feel is working for the association and what needs to be adjusted going forward. SFPA President Digges Morgan and the association’s staff will now compose a draft strategic plan based on the results of the board’s discussion with the draft plan to be reviewed at subsequent meetings.  “After additional feedback from the board, other members and key industry reps, the new strategic plan will be presented for board approval later this year,” Digges said.

SFPA Chairman Adrian Blocker of West Fraser said, “Across the industry, wood products companies are changing their strategies based on a continued difficult economy. In order to represent its member companies, SFPA must also be proactive in reevaluating its priorities to better align itself with this changing environment.”

Survey Helps Pinpoint Wood Industry’s Needs

As part of its strategic planning process, SFPA conducted a survey to determine what types of programs and issues are important to the wood products industry. The survey was sent to 596 people with 30% responding. Those invited to participate included all SFPA members as well as members of the Southeastern Lumber Manufacturers Association and other representatives of the forest products industry. Here are a few highlights.

When asked about the three top programs or services a wood products association could provide, the top vote-getters were marketing and promotion; legislative/regulatory services; and codes and standards. When asked to choose the top five secondary programs, public relations; market research; technical research; statistical and economic services; and product support and literature surfaced highest on the list.

Participants were also asked about industry challenges, opportunities, threats and weaknesses. Challenges included the economy, legislative and regulatory issues, resource issues and production issues. Respondents see opportunities to position wood as a green building material, grow markets and promote wood products. Threats include legislative and regulatory issues, the economy, alternative products and production challenges. Respondents identified weaknesses in marketing, green messaging and government affairs.

For more information about the survey, contact Eric Gee, SFPA’s director of Expo and forest resources, at 504/443-4464, ext. 214, or by e-mail at egee@sfpa.org.

NAHB Projects Improved Construction Activity in Late 2011, 2012

Economists for the National Association of Home Builders are projecting a possible “upside” on the horizon to balance the pain of the past few years. “Even as foreclosures continue to flood some of the worst-hit housing markets in the country, economists are beginning to sound the warning that today’s extremely low levels of new residential production could lead to significant housing shortages, especially among market-rate rental apartments, as household formation rates return to normal,” NAHB reports in a recent issue of its online weekly newspaper, Nation’s Building News.

NAHB economists project the construction industry will need to deliver 16 million homes over the next 10 years to keep pace with demand. As the excess inventory is worked off, which is likely by the end of 2012, the long-run demand for new housing — based on population growth, immigration and the replacement of losses from the housing stock — will average approximately 1.5 million single-family and 300,000 multifamily units annually, or about 1.8 to 1.9 million total starts, NAHB reports.

The article also includes a map showing how soon individual states may return to more normal levels of housing production. This looks especially promising in the South with Texas, Oklahoma, Louisiana, Mississippi and Alabama all sitting at the top of the list. Click here to read the full article and see the map.

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