Increasing the Use of Wood in New Brunswick Public Buildings

2010 Increasing the Use of Wood in New Brunswick Public Buildings

A study of the potential for increasing the use of wood in non-residential construction with recommendations for moving forward, undertaken for the New Brunswick Forest Products Association by the University of New Brunswick Wood Science & Technology Centre and Patrice Tardif Consulting. March 31, 2010

INCREASING THE USE OF WOOD IN NEW BRUNSWICK PUBLIC BUILDINGS

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Cover Photo Credits:

B e than y B i ble Co l le g e , Sussex, New Brunswick – 2007 Architects: Ar c hi te c ts Fo ur Ltd. Photo: Courtesy Goodfellow

Tr e e Se e dl i n g s Photo: Gérard Sirois Source: Images of New Brunswick

This publication may not be reproduced, published or transmitted, in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, whether or not in translated form, without the prior written permission of the New Brunswick Forest Products Association. Exempt from this requirement are the author, Patrice Tardif, representatives from the University of New Brunswick Wood Science and Technology Centre and Business New Brunswick who were involved during the preparation of the document, and funding partners.

This publication is designed to provide accurate information. Any errors and omissions are unintentional. The author is not responsible for consequences arising from the use of any information contained herein.

Fo r m o r e i n fo r m ati o n , p le ase c o n tac t:

New Brunswick Forest Products Association Mark L. Arsenault, President and CEO Hugh John Flemming Forestry Centre 1350 Regent Street Fredericton, New Brunswick Canada, E3C 2G6 Telephone: 506-452-6930 Email: [email protected]

Thi s publ i c ati o n i s avai lable at:

http://n bfo r e str y.c o m ///uplo ads//We bsi te _Asse ts/ NB FPA_In c r e asi n g _the _Use _o f_Wo o d.pdf

http://www.unb.ca/fredericton/forestry/wstc/publications.html

© Patrice Tardif Consulting All rights reserved

I NCR EA S I NG THE US E O F WO O D I N NEW BR UNS WI CK PUBLI C BUI LDI NGS

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Execut ive Summary

The New Brunswick wood products industry has not been immune to the economic turmoil of the last several years. Lower housing starts in the United States, the main export market for New Brunswick softwood lumber, a strong Canadian dollar, off-shore competition, and competition from the rest of Canada following resolution of the softwood lumber tariffs have all contributed to the effects on the province. The result for New Brunswick’s wood products industry has been mill closures, reductions in production capacities and job losses. The province had a near 2.2$ billion decline in balance of trade between 2004 and 2009, more than half of which was directly attributable to the forest products sector. There is an immediate need to strengthen the New Brunswick forestry sector and create new demand for wood products.

To fully appreciate the current position of the forest products sector in New Brunswick, an investigation into the existing reality for the sector was undertaken. The forestry sector was explored as was its relationship to the provincial economy. This was followed by an evaluation of the potential for increased wood use in the non-residential construction market, the ability of the design and construction community to design and build with wood, and other potential market considerations. Regulations affecting the built environment in the province were studied and any barriers and preconceptions affecting the potential for increasing wood use were identified. The efforts of various jurisdictions, in Canada and abroad, were reviewed to understand their responses to similar challenges. The recommendations, policies and regulations implemented in these jurisdictions were studied in an effort to understand what was successful and what wasn’t, with an eye to the relevance for the New Brunswick situation.

Based on the current reality for the forestry sector in New Brunswick and experiences in other jurisdictions striving for increased wood use, recommendations were developed to help direct the New Brunswick forest products industry on how to strengthen its position moving forward. The major components identified are listed below.

THE NEED FOR GOVERNMENT TO SET LIMITS ON THE CARBON FOOTPRINT OF THE BUILT ENVIRONMENT, an initiative which would spur the use of wood.

THE NEED FOR AN INDUSTRY COALITION, based on representation from all sectors, to develop a unified industry vision.

THE NEED FOR AN INDUSTRY VISION, based on positioning wood as helping to meet climate change reduction goals.

THE NEED FOR A MULTI-SECTORIAL COALITION, a group to coordinate industry initiatives in the context of sustainable development on socio, economic and environmental levels for the province.

THE NEED FOR A WoodWORKS! PROGRAMME, to support the design and construction community.

THE NEED FOR APPROPRIATE CURRICULUM AT UNIVERSITY, COLLEGE AND TRADE SCHOOL LEVELS, for adequate preparation of the manufacturing, design and construction workforces.


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THE NEED FOR RESEARCH AND DEVELOPMENT, to help develop products that meet specialized demands in world-wide markets. Consideration should be given to the needs for disaster relief housing, drawing upon an existing expertise in the province in the factory-built housing sector and in timber engineering.

CONSIDERATION OF A PAN-ATLANTIC APPROACH, to achieve maximum momentum for efforts in the Atlantic region on a global scale.

Activities related to each of these components can be found in the Recommendations portion of the report.


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THE NEED FOR RESEARCH AND DEVELOPMENT, to help develop products that meet specialized demands in world-wide markets. Consideration should be given to the needs for disaster relief housing, drawing upon an existing expertise in the province in the factory-built housing sector and in timber engineering.

CONSIDERATION OF A PAN-ATLANTIC APPROACH, to achieve maximum momentum for efforts in the Atlantic region on a global scale.

Activities related to each of these components can be found in the Recommendations portion of the report.


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Table o f Con ten ts

Executive S um m ary ..............................................................................................................ii

I ntroduction.......................................................................................................................... 1

The New Brunswick R eality .................................................................................................2

Forests................................................................................................................................ 3

Wood Products...................................................................................................................... 4

The Economy ........................................................................................................................ 5

The Non-residential Construction Market (ICI: Industrial, Commercial and Institutional).................... 7

Design/Construction Expertise in the Province ........................................................................... 9

Provincial Regulations Affecting the Forest Products Industry and the Built Environment..................13

Current Barriers to the Use of Wood in Non-Residential Applications .............................................15

Ef forts in O ther J urisdictions ............................................................................................. 18

British Columbia ................................................................................................................. 18

Quebec.............................................................................................................................. 20

Finland.............................................................................................................................. 24

France ............................................................................................................................... 26

New Zealand ...................................................................................................................... 29

O ther J urisdictions .............................................................................................................30

S um m ary ............................................................................................................................ 31

S trategic A pproach ............................................................................................................33

R ecom m endations..............................................................................................................35

Bibliography .......................................................................................................................38

A cknowledgem ents ............................................................................................................40

A PPENDI X A ........................................................................................................................ 41

A PPENDI X B ........................................................................................................................42

A PPENDI X C ........................................................................................................................49

A PPENDI X D ........................................................................................................................ 51

A PPENDI X E ........................................................................................................................52

A PPENDI X F.........................................................................................................................53


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In t roduct ion

Wood-specific policies implemented in various jurisdictions, here in Canada and abroad, have helped spur the use of wood in construction. The province of New Brunswick, with its strong wood industry presence, could be poised to help both its local industry and its built environment reap the benefits of increased wood use. More wood use in buildings would lead to a stronger regional economy and result in a more sustainable built environment. A more diversified value-added wood product sector would open markets for New Brunswick and create long-term growth and stability in the industry.

Environmental concerns, such as green house gas emissions and global warming, govern more and more of our daily choices; wood should be the natural choice. It is the only building material made from a renewable feedstock – trees. The use of more wood in New Brunswick buildings would also lead to buildings with a lower carbon footprint. Unfortunately, wood is not the natural choice in the non-residential construction sector. In eastern Canada, less than 10% of non-residential buildings (which include institutional, commercial, industrial and multi-residential buildings) are built using wood.1

In order to determine a future direction for growing the wood products industry in New Brunswick, it is important to first characterize the current context. To that end, information on the impact of the forest industry on the provincial economy was sought. An exploration of forestry practices in the province was undertaken, as was an inventory of products manufactured and their applicability to the built environment in New Brunswick. Incentives available to manufacturers for technological advances through government programmes were identified. The non-residential construction market was studied to determine the potential for growth in wood use for the sector as was the competence of current and future design professionals and builders to design and build non-residential buildings in wood. There was an examination of any disincentives to using wood in construction in the province as well as an identification of current legislation governing construction.

Once an understanding of the current context was reached, various jurisdictions were studied in an effort to glean useful information pertinent to the New Brunswick circumstance. The provinces of British Columbia and Quebec have both made recent changes to spur the use of wood in those provinces and the pertinence of their programmes in the North American context is key. Various players in Finland, France and New Zealand have also been active in attempting to validate and grow their respective wood consumption, with varying degrees of success. The study of all the aforementioned jurisdictions, with their respective experiences, provided invaluable information in determining an approach for the New Brunswick forest products industry. Industry and government will be shown to be essential ingredients to a successful campaign, but the interaction between the two, in conjunction with other important players, needs to strike a pertinent and effective balance.

It was not within the tasks identified for this project to elaborate on the environmental responsibility of wood products based on a convincing body of scientific evidence (e.g. responsible energy use and low polluting practices for harvesting the raw resource and manufacturing, carbon sequestration, thermal properties, renewability, etc.). There are many sources for such information and the reader is referred to the Canadian Wood Products

________________________________________________________________________________________________________ 1 Canadian Wood Council


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Information Portal at www.planetfriendlycanada.com. Comments in this report will be limited to the fact that, the superiority of wood products as regards their overall environmental impact, from material extraction, through product manufacturing, to the use of the products and their maintenance throughout their lifetime, has been demonstrated through the use of life cycle assessment (LCA). LCA is a scientific method of assessment used to determine the burdens placed on the environment by a product through all stages of its life. The model of record for life cycle assessments in North America, with worldwide recognition, is the Athena model, developed here in Canada.2

The goal of the currentproject was to elaborate on a plan of action for the New Brunswick wood products industry moving forward, in terms of strategies for growing market share as well as spurring production and product mix. This is done in such a way as to clearly determine what actions can be implemented easily and in a timely fashion, and what can be done in the medium and long terms to meet a common vision. Suggestions are presented on how to arrive at a common vision, and recommendations are made for the actions that will support it. There are also references in the report to aspects worthy of further investigation.

The New B run s wick Real i ty

In order to determine where to orient the future of wood use in New Brunswick, it is important to understand the current context. In this section, the New Brunswick forest industry will be put into a geographic and an economic context. The non-residential construction sector will be evaluated to determine the potential for appearance and structural wood product use; provincial regulations governing construction will be identified, along with any barriers keeping wood from reaching its full potential in the sector. Provincial incentive programmes are identified to clarify opportunities available to industry. Through these programmes there is a potential for assistance in responding to an increased demand for specialized products which would come from an increase in wood use in the non-residential construction sector or from emerging markets. The competence of the design and construction community is also estimated, as are existing programmes for the education of design and construction professionals and of forest industry employees (forestry and manufacturing). Changes needed in educational programmes could then be identified to insure appropriate expertise in wood processing, and design and construction disciplines for the province.

________________________________________________________________________________________________________ 2 Athena Institute – www.athenasmi.org.

Photo: Bil l Miller Source: Images of New Brunswick


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Fo r e sts

There is no doubt that New Brunswick is a forested province. Of the 71,290 km2 which comprise the province, 87% or 6.1 million hectares is forested.3 These forests and adjacent watersheds are home to over 40 different mammals, from the tiny Maritime Shrew to the impressive moose, over 100 birds, some amphibians and over 40 species of fish, native and naturalized freshwater and diadromous4 species.5

For the most part, New Brunswick’s forest is considered in the Acadian Forest region. The forest in the northern part of the province is considered in the Great Lakes – Saint Lawrence region. A mix of approximately 20 commercial species can be found in New Brunswick’s forests; certain areas are dominated by hardwoods (about 25% of the forested area), while softwoods dominate other areas (approximately 44%). The remainder of the forested lands are a mixture of softwoods and hardwoods.

The mix of private vs. public forested lands for New Brunswick is as follows:

Ow n e r shi p % o f To tal

Pr o vi n c i al Cr o w n Lan ds Public 51

Fe de r al Cr o w n Lan ds Public 2

In dustr i al Fr e e ho ld Lan ds Private 18

Pr i vate Wo o dlo ts Private 29

The federal Crown lands are protected (military base and National park lands) and approximately one-quarter of the provincial Crown lands are classified as Conservation Forest. The remainder of provincial Crown lands are managed primarily for timber production, although those lands also have recreational uses and other non-timber values. Forest management strategies are employed to ensure well-distributed self-supporting populations of vertebrates (mammals, birds, amphibians) and fishes on crown lands, including six old-forest wildlife habitat types on which approximately 50 species of vertebrates depend. Approximately 1.2% of all New Brunswick forest lands are harvested yearly. There were no recorded losses due to insect infestation from 2006 to 2008 and negligible loss due to forest fires during that time (0.015%).6 The latter is in large part due to easy access networks resulting in quick response times, as well as the province’s humid climate.

As of 2002, public lands have been required to meet third-party certification to a sustainable forest management programme so there is virtually no deforestation in these areas. There is

________________________________________________________________________________________________________ 3 Source: Natural Resources Canada 4 Encarta Dictionary: describes fish that migrate between fresh and salt water 5 NB Department of Natural Resources 6 ibid

Fundy National Park of Canada, Southern New Brunswick Photo: J.-F. Bergeron Source: Images of New Brunswick


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an increasing amount of plantation forest in the province, 13% of Crown lands are now plantation forests, leading to an increase in stands with similar-aged trees.7 Nearly 100% of Crown lands and industrial freehold lands are certified to the Sustainable Forestry Initiative’s sustainable forest management programme (SFI). Very little of the private woodlots are certified to sustainable forest management programmes. Seven marketing boards8 were established to help market primary forest products from private woodlots. The boards oversee silviculture programmes for private woodlot owners but certification is not required. As of 2007, New Brunswick had nearly three-quarters of its forests (4.7 million hectares) certified to sustainable forest management programmes.9

Wo o d Pr o duc ts

There are many different products manufactured in the province although volumes have decreased considerably in the last five years, mostly as a result of the economic downturn and resultant production slowdowns and mill closures. The United States being the primary export market for the province keeps the New Brunswick forest industry very dependent on the economy there. Just over 75% of NB’s sawn lumber is destined for the U.S. market each year.10 Unfortunately, during the time that this report was prepared, there were no published or unpublished sources of information available to ascertain volumes for wood products classified in the secondary (wood I-joists, panel products, etc.) and value-added sectors (kitchen cabinets, manufactured housing, mouldings, etc.) in New Brunswick. Most of the information amassed is for the Atlantic region in general. As such, it is difficult to ascertain the availability of products being manufactured within the geographic extent of the province to meet current or a potential increased demand.

A list of wood products manufactured in the province can be found in Table 1.

Table 1 – Wo o d pr o duc ts m an ufac tur e d i n Ne w B r un sw i c k:

Pr i m ar y Se c o n dar y Value -Adde d

dimension lumber (structural softwood)

cedar lumber hardwood lumber

planks/boards (HW)

heavy timber

I-joists (with captive MSR graded lumber)

floor trusses MDF

particleboard

finger-jointed white pine and SPF veneers

fencing, railing, decking, newel posts

shingles and shakes siding

MDF mouldings kitchen cabinets

doors and windows

cabinet doors pressure-treated

products thermally modified wood

pallets

manufactured housing timber-framed housing

Other products, such as poplar plywood and glued-laminated timber, were once manufactured in the province put those facilities now lie dormant. An oriented strand board facility which currently is not operational may be coming back online in the near future. At present, poplar

________________________________________________________________________________________________________ 7 The diversity of species and age-mix of forest tracts were not quantified for this report 8 Marketing Boards were empowered by the New Brunswick Natural Products Act. 9 Source: Canadian Sustainable Forestry Coalition/FPAC/FAO 10 Source: Maritime Lumber Bureau


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plywood, OSB and glulams, along with thick MDF for moulding production, MSR lumber, laminated veneer lumber and other elements, have to be imported to meet market demands.

Other than wood products, the forest industry also comprises pulp and paper production, pulp for the textile industry, Christmas tree farming, pellets for bio-energy, and maple sugar operations. Although these sectors were not examined for this report, it should be noted that in November 2008, the provincial government announced the New Brunswick Crown Land Forest Biomass Harvesting Policy11 following several years of research at the University of New Brunswick in Fredericton. The policy applies to 3.3 million hectares of Crown land and will make one million cubic metres of forest biomass available yearly. This material, according to the Minister of Natural Resources at the time (Hon. Donald Arsenault), will “help reduce energy costs … explore new forest market opportunities … (and) support other economic development initiatives …”

The E c o n o m y

New Brunswick can be said to have the most forest dependent economy of any province in Canada. The forest products industry, which includes primary forestry operations, pulp and paper, as well as wood products manufacturing, contributed 5.2% to New Brunswick’s Gross Domestic Product in 2008, down from 8.4% in 2004.12 New Brunswick is the dominant player when it comes to the forest products industry in the Atlantic region, contributing 72% of the total output of wood products and 58% of the total pulp and paper output for all four provinces. As of 2005, there were approximately 50 communities in the province that were dependent on the forest products industry13 but this has eroded somewhat since then with several more plant closures in recent years.

In 2008, 12,800 people (that’s one out of every 15 New Brunswickers) were directly employed by the province’s forest products industry – 70% of them in rural areas. This number can create two to four times that number in indirect employment. Approximately 8,800 of those employed worked in the forestry, logging, and wood products manufacturing sectors (i.e. excluding pulp and paper). It should be noted that these figures are down 25% from just two years prior – the harsh reality of our economic times – and there is a continual decline. The Miramichi/Bathurst/Dalhousie region was particularly hard hit as mill closures in the area resulted in a loss of employment for nearly 15% of the workforce. Private woodlot owners have been particularly hard hit in the past few years as these producers have borne the brunt of many mill closures. Pulp mill closures in particular have impacted harvest levels and the rural communities where they were the primary employers. In addition to job losses due to mill closures and production slowdowns, the New Brunswick forestry industry workforce is

________________________________________________________________________________________________________ 11 Effective October 22, 2008 – Policy No. FMB 019 2008, www.gnb.ca 12 APEC 13 ibid

New Brunswick Sawmill Photo: Gérard Sirois Source: Images of New Brunswick


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diminishing, in general – an increasingly aging labour force will be hit with a large wave of retirements in the near future without a real upswing of new recruits to take up the slack. The allure of higher paying jobs in provinces such as Alberta is too much to ignore.

An APEC report published in 200814 takes a comprehensive look at market fluctuations in the past 10 to 15 years in the Atlantic region that have affected the forestry economy. Market fluctuations can be attributed to exemption from the U.S. softwood lumber tariffs on the up side, and the strength of the Canadian dollar and a reversal of Asian reliance on North American wood and paper products as their own mills ramped up domestic production on the down side, among other pressures. The economic downturn which has severely affected North America resulting in important declines of housing starts in the U.S. has resulted in a sharp decline of exports for New Brunswick. Always an important component of New Brunswick’s balance of trade, a balance of trade which saw a decline of nearly 2.2$ billion between 2004 and 2009; 1.2$ billion of that decline was directly attributed to forest products.15 This reality has been exacerbated by competition from the rest of Canada following the “resolution” of the lumber tariffs. Prices for New Brunswick lumber have also been high when compared with B.C. beetle lumber which has inundated the market, adding more pressure to a beleaguered industry. The fallout has been, as elsewhere in North America, consolidations and mill closures. It must be said that capital investments in the New Brunswick forest industry in the last few years have been limited. Smaller, more outdated facilities cannot benefit from the economies of scale that larger more modern facilities can take advantage of during difficult economic times.

The New Brunswick wood products industry cannot be said to be high up the value chain as regards its wood products mix, having largely relied on the U.S. demand for its superior quality softwood lumber products. It is becoming apparent, however, that reliance on U.S. markets may be a thing of the past. There is a need for a broader vision; one might say a vision to “abroad.” New Brunswick is strategically placed, with access to marine shipping that would be envied by most and which will need to be capitalized upon moving forward. There will be a need to think globally in the development of the New Brunswick industry, with higher value products, to fill specific needs in order to create new markets. The U.S. may not be a reliable export market in the long term.

G o ve r n m e n t Assi stan c e Pr o g r am m e s

Business New Brunswick (BNB), a provincial government department with the responsibility for facilitating business and economic development in the province, has several assistance programmes that could be of benefit to the value-added sector of the forest industry moving forward. Of the Priority Clusters identified by BNB, the Value-Added Resource Cluster (Value-Added Forest and Energy) and the Life Sciences Cluster (Bio-Technologies and Environment) have the potential to help New Brunswick’s forest products industry. Specific programmes worthy of note include:

Technology Adoption and Commercialization Programme (technological innovation and pre-commercial product development);

Trade Assistance Programme (development of new export markets);

________________________________________________________________________________________________________ 14 Atlantic Provinces Economic Council, August 2008, Building Competitiveness in Atlantic Canada’s Forest Industries: A Strategy for Future Prosperity 15 Statistics Canada – See Appendix A


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Financial Assistance to Industry Programmes (start-ups, expansions, job maintenance);

Strategic Assistance (non-competing business development strategic to NB’s economic growth);

New Brunswick Growth Programme (sustainable employment, new business opportunities).

There are also some federally-funded programmes for industry to consider:

Atlantic Canada Opportunities Agency (ACOA) – Business Development Programme

Industry Canada – Small Business Financing Programme

More detailed information can be found on these and other programmes in Appendix B: a transcript of the presentation given at the University of New Brunswick Wood Science and Technology Centre by Business New Brunswick, in March of 2010.

Unfortunately, New Brunswick’s softwood lumber producers are not able to benefit from these programmes without jeopardizing Atlantic Canada’s exemption status as stipulated in the Atlantic Canada Special Exemption Clause under the Canada / U.S. Softwood Lumber Agreement. As a consequence, softwood lumber producers wishing to modernize or expand into the value-added sector must do so with no reliance whatsoever on funding assistance from government, whether in the form of grants, subsidies or non-repayable loans.

The No n -r e si de n ti al Co n str uc ti o n M ar ke t ( ICI: In dustr i al , Co m m e r c i al an d In sti tuti o n al)

The non-residential construction sector in New Brunswick, which includes industrial, commercial, institutional and multi-residential buildings, is often referred to as the ICI sector. Although the New Brunswick housing stock is primarily wood-frame construction, similar to the North American housing stock in general, the same cannot be said of buildings in the ICI sector.

Since October 1, 2009, the governing building code in New Brunswick has been the 2005 National Building Code of Canada (NBCC). The NBCC would allow for 70%, if not more, of non-residential buildings typically built in New Brunswick to be constructed using wood structural systems. The actual number of ICI buildings built using wood is far less than that; in general the percentage falls between 7 and 9%. Values for New Brunswick building permits in the ICI and multi-residential construction sectors as prepared by Statistics Canada for 2007 to 2009 can be found in Appendix C. The permit values demonstrate where the potential for wood products exists, according to major construction types and size (or permit values). They also show important changes in investment for the province in the past three years. Several statistics are worthy of note, namely:

The industrial sector has seen a 60% drop in new construction since 2008 and a 55% drop when compared with 2007.

Aboriginal Heritage Gardens, Eel River, New Brunswick– 2006 Architects: David Foulem Architect Inc. Photos: Courtesy Goodfellow


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Commercial buildings have seen a 62% drop since 2007.

The construction of recreational buildings has seen an increase in activity for each of the past two years with only two facilities built in 2007, but with 12 facilities built in 2009.

Educational building needs have been consistent for the past two years in terms of investment but smaller schools were built in 2009 – the number of schools built doubled but the permit values were very similar for the last two years. There was a large increase in educational building permit values between 2007 and 2008 due to one large facility being constructed.

Multi-residential buildings, primarily in the 0 to 250,000$ range, have maintained their market share, for the most part throughout the period, both in terms of permit values and numbers of buildings. This is an important sector, which is typically predominated by wood-frame construction, although larger, higher permit value projects may not be built in wood. This was not, however, able to be ascertained.

Health care and related building account for a large portion of the ICI permit budget for 2009, up considerably from previous years; 2009 permit values more than quadrupled since 2007, and more than doubled the 2008 values.

The government building and public service building sectors saw a marked increase in 2009 with two projects claiming permit values over 10$ million each.

If we conservatively estimate the value of ICI construction in 2009 for New Brunswick using the permit values from Appendix C, leaving out all the multi-residential projects, we arrive at a figure of just over 331$ million. (It should be noted that these Statistics Canada figures include design and legal costs but exclude land costs.) By applying some rule of thumb estimations, reasonable assumptions can be made to draw a picture of the potential for increased wood use in the ICI sector.

If we consider that, on average, 8% of New Brunswick’s non-residential buildings are built using a wood structural system and that there is a potential for 70% of those to be built in wood, the following holds:

% & value o f bui ldi n g s that c o uld be bui l t i n w o o d

% & value assum e d to be bui l t i n w o o d

Un tappe d Po te n ti al

70% (estimated) – 230$ million 8% (average) – 26$ million 204$ million

The amount of a project budget that is accorded to materials, including the structural system, can be from 30 to 70% of the total project cost. If we assume an average of 50% for structural systems, it would follow that the potential for increased wood use in the structural systems of non-residential buildings in New Brunswick could be valued at just over 100$ million per year. It should be noted that these figures only include new construction in the ICI sector, no additions to existing buildings or major renovations and retrofits are included, nor is any multi-residential potential. Add to this any interior and exterior finishing materials in wood and the amount would be greater still.16 Any attempt at quantifying lumber volumes implicated in these numbers would not be accurate. Suffice it to say that there is an untapped potential for wood use in the non-residential construction sector in New Brunswick. There are certain products necessary for the construction of larger scale buildings which are not currently manufactured in the province, as was noted earlier.

________________________________________________________________________________________________________ 16 Buildings constructed with a structural wood system can be expected to use more interior and exterior wood finishes.


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Another opportunity for increased wood use exists in the bridge-building industry. New Brunswick has a history of covered bridges with 46 still in use of the current 62-bridge inventory – down from over 170 plus “in the day.” There is very little in the way of state-of-the-art highway and secondary road bridges, however. Of the 2,800 bridges on secondary roads in the province (i.e. excluding Routes 1 and 2), less than 200 use treated wood stringers and beams, or composite construction. According to a representative at the maintenance and traffic branch of the NB Department of Transportation, it is a question of price, longevity and functionality. The current standard is for 100-year life spans for the province’s bridges, and with road loads on a continual upswing, the perception is that wood doesn’t have what it takes. The preference is for high-strength concrete with stainless steel or FRP rebars, and steel. An apparent premium for a wood bridge also seems to be a deterrent, although cost differentials were not confirmed. New Brunswick’s neighbour, Nova Scotia, on the other hand, has a good inventory of road bridges built in wood, both from older stock and of more recent construction. Nova Scotia has an inventory of 2,000 wood bridges, representing half of its secondary road bridge inventory. There have been some extraordinary bridges built on major highways in Europe; the province of Ontario has recently built highway bridges using wood as well. The technology exists but there don’t seem to be consultants in New Brunswick having a comfort level with that technology, so concrete and steel have been the materials of choice.

De si g n /Co n str uc ti o n E xpe r ti se i n the Pr o vi n c e

There are various degree and diploma programmes in the province, with the capacity to produce most of the design and technology needs, with the exception of architecture degree programmes and heavy timber construction specialists. These will be discussed later. Existing programmes for engineering and construction expertise are listed in the following tables, along with their pertinence to the New Brunswick reality.

The Mather Creek Bridge on Highway 71 approximately 100 km south of Kenora is a 14 m long prototype of a new generation of bridges in Ontario. The construction was completed in 2009 and uses CCA-treated PSL timber/carbon fibre composites on the underside and precast concrete deck panels up top. Since this prototype, two more have been designed with a greater than 20 m span and the strength of the system would allow for even longer spans. Photo: Ray Krisciunas, Ontario Ministry of Transportation


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Table 2 Un i ve r si ty De g r e e Pr o g r am m e s:

Sc ho o l an d Pr o g r am m e

# stude n ts/yr % that stay Re le van t i n fo r m ati o n

UNB Fredericton

BSc Forest Engineering

5 students/yr

almost entirely from Atlantic region

40% Fi e ld o f study: wood science & technology; wood products; system design; structural analysis & design; environmental; wood engineering & performance of structural wood systems only if electives taken

Wo r kfo r c e pe r ti n e n c e : forestry or EWP companies, consulting engineers for forest road construction

UNB Fredericton

BSc Civil Engineering

Note: first year in Saint John

45 students/yr

85% from Atlantic region

approx. 80%

F i e ld o f study: structural wood design only offered as an elective every two years

Wo r kfo r c e pe r ti n e n c e : those who opt in can perform structural wood design

Table 3 Di plo m a Pr o g r am m e s:



NB Community College

Moncton

Civil Engineering Technology Diploma (2- year programme)

Mostly from NB

Year 1: 120

Year 2: 60 (for those going into a specialty)

approx. 70% stay in NB

Fi e ld o f study: Concrete, steel & timber design; structural analysis, National Building Code; construction management; building envelope; material testing; architectural design. Timber instruction is light frame

Wo r kfo r c e pe r ti n e n c e : construction work; construction manager; structural & architectural technicians; draftsmen

No te : Year 2 specialties include architectural or engineering technology, building systems, roads, or construction management. For architectural and engineering technology: just design, no application; wood techniques are just light frame, no heavy timber.


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Table 4 Tr ade Sc ho o l Ce r ti fi c ate s:



NB Community College system (several campuses)

Carpentry Certificate

77 students/yr

100% from the Atlantic region

Nearly all stay in the Atlantic region

F i e ld o f study: wood & wood products; building envelope; National Building Code; wood framing techniques; footings & foundations

Wo r kfo r c e pe r ti n e n c e : carpenters for building companies; contractors

Campbellton College

Woodworking Production Management Certificate (40 wks in two years) and Woodworking and Cabinetmaking Certificate (40 wks in one year)

Year 1: 24

Year 2: 15

Mostly from the Atlantic region; a few from Quebec

75% stay in the Atlantic region

25% go to QC

Fi e ld o f study: CAD; wood working techniques; CNC; production operation management; tooling; drafting fundamentals; cabinet making techniques

Wo r kfo r c e pe r ti n e n c e : wood product manufacturing personnel; supervisor or manager

Carpenter Training Centre of NB

Carpentry Training Certificate (40 wks)

100 students in three in-takes during the year – all from the Atlantic region

90% remain in the Atlantic region

F i e ld o f study: Form work; framing techniques; drafting and blueprint reading; operations of hand & power tools & equipment

Wo r kfo r c e pe r ti n e n c e : qualified carpenter for residential, commercial & industrial job sites

Bay Tech College

Carpentry Certificate (14 weeks)

18 students in three in-takes during the year – all from NB

100% stay in NB

Fi e ld o f study: Materials of construction; interior & exterior finishes; building codes & standards; blueprint reading; framing techniques; formwork; operation of tools & equipment

Wo r kfo r c e pe r ti n e n c e : carpenters for building companies, contractors & cabinet makers

There is no architecture programme in the province of New Brunswick but there is one at the Dalhousie University School of Architecture. The programme does not have required courses dealing specifically with wood design. There are courses to impart general knowledge on the following relevant topics:


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building technology, for the fundamentals in building construction and materials, as well as mediating the relationship between interior and exterior environments;

building systems integration, to understand the effect of forces on building systems interaction with envelope systems; and to understand the relationship between buildings, their systems and the people who use them.

There are no specific courses for wood use in design, however there are two graduate level elective courses dealing with wood. They are:

From Timber to Lumber – The course syllabus reads more like a forestry class than a wood design class. It deals with the state of the Acadian forest, logging practices, wood lot management,17 primary and some secondary transformation. The course also includes an introduction to life cycle assessment, carbon sequestration and timber framing.

From Lumber to Structure – This course contains the “wood design” programme at the Dalhousie School of Architecture. It teaches how to design a residential-scale sawn-lumber home. Most of the reference books date from the 50’s, 70’s and 90’s. There are two documents dating from 2001 and one reference document dating back to 1897. There were no references to the National Building Code of Canada or to CSA O86, the Canadian standard for structural wood design, in the syllabus.

For all intents and purposes, even if students opt into the elective courses dealing with wood, they would not be prepared to enter the design market with an adequate knowledge of available materials or wood-frame construction and techniques.

The trades’ schools do not have any training for building with heavy timber although, if the demand were there, two of the schools surveyed would be interested in moving forward with such a specialty. One was private; the other was a community college.

There are a handful of large architectural firms in New Brunswick, located primarily in Moncton, Fredericton and Saint John. A number of smaller firms and single architect firms exist as well; they are located throughout the province but primarily in the same aforementioned city centres. There seems to be a predilection for joint offices in the Moncton area, where architects share common studio space to facilitate collaboration on larger projects, if need be. There are several architectural firms in New Brunswick interested in wood construction with the knowledge and desire to design non-residential wood structures but there have been difficulties in getting initial designs past the engineers who seem to have more of an interest, and facility, with steel and concrete designs. It is often the engineer on a project that will determine the eventual structural system used, according to those interviewed. The Architects’ Association of New Brunswick represents the province’s architects; a requirement for continuing education units is overseen by the Association.

A spokesperson for the association representing professional engineers in New Brunswick, The Consulting Engineers of New Brunswick, stated that all their structural engineering members have the capability of designing with wood. That expertise, however, may not lie with engineered heavy timber structures; most such buildings that have been built in the province in the recent past have used engineering services from provinces west of the Atlantic region. The local engineering expertise seems to lay more in the design and construction of

________________________________________________________________________________________________________ 17 There is more private forest land in Nova Scotia than in New Brunswick.


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light-frame wood buildings, whether residential scale or larger scale, and steel or concrete buildings for the non-residential sector.

The Construction Association of New Brunswick is a federation of associations which represents the building community in the province. There are associations representing electrical, mechanical, roofing and masonry contractors, and a few general construction associations; one in Moncton, one in Fredericton and one in Saint John. As far as construction companies with expertise in erecting engineered heavy timbered structures, there aren’t many. Steel erectors have been used to build such wood structures in New Brunswick in the recent past. There is a design and build firm in the Miramichi region which designs and erects their own post and beam structures. There is also at least one expert in the Fredericton area who does some heavy timber erection. Expertise does exist with a few other individuals in the province who are not currently working in the sector.

Pr o vi n c i al Re g ulati o n s Affe c ti n g the Fo r e st Pr o duc ts In dustr y an d the B ui l t E n vi r o n m e n t

As previously stated, the 2005 National Building Code of Canada (NBCC) is the building code of record for the province of New Brunswick. The NBCC applies to buildings under provincial and federal jurisdictions, as well as to those under the various municipal and Local Service District jurisdictions. Wood structures (referred to as combustible construction in the NBCC) are allowed in all occupancy categories, not only in Residential Occupancies of four storeys and under (Group C). The 2005 NBCC permits wood structures in certain Assembly Occupancies (Group A, Divisions 1, 2 and 3), Care or Detention Occupancies (Group B, Division 2), Business and Personal Services Occupancies (Group D), Mercantile Occupancies (Group E), and Industrial Occupancies (Group F, Divisions 1, 2 and 3). As with the four-storey stipulation for residential applications, there are also stipulations for structural wood use in these other occupancies dealing with the maximum number of storeys permitted, the need for sprinklers, fire-resistance ratings of assemblies within the building, building area, occupant loads, etc. Wood elements (referred to as combustible elements in the NBCC) are also allowed in buildings with non-combustible structural systems.18 There is much opportunity for wood use in New Brunswick’s non-residential buildings.

There exist opportunities for the forest products industry in New Brunswick in the context of the 2007-2010 New Brunswick Climate Change Action Plan launched in June 2007. The Plan outlines the government’s vision for a sustainable future by setting a series of targets and policy actions. The Climate Change Plan defines targets for renewable energy, waste reduction (diversion and recycling) and energy efficiency, among others, in an effort to mitigate greenhouse gas emissions and reduce them to 1990 levels by 2012 (in conjunction with other federal programmes), and a further 10% reduction by 2020. Funding is available for environmentally-focused research with an eye to creating markets for environmentally preferable products; and for energy efficiency and pollution prevention efforts in the public and private sectors as well as for non-profit initiatives throughout the province. Some forest products companies have implemented actions to improve efficiency and reduce their greenhouse gas emissions, with a resultant increase in direct and indirect employment.

________________________________________________________________________________________________________ 18 Refer to section 3.1 of the 2005 NBCC


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The provincial government intends to lead by example by adopting best environmental practices and sharing lessons learned with other levels of government and with the public. The government recently released a sustainable development policy, in line with energy reduction targets in the Climate Change Action Plan, which will be implemented in three phases. The Provincial Green Building Policy for New Construction and Major Renovations addresses energy performance requirements, the use of an integrated design process, as well as green building rating programme requirements (LEED® and Green Globes™). All new buildings and major renovations that are funded in whole or in part by the Government of New Brunswick will be affected by this policy.19

The province of New Brunswick is working toward a lower environmental footprint in general, and the wood products industry is in a position to be a significant player in helping them to

achieve that. Wood products are viewed as the most environmentally-responsible construction material, according to life cycle assessments, when considering environmental impacts such as acid rain, smog, global warming potential, ozone depletion, air and water pollution, fossil fuel depletion, water use, habitat alteration, health, and other impacts through life cycle stages.20 The use of structural wood systems leads to lowered environmental footprints for buildings.

In line with the desire for a lowered environmental footprint and with targets identified in the Climate Change Action Plan, there exists another opportunity for the government to further the cause: the recycling of construction and demolition (C&D) waste for certain products. Half of the waste generated that ends up in landfill sites is C&D waste, and a good part of that is wood. C&D waste is regulated through the New Brunswick Department of Environment and landfill sites in the province are mostly operated by solid waste commissions that have been established in accordance with provincial legislation. Tipping fees vary from site to site and are set by site owners – they are not regulated.21 C&D waste materials aren’t sorted for the most part except at the Westmorland-Albert Solid Waste facility. On their own initiative, Westmorland sorts all of their C&D waste; lumber pallets are ground and used as biomass to

fuel their two boilers which supply all the necessary heat for their wet and dry waste management. Although sorted, other than the pallets, the rest of the construction waste goes unutilized.

Without the incentive or requirement to recycle, very little wood from C&D waste is recycled, regardless of the recyclability of the materials. In areas across Canada where increased

________________________________________________________________________________________________________ 19 The square footage of the building will determine the level of compliance that will be required. 20 Life cycle stages include resource extraction, manufacturing, construction, occupancy and maintenance, demolition, recycling/reuse and demolition. 21 There are no provincial waste disposal sites.

University of New Brunswick, Fredericton Heating Plant Wood Boiler – installation date: 1984 The consumption of wood fuel has historically accounted for half of the fuel utilized by the UNB Fredericton heating plant. With the rising price of oil over the years, this wood boiler with its economical fuel source has been instrumental in helping UNB maintain stable tuition fees.


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tipping fees have been implemented for recyclable C&D waste, industries were developed to use construction waste and take-back programs were implemented by manufacturers. The technology exists to “clean” wood and render it suitable for further processing; there is the possibility of sourcing wood waste for biomass. New Brunswick’s budding wood pellet industry could potentially benefit from such sources. New Brunswick already has a history of wood use for energy generation. Wood is the second most important energy provider in the province after petroleum, at 16% of the energy generation.22 This is in large part a result of government initiatives in the 1970’s which resulted in a significant number of government buildings using wood for their primary energy needs (e.g. schools, hospitals). There exists a clearly untapped potential in C&D waste in the province.

Although the wood products industry touts the recyclability of wood as an important attribute, the incentive for actually putting that into practice is lacking. Consideration should be given to the Canada-Wide Action Plan for Extended Producer Responsibility, as put forth by the Canadian Council of Ministers of the Environment in October 2009.23 Policies implemented in line with the Plan would provide incentives to producers for taking responsibility of the end-of-life management of their products.

Cur r e n t B ar r i e r s to the Use o f Wo o d i n No n -Re si de n ti al Appl i c ati o n s

There are no regulations in New Brunswick specifically dealing with a restriction on the use of wood in non-residential buildings, except of course as regards the building code of record. The 2005 NBCC limits wood frame construction to four storeys high. The majority of New Brunswick’s non-residential buildings would fall under that height restriction yet wood is not the material of choice. There are several reasons for this, a major one dealing with perceptions.

There is a perception that wood is not a “modern” material. Since Canada’s history with wood-frame construction is so long-standing, and the majority of the architectural and engineering programmes do not have required courses in wood, there is a lack of knowledge as regards the advances in the industry in the last 20 years and its applicability to modern structures. This leads to common misconceptions as regards the possibilities for wood and just how current it can be as a building material.

As the NBCC limits wood construction to four storeys, the perception is that wood is only applicable to residential applications, whether single family or multi-residential. Compound this misconception with another – that only Part 9 buildings can be built in wood – and the perception becomes: because non-residential buildings are not built according to Part 9, then they can’t be built in wood. In fact,

________________________________________________________________________________________________________ 22 Source: New Brunswick Department of Energy – statistics for the early 2000’s. 23 http://www.ccme.ca/assets/pdf/epr_cap.pdf

Cathedral of Christ the Light, Oakland, California – 2008. Architects: Skidmore, Owings & Merril l , San Francisco. Photo: César Rubio


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many non-residential buildings that fall under Part 3 of the NBCC can be built using wood. The only buildings that absolutely cannot be built in wood are certain detention facilities and certain high-hazard industrial buildings. As has been shown in Ontario, even hospitals can include wood construction. Only specialized courses in wood construction would concentrate on this interpretation of the Code but such courses are only available as electives and no evidence was found of such information forming a part of the curriculum for those elective courses.

There are concerns regarding the harvesting of our forest resources. The perception exists that the forest industry is irresponsible as regards logging practices. That New Brunswick has a higher percentage of forest lands certified to third party sustainable forestry management schemes than most other provinces in Canada is a little-known fact. What is perceived is that the forest is being indiscriminately exploited without thought to biodiversity or reforestation.

There is a perception that building larger structures with wood is more expensive. It has been ascertained that there is an apparent lack in expertise for the design of engineered heavy timber structures in the province. There is definitely a lack of engineered wood manufacturing facilities within the provincial boundaries (glulams, LVL, parallel strand lumber) making it necessary to source these materials from outside the province. It may very well be that these circumstances have painted an unrealistic picture with regards to the cost of heavy timber structures. The reality is that heavy timber structures are comparable if not more economical than steel or concrete buildings, when considering construction costs, delay times, building operations and management, and life-time use of the buildings.

As regards the potential use of forest biomass for energy (co-gen facilities, pelletization), the perception is that not only will we harvest our resources indiscriminately for lumber products, we will endanger the future generations of forest by depleting the soil of its nutrients when we remove slash from harvesting sites for biomass. Very important studies were undertaken at the University of New Brunswick in Fredericton on that very topic – results for which have garnered interest world-wide due to the scientific data which clearly demonstrates the needs of the forest for regeneration and the potential for biomass use. The responsibility that industry holds its forestry practices to is as yet an unknown phenomenon.

Another misconception which exists deals with the success of the concrete industry to position concrete as green. The perception is that aggregates and water are locally sourced and that it’s only the manufacturing process that creates greenhouse gases. There appears to be a lack of understanding as regards the levels of pollutants resulting from the concrete manufacturing processes and from life cycle impacts of building materials in general.

Thunder Bay Regional Health Services Centre, Thunder Bay, Ontario – 2004 Architects: Salter Farrow Pilon Architects Inc. Photo: Peter Sellar, KLIK Photography, courtesy of Farrow Partnership Architects Inc.


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There are certain municipal inspectors that will refuse wood on a construction site for just cause – if the wood does not meet the standard requirements specified in the NBCC. This typically arises when a woodlot owner / builder uses his own wood on a building site without going through the standard grading and stamping procedures. There also exist some general concerns over moisture problems, fire resistance and durability when considering wood use. The lack of familiarity with the use of wood in larger-scale buildings has led to a lack of knowledge in detailing – detailing which is important in dealing with these potential problems in any structural system. As well, a lack of understanding in operation and maintenance of buildings can also lead to problems in a building, no matter what materials are used. The results of these knowledge gaps are problems which make the news (e.g. B.C. Leaky Condos) and give the perception of problems with the materials, which are in fact problems in detailing and competence.

These above-mentioned perceptions and misconceptions lead to misgivings about the products and a distrust of industry – huge challenges to overcome. Couple this with another major component in current disincentives to using wood, the green building movement, and we approach a perfect storm scenario. Although wood is the most environmentally sound building material choice, certain green building rating programmes paint another picture. The green building rating system which is making the most headway in North America is LEED, which stands for Leadership in Energy and Environmental Design. For reasons which are beyond the scope of this paper, the LEED rating system excludes all wood not sourced from FSC (Forest Stewardship Council) certified forests from their requirements for certified wood. This excludes nearly 100% of the wood harvested in New Brunswick; the certification scheme primarily used in New Brunswick is SFI (Sustainable Forestry Initiative). Other aspects of the LEED certification system result in other materials having access to more point value than does wood, giving the perception that wood isn’t as green as other materials. With LEED being implemented in various regulatory initiatives (including initiatives at the New Brunswick Department of Supplies and Services – DSS) this propagates a disincentive to using wood, when science tells us we should be going in the other direction. There are green building rating programmes with more comprehensive approaches, using life cycle assessment to determine the environmental footprint of buildings, and recognizing all three forest management schemes utilized in Canada (FSC, SFI, CSA). One such programme is Green Globes. NB DSS representatives have understood the merits of this programme and have recently modified their requirements for new public buildings to include Green Globes as an alternative rating scheme.

The New Brunswick construction industry could definitely benefit from having more engineered wood products (EWP) manufactured within its boundaries. The lack of glulam, laminated veneer lumber (LVL), oriented strand board (OSB) and other EWPs limits a design professional’s choices, which in and of itself is a barrier. The current economic downturn

Zénith Concert Hall , Limoges, France – 2006 Architects: Bernard Tschumi Architects Photo: © Christian Richters


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makes it difficult for companies to consider investing in new technologies and bringing new production on-line when the markets are slow. So, in the interim, most non-residential buildings are built in steel and concrete.

There are several jurisdictions, here in Canada and abroad, that have battled the same perceptions and barriers noted above with varying degrees of success. In determining the best approach for New Brunswick, it was beneficial to study these other jurisdictions to evaluate their pertinence to the New Brunswick reality. In doing so, it will be possible to learn from the victories as well as the defeats in an effort to move forward with a new era for wood use in this province.

Efforts in O ther Juris dict ion s

B r i ti sh Co lum bi a

BC’s land mass is 947,800 km2; BC’s forest lands are 64% of that, or 60 million hectares – the forested area alone is larger than France, and more than eight times the size of New Brunswick. Crown lands account for 95% of the forested area. There were 54.3 million hectares certified to sustainable forestry management programmes as of January 2009 – representing more than 90% of the forest resource in BC. Although containing less than 20% of Canada’s forested land, BC produces 24% of Canada’s merchantable wood, manufacturing the lion’s share of Canada’s sawn lumber and plywood. Predominantly coniferous forests account for BC’s forested lands, which account for one-half of Canada’s softwood inventory. There are 84,000 direct jobs in the manufacturing sector alone. The wood products industry manufactures one-half of BC’s manufactured goods and one-half of BC’s exports. There is no doubt of the importance of the wood products industry in British Columbia – for British Columbians and for Canada.

Currently, less than 0.5% of BC’s forest is harvested yearly – less than is planted in the province over the same period. Only 2% of

BC’s forest lands have been lost over the province’s history (to urbanization, ranching and agriculture). Regardless of these facts, the forest industry has a history of being plagued with controversy over the logging of old growth forests (the coast forest, Clayoquot Sound, Vancouver Island). This long standing issue has been in the public eye for many years and on the government’s radar screen as well. Some government regulations for the responsible harvesting of the wood resource in BC that have been implemented over the years include:

1949 – Allowable Annual Cuts (ACCs) for public and some private lands;

mid-1989’s – three acts were put in place by the BC legislature to help the Ministry of Forests oversee their responsibilities of forest management;

1996 – Forest Practices Code came into force, put in place to ensure sustainable development of BC’s forest resources;

January 2004 – The Forest and Range Practices Act and supporting regulations were put in place to govern the practices of forest and range licensees.

Richmond Olympic Oval, Richmond, British Columbia – 2008. The largest structure to be built for the Vancouver 2010 Olympic Winter Games Design Team: CannonDesign Photo: Stephanie Tracey, Photography West


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BC’s wood products industry can be said to have a unified vision, especially in light of having to stick together through adversity (harvesting issues, US lumber tariffs, the pine beetle infestation, the recent economic crisis). With the size of the industry, a common vision, and the importance of the industry for British Columbia, there has been a good working relationship established between industry and government. This has led to various initiatives in the province over the past decade, the combination of which has succeeded in raising the profile for wood construction and paved the way for the decision to enact Bill 9 – the Wood First Act, in October of 2009. Here are some of the important contributing initiatives:

development of Forest Innovation Investment (FII), set up by the BC government in 2003, to help support the BC forest economy in an environmentally sustainable and prosperous fashion. Included in its mandate: o position BC as global supplier of environmentally responsible wood products;

o assure demand for BC forest products in Canada and in world markets;

o combat market barriers; o help maintain the BC forest product industry’s contribution to the province’s

economy.

WoodWORKS! BC – an initiative of the Canadian Wood Council, in place in BC since 2000, has succeeded in raising the profile of wood construction in the province by providing education, training and technical expertise to the design community, municipal planning and building departments, etc., for the non-residential construction sector. A few WWs initiatives include:

o the creation of wood champions to help spread the word and develop buy-in; o 2010 initiative for the Olympics, to insure wood construction and products figured

prominently in Olympic venues (five-year initiative); o wood design competitions and wood design awards;

o technical assistance at all levels (construction, codes and standards, etc.);

o WWs is recognized by the province as a resource to help communities moving forward with the new Wood First Act requirements as well as local wood first resolutions and by-laws.

The Wood First Initiative, established by BC’s Ministry of Forests and Range to promote the choice of BC wood products in construction, had as a key component to prepare the groundwork for implementing the Wood First Act. As part of this initiative, a vision was developed and presented in February 2009, a vision in support of the development of the value-added industry in BC. Key elements for implementation of this vision will exist in the development of: o the Wood Enterprise Centre, to champion implementation of the Wood First policy,

for technology transfer, market expansion and training; o the Value for Wood Secretariat, to facilitate access to government, encourage

investment in the sector and spur strategic alliances.

Amendments to the BC Building Code, based on the National Building Code of Canada, 6 April 2009, to allow for six-storey wood-frame construction for residential buildings (an initiative spurred on by efforts to increase low-rise solutions in the Pacific Rim).


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As can be seen from the long-standing initiatives in British Columbia, setting the stage for the development of a wood culture in British Columbia has been a long-term, many facetted process with much support from industry and government. Couple this phenomenon with a Premier who believes in the wood products industry and the timing was ripe for the development of a policy regarding the use of wood in public buildings. Stakeholder consultations focused on wood industry sectors were held before deciding on an approach. On October 9 of 2009, the BC legislature enacted Bill 9 – the Wood First Act. Its stated purpose: to “facilitate a culture of wood by requiring the use of wood as the primary building material in all new provincially funded buildings” to be consistent with the BC building code and in support of forest dependent communities.

No one can argue about the front and center visibility that wood products and wood construction received at the Olympics, for which the BC forest products industry is sure to reap benefits (and so will Canada). However, the backlash from competing industries in the province following the enactment of the Wood First Act, especially from the concrete industry, was immediate. In hindsight, the stakeholder process prior to moving forward with this initiative may have benefitted from having a more open, multi-industry approach. A certain amount of energy moving forward will be concentrated on responding to concerns expressed from a number of fronts. This may have been inevitable, regardless.

Since the implementation of Bill 9, very positive fallout has been the adoption by responsible parties in various municipalities of the Wood First Act tenets for their jurisdictions – seven municipalities at last count. These initiatives could prove to be as significant in helping to move BC’s wood culture forward in the long run as the Act itself. The current government has shown its commitment to the wood products industry and is committed to continuing its support through any subsequent mandates.

Que be c

Quebec is Canada’s largest province at 1.67 million km2. Of that area, 761,000 km2 is densely forested – 46% of the province, the size of Norway and Sweden combined. This represents 20% of Canada’s forest lands. Commercial forests account for 55% of the forested area in Quebec, or 418,550 km2 – that’s nearly 42 million hectares, about six times the size of the province of New Brunswick. Publically owned Crown lands account for 92% of Quebec’s forests; the remainder are privately owned.

The forest in Quebec has three distinct forest types in latitudinal lines from north to south, the boreal forest to the north is dominated by black spruce; 35% of this sector is set aside for commercial forestry but only about 20% is accessible and suitable. The mixed forest is a transitional zone between the boreal and deciduous forests. The latter, composed primarily of hardwoods, is in the south. Less than 1% of Quebec’s managed forest is harvested yearly. There are 120,000 direct jobs in the forest products industry in this province, a number which excludes indirect employment. More than 250 communities are considered forestry dependent. The forest products industry is the most significant contributor to the manufacturing sector in Quebec.

Quebec’s geography is special in that it is surrounded by water on three sides, in addition to which it is intersected by the Saint Lawrence Seaway – a main thoroughfare and shipping lane linking the Atlantic with the Great Lakes. Nearly 90% of Quebec’s population lives along the Seaway in the southern deciduous forest region.


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Throughout the history of Quebec’s forest industry, one would be hard put to find an event which has polarized the Quebec people more than has the documentary released in 1999 by Richard Desjardins and Robert Monderie: l’Erreur boréale (Forest Alert). The film exposes, rightly or wrongly, an impression of the forest harvesting practices in northern Quebec that has been nearly impossible to shake and which has left an indelible mark on the attitude of Quebecers as regards the use of wood in construction – a 200 year-old tradition in Quebec.

Notwithstanding the indisputable scientific evidence of the environmental responsibility of wood products and their use, the belief in the general population of Quebec can be paraphrased thusly: we shouldn’t be cutting trees … period. This attitude combined with the long-standing US lumber tariffs, waves of insect infestation, reductions in logging quotas and a fragile economy have created a harsh climate for the Quebec wood products industry. In the face of such adversity, industry has nonetheless succeeded in developing a much sought after value-added sector. Forest products account for one-third of Quebec’s exports.

Some history worthy of note leading up to the current climate of change in Quebec as regards the use of wood and a new vision for a beleaguered industry is noted below.

The Forest Act, 1986, established methods and requirements for management of the forest resources. The latest revision was in 2007, with other changes announced in “The Green Paper.”

In 2000, chemical pesticide use for the eradication of insects and disease was discontinued, in line with the Forest Protection Strategy (1994).

In 2003, the government of Quebec placed a northern limit on timber allocations in the boreal forest.

In 2004, the Coulombe report identified errors made in calculations for allowable forest cuts, setting the stage for considerable decreases in available commercial forest resources (Bill 71 – 2005; 25% reduction implemented in 2008), the appointment of a chief forester (Bill 94 – 2005) and a different approach to forest management (Bill 49 – 2006).

The WoodWorks! programme (CWC programme) was officially implemented in the province in 2004, following a pilot project in 1998. An action plan was developed by industry to increase the use of wood in non-residential construction. Funding was procured from industry and from provincial and federal governments. In 2007, the programme oversight transferred to a Quebec entity and was renamed cecobois. Programme representatives provide services to design professionals to help with interpretation of the Building Code, designing with wood in non-residential applications, product availability, understanding the environmental responsibility of wood as a building material and the impacts to the life cycle implications for buildings that use wood.

In October 2006, the Quebec Government announced the Forest Sector Support Plan, a $720 million package to assist the forest sector. The Plan was put in place to provide assistance with job losses in the sector, for communities affected by mill closures, for new approaches to forest management, and in support of business investments and restructuring efforts.

In 2007, a multi-stakeholder summit was organized by Laval University to discuss the future of the Quebec forest sector. There were representatives from industry,


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government, academia, research, labour, wildlife/recreation/tourism, environmental organizations (NGOs), multi-sectorial organizations, forestry, and First Nations. A common vision resulted from this multi-stakeholder event on the following topics:

o protected areas (increase to 8%); o the value extracted from forest resources (to double in the next 25 years);

o forest governance and management issues;

o forest certification; o First Nations involvement; o increase the use of wood in construction in Quebec.

The government of Quebec announced the Strategy for Wood Use in the spring of 2008 with the primary objectives being an increase to the use of wood in non-residential (industrial, commercial, institutional) and multi-residential applications and, by so doing, contributing to a reduction in greenhouse gas emissions. Specific targets are fixed for increases in wood use and carbon sequestration by 2014, with $16 million slated to help achieve those targets. Actions identified include:

o a requirement to elaborate a wood option during the initial design phase for all government buildings, which would be the chosen option up to a premium of 5%;

o an increased use of appearance products as interior and exterior finishes for new public buildings or renovations to existing public buildings;

o a commitment on the part of the Quebec government to petition municipalities to incorporate similar measures;

o in the multi-residential sector, financial support for innovation in product and technology research and development, and assistance with the homologation of such new developments;

o the development of tools to facilitate the use of wood in non-residential applications by financially supporting cecobois and its action plan;

o implementation of a Quebec wood alliance for the promotion of wood use and to instil a sense of pride in its use, to be overseen by QWEB.

The government of Quebec made announcements later in 2008, commonly referred to as “The Green Paper.” The message was one of sustainability: sustainability of Quebec’s forest resources, sustainability of Quebec’s communities and societal structure, and sustainability of Quebec’s economic viability. Specific orientations were established to achieve the following five objectives:

o development of the value-added wood products sector and the development of a greater appreciation for the use of wood in building, and as an energy source, based on its environmental merits;

o development of a sustainable forest management strategy to increase timber yields and quality;

o establishment of regional management protocols for forest management with a multi-stakeholder approach;

o stabilizing resource access to foster a more competitive forest products industry;


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o incorporate climate change considerations in forest management protocols, and building material and energy choices, to validate wood’s carbon sequestration benefits.

In February of 2009, the Quebec government announced an action plan regarding forest biomass. The backbone of the plan is to reduce the demand on polluting fossil fuels by substituting clean, renewable energy sources with lower greenhouse gas emissions, in a direct response to the recommendations in The Green Paper. Actions identified deal with rendering forest biomass available, reducing Quebec’s dependence on fossil fuels, support research and development into alternative uses of forest biomass (fuel additives), and a stimulation of the demand for forest biomass.

The CoalitionBoisQuebec(Quebec Wood Coalition), put in place to serve as a resource to those wishing to counteract climate change and support the Quebec economy by building with wood, first appeared on the scene in September of 2009. The Coalition was not a government-led initiative, but rather the environmental community, with the help of academia and the value-added sector. It is co-chaired by the Dean of the Faculty of Forestry, Geography and Geomatics at Laval University and an environmentalist, and includes representatives from municipalities, organizations representing design professionals, the construction industry, the value-added sector and more. The Coalition attempts to represent a true cross-section of Quebec’s society and, with the message being delivered by academia and the environmental sector, it appears to have an open reception. Even Greenpeace Quebec, an organization which has not always been an ally, sees this initiative in a position light. The CoalitionBoisQuébec is not seen as a short-term initiative, the preference being to build a strong foundation on which to grow a strong support for the use of wood in environmentally sound buildings.

As with other jurisdictions in Canada, Quebec has not borne the present economic climate without consequences for the wood products industry. The whole of Quebec society has been implicated in the development of a vision to assist this struggling industry. Government and industry collaborations have been crucial to the implementation of programmes that will

Parc Chauveau Soccer Complex, Quebec City – 2009 Architects: ABCP Architecture and Hudon Julien Associés. Photos: Courtesy cecobois

Édifice Fondaction, Québec City – 2009 Architects:GHA architecture et développement durable. Photos: Louise Leblanc


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make a difference. The approach integrates the whole of Quebec society; it is not seen as a short-term initiative but rather takes a long-term view with the understanding that people’s minds will not change overnight. Efforts are bearing fruit – several significant buildings have been constructed using wood in the past few years. The most recent include an interior soccer stadium, the Parc Chauveau Soccer Complex, and the first six-storey wood-frame office building in Canada, Fondaction. Both buildings are in Quebec City.

F i n lan d

At 30 million hectares, Finland is four times larger than the province of New Brunswick. The forested area accounts for 74% of Finland’s land mass with a larger proportion of private ownership than public, at 68%. This latter fact explains in part how the movement to use more wood in that country started with the private sector. Coupled with a long-standing validation of the forest industry by the general populace, however, it didn’t take long for government to become involved with a movement that would see the use of wood double in ten years.

The Finns were early out of the gate when it comes to a country-wide interest in moving forward with the promotion of wood use. Like New Brunswick, the forest industry is a very important component of Finland’s economy – it is the third largest industry in the country. When, in the late 1980’s, the private sector formed a coalition to further the industry, Wood Focus Oy, government was quick to come on board. Industry started with a unified vision; government helped to subsidize their efforts. The public support aspect was key to the successes experienced in Finland. It meant that not only was industry promoting the use of wood, but so were representatives in the public sector. In fact, four consecutive governments have made the wood file an important aspect of their commitment to their constituents.

The current initiatives, ultimately responsible for doubling the use of wood, commenced in 1999 as the National Forest Programme. In 2000, this programme was rolled into the Finnish Government programme coordinated by the Ministry of Agriculture and Forestry and the Forest Council. The Forest Council is an advisory board with representation from various administrative sectors, the forest industry, NGOs and other expert organizations. Some of the key elements to the successes of the Finnish model include:

active R&D activities:

o focused on timber construction, wood processing and product development;

o six national programmes (including the Public Wood Buildings programme) have been instrumental in helping to develop new technical parameters for timber construction resulting in the open timber construction;24

o result in improved competitiveness of wood construction systems.

cooperation between educational institutions (spear-headed by the industry-led central competence network):

o the Wood Studios, a jointly-funded initiative, which has assisted in:

• getting wood instruction included in architecture programmes at a university level;

• wood-related aspects being included in vocational and polytechnic curricula;

• raising the level of competence of the design and construction sectors. ________________________________________________________________________________________________________ 24 For more information, go to www.puuinfo.fi.


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o wood industry made information available to students free of charge which led to jointly developed guidelines now used as teaching and learning materials;

promotional activities:

o WoodFinland action programme brings together skills and knowledge that create greater synergies.

In conjunction with these efforts, Vision 2010 – an industry/government-led collaborative vision, replete with its own supporting programmes of promotion, lobbying and research, moved forward with a specific agenda: grow the use of wood. Most programmes in place now are there to support this vision (The Year of Wood, Time of Wood, etc.). Yet another programme, the WoodEurope Campaign, started in 2001. This programme had one underlying theme – praise wood for its attributes, take no competitors down in the process. This approach allowed for government buy-in with no significant opposition to the programme from competing industries, although the concrete industry has threatened to attack Finnish programmes on the grounds of unfair competition, they have never made good on their threats. Had the Finnish example not taken the “high road,” the impetus may have been greater for the concrete industry to act.

For over 20 years, multi-pronged programmes have been put in place to address specific issues of importance as they arose. Some were short-term and short-lived, being discontinued when their goals were achieved; others were longer-term and are ongoing. The influence and confluence of the multi-dimensional elements which comprise the Finnish scheme have resulted in wood solutions for the built environment that garner worldwide interest (e.g. the modern wooden city). The National Forest Programme has received the go ahead by the current government, in principal, to continue with its initiatives until 2015.

From the start, the Finnish industry was not looking for short term gains; they had a long-range, extended vision. The results are incontestable – an increase in wood usage and an overall steady increase in the gross worth of the industry which resulted in secure employment for the sector and strong regional economies, as well as increased tax revenues for a more profitable national economy. As promotional, lobbying and R&D efforts expanded in the early 2000’s to include partners in Europe and the Far East, however, the joint funding scenario became more complicated to manage. Industry no longer had a handle on how their monies were being spent and they stopped contributing to the efforts in 2006.

Funding efforts for the wood products industry changed considerably starting in 2006; promotional efforts in Finland were cut by 66% and discontinued in Europe altogether; R&D virtually ceased. The attitude became one of doing the minimum to maintain the status quo. The result, in combination with the harsh economic times being felt around the globe in the past few years, was a loss in market share. The lesson learned – maintaining market share requires active involvement in education, promotion, codes and standards works, R&D, lobbying, etc.; joint efforts are required by all parties as competitors are always in the wings to take over if you let your guard down. The Finnish government firmly believes that the wood products industry is an important aspect of the future for their country and industry is once again becoming engaged with new programmes to help regain lost ground.


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Fr an c e

The French experience with forests is much different from that of New Brunswick. The dense forest that covered the majority of France’s 550,000 square kilometers 2000 years ago was considered a hostile environment to hunter/gatherers. As population grew and agriculture took hold, the forests of France were encroached upon until less than eight million hectares of forested land existed in the early 1800’s. The Forest Law of 1827 was the first attempt to stem the tide of forest destruction. Subsequent efforts over the ensuing years succeeded in building the forests to a point where 30% of France’s territory is now forested – 16 million hectares with 120 different species of trees in “metropolitan” France, eight million hectares in overseas territories; much of the latter remains unexploited. Reforestation efforts account for an additional 30,000 hectares yearly with only 60% of that being harvested. In metropolitan France, two-thirds of the species are hardwoods (oak, beech, chestnut, etc.) and the remainder are soft woods (pine, spruce, fir, etc.). France currently has 11 million hectares of productive forest lands which employ nearly 450,000 people (in consideration of both direct and indirect employment), a very different situation from New Brunswick.

There is much diversity in the French forest, both with respect to species mix and with respect to ownership. Private ownership accounts for 75% of the forested lands, 10% is owned by the state and 15% has a communal ownership (public). Only 30% is managed to regulations defined by France’s Forestry Code. There are over 3.5 million private owners of small parcels of forest lands (less than one hectare), with virtually no forest management implemented. There are five million hectares of forests certified to sustainable forest management practices in France.25 The forest has two main geographic areas, the south-west – one of the most important forested areas in Europe, and the east where the majority of France’s wood products manufacturers are based.

In 2006, 90% of the wood-framing companies in France had fewer than 10 employees (artisans). This fact, along with the dispersal of the majority of forest ownership in the private sector and a resultant lack of a common view, have all contributed to France being slower to make technological advances. Although France is now catching up, this history keeps France somewhat behind the pace when compared with countries with a more consolidated and diversified wood products sector.

Several initiatives and realizations paved the way for the current wave of interest in the wood products industry in France:

The National Committee for the Development of Wood – 1995 – started a promotional campaign to tout the use of wood in construction, with varying degrees of success. National and regional actions were explored – some of the more important ones resulting in specific actions can be found below.

The Law for Air (la Loi sur l’air) – 1996 – based on the premise that everyone had a right to breathe clean air that wouldn’t negatively impact health. Article 24 of the Law states that, to reduce energy use and limit pollution sources noxious to human health and the environment, technical specifications for construction and the maintenance, use and eventual demolition of buildings would be controlled. But, more importantly, it was stated that certain new constructions would need to include a minimum amount of wood as of January 2000 to contribute to the improvement of

________________________________________________________________________________________________________ 25 Source: Certification Canada/FSC/PEFC/MTCC


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air quality by carbon sequestration in the built environment. On-line calculation tools were made available to facilitate calculations.

The Forest – A Chance for France – 1998 – a report by former Minister Jean-Louis Bianco, resulting in the following principle recommendations to government:

o increase the labour force in the wood products industry by one-fifth; put monies (one billion French francs) toward that increase in an effort to start bringing France up to par with other countries;

o adopt a forest strategy following stakeholder consultation resulting in a 10-year action plan;

o revitalize the forest products industry at all levels, to save and develop jobs;

o finance competitiveness and employment by re-establishing a working National Forest Industry Fund;

o implement a certified sustainable forest management programme;

o elaborate a plan for the use of wood in construction, which would include a minimum use of wood in public buildings to meet the Law for Air, education of the design community (initial and continuing), collective promotional efforts, and research and development;

o develop the use of wood as biomass;

o manage forest lands through the National Office of Forests to increase productivity;

o favour negotiations and contracts between state and regions in the forest strategy and establish singular territory/project contracts;

o simplify and consolidate regulations for the management of natural spaces and put a moratorium on new regulations except for simplification measures;

o develop leisure get-aways to bring people into the forest;

o develop forest fire protection and risk management efforts;

o consolidate research efforts.

The storms of December 26 and 27, 1999, wrought massive destruction to buildings, infrastructure and forests throughout Europe and brought much attention and renewed interest to the forest sector.

The Wood/Construction/Environment Accord – 2001 – signed by government and main professional organizations. The group agreed on the principal benefits of wood construction to meet the requirements of the Law for Air and to fight global warming. Objectives revolved around communication plans, marketing efforts, competitiveness, research and development, education, regulation and standardization (e.g. building codes).

Although established in 1985, only around 2004 did ENSTIB, the National School of Wood Science and Engineering at the University of Nancy, finally started seeing a surge in interest from architects and engineers for designing with wood, following years of communication efforts. Since 2004, there has been a marked increase in wood expertise in the country.


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The Grenelle Environment Round Table (le Grenelle26 de l’environnement) – 2007. The 2007 Grenelle was called to define the key points of a public policy plan on ecological and sustainable development issues. Ambitious goals were set and of the resultant legislative commitments detailed in October 2007, one bill focused on climate change and greenhouse gas emissions. The sectors most affected included construction and transportation, responsible for 40% of total emissions.

Charters signed in the Vosges (as well as other regions) – 2007 – to influence the use of wood for energy and in construction. The focus was on a life cycle assessment approach, for constructions with 30 year life spans, and the use of local materials (most resulting from the 1999 storms). In general, these charters came with increased subsidies to those projects using wood. Steering committees were formed to assist with efforts, composed of representatives from ENSTIB, local government representatives and CRIBOIS – the Resource Centre for the Wood Products Industry.

The report on the development of the wood products industry by Jean Peuch, former Minister, for President Sarkozy – April 2009 – enumerated dozens of propositions revolving around assistance for small forestry owners, modernizing the industry, and the development of a true wood spirit. This was followed by an announcement in May of 2009 by President Sarkozy of the following measures, among others: o monies (Strategic Wood Fund) to help with consolidations in wood products

industries (wood-frame and biomass) to bring French operations into the mainstream, at a competitive level with the rest of Europe;

o required wood use in new buildings to increase tenfold in 2010, and a certified wood requirement in public buildings;

o doubling or tripling of costs for energy use from co-gen plants by 2011; o monies to be made available to help those private owners who exploit their forest

lands in a sustainable fashion; o provide affordable help to small private owners, who don’t exploit their lands, to

spur active forest management and use; o 1.5 billion Euros over three years for research, education and industry.

Similar themes can be found in the efforts over a 10-year span. Have any of the above-mentioned initiatives helped? In terms of single family construction, there has been no marked increase for wood use between the years 2000 and 2008 – wood use still sits at about 4 – 5% for this market, except for one specific region, the Vosges. Initiatives in that region (wood charter) have made wood use increase from 17% to 25% during the same time period. There is also an increased interest and commitment to wood use by certain companies, even some of the larger companies, but it is still a very small portion of their sales. Wood use in France is at best one-third that of other countries in Europe and North America.

Neither is France immune to the harsh economic times that the rest of the world finds itself in. The wood products sector isn’t helping that by being (in conjunction with the furniture sector) the second contributor, behind energy, to a negative balance of trade for the country, another reason why an increase in wood use domestically would be beneficial. With 40% of the annual forest growth remaining unexploited, and the policies currently in place, France could have what is necessary to

________________________________________________________________________________________________________ 26 Grenelle is a term used for a conference that brings together government, local authorities, trade unions, business and NGOs (voluntary groups) on an equal footing.


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turn this around. There appears to be a real momentum for change in France. Thirty-three committees were put in place following the Environment Grenelle to draw up legislation based on the objectives validated by President Sarkozy in late 2007, including the minimums for wood use. As well, objectives from the United Nations and the European Union with respect to new construction will find their way into French law – resulting in renewable energy increases, GHG reductions and energy efficiencies in all new buildings by 2012. Add to that the recent announcements by President Sarkozy and the commitment to increase renewable energy sources from 9 to 23% by 2020, with one-third of this energy coming from wood sources, and it may well be that interest in biomass portends a wave in the tide for future development of the wood products industry in France. All that being said, regional efforts, such as those in Vosges, appear to have been more successful, what with specific efforts and generalized buy-in, than the country-wide wood minimum initiative.

Ne w Ze alan d

New Zealand’s history with its forests has been quite different from the New Brunswick experience. Its land mass is over three and one-half times that of New Brunswick at 268,021 km2 (26.9 million hectares) of which 23% is natural forest and 7% is plantation forest. Since the late 1990’s, ownership of forested lands has primarily resided with the private sector. Over 99% of wood products in New Zealand come from plantation forests.

Although there is some Maori ownership, the majority of the plantation forest is owned by overseas and local companies. The off-shore location of many parent companies, in combination with the fact that, of the 1.8 million hectares of plantation forest nearly 90% is Radiata pine – a non-native species – may be behind an apparent lack of public “attachment” to the plantation forests in NZ. Add to that a domestic consumption which is considerably less than the amount of available raw resource, the surplus of which comes entirely from non-native plantation species, and you find exports (primarily to the Pacific Rim) being an important part of this forest culture. The sustainably managed plantation forests in New Zealand are highly productive. The country’s forests account for 0.05% of the world’s forests yet supply 1.1% of the world’s forest products trade. Over 25% of New Zealand’s logs are exported, over 40% of their lumber, and more than half of their panel board products as well.

About 22,000 people are directly employed in forestry and primary wood processing in New Zealand and the wood products industry contributes 3.4% to its GDP. The country has a strong forestry training programme in the Forest Industry Training and Education Consortium (FITEC), an industry owned facility established under the Industry Training Act. The FITEC covers forest education and training from harvesting through production, to credit and financing, resulting in nationally recognized qualifications. The FITEC is responsible for setting and assuring the quality of national standards, and are involved with promoting the forestry sector as a viable career option.

Two initiatives of note are worthy of exploration in the New Zealand context.

In November of 2006, the New Zealand government at the time initiated the Timber and Wood Products Procurement Policy. The Policy states that all government departments were to use legally sourced timber and wood products. The departments were also “strongly encouraged” to use products coming from sustainably managed forests. There was to be consideration of making the sustainably managed forest encouragement a requirement in 2008 but the current government opted not to go that route, preferring to minimize compliance costs in light of the harsh economic climate.


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In July of 2007, the then Minister of Forestry announced a new programme that would move New Zealand forward in their quest of carbon neutrality for government services: all government buildings up to four storeys would be required to provide for a commissioned wood structure option for consideration. Three incentives were put in place to encourage the use of wood in the non-residential sector:

o establishment of two key professorships in wood design, one at each of the country’s engineering schools;27

o partial funding for the development of web-based technical information to meet architects’ and engineers’ needs; the NZWood website has been established with information available on wood products, their properties, performance, sustainability, uses, etc.;

o requirement of wood option for consideration on all government buildings up to four storeys in height.

One of the main reasons given by the Minister of Forestry for the requirement to consider the wood option was based on the importance of sustainability in the built environment. The announcement tied in with other requirements regarding New Zealand Green Star ratings for buildings housing government staff. A new government was elected before the programme could be implemented (although the professorships were both established). Representatives from that government opted not to implement the requirements for the wood option, once again with a view to minimizing compliance costs in light of the harsh economic climate.

O ther Juris dict ion s

There are other jurisdictions which have succeeded in making inroads to increase the use of wood. Some might warrant further investigation as efforts for New Brunswick move forward.

A specific area in Austria, the Vorarlberg region, has had some successes worthy of study. This region based a new economic development centered on wood with spectacular results – the region exemplifies eco-responsibility in the built environment and, on a broader scale, a responsible societal model.

There are also efforts underway in Sweden to increase the use of wood in construction in general, non-residential in particular, as well as in bridges – efforts that are in-line with on-going works in Finland. It should also be noted that industry in Sweden was behind the development of the “Wood for Good” campaign in place in the UK, a programme that has been active since 2000. Wood for Good provides wood-based information with respect to sustainable construction on-line and through publications. A parallel can be drawn between this campaign and the Sustainable Building Coalition in Canada and the Planet Friendly Canada forest products information portal.

The UK government is pushing for carbon neutrality by 2016 and will be establishing databases with information on life cycle inventories for all products, including construction materials.

Environmental declaration labels are being considered at point of sale in France and Japan for 2011.

All these initiatives have the potential to position wood favourably. ________________________________________________________________________________________________________ 27 One of those professorships, in the Department of Civil and Environmental Engineering at the University of Auckland, was filled by Canada’s own Dr. Pierre Quenneville.


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Summary

The importance of the forest products industry for New Brunswick is indisputable. That it has suffered in the last five years is unfortunately also indisputable. The forest industry’s contribution to the New Brunswick GDP was down considerably in 2008 as can be expected from the mill closures and job losses resulting from the economic downturn and the other stressors identified. The wood products industry in New Brunswick is in peril and there is a need to build it back up. The opportunities for this industry start at home, at the resource end and working through the value-chain to increased markets.

The forests will always be a tangible part of the province of New Brunswick, 87% of it to be precise; a natural resource belonging to New Brunswickers. Although 75% of the forest is certified to sustainable forest management practices, and there is virtually no deforestation, 100% certification would demonstrate the importance placed on that resource by the people of New Brunswick and make a very strong statement in target markets. Increased efforts are needed on the part of private woodlot owners to adhere to certified forest management practices and the government could have a part to play.28 The plantation forests in New Brunswick are increasingly single-aged stands. Considerations for bio-diversity of the forest resource, which includes age diversity, will be instrumental in fighting insect infestations and to assure the resource needs in support of a broader wood product mix.29

Research undertaken at the University of New Brunswick in Fredericton regarding forest biomass use in the development of carbon neutral energy production could present New Brunswick with the possibility of playing a lead role in that promising field. (Cost of energy is an important factor in the manufacturing sector.) It was also demonstrated that there is a potential for increased wood use in the non-residential (ICI) and multi-residential sectors in the province. Notwithstanding the impact of the current economy on the ICI sector, government buildings, health care facilities and recreational buildings continue an upward trend. As markets rebound, so will the ICI and multi-residential sectors. There is also potential for increased wood use in the bridge-building industry. Although design and construction expertise in the province is not what it could be and existent training programmes bear partial responsibility for that, there are solutions for this situation. Not all remedies deal with the education of the new workforce. Work also needs to be done on the existing workforce in the form of continuing education. As well, the building code could be evaluated for potential modification to include mid-rise buildings (i.e. higher than four storeys) in an effort to expand the ICI sector potential. The opportunity for the government to link the Climate Change Action Plan with carbon neutrality in the built environment could help position wood products in a better light. With their inherent carbon sequestration properties and lower environmental ________________________________________________________________________________________________________ 28 Nova Scotia’s model for their private woodlots may be worth investigating. It includes a registry of buyers with requirements for silviculture credits which has some government implications. 29 Refer to the following report for details: Management Alternatives for New Brunswick’s Public Forests – April 2008

Richard J . Currie Centre University of New Brunswick, Fredericton – under construction Architects: B & H Architects Photo: Courtesy Goodfellow


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footprint, wood products could see an increased legitimacy which would be of assistance in dispelling misconceptions surrounding the industry.

While it is true that an increase in the domestic use of New Brunswick’s wood products could help industry, there are limitations to the potential for market growth in that sector alone. The fact remains that the majority of New Brunswick’s softwood lumber is destined for the US market place. The province’s ability to count on the United States as a “bread basket” for lumber sales may be in jeopardy, however. It does not take a financial analyst to see that, with the current downturn in the U.S. economy, the potential for continued hardships in the foreseeable future for New Brunswick’s’ major trading partner are very probable. Add to that the fact that the United States has had even more mill closures than Canada, which is exacerbated by an increase in offshore imports, and Canada as a whole will see the U.S. become increasingly protective of their markets. This will continue to have a serious impact on all Canadian exports into that market.

New Brunswick, located at the eastern end of the country, with direct access to oceanic shipping, is geographically poised to think farther afield than the U.S. It remains to determine how the New Brunswick industry can differentiate itself to the benefit of the global marketplace. The days of lumber trading must give way to specialties – the creation of products or components or systems that meet growing needs worldwide. The means of developing new products and technologies lie within the very borders of the province with the premier wood research facility at the University of New Brunswick in Fredericton, the Wood Science and Technology Centre. Collaborations between UNB Fredericton and other Canadian research facilities (FPInnovations, Alberta Research Council, etc.) could help put industry in a very good position by developing leading

edge and marketable products and technologies. Government has already implemented many programs to benefit such efforts by industry. A broader vision will benefit New Brunswick in the long run. A coalesced Atlantic vision would also be valuable moving forward – giving a broader voice to a critical mass would help create the inertia needed for change.

The exploration of efforts by other jurisdictions to validate their forest products industries was an invaluable exercise. It allowed for a better understanding of context, whether that was economic, geographic, environmental, political or collective. The lessons learned will form the backbone of a New Brunswick strategy to optimize the forest industry and guarantee markets in the long term. Efforts which garnered results abroad, as well as here in Canada, will serve New Brunswick well in the development of a strategy.

Full-scale glulam beam testing at the University of New Brunswick’s Wood Science and Technology Centre Source: University of New Brunswick, Fredericton


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Strateg ic Approach

What was learned by studying British Columbia, Quebec, Finland, France and New Zealand? First and foremost, industry needs to come together to present a common front with a common vision. A fractured approach to bolstering the wood products industry in New Brunswick will not be successful. The need for buy-in of a common vision at all levels was demonstrated successfully in Finland and British Columbia. Long-term involvement from industry, government, municipalities, design and construction professionals, non-governmental organizations, educational institutions and others is necessary to keep any forward momentum. There is no quick fix. It will take a broad approach with many players pushing the agenda forward. When industry backed out in Finland for a brief period, market share suffered – even after years of successes. The lack of a buy-in at all levels did not bode well for New Zealand. What has worked the best in France has been the comprehensive approach used in the Vosges region, not necessarily the government requirement to use a specific amount of wood in new construction. Starting on the home front, there is a need to engage New Brunswickers and instil them with a sense of pride for their wood products industry. Wood and its positive merits have to be kept up-front and centre with decision makers and with consumers alike. There is a need to foster excitement for the possibilities with wood, which will help to generate an interest in future generations to seek employment in the industry and keep it moving forward.

A multi-pronged approach with pervasive programmes will be necessary to develop the momentum needed for change. The successes of the Finnish example using this type of approach speak volumes. Efforts will be required to raise the profile of the wood products industry, to position products in the context of sustainable development and lower carbon footprints, without denigrating other industries or products. Promotional efforts will need to concentrate on positioning wood products as a viable solution for the reduction of greenhouse gas emissions through carbon sequestration. A government position setting limits on the carbon footprints for buildings would do more to spur the use of wood than would a requirement to use a minimum amount of wood in buildings. A stipulation to use life cycle assessments, to demonstrate that the material choices for buildings meet the target limits, would be seen as an inclusive approach. With no restrictions on how to achieve the target limits, this strategy becomes a true performance-based approach and will be met with less resistance from the design community and from competing industries than would a requirement to use a certain volume of wood.

Training needs will have to be addressed for design and construction professionals, for industry workers at the manufacturing level, and for the construction trades. Existing university, college and trade school programmes will need upgrading; continuing education programmes will need to be established with organizations representing design professionals. There needs to be a support network established to provide technical assistance to the design community. Answers to users’ questions need to be made available. If it is too difficult to use wood products, other material choices will be made – especially if other industries are offering the support. The province of Quebec has demonstrated what is possible by working on several fronts to overcome limitations in the building code allowing for the construction of Canada’s first six-storey office building with a wood structure.

Research and development efforts will be necessary to bring innovation into the marketplace and position the New Brunswick wood products industry as a current and competitive industry.


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Complacency on this front is not an option. A lack of diversification is what kept France behind the curve in Europe and on the world stage for so long. New Brunswick needs to differentiate itself and develop an expertise which is marketable worldwide. The non-residential construction market in the province is an untapped potential but it will not be enough to propel industry indefinitely. It will be a learning ground and a stepping stone. There is a need to develop new products or systems that meet the needs of a larger marketplace in order to spur long-term gains in the wood products sector. It is time for the New Brunswick wood products industry to distinguish itself.

An expertise already exists with factory-built housing systems in New Brunswick. The need for innovative disaster relief housing is obvious in light of the recent earthquakes in Haiti, Chile and western China – housing that can be quickly expedited, goes up fast, is moisture and insect resistant, and withstands seismic forces. There are other areas of the globe poised for similar disasters (Nepal, North America’s west coast, and the Pacific Rim). New Brunswick has a unique opportunity to expand on an existing expertise. Also in line with factory-built systems, a viable wood alternative to the steel building kits is long overdue. The New Brunswick industry could pave the way by developing expertise in standardizing commercial roof and floor trusses and take wood systems building to a new level. These markets exist – they need solutions. If the Atlantic provinces were to unite behind efforts to develop the expertise needed to meet these market needs, it would be beneficial – New Brunswick can kick-start this process.

Another potential growth market deals with the use of construction waste. Product development would be needed to maximize on this potential. Doing so would allow industry to stand behind the claim that wood is recyclable and contribute to an improved perception of industry practices. Government measures to stem the tide of continued dumping of reusable C&D waste would need to be implemented to effect any change in these practices. Such measures would be in line with sustainable development objectives. The use of construction waste would also be a good match for the emerging pellet / biomass industry. There may also be an opportunity for industry to coalesce an end-of-life product management programme, the recycling of construction waste and the province’s Forest Biomass Harvesting Policy into the development of a comprehensive strategy for reducing energy costs at the manufacturing level through the use of cogeneration plants in manufacturing facilities. Although not a formal aspect of the recommendations resulting from the current investigation, consideration should be given to these possibilities.


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Recommen dat ion s The strategy as outlined in the previous section includes the following main components: a common vision, government initiatives, training needs, research and development efforts, and a long term commitment on many levels. Certain implicated activities need immediate action while others will take time to implement. What follows is an attempt to itemize specific activities for consideration. They are categorized as to their relative importance within short, medium or long term timeframes, and the intensity of the effort needed to accomplish the task.

Ti m e l i n e Ac ti v i ty E ffort

Re quire d

Short term Se cure gove rnm e nt’s conside ration of the following: implementing requirements for lowered carbon footprint for all

government funded building projects, with LCA validation thereof.

Moderate

Short term NB FPA to establish industry coalition with interested parties:30 insure high-level participation for the entire forest products

industry.

Straight forward to Moderate

Short term hold strategic planning session to discuss and establish vision for the New Brunswick industry moving forward: o consider platform to be one of helping the province meet climate

change reduction goals; o discuss desired market increases and implications to industry.

Moderate

Short term Me m be rs of the industry coalition to m e e t with gove rnm e nt: discuss relevance of desired industry direction with existing

government programs, in particular the Climate Change Action Plan, to arrive at shared goal.

Straight forward

Short term Establish broad-base d third-party le d coalition. The value -adde d se ctor , re gional m unicipal and gove rnm e nt bodie s ( the re gional Ente rpr ise Ne twork) , acade m ia, NGO’s and the de sign and construction com m unity will all be instrum e ntal at this stage . 31 Hold strategic planning session, potentially spear-headed by UNB,

to discuss wood products industry initiatives in the context of sustainable development on socio, economic and environmental levels for the province, and solicit help to expand the vision and move it forward;

Moderate

Short term launch a promotional campaign touting the environmental responsibility of using wood to lower carbon footprint and help achieve goals of the Climate Change Action Plan;

Moderate

Medium term work with municipalities for consideration of requirements for lowered carbon footprint for all municipal buildings, with LCA validation thereof (e.g. in the form of a charter);

Straight forward to Moderate

________________________________________________________________________________________________________ 30 Refer to Appendix E for suggested list of participating organizations. 31 Refer to Appendix F for suggested list of participating organizations.


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Medium term expand promotional efforts to develop an ally network – takes the focus off of primary industry and places it with non-vested players.

Moderate

Short term Addre ss training ne e ds ( re sponsibi l i ty to be assigne d) : Modify carpentry trade programmes to make them compulsory

certified trade programmes (CCT) similar to the requirements for plumbers and electricians;

Moderate

Medium term Develop heavy timber carpentry trade courses for non-residential applications;

Difficult

Medium term Make wood engineering courses compulsory in civil engineering programmes in NB;

Moderate

Long term Develop masters-level timber design specialty programme at UNB, under the responsibility of the Wood Science and Technology Centre, open to architects and engineers.

Challenging

Long term Lobby Dalhousie University School of Architecture to include compulsory wood component.

Difficult to Challenging

Short term Establish WoodWORKS! program m e 32 to support the de sign com m unity and cre ate an e xcite m e nt around the use of wood. Should be Atlantic Canada-wide – activitie s to include :

Straight forward

Short term provide technical support to facilitate use of wood in non-residential applications;

Straight forward

Short term implement continuing education programmes for architects and engineers

Straight forward

Medium term plan and hold a Wood Solutions Fair; Moderate

Long term develop university level competition to stimulate an appetite for innovative wood-based construction;

Moderate

Long term develop Atlantic competition for innovative wood use in buildings; Difficult

Long term work with NB DSS to amend the New Brunswick building regulations to allow for mid-rise wood-framed buildings up to 9 storeys in height (would be a joint effort with several interested parties to be determined).

Moderate to Difficult

Short term Re se arch and De ve lopm e nt e fforts for conside ration: detailed study of current volumes and industry manufacturing

potentials in the primary, secondary, and value-added sectors for meeting non-residential market needs;

Straight forward

Medium term factory-built “kit” housing for disaster relief, pre-engineered to withstand extreme environmental forces (e.g. those arising from earthquakes and hurricanes), with added moisture and insect-resistant properties;

Difficult

________________________________________________________________________________________________________ 32 WoodWORKS! is a country-wide Canadian Wood Council initiative to grow the use of wood in non-residential construction. See www.cwc.ca. Efforts for a New Brunswick-specific initiative should be coordinated with the Maritime Lumber Bureau, which has recently implemented a similar programme, in order to benefit from synergies.


37

Medium term shipping solutions for high volume factory-built pre-engineered homes;

Moderate

Long term for the non-residential sector: wood-based infill wall and floor panels, and pre-engineered wood building “kits” to compete with pre-engineered steel buildings and systems (e.g. Steelbuilt, Unco, Norsteel etc.).

Challenging

Long term Incre ase the m anufactur ing capacity in NB of e ngine e re d wood products ( EWP) to spur the use of wood in non-re side ntial applications and m id-r ise buildings. Conside rations include : encouraging primary manufacturers to expand into the production

of EWPs;

enticing EWP manufacturers from elsewhere to establish manufacturing presence in New Brunswick, either alone or in partnership with NB companies;

establish other product lines not currently available in the Atlantic region (thick MDF, etc.);

Moderate to Difficult

Medium term establishing MSR lumber production facilities. Moderate

Long term Expand Ne w B runswick approach to othe r Atlantic province s to cre ate a cr itical m ass for broade r influe nce .

Moderate to difficult

The need for a single vision by industry is the first hurdle – once that is tackled and surmounted, and all are working together for a common goal and the common good, all will benefit. It will be important to have an open dialogue with government early in the process in order to identify synergies. It will also be important to identify all parties with a vested interest in the New Brunswick wood products industry in order to arrive at a work plan for the benefit of all parties. A strong platform will be needed on which to build the future. The roles played by the Quebec Coalition Bois and BC’s FII and Wood First Initiative merit consideration in the development of a model for the broad-based, multi-sectorial coalition.

Certain activities need to come first, as identified above; some will be more difficult to achieve; some will be more time consuming. In the short and medium term, the development of the non-residential and multi-residential market sectors should be the primary focus, presenting the people of New Brunswick with responsible material choices, choices that will lower the carbon footprint to the benefit of the climate change portfolio. These efforts will stimulate production and secure jobs.

In the long term, the New Brunswick forest products industry will need to differentiate and develop expertise to fill needs in the global marketplace. Research and development activities will be required to build a portfolio of new solutions that will create a demand for New Brunswick products. This demand will carry the province forward. One point which the wood products industry should never lose sight of is that, when environmentally responsible, renewable wood-based products are used, we are preserving those non-renewable resources for which there are no substitutes.


38

B ibl iog raphy

Canadian Online Encyclopedia – Forest Regions. Historica-Dominion Institute. http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0002908

Dalhousie University School of Architecture. Course Outlines: Arch 3207/08, 4211/12, 5202/03. 2009.

Planet Friendly Canada Web Portal. http://www.planetfriendlycanada.ca/

Statistics Canada. Human Activity and the Environment – Solid Waste in Canada. Statistics Canada. 2005.

British Columbia information:

BC Government. Bill 9 – British Columbia Wood First Act. BC Government. 2009

BC Ministry of Forests and Range. Generating More Value from Our Forests A Vision and Action Plan for Further Manufacturing. BC Government. 2009

Forestry Innovation Investment (FII). BC Crown Corporation. http://www.bcfii.ca

Fuglem, Peter and Werner Hofstaater. Act Introduced to Expand Wood Use in Public Buildings. Press Release – BC Ministry of Forests and Range. 2009

Finland information:

Finland’s National Forest Programme. http://www.mmm.fi/en/index/frontpage/forests/nfp.html

Paris, Vincent. Politiques d’utilisation des produits du bois – Suède et Finlande. Laval University. 2005.

Wood Focus Oy. Puu Wood Holz Bois. Wood Focus Oy. 2006

France information:

Bianco, Jean-Louis. La forêt, une chance pour la France. 1998.

Cahiers du Cobaty No6 – Construire en Bois : Passer de l’effet de mode à une application durable. Extracts from a speech by Nicolas Sarkozy. Cobaty. 2009.

Conseil Général des Vosges. Charte bois – Conseil Général des Vosges. 2007.

Puech, Jean. Mise en valeur de la forêt française et développement de la filière bois. 2009

République Française. Accord Cadre – Bois/Construction/Environnement. République Française. 2001.

République Française. Loi No. 96-1236 30/12/1996, sur l’air et l’utilisation rationnelle de l’énergie. République Française. 1996.

Triboulot, Professeur Pascal. Vue sur l’économie du bois d’œuvre en France. IHF. 2008.

New Brunswick information:

Atlantic Provinces Economic Council. Building Competitiveness in Atlantic Canada’s Forest Industries: A Strategy for Future Prosperity, 2008.

Erdle, Thom et. al. Management Alternatives for New Brunswick’s Public Forest. NB Task Force on Forest Diversity and Wood Supply. 2008.


39

Roberts, Don and Peter Woodbridge. Future Opportunities for the Forest Products Industry in New Brunswick. CIBC World Markets Inc. and Woodbridge Associates Inc. 2008

NB Government. New Brunswick Building Code Act. Queen’s Printer for NB. 2009.

NB Government. NB Regulation 2009-79 under the Metric Conversion Act (O.C. 2009-312). Queen’s Printer for NB. 2009.

NB Government. Renseignements concernant le Règlement provincial sur la construction de 2002 du Nouveau-Brunswick. NB Government pdf. 2002.

NB Department of Natural Resources. NB Private Woodlot Silviculture Manual. NB Government. 2009. http://canadaforests.nrcan.gc.ca/statsprofile/trade/nb

National Forest Information System. http://www.nfis.org/

NB Department of Environment. NB Climate Change Action Plan 2007 – 2012. NB Government. 2007.

New provincial green building policy. News Release. NB Government. 2010.

New Zealand information:

Anderton, Hon. Jim. Making Wood Part of a Sustainable Future. Media Statement. Government of New Zealand. 2007.

McEwen, Andrew. Exit of State from Plantation Forest Ownership in New Zealand. McEwen Associates Ltd.

NZ Ministry of Agriculture and Forestry. New Zealand Timber and Wood Products Procurement Policy. NZ Government. 2006.

NZ Forest Owners Association, et. al. New Zealand Forest Facts and Figures. NZ Forest Owners Assoc. Inc. 2006.

Quebec information:

QC Ministère des Ressources naturelles et de la faune. Forests: Building a Future for Quebec. QC Government. 2008.

QC Ministère des Ressources naturelles et de la faune. Vers la valoriasation de la biomasse forestière : Un plan d’action. QC Government. 2009.

QC Ministère des Ressources naturelles et de la faune. Wood Use Strategy for Construction in Quebec. QC Government. 2008.

Redpath Museum: Quebec Biodiversity Website. http://redpath-museum.mcgill.ca/Qbp/introe.html


40

Ackn owledg emen ts

My thanks and appreciation go out to all those whose contributions made this report possible. The contribution of the Departments of Business New Brunswick and Supply & Services in helping formulate the Terms of Reference for the study, and in providing feedback and information as the study proceeded were indispensible. For the New Brunswick reality, thank you to Dr. Y.H. Chui and Dr. Meng Gong and others at the University of New Brunswick; to Mark Arsenault at the New Brunswick Forest Products Association, to Graham Savage and other players at Business New Brunswick; to Wayne LaRochelle and Fernand Daigle at the NB Department of Supplies and Services; to Paul Orser, ADM Renewable Resources, Peter Lewis, Chris Ward and their teams, and Dan Beaudette, at the NB Department of Natural Resources; to Mark Boldon and Jeff Porter at the NB Department of Environment; to John Cormier at the Maintenance and Traffic Branch of the NB Department of Transportation; to Bryan Pelkey, Policy Analyst at the NB Department of Energy; to Carole Blenkhorn at the Maritime Lumber Bureau; to Ken Hardie at the NB Federation of Woodlot Owners; to Annie Prigge at Natural Resources Canada; to FPInnovations; and to Michel Labonté at Statistics Canada. Details on programmes in other jurisdictions would not have been possible were it not for the indispensable assistance of the following people: Prof. Pascal Triboulot (Director ENSTIB, Nancy, France); John Eyre (Forest Policy Coordinator, Ministry of Agriculture and Forestry, New Zealand) and Dr. Pierre Quenneville (Professor of Timber Engineering, University of Auckland, New Zealand); Werner Hofstätter (Director, Wood First Initiative, BC) and Peter Fuglem (Executive Director, Wood First Initiative, BC); André Denis (Ministry of Natural Resources and Fauna, Quebec) and Robert Beauregard (Dean, Faculty of Forestry, Geography and Geomatics, Laval University, Quebec); and Petri Heino (Managing Director, Finnish Timber Council – Puuinfo Oy, Finland). Thank you to Ardith Armstrong at the University of New Brunswick for her help with edits. Thanks also to the following people for helping fill in pieces of the puzzle: Dean and Krista McCarthy, University of New Brunswick heating plant; Trina Young, Westmorland-Albert Solid Waste Corporation; Linda Gould McDonald at the NB Forest Products Commission; Kevin Horsman, owner of Bay Tech College; Hilary Howes at the NB Construction Association; Steve Parcell at the Dalhousie University School of Architecture; David Nelson and Gabriel Babineau at the NB Community College – Moncton; Carla Crawford of Miramichi Timber Frames; and Malcolm Boyd of Murdock and Boyd Architects. Special thanks go out to Donal Power and Patrick Brannon at the Atlantic Provinces Economic Council for their assistance.


41

APPENDIX A

Ne w B r un sw i c k M e r c han di se Tr ade ( $ m i l l i o n s)

Al l Pr o duc ts: Fo r e st Pr o duc ts:

Total

Exports Total

Im ports Trade

B alance

To tal E xpo r ts

To tal Im po r ts

Tr ade B alan c e

2000 7,476 5,681 1,795 2000 2,867 274 2,592

2001 8,351 5,629 2,722 2001 2,464 291 2,173

2002 8,269 5,720 2,549 2002 2,352 277 2,076

2003 8,575 5,974 2,601 2003 2,281 259 2,023

2004 9,480 6,899 2 ,5 81 2004 2,464 253 2 ,212

2005 10,726 8,003 2,723 2005 1,934 263 1,670

2006 10,420 7,531 2,890 2006 2,012 247 1,765

2007 11,202 7,461 3,741 2007 1,848 240 1,607

2008 12,821 10,745 2,076 2008 1,419 235 1,183

2009 9,936 9,368 5 68 2009 1,259 214 1,045

Source: Strategis Trade Data On-Line


42

APPENDIX B

Tr an sc r i pt o f B NB Pr e se n tati o n :

Business New Brunswick Assistance Programs Audience: UNBWSTC, Wood in Public Buildings Study, Fredericton, NB Date: March 24, 2010 Presenter: Graham Savage, Project Executive, Forest Industry

B NB M an date

BNB is responsible for facilitating Business & Economic Development in NB

Creating New Jobs & Maintaining Existing Jobs

Use combination of Sector Expertise & Financial Assistance

Extensive network extending to all manufacturing sectors, some service industries, knowledge industry, and high technology development

Particular interest in Value-Added Resource based industries

Work in concert with other Provincial and Federal Government Depts, the Network of Enterprise Agencies, CBDC, Banks, and Econ Dev’t Officers in First Nations Communities

WE ARE OPEN FOR BUSINESS!!!

Pr i o r i ty Cluste r s

Advan c e d M an ufac tur i n g

Plastics & Packaging

Metalworking / Industrial Machinery

Aerospace / Defense

Kn o w le dg e In dustr y

Information & Communications Technologies

e-Learning & Game Technologies

e-Business Solutions

Contact Centers

Value -Adde d Re so ur c e s

Food Processing

Value-added Minerals / Peat

Value-added Forest

Energy

Li fe Sc i e n c e s

Bio-Technology (Forestry/Agriculture-based)

Bio-Technology (Fisheries/Marine-based)

Health Research

Environment


43

F i n an c i al Assi stan c e Avai lable Thr o ug h B NB

Technology Adoption and Commercialization Program (TACP)

Trade Assistance Program (TAP)

Financial Assistance to Industry Programs (FAIP)

Strategic Assistance

NB Growth Program

Te c hn o lo g y Ado pti o n an d Co m m e r c i al i z ati o n Pr o g r am ( TACP)

Assistance to manufacturers, processors and selected services firms to help address the gap in financial support of the technological innovation and pre-commercial product development needs. o Assistance is limited to up to 40% of eligible costs, to a maximum of $15,000.

o Companies can have more than 1 project/year

o Generally available across all types of firms in the manufacturing, processing and selected service industries

Eligible activities include:

o Specialized software and communications costs directly associated with the manufacturing, production process and selected services.

o Software development costs associated with a project. o Licensing and joint venture research and negotiating costs.

o Patent and intellectual property research and protection costs.

o Market and technical intelligence gathering and interpretation. o Costs associated with the acquisition of specialized knowledge.

o Specialized product and service testing to validate product market readiness

o E-Business enablement costs relating to training, software, consultation. o Risk sharing with Industry (Proponent), ACOA and/or IC in financing

Commercialisation of a new product or process. o Promote and encourage “First User Risk Reduction”.

o Direct costs for conferences, technical shows, plant visits, etc., to obtain knowledge of competitive technologies, processes and products.

o Quality assurance programs and certification of products.

o In-house technical training programs by a third party. o Development and implementation of a website.

o Design and printing of brochures for new export products. o Strategic Assets and Services resulting in increased competitiveness

Other Eligible Costs under TACP:

o Per diem of $100.00 per overnight for one person in Canada up to three nights, $150.00, out of Canada, up to five nights, and $200.00 for overseas, up to five nights (exceptions require justification and prior approval from management and additional person per out of province event @ 50% per diem rates).

o 20 cents per kilometer for use of own vehicle or rental vehicle


44

Tr ade Assi stan c e Pr o g r am ( TAP)

The Trade Assistance Programs and Services (TAPS) is intended to introduce New Brunswick companies to exporting, and to assist in the development of "new" export markets outside of the Maritimes. Priority emphasis will be on sectors with the greatest potential to contribute to the economy of New Brunswick. The following definitions apply for the purposes of this program:

o Exporter: Any New Brunswick company who has not previously accessed up to $15,000 under previous provincial trade assistance programs from January 1997 to date.

o Mature Exporter: Any New Brunswick company who has exceeded the $15,000 maximum

General Eligibility Criteria:

o Companies must process, manufacture or produce a bona fide exportable product or have an exportable service.

o May require a formal, written trade strategy that is consistent with company goals and capabilities.

o Total corporate sales cannot exceed $10M.

o Companies accessing TAPS must declare any other funding assistance. No top-ups of programs will be allowed.

o Companies must be prepared to provide written feedback on activities supported by TAPS.

o HST is NOT reimbursable.

Limitations:

o A maximum contribution of $5,000 per project; a minimum contribution of $500 per project. Maximum assistance allowed per company is $15,000.

o Companies will be allowed only two (2) TAPS within the same market area.

o Funding levels will be up to a maximum of 50% of eligible costs.

o A completed application must be received at least 10 working days before the activity begins.

Eligible costs include:

o Travel to Trade Show & Per Diems

o Trade Show Booth Rental

o Incoming Buyers

o Initial After Sales Follow-up

o Conferences

o Media/PR Assistance

o Promotional Materials

o Product labeling


45

Tr ade Assi stan c e Se r vi c e s

Identification of Trade Opportunities

Counseling on Trade Strategies

Facilitating Strategic Alliances/Partnerships

Development of infrastructure and Networks in Foreign Markets

Market Identification

Market Reconnaissance

Assist with Pre-Exporting Missions

Co-ordination and Participation in Strategic Trade Shows and Related Events

Organizing and Implementing Reverse NEBS Activities

Other Trade Initiatives

F i n an c i al Assi stan c e to In dustr y Pr o g r am s

Loan Guarantees

Repayable Loans

Equity

Strategic Assistance

For start-ups, expansions (and job maintenance)

Eligible sectors - manufacturing, processing, selected tourism, selected commercial service, knowledge industry.

Repayable Term Loans

Provincial lending rate

Secured by company assets & personal guarantees

Loan Guarantees at bank terms and rates

Secured by fixed assets, inventories, receivables & personal guarantees

Working capital or term debt

Str ate g i c Assi stan c e

Conditionally forgivable loans to

o Companies establishing qualifying businesses in New Brunswick

o Existing N.B. firms undertaking major expansions

Must be strategic in terms of N.B.’s economic growth

Should not directly compete with existing N.B. firms

Sustainable Competitive Advantage

Export oriented / displacing imports

ROI (to PNB) of 4 years (urban) and 6 years (rural)

Must be in sound financial condition


46

Re qui r e d In fo r m ati o n fo r FAIP, Str ate g i c Assi stan c e & NB Gr o w th

Business Plan

Financial history of company and detailed financial projections (including monthly balance sheets, income statements and cash flows)

Source and Application of funds Payroll History / Projections

Market Information / Strategy Shareholder & Management CVs

NB Gr o w th Pr o g r am

Obj e c ti ve s o f the NB Gr o w th Pr o g r am ar e :

To create sustainable employment opportunities in New Brunswick by financially stimulating small businesses to pursue opportunities within targeted sectors of the economy.

To stimulate capital investment for small business start-up, expansion, diversification, innovation, and productivity improvement.

Fo r E stabl i shm e n t Of Ne w B usi n e ss

Non-repayable contributions of up to $100,000 can be made relating to the establishment of “year-round” Eligible Businesses based on 50% of Eligible Costs, up to a maximum of $15,000 per new full-time year-round job created.

As well, non-repayable contributions of up to $50,000 can be made relating to establishment of seasonal tourism businesses as described under Eligible Businesses below, based on 50% of Eligible Costs.

Fo r E xpan si o n , D i ve r si fi c ati o n , o r Pr o duc ti v i ty Im pr o ve m e n t

Non-repayable contributions of up to $60,000 can be made relating to the expansion, diversification, or improving the productivity or competitiveness of “year-round” Eligible Businesses, based on 30% of Eligible Costs.

As well, non-repayable contributions of up to $30,000 can be made relating to the expansion, diversification, or improving the productivity or competitiveness of seasonal tourism businesses as described under Eligible Businesses below, based on 30% of Eligible Costs.

E l i g i ble B usi n e sse s ar e tho se pr i vate se c to r busi n e sse s as l i ste d be lo w :

Manufacturing and processing industries. Information technology related industries.

Full time tourism activity/service operations offering services and/or activities specifically targeted at the tourism market which are consistent with the objectives of the Department of Tourism and Parks. If seasonal, such businesses must operate full time throughout an annual operating season of not less than 90 consecutive days.

Commercial (i.e. business to business) service sector firms which are primarily engaged in export oriented or import replacement activity.

Cultural enterprises, which for the purposes of this program are defined as film and video production, performing arts businesses, music and sound recording and production services, book and periodical publishing (excluding the publication of news periodicals), and craft production.


47

E valuati o n o f FAIP Appl i c ati o n s

Financial strength of company

Fit with Economic Strategy

Age of business (Start-up, expansion/modernization)

Market for company products and competition

Risk associated with project

Location of facility (urban or rural)

Performance of sector (growing, mature)

Track record and capability of the principals and management

Production and technical capabilities

Employment and payback in relation to risk

Amount of financing required

Othe r F i n an c i n g Pr o g r am s

On the Federal side, Atlantic Canada Opportunities Agency (ACOA) offers their Business Development Program (BDP) http://www.acoa.ca/English/ImLookingFor/ProgramInformation/Pages/ProgramDetails.aspx?ProgramID=2

This is a loan for up to $500,000 representing 50% of eligible costs. The interest rate is 0% and they take last security behind the banks, etc but ahead of shareholders.

This coupled with 20% private equity means a bank takes 30% of the costs and has first security on the assets

The Feds also offer through Industry Canada the Small Business Financing Program http://www.ic.gc.ca/eic/site/csbfp-pfpec.nsf/eng/home

Provides a Loan Guarantee for 85% of the value of the loan from a bank which reduces the bank risk facilitating financing

Maximum LG is $250,000.

Community Business Development Program http://www.cbdc.ca/programs.php?id=2

Provides repayable loans up to $150,000 at competitive interest rates.

This can be useful to complete the financing of a deal if the banks are not keen on participating, or to round out a deal.

NB Small Business Investor Tax Credit Program

Program Objectives

o Provide an important source of capital by increasing access to equity financing for New Brunswick small businesses.

o Encourage investment by New Brunswick residents in New Brunswick small businesses.

All Business Sectors are Eligible

http://www.gnb.ca/0162/tax/sbitc/smallbusiness.asp


48

NB Small Business Investor Tax Credit Program (Cont’d)

Company applies to NB Dept of Finance for the approval to issue tax credits under the NBSBITC Program

Investor gets 30% Tax Credit to a maximum of $24,000 toward NB Personal Income Tax payable, represents $80,000 maximum subscription/yr

o Carry back 3 years

o Carry forward 7 years

Have to hold shares for 4 years, tax credit pro-rated if shares disposed of prematurely


49

APPENDIX C

Ne w B r un sw i c k No n -Re si de n ti al & M ulti -Re si de n ti al B ui ldi n g Pe r m i ts (new projects only)

2007 2008 2009

Project Value

# of projects

Total value $('000)*

# of projects


# of projects


Industrial Buildings: $250,000 to 999,000

25 11,997 72 42,649 30 15,938

$1 million to 4,999,999

9 19,798 12 26,177 5 10,253 (Codes 410, 420, 430, 440, 450, 460, 480, 490 and 572)

$5 million to 9,999,999

1 7,500 1 9,886 1 7,400

$10 million and higher

3 75,720 2 52,902 1 19,200

TOTALS 38 $ 115,015 87 $ 131,614 37 $ 52,791

Commercial Buildings: 250,000$ to 999,000

18 9,128 11 5,858 9 3,955

(Codes: 510, 522, 536, 540, 550 and 570)

$1 million to 4,999,999

15 32,339 13 27,785 3 5,950

$5 million to 9,999,999

2 11,386 0 0 0 0


0 0 1 16,000 1 10,000

TOTALS 35 $ 52,853 25 $ 49,643 13 $ 19,905

Hotels / Motels: 250,000$ to 999,000

0 0 0 0 0 0

(Codes 530 and 532) $1 million to 4,999,999

2 6,795 2 4,600 0 0

$5 million to 9,999,999

1 6,950 1 6,600 0 0


0 0 1 10,677 0 0

TOTALS 3 $ 13,745 4 $ 21,877 0 $ -

Recreational Buildings: 250,000$ to 999,000

2 600 3 2,101 7 3,682

(Codes 560 and 562) $1 million to 4,999,999

0 0 0 0 2 4,135

$5 million to 9,999,999

0 0 0 0 2 11,526


0 0 1 13,000 1 10,524

TOTALS 2 $ 600 4 $ 15,101 12 $ 29,867


50

Project Value

# of projects


# of projects


# of projects


Educational Buildings: 250,000$ to 999,000

2 1,550 1 600 0

0

(Codes 620, 624, 626 and 630)

$1 million to 4,999,999

0 0 1 2,500 3

4,338

$5 million to 9,999,999

0 0 0 7,520 2

17,034


0 0 1 24,800 1

17,991

TOTALS 2 $ 1 ,550 3 $ 35,420 6 $ 39,363

Multi-residential Buildings:

minor projects (0 - 250,000$)

170 27,912 149 25,795 161 30,482

(Codes 310, 315, and 534) 250,000$ to 999,000

37 18,396 43 19,567 39 17,745

NB: minor projects: Codes 310 & 315 only

$1 million to 4,999,999

15 33,017 16 30,477 14 27,358

$5 million to 9,999,999

0 0 3 21,443 0 0


0 0 0 0 1 12,000

TOTALS 222 $ 79,325 211 $ 97,282 215 $ 87,585

Health Care & Related Buildings:

250,000$ to 999,000

5 2,900 7 3,500 8 4,293

(Codes 640, 642, 650, 580 and 590)

$1 million to 4,999,999

6 15,000 4 11,371 4 8,448

$5 million to 9,999,999

0 0 1 5,400 5 28,444


0 0 1 13,000 3 41,889

TOTALS 11 $ 17,900 13 $ 33,271 20 $ 83,074

Government & Public Service Buildings:

250,000$ to 999,000

1 475 2 727 4 1,275

(Codes 610, 612, 470) $1 million to 4,999,999

3 5,090 3 7,867 0 0

$5 million to 9,999,999

0 0 0 0 0 0


0 0 0 0 2 88,250

TOTALS 4 $ 5,565 5 $ 8,594 6 $ 89,525

Industrial new projects only (400)


108 7,265 217 10,358 266 10,095

Commercial new projects only (500)


174 10,150 162 8,594 103 5,393

Institutional new projects only (600)


21 1,349 39 2,057 16 1,609

*All dollar values in Constant Dollars for comparison purposes

For Code definitions, refer to Appendix D. Source: Statistics Canada


51

APPENDIX D


52

APPENDIX E

Ne w B r un sw i c k Wo o d Pr o duc ts an d Re late d Or g an i z ati o n s:

Atlantic Building Supply Dealers Association

Atlantic Canada Opportunities Agency

Atlantic Wood Specialties Group

Atlantic Woodtruss Fabricators Association

Business New Brunswick

Canada Mortgage and Housing Corporation

Canadian Home Builders’ Association New Brunswick

Canadian Manufacturers and Exporters New Brunswick

Construction Association of New Brunswick

FPInnovations – Forintek Division

Maritime Lumber Bureau

Natural Resources Canada

New Brunswick Department of Energy

New Brunswick Department of Natural Resources

New Brunswick Enterprise Network

New Brunswick Federation of Wood Lot Owners

New Brunswick Forest Products Association

University of New Brunswick, Wood Science and Technology Centre


53

APPENDIX F

M ulti -Se c to r i al Co al i ti o n – Or g an i z ati o n s fo r Co n si de r ati o n : (in addition to members of the Wood Products Coalition)

Agriculture Producers Association of New Brunswick

Architects’ Association of New Brunswick

Association francophone des municipalités du Nouveau-Brunswick

Association of Professional Engineers and Geoscientists of New Brunswick

Association des Travailleurs en loisir du Nouveau Brunswick

Canadian Manufacturers and Exporters New Brunswick

Community Business Development Corporation

Community College of New Brunswick

Conseil Economique du Nouveau Brunswick

Conservation Council of New Brunswick

Consulting Engineers of New Brunswick

Co-operative des travailleurs forestiers

Crown Lands in Public Hands

New Brunswick Environmental Network

New Brunswick Federation of Labour

New Brunswick First Nation Communities

Tourism Industry Association of New Brunswick

Union of the Municipalities of New Brunswick

Union of New Brunswick Indians


�


Acknowledgement

This publication was made possible by financial contributions from the Atlantic Canada Opportunities Agency and Business New Brunswick.

Documents

Increasing the Use of Wood in New Brunswick Public Buildings