UNECE TIMBER COMMITTEESixtieth session, 24-27 September 2002Photo: APA

Value-added Forest Products

Introduction byEd Pepke

Forest Products Marketing Specialist

UNECE & FAO Timber Branch

UNECE TIMBER COMMITTEESixtieth session, 24-27 September 2002Photo: APA

Value-added forest products

• Introduction by Ed Pepke, Forest Products Marketing Specialist, UNECE & FAO Timber Branch

• Mr. Jukka Tissari, Market Development Officer, International Trade Center, Geneva (co-author of chapter in Forest Products Annual Market Review, 2001-2002

UNECE TIMBER COMMITTEESixtieth session, 24-27 September 2002Photo: APA

Sources of information

• Forest Products Annual Market Review– APA—the Engineered Wood Product

Assn.– USDA Forest Service, Princeton

Forestry Sciences Lab, West Virginia• Innovative Uses of Wood, presentation by

Dr. Al Schuler for Thursday’s 60th Session seminar in Neuchâtel

UNECE TIMBER COMMITTEESixtieth session, 24-27 September 2002Photo: APA

Findings from Forest Products Annual Market

Review• Multiple benefits from value-added

processing attract policy makers• International trade barriers liberalized• International trade reached $33.7 billion

in 2000, up by 27%• Furniture imports from developing

countries fastest growth• Latin American profiled wood dominates

USA

UNECE TIMBER COMMITTEESixtieth session, 24-27 September 2002Photo: APA

Findings from Forest Products Annual Market

Review• Asian suppliers gaining in Japan and Germany

• Central and eastern European suppliers gaining market in Germany

• Industrialized countries shifting manufacturing to cost-competitive countries

• Tropical production and exports growing rapidly

• Engineered wood products at record levels in North America

UNECE TIMBER COMMITTEESixtieth session, 24-27 September 2002Photo: APA

Engineered Wood Products

• Glulam (glued, laminated beams)• Wooden I-beams• Laminated veneer lumber (LVL)• Others

– OSB– Oriented strand lumber

UNECE TIMBER COMMITTEESixtieth session, 24-27 September 2002Photo: APA

Wood

I- Joist

OSB

LVL

Oriented Strand Lumber

LVL

UNECE TIMBER COMMITTEESixtieth session, 24-27 September 2002Photo: APA

Advantages of EWPs

• Efficient use of wood in manufacturing• Reduced on-site construction time• Reduced construction waste• Predictable performance• Technology meeting market needs

UNECE TIMBER COMMITTEESixtieth session, 24-27 September 2002Photo: APA

Outlook for EWPs in North America

• Glulam: 7% growth in 2003 (from 2001)• I-beams: 14% growth• LVL: 19% growth• EWP plants doubled over last decade• Equivalent to 5% of sawnwood supply

UNECE TIMBER COMMITTEESixtieth session, 24-27 September 2002Photo: APA

Findings from Country Market Statements

• Czech Republic: Exports and prices rising.

• Germany: Downturn in VAFP production in 2001 by ~4%. 5% drop in profit and employment. Decline expected in 2002.

• Hungary: VAFPs represent 45% of trade.

UNECE TIMBER COMMITTEESixtieth session, 24-27 September 2002Photo: APA

Findings from Country Market Statements

• Latvia: Furniture exports grew 38% and builders’ joinery grew 7 fold in last 5 years.

• Lithuania: VAFPs exports up 25% in 2001, up 20% more in 2002. Account for 60% of export value in 2002.

• Romania: Furniture 46% of export value.• Spain: Extensive social fabric of 236,000

workers, over half in furniture. Exports slowed in 2002.

UNECE TIMBER COMMITTEESixtieth session, 24-27 September 2002Photo: APA

Findings from Country Market Statements

• Turkey: First time net exporter of VAFPs in 2001, expected to continue in 2002 (source: FPAMR, 2002).

• United Kingdom: Timber frame manufacturers moving to prefabrication with EWPs, partly due to lack of skilled construction labour.

• Yugoslavia: Of $50 million furniture produced, 60% exported in 2001.

UNECE TIMBER COMMITTEESixtieth session, 24-27 September 2002Photo: APA

Next speaker

Mr. Jukka TissariMarket Development Officer—Wood

ProductsInternational Trade Center

Geneva