Title: US%20Hardwood%20Exports:%20A%20Global%20Perspective%20%20Michael%20S%20Snow%20Executive%20Director%20AHEC
1US Hardwood ExportsA GlobalPerspective
Michael S SnowExecutive DirectorAHEC
2AHEC Membership
- AHEC member companies supply the growing
worldwide demand for U.S. hardwoods, exporting
the full range of hardwood products including
lumber, flooring, veneer, molding, and dimension
materials.
- AHEC Members include
- 111 direct company members
- 12 export association members
- 8 associate members
- 4 sponsor members
- Represents 90 of the U.S. hardwood industry
3AHECs Global Reach
4U.S. Hardwood Exports1986-2007
Million
5Worlds Leading Hardwood Lumber Exporters 2007
6Growing Importance of US Hardwood Exports
Exports as a of US Production
Source Hardwood Review,
7Red Alder Exports
Millions FAS value)
8Main destinations for Red Alder Exports- 2007
,Millions
9Red Alder Exports Major Markets
2005-2007(Millions of Dollars)
Source GTA
10Value of Hardwood Lumber Exports to
Japan1997-2007
( Thousand F.A.S. Value)
Source US Census Bureau
11Value of Hardwood Lumber Exports to
Korea1997-2007
( Thousands F.A.S. value)
Source US Census Bureau
12China Threat AND Opportunity
(Photo by Dr. Dave Cohen, UBC)
Center for International Trade in Forest Products
13US Hardwood Lumber Exports to China
( Millions FAS value)
14Demand Drivers
- Housing Privatization
- Commercial Construction
- Rising consumer wealth and sophistication
- Domestic and export oriented
- manufacturing in furniture and interior fittings
sectors - Hospitality industry 2008 Beijing
Olympics/2010 Asian Games in Guangzhou
15Chinese GDP Growth 1999-2007
- Pillars of Growth
- High levels of investment spending
- Trade and Opening to world economy.
16Chinese Domestic Market
- China Accounted for 20 of Global Economic Growth
2000-2005 - Automobile Market Exceeds Germany
- Largest Mobile Phone Market in the World
- Estimated 10 of Population with Middle Class
Purchasing Power. Represents 130 million
consumers and growing!
17Hardwood Demand Driver IFurniture
18China Furniture Production Exports
Billion USD
- China National Furniture Association
19Greater China Furniture Sector
Chinese Furniture Export by Province 2006
(Million US)
Province
Guangdong province accounts For over 50 of China
furniture exports.
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21Greater China Furniture Sector
Export Markets for Chinese Furniture in 2004
.
22Greater China Furniture Sector
Export Markets for Chinese Furniture 07
.
23Hardwood Demand Driver IIProperty Development
24Greater China Property Development
- Approximately 700 million square meters of
finished construction each year - Flooring demand to hit 2.5 billion square meters
in 2008 - Door and window market to hit 500 million units
in 2008
Source ITTO,
25AHEC Model Home Shanghai
26????????? Kitchen American Red Oak Cabinets
27Hardwood Demand Driver IIIFlooring and
Secondary Manufactures
28China Flooring Production 2002-2006
- China is the largest wood flooring producer
consumer - Account for 50 world flooring production.
million m2
29US Hardwood Flooring Imports Major Suppliers
2004-2006(Millions of Dollars)
Source GTA
302004-2006 China Door Production Export
United States is the largest export market for
Chinese door, account for over 40 of the total
export value.
million USD
31Whats Next?
- Will China become a major player in the
lumber/veneer export markets? - How much growth left in the furniture industry?
- Can Chinese plantations make them more
self-sufficient in wood fibre?
32- Chinas rank in wood products global trade
- Production Global Rank
- Plywood 1
- MDF 1
- Blockboard 1
- Furniture 2
- Hardwood lumber 2
- Particleboard 3
- Softwood lumber 4 (higher than Sweden)
- Finished Products Soaring
- Imports 2 (after the USA)
- Exports 1
Source Wood Markets Inc
33Chinese Wood Product Exports (Millions of
Dollars/ 8 month totals)
Source World Trade Atlas
34China is a Low Cost Producer, But
Source Wood Markets Inc
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37Worlds Leading Hardwood Log Importers
38Chinese/Russian Border - Suifenhe
39Chinese/Russian Border - Suifenhe
40US Hardwood Log Exports to China
1997-2007(Thousands of Cubic Meters)
Source USDA-FAS
41China Hardwood LogImports 2007
Market Share
Source World Trade Atlas
42China Domestic Timber Output Under NFCP
Source China Timber Import Export Co/IFSA
Consulting
43Per Capita Wood Consumption
In cubic meters per capita Source China Timber
Import Export Co/Hardwoodmarkets.com 2005
44Other Markets to Watch
- Southeast Asia/Vietnam
- Middle East
- Latin America
- India
- The EU
45S.E. Asia Market Overview
Million US
46U.S. Hardwood Log, Lumber Veneer to VIETNAM
VIETNAM
Million US
47Picture of wood processing factories in VN
Establishment (company enterprise)
Economy area Total ()
1. North West 11 0.9
2. North East 52 4.3
3. Red river delta 189 15.8
4. Northern of Danang 170 14.2
5. Coastal of Southern DN 161 13.4
6. Highland 153 12.8
7. South East area 376 31.3
8. Mekong delta 88 7.3
- Source Ministry of Agriculture Rural
development
48Hardwood Lumber Exports to Mexico
Source Global Trade Index
49Mexico Hardwood Import Market Share
Source Global Trade Index
50New Markets Middle East (Dubai 1990)
51New Markets Dubai (2007)
52New Markets Dubai (2010)
53Exports of US hardwoods to the Middle East
North Africa 2002 - 2007 (,000)
Source US Bureau of Census
54Exports of US Hardwood Lumber to the Middle East
North Africa 2002 - 2007 (,000)
Source US Bureau of Census
55Turkey
- Furniture Industries
- 65,000 Manufacturers
- Exports exceeded 1.2 billion in 2007
- Heavily dependent on Russian logs
- Opportunity
- Export-oriented furniture Middle East and Europe
AHEC/AFPA Korea Office September 2002
56South America
- Emerging Furniture Industries
- 13,000 Brazilian manufacturers
- U.S. exports of promoted products doubled
- Brazil12th largest market for veneer
- Opportunity
- High end furniture
AHEC/AFPA Korea Office September 2002
57Brazilian Furniture Exports(million US)
Source Global Trade Atlas
58Caribbean
- Shortfall in the mahogany supply
- Supplies come from Brazil and Guyana
- Interior design (hotels, restaurants)
- Small scale furniture market
59INDIA
60Indian Hardwood Imports (Millions of Dollars)
Source World Trade Atlas
61Indian Imports of Hardwood Lumber2001-2007
(Millions))
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63The Importance of Europe
64Worlds Leading Hardwood Lumber Importers 2007
65Hardwood Lumber Exports by Volume - 2007 (m3)
Source US Census Bureau
66US Hardwood Lumber Exports by Value 2007
(1,000)
Source US Census Bureau
67EU Hardwood Lumber Imports(Billions of Euros)
Source EUROSTAT
68Architectural Projects
69Public sector procurement policies EU and Japan
- EU governments developing procurement policies
designed to eradicate illegal wood from supply
chain. - These policies actively promoted by certified
wood suppliers. - Increasingly sustainability equated with
independent certification and traceability. - Public sector procurement policies in UK ,
Netherlands, France, Germany, Spain, and Belgium
favour certification. - UK policy is the most stringent and insists on
Chain of Custody and traceability. - AHEC statements on sustainability not accepted by
UK public authorities. - UK government promoting harmonisation in Europe
based on their model.
70 Legislative Options EU
- Effectively 2 options
- 1) Burden of proof on the prosecution
- Similar to US Lacey Act
- Encourages risk assessment and due diligence
- Proportionate to the scale of the problem
- 2) Burden of proof on the importer/supplier
- Every shipment would have to be verified legal
- Takes no account of the risk of illegal activity
- Could lead to imposition of unnecessary
bureaucratic controls - Not proportionate to the scale of the problem
71AHEC Actions
- AHEC-commissioned study to assess the risk of
American hardwoods being derived from illegal
sources or controversial sources as defined by
FSC Controlled wood standard - Lobby national governments to accept detailed
risk assessment as evidence of sustainability
when dealing with small family-owned forests in
countries demonstrating good forest governance - Encourage timber importing associations to ensure
risk assessment forms an integral component of
private sector timber procurement policies - Continue to explore with FSC and PEFC potential
for regional certification of American hardwood
forests accommodating large numbers of family
owners at minimal cost
72For additional information contact
- AHEC Headquarters
- 1111 19th Street, NW,
- Suite 800
- Washington, DC 20036
- Phone 202/463-2720
- Fax 202/463-2787
- www.ahec.org