Check off program lumber

Familiar campaigns for eggs, milk, beef, pork and cotton are among these programs. Periodic evaluations of the value of these initiatives suggests that participants realized anywhere from a to rate of return. Because lumber is a higher value product and competes with other building material manufacturers like concrete and steel, a higher rate of return may be possible for softwood lumber.

Still, the return is almost certainly overly optimistic. While the check-off program will suffer some of same controversy that others have—charges that larger producers benefit more than smaller ones and that some are being left out of the decision making processes—it will undoubtedly be better than doing nothing. Doing nothing will leave the industry open to continued market erosion; innovation and new market development will suffer.

It also leaves a void that competing industries will eagerly fill with their own generic industry promotions. The steel and concrete industries, for instance, are already positioning themselves through advertising campaigns as superior to wood both environmentally and economically. These campaigns can only be combated effectively by similar promotional tactics from the softwood lumber industry as a whole. Capacity at sawmills has contracted significantly during the recession.

Mill owners, beset by the need to preserve cash and bankers who will not lend on mill facilities, have deferred all but emergency maintenance. As a result, mills continue to depreciate in value. Once the recession is over, conversion capacity will be an issue. Mills will need to retool.

What we can offer you. We provide detailed transactional data, cost benchmarks and in-depth analytics for participants in the wood raw materials supply chain. SilvaStat Platform. Softwood Lumber Check-Off Program.

January 04, Lumber Market. Author: Suz-Anne Kinney. You May Also be Interested In. Within the context of this strategy, significant efforts would be made to harness the growing interest in sustainable building to ensure helpful changes in codes where necessary, and a much higher awareness of the environmental advantages of using wood.

The goal would be to ensure that wood is seen as the most logical green choice, especially for the construction professional or corporate executive who wants to blend practicality, affordability and sustainability.

The wood industry has the potential to leverage financial and support from allies, customers, and related businesses. We recommend that the program design include extensive efforts to secure financial support from appropriate government agencies, as well as from organizations that rely on a thriving wood products sector, such as wholesalers, retailers, transportation companies, tool and fastener companies and labour unions to name just a few.

It is realistic to assume that a leveraging ratio of could be achieved in the first five years of the program. In addition to financial leverage, the Committee recommends that significant effort be devoted to leveraging communications support to extend the reach, frequency and impact of our program. This would include co-op materials for use by, and creating alignment among, industry members, all related associations, and for delivery into retail markets through commercial and residential builders, architects, designers and retailers.

Based on past experience, it is clear that several things are pre-requisites of success for an initiative such as this. The most important are as follows:. From an operational standpoint, there would ideally be two governance mechanisms, with operational activities outsourced. At the top would be a CEO level Steering Committee, supported by a Wood Marketing Task Group of industry professionals, whose time would be contributed to the effort by their respective employers.

Today, the softwood lumber products sector enjoys an unprecedented opportunity to create volume growth opportunities, because of two important, new factors: There is an unprecedented openness to changing building practices, tied in large part to the widespread interest in sustainable or green building and climate friendly products. Softwood lumber from sustainably-managed North American forests possesses unique credentials as a sustainable product, especially when compared to steel, plastic, composites and concrete.

Subject to refinement, the broad outlines of the program we recommend are: Duration Based on the lessons learned from the now defunct Wood Promotion Network, we believe that for a program to succeed, it must be backed by predictable and appropriate funding for more than 5 years. Strategies The recommended strategy involves establishing a clear and consistent brand positioning for wood as the product that is the most practical, affordable and sustainable choice for use in all of these markets.

Program Delivery Based on past experience, it is clear that several things are pre-requisites of success for an initiative such as this. The most important are as follows: The program would be designed to run as a virtual, entrepreneurial initiative, rather than as a new association. In effect, it is an investment in institutionalized category marketing, rather than an institution to do category marketing.