Composite Panel Association Meeting Marked With Optimism, High Attendance

Business is improving, albeit slowly, for the composite panel industry. The news set the tone for the Composite Panel Association’s spring annual meeting, which saw its highest attendance since 2007. More than 280 people, representing 118 woodworking firms and related organizations, converged on Bonita Springs, Florida, May 31-June 3 for the event.

Dr. Bill Conerly, Conerly Consulting LLC, kicked off Monday’s session, providing an economic outlook for building materials, including a look at new opportunities and risk factors. Although the early outlook is positive for 2015 and 2016, he cautioned companies to take a “flexible stance” when planning for a changing economic landscape. In a nutshell, he said, the most likely economic scenario will be: “better markets for composite panels, stronger growth in the rest of 2015 and for 2016, higher interest rates, and oil prices around $60 to $70.”

To ensure they stayed successful, John Spence of John Spence LLC provided wood industry executives with a winning formula: (T+C+ECF) x DE = Success. The elements in the equation represent Talent + Culture + Extreme Customer Focus, multiplied by a Disciplined Execution. Culture, he explained, should not only reflect what corporate wants, but employees’ needs as well. Spence cited a recent study which found employees are most satisfied in their jobs when the following terms are met: parity in pay, challenging work, cool colleagues, a winning culture/fun workplace, the opportunity for personal and professional growth, and a boss or leader that can admire.

“One of my favorite sayings is ‘Ambiguity breeds mediocrity,'” Spence added. To avoid that pitfall and create a good corporate culture, there needs to be: goal setting, trust, communication (open, honest, robust and transparent), accountability (personal and mutual) and recognition. “The customer’s experience will never exceed the employee’s experience,” he added. “Create a culture that catches people doing things right.”

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/composite-panel-group-meeting-kicks-optimism-high-attendance?ss=news,woodworking_industry_news

North American EWP Production Declines Further

North American production of engineered wood products (EWP) declined again in the first quarter of 2015.

In spite of a customary seasonal revival compared to the previous quarter, production volumes of LVL and I-joists were down year on year. The weakening trend already seen in the fourth quarter of 2014 has therefore continued.

While the reason quoted for production cutbacks at the end of 2014 had been primarily the slow recovery of the business situation in new residential building and adjustments to stock, the weak start to 2015 has been partly blamed on the cool weather prevailing in most of the eastern federal states.

North American LVL production has declined year on year by 3%. A moderate minus of 1% in the USA is contrasted by a sharp fall of 17% in Canada.

From EUWID: https://www.euwid-wood-products.com/news/wood-based-panels/single/Artikel/north-america-ewp-production-declines-further.html

B.C. OSB Mill Given Green Light On MDI

B.C. OSB Mill Given Green Light On MDI

 

Despite local opposition, Peace Valley Oriented Strand Board (OSB) in Fort St. John has been granted an amendment to its Environmental Certificate to allow the use of a controversial chemical in its manufacturing process. The plant is currently only permitted to use phenol formaldehyde resin as an adhesive — a condition on its original certificate.

The Louisiana-Pacific Ltd. (LP) plant applied for the amendment to use methylene diphenyl diisocyanate, or MDI, at its factory for the production of its particleboard items in spring 2014. Before that, it had applied to the Ministry of the Environment for an amendment to its Discharge Authorization Permit to use MDI at the plant in late fall 2012.

MDI would be incorporated as a resin into the core of the oriented strand board before it undergoes the pressing process. During that process, MDI would be discharged from the press vent stack.

The news of the certificate’s amendment was met with disdain from at least one Baldonnel resident, Sandra Cushway, whose 2013 Freedom of Information request revealed “hundreds of pages” of non-compliance to environmental regulations with Peace Valley OSB.

Peace Valley OSB is now following up on its discharge permit from the Ministry of Environment to have it altered to include MDI emissions.

From Alaska Highway News: alaskahighwaynews.ca.

 

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StemWood Veneer Will Close Operations

StemWood, a veneer and lumber mill, says it will wind down operations by the end of the 2015. StemWood produces high quality 4/4 walnut, cherry, white oak and red oak lumber as well as flitch and “clipped & bundled” hardwood veneers in a variety of species for a worldwide market.

“The exodus of American furniture manufacturing to Asia and the prolonged recession in new housing have been punishing blows to our business model,” says David Wunderlin, who has been president and part owner of StemWood since 1989.

Wunderlin said in a statement the closure is a management decision based on the economics of the company and the industry, and that its owners are actively seeking alternative operators or new uses for StemWood.

“StemWood is under no duress from any outside source,” Wunderlin says. “We are operating extremely well. Our productivity is high and our quality is excellent. Our management team simply understands how harshly the dynamics of our industry are working against us.”

Wunderlin says StemWood has seen over 90 customers or competitors cease production in recent years, including a dozen in its Southern Indiana locale. The owners say they are seeking alternative operators or new uses for StemWood.

From Woodworking Network: https://www.woodworkingnetwork.com/wood/wood-veneer/StemWood-Veneer-Lumber-Mill-Will-Close-Operations-Citing-Asia-Furniture-Closures-304042261.html#sthash.UEmMngWy.VwQH26V4.dpbs

PFS Corporation And TECO Merge

PFS Corp. and Timberco, Inc. (TECO), two third-party certification agencies that have been linked for almost 25 years, have merged as of May 1, the company said in the press release received by Lesprom Network.

On May 1, 2015, Jim Husom, President and CEO of PFS Corporation, and Steve Winistorfer, President and CEO of TECO, signed papers merging the two companies. In announcing the merger, Jim Husom commented, “This merger combines what have been two well-respected and successful companies into one; and as one, we’ll be able to provide even more effective and efficient service to our existing clients and grow our business more than we could individually.”

The two companies together provide certification and testing services for more than a dozen different building products, including engineered wood products like LVL, I-joists, and glued laminated timber; plus SIPs (structural insulated panels), OSB (oriented strand board), softwood and hardwood plywood, metal plate connected wood trusses, adhesives, pre-cast concrete panels, hearth products, and construction fasteners for approximately 500 manufacturing plants.

Their testing laboratories, located in Wisconsin and Oregon, perform a variety of structural tests, durability tests, formaldehyde emissions tests, and some fire tests. The PFS Manufactured Structures Division provides design approval and factory inspections to over 120 HUD Code and modular building factories in 39 states and Canada.

From Lesprom Network: https://www.lesprom.com/en/news/PFS_Corporation_and_TECO_merge_67829/