The American softwood sector is taking an ever more global perspective.
Last year its exports hit a record US$922m, compared to US$844m in 2016, and its spread of markets was worldwide. Southern yellow pine was the dominant export species with sales of US$315m, with Douglas fir in second place at US$177m.
Continuing its streak as the single largest destination for American softwoods, surpassing Canada, Mexico and Japan, China imported US$225m-worth, up 20% on 2016.
To help cultivate sales, American Softwoods’ (AMSO) office in China has worked closely with the Chinese Ministry of Housing and Urban Rural Development on revising Chinese building codes and standards. It has also been working with the authorities on establishing conformity systems for various wood products for structural applications. As a result, the North American 2×4 construction system and design properties of commonly used American species are now recognised in Chinese building codes and standards. American sales to the EU were also healthy in 2017, amounting to US$48m. Italy was the top destination for lumber, with imports of US$7m, followed by the UK with US$6m. UK sales are dominated by southern yellow pine (SYP), which is used mainly for decking, where it has 15% market share.
Another burgeoning EU market is for American softwood veneer. Sales hit almost US$11m in 2017 and are up 300% in 2018. And clearly targeting further European growth, AMSO will be exhibiting at Carrefour International du Bois in Nantes from May 30 to June 1, with 15 American exporters.
Other overseas exhibitions, including the Dubai Wood Show, form a key part of AMSO’s promotional strategy. It used the 2018 Dubai event in part to target buyers from Pakistan, with a seminar for buyers on the characteristics and benefits of the main American softwood species. Travel to Pakistan is currently problematic, so the show has become popular with Pakistani traders wishing to meet American suppliers. Sales of American softwoods to Pakistan in 2017 were US$38m, up from US$30m in 2016.
Exports to India also increased significantly, up from US$9m in 2016 to US$24m in 2017.
Other markets being targeted include Egypt, notably its furniture sector, which turns over US$750m and has healthy exports.
It promotes to the country via the Emerging Markets Program (EMP), which is designed to kick start educational and promotional activity in new markets showing latent export potential. To strengthen its Egyptian ties, AMSO is also hosting grading seminars in Cairo, Alexandria and furniture sector centre Damietta later this year.
The American softwoods sector has also been focused on developing its North American markets through the Softwood Lumber Board (SLB) promotional initiative.
This is claimed to have generated 1 billion board feet of incremental demand in 2017 alone, and to have created 3.6 billion board feet of additional sales since 2012. That, it says, equates to US$19.74 of revenue for every US$1 invested in its programmes.
The SLB backs a number of complementary activities and bodies focused on boosting American softwood demand, sales and revenue and on supporting new applications.
The American Wood Council has successfully lobbied for use of wood in a broader mix of building types, sizes and heights, while the Think Wood campaign’s role is strategic communications to increase awareness and interest in the use of softwood lumber in non-residential construction.
WoodWorks supports architects and engineers converting projects to use timber and the Wood, Naturally campaign targets homeowners and their influencers to steer them toward wood for residential uses.
A key aim of the SLB is to see more innovative and ambitious use of wood in construction, notably high rise. It’s estimated that North America’s accelerating shift to offsite construction could generate 1 billion board feet of new lumber and mass timber consumption. Meanwhile, increasing softwood lumber’s share in one- to four-storey non-residential construction to 25% would generate an extra 1.6-3.4 billion board feet of demand annually. The SLB believes similar untapped potential exists in five- to sixstorey and seven- to eight-storey segments.
Bringing its domestic and international perspectives together, the SLB is also keen to collaborate with partners abroad on messaging, strategy, research, and implementation tactics, “appreciating the positive impact that collaboration can have on softwood lumber demand and markets worldwide”.
It will participate in the International Softwood Conference in October in Latvia and is supporting the Council on Tall Buildings and Urban Habitat Conference in Dubai. It urges delegates at both to seek out SLB personnel “to learn more about its work to transform North American markets and forge new international collaborations”.
