Seminar series and trade show exhibit in Mexico August 2017 Page 1

Activity Report

Seminars in Cancun, Tijuana, and Guadalajara and exhibition at the Tecnomueble tradeshow

August 10th - 20th, 2017 A. Travelers Natalie Macias, Latin America and the Caribbean Representative, APA – The Engineered Wood Association, Panama Fernanda Vale, Director, American Softwoods Latin American Office, Mexico City, Mexico Gabriela Sandoval, American Softwoods Latin American Office, Mexico City, Mexico

Roland Hernandez, Bell Structural Chris Wischmann, Norbord

Felix Rivera, Structural Engineer, Puerto Rico Eric Gee, SFPA Director, EXPO, Lumber Products & Forest Resources Jerry Hingle, SFPA/SLMA International Program Consultant

Hector Dimas and Aimee de Santiago, Boise Cascade Ken Caylor, Pacific Wood Laminates Daniel Gonzalez, UFP International B. Purpose To conduct a series of educational seminars in Cancun, Tijuana, and Guadalajara, meet with key wood traders in Tijuana, and exhibit at the Tecnomueble trade show in Guadalajara, Mexico.

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C. Itinerary August 11 – Seminar in Cancun August 12 – Trade servicing in Cancun August 13 – Travel to Tijuana August 14 – Importer meetings in Tijuana August 15 – Seminar in Tijuana August 16 – Exhibit at Tecnomueble

tradeshow

August 17—Conduct seminar in Guadalajara;

exhibit at Tecnomueble tradeshow August 18 – Meetings with importers association IMEXFOR; exhibit at Tecnomueble tradeshow August 19 – Exhibit at Tecnomueble tradeshow D. Summary and Observations: The seminars featured several speakers covering a wide array of topics. Eric Gee, representing the Southern Pine lumber industry, discussed Southern Pine preservative treatments, grades, end-uses, and reforestation. Chris Wischmann, with Norbord, discussed the OSB manufacturing process and different OSB applications and Roland Hernandez, from Bell Structural, discussed Glulam applications and their use in timber construction. Finally, Felix Rivera, a structural engineer, discussed timber construction in different climates as well as proper use of connectors. Educational Seminar in Cancun The Yucatan region of Mexico is an important destination for U.S. softwoods – Southern Pine in particular – in resorts and marine applications. Rising construction is driving demand for softwood lumber while domestic production lacks in both quality and availability. Cancun and Merida are two important target cities in the region. The seminar in Cancun gathered 24 attendees representing a good mix of wood traders and construction professionals, many of which claim to be using or trading U.S. wood products. Nineteen evaluation surveys were collected from the audience. Respondents agreed that the topics were well delivered and very useful, with many respondents requesting technical support in designing for hurricane resistance, designing multistory buildings, and more information on potential structural failures when building with wood. Additional detail on preservative treatments used in humid climates and to thwart termite attack was also requested.

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Most of the respondents found the discussion on glulam beams and its wide variety of applications of interest. Regarding OSB, respondents expressed interest in learning more about connectors and how they are integrated into building systems in humid weather. Trade servicing and site visits in Cancun Customary to conducting seminars in the region are site visits to local lumber distributors and end-use applications of softwoods. U.S. softwoods are increasingly observed in the region, an encouraging trend and testament to the long-term outcome of the U.S. industry’s promotional efforts. Preservative-treated wood from the U.S. can be seen throughout the area in decking, boardwalks, and marine applications in hotels, restaurants and tourist areas. The harsh tropical environment and salt water takes its toll on wood decking, with checking and warping occurring after just a couple years in service. Discussions with local deck installers show little understanding of how to maintain decking and wax-based coatings – such as Thomson Water Seal -- appear to be unavailable in the market. And, despite its high costs, the team observed increased usage of composite decking, reportedly due to disappointment over the short lifespan of wood decking (aided by little understanding of deck maintenance). And, while some deck installers – such as the Cancaun-based company Docks+Decks -- do carry treated Southern Pine, tropical hardwoods still dominate the market. U.S. softwoods are carried in common dimensions and lean towards No. 2 and, in

Domestic pine at Home Depot, the largest lumber distributor in the

region

Tropical hardwoods dominate the market while composite decking

increasingly in use

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treated lumber, No. 2 Prime grades. Mexican material generally suffers from bluestain as a result of little or no kiln-drying capacity, but material observed at Home Depot (pictured) was of good quality and kiln-dried. One importer mentioned having to cancel a large order of pressure-treated Southern Pine due to local quarantine officials insistence that it be kiln dried after treatment. However, it was later confirmed that confusion was caused by a clerical error and treated lumber imports are not required to be KDAT. Trade servicing and site visits in Tijuana In Tijuana, the team visited Maderas y Materiales JR, a high volume lumber distributor that has been in business for over twenty years. The company handles small volumes of Southern Pine lumber; most of its inventory is Ponderosa Pine and Douglas Fir sourced from the (nearer) western United States. The company also handles a wide variety of tropical hardwood from various countries. Their plywood and OSB is mainly from the U.S. (mostly sourced from APA members), as well as some other products such as particleboard and glulam beams. They mainly sell to factories and lumber and panel distributors, with little volumes going to the retail market. Madereria La Esperanza is a lumber and hardware store that handles several types of lumber and panels. A medium-sized company with a small inventory, the company sells to the wholesale and retail trade with its main clients being carpenters and furniture manufacturers. Most of the softwood lumber it handles is green. The company has two additional outlets in the Baja California Peninsula. They are looking to source OSB directly from the U.S. Educational seminar in Tijuana

The seminar in Tijuana gathered an audience of 21, mostly wood traders and construction design professionals. Attendees commented that Southern Pine and glulam beams are ideal for their business and are considering adding those products into their company catalogs. They found American Softwoods’ literature very useful to their sourcing

Extensive splits and checks in Southern

Pine decking after a few years in service

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of Southern Pine. Many attendees requested additional information on proper wood frame construction practices. Trade servicing in Guadalajara

In Guadalajara, the team visited a number of construction sites using U.S. HDO and MDO panels for concrete forming, notably a large project that encompasses a shopping mall, gym, and apartments. The builder expects to complete the project in mid-2018 and will leave the concrete exposed, a design trend in Mexico. Educational seminar in Guadalajara Attendance was strong with an audience of 55, mostly in the furniture trade and manufacturing, as well as a handful of wood traders. Attendees noted that the seminar topics were very interesting, and many requested additional information on the toxicity of different wood preservative treatments and more details on calculating loads when designing structures of wood. Others requested details on roof installation. In addition, some requested additional details regarding the construction of a complete structure – best done by way of a hands-on workshop. Tecnomueble tradeshow The tradeshow, held at the Centro de Exposiciones Guadalajara and AFAMJAL, was organized by the Jalisco Furniture Manufacturers Association. The event encompasses the Tecnomueble tradeshow (gathering furniture providers) and the MOBLAJE tradeshow (gathering furniture manufacturers) and is among the best gatherings to promote U.S. softwoods.

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The event gathered over 200 exhibitors and some 5,000 visitors from Mexico and other countries including Guatemala, Brazil, Italy, Germany, Ecuador, Costa Rica, and the U.S. American Softwood’s booth space was larger this year and featured OSB panels, I joists, glulam beams, and treated Southern Pine for flooring. Some of the most popular products at the exhibit included structural OSB panels, glulam beams, roof shingles, HDO, MDO panels and Southern Pine. Inquiries centered on Southern Pine as well as U.S. plywood, HDO, and MDO for concrete forming. Many commented that wood imports from Chile and Brazil is on the rise and reportedly offering very competitive process. Most of the attendees were looking for local distributors in Puebla, Merida, and Quintana Roo. Others import panels and lumber from U.S. as well as from Canada, Chile, Uruguay, Argentina, China, and Brazil; very few requested lumber with certification such as FSC. Some lumber importers mentioned that they handle Chilean lumber mainly due to its price, but they have clients that require Southern Pine because of its strength despite its higher price compared to Chilean radiata pine. Attendees mentioned that in Mexico the main uses for Southern Pine are for decking, pergolas, packaging, pallets, outdoor furniture and marine applications. All these uses require lumber that has high strength, and in most cases lumber that has been pressure-treated. There was also interest in glulam beams, truss beams with long spans, and I joists. One attendee from Chihuahua mentioned that they urgently needed glulam beams for a project in that city. E. Principal contacts from trade servicing: MADERAS Y MATERIALES JR SA DE CV Saul Padilla Av. De los ganaderos 21834 colonia Ejido Matamoros Tijuana Baja California CP 22204 Tel oficina (664)7010160 Cel. (664) 6259492 Panel and lumber importer and distributor

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MADERERIA LA ESPERANZA Marcela Murguía Almaraz

Sucursal CentroCalle 11 # 8515 Entre Ocampo y Madero Zona Centro

C.P. 22000, Tijuana, Baja California Tel. 664 200 2726, 661 1000577,664 309 6719 compras-intl@anteus.mx Panel and lumber importer and distributor Anteus Constructora S.A. de C.V. Lic. Roberto C. Baeza Estrada compras-intl@anteus.mx Alfonso Ramirez Guitron aramirezg@anteus.mx Jordi Acosta jacostal@anteus.mx

Av. Vallarta 6503 Local L6, Col. Ciudad Granja Zapopan, Jalisco, México. C.P. 45010 Tel.: +52 33 31 10 13 13 Ext. 105 Anteus.mx Construction company that uses HDO, MDO and PSF panels for concrete forming. F. Conclusions and recommendations The three seminars and trade show exhibit yielded considerable exposure of U.S. softwoods to wood traders, construction professionals, and furniture manufacturers. While the U.S. industry has made much progress in gaining share of this market – as evidenced by the growing usage of U.S. softwoods, particularly in the Yucatan area -- there remains a lack of knowledge regarding U.S. softwood lumber, structural wood panels, and engineered wood products. The lack of knowledge does not appear to be limited to any one part of the supply chain or geographical area: Importers, distributors, architects, engineers and end-users are all requesting additional training on specifying and applying U.S. material. A common theme heard at the events was where and from whom to source U.S. material and construction design considering high humidity, seismic zones, and high wind. Additional educational efforts are needed to address this, and plans are underway to conduct training jointly with the Mexican Chamber of Construction in 2018.