concept that is a new way of providing value to builder's merchants ..... âOnline review sites have become an importan
timbernews A magazine for SCA’s solid-wood products customers | www.scatimber.com
4 2016
US housing construction on the rise Digital initiative to provide better service and make life easier for customers JéWé – at the forefront of e-commerce
The sawmill revolution
Michael Wicklund, Sales Manager at SCA Timber in the US.
content Spectacular light show marks opening of new Tunadal saw line 3 SCA Timber invests in digital services
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JéWé - from building materials to trendy and home improvements 8 US housing construction on the rise
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SCA Timber Supply UK expands into Scottish Market 13 Meet Bruce McKay
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Movers and shakers
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Fast scanning of logs garners prestigious award
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Continued strong solid-wood products market
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Paper tales and cutting-edge art
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mills at Munksund, Rundvik and Gällö are also in the top ten of Sweden’s largest and most efficient sawmills. We now have a group of sawmills that are modern and well equipped to meet the growing needs of the future for new products and resource efficiency. But we have also invested in value adding. Our Kramfors plant produces one million shelving systems a year in flat packs, including screws and instructions. In France, we produce interior wood products of the highest quality. Our latest SEK 50 million investment in Tunadal’s planing business increases our capacity to produce the best-performing painted exterior cladding on the market. Technology is not an end in itself. Its
This development has allowed us to
engage with customers in an entirely new way. We have become a resource for our customers and together we are now developing innovative products that strengthen their sales. We have been able to approach new market segments. In some cases, this has involved us moving along the processing and distribution chain. In other cases, we have taken over particular industrial customers’ processes relating to raw materials handling and component production.
purpose it to provide products and product properties that our customers want and that always make wood the natural choice. And our customer offering and service also needs to gradually improve. That’s why in 2016 we substantially upgraded our French and UK operations through the acquisition of Pôle Atlantique in Rochefort and Cumbernauld outside Glasgow. These initiatives will allow our highly capable employees to realise the full potential of our renewable and high-quality raw material.
Our investment in a new saw line at
Jonas Mårtensson, President of SCA Timber
Tunadal sawmill has resulted in a worldclass facility. Step by step, we have invested SEK 1.3 billion to develop Tunadal into a solid-wood products industry that uses the best-known technology to efficiently use the full potential of the raw material and, where the market conditions are right, to process that raw material all the way into consumer products.
Photo: Per-Anders Sjöquist
Photo: Mats Wigardt
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technical revolution has taken place in our sawmills. It wasn’t long ago that sawmill production involved a vague understanding of product properties, low speed visual inspections and the manufacture of basic products. Today, modern X-ray and image scanning technologies allows us to see into logs and utilise their full potential. Our sawmills use advanced camera and imaging technology that allows us to guarantee specific product properties. We have increased workflow rate and management to the point where a modern sawmill is now more a process industry than a production facility involving manual stages. Both skills and productivity have increased dramatically at the same time.
Tunadal Sawmill is one of Northern
Europe’s largest and most efficient spruce product facilities, and Bollsta sawmill is the equivalent for pine products. Our sawTimberNews SCA Forest Products AB SE-851 88 Sundsvall, tel +46 60 19 30 00 www.scatimber.com
Timber News is published four times a year Editor-in-chief Björn Lyngfelt Production KarMin kommunikation Repro & printing Åtta.45 Tryckeri AB, Sundsvall Subscribe to Timber News, please contact
[email protected] Feel free to quote us, but please name us as your source.
SCA TIMBER is one of Europe’s leading manufacturers of wood-based products, with an annual production of 2.1 million cubic metres. The product range is supplemented with distribution solutions for customers in the wood industry and builders’ merchant sector. SCA Timber is part of SCA’s Forest Products business unit, which produces publication papers for newspapers, magazines and catalogues, as well as paper for packaging, solid wood products, pulp and renewable energy. SCA Forest Products also manages SCA’s extensive forest holding and supplies SCA’s Swedish industries with wood raw materials, in addition to offering cost-efficient transport solutions to SCA’s units.
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Spectacular light show marks opening of new Tunadal saw line
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On Thursday 17 November, the new saw line at Tunadal sawmill was inaugurated amid pomp and ceremony, with over 300 guests in attendance. Following a tour of the new facility, the guests listened to speeches by County Governor Gunnar Holmgren and Ulf Larsson, President of SCA Forest Products. The ceremony ended with a spectacular light show.
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he day began with an SCA Timber Outlook seminar for invited customers. The seminar was introduced by Jonas Mårtensson, President of SCA Timber, who set out SCA Timber’s vision and strategy. Annelie Forslund, Digital Marketing Manager, gave a presentation on digitalisation in the building material sector and SCA Timber’s initiatives in this area. “The biggest challenge is to take the step of putting the customer at the centre and making genuine changes throughout the organisation. To do that, you need to start by understanding customer needs and planning your digital approach accordingly,” said Annelie Forslund. Markus Henningsson, Managing Director of SCA Timber Supply Skandinavien, outlined the SmartTimber initiative. SmartTimber is a value enhancement concept that is a new way of providing value to builder’s merchants and DIY customers. A major area that was discussed in detail was sus-
tainability. Mats Sandgren, President of SCA Skog, spoke about sustainable forestry for reduced carbon emissions and Ulf Johansson of IKEA gave a presentation on IKEA’s strategies to create a better life for the many people for whom sustainability is a key issue. He explained that by working for a sustainable world, we can also save time and have a positive impact on our planet. “For us it’s about helping our customers to live more sustainably and healthily, as well as changing our internal processes and production chain to enable us to use sustainable materials and energy. We want to help people and communities create a better life by improving their working environment and conditions in our factories around the world,” said Ulf Johansson. Anders Ek, President of SCA Timber Supply, rounded off the morning seminar with a detailed review of the sawn solid-wood market. He set out production and consumption estimates, along with an explanation
of how these are forecasted to balance. The conclusion was that the predominantly positive market conditions seen in 2016 are likely to continue next year. Over 300 guests, including customers from around the world and employees, gathered at Tunadal sawmill to attend the inauguration of one of Europe’s most modern sawmills. “Tunadal was Sweden’s first steam-powered sawmill and was the springboard for the dynamic development of the forest industry in northern Sweden. More than 150 years later, Tunadal sawmill is still a flagship of the Swedish forest products industry and, along with the rest of the industry, places the highest possible value on the region’s most important natural resource,” said County Governor Gunnar Holmgren in his introduction. Ulf Larsson, President of SCA Forest Products, added: “Step by step, we have invested a total of SEK 1.3 billion to make Tunadal sawmill the internationally competitive facility it has to be to create the highest possible value from our forest raw material so we can support SCA’s other forest products operations in the region and be a flagship for our solid-wood products business.”
Ulf Johansson of IKEA gave a presentation on IKEA’s strategies for creating a better life for the many people for whom sustainability is a key issue.
Guests at the official opening were given a guided tour of the new saw line.
Annelie Forslund, Digital Marketing Manager, gave a presentation on digitisation in the builders’ merchants sector.
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The new facility is both highly cost-efficient and
energy-efficient. “We utilise seawater for cooling and also make use of heat recovery. Energy for drying comes from the close collaboration between our own industry and Sundsvall Municipality’s energy system which, overall, makes for a highly energy-efficient solution,” explained Ulf Larsson. Katarina Levin, Manager of Tunadal Sawmill,
expressed her pride at the project and the work done by her colleagues. “It’s great to finally celebrate the opening of our new saw line and a successful project. The new saw line gives us a sawmill that provides SCA Timber with strength and ensures it can face the challenges of the future, as well as securing good health and safety and an excellent work environment for all employees. I’m absolutely delighted. As we like to say in Tunadal – it’s all of us together that make Tunadal so great,” said Katarina Levin. Text Patricia Knutsson Photos Per-Anders Sjöquist
Ulf Larsson, President of SCA Forest Products, and Gunnar Holmgren, County Governor, officially opened the new saw line at Tunadal Sawmill.
More than 300 customers, contractors and employees gathered at the saw line to take part in the inauguration.
Jonas Mårtensson, President of SCA Timber, kicked off the Outlook seminar.
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Volker Geiger, President of Linck, handed over a gift to Katarina Levin, Sawmill Manager at Tunadal.
Dinner guests were treated to a high-energy, entertaining show by Stefan & Kim.
SCA Timber invests in digital services The first quarter saw e-commerce grow by 15 percent (figures for the Swedish market), with the largest increase coming in the Building material and DIY sector. Builders’ merchants are increasingly offering online sales and developing options for flexible deliveries. SCA Timber is now also investing in digital solutions and services and has hired Annelie Forslund as Digital Marketing Manager.
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nnelie has an engineering degree from Chalmers University of Technology in Gothenburg. She is an analytical engineer and management consultant who has worked in business-related projects with a strong focus on change management. “I enjoy finding opportunities for improvement in business and motivating and involving colleagues. I’ll now have the chance to use my experience to establish strategies and develop the digital area. It’s exciting,” says Annelie.
solutions that make life easier for them. Different customers have different needs and that depends on who their customers are and what their needs are. That means we need to understand the end-customer better. Increasing our knowledge of both our customers and their final customers will enable us to inspire more people to
As Digital Marketing Manager,
Annelie will oversee the development of SCA Timber’s digital business solutions and business communication. “It’s about developing our product and sales support, analysing the need for interactive training and working on brand identity and image. A lot of digital development is about assessing customer needs and meeting those needs in the digital world,” says Annelie. Statistics show that the builders’ merchants market is increasingly introducing digital solutions and services. Consequently, customers are increasingly looking for suppliers that have a digital presence. “Initially we’re going to review the needs of our customers in the builders’ merchants sector so we can create digital
use wood products and help drive sales for our customers,” adds Annelie. SCA Timber has significant knowledge
about the sector and the final consumption. But customer behaviour is changing as digital services are created. For example, purchases made on mobile phones increased by 16 percent in the first quarter in Sweden and four out of ten Swedes purchased products online. “The digital market is developing rapidly. Offering the right solutions requires good knowledge of current conditions and keeping an eye on the future and analysing what services best solve customers’ problems and make life easier for them. And you also have to keep up with changing needs.” SCA Timber’s digital initiative will start
Annelie Forslund, Digital Marketing Manager at SCA Timber, is working on creating digital solutions that make life easier for customers. Photo: Per-Anders Sjöquist
with the Swedish market, but in the longer term it will be offered on the Scandinavian, UK and French markets. “The first thing that I’ll be focussing on will be identifying the needs of our different customer segments. They have a lot in common, but some of our customers have a greater emphasis on trade professionals, while others are more geared towards the DIY market and needs may vary depending on the end-customer. Using the results of this analysis, I’ll produce a plan of priorities for which digital solutions and services need to be developed.”
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Annelie will also be in charge of de-
veloping a digital omnichannel strategy for SCA Timber. This is an important area to develop and is the key to being able to offer digital solutions. “One of the main challenges in the building material sector is finding solutions for digital services for goods ordered online that are delivered right to the door of the final customer. It takes a lot to be able to deliver large parcels with boards and planks. So we’re going to conduct a preliminary study with a logistics firm to examine what’s required for us to provide our customers with better service through digital solutions.” The situation analysis that Annelie is currently working on will provide knowledge that is vital for this future development. “Knowing more about these needs and creating KPIs to measure the results of this digital initiative will allow us to track developments closely. Monitoring will be important for continuing this development and providing customised solutions as requirements change.” The digital solution initiative comes
at an opportune moment for the whole of SCA Timber, but it also provides good support for SCA Timber Supply Skandinavien’s launch of the SmartTimber value enhancement concept. “We’ll soon be launching a new website linked to SmartTimber. It has a strong focus on customers and the products they want. As we gain a greater understanding of the need for digital solutions and services, these insights will be used to continue developing the concept,” says Annelie. “This is a fascinating job in an area with real potential for development and where we can make a real difference for our customers. SCA Timber is a great company that offers the opportunity to work with a natural raw material that is beneficial for the environment. By focussing on digital channels, we can increase sales of wood products and raise awareness of all the benefits of solid-wood products,” says Annelie. “I enjoy the challenge of creating new solutions and services for our customers. And I like that we can offer services that solve day-to-day problems that customers haven’t even thought of themselves – their unspoken needs. To reach that point, we really need to get to know our customers and engage constructively with them.” Text Patricia Knutsson
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Some customer views on digital services Emma Engström, Head of E-Commerce and Web, Byggmax: How do you view SCA Timber’s digital initiative and how will it lead to new sales and stronger customer relations? “I think it’s great that SCA Timber is focussing on digital. Online sales of building materials is an area that’s growing really fast, so it’s important that our suppliers keep pace with developments. A key success factor in online sales is being able to offer high-quality products in specific lengths. Shipping solutions will become even more important in future. What digital services do you think will be in greatest demand initially? “An area that is of real interest and important in supporting digital services is delivery to final customers. We hope SCA finds good solutions for this. In Sweden, it’s difficult to deliver bulky timber when customers expect free shipping and quick deliveries. Lots of people expect to receive products to their door the day after ordering.”
Jamie Pierce, Marketing Manager, Parker Building Supplies Limited: How do you look upon the decision from SCA Timber to put resource into developing a Digital business? “The digital age is already upon us and as an industry it is important that we greet it with open arms. If it is not already, it will become in an imperative tool in the marketing strategies of all concerned. It is great to see SCA Timber have taken the decision to implement a digital arm within their business.” From your experience, which digital service would you want to see first from a supplier like SCA? “I think it is important that, firstly, you understand what exactly you want to achieve from your digital arm. You need to make sure your digital strategy is set and the goals/objectives are achievable before progressing forward.” “From experience, we’ve found that social media is the instrument where merchants and suppliers have the most success with engagement. Twitter in particular fosters engagement because you are able to connect with the end user (customers of ours).” “As a final word…It’s not only our industry this is happening in! The change is real and happening as we speak. It’s time to get on board the 20:16 to Digital Alley!”
Statement from The Home Depot: “Digital sales continue to be a critically important area of growth for The Home Depot. By putting more emphasis on our online strategy, we are able to push the envelope with initiatives like the buy-online, pick-up-in-store functionality as well as next-day delivery of bulk items like timber. We are also able to offer a much broader assortment of products online to improve our customers’ experiences.” “Online review sites have become an important place where customers seek information about products and retailers.” “Home Depot is always working to make homedepot.com more relevant to the customers and easy to view products and their features using information boards, video, 360 degree images, point of sale information.”
JéWé – from building materials to trendy and home improvements JéWé, the Dutch supplier for the Do-it-yourself retail sector, has taken the big leap into digital business. All its products are available on the websites of JéWé, JéWé’s product brands or JéWé’s customers. And the company expects its suppliers to leap with them.
the rest of Europe’s business, JéWé was also hit by the crisis 2008-09. The DIY sales dropped drastically throughout Europe. “During the years before the crisis, we had invested heavily in automation,” says Petra Geeve. “We worked together with our customers to reduce the assortment of products, to focus on fast moving and higher added-value products. In many product segments, we managed to maintain sales while producing fewer items.” “Sales has since then rebounded, particularly in Benelux, where there Together
with
Photo: JéWé
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éWé is a supplier specialized on the Do-it-yourself market segment, but also supplies builders merchants, in the Benelux countries and also in France, Hungary, Spain and Portugal. The product range includes mouldings, wardrobes, made to measure sliding doors (own production), flooring, planed laths and wall and ceiling solutions. “We have been trying to follow and keep abreast with trends among the Do-it-yourself customers of our customer’s,” says Petra Geeve, Purchasing Manager. “That’s why we have a specialized New Product Development team and recently we created a “trend team” that goes to home improvements fairs and other places, to study the fashions related to colors and materials. The team brings out new products and creates the coming trends. From being followers of fashion and fulfilling our customers’ requests, we now take a leading role in influencing what will be sold. Consumer and Customerintimacy are key-words in this.”
JéWé is not only a supplier specialized on DIY. The Dutch company detect trends, develop appropriate products as well as inspiring their customers.
has been healthy growth from 2014 and onwards. France, Spain and Portugal remains more challenging, but are also growing.” JéWé is aspiring on a leading role
for the development of digital business in the building materials sector. The company has an in-house studio in its factory, where all products, including the simplest and most traditional ones, are being photographed and presented on websites, together with all possible information – technical data, installation instructions, suggestions of designs and combinations. JéWé creates an information package and offers it as a tool to service their Doit-yourself customers. The consumers can access the information via the websites of their DIY retailers. Wood-based products for home
use are either sold with the own JéWé brand “Can Do” (www. cando.eu) or under the brands created by JéWé for their individual DIY retail customers. In both cases, JéWé develops the full online package for the customers. “The consumers can sit in front
of their computers, or at computers in the DIY stores, and see how a product that interests them will look once installed, says Petra Geeve. A customer interested in a wardrobe for his bedroom can design it himself and order it from the DIY retailer in the exact personalized format that he wants. JéWé will supply this personalized product within 15 days, either to be picked up at the DIY store or delivered to his house by JéWé.” “The DIY sector is changing. Focus is more on omnichannel. There will continue to be some “mega stores” with everything, but we will also see more of modest sized specialized “concept stores”, especially in the big cities such as Amsterdam. Consumers will visit these stores to see samples, get ideas, suggestions and expert advice. Then they will go home, order online and have the product delivered to them.” SCA has been a long-time supplier
of JéWé, with high quality spruce raw material for the production of finished mouldings.
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Photo: JéWé
Friendly, with ambience and comfort. That is what JéWé devise and produce intelligent products for. Cupboards, floors, skirting boards, panel material, scaffolding wood and doors...
“SCA has been a good supplier, but we expect more and we expect SCA to follow and support us in this changing Do-it-yourself sector, says Petra Geeve. More short term we want more of adapted grades and lengths. A more exact lengths specification will lead to less waste. And delivery precision must improve even further.” “Over the long term, our suppliers must do more for us. We will follow our customers and their customers into more individual and
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personalized offerings and deliveries and our suppliers must join us in this development. One example could be painted cladding made available on a call-off basis, offered with packaging and barcoding and with web support.” “We are moving more and more from the building materials sector into a trendy home-improvement sector for urban and digital consumers,” concludes Petra Geeve. “And our suppliers need to follow us on this journey.”
JéWé has the website
www.jewe.eu …and product sites like
www.cando.eu www.lundia.nl www.raffito.com www.storemax.eu www.agnes.nl
US housing construction on the rise The 2008 financial crisis hit the North American timber market hard. It was difficult to get a loan and no new houses were being built. Demand for sawn timber fell dramatically. But confidence has returned in the US and house building has taken off once more.
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ohan Ekman is putting the finishing touches to an exclusive site-built house he has constructed for a customer in Mequon, a prosperous suburb of Milwaukee, Wisconsin in the US. The house is due to be surveyed in two weeks’ time. It measures approximately 500 square metres, featuring exclusive materials, unique details, large open areas with visible wood elements and a garage for 16 cars. “The customer collects cars,” notes Johan with a wry smile. Johan Ekman has been building houses in America for
almost 30 years. His company is small, with only two employees, but with an extensive network of talented contractors. Since starting, the company has built around 130 large, prestigious houses, in addition to many extensions and refurbishments. The company’s main construction material is wood, for beams, rafters and for flooring, walls and roofs. But following many years of a continual stream of customers, things suddenly ground to halt in 2008. The financial crisis meant people didn’t want to spend money. Even those people who could afford it stopped building new houses. ‘For sale’ signs were everywhere, even in high-income areas. “There’s less appetite to build when you’re worried about losing your job,” says Johan Ekman. “Lots of timber yards closed down, a manufacturer of plaster
boards I know had to cut its staff from over a hundred to around 10 people, and plots for new houses went unsold.” But Johan Ekman survived the crisis and, like many other housebuilders in the US, can now see the light at the end of the tunnel. America is building again, as confidence has increased across the country. Dreams of new homes have been revived. “Things have been going pretty well in the States over
the past few years,” agrees Håkan Ekström of Wood Resources International. From his office in Seattle he regularly compiles analyses and reports on prices and developments in sawn timber, solid-wood products and pulpwood, in both North America and the rest of the world. But for the foreseeable future Håkan Ekström doesn’t expect the US to achieve the approximately 2 million annual construction starts reported by the National Association of Home Builders for the year before the financial crisis. But the slow increase has still resulted in 1.2 million annualised construction starts in September 2016, which is a clear new trend. The more favourable conditions for the construc-
tion industry are also reflected in the sales figures of US builders’ merchant chain The Home Depot. In the second quarter of 2016, sales were up by almost 7 percent on the same period of the previous year. The Home Depot’s online sales are also showing a dramatic increase, up by some 25 percent in 2015. “It’s gradually improving,” says Håkan Ekström. “There’s a pent-up need for new houses and apartments. A minimum of 1.4–1.5 million construction starts would be needed to meet demand, but things are moving in the right direction.” “And house prices are going up,” he adds. “That makes
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A minimum of 1.4–1.5 million construction starts would be needed to meet demand. Håkan Ekström, Wood Resources International.
people feel well-off and more inclined to refurbish and extend their homes, which also benefits builders’ merchants.” And as construction in the US increases once again, the sawn timber needs to be sourced from somewhere. The majority comes from sawmills in the southern and western US, where production is expected to increase. Meanwhile, exports of timber to China and Japan are decreasing and instead being handled by domestic sawmills for the American market. Large quantities of sawn raw material from Canada, around 80 percent of Canadian production, is also exported to the US. Most of this comes from British Columbia. But since the pine beetle destroyed 700 million cubic metres timber in western Canada, exports to the US and other countries are soon expected to decrease substantially. Timber trade between the US and Canada
is further complicated by a century-old conflict. The US Lumber Coalition believes that Canada, whose forests are largely state-owned, subsidises the production of local sawmills by charging too little for logs. In the US where forests are mostly privately owned and log prices are more market based the US Lumber Coalition believes this puts American interests at a disadvantage. The US therefore wants the introduction of quotas and significantly higher duties, close to
30 percent, on timber from Canada. The Canadian government defends its forest management system asserting the prices government charges for logs does not subsidise the Canadian industry. And now Donald Trump’s threat to scrap the
North American Free Trade Agreement (NAFTA) is creating significant anxiety in the Canadian forestry industry. The measures mentioned by President-elect Trump could also result in a slowdown in housing construction in the US if there are insufficient available raw materials. “Significant volumes of timber are needed if the number of construction starts is to reach the necessary levels,” notes Håkan Ekström. “And the timber has to come from somewhere. So Europe offers an alternative.” But, as Håkan Ekström notes, only a marginal proportion of total timber needs in the US are met by European suppliers. The level of the flow of timber over the Atlantic over the next few years will be determined by factors such as demand, shipping prices, market prices and exchange rates, compared with conditions on other possible markets.
“As house prices increase, people feel welloff and more inclined to refurbish and extend their homes, which also benefits builder’s merchants,” notes Håkan Ekström.
In Sweden, exports of sawn solid-wood prod-
ucts between January and July 2016 amounted to almost 7.7 million cubic metres, from total annual production of just over 18 million cubic metres. Of this, over the same period
Johan Ekman has been building houses in America for almost 30 years. Here’s his latest build, which is almost ready to move into. “We’re now seeing a steady increase in demand for new houses,” says Johan (small photo to the right).
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1.62 million cubic metres was exported to the UK, up 1 percent, compared with the US which over the same period purchased 155,000 cubic metres, a decrease of 14 percent. “As I said, overall the US isn’t a major customer, but it is important,” says Håkan Ekström. “The US wants high-quality, dimensionally stable timber of the right size, delivered at the right time. And that’s what Sweden is good at.”
“The Home Depot is one of our single largest custo-
mers, and we are one of their smaller suppliers in terms of volume,” says Michael Wicklund. Planed and ready-sawn spruce timber is transported by ship from Rundvik and supplied to 11 of The Home Depot’s 26 distribution centres. Customer service and quality are key factors for these price-sensitive products. The end-customer selects the best plank on the shelf. A supplier whose goods are left on the shelf won’t get a second chance. It’s a highly competitive market and products that aren’t up to scratch will be given short shrift. From his base in Kelowna, a small town in south-west
For SCA Timber, this means that
“The US timber market is slowly but surely improving,” notes Michael Wicklund, Sales Manager at SCA Timber in the US.
each year it supplies around 70,000 cubic metres of timber to the US from its sawmill in Rundvik. And it’s all supplied to the same customer – the builders’ merchant giant The Home Depot. The Home Depot started in 1987, since then it has opened 2,200 stores in the US, Canada and Mexico, making it by far the largest home improvement store in the world with nearly 400,000 employees. Sales for 2015 totalled USD 88.5 billion. “The US is a strategically important market for SCA Timber, although the volumes are not at the level that we sell, for example, to China and Japan. We export advanced products to the US and have a customer with stringent requirements on customer service and logistics,” explains Michael Wicklund who oversees SCA’s entire US concept.
Canada, Michael Wicklund has a good insight into developments on the US timber market. “Slowly but surely improving” is his conclusion. “People feel more secure these days, they have more money and there’s less unemployment,” he says. Sales are increasing, there’s more construction using wood, but it’s still difficult for young house buyers to get a loan. And in Mequon, Wisconsin, the final touches are being
made to the newly built house that Johan Ekman will soon be handing over to his customer. He already has a number of new projects in his order book, and hasn’t needed to market his services. “We’re definitely on our way to more normal conditions, and even better than that,” he says. “In my little patch of the market we can clearly see steadily increasing demand for new houses. And that probably applies to the housing market in general.” Text och photos Mats Wigardt
Facts The US and Canada are the world’s largest producers of sawn solid-wood products. Russia is in third place and China is fourth. Sweden is sixth, between Germany and Finland. Canada was the world’s largest exporter of sawn solid-wood products in 2015. Russia was second and Sweden third. The US was ranked seventh. Between 1960 and 2015, total global production of sawn solid-wood products increased from around 245 million cubic metres to 320 million cubic metres. SCA is the largest producer of sawn solid-wood products in Sweden. Over the past 35 years, the UK has been the largest importer of Swedish solid-wood products.
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SCA Timber Supply UK expands into Scottish Market 8 SCA Timber Supply UK is expanding with a new acquisition in Cumbernauld, Scotland. SCA have taken over Swedscot Timber Ltd to develop the Scottish market where SCA have previously found it difficult to be competitive due to high transport costs.
Cumbernauld
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CA Timber Supply UK comprises of three business streams located over four locations; Stoke, Melton, Welshpool and now with the addition of Cumbernauld. They supply a range of timber and associated products to the home improvement and building material sector. Combined, they have a manufacturing capability of 150,000m3 and 15,000m3 timber treatment facilities. It has been clear for some time that SCA required a distribution platform in Scotland to develop further builder’s merchant business and present SCA Timber Supply UK as a national operation. SCA went in search of a solution to expand their reach to customers and to gain a competitive advantage over its competition. The acquisition of Swedscot was
assessed as the best solution to SCA’s need for expansion. Swedscot, who serviced an established builder’s merchant market with timber and associated products, started trading in 2003 and have been based in Cumbernauld since 2011. Founded in Inverness, Scotland, Swedscot transferred to Scotland’s ”Central Belt” four years ago and have seen a positive profitability growth trend since. After further assessment of the scale of SCA’s requirements, additional property next to the Swedscot operation has been acquired to expand upon current trading activities for this developing market.
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All existing Swedscot employees
remain under the leadership of the previous owner, Steven McRitchie Steven now becomes General Manager for the Scottish operation, which has been rebranded as SCA Merchant Services, bringing with him a wealth of market knowledge in the Scottish sector. SCA have already begun to strengthen the Cumbernauld team and have welcomed two new members, Brendan Murphy, Operations Manager and Cheryl Wallace, Timber Sales Coordinator both of whom bring with them timber and local market knowledge. ”I am excited about the future,”
says Steven McRitchie. “I believe that with SCA’s scale and expertise we will be able to realise our ambitious growth plans and offer further benefits to our loyal customer base. We are already strengthening our team and product offering in order to provide the best possible service levels to our new and existing customers.” “We have been interested in
expanding our distribution capabi-
lities into Scotland to offer a national distribution solution for our Merchant customer base,” explains SCA Timber Supply UK Managing Director, John Griffiths. “We are delighted to have acquired Swedscot in addition to retaining the services of Steven McRitchie and his team. Recognised as a business on the move, we have seen rapid growth over the past few years and have developed a comprehensive product range for our customers. We are focused on serving the Independent and National Builders Merchant market to which we are now able to present a national operation.” Text amy sellers
Meet Bruce McKay… …the new Supply Chain & Procurement Director at SCA Timber Supply UK. Bruce joined the business at the beginning of September and has hit the ground running. What attracted you to join SCA Timber Supply UK? “The opportunity to join a successful and developing business was very attractive. With SCA’s integrated supply chain and with strong ethical and environmental pedigree it was an opportunity not to miss. SCA is well known in the UK as a reliable and established timber supplier with recognised leaders in the trade as some of their major customers. I wanted to bring new thoughts and energy to the supply chain within the business to further help develop their growth.” Tell us a bit about your background. How did you get into the industry? “Nearly 25 years ago I joined Kronospan UK, a major panel products company, in a sales role. Over my time with their business I developed my knowledge of production processes, commercial considerations and the importance of satisfying the demands of the customer. Moving to Grange Fencing 7 years ago gave me the opportunity to expand my skillset in to logistics and warehousing. I managed the full supply chain from the mill to the customer through traditional trade and builders’ merchant business.” What does your role of Supply Chain & Procurement Director entail? “My main responsibility is to ensure that as a UK business we have the right products in the right place at the right time. The UK business has four operating sites, which create different demands on the business, whether it is in the form of raw material for production of finished goods, or from 3rd party suppliers directly to our warehouses. Ultimately, we measure our success by exceeding an OTIF (On Time In Full) of 98% and by achieving our ROCE (Return On Capital Employed) objectives. This is only achievable if we have strong relationships with our suppliers which my team and I must nurture. ” What current challenges do you see SCA facing? “Securing timber stocks, that are the right grade, fit for purpose and at the right price is our biggest focus in the supply chain. With ever
Photo: Per-Anders Sjöquist
increasing customer demands for lower prices, higher quality and a faster turnaround on stock, we need to ensure our relationships with our suppliers are solid so that we can perform to our customers’ requirements. We need to ensure that we maintain our growing market presence whilst keeping a focus on our core business and high service levels to our customers.” Text amy sellers
movers and shakers
Annelie Forslund has been recruited as Digital Marketing Manager at SCA Timber. She took up her post on 17 October. Annelie joins the company from BearingPoint, where she was a management consultant.
Magnus Karlsson has been appointed as Head of Health and Safety at SCA Timber. He takes up his new role on 1 January 2017. Magnus joins from Rundvik Sawmill, where he was sawmill Manager.
Les Bruce has been appointed new Procurement Manager at SCA Timber Supply UK. He is an experienced Timber Purchasing Manager, having worked for Masons Timber Products for nearly 30 years.
Anders Peterson has been appointed as acting Business Manager at Munksund sawmill.
Greger Sundqvist has been appointed Deputy Business Manager at Tunadal sawmill.
timbernews | 14
Fast scanning of logs garners prestigious award
CT scanning of logs reveals knots, cracks and rot and increases the value of solid-wood products by at least 10 percent, a study has found. This is because this process allows faults in timber to be revealed at a much earlier stage. “We used to inspect the outside of each log visually to assess its quality. We now scan the logs to instead assess the internal properties, which allows us to see the quality of a log early on. That enables us to evaluate early on what product each log is most suitable for,” says Robert. Bollsta Sawmill invested in this technology a few years ago and
uses a two-dimensional CT scanner in its production. It’s an excellent tool, enabling the sawmill to produce a greater percentage of targeted products, while the percentage of by-products has decreased. “We now supply products of more uniform quality with fewer deviations, which means our customers are more satisfied with our supplies,” says Robert. When CT scans were first used for large objects, there were initi-
ally a number of problems as the images were fairly blurred. So it was a breakthrough for industrial CT scanning when more precise imaging became possible, in combination with quicker inspections of whole logs. And there are now scans that provide three-dimensional images.
Photo: mwp.org
At a ceremony in Stockholm on 10 October, King Carl XVI Gustaf presented the 2016 Marcus Wallenberg Prize to Alexander Katsevich and Federico Giudiceandrea. They received the prize for the development of computed tomography, better known as CT scanning, on whole timber logs. “We have an earlier version of the scanning equipment that they’ve now received the award for and that has allowed us to increase the value of the timber,” says Robert Lundgren, Business Developer at Bollsta sawmill.
Federico Giudiceandrea and Alexander Katsevich were awarded the Marcus Wallenberg Prize of SEK 2 million. King Carl XVI Gustaf presented the award.
The rapid scanner for the wood industry was developed by Professor Alexander Katsevich of the University of Central Florida, USA, and Technical Director of Tomography Corporation, Houston, USA, and Federico Giudiceandrea, CEO and co-owner of the company Microtec, Brixen in Italy. “This innovation marks the beginning of a new era for the sawmill industry. The technology enables more optimal use of timber,” said Marcus Wallenberg in a press release from the Marcus Wallenberg Foundation. The scanner that is now being used for timber logs has a remarkable capacity compared with conventional computed tomography. It can inspect timber at a speed of 120 metres per minute, allowing it to keep up with production in a modern sawmill. In comparison, the best medical CT scanners can handle three metres per minute. Text Patricia Knutsson
Continued strong solid-wood products market Construction activity in the US is continuing to strengthen, par-
ticularly for single-family homes, which are the major users of solidwood products in America. Forecasts for next year indicate further improvements as the percentage of houses sold is also increasing. The presidential election result does not appear to be impacting the economy or the financial markets as initially anticipated. Imports of solid-wood products from Canada are expected to continue to rise, as the increased need in the US cannot be covered by domestic production. Renegotiations between the US and Canada of the Softwood Lumber Agreement governing import duties are expected to mainly affect prices, which should benefit imports from Europe to the US. The European construction sector is continuing to recover. Ger-
many and the Nordic countries are showing the strongest performance, but improvements can also be seen in Southern Europe. Activity in home renovation, which is the major consumer of solid-wood products, is continuing its positive trend, as is timber construction. The packaging industry (wood-based packaging) is benefiting from generally higher industrial production. In Scandinavia, consumption remained healthy in the autumn and
indications of construction activity also look encouraging for 2017 as the need for housing in Sweden remains high. In the UK, activity following the surprise Brexit referendum result 15 | timbernews
has normalised with good consumption in the latter part of 2016. However, it is still unclear what the long-term effects of Brexit will be. In North Africa, performance is slightly positive, with the excep-
tion of Egypt, where the weaker economy has forced the government to devalue the currency by around 45 percent.
The outlook in China is positive, particularly in the furniture and
furnishings segment, with strong purchasing activity in the run up to the New Year. Chinese inventories are currently at a normal level, and continued healthy activity is expected in the first half of 2017, although our competitors in Russia and Finland remain very active. In Japan, consumption has been good and the outlook is positive for the first half of 2017. Production of spruce products remains high in Scandinavia, prin-
cipally in Finland. However, increasing consumption has resulted in lower sawmill inventories. Compared with current production levels, sawmill inventories are well balanced and at a fairly historically low level. The combination of high consumption, low inventories and, at least in Sweden, favourable exchange rates suggest that 2017 will be a positive year for our industries. Raffaele Parlato, Marketing Director (interim), SCA Timber
Petra Staav deftly cuts out a sawblade, a forest and water, which will be used as an artistic backdrop to SCA’s logo
Paper tales and cutting-edge art Inspired by legends and tales, artist Petra Staav focusses on expressing her creativity through paper. Using a scalpel, she creates detailed designs that tell tales from folklore, of family ties and traditional crafts.
P
etra is based at The Northern Paper Studio, in Sundsvall, the city between the mountains, where the Nordic spruce forest grows close by and is turned into solid-wood products at Tunadal sawmill. “My paper art reflects a closeness to the natural environment, traditions and cultural heritage. I find inspiration in the forest, folklore and old legends, symbolism and historical details, as well as embroidery and sewing patterns. My customers include everyone from private individuals who want to give a unique personal gift in the form of a family tree with family ties cut out in paper, to advertising assignments and public decorations” says Petra.
Petra discovered ‘Paper Cut’ while searching for different forms of art online. She was fascinated by the beautiful craftsmanship, bought a scalpel, cutting mat and paper, and learned the technique. She learned from other paper artists’ experience via global communities on social media. Petra developed her own style and started publishing images of her paper art on Instagram. It wasn’t long before Petra’s art, with its detailed designs, gained attention and the orders started rolling in. The run-up to Christmas is a busy time for Petra, crafting traditional candy cones, LED lanterns, Christmas decorations, snowflakes, window decorations, Christmas cards and posters for both private customers and public authorities. She’s also in demand to give talks and lead workshops on paper art, which Petra views as an opportunity to share her passion and inspire others to use their imagination and creativity. “Paper is a wonderful medium. It has so
Window decorations at The Northern Paper Studio.
many uses and, as I’m interested in the environment, paper seemed an obvious choice. For my framed work I also use certified wood frames, so I’m always thinking of the environmental aspect,” adds paper artist Petra Staav. Text and photos Ingrid Löfqvist
Want to see more of Petra’s paper art? Visit her website: www.thenorthernpaperstudio. com
