SIMMERING THERMALLY MODIFIED WOOD MARKET READY TO HIT FULL BOIL

------------ BY DAVID KOENIG

ALTHOUGH thermally modified timber (TMT) is a staple of construction markets in Europe, the products have yet to gain widespread acceptance in North America. Over the past 15 years, companies, primarily from Europe, have had a tough time trying to plant a foothold in the U.S.

Yet a confluence of factors—from new facilities to expansions to new distributors—suggests that TMT may finally be on the precipice of taking off in the U.S.

The Temperature’s Changing

Modified wood producers fundamentally change the cellular makeup of the wood, most commonly by heating it in a low-oxygen chamber. Sugars are burned away, eliminating the target of decay and insects. The wood reacts differently to moisture— the primary cause of rot. The wood’s color becomes darker, more closely resembling that of tropical imports. Durability and dimensional stability increase. And, the TMT treatment process uses only heat and steam, so it’s green.

At $534.59 million in 2021, TMT currently holds less than 1% of the $690-billion global wood market, growing 3.5% annually from 2016 to 2020. TMT is forecast to reach $892.70 million by 2028 and $1.95 billion by 2031.

“We can feel the growth,” says Chase Morrison of Sunset Moulding, Live Oak, Ca., manufacturer of Pakari thermally modified decking. “Until recently, the crossover between our fingerjoint customers and our Pakari customers has been basically zero. That’s starting to change. Longtime customers are starting to ask about thermal modification and how it can be used with their products. On top of that, we are getting weekly calls from completely new companies asking about Pakari and about the possibility for us to thermally modify their own lumber.”

This spring, Arbor Wood Co. will begin production at a larger facility in Grand Rapids, Mi. Accoya USA (an Accsys joint venture) is building a new plant in Kingsport, Tn., to double the company’s capacity when it is completed in early 2024. Kebony North America, which like Accsys is currently running at maximum capacity, reportedly has a U.S. build in the works. And Tantimber recently invested $12 million expanding its plant in Turkey primarily to supply product to the U.S. ty due to the square footage involved, TM wood holds an imperceptibly small slice of the siding market. As a result, there’s really just one direction to go.”

South African TMT producer Rhino Wood is entering the U.S. through Nova USA Wood Products, Portland, Or.

Tantimber began targeting the U.S. last year, and continues to add to its list of regional distributors, including Holbrook Lumber Co., Guilderland Center, N.Y.; J. Gibson McIlvain, White Marsh, Md.; and U.S. Lumber Brokers, Del Valle, Tx.

“When you see the Europeans starting to market and sell in North America, you know that the market is starting to take off,” says Bob Lennon, president of Thermalwood Canada.

Last year, Thermory USA increased sales 12%. Kebony volume rose 30%. Accoya’s North American sales in 2022 grew 44%. That could be just the beginning.

Pakari’s Morrison agrees: “There’s no doubt that decking and siding make up the lion’s share of TMT usage. I believe siding has the largest growth potential in millwork, but there are so many other uses for the tech. TMT is used for outdoor furniture, musical instruments (guitars/violins), gunstocks. Thermally modified wood has even made it into the wine industry. TMT oak chips are used to flavor wine when being aged in steel containers.” the explorer mindset, focusing on bigger picture things in the materials they seek and eventually choose to design with.”

Consequently, Kebony and others have targeted architects more than other sectors to build a foundation of sales.

The Slow Burn

TMT’s properties and aesthetics make it ideal for exterior applications. Decking and cladding have been the primary uses of thermally modified wood in the U.S. and offer the greatest potential for growth. “Decking is a traditional entry point for TM producers because it is the most common use for outdoor wood today,” explained Matt Pryor, director of specialty sales for Bingaman & Son Lumber, Kreamer, Pa., supplier of Americana TMT. “Decking is also the harshest environment for any product, making it a good proving ground. Although siding is a larger opportuni-

So why hasn’t TMT caught on already in the U.S.? “TM wood is a niche within a niche, a curiosity in a world dominated by imitations, but we are growing,” says Bingaman’s Pryor. “It takes a lot of infrastructure and a ‘craft-brewing’ approach to pull it off. That’s part of the charm. At this stage, interest spreads largely by word of mouth.”

Most proponents of TMT attribute America’s slow acceptance to the industry’s reflexive reluctance to change. “The U.S. builder is traditionally slow to adopt new materials, and for good reason as many have come and gone,” says Ben Roberts, marketing director for Kebony North America. “Architects carry more of

“The biggest thing is legacy thinking in the United States,” echoes Mehmet Zenginler, managing partner for Tantimber. “It’s an industry that moves forward really slowly. Change is very difficult for this industry. We want to educate the market. The lack of education is almost scary, but also exciting because there’s so much potential. We believe in 10 years thermally modified wood can be just as big as composites.”

Roberts adds, “I do not think it is a stretch to visualize modified woods being 20% to 25% of the overall decking and cladding markets in the U.S. over the coming few years. They are just too logical and common sense-driven not to.”

Pakari’s Chase Morrison predicts that before too long the term “thermally modified” will be as ubiquitous as “pressure treated.” He says, “My sales pitch to architects would always start with explaining what thermal modification is and how the process works. I don’t have to do that anymore. Architects already know what thermal modification is and are actively seeking it out. They only have two questions for me now: ‘What colors does it come in?’ and ‘How long is the lead time?’”

Time to Cook

To be honest, you probably can’t count the number of times you’ve heard about a maturing product that’s finally ready to break through... and doesn’t. But there are numerous reasons to believe that this may really be TMT’s time to shine. Consider:

• The growing desire for green building products. “We would attribute much of the growth to consumer preference toward more natural, and sustainable building materials that don’t contain harmful chemicals and retain the natural beauty of wood,” says Arbor Wood director of sales & marketing Andrew Ellingson. “There are also a growing number of certifications for green building that the use of thermally modified wood can contribute to.”

• TMT’s exotic look. “Consumers are realizing that they do not need to use exotic woods for that aesthetic, but they could use indigenous species from North America to get the same look,” says Thermalwood Canada’s Lennon.

• Increased availability. In addition to rising production and a growing number of TMT manufacturers focused on the U.S., global transportation conditions have also improved since the pandemic tied up containers and sent shipping cost soaring. “The price (to ship containers) is getting better, congestion is getting better,” says Tantimber’s Mehmet Zenginler. “Last year, it cost us $14,000 to ship a container to Stella-Jones. It’s down to $7,000.”

• Adaptability to new species. Most manufacturers specialize in a particular type of wood, since each species and thickness requires a different treatment temperature and duration to achieve proper modification levels. Thermory USA recently released a new product utilizing red oak since ash has been experiencing fiber constraints due to the emerald ash borer beetle.

Bingaman & Son Lumber saw most of the industry focused on low-cost softwoods like pine, SPF and radiata

Not All Modified Wood Is Created Equal

The majority of what is considered modified wood is thermally modified. It undergoes a non-proprietary heating process to remove the sugars in the wood to make it insect resistant. You are essentially removing mass from the wood, making it less durable.

But wood can also be chemically modified. These treatments similarly change the structure of the cell walls to make the wood more insect and rot resistant, but without removing mass from the wood, preserving durability. Accoya uses acetylation to treat the wood with a non-toxic, vinegar-like chemical that basically “pickles” the wood, transforming a softwood into a hardwood.

Kebony modifies wood both thermally and chemically. Kebony uses furfurylation, which treats the wood with furfuryl alcohol then heat-treats it to polymerize the wood. The dual process provides greater durability, rot/insect resistance, and an “ipé” color.

pine. So it decided to go with North American hardwoods for its Americana thermally modified products.

• Programs that make adoption easier. Manufacturers and their partners are devising creative ways to convince distributors, dealers, builders and architects to take a closer look at modified wood. Kebony now focuses on “off-the-shelf” systems to give the marketplace ease of accessibility and use. As Roberts explains, “Architects like well-designed systems that save them time, that are superior as a building design/practice, and save them callbacks. Distributors and retailers like well-designed, off-the-shelf systems to stock and easily turn with few issues.”

G Wood Pro, Tantimber’s U.S. distribution arm, is coming to market with its Upfront program, which allows distributors to pre-book a container for the following year at the current year’s prices. They’ll also provide an exclusive distribution territory, elite customer service, marketing support, sales materials, in-person training— it’s all a “no-risk value proposition.” If for any reason the partnership fails to meet distributors’ expectations, G Wood Pro will buy back any unsold inventory.

• A now-proven track record. Thermal modification isn’t a brand new technology that the industry is being asked to adopt with blind faith. Just look overseas at its 30 years of proven performance.

“If you take Europe and leading the way, when it comes to wood technology we are always 10 years behind,” says Thermalwood Canada’s Lennon. “The biggest opportunity of growth is education. It is still surprising to hear people who have not heard about this technology. But once they do, they are interested. I have been educating architects and end-users for the last 14 years, and those activities are starting to pay off.”

TMT producers are ramping up, anticipating America is finally ready. Bingaman’s Pryor says, “We, and others like us, see the unmet appetite for authentic, long-lasting, locally harvested outdoor wood, and we’re investing in its future. Does the world really need more plastic? More fiberglass? Solid wood remains the only building material that grows back. Thermal modification allows the best of nature to once again live where it was formed—outside.” BP