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2020 spotlight on SAFETY
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The business side of woodworking JANUARY/FEBRUARY 2020 Vol. 16, No. 1
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Graphics
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Focus on safety:
Are today’s trends preventing accidents, or working against the best interests of real people? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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From the editor
Cheap phone and free beer I
’m going to tell you something I am doing. It should go without saying that this is not a veiled ad. I am getting nothing and expecting nothing. It’s just part of the story at Wood Industry. I have known Tom Caringi at Toronto’s Bimen Business Solutions for over 20 years. He started his business in IT with a partner and they called it Bimen after the then-current quip, two men and a truck. I Kerry Knudsen hear some people read it differently. Bimen has been handling our IT since we started. Like many others, Tom and I used to chat occasionally about the irksomeness and arrogance of our respective communications companies — in our case, Rogers and Bell. I assume I don’t need to say anything more. If you are happy with your service, skip to the bottom header under Canada Night. So…. Several years ago, Tom wanted a change on his carrier account and was told he could not have one. It was over only about $60 a month, but the attitude was so regal — so imperious – that Tom had had it and started following up on information he receives as a part of the mix of his IT world. Tom found, as have others, that if you have a data centre that is advanced enough to handle the switching and loads, you can actually bypass the main carriers and become a carrier, or hook up with a carrier, yourself. He did, it worked and he started offering it to his current customers. Me, for example. Those of you that know me know I’m a skeptic, and I am very skeptical of issues that can affect communication. Communication is how we pay our bills here, so I stewed over it for a few months. Then, however, I decided to jump. In my case, I did not move my regular, personal and business cell phone. I could, and it could then act as a main line into any corpoINDUSTRY JANUARY/FEBRUARY JANUARY/FEBRUARY 2020 2020 4 WOOD INDUSTRY 6
ration, and ring through to sales, production, circulation and editorial based on the respective numbers. Maybe I will, and if I do I’ll report. However, that is another story for another day. What I did, though, was to “port” my land line and fax through Bimen and its carrier, Sip Canada. I get billed once each month for the connection fee, which is five dollars for the two lines, together ($2.50 each) and I get billed about two cents a minute, which has dropped our monthly rates to a minor fraction of what they were. Those rates are rarely over five dollars a month (250 minutes). There was also a one-time set-up cost for a unit, which I believe was $75 — still well below any normal month with Rogers. Six months in, it works. I see no difference in quality or reliability. To me, this is fantastic. We are saving money, but we are also letting Rogers know that new options are in the mix and a bit of customer service and proportional value are in order. If you are interested, I encourage you to contact Tom at caringit@bimenbusiness.com, look up SIP or do your own research on other such carriers. They are out there, and they work. Any provider can program your unit, send it to you and you just plug it in configure it to your wifi and go. Note: it is wifi, so if your wifi goes down, so does your phone. However, in our case, that’s pretty much true, anyway, and my cell is still on cellular with Rogers (for now). Let me know what you think. Canada Night 2020 Let’s push the elephant out of the room. The former manager at IWF decided to form an alliance against the readers of Wood Industry with our competitor and did not advertise with us for the past several cycles. If you check, you can see that did not matter. We believe in IWF and the need for a show in North America, and we promoted it in the absence of any advertising. As has been a popular saying of late, “No quid pro quo.” Along with the advertising affront, we had started Canada Night to promote the presence of Canadians at the IWF and AWFS shows, and the former manager tried to take it, leading to some learning experiences delivered by Wood Industry’s legal counsel. Well, all that has changed. IWF is open under
new management, and here comes Canada Night. What’s Canada Night? Many years ago our partners and associates pointed out how difficult it is to identify a Canadian at the shows. We may not all look alike, but our diversity matches about anybody else’s, and we have a tendency to fade in a crowd. However, it is critical at international shows that people know whether Canadians are there. International companies rely on evidence when they decide whether and where to spend promotional dollars, whether to open or support national and regional distribution, how many people to assign to sales, and so on. If we appear invisible (which is dicey), we become irrelevant. Canada Night happens immediately upon the closing of the show on one day (usually Thursday), and Wood Industry supplies hot hors d’oeuvres, Canadian music, a chance to meet and greet and— wait for it — free beer. Yes; we are serious about gathering Canadians. This is an ad-free environment. No sales guys grabbing the mike and no salesmen interrupting your conversations to make a pitch. The whole rest of the show is for that. We will take photos, write a story and prove to the world that we are not transparent grey. In the past, it was great fun, and the very advertisers that are not bothering you are also supporting the event to make sure it happens, is free and is the high point of your day. We break up around 7:00 and everybody has a chance to visit their social engagements of the night, or head off on their own to a show, dinner or their room. Naturally, Wood Industry staff will be on-site to field questions and comments, take suggestions and keep the night moving. In the past we have not taken the microphone, ourselves,
but there is always that possibility. For what it’s worth, we have been doing this same event, Canada Night, every January in Las Vegas for our sister magazine, Coverings, at The International Surfaces Event. It has been running non-stop since it began
because that industry has seen its value and not tried to mess it up. We will make an announcement when we open registration. You do, after all, need to be Canadian. Comment at www.woodindustry.ca
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INDUSTRY 5 WOOD INDUSTRY 7 19.11.2019 14:48:48
SAFETY– essayer
Have we HIJACKED the best interests of REAL PEOPLE?
INDUSTRY JANUARY/FEBRUARY JANUARY/FEBRUARY 2020 2020 6 WOOD INDUSTRY 8
Well, it finally happened. Not to me, but my son-in-law’s brother, D.J. Guerrero, who has been an expert stone- and solid-surface tile and countertop installer for nearly 20 years. The router slipped, he grabbed and came up with the hurty bits. It happens. Typically in these situations there is an investigation to discover what happened, and those investigations have a tendency to search for fault, but sometimes there simply isn’t any. We have all witnessed safety investigations along the way, and some of us are puzzled how the public’s demand for safety has morphed into things that are not even recognizable. For one example, a prominent British Columbia labour union some years back posted an action item on its website that all union members should endeavour to force the institution of a “safety committee” in their respective places of employment. This sounds reasonable, but the stated objective was not safety. The stated objective was that union members could seize control of company functions from management under the guise of “safety.” If you own a shop that is unionized, your business is not necessarily safer.
That horse left the barn long ago, and safety committees and their attendant headaches for management are facts of life. I still recall the exasperated manager in Hamilton, Ont., that saw his “safety committee” members defeat an installed guard on a woodworking machine, then report the modification to OHSA. Over time, OHSA has given the impression that its sanctions against management and union members follow different protocols.
Anti-industry agenda
Once the safety committees were well established, the socalled gender-equality movement ante-ed up, demanding more access to more penalties for more offences, seemingly by the day. Wood Industry reported years ago that the secretive, seemingly unaligned Wood Manufacturing Council (WMC) had created a study on sexual harassment in the kitchen-cabinet and architectural millwork sector showing systemic harassment of females in the workplace. Since we have been working closely with manufacturers in this industry for over 20 years, and since we have seen NOTHING but respect for women in the workplace, and since we watch things for a living, we doubted it and conducted our own investigation. What we discovered was that the “study” had been commissioned by the WMC at taxpayer expense, and had been conducted by the WMC director’s wife. Suspicious of motives and methodologies, as is our job, we inquired, and have had zero response, our Access to Information Act requests have been refused and all the relevant ministries so far disavow any knowledge of WMC’s accountability. As of presstime, the WMC has not responded to
renewed efforts to establish contact. It’s a crazy world, eh? So this issue got even crazier when a known human-resource consultant in Ontario reported in a seminar that of all the sexual-harassment complaints received over the past years of practice, well over 80 percent of those complaints were by males against females. In that case, efforts to contact the consultant by phone were cut off, leaving the impression that the consultant had been on the receiving end of the activist social media mob as the result of going off-script. Full disclosure: the editor and publisher of Wood Industry was once also the editor of Canadian Occupational Safety magazine, so we actually know the script. By now, the word “safety” has morphed into approximately any meaning anybody wants to assign to it. Have you ever been told by a utility or vendor that your call is being recorded for your “safety?” I have, but I always correct them. That’s what comes from being an English teacher. I always say, “No. It’s not for my safety. It’s for your safety and your lawyers, but go ahead. I’m recording too.” That’s not always true, but I like to keep them on their toes, and it’s fair enough to tell a liar a fib. Honesty is the absence of any intent to deceive, and I have no such intent of my own. I just want to poke a hole in theirs. Of course, not all safety is physical. In our view, we are facing one of the biggest threats to security and safety in all history at the hands of this uncontrolled “social media” phantasm. But what do you expect when any disgruntled ex-whatever can go on social media and practice libel and slander from behind a veil of anonymity? After all, the classical laws and penalties against defamation existed in the first place because defamation works. It destroys its target when properly applied and not defended.
Expanded risk
The newest iteration of defamation, as we have reported before, will be in the form of “deep-faking” video evidence of business owners and managers being portrayed doing acts they never committed in places they never attended. You can review this yourself by doing a search for deep-fake. We get the sense that people don’t fully understand the dangers of identity theft, and that is becoming old news. We all know we can buy protection from companies that create hackers to outthink hackers, but consider the basics. The world runs on documents, from your passport and driver’s licence to your loans, cars, home heating and
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INDUSTRY 7 WOOD INDUSTRY 9
shopping accounts. Acquisition of each of those things requires a form. Here is a tip from a former investigator (me): every valid form has a form number. Sounds silly, right? But the converse is that if it has a form number, it’s a valid form, and agencies receiving a valid form have to act on it, and usually they have a timeline or they get a negative (“not timely”) review from their supervisors. Each of these forms starts out with what they call “static information.” This is your name, address, phone, e-mail, SIN or whatever things the form requires to determine your presence and your viability as an applicant. At the moment, the financial institutions tend to ignore financial theft by identity theft because they can pay for it and it is valuable for them to have us conduct business by data. My wife a few years ago in Honduras had her information stolen by a cash machine at the airport. We caught it by accident by noticing an almost immediate transaction at a Texas music store and stopped it. The cost to us was nothing, other than the feeling that “something ain’t right.” And it’s not. The bank replaced the loss, but not the feeling of safety. The list of real and imagined safety threats we are facing today goes on, maybe to infinity. However, each
of these infractions costs individuals, companies, the governments and society at large time and resources to monitor, to review, to consider and to act. And all of those resources have to be pulled from a big pot of cash called safety. That pot is replenished with interest by a line item we call “costs of compliance,” a common topic to benefit our readers.
Systems first?
Our experience shows that people involved in safety education seem to fear going public with their experiences, which seems to imply that safety as a topic is not as concerned with individual humans as we would hope, but rather with institutions and systems. It is likely no additional amount of review would have prevented the cut on the countertop-cutter’s finger, but it also seems it’s time to redefine safety down to the human level and cut off some of the politics. Back to basics. In closing, let me quote the YouTube sensation that everybody knows only by his hands, his language and his handle, AvE: “Remember, you are the softest thing in the shop.” Comment at www.woodindustry.ca
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Filings WOOD Leuco receives innovation award
Ewald Westfal (Leuco Technology Manager, left) and Benjamin Sitzler (developer of the AirStream system) received the Winner award for the innovative AirStream chip guiding concept. Leuco of Horb am Neckar, Germany, has received the Winner award at the German Innovation Awards for its AirStream milling system. Constructive solutions to tools for targeted chip guidance have to a certain extent been available for some time in the industry, especially in the furniture industry, the company says. The patented AirStream-system was inspired by the scoops of sports cars, it adds. In the category Excellence in Business to Business, section Machines & Engineering, the system convinced the jury, which praised the new constructive solution as well as the approach of the milling cutter design.
ware provider for the cabinet and closet markets, recently signed on as a Gold Sponsor of the Woodwork Career Alliance of North America (WCA). The not-for-profit alliance works with high school and postsecondary woodworking programs to help them develop skills-based curricula. WCA also provides tools to wood product manufacturers to develop employee training programs. The Gold Sponsorship program supports the not-for-profit WCA’s mission to elevate the woodworking profession to youth and job seekers, support workforce development through the creation of skill standards, and create career paths based on its credentialing Passport program recognized throughout the U.S. and Canada. WCA credentials now encompass measurable skill standards for more than 300 woodworking machines and operations ranging from accurately reading a tape measure through operating a CNC router.
Fabritec rescued from bankruptcy
KCD Software supports Woodwork Career Alliance
Cataumet, Mass.-based KCD Software, a design-to-manufacture soft-
Sergio Lifraine and Alain Messier have completed the acquisition of the assets of Bromont, Que.-based Fabritec Ltée, one of North America’s biggest manufacturers of kitchen and bathroom cabinets. The transaction was approved by Québec Superior Court following a call for tenders from Deloitte Restructuring Inc. to dispose of the company’s assets. The transaction was finalized on Novem-
ber 8 and is said to ensure the ongoing manufacturing and marketing of the cabinets that have established Fabritec’s reputation for more than 30 years, as well as for a return to growth. The great majority of employees at the Bromont plant will remain with the company. At a presentation in the Bromont facility before employees, Lifraine emphasized the support of the parties involved, including Pierre Fitzgibbon, Québec Minister of Economy and Innovation, and Isabelle Charest, Member of the National Assembly for Brome-Missisquoi and Minister Responsible for Education, as well as Investissement Québec and National Bank. He also thanked the employees, unions and management, who operated the business during the transition, along with the company’s customers, who continued to show their confidence. Lifraine and Messier each have more than 20 years of experience in the industry. The Montreal, Que.based Mono Serra Group (flooring), owned by Lifraine, MURdesign of Saint-Hyacinthe, Que. (wall and ceiling coverings), a partnership between Lifraine and Messier, and Fabritec (kitchen and bathroom cabinets) currently employ more than 800 people in various Quebec plants, including in Bromont, Alma, Jonquière and SaintHyacinthe, with annual revenues of more than $200 million. Financial problems led the former management team at Fabritec to place the company under court protection in July 2019. Restructuring was entrusted to Deloitte, which oversaw the maintenance of operations until a buyer was found, or the assets were sold.
Hettich announces senior management changes
Dr. Andreas Hettich, a fourth-generation company shareholder, has left his operational management post at Kirchlengern, Germany-based Hettich Holding GmbH & Co. and joined the Hettich Group Advisory Board. After working for almost 20 years in the operational side of the business, 13 of which as chairman of the www.woodindustry.ca
WOOD INDUSTRY 11
Filings WOOD
Jana Schoenfeld
Sascha Gross
management board, Dr. Hettich will now focus on the strategic management of the group and will act as a link between the shareholders and management board. As a majority shareholder, he will continue to represent the Hettich Group with respect to customers and the general public. Jana Schoenfeld and Sascha Gross, both members of the previous management board, will now manage Hettich Holding as equal partners.
Millwork trade cases against China, Brazil
The Coalition of American Millwork Producers (CAMP) has petitioned the U.S. Department of Commerce and the U.S. International Trade Commission to restore the conditions of
fair trade in wood mouldings and other millwork products between the U.S., China and Brazil. The trade petition details the injury suffered by U.S. industry and workers by unfairly traded millwork products imported into the U.S. from these countries. Millwork building materials subject to this petition include wood mouldings and other wood millwork products. Examples include interior and exterior door frames, casing, base mouldings, handrails, crown moulding and panel moulding. In 2018, total sales of these products in the U.S. were approximately $1.3 billion US. CAMP is an alliance of large and small millwork producers from across the U.S. The coalition includes Bright Wood Corporation, Cascade Wood Products, Endura Products, Sierra Pacific Industries, Sunset Moulding, Woodgrain Millwork and Yuba River Moulding.
Novatech acquires Laurier
Novatech Group has announced the purchase of glass products manufacturer Laurier. Laurier will now be known as Laurier Architectural. Novatech, based in Sainte-Julie, Que., is
Four Canadians earn WMIA scholarships
The Fairfax, Va.-based Wood Machinery Industry Association (WMIA) Educational Foundation has awarded its 2019 scholarships to high school seniors and college students to enable them to continue their education in the wood industry. A total of $30,000 US in scholarships was awarded with four students in Canada named as recipients. Eight students were selected to receive a total of $13,500 US in scholarships, while the Foundation also continued its scholarship endowment program (SEP) this year, in which it provided a Katherine Marie-Elisabeth fixed amount Stuglik Guerin
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JANUARY/FEBRUARY 2020
a manufacturer of steel entry doors, door glass, patio doors and insulating glass. Laurier is a third-generation family business located in LaurierStation in the Quebec City area. This transaction is the result of a growth plan that will unite the strengths of both companies in the high-rise, commercial and glass markets. Laurier’s Ceraprint digital printing technology can also be applied to wooden tables for decorative interior applications.
Mereen-Johnson acquires Diehl Machines
Minneapolis, Minn.-based Mereen-Johnson has acquired Diehl Machines, a Wabash, Ind.-based manufacturer of industrial wood working equipment. According to Paul Wilmes, CEO of MereenJohnson, the Paul Wilmes company believes theacquisition of Diehl Machines gives it the opportunity to add a complimentary line of products to its portfolio. MereenJohnson, founded in 1905, also makes a line of heavy-duty industrial production machinery, primarily geared to
of scholarship funds to several schools, and the schools determined how many scholarships to award, and in what amounts. Four schools — Pittsburg State University, the New England School of Architectural Woodworking, Seattle Central College Wood Technology Center and the École Nationale du Meuble et de L’Ébénisterie (ENME) — participated in the program, awarding a total of $16,500 US in scholarships to 11 students. The 2019 scholarship recipients in Canada are: Marie-Elisabeth Guerin and Nathalie Locas, ENME in Victoriaville, Que.; Katherine Stuglik, Conestoga College in Kitchener, Ont.; and Liz Xu, Rosemount Technology Centre in MonLiz Xu Nathalie Locas treal, Que.
WOOD WORKING THAT MATTERS
26-29 MAY 2020 FIERAMILANO ITALY
27th Biennial world exhibition for woodworking technology and components for the furniture industry
Filings WOOD the wood industry, but increasingly used in the cutting of composites, plastics, aluminum and many other materials. Both companies were founded over 100 years ago.
Arauco North America makes changes at top
Pablo Franzini, president of Atlanta, Ga.-based Arauco North America, has announced that Kevin Shotbolt will transition from his role as vice president of domestic sales to that of advisor to the North America sales team for the first half of the new year. Franzini also announced that vice president of import sales and Kevin Shotbolt marketing Russ Jordan will lead the North America sales organization. Jordan has been with Arauco for 15 years and previously led the company’s North American import business, encompassing the categories of moulding, plywood, lumber Russ Jordan and import composite panels.
Housing investments top $130 million
Investments by the Government of Canada and the City of London have been made to provide residents of London, Ont., with access to more safe and affordable homes. The federal government is investing just over $130 million for the construction of multi-residential buildings comprising of 420 units at two locations in London. This project, developed by London-based Old Oak Properties, is receiving funding through the Rental Construction Financing
14 WOOD INDUSTRY
initiative (RCFi), a National Housing Strategy program delivered by CMHC that supports rental housing construction projects to encourage a stable supply of rental housing for middle-class families struggling in expensive housing markets across the country. Of these new units, 110 units have rents lower than 30 percent of median household income in London. Furthermore, 84 of these units will have rents that fall at or below 70 percent of the 30 percent median income in the area and provide affordable housing options close to public transit and services for modest and middle-income individuals and families.
Fengate and Freed acquire mixed-use site
Fengate Asset Management and Freed Developments have announced the joint acquisition of a 5.4-acre, transit-oriented and mixed-use site with development entitlements in the City of Toronto from Allied Hotel Properties of Vancouver, B.C. Fengate is managing this joint acquisition on behalf of the LiUNA Central and Eastern Canada Pension Fund. The
buildings adjacent to the hotel, which will address the increasing need for transit-oriented residential units within Toronto.
Final phase of Liberty Village commences
Urban developer Lifetime Developments of Toronto, Ont., has announced the third and final phase of a 16-year redevelopment project in the
city’s Liberty Village neighbourhood with the launch of Liberty Market Tower. The development includes a 28-storey tower featuring 281 luxury residential suites and seven floors of commercial space — all connected to the existing Liberty Market Building. Over 12,000 square feet of indoor and outdoor amenity space make up the 8th floor of the building, featuring a fitness studio, entertaining rooms, business centre, outdoor dining and views overlooking both south of the city and Lake Ontario.
Moffat joins HKA as partner
site currently houses a six-storey hotel and is located at the intersection of the Don Valley Parkway and Eglinton Avenue East in Toronto, with direct pedestrian access to the Eglinton Crosstown LRT, which is scheduled for completion in 2021 and will provide efficient access to the downtown core and surrounding areas via connections to the Toronto Transit Commission and GO Transit system, as well as area highways. The site is presently entitled for the development of numerous high-rise multi-residential
JANUARY/FEBRUARY 2020
HKA, a construction claims and dispute resolution firm, has announced that Rick Moffat has joined the firm as partner, based in its Calgary, Alta., office. Moffat will be responsible for growing operations throughout Canada and establishing HKA’s client base in Western Canada. Moffat has more than 25 years of consulting experience in the construction industry including extensive experience in risk management, project management and dispute resolution services on industrial, infrastructure, commercial and institutional projects. He has testified as an expert in both the U.S. and Canada on issues such as delay analysis, change order impact and loss of productivity.
Design WOOD Invasive pest fells a homely beauty
Ashes to ashes I
n the early 2000s, the emerald ash borer was first discovered in Canada. It’s a foreign insect that kills ash trees, and it has spread quickly. But who is noticing? There has not been much commentary. I keep waiting for the public funeral, and the accompanying outrage. Paul Epp Canada was invaded by a murderous scourge and we’ve been placidly carrying on as though nothing has happened. As designers, we have lost an important material, and our arsenal of design choices has been sadly diminished. We ought to care. Some of us have noticed. In the early ‘80s I bought a house on the Scarborough Bluffs. One of my first home improvements was to plant an ash tree in the south-facing front yard. I wanted a tree that grew quickly and that provided shade, but not too much: a tree with a lacy rather than opaque canopy. Ash was my ideal candidate, and it served me well, but now it’s gone. There are other conspicuous gaps in our urban greenery, as ash has been a fairly popular urban tree, for the same reasons that I chose. It was fast-growing and hardy, or at least until it was felled by its nemesis. It was also pretty, in an understated way. Other trees can be much more impressive, but it is the
ash that was relied on to quietly get the job done. It’s conspicuously missing in our rural woodlands, too. Ash has long been an important component of our wooded biodiversity. We have taken its presence in our forests for granted. It’s usually long and tall, with a nice straight trunk. Its canopy let some light through, which benefited the undergrowth. Often found along streams, it anchored the soil and checked erosion. It doesn’t have a brilliant and spectacular fall colour and that may be why, in part, we’ve overlooked it. Most of us have had some intimate contact with it, especially if we are older. It was the preferred wood for hockey sticks, toboggans, sleighs, snowshoes, tennis racquets, baseball bats, skis, oars and paddles, and many other playful uses, where its strong, pliant and elastic nature were valuable. But we probably didn’t know it by its name. As workers, we would have been familiar with it too, again, especially if we are older. It has been a very popular handle for tools, like hammers, axes, shovels, rakes, and anywhere else where shock absorption was an asset. Hickory was sometimes an alternative, but the ease with which ash is worked, along with its (then) plentiful availability made it the default. I happen to now live in a house that was built in the 19th century as worker housing for an adjacent wagon factory. Ash would have been the
dominant material used, again for its strengths and shock absorption. Plus, its availability and good price point. Its long and straight trunks made it a productive wood to harvest. Once cars and trucks were replacing wagons, the frames and metal supporting understructure of these early automobiles were made of wood and usually the wood was ash. But as wood as a material has become industrialized into a sheet material that is mostly synthetic, we have lost our knowledge of and respect for this once-valued material. Now, the ash we buy will most likely consist of a paper-thin surface on a fibre and polymer substrate, where its elastic nature doesn’t even leave a hint. Our hammer handle will be synthetic too, like our tennis racquet. Ash has never been considered an especially valuable wood. Not that it wasn’t useful, but it was rarely outstanding. It is pale and plain, with a typically predictable, uniform grain. It’s not something we get excited about and we don’t have a legacy of valuable, solid-wood furniture made of ash. It was popular for rustic chairs and a few other items, but not heirloom material. I’ve often thought of ash as feminine, tall and blond like a Nordic woman, but more of a lady-in-waiting than a princess. I’ve enjoyed her homely beauty and celebrated her understatement. She has been compliant and dutiful, taking stain easily to masquerade as more valuable oak, and lathe-turning well to take a desired form without calling attention to herself. She has bent when desired and also split easily when that was required. She served me well and I’ll miss her. Paul Epp is an emeritus professor at OCAD University and former chair of its Industrial Design department. Comment at www.woodindustry.ca.
www.woodindustry.ca
WOOD INDUSTRY 15
Law WOOD Understand risks and benefits
Liability clauses B
usinesses routinely use or, knowingly or unknowingly, sign contracts that contain some form of an exclusion or limitation of liability clause. While such clauses vary considerably in size and scope, for Louis Vouloukos illustrative purposes only, you may have seen a clause similar to this: “In no event will Supplier be liable for damages on any basis, of any kind or nature whatsoever arising in respect to this Agreement or for any indirect, special, incidental or consequential damages.” So what purpose do exclusion or limitation of liability clauses serve? Perhaps, more importantly, do these clauses really work? We explore the answers to these questions below, and, in doing so, provide some tips to assist in making your exclusion or limitation of liability clauses more effective.
Purpose of Exclusion or Limitation of Liability clauses
Inherent in all contracts is the risk of some form of liability. For example, damages resulting for non-
16 WOOD INDUSTRY
performance of a contract, liability for lost profits or revenues, expenses incurred to fix a problem, or liability for the negligence of a contracting party. Exclusion of liability clauses are used as a means of allocating the risk of liability between the contracting parties by excluding or capping the liability of a party for certain types of damages. The party benefiting from the exclusion of liability clause is the party that would otherwise be responsible for the breach. If a contract does not contain an exclusion of liability clause, there may be no limit (except for limits as prescribed by law or general principals of law) to a contracting party’s financial exposure for a breach. Failing to adequately protect your business from certain liabilities may, and, in some cases, has led to the demise of an otherwise successful business.
Do these clauses really work?
The short answer, of course, is — it depends. Let’s explore this further. Not all liability can be excluded. For example, in some cases you cannot exclude or cap certain liability imposed by statute. Neither can you limit liability for breaches brought about by fraudulent or dishonest conduct. Also, our courts are not inclined to enforce exclusion of liability clauses that attempt to exclude all liability, such that a contracting party has no
JANUARY/FEBRUARY 2020
real remedy for a breach. Having said that, our courts respect “freedom of contract” and the general principal that parties should be held to the bargains they have made. Therefore, as a general rule, our courts tend to give effect to exclusion of liability clauses unless there is a reason not to. So what qualifies as a reason not to? Our courts look at three main factors. • Is the exclusion of liability clause applicable (to the facts)? • If so, was the exclusion of liability clause “unconscionable” at the time the contract was formed? • If the exclusion of liability clause applies and is not otherwise unconscionable, is there an overriding “public policy reason” to override the clause? • Is the exclusion of liability clause applicable? Here, our courts will explore if the breach giving rise to the damages was actually excluded by the clause. Of course, when a dispute arises, one party will argue that the exclusion clause is clear and applies to either exclude or limit that party’s liability. The other party will try to persuade a court that it does not apply, or should not be applied, for various reasons, including that the clause is unclear or doesn’t exclude the specific liability the other party is claiming it does. In deciding between the competing interpretations put forth by the parties, our courts will consider the words used in the exclusion clause, and assess these words in the context of the entire contract as whole, and in light of its purpose and the commercial context in which the contract was made. Any ambiguities will normally be interpreted against the party who drafted the clause.
Tip: This is where your lawyers
come in. To give your exclusion clause the best chance to be successful, it is essential that your exclusion clause is well drafted, using clear
and unambiguous wording, and that your clause is consistent with the entire contract as a whole. Further, the clause should clearly exclude the liability that you desire it to exclude.
to uphold the clause on a number of grounds. For example, a court may look at whether the exclusion clause was brought to the other (unsophisticated) party’s attention.
Is the exclusion clause “unconscionable” at the time the contract is made? Our courts will look to protect a party from the applicability of an exclusion clause if it is unconscionable to apply the clause. More often than not, the “unconscionable” behaviour is linked to “inequality of bargaining power” between the parties, or with cases of contracts of adhesion. Courts are less likely to interfere with exclusion of liability clauses negotiated between two experienced or otherwise sophisticated commercial parties. However, if your contract is a standard form, “take it or leave it” type, or if you are dealing with an unsophisticated party that may not have a lot of business experience, our courts may find that it would be unconscionable
Tip: When dealing with unsophisticated or inexperienced commercial parties, your exclusion of liability clause has more chance of success if you bring the clause to the other party’s attention (do not try to hide these clauses in a conspicuous part of the contract), and advise the other party to get independent legal advice. Is there an overriding “public policy reason” to override the clause? Even if the parties are sophisticated, our courts will consider whether there is an overriding “public policy reason” to invalidate the clause. For example, if you knowingly sell a defective underground pipeline to a customer, and many years later, as a result of this defect, the soil becomes contaminated resulting in health is-
sues for local residents, our courts will not allow you to rely on the exclusion clause to shield yourself from liability. Also, exclusion of liability clauses will not be enforceable in cases of fraud or criminality.
Takeaways
Exclusion or limitation of liability clauses are a useful tool for allocating risks inherent in every contract. However, to give your clause a better chance of success, use clear, unambiguous and consistent language throughout your contract. Also, know who you are dealing with, as there are some important steps that you should take if relying on standard form “take-it it or leave-it” type contracts or dealing with an unsophisticated or inexperienced commercial party. Louis Vouloukos of Brampton, Ont.- based Lawrences, specializes in corporate, commercial and franchise law.
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WOOD INDUSTRY 17
Profile: C-West Custom Fixtures, Calgary, Alta.
It’s never easy Calgary to Manhattan in 30 fast (not) years
It was not a fun meeting in 1997. The three vice presidents of the company Anita MacKenzie worked at were giving her an exit interview. “They didn’t like anything I was passionate about,” she says. “They said I could not sell. And when they were done they asked me whether I had anything to say. I said, ‘no.’ Meanwhile, I was hearing the voice of my mentor, John, in my head and I switched focus and wondered what I was going to do for lunch. “I was taught by a tough guy,” MacKenzie says, “a guy who was a lot tougher than anything else out there.” He was, unfortunately, a guy not tough enough to beat cancer, and he died, leaving MacKenzie to deal with his successors. Therefore, it came to pass that for a lady that can’t sell, she can create an opposing viewpoint. With a client list including L’Oreal, Coty, Mark’s, Co-op, Campbells, Giorgio Armani, Biotherm, Hudson’s Bay and others, she may
INDUSTRY JANUARY/FEBRUARY JANUARY/FEBRUARY 2020 2020 18 WOOD INDUSTRY
not “sell,” but she can attract and convince. Oh, let’s call it “sell.” According to MacKenzie, the three amigos were not the only people to underrate her talents and her drive. As she launched C-West (the play on “see west being deliberate) Custom Fixtures, she turned to AWMAC for help and found none. “They kept acting like they were talking down to me,” she said. “All they wanted was to pressure me to be their stenographer.” So she moved on. Moving on was not new to MacKenzie. She and her husband ran out of luck in the Nova Scotia of the mid-’80s, and in 1985 they landed in Calgary with $50 between them and a place to stay for 30 days and then leave or pay. They took it. MacKenzie got a job as an accountant at a cabinet shop, where she met her mentor, and her husband went to work, first as a security guard with a clip-on tie, and then as
Because of the nature of business, all C-West employees are skilled at multiple workstations and on multiple skill sets.
a landscaper — a profession he followed until his retirement. It was there that MacKenzie became fascinated with manufacturing and sales. And, following the fall-out after her mentor died, she asked herself, “How the hell hard can it be to sell?” Besides being outwardly tough, MacKenzie’s mentor taught internal discipline. “If you have time to lean, you have time to clean,” he said. That philosophy shows the minute you step into the shop. The space between work stations is broad and tidy. But along with the discipline goes the care for employee morale that goes with having “been there” as a worker. For example, every day before quitting time, each employee has a rotating job assignment, and everybody, including MacKenzie, has a turn cleaning the washrooms. According to MacKenzie, this not only saves on having specific contractors in to do the cleaning, but it breaks down the normal internal hierarchy of some senior employees assigning the dirty tasks to newcomers.
For that matter, though, there are not many newcomers. MacKenzie points proudly to her employee-retention record, and quips that once C-West’s employees hit the age of 65, they get to set their own hours. On the business side, MacKenzie says their customer-service model is to shepherd a project from concept to completion. As such, they handle not only the wood part, but also upholstery, walls and fixtures, with over 50 percent of C-West’s market in the U.S., from coast to coast and from Canada to southern Texas. One example of the services MacKenzie manages is in their perfume and liquor displays. “One of the biggest problems retailers have,” she says, “is people walking off with perfume samples.” MacKenzie’s solution was to create a lighted glass case resembling a museum trophy’s display to show off the bottle under specified lighting, which made the product beautiful and valuable in the minds of the customers. Then, MacKenzie provided a www.woodindustry.ca www.woodindustry.ca
INDUSTRY 19 WOOD INDUSTRY
This one got the attention of OHS, since employees are not supposed to blow themselves off. But it works. The air hose is connected to a pressure plate, and people leaving the shop avoid tracking years of wood-dust build-up through the conference and display areas. You step on the plate and you blow off the bottoms of your shoes. President Anita MacKenzie is known both for her care and attention with customers and employees and her unwillingness to bend to the wills of competitors and suppliers.
mechanical “works” with a sign that says “Try me,” and a paper tab that the machine can infuse with a spray of the offered product, and the customer can pull, smell and keep with no risk of loss to the retailer. Smell is underrated by mainstream advertisers, as it is among descriptive writers. Let’s say it this way. My wife does not like or wear perfume. However, I tried MacKenzie’s display and ended
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Production Manager Curtis Noseworthy (left) oversees all phases of production and interfaces with customers and sales.
OHS requires the dust collection system be cleaned weekly.
up taking my wife the paper tab, then going on Amazon and buying an ounce. From my wife’s perspective, she liked the scent. From my perspective, who could pass up a cosmetic named Juliette has a Gun? Possibly Canada’s secondary-wood industry could benefit from a look at cosmetic marketing, vis-à-vis C-West. Lighting is critical in MacKenzie’s business model, yet it is one of the most frustrating. According to MacKenzie, virtually all of the advanced lighting products are man-
Material handling has become important as the company grows and lead times tighten.
ufactured off-shore — especially such products as thintube, variable-brightness/variable-Kelvin LEDs. According to MacKenzie, they were concerned with the quality of the lighting they were getting from their supplier. She says the supplier was prompt in replacing defective lights, but two things happened. First, since C-West offers a five-year warranty, they were getting too many call-backs on a product that was not built to last. Second, they became convinced the supplier was simply
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Juliette has a Gun in Vanilla Sea Salt is exquisite. Shoppers can pull the tab on the lower-right of the display and get a sample without exposing the display bottle to theft. One of Anita MacKenzie’s offerings is a display with variable colour temperatures. She is holding the clicker in her hand as she changes the Kelvin temperature of the display in these sequential shots.
re-sending defective lights that either C-West or another customer had returned. Once having lost faith, the only option remaining was to change suppliers, which they did, and seem at the moment to finally have what they wanted in an associate. To MacKenzie, relationships matter. Back when her mentor died and the company passed into other hands, MacKenzie took it on herself to call every customer that had once worked with them and no longer did, and she asked them why?. She learned from that exercise, and she was at a show at Chicago’s McCormick Place when a former customer came up and told her, “I won’t write you a purchase order as long as you’re working for them. I will if you’re working for yourself.” So it appears the three amigos walked into a karma warp. As MacKenzie puts it, “I kicked ass.” Once the amigos cut her loose and AWMAC put her off, she said she asked herself, “What do you mean, I can’t sell?” And she started C-West as a marketing company, but, she adds, “I am a cabinetmaker. I just have to ditch these clowns.”
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As a cabinetmaker, MacKenzie now works with the topfive fixture purchasers in America, and 95 percent of her output is custom. Part of the service is on-site design, and she has installers in Ontario, across Canada and in the U.S. From 1997 the shop has grown from 8,000 square feet to 15,000 square feet to, now, 33,000 square feet and she is running in the $15 million range in revenues. MacKenzie’s advice to industry? “The more we know, the faster we grow.” However, if you can’t help but lean, “get out of the way.” MacKenzie is moving on. Comment at www.woodindustry.ca
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WOOD
New Products Integrated network and machinery system
Handwerk 4.0 from Felder is an integrated network and machinery package for small- and medium-sized cabinet makers. The machinery part of the package is a Format4 kappa 550 e-motion panel saw and the c-express 920 classic CNC drill centre. The package also includes a server hosting a set of connected software applications and covers sets of tooling for the machinery, network cables, barcode printer and scanner as well as one of the company’s clean air dust extractors. www.felder-group.ca
Desktop CNC tool features automatic changer
has a 36 x 24 in. work area and is available with two different deck options —either an aluminum “T” slot extrusion, with MDF spoil board (optional, removable) or universal vacuum hold down deck with ShopBot Vacuube kit, with plywood plenum and MDF spoil board. Specifications include: XYZ movement of 38 x 25 x 5.5 in.; footprint with spindle of 48 x 39 x 30 in. (h), with spindle VFD fit to right side of gantry; total weights of 127 lb (no deck, no cutter), 194 lb (with aluminum deck and spindle) and 234 lb (with universal vacuum hold down deck kit and spindle). Units have an integral guard and dustskirt, as well as feature a cut speed of 4 ips, jogging speed of 6 ips and resolution of 0.00025 in. Air requirements are 4 scfm at 90 psi of clean, dry, un-oiled compressed air. Units come bundled with two software programs to creTHE ULTIMATE ate CNC projects. www.shopbottools.com WOOD SCREW
CNC routerScrew in three sizes Picture The i2R CNC series from Axiom Specifically engineered for Precision includes three sizes, each manufacturing cabinetry and with prismatic guides, ball screws solid wood furniture and the DSP pendant controller which is used on the company’s larger machines. Targeted atWOOD-MAXX the first-time Wood-Maxx Logo
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The Desktop MAX ATC from ShopBot is an addition to the company’s desktop CNC tool line that features the industrial precision and power capabilities of its other desktop tools, but with an automatic tool changer. An ATC is said to reduce production time by quickly and robotically changing cutters between tool paths, eliminating the need to change and zero tools individually. The new unit
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CNC user, the series is supported with a manual and video library inDistributor inquiries welcome tended to dramatically shorten a new user’s learning curve, the company says. The machine is intended for cutting wood, acrylics, wood-fibre composites, certain plastics and non-fer-
rous metals. Toolpaths created in the design software are communicated to the CNC router through the handheld RichAuto B11 series 3-axis controller. Processing toolpaths or jobs can be performed either by using a USB Flash drive (USB2.0 of 8GB or smaller, FAT32) or from the internal memory. Specifications include: X axis travel of 24 in.; Y axis travel of 24 in. for the i2R-4, 36 in. for the i2R-6 and 48 in. for the i2R-8; and, Z axis travel of 3.937 in. Table work area is 28.4 x 37 in. (i2R-4), 28.4 x 49 in. (i2R6) or 28.4 x 61 in. (i2R-8). The electro spindle is rated to 800 W, spindle speeds from 0 to 24,000 rpm and feed rate is rated to 150 ipm. www.axiomprecision.com
Dust control for portable routers
The Dust-Free Router Hood from Oneida Air Systems is said to guarantee a safer, healthier and more productive routing experience. Injection molded from crystal clear polycarbonate, units let users clean while
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WOOD INDUSTRY 23
WOOD
New Products
they work, containing waste safely within their wet/dry vacuum (not for use with low-pressure wood dust collectors). The hood is designed to fit most portable fixed-base or plunge routers and lessen wear and tear on expensive router bits by reducing material buildup. A 1.5 in. OD swiveling hose connection includes quickrelease “seat-belt style” lock. Included are two different sized chip covers for outer edges and shallow inset edges. The lower chip cover can easily be removed for inner plunge routing with no tools, the company says. www.oneida-air.com
Laminate visuals aimed at commercial interiors
SurfaceSet 2020 is a collection of woodgrains, solids and patterned laminate designs from Formica to help interior designers and architects create commercial spaces. The collection is grouped into three palettes — No Boundaries, Engineered Design and Fluidity. No Boundaries is a combination of raw elements and natural warmth with organic greens and grounded earth tones contrasted with pops of blue sky to create a har-
24 WOOD INDUSTRY
monious connection to the natural world, the company says. Engineered Design combines synthetic designs with natural materials using onscreen brights, technical grays and strong saturated colours — along with tactile textures like felt. The Fluidity palette invokes a sensory approach using beiges, pastels and iridescent effects to make for an atmospheric and dreamlike experience, the company adds. www.formica.com
Screws designed to avoid splitting
Richelieu has introduced three wood screws under the brand PWR Drive — Hybrid, Cab and WMX Premium. The screws are said to offer a perfect finish every time with no pre-drilling required. The screws feature a selfdrilling point to avoid wood splitting. They are suitable for solid wood, hardwood, MDF and particle board. The square drive enables a solid and adjustable fit while the self-countersinking flat head with nibs offers a flush finish. The screws feature an oversized, flat, self-tapping head with nibs with 4 times the holding power of a conventional screw, the company says. Screws are available with two drilling points and in three colours: black, white and zinc. www.richelieu.com
Storage space shelving for cabinet systems
Planero from Vauth-Sagel is the first shelf with a flat steel design developed by the manufacturer. The product is said to be a high-quality
JANUARY/FEBRUARY 2020
tray shelving system, suitable for most fitting options. The powdercoated steel plate formed around an inlaid wooden shelf results in a flat design with invisible suspension points. Although the technical components are barely visible, they simultaneously provide a feeling of comfort, the company says. The tray shelving system is available for almost all the company’s product groups, such as the tall cabinet VS TAL Larder, the new corner-unit product, Cornerstone Maxx, and the VS COR Flex. The shelf system is available in three colours: champagne, lava grey and silver. www.vauth-sagel.de/en
Automatic lubrication system for CNC routers
CAMaster has introduced an automatic lubrication system for its new CNC routers. The system is said to ensure that router bearings and ballscrew are properly and continuously lubricated to keep the machine performing at an optimal level and eliminates the need to manually
grease each bearing and ballscrew. It automatically applies the correct amount of grease to each component every application and protects against premature wear of the ballscrew and bearings, as well as the linear rails, the company says. And, since lubrication occurs while the machine is in op-
eration, the system reduces downtime and offers the best way to lubricate components in an abrasive or highdust environment. www.camaster.com
Automatic vertical cutting centre for panel makers
The Striebig Control Premium Class vertical cutting centre from Colonial Saw includes a touch screen, full wood back support, digital measuring, automated locking and pivoting of the saw head, locking of the saw beam and rollers, with automatic travel of the saw in both axes. Besides variable (and consistent) feed speed, the vertical panel saw has a
panel end sensor, so it stops at the end of the sheet, not at the end of the machine. Similarly, it has memory for where it started the cut and returns to that point, again, not all the way to the other end or top of the machine. It also includes a cycle selector switch so operators can have it wait at the end of a cut to give them time to off-load the last piece before the saw returns. On the automatic saw, the operator can be offloading the last piece while the saw is returning. Also, the operator has both hands free to tend to the piece being cut, especially when the top piece of a horizontal cut may be a large, heavy piece. www.csaw.com
Portable workshop CNC router workbench
SmartBench, a patented large format, CNC router has been introduced by YetiTool. Units have a touchscreen assistant, light compactable frame and 3-axis cutting capability. The portable machine
assembles/disassembles in 3 minutes or less and is said to be stored in even the tightest of workshops/industrial units. Features include Wi-Fi/USB connectivity for file transfers; Z axis Tool Touch Off for fast, easy and accurate setting; and, an extraction system. Sections can be handled by one person and units can process up to 2500 x 1250 mm sheets edge to edge, with softwood and hardwood timber sections up to 150 mm thick. Composite work surfaces, Corian, Polycarbonate, Acrylic, other forms of plastic and sheet aluminum can also be processed. Accuracy is rated Âą0.5 mm over a 2.5 m distance. www.feldercanada.com
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Folding door system operates with one hand
The WingLine folding door system from Hettich is said to provide a wide range of design options. The fittings are easily and reliably move door elements in practically any size, material and weight, while hugging the body of the cabinet, the company says. The folding sliding door system can be used in various applications including in the wardrobe, in alcoves or in the top mounted kitchen unit. The “Push/ Pull to Move” opening mechanism creates panorama effects, design flexibility and provides access to everything inside the cabinet with just one movement of the hand. Features include optimized running performance, soft opening and closing, tool-less installation as well as minimal door protrusion for efficiently organizing the space inside. Units can move door wings weighing up to 25 kg and measuring up to 2,400 mm in height. www.hettich.com
Single head router for door production
extraction hood with 4 in. diameters; minimum distance between hinges of 6 -1/2 in.; creates chip-free bores on melamine and other sensitive materials by drilling from below; boring head with hard gears and spindles; linear bearings on slides for up and down movement; and, no tools required for precision depth adjustments. Double safety controls with metal detector and photo eye prevents the boring unit from cycling again into the previously installed hinge. Dimensions are 55 in. long, 32 in. wide and 50 in. high. www.jpmachines.com
Laser engraving machines transfer art in seconds
Accessories provide wardrobe organization
Epilog Laser has introduced the Fusion Pro, with 5 g acceleration and 165 ips engraving speeds. The IRIS Camera Positioning system is said to allow users to precisely place their artwork on screen in seconds. Models include the Fusion Pro 32 with 32 x 20 in. work area and the Fusion Pro 48 with 48 x 36 in. work area. Power ratings are 50, 60, 80, or 120 W for the CO2 unit and 30 or 50 W for the fibre unit. The Dual unit permits configuration of the laser with both CO2 and fibre sources www.epiloglaser.ca
Adjustable lid stay system for cabinet doors
The MDH-1 from J&P Machines is a single head router for low- to medium-volume door production. Features include: fast setup from small to large doors with preset stops; cycle time of approximately 4 seconds; dust
26 WOOD INDUSTRY
look, and the soft-close damper is adjustable with a simple 5-way selector switch. If you have a chest, trunk or lidded bench, this system will also help keep fingers out of harm’s way, the company says. The system includes concealed hinges, lid stay arm, mounting plates and screws; closing speed of lid is adjustable. www.sugatsune.ca
The Aileron Lid Stay collection from Sugatsune combines a variety of features into one cabinet door system. Lift assistance is provided when opening the lid, an adjustable lid stay that frees up hands as the users search for items in the chest, quiet soft-close action and 3-way adjustable concealed hinges. With the lid up and out of the way, users enjoy an unobstructed view and easy access to the contents of the chest. The lid stay attaches to the hinge arm for a clean
JANUARY/FEBRUARY 2020
Salice has introduced Excessories, its first collection of accessories created with the highest aesthetic-functional qualities in mind. The collection provides design variations to optimize space and to facilitate the arrangement of wardrobe interior fittings, offering many storage and style possibilities and convenience. The Excessories — Night Collection allows wardrobes and walk-in wardrobes of all styles to accommodate shirt hangers, scarves and tie hangers, bag hangers, cotton garment holder bags, trouser hangers and shoe racks, all elements of singular refinement and efficiency, the company says. The drawers and the illuminated shelves transform the walkin wardrobe into an inspirational space, it adds. The materials of the collection include fabrics, leather and imitation leather. www.salicecanada.com
Bullets WOOD The total value of building permits issued by Canadian municipalities decreased 2.4 percent to $8.1 billion in November over the previous month. The value of industrial permits rose 24.5 percent to $753 million, however, and the value of institutional permits rose 14.5 percent to $894 million, both largely due to gains in the province of Quebec. —Statistics Canada Most Canadian households (85.6 percent) were satisfied or very satisfied with their neighbourhood in 2018, but the level of satisfaction varied depending on where they lived. Among Canada’s 10 largest census metropolitan areas (CMAs), for example, satisfaction with their neighbourhood ranged from 82.2 percent of households in Toronto, Ont., to 92.5 percent in Québec City, Que. Households in the two largest and most expensive CMAs of Toronto and Vancouver, B.C., reported the lowest level of satisfaction with their dwelling (both at 77.0 percent), while households in Québec City (87.8 percent) were most likely to be satisfied. —Statistics Canada Canada’s unemployment rate in November stood at close to 5.9 percent, not far from its lowest recorded rate of 5.6 percent for the same period last year. The rate is forecast to rise gradually up to 6.5 percent in 2024. —Statistics Canada/Statista The U.S. jobless rate dipped to 3.5 percent in November, matching the lowest since 1969. Average hourly earnings climbed 3.1 percent from a year earlier. Payrolls jumped 266,000, the most since January, after a 156,000 advance the prior month. —U.S. Department of Labor Home sales recorded via Canadian MLS real estate systems inched up by 0.6 percent November 2019. Notching its ninth straight monthly gain, activity stands 20 percent above the six-year low reached in February 2019 but 6 percent to 7 percent below heights recorded in 2016 and 2017. —CREA Billings at U.S. architecture firms increased modestly for the second consecutive month in November, with an Architecture Billings Index (ABI) score of 51.9 (any score over 50 indicates billings growth). —American Institute of Architects Adults 18 and older in the U.S. currently spend just shy of six hours with their TV-connected devices each week. Conversely, radio commands nearly 12 hours of weekly attention. —Nielsen
Student loans in the U.S. over the last 10 years have increased by close to 120 percent. By the third quarter of 2019, the loan debt stood at $1.64 trillion US from $771.7 billion US in the same period 10 years ago. —LearnBonds.com In 2019, worldwide revenue in the online games segment reached $16.9 billion US. The most significant part of that amount, or $4.2 billion US, was generated in China. The U.S. was the second-largest online gaming revenue generator in the last year at $3.5 billion US. With $2.8 billion income, Japan took third place, followed by South Korea and the U.K. —GoldenCasinoNews.com U.S. imports of wooden furniture grew by 9 percent in October but were still 10 percent less than that of the previous October. Slowing imports from China was the main reason for the decline. Imports from China were down by 3 percent in October and are lagging 2018 by 27 percent year-to-date. —ITTO The Dow Jones Industrial Average was up 22 percent at the end of 2019 compared to 12 months earlier, the same as the Shanghai Composite. Both were beaten by the Dax, which gained 25 percent over the same time period. The Nikkei index in Japan gained 18 percent in 2019, while the main index of the TSX in Toronto was up 19 percent on the year. —Statista Total investment in building construction decreased 0.5 percent from September to $15.5 billion in October but is up 6.4 percent from last year. —Statistics Canada Total construction activity in the U.S. for November 2019 — $1,324.1 billion US — was 0.6 percent above October. —U.S. Census Bureau The current bushfire crisis in Australia accounts 12 million acres having burned to date. Fires in remote parts of northern Russia burned 6.7 million acres last year, while the California fires of 2018 accounted for 2 million acres and the Amazon fires 2.2 million acres. —Statista U.S. households added $92 billion US of debt in the third quarter of 2019, led by a rise in mortgage loans, and overall debt levels set another record, nearing $14 trillion US. —Federal Reserve Bank of New York www.woodindustry.ca
WOOD INDUSTRY 27
U.S. imports of hardwood molding fell by 14 percent in October, led by sharp declines in imports from China and Malaysia. Malaysian imports declined by 34 percent and Chinese imports fell by 25 percent. Year-to-date imports are down 24 percent overall with imports from China and Brazil both at around half of last year’s totals. —ITTO The Fiat Chrysler Automobiles and Peugeot S.A. merger will create the world’s third largest car manufacturer by revenue and the fourth largest by automobile sales, trailing only Volkswagen, Toyota and the strategic alliance between Renault, Nissan and Mitsubishi Motors. —Statista U.S. imports of tropical hardwood veneer rebounded from September, rising 58 percent in October to a level 16 percent higher than that of October 2018. However, 2019 imports still trail last year by 18 percent year-to-date. —ITTO The U.S. population was estimated to be 330,222,422 on Jan. 1, 2020. The nation had an increase of 1,991,085 people, or 0.61 percent, from New Year’s Day 2019. Since April 1, 2010, the population has grown by 21,476,884 or 6.96 percent. However, fortytwo states and the District of Columbia had fewer births in 2019 than 2018, while eight states saw a birth increase. —U.S. Census Bureau The projected world population at the start of 2020 was 7,621,018,958, an increase of 77,684,873, or 1.03 percent, from New Year’s Day 2019. During January 2020, 4.3 births and 1.9 deaths are expected worldwide every second. —World Population Clock The Canada Manufacturing PMI dropped to 50.4 in December 2019 from 51.4 in the previous month where it had risen from 51.2 in October. Anything above 50 for the purchasing managers index — PMI — is considered positive. —IHS Markit Canada’s merchandise exports declined 1.4 percent in November to $48.7 billion, while imports were down 2.4 percent to $49.8 billion. As a result, Canada’s merchandise trade deficit with the world narrowed 31 percent from $1.6 billion in October to $1.1 billion in November. —Statistics Canada Law firm Fink & Bornstein of Toronto, Ont., noted in its July 2019 newsletter that injured worker benefit claim costs by the Ontario WSIB (Workplace Safety and Insurance Board) were $4.7 billion in 2009 and administration cost $600 million. By 2018, it says, claims were just $1.8 billion and administration cost $800 million. —Daily Commercial News
28 WOOD INDUSTRY
JANUARY/FEBRUARY 2020
There are 664 mass timber projects currently in design or construction across the U.S. During Q3 2019, mass timber multifamily occupancies were 26 percent, compared with 11 percent looking at the same time period in 2018. —Softwood Lumber Board/WoodWorks Retail e-commerce sales in Canada were $1.8 billion in October, accounting for 3.4 percent of total retail trade. On a year-over-year basis, retail e-commerce increased 14.4 percent, while total retail sales were up 0.8 percent. —Statistics Canada There are nearly 80,000 wooden furniture enterprises with 5 million employees in China. Five major furniture industrial clusters have been established, the Pearl River Delta, Yangtze River Delta, Ring Bohai Sea, the Northeast and the West regions. These account for 90 percent of the national furniture production capacity. —ITTO The OECD conducts an assessment every three years of education systems worldwide by testing the skills and knowledge of 15-year-old students in science, reading and mathematics in 79 countries, with 600,000 students put under the spotlight of a two-hour test. With a mean PISA score of 1,736, China tops the list, ahead of Singapore and Estonia in second and third respectively. Canada ranks 6th at 1,550, with the U.S. coming 22nd with a total average score of 1,485. The average for all of the OECD countries tested was 1,465. —Statista A 2019 ranking system that includes R&D spending and patent activity shows the most innovative countries by index value are led by South Korea, followed by Germany. The U.S. is ranked in eighth place, climbing up three ranks compared to 2018, while Canada climbed two spots to 20th place. —Bloomberg Innovation Index According to the Recording Industry Association of America, CD album sales in the U.S. have dropped by 94 percent since peaking in 2000 at 943 million units and are currently at 52 million units, their lowest level since 1986, when Whitney Houston’s self-titled debut album topped the Billboard charts. —RIAA New construction starts in Canada declined 11 percent in October to a seasonally adjusted annual rate of $696.3 billion. This is the third consecutive monthly drop in construction starts. Through the first 10 months of the year, total construction starts were 4 percent lower than in the same period of 2018. The October statistics pushed the Dodge Index down to 147 compared to 166 in September. —Dodge Data & Analytics
Events WOOD
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Feb. 4 – 6 ZOW Bad Salzuflen, Germany www.zow.de
Akhurst Machinery www.akhurst.com ............................21
Komo Machine www.komo.com ................................17
Elias Woodwork www.eliaswoodwork.com................20
MEC Precision www.mec-precision.com .................25
Feb. 12 – 13 BuildEx Vancouver Vancouver, B.C. www.buildexvancouver.com
Felder Group Canada www.felder-group.ca .........................7
Mereen-Johnson, LLC www.mereen-johnson.com .............10
Grass Canada www.grasscanada.com .....................5
Salice www.salicecanada.com ..................32
IWF www.iwfatlanta.com .......................31
Sames Kremlin www.sames-kremlin.com ...............22
KCD Software www.kcdsoftware.com ..................2, 3
Wood-Maxx www.wood-maxx.ca ........................23
Feb. 27 – Mar. 2 Indiawood Bangalore, India www.indiawood.com March 6 – 8 PEI Provincial Home Show Charlottetown, P.E.I. www.peihomeshow.ca March 13 – 15 Saint John Home Show St. John, N.B. www.saintjohnhomeshow.ca Mar. 13 – 22 National Home Show Toronto, Ont. www.nationalhomeshow.com Mar. 16 – 18 Dubai Woodshow Dubai, UAE www.dubaiwoodshow.com
Xylexpo www.xylexpo.com.............................13
Your customers trust us. Ask them.
March 24 – 25 GreenBuild Europe Dublin, Ireland https://greenbuild.usgbc.org Apr. 23 – 25 SIBO Salon Industriel du Bois Ouvré Drummondville, Que. www.woodworkingnetwork.com/ events/salon-industriel-du-bois-ouvre May 26 – 29 Xylexpo Milan, Italy www.xylexpo.com
Stephen King • 416-802-1225 • sking@wimediainc.ca www.woodindustry.ca www.woodindustry.ca
INDUSTRY 29 WOODINDUSTRY WOOD
WOOD
By the numbers Residential construction investment In millions of dollars
12,000
Residential construction investment In millions of dollars
10,000
Total residential investment
Residential construction investment In millions of dollars ;+<=>+#/=4'?.1#</9"./=1#?=#2+</@+#/? !"#$%&&%'"(#')#*'&&+,( Residential construction investment In millions of dollars
8,00012,000 12,000 A1/4'?9+<=>+#/=4'?=#2 +</@+#/ TotalTotal residential inv estment Total residential inv estment residential investment
10,00010,000
6,000
8,000 8,000
4,000 6,000
Canadian building permits In millions of dollars
6,000
Renovations
Renovations investment
4,000 4,000
2,000
7,000
;+#124/=1#<?=#2+</@+#/ Renovations investment Renovations investment
2,000 2,000
00
6,000
0
!"#$%& !"'$%& (")$%& *+,$%& -./$%& 012$%& 3+.$%& !4#$%5 6+7$%5 849$%5 (,9$%5 84:$%5 !"#$%5 !"'$%5 (")$%5 *+,$%5 -./$%5 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19
Total residential
Canadian building permits In millions;4#4<=4#>7"='<=#)>,+9?=/@> of dollars building Canadian building permits In millions of dollars Canadian permits In millions of dollars !"#$%&&%'"(#')#*'&&+,( 5,000 7,000 7,000
Total residential Residential Total residential A1/4'>9+@=<+#/=4' building permits Total commercial
4,000 6,000 6,000 5,000 5,000
3,000
Commercial building permits
4,000 4,000
Total commercial Total commercial A1/4'>.1??+9.=4'
2,000 3,000 3,000
Institutional and governmental building permits
2,000 2,000
1,000
Total institutional and
1,000 1,000
00
A1/4'>=#@/=/"/=1#4'>4#< Total institutional andand governmental Total institutional )12+9#?+#/4' governmental governmental
0
!"#$%& !"'$%& (")$%& *+,$%& -./$%& Jun-18 Jul-18 8 8Sep-1 8 8 Oct-18 Oct-1 8 8012$%& Nov-18 Dec-1 8 8 !4#$%5 Jan-1Jan-1 9 9 6+7$%5 Feb-19 Mar-1 9 9(,9$%5 Apr-19 May-19 Jun-19 Jul-19 Aug-1 9 9*+,$%5 Sep-1 9 9-./$%5 Oct-1 9 9 Jun-18 Jul-18 Jul-18 Aug-1 Aug-1 Sep-1 Oct-1 Nov-183+.$%& Dec-1 Feb-19849$%5 Mar-1 Apr-1984:$%5 May-19!"#$%5 Jun-19 !"'$%5 Jul-19 (")$%5 Aug-1 Sep-1 Oct-1 Jun-18 Aug-18 Sep-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19
New housing construction value In millions of dollars
housing construction In millions of dollars NewNew housing construction valuevalue millions of dollars 0+;<=1">?#)<.1#>/9"./?1#<24'"+< !In "#$%&&%'"(#')#*'&&+,(
14,000 14,000
Total residential Total residential @1/4'<9+>?A+#/?4'
Total residential
12,000 12,000 10,,00010,,000
Single Single *?#)'+ Single
8,000 8,000
Apartments
DoubleDouble 31"7'+
6,000 6,000
Row
4,000 4,000
Row B1;
Double Row
2,000 2,000
0
(,49/C+#/ Apartment Apartment
Carpenter construction union hourly wage rates In dollars including selected pay supplements
!"#$%& !"'$%& (")$%& *+,$%& -./$%& 012$%& 3+.$%& !4#$%5 6+7$%5 849$%5 (,9$%5 84:$%5 !"#$%5 !"'$%5 (")$%5 *+,$%5 -./$%5 Jun-18 Jun-18 Jul-18 Jul-18 Aug-18 Aug-18 Sep-18 Sep-18 Oct-18 Oct-18 Nov-18 Nov-18 Dec-18 Dec-18 Jan-19 Jan-19 Feb-19 Feb-19 Mar-19 Mar-19 Apr-19 Apr-19 May-19May-19 Jun-19 Jun-19 Jul-19 Jul-19 Aug-19 Aug-19 Sep-19 Sep-19 Oct-19 Oct-19
70
Carpenter construction union hourly wage rates In dollars, including selected pay supplements 60
Tor onto, Ont.
B/+*73:7+C9<3D:+29:E<3C23E<3CF<2+40CG/57C+/:7DC !"#$%&&'()#*"+&,$*"-#).&.+/.$#0'1#),00&.2."/) Carpenter construction union hourly wage rates In dollars including selected pay supplements Regina, Sask.
70
Tor onto, Ont.
50
Toronto, Ont.
60
40
Regina, Sask. Edmonton, Alta. Regina, Sask.
40 30
Edmonton, Alta. Edmonton, Alta.
50
Vancouver, B.C.
Vancouver, B.C.
30
20
Vancouver, B.C.
Quebec, Que.
20
QuĂŠbec, Que.
10
QuĂŠbec, Que.N.B. Saint John,
10
00
)*+,"Apr -18 Apr-18
./0," - 8 May-1 May-18
123,"Jun-18 Jun-18
124,"Jul-18 Jul-18
)25,"Aug-18 Aug-18
67*,"Sep-18 Sep-18
INDUSTRY JANUARY/FEBRUARY JANUARY/FEBRUARY 2020 2020 30 WOOD INDUSTRY
89:," -8 Oct-1 Oct-18
;<=,"Nov-18 Nov-18
>79,"Dec-18 Dec-18
1/3,"? Jan-19 Jan-19
@7A,"? Feb-19 Feb-19
./+,"? Mar-19 Mar-19
)*+,"? Apr -19 Apr-19
./0," ? 9 May-1 May-19
123,"? Jun-19 Jun-19
124,"? Jul-19 Jul-19
)25,"? Aug-19 Aug-19
Saint Saint John, John, N.B. N.B.
Source: Statistics Canada
0
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