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Wooden patience: Prairie Barnwood Knockoffs and Canadian ideas Prosperity ruled at WMS 2017
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NOVEMBER/DECEMBER 2017 Vol. 13, No. 6
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Wood Industry is published six times annually, Jan./Feb., Mar./Apr., May/ June, July/Aug., Sept./Oct. and Nov./Dec., for the secondary wood products manufacturing and marketing industries in Canada.
Flatline systems increase production, but hang on to your spray booths. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Industry gives social media a failing grade. . . . . . . . . . . . . . . . . . . . . . . . . . . 21
WMS 2017. It’s a wrap
Great vibes on the floor of Canada’s biennial show. . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Profile:
Reborn barns
Prairie Barnwood of Morden, Man., turns historic structures into rustic furniture. . . . . . . . . . . . . . . . . . . . . . . . . . . 16
WOOD Editorial . . . . . . . . . . . 4 Filings . . . . . . . . . . . . . 9 Design . . . . . . . . . . . 12 Law . . . . . . . . . . . . . . 14 Digital . . . . . . . . . . . 19
New products . . . 24 Bullets . . . . . . . . . . . 28 Events . . . . . . . . . . . 29 Advertisers . . . . . 29 By the numbers . . 30
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WOOD INDUSTRY 3
From the editor
The leadership list W
MS this year was genuinely fun for us at Wood Industry. We especially enjoyed the Manufacturers’ Roundtable we put on at the Royal Ambassador north of the show venue, and we want to thank our sponsors and attendees once more, sponsors compr ising Akhurst, Axalta, Grass Canada, Precision Drive Systems, Super Thin S aw s , Tau r us Cr a co, Kerry Knudsen Weima and White Oak Custom Woodworking. A recurring theme this year was that of leadership, followmanship and salesmanship, with leadership seeming in short supply. Naturally, there is the normal complement of people that want to be bosses, and they seem still able to interrupt the proper flow of resources, but leadership is hard to find. The Manufacturers’ Roundtable attendees might bear viewing as a group to see if that defines leadership. The idea was and is to find out who among the manufacturers — in social statistics they call the studied group a “universe” — might come forward with ideas to share about the industry, and maybe a solution or two. It seems almost self-defining that people who take an opportunity to grab time and resource opportunities and try to advance the entire industry on a rising-tide-floats-all-boats philosophy are leaders. Quite a few people dropped by the booth to talk about our recent e-report about our continued lack of cooperation from our industry’s self-described Wood Manufacturing Council. For those of you that read the piece, we invited members of the “Council” to stop by the booth and have a chat, and none did. We leveled some serious charges at WMC in that report. We provided an open invitation to correct anything in the record that was not true. The invitation was declined. The report stands. One fellow that did stop by is a manufacturer from the Kitchener, Ont., area, and his reaction to the report was strong and emotional. He was angry that our industry has been painted with the broad brush of acINDUSTRY NOVEMBER/DECEMBER 2017 WOODINDUSTRY 4 WOOD 4
cusation for crimes of which we are not guilty. He said he has a young woman working in his company, and that everybody likes and respects her, and he both has never heard or dreamed of anybody harassing her, nor would he tolerate even the slightest hint of impropriety from among his staff or customers. Yet the WMC’s report accuses our sector of endemic sexual harassment. It should make him mad. If you haven’t seen it, you can read the e-report at www.woodindustry.ca/index.php/on-the-backs-ofsmall-business. The thing is, if we allow self-serving “leaders” to brand our sector as gorilla-handed deviants, then that woman at the Kitchener company will come under social scrutiny for her own morals by working there. And also, the Kitchener company and the rest of us will have a hard time hiring women with character. It seems our sector (as well as others) has made a headlong rush to technology, and has abandoned leadership, and it may have long and harsh consequences. For example, technology may be a tool, but it may also be a trojan. Invasion of privacy and theft of personal information has become so common that stealing has become as accepted among the technology class of people as breathing, it seems. For example, we have moved to the point that your high-end machinery can report back to home port what problems the machine is having, and often thet can be fixed remotely from Italy, Germany or China. However, that software can also report back to the home port your designs and patterns, and your production rates of each pattern and frequency. I’m not saying that is happening at the moment, but I am saying that it could. And I am also saying if it is not happening right now, it will. There are people ready to copy and paste anything anybody anywhere is doing, set up a machine under a tin roof in Indonesia and start churning out the same products, parts and panels as the highest of the high-end, five-axis CNC machines are doing. Leadership in our industry might try to lobby Parliament to start enforcing laws against the theft of intellectual property. Did I just put Parliament and leadership in the same sentence? Forgive me. What was I thinking? After all, it was Parliament that established the National Do Not Call list to prevent invasive telephone calls, and I assume we have all suffered the consequences of putting our names on that list. I hear it’s the best call list in the market, since all the numbers are verified by the owner. Maybe the new Canadian Anti-Spam Legislation will do better. Anybody care to bet? Comment at www.woodindustry.ca
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MILLWORK, furniture and cabinet shops face challenges when they can’t keep up with demand. So to stay on top of things, the decision often boils down to either hiring more hands, or taking the leap into automation. Those same in-demand shops that also do their own spraying in-house manually grapple with having enough skilled hands on deck, too. One company that didn’t hesitate to embrace automation is Muskoka Cabinet Company of Alfred, Ont. The now highly-automated residential and commercial cabinet company made the transition back in 2004 when everything was solvent-based, according to Muskoka Cabinet president Luke Elias, who purchased the business in 1989. “In 2003 at our old factory, we had not just a spray booth but a huge spray room,” says Elias. “The operators of the hand guns had to be well trained. Of course if the guys doing the spraying were sick then we didn’t spray.” At that time solid colours were becoming very popular, notes Elias. “The spray room had a lot of issues — everyINDUSTRY NOVEMBER/DECEMBER NOVEMBER/DECEMBER2017 2017 6 WOOD INDUSTRY
body had a lot of issues with the solid colours. The application or the process in which the manufacturers would supply the solid colours would change every six months because none of them ever worked, especially if cabinet doors were around water.” The primary driver at Muskoka Cabinet was that it was looking to the future, from the standpoint of technological trends and meeting greater customer demand. “We knew that water base one day was going to be the standard,” says Elias. “Then you couldn’t really apply water based by hand — it had to be an automated spray application to maintain consistency.” Anthony Stanghieri, vp operations at Rowntree Custom Millwork of Vaughan, Ont., said that when his 30-year-old, family-run company added flatline spray capability, the machinery had a huge impact. “Instead of employing more people to do one job you have less, but more consistent quality,” says Stanghieri. “The machinery helps your production grow.” Rowntree specializes in CNC cutting, solid surface fabrication and custom cabinets.
Although labour reduction is a by-product of spraying automation, the human touch is still very much required. “You can never take away the skill of a person’s hand and their eyes,” says Stanghieri. “The machine can only do so much. But you still have to have a good eye and know how to mix the products. The concept is still the same as the hand spray, but the difference is that the machine can run a lot faster.” AUTOMATING spraying operations does not always mean abandoning manual spray booths. Wingers Cabinets of Hagersville, Ont., for example, has not thrown the baby out with bathwater. Founded in 1982, Wingers builds solid wood face-framed cabinets with solid wood doors, including PureBond formaldehyde-free birch veneer core interiors and shelves, with soft-close doors and dovetail drawers. It also offers a variety of countertops including quartz, granite and high definition laminate. Operations manager Mark Doyle points out that after moving one year ago from an 8,000 sq. ft. facility to 20,000 sq. ft., and adding a flatline spray machine and drying room three months ago, it still maintains three temperature-controlled manual spray booths and a mixing room. “By no means are the booths running at full capacity,” says Doyle. “However, we do still benefit from having them. Some of the odd colours — a different colour vanity or a different colour island — are still running through the booths.” Doyle echoes the theme of consistency with automated spray equipment, with some human intervention. “It doesn’t matter if it is a Monday morning or a Friday afternoon,” he says. “Getting the proper mils on top is something we can set up manually. Then we know it is going to stay consistent throughout the job and all of the other future jobs. That does make a big difference.” For Wingers Cabinets, the move — also partly prompted by an expiring lease at its old location — turned out to be good timing. According to Doyle, “it was time to renew
Flatline or manual? Neither are going out of style
or move on. We were able to expand at the same time, and with larger shop we were able to look at some of the other machines that take up floor space. Definitely the automated finishing line was something that the larger building could accommodate.” Automated spraying lines provide more advantages than just throughput, but also allow for different solutions to be applied, Muskoka Cabinet found. “When we made the move back in 2004 they had come out with water based topcoats in flooring,” says Elias. “You could buy it at Home Depot in a can, but there wasn’t a lot of water-based stain application going on. People could still get into water-based topcoat with a solvent-based wiping stain.” These processes could be performed on a flat line at the time, but that wasn’t the concern driving Muskoka Cabinet. The company also realized that it took a lot of time to rack and dry products. “When product was drying, and dust fell on it, that would be a problem,” says Elias, “and UV topcoats cure instantly. As soon as it comes off the line you can put it on the cabinet and ship it out. There is water-based stain, then water-based top coats, and then UV water-based topcoats. “Ultra violet topcoats sped up the process enormously. You could go from start to finish on the cabinet and out the door in a fraction of the time it would take to hand spray, hand wipe, dry, spray again, dry, spray again and air dry. So there would be considerable time with each step.” WHEN A SHOP isn’t large enough to justify any in-house spraying operations, there are outsourcing options, including finding other shops with excess capacity. Rowntree Custom Millwork is one shop that receives outside spraying jobs. “We have the capacity now to accept overflow work or outsourcing from other clients that can’t handle the workload that they have,” says Stanghieri. “It’s been growing a lot in the last couple of years as people find out who we are and what we offer.” Rowntree has had an automated line for about four years and immediately had about 15 to 20 percent of its spraying operations occupied by outside shops. “The numbers have been growing exponentially the last couple of years.” The company does not have salesmen to push the service, relying on referrals and word of mouth. “It has the possibility to grow into its own company, but it’s not something that we are going to be considering for the next three to five years,” says Stanghieri. However, there could be problems when unpainted millwork, furniture or cabinets go out the door to any third party spraying operation. Material handling, colour matching and consistency — quality, in other words — become an issue. According to Elias, “the investment in the materials (to automate) is substantial. You are looking at one million www.woodindustry.ca www.woodindustry.ca
INDUSTRY 7 WOODINDUSTRY WOOD
bucks.” While his company doesn’t take in outside jobs, Elias “definitely” sees the merit in farming out work if a shop doesn’t have the equipment. “Not only is there the investment in the equipment, but there is a big learning curve in getting an automated system up and running.” IF THE STANDARD operating procedure for a shop is to have the panels finished elsewhere, the product has to be protected in transit, according to Elias. “There are all kinds of things you can do, such as design-in reusable containers that have padding inside with slots in order to ship them back and forth to your finishing partner. That’s what I would do to cut down on packaging and damage.” Stanghieri says that unless you have volume business to justify robotic spraying operations in addition to a flatline system, “having a manual spray booth is always going to be essential to every woodworking business. When you are doing things like surrounds and complicated things like boxes you can’t put them through a spray line.” For Wingers Cabinets, taking on outside work “isn’t something that comes up,” says Doyle. “We have the volume in our own sales and in our own work that we can keep that machine, as well as our three booths, running ten hours a day.” However, with only three months-worth of a fully-automated line under the company’s belt, there could be an opportunity, Doyle concedes. There has definitely been a
learning curve for Wingers, he adds. “It seems like it was the right way to go and it does seem like going from one booth to two booths to three booths was the logical answer — to add booths and look at automation just seemed to be the right path for us. It’s been a lot of fun but with its own challenges.” Comment at www.woodindustry.ca
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Filings WOOD Felder Group expands in Canada The Felder Group, based in Mississauga, Ont., reports that business growth over the last year has led to an increase in staff from 10 to 15. It also reports that it is increasing its warehouse area by 4,000 sq. ft., bringing the footprint up over 16,000 sq. ft. in total at its headquarters. In addition, the broad line woodworking machinery company has announced plans to open a Montreal, Que., sales office by the end of the first quarter in 2018. A sales representative has already been trained for the new location, and plans are in place to add a service technician and a further sales rep at a later date. The sales office is
CNC Automation grand opening demonstrates automation capabilities
At its recent three-day headquarters grand opening in St. Zotique, Que., CNC Automation demonstrated its expertise in automating wood production processes. The distribution company operates a “working showroom” at the headquarters location,
co-located with a large client that will provide a functional environment for future customers to test Felder machines. Felder Canada ceo Andy Gombaz (shown) says that the recent WMS 2017 show in Mississauga, Ont., resulted in sales of a number of machines, including a Felder Format 4 Finish 1353 wide belt planer sander introduced earlier this year at the Ligna show in Hanover, Germany.
where visitors can learn about and try out different machines throughout the year. On display for customers and prospects at the grand opening were machines for panel processing, solid wood, finishing and automation. In both English and French, presentations and working labs covered spray coating, drying systems and CNC-based cutting systems, as well as software strategies, cabinet hardware and adhesives.
Jeld-Wen agrees to acquire Domoferm
Jeld-Wen Holding of Charlotte, N.C. has signed an agreement to acquire the Domoferm Group of companies from holding company Domoferm International GmbH. Domoferm is
a European provider of steel doors, steel door frames, and fire doors for commercial and residential markets. Domoferm is based in Gänserndorf, Austria, with over 1,000 employees at four manufacturing sites in Austria, Germany, and the Czech Republic. Domoferm has a history dating to 1960. Jeld-Wen designs, produces and distributes an extensive range of interior and exterior doors, wood, vinyl and aluminum windows and related products for use in the new construction and repair and remodeling of residential homes and nonresidential buildings.
Abrasives specialist Mirka welcomes two new staff
Mirka Canada has announced that Claudio Di Sabato and Sylvain Lamoureux have joined the abrasives company based in Saint-Laurent, Que. Di Sabato is the new national accounts manager and is from the automotive aftermarket industry, where he held sales and management positions at several manufacturers and distributors. Lamoureux
Claudio DiSabato
Sylvain Lamoureux
has joined as sales representative for the areas of south shore of Montreal and the eastern townships. His experience is in the autobody industry, including sales responsibilities at Autopoint, Akzo Nobel and Sherwin Williams, and as the owner of two paint stores. Most recently, Lamoureux was part owner of Fix Auto Saint Hyacinthe. www.woodindustry.ca
WOOD INDUSTRY 9
Filings WOOD Lumber Liquidators settles class-actions related to China-made products
Melamine facility purchased by BMK
company said it signed an agreement with complainants in two cases in the Eastern District of Virginia to contribute $22 million US in cash and $14 million US in store credit vouchers. The $36 million US will be used to settle all claims brought on behalf of the buyer of the China-sourced products sold by the company between Jan. 1, 2009 and May 31, 2015, the company said.
Lumber Liquidators Holdings of Toano, Va., said it would settle all pending litigations related to the China-made flooring products sold by the hardwood flooring retailer for an aggregate settlement amount of $36 million US, according to Reuters. The
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BMK Americas (BMK), a subsidiary of DKB Décor Inc. (DKB), has acquired a melamine film manufacturing facility located in Lexington, N.C., from Shaw Industries of Dalton, Ga. The acquisition of the new plant, which complements DKB’s sales office in nearby Charlotte, N.C., provides a production site in the U.S. to better serve the needs of the company’s thermally fused laminate industry customers in North America. With offices and facilities in Italy, France, Spain, Iran, Turkey, Germany and Russia, the BMK/DKB Group will gain additional market share with a new U.S.-based facility. The investment in providing new products and services represents the company’s strategy of growth in North America and within Europe.
Griffon completes acquisition of ClosetMaid
New York, N.Y.-based Griffon Corporation has completed its acquisition of ClosetMaid, a manufacturer of home storage and organization products. ClosetMaid is now part of Griffon’s Home and Building Products segment, which also includes Clopay Building Products and The Ames Companies. In addition, Michael Sarrica has been appointed president of ClosetMaid and will continue as a Griffon senior vice president reporting to Robert Mehmel, Griffon’s president and coo. Sarrica was promoted to senior vice president, Operations of Griffon in January 2017 and was president of The Ames Companies from January 2014 to December 2016. ClosetMaid headquarters will remain in Ocala, Fla, and employs approximately 1,500 people in five countries.
SCM Group opens B.C. office
Wood industry machinery manufacturer SCM Group Canada has opened an office in Langley, B.C. The location will include both service and sales staff to serve the Western Canadian market. Due to the rising demands of the marketplace, SCM decided to transition its 30 years of Western Canadian distribution presence into a permanent location, the company says. Based in Rimini, Italy, SCM products include sanders, edge sanders, finishing systems, saws, CNC machining centres and joinery machines, as well as automation, assembly and packaging systems.
safety norms, as well as building codes and standards. Another service Proulx will offer members is fielding contact inquiries by vendors wishing to establish themselves in the Canadian market.
FSC unveils The Vancouver Declaration for responsible wood sourcing
The Forest Stewardship Council (FSC) of Bonn, Germany, has launched an initiative to increase
the use of materials from responsibly managed forests. The Vancouver Declaration allows businesses who use these natural products to pledge their commitment to increase responsible sourcing. Global companies like Ikea, H&M, Sig, Marks and Spencer, Jysk, Mitsubishi Paper Mills and Fuji Xerox have pledged support to the initiative. The aim is to get more businesses across the entire supply chain on board, according to FSC.
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WOOD INDUSTRY 11
Design WOOD Less flattery, more innovation required
Canadian copies I
hate being embarrassed. Most of us do. Our dislike of that self-conscious sting is part of what keeps us behaving in a socially acceptable way and that’s a good thing. But we tend to remember when we get caught out. Years ago, I was touring a group of students through Paul Epp showrooms in Milan, Italy.
In one, the polite host asked after our nationality. When I identified us as Canadian, he hit the roof: “you #*@ Canadians are worse than the Chinese”. He was referring to Canadian copies. Part of what made that embarrassing was the amount of truth contained within his observation. Even though I go to great lengths to avoid that description in my own design work, it’s a fair comment. Canada is known for its comfort with copying. There is a long history of product imitation in Canada and as a justification, it doesn’t sound so bad. We have lacked the market size and concentra-
tion that supports innovation. Almost everywhere (even in Italy) innovative products are supported by only a small fraction of the population, at least initially. As new designs gain their place in the market and their worth is recognized, they get bought more often and when this happens, they get copied. But where they originate has a lot to do with there being enough customers to make their production worthwhile. Therefore, innovations mostly thrive in large urban conglomerations, and if they are linked with others, creating an even larger market, so much the better. Canada is still basically a large country with a small population, thinly dispersed across its vast distance. It is not ideal for product innovation. There is another, less comfortable, aspect to this story. And this is cultural, not geographic. We do not have a distinguished history of valuing innovation, even when it is economically defensible. We can attribute that, in part, to our cautious reserve, preferring to let others take the risks, a characteristic that would
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amount of ridicule along the way. We could, a bit plausibly, blame our colonial history wherein we were expected to be dutiful and obedient customers of our mother country, thereby improving her odds of success in innovation while forgoing our own. But, we could be more innovative anyway. In fact, in some instances, we have been. When we have had large domestic markets, like agriculture, our innovative success in farming equipment has been very impressive. Our open spaces have encouraged us to innovate in telecommunications. There are other successes in mining and forestry. We have proven that we can do it. So then why don’t we, more often? Other cold countries, with a sparse population, like those in Scandinavia, are known for their innovation. have improved our chances of sur- Few countries have been simultanevival in a cold climate. We can also ously both as frugal and innovative acknowledge our financial prudence, as Scotland. The U.S. is also a former of which we are justifiably proud. We colony, although less inhibited by its also might hate being embarrassed, past. It’s not a shortage of talent that but adventuring in innovation is al- is holding us back. As a design educa11-14-17-hfpg-epilog-WoodIndustry.pdf 1 11/14/2017 3:10:30 PM most certain to expose us to a certain tor, I have been more than reassured
that we have all of that that we need. I think that there are basically two requirements. One is for an entrepreneurial spirit that embraces risk-taking. Silicon Valley has plenty of these and more than a few are (former) Canadians. Maybe that is just how it works. It’s a better place to innovate so why not go there, too? Another is a fundamental respect for innovation and a pride in proprietary intellectual property. Unfortunately, I don’t know how this is nurtured. To me it is self-evident. Innovation is crucial to our wellbeing, by almost any indicator: social, economic, cultural… We are defined by our creative accomplishments and our prosperity depends on them. We ought to have more. Then we might have some prospect for letting the term ‘Canadian Copy’ slide silently into oblivion, embarrassing us no more. Paul Epp is an adjunct professor at OCAD University, and former chair of its Industrial Design department.
www.woodindustry.ca
WOOD INDUSTRY 13
Law WOOD Rocky residential real estate landscape
Seller beware? By Rinus Pais
J
oseph and Anna Canuck are retired and living mortgage-free in their 2,100-square-foot bungalow in Vaughan, Ont. After years of home ownership, they have decided to downsize by moving into a condominium. On the advice of their realtor, they list their home for sale on March 10, 2017, asking $710,000 but, in the frenzied real estate market, expect offers over that amount. Sam and Sheila Koala are international students with Australian citizenship. They are graduating and have found jobs in their field. They have applied for permanent resident status and plan to become Canadian citizens down the road. They have decided to buy their first home in Vaughan and have been looking for some time, but have missed out on
a number of opportunities by being outbid or too late. They love the Canuck’s house and, based upon their savings and the maximum amount of their preapproved mortgage, they offer $850,000, including a $10,000 deposit, within a few hours of the listing being posted. The Canucks consider multiple offers on their home and decide to accept the Koala’s offer as it offers the highest price and is a “firm” offer without any bank financing, home inspection or other conditions. The sale is set to close on May 10, 2017. Assuming their bungalow is sold, the Canucks purchase a condominium in Richmond Hill, Ont. for $455,000 with a closing date of May 10, 2017. They plan to use the purchase proceeds from the sale of their bungalow
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to supplement their retirement funds and ensure that they continue living mortgage-free. On April 20, the Ontario government announces sweeping changes to curb the hot housing market, which affect the Koalas and, therefore, the Canucks. Because the Koalas are Australian citizens without Canadian citizenship or permanent resident cards, they are considered to be “non-residents” and their purchase of real property in Ontario is now subject to the NonResident Speculation Tax (NRST), which is calculated at 15 percent of the purchase price and is payable to the Ministry of Finance in advance of the closing date. This amounts to an additional cost to the Koalas of $127,500 to purchase a home based on rules that were not in force at the time they contemplated purchasing the home and negotiated their mortgage. The bank will not increase the mortgage. The Koalas can no longer afford the home. However, they have signed a firm and binding contract. The Koalas inform the Canucks they can no longer afford to close and that they want to terminate the Agreement. After getting advice, the Canucks purchased their new home relying upon the Koalas ability to close and, refuse to terminate the agreement and arrange to re-list their home. However, the market has slowed and prices have dropped. They realize that they must apply for a mortgage to purchase their new home and then carry the costs of two properties until their bungalow is sold. The Canucks inform the Koalas that if the Canucks are unable to sell and close on their home before May 10, 2017 for at least $850,000, the Canucks will sue the Koalas to recover the losses incurred by the Koala’s failure to close. Those costs will include any shortfall in the purchase proceeds and all additional carrying costs (including utilities, property taxes and hydro) that they would not have to pay if the Koalas completed the purchase. For example, if the Canucks now sell for only $795,000, the
Koalas would be sued for the difference of $55,000, plus carrying costs and legal costs. The Canucks face the additional stress of trying to secure a mortgage from a financial institution when, as retirees, they lack sufficient regular income and do not have a firm offer for the sale of the bungalow. If they are not able to arrange a bridge mortgage or other financing, or negotiate an extension of closing for the condominium, they face the possibility of breaching their obligation to purchase the condominium being sued themselves.
How could the sellers have protected themselves?
Although it is difficult or impossible to prepare for sudden changes in legislation, there are some measures that are helpful to protect the seller in any real estate transaction. For example, the Canucks could have required a larger deposit from the Koalas. Generally, sellers request a deposit of at least 5 percent of the purchase price, which, in this case, would have been $42,500. The agreement of purchase and sale would include a provision that would allow the seller to keep the deposit if the purchaser “walks away” from the purchase. The deposit not only confirms the purchaser’s financial commitment to the purchase, but can be applied immediately to the seller’s carrying costs and any shortfall in sale proceeds resulting from the purchaser’s refusal to close. A forfeited deposit can provide the seller with compensation without having to go to court and incur the related stress and legal costs. Additionally, even if the seller is going to use closing proceeds to purchase a new home, it is advisable to prequalify for a mortgage in case the sale is delayed or fails to close. It is always easier to negotiate terms when your back is not against the wall.
rate. Previously, potential homebuyers were not subject to the “stress test,” whereby financial institutions pre-qualify homebuyers at the posted rate typically between (2-3 percent). Presently, homebuyers have to qualify at the Bank of Canada posted five-year interest rate of 4.64 percent (almost two percentage points higher), therefore reducing their spending power in the purchase of real property. If the Koalas were forced to qualify at a higher rate, they may not have agreed to purchase such an expensive home, instead being more prudent with their savings by possibly investing in a condominium or townhome purchase at a lower price. Although the non-resident tax was not in place when the deal was made, it was not a completely unforeseen circumstance. A similar provision had been imposed in British Columbia and significant pressure was being put on the Ontario government to impose similar measures. Purchasing a house is a significant financial commitment. It is advisable to research any market before making an investment. In the circumstances, it would have been prudent for the Koalas, as non-residents, to have delayed purchasing a home until their residency status in Canada had been
sorted out, thereby eliminating the risk of being subject to a requirement to pay an additional tax. As of October 2017, the Ontario government has announced that it is considering further measures, including, possibly, a vacant home tax on all properties in the City of Toronto, strictly aimed at forcing homeowners to either rent properties to prospective residents, or sell them to local residents in an effort to end speculators from driving up the real estate prices in the market. The demand for and prices of new build and re-sale condominiums have soared in contrast to semi-detached and detached homes, partially due to the interest rate increases by the Bank of Canada in July and October 2017 respectively. It is imperative that prospective buyers and sellers understand the ongoing trends in the real estate market and seek professional advice from a realtor, mortgage broker, and lawyer to mitigate their risks when making decisions in the real estate market. Rinus Pais is a real estate lawyer at Lawrences Lawyers, Brampton, Ont. Comment at www.woodindustry.ca.
What could the purchasers have done differently?
The Koalas could have pre-qualified for a mortgage at a higher interest www.woodindustry.ca
WOOD INDUSTRY 15
PRAIRIE BARNWOOD morden, manitoba
sR e n b r o r a n B Custom Furniture as
ooden antiques are not always hidden away in upscale shops and grandparents’ homes. Sometimes they hide in plain sight, littering rural roads across Canada and the U.S., those once-functional buildings that helped settlers put down stakes across the continent. For antique restorer Blayne Wyton, the dilapidated barns he saw driving with his young family across Wisconsin and Illinois inspired him to change careers and start a new kind of restoration business. “It was August 2008 that I came up with the idea of Prairie Barnwood,” says Wyton, referring to his current company based in Morden, Man. The company knocks downs disused barns, mostly in Ontario, and reclaims the wood from walls, floors and beams to produce made-to-order furniture through its showroom and website. Wyton grew up in Edmonton, Alta., and worked in one of the family businesses. “My grandfather owned a few different businesses. The one that I remember working in when I was around 12 years old in the evenings and weekends was manufacturing nylon tow ropes for the oil fields. “Later, I got into refinishing antiques as well as working at the rope factory.” He also met his Manitoba-born wife in 1999 and was soon off to an auction in Winnipeg to purchases antiques for his fledgling restoration business. “The furniture was less money here than it was in Edmonton. I started buying furniture and hauling it to Edmonton and refinishing it.” The couple moved to Manitoba in 2001 and Wyton worked for a Honda
16 WOOD INDUSTRY
dealership for a year selling cars before starting Windsor Furniture, a furniture refinishing and restoration company. “I had that company for 12 years, then I got into custom kitchens for about 3 years.” During the fateful U.S. family vacation, Wyton says “they were all sleeping in the back of the van and I saw these big old beautiful barns. This thought kind of came into my mind to rip down a barn, so as we are driving I’m kind of thinking ‘what I could do with it.’” With a history of furniture restoration and admiration the Morris and Stickley style of furniture, Wyton was on his way with Prairie Barnwood. “In restoring antiques, I was able to reconstruct furniture the way it was done a hundred years ago.” While the family was still on its two-week vacation Wyton put an ad in the local paper back in Winkler, Man. “We ripped down our first barn in October of 2008 in Rosengarden, about 8 miles south of Winkler.” With the one employee at the time, the two took about a month pull down the entire barn, each day taking down a bit more. “We did it fairly crudely because we really didn’t know how to do it and didn’t know what to keep. We came back to our shop here in Morden and one night I built a Mission style hall table. “My landlord at the time said ‘that is beautiful, you should build a dining table.’ Then over the next couple of nights I built a dining table. It is known as our timber frame table now on our website. I built it with all of the original joinery — the mortise and tenon joints. Kind of like a post and
NOVEMBER/DECEMBER 2017
beam barn in a sense.” Prairie Barnwood took a couple of years to get going, but it started to gain some traction as the business was still refinishing furniture and building some kitchens. “It was 2010 that I decided to take the jump and just do barn wood. I focused with it online and later attended our first trade show at the Fall Home Show in Edmonton in 2012.” The company had three employees at that time and worked steadily for a month to have furniture to sell at the show. “I left for that trade show on a Wednesday with a truck and trailer full of furniture and $500 in the bank. I paid $3,500 for this booth. I remember driving 14 hours to Edmonton thinking ‘this is it. It’s all on the line.’ We went to that show and I think that we did a month’s worth of sales in one weekend.” The business continued to do shows for a couple of more years, but now has more of an online marketing focus and an Edmonton operation run by Wyton’s sister. “She is helping me now with sales in Edmonton and customer relations.” With a growing business, the company has just moved into a new 5,000 square foot shop with a showroom at the front and 16-foot ceilings. “There are eight of us who work here full time,” says Wyton. “We were in the previous spot for nine years and it was a larger building — 6,000 square feet — but was an old chicken barn.” Although the chicken barn was converted it into a workshop, the com-
Rough barn wood is unpredictable and requires an educated eye that can select the correct boards for any given furniture project. Some salvaged wood has even come from the Toronto harbour, providing a backstory for one new owner of plank flooring that purchased it from Prairie Barnwood. Staff at the company are more than just employees — they are artisans, according to Blayne Wyton, owner and founder.
pany began to find it difficult to operate because of the eight-foot ceilings. “There were posts every ten feet,” says Wyton, “the doors on it were the old swinging barn doors and in the winter, ice would jam them up.” Moving to a modern building has made life for the company much more civilized and made completing projects more efficient. “We can bring forklifts in and it is warm and bright.” One recent project completion belongs to a customer in Winnipeg who just purchased a house and wanted it furnished by Prairie Barnwood. “We have been able to redo the whole house, furnish it and then put it up for sale. It will be the first Prairie Barnwood show home.” Wyton no longer dismantles the barns personally, having found skilled Mennonite crews that complete the work. Often the main support beams of the structure in Ontario are 12 x 12. “We slice them up into boards and then we put them through a moulder. The wide planks from the beams are maple, oak or ash.” Some reclaimed pine and hemlock beams have come out of the harbour in Toronto, Ont.,
and had kind of a green hue to the wood, says Wyton. “There are a few customers who have a Toronto harbour floor now.” Staff at Prairie Barnwood are artisans more than they are just employees, according to Wyton. “They have to be very patient with me,” he laughs. “They also have to be very patient with the wood. Sometimes you have to pick through a lot of wood to find the right board to build a table out of. It takes somebody with a certain art form to build these pieces, including sanding them. “When you are sanding you are looking at the board and you are looking to highlight and bring out the different features of the wood. It’s not like sanding a new kitchen cabinet where you make it smooth and send it off to finishing. You are trying to look at the textures of the wood and the knot holes. Kind of create a story as you are sanding it. “When people start here I will say to them ‘think of a story.’ If this is a bench, maybe somebody sat on it with a cane outside during the 1900s and he knocked the cane at it every day. So
there is a little bit of an indent where the cane touched the bench.” Although each piece is built specifically for the customer and is primarily sold online, the company’s business model harkens back to the catalog shopping practices of a century ago. “Timothy Eaton’s (a Canadian department store chain) in the early 1900s would send salespeople out door to door and they had the Eaton’s catalogue. They would sell barns, schools, community centres and houses. There were also all kinds of furniture in the catalogue. It’s funny how I have kind of modeled that in Prairie Barnwood — because each piece is built for you, what I find is best is if we come right to your home. We sit down at your kitchen table and we bring samples and pictures. “We sit in your home and measure the piece out. We pick out the kind of wood, the colour, the texture and the size. then we handcraft it for you. The online presence kind of gives people a chance to view what we can do, as well as research as to whether they want a rustic looking piece of furniture from like a Wayfair or whether they want a handcrafted piece www.woodindustry.ca
WOOD INDUSTRY 17
Prairie Barnwood owner and founder Blayne Wyton. He believes his furniture has a story to tell, one that consumers appreciate when looking for something genuinely rustic. A third-generation entrepreneur, Wyton can’t imagine doing anything else but operate his own business.
of barn wood furniture from us.” Typical customers look on the website, call into the office and make an appointment. “I have flown to Calgary to meet with customers in their homes,” says Wyton. “I will fly there for the day and set up three or four appointments and go and meet people in their homes.” The company has even flown a representative to Churchill, Man., to outfit tundra buggies that go out onto the ice for tourists to look at the polar bears. “It’s more a one on one relationship trying to understand what you as the customer want,” says Wyton, “then we are able to create it. “The furthest we have shipped a piece was a dining table to a customer
in Vancouver. He got it and put it in a sea container and shipped it to Norway. And one of the New Jersey Devils has a dining table from us.” A challenge working with reclaimed wood is the safety issue. “If you don’t de-nail the boards properly you can catch a nail in the saw and that becomes a huge hazard to the employee.” So the company is proactive and laser-checks the wood before it sees its first saw, not just for nails but also barbed wire and the occasional bullet. “They can also get sucked into a dust collector,” he adds. “It is a huge explosion hazard.” Preparing the wood for processing also include kiln drying, a concept that was foreign to Wyton at the outset of Prairie Barnwood. When he ripped down his first barn and brought the wood in, he thought the wood was dry and good to go. “Our first year we built ten or twelve projects for customers. They called me
back the second year and said our doors are warping and twisting. I didn’t know the wood had to be kiln dried.” But a problem persisted through the second year of operations because he didn’t know that the barn wood had to be dried to the correct temperature level. “Our third year we rebuilt everything from our second year. Even though we kiln dried it to get rid of the moisture, we didn’t dry it hot enough to get rid of the bugs. It took three or four years just to learn how to work with 100-year-old barn board.” Wyton feels that the entrepreneurial gene is both a blessing and a curse, but is happy his 89-year-old grandfather is around to see his success. “I think that is pretty exciting for him to see the seeds that he had sown years ago come to fruition,” he says. And although it has different owners now, “his rope company is still going in Edmonton.”
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18 WOOD INDUSTRY
NOVEMBER/DECEMBER 2017
Digital WOOD Production is not magic
Software success N
ew software can transform a business, increase productivity and improve the bottom line, all the while making the work of the team members easier — when it’s done right, of course. We all must come to grips and accept that woodworking is now a mix of computer science and Alain Albert artistry which requires us to learn the software part of it. In order to successfully implement new software into your manufacturing process, you have to be diligent about the way you do it. The last thing you want is to spend a bunch of money, effort and time on implementing a software that won’t yield any improvements. Here’s a few rules of thumb on how to proceed:
1 — Find a champion
As a general rule, nothing ever gets done unless there is a “champion” that takes up the cause and sees it to fruition. I’ve seen expensive equipment gathering dust in shops not because they won’t do the job, but because no-one on the floor believed that it would work. The same applies to lean manufacturing or other initiatives. No Champion = No Success. Ideally, the champion should be someone who will be directly involved in the day-to-day use of the software. They have to be passionate about making it work as it will also be their task to convince the other team members of the value of the project.
The more people in your organization that want this project to succeed, the more they see it as the solution to their daily pains, the better the chance for a successful outcome. When the whole team is on-board and that everyone buys in, you can’t go wrong.
2 — Make a plan
This one is on par with the first point. If you have a champion and you make a plan, your problems are almost completely solved. You just need to add a little water and some sunshine before you can harvest all the benefits. Get everyone involved in making the plan. An edict is not a plan and a plan is not a recipe. You won’t contribute to the success of the project if you force people to do anything and once you have a plan, it will change. My view is that you always need to make a plan but once you have a plan, you can discard it because it will change. The important part is the planning process as it forces you to think strategically about your project. Your plan can include many aspects that are important to the implementation of your project. It will answer questions like: • What will the discovery process look like? • How will we evaluate potential software packages? • How do we deal with the overlap while the new software is being implemented? • Who needs to be trained on the new software and when will the training take place? • When are the start dates and end dates for various phases of the project? • What is the impact of the project on our suppliers or our customers?
3 — Analyze your needs and your business processes carefully
Most often, entrepreneurs will purchase a piece of software in the hope that it will fix an inefficient or inexact process and it ends up creating a brandnew problem. It doesn’t matter if we’re talking about a new CAD/CAM software, an ERP solution or a new email server; the first thing that you need to do is to really understand the problem if you’re ever going to be able to solve it. Start by taking a good long hard look at your current process and try to map out where the chaos occurs, where the missing information happens and where the ball gets dropped most often. You should be able to draw a visual map of your process with useful data like materials, labour, information, time and money. This is the part where you might benefit most from outside help. A consultant that has an outside perspective and that has seen many other instances of this kind of implementation (good and bad) is going to be able to offer some good guidance to your team. Remember that the whole point of the new software is to make your life easier, so a deep analysis of your current process will give you a good understanding of the potential value of the project before you start spending a lot of money.
4 — Apply enough resources to the effort
Very often, changes must take place in the middle of a crisis. The shop is working over capacity, quality issues are mounting, not enough qualified labour can be found. There are many reasons why implementing a new software into the process makes sense. Ultimately, it will solve the issues but the software needs to be working properly and adopted by all the team members first. In these trying times, management needs to devote enough resources to the project and this is very hard. Just when you need to focus all efforts on unclogging the production jam, you will have to set aside some time and money for implementing a new software solution. Your team members are feeling the stress and the pressure too, and you need to make www.woodindustry.ca
WOOD INDUSTRY 19
them understand that you’re all taking a step back only to be able to run faster later on. Make sure they have all the hardware, time and training they need to get the job done right.
5 — Select your vendor carefully
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Too often, I visit with manufacturers that purchased software for their business and they talk to me about what the software doesn’t do. The same way that you might use different software if you are writing a document or if you want to compute a series of columns of numbers, you will need different software to cut cabinets, make one-piece MDF doors or carve free-flowing shapes on a CNC router. Base your choice of vendor on a proven track record, make sure that they are known for their expertise in the specific sector of industry and gauge their involvement with their community of users. I’ve seen some wood manufacturers be sold expensive ERP software by companies who specialize in the wholesale distribution sector — not at all the same thing. Take some time to read the forums and support sites related to the software. You will be amazed what you can find online with only a minimal amount of digging. Before purchasing a popular website app that had rave reviews and lots of stars, I checked out the forums and found out that no one from the app side had been answering calls for the last three months. It turns out that even though the app was popular and well liked, the creator decided to abandon it.
6 — Don’t underestimate the importance of training
Once you have the new software in place, you can probably get by with the instructions you learned during the installation process. Don’t be fooled into thinking that now that you’ve paid for it and it’s working, there is nothing more to learn. If you’re going to gain the full benefits of your new investment, you better be prepared to become power users on that software. Make sure to train as many of your team members as you can. That way you’re not at the mercy of the one and only employee who knows how to operate the software. What’s even better is that there are grants available from the federal government in Canada, together with different provinces to promote on-the-job training. The province of Ontario offers up to $10,000 per worker per year towards the cost of training. See the link here: http://www.tcu.gov.on.ca/eng/eopg/programs/ cojg.html. Look for similar programs in your province. Implementing a new software system in your organization can be a windfall for your business. You can automate manual processes, improve the quality of the work, reduce lead times, increase throughput and boost your bottom line. A good software integration will simplify the work and reduce the stress levels at your workplace. All this and more will happen if the project is done correctly. The opposite is also true if you don’t take the time to do it right. Professionally trained in architecture, Alain Albert has worked in wood as an entrepreneur, in production management, in design and as a digital manufacturing consultant. Contact: aalbert@wimediainc.ca.
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NOVEMBER/DECEMBER 2017
ALWAYS HARD AT WORK BUILDING BETTER WORKSHOPS
Season’s Greetings and Best Wishes for a Happy New Year
from all of us at CNC Automation
www.cncautomation.com sales@cncautomation.com ■ 1-800-421-5955
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Hoping Santa's sleigh has some new woodworking machinery in there for you !
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Wood Industry 2017 reader survey
Social media gets an F T
hank you to all of those who took part in our 2017 Reader Survey. We loaded up on social media questions to gauge your level of participation on these digital platforms. Judging from the feedback, responses showed a large degree of ambivalence. While most of you do have a social media account for your businesses, a whopping 37 percent do not. For those that do partake, Facebook tops the list at 83 percent, followed by LinkedIn, Instagram and Twitter. We like that you value original content, our specialty, to the tune of 94 percent. Only 32 percent agree that so-
cial media actually delivers that. Perhaps one of our most provocative questions dealt with whistleblowers, that is, “How often have you had trouble with employees posting negative material about your company on social media?” While over 75 percent said this was never an issue, there were enough that indicated “rarely” and “occasionally,” that it might be wise to search on the web for company “mentions” now and then. So is there a sound business case for you to be active on social media? To our question, “When you look at engagement metrics, are you confident that the audience
Does social media generate calls to your business?
Have unhappy customers trashed your company online?
100%
100%
75%
75%
50%
50%
25%
25%
0%
Never
Rarely
Occasionally
Frequently
Very Frequently
0%
Yes
No
Do customers give you positive reviews or testimonials online?
Have employees posted negative material about your company?
100%
100%
75%
75%
50%
50%
25%
25%
0%
Yes, generally positive
No, generally not positive
It’s about fifty-fifty
No, we don’t request reviews
INDUSTRY NOVEMBER/DECEMBER NOVEMBER/DECEMBER2017 2017 22 WOOD INDUSTRY
0%
Never
Rarely
Occasionally
Frequently
Very Frequently
THANKS TO SPONSORS! comprises your customer base?”, two-thirds said “No.” Of course, it may depend on which wood industry segment you live in, but most of you aren’t seeing value in this digital arena. Outside of social media, one of the biggest issues of concern is still skilled workers, just like in our previous survey two years ago. Over 71 percent of you are experiencing difficulty finding the right people. And to the question, “Do you trust Wood Industry magazine?”, we are heartened by the 83 percent positive response. We will continue working hard to deserve that trust.
Is your company having a hard time finding skilled workers? 100%
75%
50%
25%
0%
Yes
No
Has social media helped you recruit new employees?
MANUFACTURERS’ ROUNDTABLE 2017
100%
75%
W H E R E I N D U S T RY L E A D E R S TA L K E D A N D L I S T E N E D —
50%
25%
0%
Never
Rarely
Occasionally
Frequently
Very Frequently
IF YOU WEREN’T THERE, YOU DON’T KNOW W H AT H A P P E N E D ! www.woodindustry.ca www.woodindustry.ca
INDUSTRY 23 WOODINDUSTRY WOOD
WOOD
New Products Clear polyurethane topcoat spindles in Therwood machines. The provides good build, levelling kit includes a ½ in. and ¾ in. Hydro-
The Sirca 6OPU77S15G topcoat from Katilac Coatings is a general purpose clear polyurethane that is characterized by a good build and levelling. Specifications include: 47 percent weight solids and 44 percent volume solids; 20 in. viscosity Zahn 4 at 20oC; 12 hours to stack; 10, 30, 40, 50 and 80 degree sheens; 50 percent catalyzation by weight with 6CTH3; and, over 2-hour pot life if reduced with SOL-9054 at 20 percent. www.katilaccoatings.com
Grip holders speed up tool changes
CNC Automation has announced the Hydrogrip Deluxe Kit with case, suitable for ISO30
Grip G2T holder, as well as a 3/8 in. and ¼ in. reduction sleeve. The holders are easy to use and make tool changes quick, the company says. They are said to provide precision over the conventional collet type holders by minimizing tool run out, eliminating most of the tool vibrations and deflections that affect the quality of the cut and tool life. www.cncautomation.com
Wide belt sander with cutterblock planing head
The finish 1352 modular and 1353 modular wide belt sanders from Felder are offered as either as a 2 or 3 belt machine. The free aggregate configuration option enables the optimal adaption to requirements that ensures maximum efficiency and maximum time saving, the company says. A cutterblock planer head with 1350 mm processing width positioned
on the machine infeed side is available. The feeder table includes: electrical height control of the feed table with fine-adjustment control from the control panel; inverter-controlled variable feed speed from 2.8 to 20 m/ min adjustable from the control panel; and, hand guard and over-thickness protection for the workpiece. www.felder-group.com
Full face respirator hoods provide comfort, safety
The vision 2000 full face respirator hood from Sata protects the face, hair and neck from over spray. It is also suitable for persons wearing glasses and persons with short beards or mustaches. Fresh air is supplied steadily through a silencer to the hood without drafts. The air supply has a variable adjustment according to the user’s requirements, while a shut-off system prevents airflow from being completely shut off. The compact activated charcoal filter is worn on the belt in a protective cage and removes oil vapor and gases. Protection is rated up to 100 times the MWC value (maximum workplace concentration). www.sata.com
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24 WOOD INDUSTRY
NOVEMBER/DECEMBER 2017
SAMES KREMLIN Inc.
North America Headquarters - 45001 5 Mile Rd, Plymouth, MI 48170 Canada Branch - 931 Progress Ave, Unit 7, Scarborough, ON M1G 3V5
Automated loader system for high volume gluing
start at 44 in. and run to 74 in. wide. A heavy duty welded steel frame allows the machine to run continuously, the company says. The glue spreader uses an 8.75 in. coating roll. www.blackbros.com
Entry-level spray booth features four spray guns
The Alyx from Doucet is an automated loader system for high volume gluing applications, panel preparation and loading and unloading of the clamp carrier. The system is divided into several sections, including the MFE-150 lateral chain feeder that receives the slats and guides each piece through the glue application device, as well as a glue applicator with measuring system. The width measuring device calculates the width of the slats moving along it in order to detect the last slat that will not receive glue, therefore creating a dry joint in the panel. www.doucetinc.com
Roll coating and laminating equipment
Black Bros. has announced the model 22D-875 roll coater. Standard sizes
Stiles Machinery has introduced the Makor Start-One M spray booth with intelligent controls and fully-automated trolley systems. Featuring four intelligent spray guns connected to an oscillating arm for even coating
form bonds within the wood that increases flexibility, increases productivity and reduces coil memory, the company says. Thick edgebanding offers high impact resistance, making it suitable for high traffic areas, it adds. www.edgemate.com
Cabinet hardware includes hinges and drawer systems applications, the unit has a patent pending design for consistent, high quality coating applications, the company says. Workpieces are transported through the spray machine using customer-provided product carrier trays on two parallel chains. www.stilesmachinery.com
Thick veneer edging for high traffic areas
Edgemate produces a line of thick veneer edgebanding products available in 1.0 to 3.0 mm thicknesses. Thick edgebanding is constructed by laminating multiple layers of the real wood veneers together using formaldehyde free Polyurethane (PUR) adhesive. The PUR adhesive between each layer
Hinges, drawer systems and drawer slides from Saca have been announced. Hinges include soft-closing, glass, angle and compact series. Drawer systems and slides include twin wall board drawer typesv, as well as soft-closing concealed full extension and single extension slides. www.sacahardware.com
MORE Versatile Precise Solid 888.777.2729 (Headquarters) 800.252.6355 ( West Coast) Exlusive North American Distributer
www.csaw.com
Space Saving Vertical Cutting
Versatile: Multiple Models & Applications Precise: Accurrate to within 0.004� Solid: Swiss Made Equals Quality www.woodindustry.ca
WOOD INDUSTRY 25
Homecoming for Canada’s wood industry
Good vibes on WMS show floor V
isitors from nine provinces and two territories, as well as 34 of the U.S. states, attended the threeday Woodworking Machinery & Supply Expo (WMS) held this fall at the International Centre in Mississauga, Ont. According to show organizer Woodworking Network of Cedar Rapids, Iowa, the WMS 2017 show had attendance up 12 percent over the last edition in 2015. Preliminary figures show nearly 4,400 attendees visited the exhibit floor, with an additional 1,440 exhibitor staff participating. Exhibitors were happy see that traffic was steady right up to the closing of the show on Saturday, selling
INDUSTRY NOVEMBER/DECEMBER NOVEMBER/DECEMBER2017 2017 26 WOOD INDUSTRY
equipment on the floor and taking orders for more. Some were able to stage the Canadian launch of products in conjunction with WMS 2017, including the Italian coatings line from Sirca at the Katilac Coatings booth and the Format 4 finish 1353 wide belt planer sander at the Felder Group booth. More than 270 companies and brands were represented in exhibitor displays, according to show management, including 50 first-time exhibitors. The Italian Trade Commission based in Toronto, Ont., and Acimall, the Italian woodworking machine manu-
facturers association, in partnership with Wood Industry magazine, also announced two Canadian winners for a trip to Xylexpo 2018. Xylexpo, held in Milan, Italy, on May 8 to 12, 2018, is the 26th biennial world exhibition for woodworking technology and components for the furniture industry and marks the 50th anniversary of the event. The random draw to choose the winners was held at WMS 2017 at the Wood Industry booth, with the help of Acimall director Dario Corbetta (photo upper right). Corbetta also had a chance to invite Canadian companies to Xylexpo during a luncheon held at the show. The winners chosen were Ryan Spencer of Leedwood Ltd. in Brantford, Ont., and Erika Ekkert of Delta Door & Panel in Delta, B.C. — congratulations! Wood industry distribution veterans Andrew Legault of CNC Automation, Peter Feindel of Taurus Craco and Pierre Gauvin of Continental Machinery explained how
worthwhile making the trip to the Italian show can be for Canadian shop owners, and how much it has benefitted their businesses over the years. Wood Industry’s Manufacturers’ Roundtable, held at a wooded conference centre the last morning of the show, was a uniquely private opportunity for manufacturers to discuss their victories and challenges. Thanks to the participants for sharing thoughtful input, and thanks to good-citizen sponsors White Oak Custom Woodworking, Weima, Taurus Craco, Super Thin Saws, Precision Drive Systems, Grass Canada, Axalta and Akhurst for making the Roundtable possible. Dates for the next two editions of the WMS have also been announced. WMS 2019 will be held Oct. 31-Nov. 2, 2019 and WMS 2021 will run Oct. 28-30, 2021. Both shows will be staged at the International Centre, Halls 1 and 2. For more information, visit www.wmscanada.ca
www.woodindustry.ca www.woodindustry.ca
INDUSTRY 27 WOODINDUSTRY WOOD
Bullets WOOD Canadian municipalities issued $7.9 billion worth of building permits in September, up 3.8 percent from the previous month and 6.6 percent year-over-year. —Statistics Canada After increasing 0.4 percent in July, Canadian monthly retail sales declined 0.3 percent in August to $48.9 billion. However, there was an increase of 6.2 percent over August of last year. —Statistics Canada The standalone monthly SAAR (seasonally adjusted annual rates) of housing starts for all areas in Canada was 222,771 units in October, up from 219,293 units in September, according to Canada Mortgage and Housing Corporation. This compares to 195,702 housing starts in October 2016 or a rise of 13.8 percent year-over-year. —CMHC Baby boomers are finding their percentage of U.S. home buyers falling as millennials continue to take the top spot, making up 34 percent of home buyers. The National Association of Home Builders reports that only 10 percent of millennial buyers don’t consider home buying in their future plans. —NAHB The year-over-year increase in full-time work in Canada is now nearly 300,000, whereas part-time positions have risen by only one-tenth that amount, 31,000. —Statistics Canada Backlogs at U.S. architecture firms remained essentially unchanged from the second quarter to the third quarter, at 5.8 months, on average, according to the American Institute of Architects. In addition, architectural services employment has added more than 8,000 positions in the last 12 months. —AIA According to the latest Eurostat data, EU (European Union) wood furniture consumption increased 3 percent to €36.7 billion in 2016. —Fordaq In September, new house prices in Canada rose 3.8 percent year-over-year for a third consecutive month. Vancouver recorded a 12-month price increase of 8.3 percent, the largest gain for this metropolitan area since July 2007. —Statistics Canada
28 WOOD INDUSTRY
NOVEMBER/DECEMBER 2017
The change in total employment in Canada during October was the addition of 35,000 jobs, according to Statistics Canada. The latest figure of 35,000 has helped raise the monthly average so far this year to 26,000, an increase of more than 40 percent compared with 2016’s January through October average of 19,000. —Statistics Canada Kitchen cabinet demand in the U.S. is forecast to grow 5.9 percent per year to $17.1 billion US in 2021. Tall kitchen cabinets are projected to reach a value of $3.2 billion US in 2021 on annual advances of 7.7 percent. —Freedonia China’s log imports in the first half of 2017 totalled 25.89 million cubic metres valued at $4.535 billion US, a year-on-year increase of 8.3 percent in volume and 14 percent in value. —Lesprom Canada’s lumber production rose 6.8 percent from July to 5,553.0 thousand cubic metres of lumber in August. —Statistics Canada In the first half of 2017, China’s sawnwood imports totalled 18.12 million cubic metres valued at $4.75 billion US, a year-on-year increase of 16 percent in volume and 24 percent in value. —Lesprom In 2016, the European Union recycled 47 percent of all beverage cartons placed on the market, or some 430,000 tonnes, according to the latest industry figures gathered by the Alliance for Beverage Cartons and the Environment. —ACE U.S. hardwood flooring imports declined in August to $4.0 million US, but year-to-date imports are up 19 percent from August 2016. —Fordaq U.S. demand for plastic doors is forecast to increase 6.0 percent per year to $2.9 billion US in 2021, remaining the smallest but fastest growing material segment. —Freedonia Canadian housing starts rose to 223,000 units in October (on a seasonally adjusted annualized basis), up from 219,000 units in September. The 6-month moving average increased to 217,000 (previously 215,000). —TD Economics
Events WOOD
WOOD
Advertisers
Nov. 29 – Dec. 1 The Buildings Show Toronto, Ont. www.thebuildingsshow.com
Akhurst Machinery Ltd. www.akhurst.com...............................8
Grass Canada www.grasscanada.com ...................31
Axalta Coating Systems www.axaltawoodcoatings.com........2
Hoffman www.hoffman-usa.com ...................15
Jan. 9 – 11, 2018 KBIS Orlando, Fla. www.kbis.com
AXYZ International www.axyz.com...................................18
Osborne Wood Products, Inc. www.osborneposts.com ...................20
Casadei-Busellato www.casadei-busellato.com ..........12
Safety Speed Manufacturing www.safetyspeed.com .....................20
CNC Automation www.cncautomation.com................21
Salice www.salicecanada.com ..................32
Colonial Saw www.csaw.com..................................25
Sames Kremlin www.sames-kremlin.com ...............24
Epilog Laser www.epiloglaser.com/ wood-industry ..................................13
ShopBot www.shopbottools.com ...................14
Jan. 12 – 15 Domotex Hanover, Germany www.domotex.de Jan. 15 – 21 IMM Cologne, Germany www.imm-cologne.com Jan. 29 – Feb. 1 The International Surface Event Las Vegas, Nev. www.tisewest.com
Felder Group Canada www.felder-group.ca .......................11
Weima www.weimaamerica.com ...............10
Festool www.festoolcanada.com ...................5
Jan. 18 – 21 Interior Design Show Toronto, Ont. www.interiordesignshow.com Feb. 6 – 8 ZOW Bad Salzuflen, Germany www.zow.de
March 9 – 18 National Home Show Toronto, Ont. www.nationalhomeshow.com
WM S GEAR
Reach the
-UP
The business side
TOP BUYERS IN CANADA
Belanger steadily hones efficiency Guide to custom-product internet sales Business at risk from new rules
Cover comp.indd
March 12 – 14 Dubai Woodshow Dubai, UAE www.dubaiwoodshow.com
SEPTEMBER/ OCTOBER 2017
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of woodworking
TECHNOLOGY inspires DESIG N New creative pathways disrupt everything — from concepts to sales
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March 8 – 12, 2018 Indiawood Bangalore, India www.indiawood.com
1
S U C FO N 7 IG 201 ES D 2017-09-20 1:17 PM
Stephen King
905-703-6597 • sking@wimediainc.ca Advertising info at www.woodindustry.ca
www.woodindustry.ca
WOOD INDUSTRY 29
WOOD
By the numbers Residen1al construc1on investment in millions of dollars 35,000 30,000 35,000 35,000 25,000 30,000 30,000 20,000 25,000 25,000 15,000 20,000 20,000 10,000 15,000 15,000 5,000 10,000 10,000 0 Q3 5,000 2012 5,000 0 Q3 0 2012 Q3
Residential construction investment In millions of dollars Residen1al Residen1al c construc1on onstruc1on iinvestment nvestment iin n m millions illions o of f d dollars ollars Total residen1al investment
Total residential Total residen1al Total residen1al investment investment investment Renova1ons
Renovations Renova1ons Renova1ons
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q4 Q4 2012 2012
Q1 Q1 2013 2013
Q2 Q2 2013 2013
Q3 Q3 2013 2013
Q4 Q4 2013 2013
Q1 Q1 2014 2014
Q2 Q2 2014 2014
Q3 Q3 2014 2014
Q4 Q4 2014 2014
Q1 Q1 2015 2015
Q2 Q2 2015 2015
Q3 Q3 2015 2015
Q4 Q4 2015 2015
Q1 Q1 2016 2016
Q2 Q2 2016 2016
Q3 Q3 2016 2016
Q4 Q4 2016 2016
Q1 Q1 2017 2017
Q2 Q2 2017 2017
Canadian building uilding ppermits ermits in in m millions illions oof f ddollars ollars Canadian building permitsCanadian In millions of b dollars 60,000 2012
60,000 50,000 50,000 40,000 40,000 30,000 30,000 20,000 20,000 10,000 10,000 0 0
Residen;al Residen;al
Residential building permits
Commercial Commercial Commercial building permits
Institutional and governmental Ins;tu;onal Ins;tu;onal building and permits
and governmental governmental
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017
New value housing c n millions of dollars +,-#./01234#5/3167058/3#9:;0,# New housing construction Inonstruc8on millions of dollarsvalue i!"#$!%%!&"'#&(#)&%%*+'# 16,000 16,000 14,000 14,000 12,000 12,000 10,000 10,000 8,000 8,000 6,000 6,000 4,000 4,000 60 2,000 2,000 0
50
0
New d +,-#<-,;;2341=# New dwellings, wellings, all ypes :;;#6>?,1# all ttypes
New dwellings, all types
Singles
@234;,1# Singles
Single
Apartments Row (1) A/-#B%C# Row (1)
Carpenter construc6on union wage rates in dollars, including selected pay supplements
D?:76E,361# Apartments
Double
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Saint John, N.B.
!"# !&# !'# !%# !"# !&# !'# !%# !"# !&# !'# !%# !"# !&# !'# !%# !"# !&# !'# !%# !"# Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 "$%"# "$%(# 2015 "$%(# 2015 "$%(# 2016 "$%)# 2016 "$%)# 2016 "$%)# 2016 "$%)# 2017 "$%*# 2017 "$%*# 2012 "$%"# 2012 "$%"# 2012 "$%&# 2013 "$%&# 2013 "$%&# 2013 "$%&# 2013 "$%'# 2014 "$%'# 2014 "$%'# 2014 "$%'# 2014 "$%(# 2015 2015
40 Carpenter construction union hourly wage rates In dollars, including selected pay supplements
60
Row Apartments
Carpenter construc6on union wage rates in dollars, including selected pay supplements
30
Québec, Que. Toronto, Ont. Toronto, Ont. Regina, Sask. Regina, Sask.
Saint John, N.B.
20 50
Edmonton, Alta. Edmonton, Alta.
Québec, Que.
0
Toronto, Ont.
Vancouver, B.C. Quebec, Que.
40
30
Saint John, N.B.
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017
Regina, Sask. INDUSTRY SEPTEMBER/OCTOBER INDUSTRY NOVEMBER/DECEMBER2017 2017 46 WOOD 30 20
Edmonton, Alta.
Source: Statistics Canada
Vancouver, B.C.
10
NOVA PRO SCALA DRAWER SYSTEM
The new generation. Inspiration in the right angle. Simple. Clear. Timeless. More glass. More height. More space. Alongside the familiar Crystal and railing options, the Nova Pro Scala range also includes a high glass version and a drawer side in height 186 mm.
Nova Pro Scala incorporates the best of Nova Pro. And much more besides! Elegant edge definition is a striking feature of Nova Pro Scala. The broad spectrum covered by the product range enables segmentation from the entry-level version through to the premium segment and provides the individual styling option of designer panels which fit snugly on the drawer sides.
GRASS CANADA INC.
grasscanada.com
10 Newgale Gate, Unit 7 Toronto, ON, M1X1C5
youtube.com/user/grassmovementsystems
Phone 1-800-461-4975 info@grasscanada.com facebook.com/grasscanada
ONLY THE ESSENTIALS
Pacta Pacta is a compact and innovative hinge for drop down doors. Its decelerated opening action means that the door opens gradually and controlled. With its clean, simple lines and ingenious design, Pacta can be used in a host of applications.
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