NATIONAL SAFETY COMMITTEE MANDATE

Ottawa JANUARY/ FEBRUARY 2016 www.woodindustry.ca The business side of woodworking

LINE ITEM: SAFETY

TLC Design aims The cost you above and beyond Hollywood smiles must afford. Twelve steps to selling a business Wood’s design role transformed Plan, take precautions before opening your doors. PM #41203050

Jan-Feb 2016 Wood Industry.indd 1 2016-01-20 3:20 PM STATE OF THE ART Peerless aesthetics, the epitome of elegance and form. LINEABOX is era-defining excellence, a technically innovative and perfectly formed object, a product to stand the test of time and its transience. An innovative and revolutionary drawer that, with its 4 special finishes and different heights, is suitable for all applications and environments, today and tomorrow.

www.salicecanada.com

Salice State of Art_Wood Industry.indd 1 12/11/15 14:14

Editor and Publisher Kerry Knudsen [email protected] 647-274-0507 Associate Publisher Steve King [email protected] 905-703-6597 Contributing Editor Mike Edwards [email protected] Art Director Lee Ann Knudsen [email protected] The business side of woodworking Graphics nsGraphic Design [email protected] JANUARY/FEBRUARY 2016 Circulation Vol. 12, No. 1 www.woodindustry.ca Omni Data Services [email protected] Features: www.omnidataservices.com Line item safety:

Wood Industry is published six times A budget essential annually, Jan./Feb., Mar./Apr., May/ Start-ups, and established companies, June, July/Aug., Sept./Oct. and must protect their futures by planning Nov./Dec., for the secondary wood products manufacturing and marketing for true costs of compliance, and by assuring industries in Canada. workforces are protected against risk. Subscriptions are free to qualified 6 participants in Canada’s secondary wood processing industry. Subscribe at www.woodindustry.ca. Get on board with health Paid subscriptions rates: $40 to and safety committees Canadian­ addresses, $60 U.S. and And make sure to respect the process. foreign, $20 student rate. After all, committees are now required Please mail payment to Wood Industry, Ottawa c/o 365 Evans Ave., Ste. L10, in every Canadian jurisdiction. Toronto, ON M8Z 1K2 20 For subscription inquiries, e-mail [email protected] or fax 1-866-698-9061. Profile: We acknowledge the financial support of Marketing long-term value the Government of Canada through the Canada Periodical Fund of the Department Joe Edwards and TLC Design of Canadian Heritage. of Vancouver, B.C., reflect big- marketing and merchandising techniques Published by W.I. Media Inc. Box 84 Cheltenham — at 180 degrees. Caledon, ON L7C 3L7 16 © 2016 by W.I. Media Inc. All rights reserved. W. I. Media Inc. and Wood Industry disclaim any warranty as to the accuracy, completeness or currency of the contents of this publication and disclaims all liability in respect to the results of any action taken or not taken in reliance upon information in this publication. The opinions of the columnists and writers are their own and are in no way influenced by or representative of the opinions of Wood Industry or W.I. Media Inc. Editorial 4 Events 27 WFilingsO O D 10 Advertisers 27

Law 14 Bullets 28

Design 22 By the numbers 30 ISSN 1715-507X PUBLICATIONS MAIL New products 24 SALES AGREEMENT #41203050 2012 RETURN UNDELIVERABLE CANADIAN ADDRESSES TO: WOOD INDUSTRY C/O 365 EVANS AVENUE, STE #L10 www.woodindustry.ca INDUSTRY TORONTO, ON M8Z 1K2 WOOD 3 From the editor Something has to give

got into an exchange recently with a friend of Of course, we in the West believe that government ac- I a friend, and he made the claim that Britain’s tions should be transparent, largely for the reason that Opium Wars with China were between the Chi- secrecy in financial dealings seems to lead to corruption. nese and “British colonizers.” Coincidentally, in the West, we see Chinese economy and I’m not sure what he meant corruption as essentially the same. by “colonizers,” but to me colo- In deference to China, we in the West have our own nizing means packing up your problems with corruption, as China has noted. I do not, and moving, lock, stock however, think rampant corruption is an excuse for more. and , to a new location. Technically, the Opium Wars, China seems as inscrutable and as implacable as ever. the way history records them, We have reported on the standards violations in Lumber were over trade, not territory. Liquidators’ Chinese products, but Wall Street is predict- The Chinese did not want Brit- ing growth in that company’s stocks. Or was. You have the ish influence, but they wanted to advantage of reading this column in the future compared Kerry Knudsen sell to Great Britain. Therefore, to its writing in mid-January. In any event, Lumber they allowed the British ships to Liquidators seems to be moving forward. enter the Pearl River at Canton (now Guangzhou), I saw an article that called to attention China’s empty but they could not enter China further. Also, the infrastructure. I have seen that, myself .... Huge factories Chinese required payment for tea, ceramics, jade with high-speed production machines, everything clean and other items in great demand in the West to be and new, and no-or-low visible inventory or production. in silver. This gets complex, but it ends up with the Western impressions of Chinese goods seem to wax Brits shipping in tons of opium in trade. and wane. One day they are all garbage. The next, people So in the 1800s, China was plagued by coloniz- seem to think the Chinese have fixed their image prob- ers, monopolistic merchants and dope. The pur- lems and are manufacturing high-quality goods. Either ported goal of the Brits was to degrade the po- way, as with Lumber Liquidators, China seems to be mov- litical infrastructure of China, which it did, and ing forward in industry. the Second Opium War was settled with what the Then China irritates Vietnam by drilling for oil in Chinese call the Unequal Treaties, which led to Viet namese-claimed waters, build islands to claim where foreign access to travel in China. there were none, rankle neighbours over disputed terri- tory, confront the American military in the South China The Chinese still see themselves at a disadvan- Sea, support North Korea in its psychotic delusions and tage in international trade. I have mentioned be- openly steal registered brand names and dump pirated fore that I attended a world summit in Shanghai product. These may be short-term gratifications for a mi- on wood flooring. Canada and the U.S. seemed to nority of Chinese officials, but they don’t add up to a long- be in the middle on the topic of certified lumber. term public relations program of rehabilitation. There was huge disagreement, however, between It seems that most Chinese do not know who saved Western Europe and China. It was Europe’s posi- them from the grasp of the Japanese in WWII. In what tion that all lumber should be certified. was one of the most infamous and inhuman occupations in China’s representatives were totally opposed. history, the Japanese had dominated and despoiled Chi- Their position was that China purchases “legal” na’s people and its treasures. It took intervention by the lumber, and as long as the governments of Guiana, Brits and Americans to free China and let it grow. Maybe Brazil, Honduras, Malaysia or any other sovereign the Chinese don’t “owe” the Allies for their salvation, but country had legal lumber for sale, China would be it seems to me it could be a talking point toward better free to buy that lumber for whatever price they relations. Something has to give. could negotiate. Anything short of that, China said, was a challenge to Chinese sovereignty. Comment at www.woodindustry.ca. 4 WOOD INDUSTRY JANUARY/FEBRUARYJANUARY/FEBRUARY 20162016

Jan-Feb 2016 Wood Industry.indd 4 2016-01-20 3:00 PM From the editor Something has to give got into an exchange recently with a friend of Of course, we in the West believe that government ac- I a friend, and he made the claim that Britain’s tions should be transparent, largely for the reason that Opium Wars with China were between the Chi- secrecy in financial dealings seems to lead to corruption. nese and “British colonizers.” Coincidentally, in the West, we see Chinese economy and I’m not sure what he meant corruption as essentially the same. by “colonizers,” but to me colo- In deference to China, we in the West have our own nizing means packing up your problems with corruption, as China has noted. I do not, bags and moving, lock, stock however, think rampant corruption is an excuse for more. and barrel, to a new location. Technically, the Opium Wars, China seems as inscrutable and as implacable as ever. the way history records them, We have reported on the standards violations in Lumber were over trade, not territory. Liquidators’ Chinese products, but Wall Street is predict- The Chinese did not want Brit- ing growth in that company’s stocks. Or was. You have the ish influence, but they wanted to advantage of reading this column in the future compared Kerry Knudsen sell to Great Britain. Therefore, to its writing in mid-January. In any event, Lumber they allowed the British ships to Liquidators seems to be moving forward. enter the Pearl River at Canton (now Guangzhou), I saw an article that called to attention China’s empty but they could not enter China further. Also, the infrastructure. I have seen that, myself .... Huge factories Chinese required payment for tea, ceramics, jade with high-speed production machines, everything clean and other items in great demand in the West to be and new, and no-or-low visible inventory or production. in silver. This gets complex, but it ends up with the Western impressions of Chinese goods seem to wax Brits shipping in tons of opium in trade. and wane. One day they are all garbage. The next, people So in the 1800s, China was plagued by coloniz- seem to think the Chinese have fixed their image prob- ers, monopolistic merchants and dope. The pur- lems and are manufacturing high-quality goods. Either ported goal of the Brits was to degrade the po- way, as with Lumber Liquidators, China seems to be mov- litical infrastructure of China, which it did, and ing forward in industry. the Second Opium War was settled with what the Then China irritates Vietnam by drilling for oil in Chinese call the Unequal Treaties, which led to Viet namese-claimed waters, build islands to claim where foreign access to travel in China. there were none, rankle neighbours over disputed terri- tory, confront the American military in the South China The Chinese still see themselves at a disadvan- Sea, support North Korea in its psychotic delusions and tage in international trade. I have mentioned be- openly steal registered brand names and dump pirated fore that I attended a world summit in Shanghai product. These may be short-term gratifications for a mi- on wood flooring. Canada and the U.S. seemed to nority of Chinese officials, but they don’t add up to a long- be in the middle on the topic of certified lumber. term public relations program of rehabilitation. There was huge disagreement, however, between It seems that most Chinese do not know who saved Western Europe and China. It was Europe’s posi- them from the grasp of the Japanese in WWII. In what tion that all lumber should be certified. was one of the most infamous and inhuman occupations in China’s representatives were totally opposed. history, the Japanese had dominated and despoiled Chi- Their position was that China purchases “legal” na’s people and its treasures. It took intervention by the lumber, and as long as the governments of Guiana, Brits and Americans to free China and let it grow. Maybe Brazil, Honduras, Malaysia or any other sovereign the Chinese don’t “owe” the Allies for their salvation, but country had legal lumber for sale, China would be it seems to me it could be a talking point toward better free to buy that lumber for whatever price they relations. Something has to give. could negotiate. Anything short of that, China said, was a challenge to Chinese sovereignty. Comment at www.woodindustry.ca. 4 WOOD INDUSTRY JANUARY/FEBRUARY 2016

Jan-Feb 2016 Wood Industry.indd 4 2016-01-20 3:00 PM Build LINE ITEM: compliance into your plans. Or else. SAFETY

A shop accident can blow up a business launch faster verge of bankruptcy because of this . So it can cost than a visit from a Ministry of Labour inspector. you everything if you don’t manage health and safety When embarking on creating a new wood shop, or even right.” just keeping the doors open, ignore health and safety is- Before you start a business you must really push your sues at your peril. level of understanding of the applicable health and safety Norm Keith, litigation partner at the Toronto-based legislation in your jurisdiction, according to Keith. “It is a legal firm Fasken Marteneau, advises that shop owners matter of dollars and cents, as well as a question of the size ask themselves “what are the direct and indirect costs of of the operation, how much you want to invest in safety.” making sure you’re compliant with the health and safety The start-up costs of a business should always include laws?” a line item for safety compliance. Keith says, “in other These costs are important to consider due to “the ad- words it should be your intention when starting a busi- verse impact costs of not being compliant — which can ness or growing a business to make sure that safety is be devastating,” says Keith, an occupational health and built into the budget. safety defense lawyer and author on the subject, and the “Some specifics in that budget should be the cost of a first in Canada to earn the Canadian Registered Safety joint health and safety committee. The committee is re- Professional designation in 1998. quired by law in every jurisdiction in Canada. The com- For example, says Keith, a small welding shop he’s mittee’s going to cost you time and time equals money. dealing with “had a workplace fatality and they’re on the “So they’re going to meet once every three months.

66 WOODWOOD INDUSTRYINDUSTRY JANUARY/FEBRUARY 2016

Jan-Feb 2016 Wood Industry.indd 6 2016-01-20 3:13 PM Preferably once every are legally required to register for insurance coverage month. They’re going to with WorkSafeBC. For example: If you are a general con- have a two-hour meeting. tractor who employs workers or hires labour contractors Depending on the com- who don’t carry their own workplace insurance coverage, mittee size either two you are required to register; if you are a general con- or four people whom are tractor who subcontracts all work to independent firms workers on an hourly rat- or to labour contractors who have their own workplace ed basis. Therefore, you insurance coverage, registration may still be mandatory; should actually run some if your subcontractor is registered but not making pay- costs on the hourly wage, ments to WorkSafeBC as required, you could be liable for the average time per year insurance premiums owing in connection with the work or Build LINE LINE ITEM: ITEM: and what it’s going to cost service being performed on your behalf; and, if you’re not in your lost production registered, and your subcontractor’s account isn’t up to compliance time. Hopefully that time date, or if the subcontractor misrepresents its registra- is productive in the sense tion (i.e. if WorkSafeBC considers the subcontractor to be that it reduces hazards a worker), you could also be liable for the costs of a claim into your plans. and risks to the work- should someone be injured on the job. place. It’s still technically For a small contractor, all of these expenses can be Or else. a cost.” onerous. For Vancouver-based TLC Design Inc. custom furniture shop owner Joe Edwards, having an extra pay- SAFETYSAFETY Budget for insurance roll period in the month can “make it tough to get ahead. Workplace insurance for You try to get used to it but never seem to catch up.” He’s health and safety is an- not sure where he’d come up with the money for high tick- other cost that any new et items “that cost thousands and thousands of dollars” shop has to incur, as well such as fire suppression systems and air exchange units as maintain and scale ac- that may be mandatory someday. cording to assessable pay- roll. In B.C. for example, No substitute for processes the health and safety reg- Insurance may be a must-have business expense, but hav- ulatory body WorkSafe- ing a compliance program in place is important as well, ac- BC publishes insurance premiums for every aspect of cording to Keith. “You have to have a policy and a program A shop accident can blow up a business launch faster verge of bankruptcy because of this case. So it can cost manufacturing, including wooden moulding and wooden implemented in every province and every jurisdiction in than a visit from a Ministry of Labour inspector. you everything if you don’t manage health and safety furniture manufacture. Canada. And somebody has got to prepare that. Wheth- When embarking on creating a new wood shop, or even right.” So if you are running running equipment such as band er it’s an external consultant that requires you to write just keeping the doors open, ignore health and safety is- Before you start a business you must really push your saws, CNC routers, edge banders, glue machines, planers a cheque or a staff member, that costs time and time is sues at your peril. level of understanding of the applicable health and safety or sanders, 3.72 percent of your assessable payroll in 2016 money because you’re paying them on the basis of time.” Norm Keith, litigation partner at the Toronto-based legislation in your jurisdiction, according to Keith. “It is a should be remitted. In the province of Ontario, the Pre-Start Health and legal firm Fasken Marteneau, advises that shop owners matter of dollars and cents, as well as a question of the size In return for registering with WorkSafeBC, firms Safety Review (PSR) has been in place since 2000. PSRs ask themselves “what are the direct and indirect costs of of the operation, how much you want to invest in safety.” are insured against lawsuits from injured workers. Un- are intended to identify potential hazards to workers in making sure you’re compliant with the health and safety The start-up costs of a business should always include like most private insurance plans, there’s no limit to the a factory and recommend remedial measures to control laws?” a line item for safety compliance. Keith says, “in other amount of coverage a business receives, according to the or remove these potential hazards before an apparatus, These costs are important to consider due to “the ad- words it should be your intention when starting a busi- WorkSafeBC website. In the case of a severe injury or structure, protective element or process (or modification verse impact costs of not being compliant — which can ness or growing a business to make sure that safety is death, which could cost a firm several million dollars, lia- to an apparatus, structure, protective element or process) be devastating,” says Keith, an occupational health and built into the budget. bility coverage is a valuable benefit. is operated or used in that factory. safety defense lawyer and author on the subject, and the “Some specifics in that budget should be the cost of a By comparison, the 2016 WSIB Ontario premium rates A PSR cannot be conducted by the employer and re- first in Canada to earn the Canadian Registered Safety joint health and safety committee. The committee is re- to maintain coverage under the Workplace Safety and In- quires an outside professional engineer to assess equip- Professional designation in 1998. quired by law in every jurisdiction in Canada. The com- surance Act for wood-rated shops producing millwork to ment, make change orders or provide approval for the For example, says Keith, a small welding shop he’s mittee’s going to cost you time and time equals money. furniture vary by individual product classification from device to be used. Michael Wilson, a consultant with dealing with “had a workplace fatality and they’re on the “So they’re going to meet once every three months. 4.16 to 5.57 percent. Workplace Safety & Prevention Services in Mississauga, In the province of British Columbia, for example, you Ont., says “If I were to install or upgrade a particular ma- 6 WOOD INDUSTRY JANUARY/FEBRUARY 2016 www.woodindustry.ca WOOD INDUSTRYINDUSTRY 7 7

Jan-Feb 2016 Wood Industry.indd 6 2016-01-20 3:13 PM Jan-Feb 2016 Wood Industry.indd 7 2016-01-20 3:13 PM chine with certain characteristics, I would have

to undertake the PSR.

CaNada Inc. | 4345 Autoroute des Laurentides | Laval, QC H7L 5W5 | +1 800 361 9367 | [email protected] | www.holzher.com WEINIG HOLZ-HER “For example, let’s say I have an edgeband-

LINE ITEM: ing machine. When I feed a piece of wood into

this machine, it goes through a small opening,

CNC Processing Cutting Solutions Cutting Perfection

Edgebanding various automatic machinery applies the band-

Precise Complete Vertical Perfect ing and glue. Let’s also say there is a door that SAFETY automatically shuts the machine down when it is opened. The switch that signals the machine to shut down is considered a safeguarding de- vice. Those particular devices could be a door switch, light curtain or area scanner. “If I was going to install this particular type of machinery in my facility, the industrial reg- ulations require that a pre-start review is con-

ducted. In which case it will require you to go

Precision and Productivity – Top quality byout HOLZ-HER and look for an engineer that will provide

that service.” WorkIng Wood What if a resourceful wood shop start-up

decided to purchase equipment from Ebay, an

auction or other discount supplier? Since tech-

nical certification standards are created at the IvE Innovat national level, the answer could apply to anyone

InnovatIvE Wood WorkIng Precision and Productivity – Top quality by HOLZ-HER

Perfect Precise Complete Vertical Edgebanding CNC Processing Cutting Solutions Cutting Perfection

WEINIG HOLZ-HER CaNada Inc. | 4345 Autoroute des Laurentides | Laval, QC H7L 5W5 | +1 800 361 9367 | [email protected] | www.holzher.com

88 WOODWOOD INDUSTRYINDUSTRY JANUARY/FEBRUARY 2016

Jan-Feb 2016 Wood Industry.indd 8 2016-01-20 3:13 PM chine with certain characteristics, I would have in Canada, not just Ontario, Wilson noted. the (PSR) report he actually has finished his or her re- to undertake the PSR. “So when the (PSR) engineer comes in to look at this ma- sponsibility. The onus is now on the employer to take “For example, let’s say I have an edgeband- chinery they are going to consider the manufacturer, the action on those recommendations to make sure that the LINE ITEM: ing machine. When I feed a piece of wood into integrator, how the switch is wired and shuts down the ma- equipment is up to scratch before the equipment can go this machine, it goes through a small opening, chine, then how reliable that safety system is to ensure it’s into use. various automatic machinery applies the band- up to scratch with respect to health and safety standards. “Nobody wants to be caught short-handed when the ing and glue. Let’s also say there is a door that “There are any number of standards out there from Ministry comes for an onsite inspection.” SAFETY automatically shuts the machine down when it the CSA — Canadian Standards Association, ISO out Wilson maintains that “you have to ask yourself ‘is an is opened. The switch that signals the machine of Europe or ANSI out of the U.S. So your engineer is ounce of prevention worth a pound of cure?’ I would say to shut down is considered a safeguarding de- not only looking for compliance to the regulations which absolutely 100 percent. So it has to be part of the business vice. Those particular devices could be a door are the legal requirements but also looking to those stan- plan. What would a responsible person do, what should I switch, light curtain or area scanner. dards for good engineering practises with respect to inte- have in place?” “If I was going to install this particular type grating those safety devices.” Naturally an employer wants to feel assured that his of machinery in my facility, the industrial reg- people will get to go home in the exact same condition ulations require that a pre-start review is con- Engineering reports just the beginning that they arrived at work. ducted. In which case it will require you to go Purchasing non-certified equipment could void insurance “I think when you look at a lost time injury,” Wil- out and look for an engineer that will provide coverage, according to PSR expert and professional en- son says, “it can be significant, so if you have a bad ac- that service.” gineer Louie D’Orazio, president of Elite Engineering cident history your insurance premiums can go up. Be What if a resourceful wood shop start-up Group Inc. in Ingersoll, Ont. prudent, contact WSPS or whoever is available to you in decided to purchase equipment from Ebay, an “PSR paperwork for every piece of equipment — your province and say ‘look, how do I make sure I have auction or other discount supplier? Since tech- electrical, lockout, hand protection, dust extraction — the bases covered, I want a safe business, a successful nical certification standards are created at the helps keep the Ministry of Labour away.” business.’” national level, the answer could apply to anyone According to Wilson, “once the engineer has supplied Comment at www.woodindustry.ca.

ENGRAVE IT. CUT IT. MARK IT. The finishing touches start here.

The Proof is in the Results Creating your own inlays, custom cabinets, and photo engravings has never been so easy. Epilog’s versatile lasers allow you to etch, engrave, and cut intricate shapes and designs in a matter of minutes.

To request a brochure, DVD, and samples, contact us at: www.epiloglaser.com/wood-industry • [email protected] • 888-437-4564

8 WOOD INDUSTRY JANUARY/FEBRUARY 2016 www.woodindustry.ca WOOD INDUSTRYINDUSTRY 9 9

Jan-Feb 2016 Wood Industry.indd 8 2016-01-20 3:13 PM Jan-Feb 2016 Wood Industry.indd 9 2016-01-20 3:13 PM WFilingsOOD

AkzoNobel sets up in Eastern Canada Busy Bee Tools celebrates 40 years AkzoNobel has announced that it Busy Bee will create a regional service center Tools has an- for wood at its Warwick, nounced that Que., site. The facility will become 2016 marks its the commercial headquarters for the 40th anniver- wood coatings business in Eastern sary. Started in Canada and provide local support 1976 in Burn- as the business’s R&D and Techni- aby, B.C., the cal Application Center for Canada. company began It is due to be fully operational by by importing mid-2016. The facility will provide and selling services including quick-response machinery small batch manufacturing, product directly the end user in Canada. Canada, it has grown its Craftex development for the local Canadian As one of the first importers house brand name in Canadian market, custom color matching, and of woodworking machinery in workshops. commercial and customer support. As previously announced, the large- scale batch manufacturing will be transferred to other AkzoNobel sites early 1980s the parent company Capterra Best in North America, including Port based in Helsinki, Finland, entered Construction Management Hope, Ont. Canada as a supplier of simple abra- Systems List announced sive products. Mirka became estab- Both Jonas Premier and Jonas En- Mirka Abrasives lished as a Canadian subsidiary in terprise Construction Software, now Mirka Canada Inc. December of 2008 and partners Markham, Ont.-based developers of Mirka Abrasives Canada Inc. across a wide range of industries, construction management software, of Montreal has announced it has offering finishing systems and en- have both been named to the Best changed its name to Mirka Canada gineered microfinishing products. Construction Management Systems Inc., effective immediately. In the List by Capterra of Arlington, Va.

C.R. Onsrud expands capacity house the raw materials fabrication arm of the C.R. Onsrud CNC machine tool business. The company re- ports that with the steady growth it has experienced over the last few years (and diversification into ad- ditional markets), it anticipates a continued need to seek out highly skilled technicians, production team members, customer service professionals and other employees over the coming months. The additional room will allow the company to increase the number of units it produces monthly, as well as test and evalu- ate new products which are currently in the research and development phase. Two major product offerings being readied for unveiling in 2016, the company says. C.R. Onsrud will soon begin construction on a second In addition, C.R. Onsrud has just announced the addi- building of approximately 50,000 square feet at its tion of distributor Coffey & Walsh Machinery of West headquarters in Troutman, N.C. The expansion will Chester, Penn., to its sales channel.

10 WOOD INDUSTRY JANUARY/FEBRUARY 2016 Capterra is an independent, free nology School of Architecture and ing, according to to Innventia. Would service to help businesses find the the Mechatronics group at Machine Wood covers the development of ma- right software. Jonas Enterprise and Design, KTH, as well as Innventia, terials, robotics and additive manu- Premier, together comprising Jonas are behind the application. The proj- facturing processes, as well as design Construction Software, are the only ect is being coordinated by Mikael tools for developing sustainable fully integrated construction soft- Lindström at Innventia. This project wood-based composites that are suit- ware solutions to make the list. Cap- involves an innovative wood-based able for medium- and large-scale 3D terra’s Best Construction Manage- material for 3D and its man- printing. ment Systems List is based on three ufacturing technique. The challenge main criteria: ease of use, customer is in modernizing the current produc- service, and the overall rating. tion technique for wood products, en- abling it to be adapted for 3D print- Project set to create wood- based 3D printed furniture Innventia AB of Stockholm, Sweden, has announced the interdisciplinary project, Would Wood, to establish a GOT WOOD SCRAP? consortium for developing integrated material and production concepts for WOOD SHREDDING WITH WEIMA large-scale additive manufacture of

Advantageous: Ideal for small- to medium-sized wood shops (larger sizes available!)

Versatile: Designed to process various wood waste including wood blocks and end cuts advanced wood-based 3D structures. The goal is to create furniture and Custom-built: structural elements and, in the long Interchangeable knife type and screen term, medium to large-scale con- size for consistent throughput struction projects for the sustainable cities of the future. Would Wood is one of 31 new projects being financed with a total of 16 million Swedish Kroner by the Stockholm-based Swedish government innovation agency Vinnova, through its Chal- lenge-Driven Innovation program. The initiative for the project applica- tion comes from three young archi- tects: Cesilia Silvasti, Kayrokh Moat- tar and Lily Huang. The White architectural practice based in Go- thenburg, Sweden, the Stockholm- WEIMA WLK4 based KTH Royal Institute of Tech-

SHRED YOUR SCRAP WHERE IT’S GENERATED AND PUT THE SAVINGS WHERE THEY BELONG: IN YOUR POCKET.

800-398-1726 | WEIMAAMERICA.COM | [email protected]

www.woodindustry.ca WOOD INDUSTRY 11 WFilingsOOD

Heather Wood prises that reflect Canada’s economic would not cover any particular soft- joins ICFF to lead model, the Chamber says. The agree- ware or CAD skills (for which accred- marketing efforts ment provides protection and safe- itation from other entities is already Heather guards for sensitive products and available). Rather, it would measure Wood has enforceable disciplines on labour and knowledge of the Architectural joined environmental standards. The TPP Woodwork Standards (AWS) and the Emerald creates a common economic area cov- ability of the candidate to apply those Expositions ering 12 countries, 40% of the global Standards to a shop drawing. The of New York, economy and over 800 million cus- AWS also designates a protocol for N.Y., as tomers. Indonesia, the Philippines, obtaining Architect or Owner per- marketing South Korea and Taiwan are among mission to depart from specifications manager for those who have asked to join. or standards. Knowledge of that pro- ICFF cess would also be an item included Heather Wood (formerly the Boise Cascade to get in certification. The certificate would International Georgia-Pacific engineered not address engineering knowledge Contemporary Furniture Fair). Pre- lumber business per se. As currently conceived, there viously she led marketing initiatives Georgia-Pacific of Atlanta, Ga., has would be four components of certifi- for Brintons Carpets, a division of announced that it has reached an cation: a training curriculum (still in the Carlyle Group, as the North and agreement to sell its engineered lum- initial stages of development); cre- South Americas marketing director. ber business to Boise, Idaho-based ation of a sample shop drawing us- Wood will be responsible for market- Boise Cascade for $215 million, in- ing a set of architectural drawings ing campaigns, daily oversight and cluding working capital. The transac- and specifications, and conforming direct administration of key show tion is subject to standard regulatory to AWS requirements; written tests features, interface with major show review and other customary closing measuring knowledge of the entire partners, domestic and global alli- conditions. Once completed, the sale AWS, and Section 1 shop drawing re- ances. The 28th ICFF will take place will include the G-P engineered lum- quirements in particular Continuing at the Jacob Javits Center in New ber operations located at Thorsby, education requirements and periodic York City May 14-17, 2016. Ala., (approximately 230 employees) re-certification. and Roxboro, N.C., (approximately Canadian Chamber of 40 employees), along with a commer- PDS announces promotion Commerce bullish on TPP cial sales and technical team. of Malte Schnepel At the Canadian Chamber of Com- Precision merce annual meeting in Ottawa late QCC board authorizes Drive last year, delegates from chambers certification program Systems of of commerce across the country en- for drafters Bessemer dorsed a policy resolution calling The Quality Certification Program City, N.C., on Canada to implement the Trans- News newsletter reports that at its has an- Pacific Partnership (TPP) and to November New Orleans meeting the nounced the expand trade ties with China, India Potomac Valls, Va.-based Quality promotion of and Southeast Asia. The TPP is said Certification Corporation (QCC) Malte to eliminate nearly all tariffs on Ca- Board of Directors authorized the de- Schnepel to nadian imports and exports with velopment of a certification program Malte Schnepel the position member economies. It provides pre- for drafters. The certification would of global dictable market access for services, be held by individuals, and would be president. Schnepel is responsible provisions for the movement of busi- “portable” throughout a drafter’s ca- for the leadership of Precision Drive ness people and rules on investment reer, whether self-employed or work- Systems (PDS) North America in protection, intellectual property, ing as the employee of an architectur- addition to leading PDS GmbH in e-commerce and state-owned enter- al woodwork firm. The certification Europe. Schnepel worked with PDS

12 WOOD INDUSTRY JANUARY/FEBRUARY 2016 over 13 years leading PDS GmbH since it was founded February 2005. PDS is represented in Canada by MEC Precision Inc. of Granby, Que.

Alphacam and Cabinet Vision help expand college CNC woodworking program The Alphacam and Cabinet Vision software applications, by Vero Software, are part of an expanded CNC woodworking program at Cerritos College in Norwalk, Calif. The Alphacam computer-aided-manu- facturing (CAM) system for wood, stone and metal, and the Cabinet Vision design-for-manufacturing woodwork- ing solution will be used as teaching aids in the program, which will offer introductory and intermediate courses on both applications. Graduates of the program are eligible to earn a certificate in CNC Woodworking, and are able to complete the certificate in one school year.

Mannington celebrates 100 years

CNC Routing Solutions For Woodworking and Panel Processing 800 361 3408 www.axyz.com

Mannington Mills was founded, and is still headquar- tered, in Salem, N.J., over one hundred years ago. Started by John Boston Campbell in 1915, Mannington is in its 4th generation of family ownership as it enters its Centennial year. Mannington and its associates still operate under the same mission that was set forth gen- erations ago, the company says: To Be the Best People To Do Business with in The Flooring Industry. Com- mitment to that mission has seen the company through good times and bad, as is a beacon that points toward the future. Mannington Mills, Inc., is a manufacturer of residential and commercial sheet vinyl, luxury vinyl, laminate, hardwood and porcelain tile floors, as well as commercial carpet and rubber.

www.woodindustry.ca WOOD INDUSTRY 13 WOLawOD

Your 12-step program to security Selling your business? By Bill Sirdevan

usiness owners that run their own companies invest estate freezes, holding companies, and family trusts. Bhuge amounts of time, money and expertise to make The corporate records of the business should be kept their businesses successful, and should be able to reap the current and accurate throughout these transactions. maximum reward when they sell. In over 25 years of ad- 2. Not making goodwill an asset of the business before vising owner-managed businesses, I have found that to do selling. Goodwill, the intangible contribution of so, sellers of such businesses, both large and small, must reputation, customer loyalty, business relationships, avoid these mistakes: etc., is often vested solely in the owner-manager who is selling. When the owner-manager is gone, there 1. Not considering tax advantages. There are signifi- is no goodwill to sell. The goodwill must be made cant tax advantages available to vendors of shares in an asset of the business and become part of its core certain types of incorporated businesses. The ability infrastructure by putting in place formal processes to multiply this preferential tax treatment by involv- such as business agreements and contracts that will ing the owner-manager’s family members should have a value when the business is sold. be explored and if appropriate, put in place years 3. Not looking at your business through a buyer’s eyes. nrmurphy_meansmore_14before a possible third-party 14-10-03 4:02 sale. PM This Page may 1 entail Owner-managers focus on running their businesses. A buyer will look at a business to identify its soft spots and then use them to negotiate a reduction in the purchase price. Such soft spots should be Murphy means identified well in advance of any possible sale by the owner-manager’s legal, financial, tax, and account- ing advisors and then addressed or minimized as much as possible. 4. Not securing your business’s intellectual property. MORE. The business’s brand, the names it trades under, and its logo should all be protected by trademark more registrations so that they have value in the sale. 5. Not having written employment agreements with key employees. The legal relationship of the busi- ness with its key employees should be documented in written employment agreements containing, where appropriate, enforceable provisions prevent- QNo onue givesa you mlorei. ty ing departing employees from competing or solicit- We sold more than 14,000 ing clients of the business. systems in the past 70+ years. 6. Not completing due diligence on a would-be buyer. Get it done right the first time. A seller should always investigate would-be buyers, confirming that they are who they purport to be and that they have the financial wherewithal to complete the proposed transaction. 7. Not having a confidentiality agreement in place be- 430 Franklin Blvd., Cambridge, ON N1R 8G6 fore disclosing confidential information. It is essen- (519) 621-6210 tial to enter into a legally enforceable confidentiality Fax: (519) 621-2841 agreement with the potential buyer before disclos- E-mail: [email protected] ing any financial or other confidential information Web Site: www.nrmurphy.com about the business. Without such an agreement in

14 WOOD INDUSTRY JANUARY/FEBRUARY 2016 place, the potential buyer may be able to use the information to the disadvantage of the seller. 8. Not signing a letter of intent before negotiating a formal sale agreement. Once the confidentiality agreement is in place, the key business terms should be set out in a letter of intent or memorandum of understanding and signed by both parties. The letter of intent protects both parties and provides safeguards during the negotiation of a formal sale agreement. 9. Not negotiating a non-refundable deposit. The letter of intent should require a non-refundable deposit to cover the seller’s expenses should the deal fall through, since the seller will likely be restricted from being able to pursue other sale opportunities while negotiating with one buyer. The deposit is sometimes known as a termination fee. 10. Not taking adequate security for financing the purchase price. A seller who finances a portion of the purchase price is making a loan to the buyer and must therefore think like a bank, which would consider obtaining personal guarantees, sworn net-worth statements, mortgages on real property, letters of credit and security on personal property from both the buyer and the individuals and entities with which it is affiliated. 11. Not capping potential liability. Things can go wrong in any transaction. Sellers should limit their pos- sible exposure by ensuring that the sale agreement includes a cap on any potential liability the seller might face under the agreement. 12. Not including a “deductible” provision in the sale agreement. After closing, a buyer may bring a claim against the seller for compensation for damages the buyer may claim to have suffered on account of the seller’s breach of a representation or warranty. To reduce the likelihood of a claim, the seller should negotiate a provision in the sale agreement requiring Scrambling to fill orders? the buyer’s loss to be over a certain minimum amount before any such claim can be brought against the Trade in/ seller. Mistakes like these can be avoided by seeking and following professional advice well in advance of a sale and throughout the sale process. Trade UP! EXEL North America is offering a We would like to welcome the legal expertise of special program to boost your production — Brampton, Ontario’s Lawrences law firm as regular trade-in any equipment, and trade UP to our new, innovative and efficient contributors on aspects of law that directly affect our finishing and dispensing solutions! readers. This first column was first published in the • Automatic and manual paint spray guns Fall 2015 issue of the Lawrences’ Letter. — Editor • Rotary electrostatic bell atomizers • Fluid dispense and mixing systems Bill Sirdevan is co-managing partner and senior • Turnkey general industrial systems member of Lawrences’ Business Law Group, with over 25 years’ experience in business sale and purchase EXEL North America Inc. transactions, and corporate organizations and 931 Progress Ave., Unit 7 Scarborough, ON M1G 3V5 reorganizations. (800) 450-0655 Comment at www.woodindustry.ca. www.kremlinrexson-sames.com/en/canada

www.woodindustry.ca WOOD INDUSTRY 15 rofi e P l TLC Design, Vancouver, B.C. Time Lasting Craftsmanship

ike salmon fighting upstream in the rivers of designers are actually not really edu- cated designers — they are people British Columbia, one shop in Vancouver is bucking who like design but are armed with the flow of cheap, mass-market products into Lower a whole pack of magazines and they want ‘something that looks just like Mainland homes. By creating hand-crafted furniture this’ and ‘can you do that?’ They have no understanding of what it is, how and cabinetry with highly skilled craftsmen, you get there or what it takes to cre- TLC Design is producing the polar opposite of ate something that looks ‘like that.’ “They use the, for lack of a better big-box-store product. Owner Joe Edwards explains his term, the Ikea model or the Mobler or philosophy, “I have found in the last the Pottery Barn, whoever produces decade with the millennials coming that stuff using really cheap materi- in … there’s been a dumbing down of als in factories that are 20,000 square design and process of design, and the feet to pump this stuff out. That is understanding of what design can ac- what people have become accustomed tually do for you in your life.” to. And it’s sad.” This trend extends to young de- signers and architects, not just con- sumers, Edwards says: “A lot of The name of the company, tlc, signifies “time lasting craftsmanship,” Edwards says. He finds design inspiration from many sources, but when he founded his com- pany in 1992, architecture was — and still is — a primary source. He likens the “Time” in his business initials to Big Ben in England, “Lasting” to the Pyramids in Egypt and “Craftsman- ship” to the Taj Mahal in India. “That’s all architecture,” he says, “but within all that there are ways of being and lifestyles, all kinds of symbolism that has a purpose such as spiritualism — the feelings are multitudinous, not just one thing. When I take my furniture inside to create atmospheres and living envi- ronments those are the things that resonate for me.” The TLC Design Inc. shop workforce varies based on demand, But before Edwards opened the but can comfortably accommodate up to nine craftsmen. doors of TLC, his journey started

16 WOOD INDUSTRY JANUARY/FEBRUARY 2016 Time Lasting Craftsmanship

with a journeyman carpentry ap- Ruhlman-inspired modern style from buy clothes a certain way because of prenticeship at a custom home build- the turn of the century or they like the way it makes them feel. So why er. Next came a sabbatical to learn Frank Gehry as an architect.” don’t they buy their furniture that log home building, which led to him The environment of the client’s way? A lot of people don’t even think teaching this art form and skill in home also provides a starting point about it.” various locations around B.C. that can go in either direction. The pace of modern life is a factor Now a journeyman carpenter, Ed- “Design inspiration can also come in these decisions, Edwards believes. wards tackled interior architectural from whatever architectural ele- But there is a price to be paid by pur- trim work and mouldings, along with ments that already exist in a room,” chasing cheap goods. some commissions for furniture. To he says, but adds that some people “People are paying really good refine his skills further, he com- want furniture and cabinets that money for something that is going to pleted the Furniture Design course don’t tie into existing elements. be broken down in two or three years, at the Sheridan School of Design in Edwards also has a philosophical it’s inferior material most of the time Toronto. approach to design that draws from and it’s got what I call a ‘Hollywood When talking to clients these the well of his training and experi- smile,’” Edwards says. “It looks fabu- days, design inspiration can come ences. “I want to create living envi- lous but there’s no substance. from a variety of sources for TLC. ronments that inspire you when you “As soon as you lean on something “It depends on the client and what it walk into the room — a place you or do something to it that’s a little is they want and what their vision is want to come in to. If I can create that out of the ordinary, you have to buy — if they even have one,” Edwards special feeling, that’s what makes the it again. It looks fantastic until you says. “If they don’t, I ask ‘what reso- difference. Hopefully it will give you open the doors; the hardware is in- nates for them?’ What is it about a sense of purpose emotionally, intel- ferior, the edge tape comes off in six having something custom-made lectually and spiritually. That’s my months, but most people that buy that has inspired them to do that. intention.” don’t know those things. Oftentimes, the answer is that they That “special feeling” is not “It doesn’t cost you that much couldn’t find anything in the stores unique to interior design, he notes, more to get something really well — it doesn’t fit. but should be. made and then you’ve got something “However, some clients like arts “People buy certain cars because that means something to you — it has and crafts or they like Emile-Jacques it makes them feel a certain way, they a story. Continued

www.woodindustry.ca WOOD INDUSTRY 17 “The other alternative has no als are being used, costing of those story, other than it just came from a things, and the hardware such as factory where the people who put it rofi e pulls, handles, hinges, drawer slides together are getting minimum wage l — you need to have all of the specs — they’re not really craftsman. They P in order to do the pricing. By specs I sit at one station and they do their His builder’s architect recommended mean details such as whether or not part and that’s it.” us so he’s come into our shop to check it’s paint, different degrees of paint, When Edwards takes his furni- us out. The recommendation got us or is it going to be pressboard or ply- ture inside a client’s home, he wants into the process and our pricing was wood? it to create atmospheres and living good, so we’ll be doing every room in “All of that pricing has to happen, environments that resonate with the house.” and in that time the pricing allows people. He has found that his formal Occasionally TLC will, depending the planning aspect to begin in ear- training at Sheridan college school on time lines and on costs, farm work nest. Once you have the experience to that included the study of positive and out to specialty firms if they are cheap- understand how much time it actually negative space, as well as colour, has er and better set up for specific tasks. takes to do this then that’s where the helped him create what he feels are Mostly, however, the company will rubber hits the road.” positive spaces. However, theory and tackle everything on a project with its practise are not automatic so that the flexible core of skilled craftsmen. In this competitive latter is key to absorbing these theo- “Currently there are four of us, atmosphere, TLC is also up retical concepts. but I’m in a space that can accommo- against other shops that bring other “There are countless hours of prac- date eight or nine comfortably. This capabilities to the table for potential tise of creating those spaces and work- year is showing signs of being a year clients. ing with them,” says Edwards. “Until of growth so I could go up to a full “Different shops will take different you’ve actually done that you don’t house at the shop. With the four of us, lengths of time,” Edwards says, “de- really get the opportunity to absorb we can put together a house package pending on what equipment they have. what these concepts really mean.” pretty darn quick. This is where the industry has really He adds that there has to be a “That’s another aspect of being a changed in the last ten years. There is high level of competence in crafts- bespoke company or an experienced more sophisticated equipment being manship or flaws will show in the shop — our organization and level of utilized in my arena. I’ve had to lease a couple of expensive pieces of equip- ment in order to compete. We furnish every room that you can think “Luckily with what I have to do, I don’t need CNC equipment just yet but of,” he says. “Studies, wine cellars, entertainment I am prepared to go there. If you don’t systems, master bedrooms, walk-in closets, kitchens, have CNC in the commercial game (as play rooms, bars, laundries. The higher-end homes opposed to custom), you’re done.” have all of these rooms.” Production at TLC requires it to have “competent people on the floor to compensate for not having certain finished product one way or another. competence make the biggest differ- equipment that competitors have,” The achieve this high level, clients ence in the end product. With this lat- Edwards says. can turn to TLC to for just about any est contract, I’ll have to be back up to “By competent people, I mean project, according to Edwards. six men, a level I’ve had in the past, in people who have talent, know how to “We furnish every room that you no time at all.” put in a full day’s work and keep their can think of,” he says. “Studies, wine Edwards has high quality stan- brain straight to minimize any mis- cellars, entertainment systems, mas- dards, but still has to bid on projects takes. Those are the facets of being ter bedrooms, walk-in closets, kitch- in a competitive marketplace, so cost- able to price a job and make a profit.” ens, play rooms, bars, laundries. The ing is critical to the success of TLC. If one of these elements in an em- higher-end homes have all of these “It’s all about planning,” Edwards ployee is missing, “it just becomes a rooms.” says. “That’s how you come up with babysitting process,” he adds. “Those Clients of TLC are typically pro- costs to put into a quotation in order time drains are what kill you — the fessionals such as lawyers, doctors, to be considered for a job. Everybody level of competence and the under- executives and business owners. gets three prices from different con- standing of the job.” “Recently we’ve begun working tractors, different shops to do the TLC has had apprentices in the with a business owner who is build- millwork package. shop over the years and has one now ing a new house in North Vancouver. “It’s understanding what materi- that is working out well because he is

18 WOOD INDUSTRY JANUARY/FEBRUARY 2016 that is the best he’s seen in 43 years in the business. “He’s better than I ever was and he’s only 30 and he doesn’t have an ego. All he wants to do is make really good stuff.” Clearly Edwards believes that the younger generation can do good work, including designers as well as the craftsmen he works with. “I’ve just started working with an- other designer who was looking for a shop and she understands real qual- ity,” Edwards says. < TLC Design owner Joe “We’re resonating on the same Edwards insists on maintain- wavelength when it comes to design, ing quality craftsmanship now we’ve executed something of on all his projects. hers perfectly and we’re going to be doing much more work together now.” self-motivating. “He’s made some big So just as salmon struggle to reach strides in six months,” Edwards says. the headwaters after their trip to the “He’s doing some things slightly be- Pacific Ocean, a new generation be- yond his capacity but he doesn’t know gins, echoing the latest craftsman- it — he does a task because he sees ship, design and market challenges of us doing it.” TLC Design. Edwards explains that he’s been blessed to have craftsmen that can perform, especially one in particular

www.woodindustry.ca WOOD INDUSTRY 19 Ottawa Health and safety training a must across Canada

All across Canada, in every province, employers and to the Ontario Ministry of Labour. workers are legally required to participate in a health Under the training and other requirements, to become and safety committee. certified in Ontario, a JHSC member must, subject to Committee names vary from province to province: in other requirements and conditions, complete both Part Alberta, the name is Joint Work Health and Safety Com- One and Part Two of a chief prevention officer (CPO)-ap- mittee; in B.C. it’s called a Joint Occupational Health and proved JHSC certification training program delivered Safety Committee; in Manitoba, a Workplace Safety and by a CPO-approved JHSC certification training provid- Health Committee; and, in Ontario, a Joint Health and er; and will be required to take a refresher training pro- Safety Committee. gram every three years to maintain their certification. According to the London, Ont.-based Occupational Members certified under the 1996 Standards continue to Safety Group (OSG), requirements for having committee be certified and will not be subject to additional require- members vary widely by number of company employees, ments to maintain their certifications, including refresh- however. The legal requirement for a committee in Al- er training. The 1996 Certification Standards will remain berta, for example, is “as directed by the minister,” while in effect until February 29, 2016. mandatory in B.C., Manitoba, New Brunswick, Nova Sco- Wilson noted that the new standard will require train- tia, Ontario, P.E.I., and Quebec when there are 20 em- ing providers to become recertified, but that existing ployees. Saskatchewan and Newfoundland and Labrador committee members with certification will be grand- set the bar at 10 employees. fathered. Training providers approved under the 1996 Standard can continue to provide JHSC training under There is a cost to having such committees, of course. the 1996 Standard also until February 29, 2016, and will They require a time commitment by both management be required to re-apply to the CPO under the new JHSC and workers that involves receiving provincially sanc- Program and Provider Standards in order to continue de- tioned one- to three-day training sessions — mostly off- livering JHSC training. site — and the time it actually takes for committee meet- ings, work site safety inspections and maintaining proper In British Columbia, WorkSafeBC provides guidance records for ministry representatives upon request. on what time commitment that committee members can In Ontario, this certification training landscape is expect. Section 135 of the B.C. Workers Compensation about to change as a new Joint Health and Safety Com- Act states that each member of a joint committee is en- mittee (JHSC) Certification Training Program Standard titled to paid leave of eight hours (or longer) annually to is implemented, according to Michael Wilson, a consul- attend occupational health and safety training courses tant with Workplace Safety & Prevention Services in “conducted by or with the approval of the Board.” This Mississauga, Ont. “For certification of joint health and training may also be provided by an employer or by a safety committee members, the new standard takes ef- third-party training provider, according to WorkSafeBC. fect March 1, 2016. Nova Scotia also mandates that committee members “The current training standard is in effect until Feb- get paid for time spent on committee duties. “Employees ruary 29, 2016 and paperwork associated with Parts I and who are members of committees must be paid for time II training prior to Feb. 29 must be submitted to the (On- away from their regular duties for participation in com- tario) Ministry of Labour no later than April 30, 2016.” mittee related activities,” according to province’s docu- Certification of Joint Health and Safety Committee ment Joint Occupational Health and Safety Committees: (JHSC) members is required under section 9 of Ontario’s A Practical Guide for Single Employer Workplaces. Occupational Health and Safety Act (OHSA), according “They are required to be paid by the employer at the 2020 WOODWOOD INDUSTRYINDUSTRY JANUARY/FEBRUARY 2016

Jan-Feb 2016 Wood Industry.indd 20 2016-01-20 3:17 PM OttawaOttawa Health and safety training a must across Canada

All across Canada, in every province, employers and to the Ontario Ministry of Labour. rate they would be paid if they were doing their regular common sense dictates this applies everywhere. In B.C., workers are legally required to participate in a health Under the training and other requirements, to become job at the time of the committee activity.” employers are expected to perform a job task analysis to and safety committee. certified in Ontario, a JHSC member must, subject to Training plays an essential role in protecting workers determine the risks faced by the worker. This job task Committee names vary from province to province: in other requirements and conditions, complete both Part on the job. WorkSafeBC notes that Section 115 of the B.C. analysis must consider: Alberta, the name is Joint Work Health and Safety Com- One and Part Two of a chief prevention officer (CPO)-ap- Workers Compensation Act requires employers to pro- • All of the tasks a worker is expected to perform to mittee; in B.C. it’s called a Joint Occupational Health and proved JHSC certification training program delivered vide workers with “the information, instruction, training, do the job Safety Committee; in Manitoba, a Workplace Safety and by a CPO-approved JHSC certification training provid- and supervision necessary to ensure the health and safety • The environment and circumstances in which the Health Committee; and, in Ontario, a Joint Health and er; and will be required to take a refresher training pro- of those workers in carrying out their work and to ensure work is to be performed Safety Committee. gram every three years to maintain their certification. the health and safety of other workers at the workplace.” • All of the equipment the worker is expected to use According to the London, Ont.-based Occupational Members certified under the 1996 Standards continue to The competencies a worker requires depend on the cir- • All of the health and safety risks associated with Safety Group (OSG), requirements for having committee be certified and will not be subject to additional require- cumstances of the work, according to WorkSafeBC, but the work. members vary widely by number of company employees, ments to maintain their certifications, including refresh- however. The legal requirement for a committee in Al- er training. The 1996 Certification Standards will remain berta, for example, is “as directed by the minister,” while in effect until February 29, 2016. mandatory in B.C., Manitoba, New Brunswick, Nova Sco- Wilson noted that the new standard will require train- tia, Ontario, P.E.I., and Quebec when there are 20 em- ing providers to become recertified, but that existing ployees. Saskatchewan and Newfoundland and Labrador committee members with certification will be grand- set the bar at 10 employees. fathered. Training providers approved under the 1996 Standard can continue to provide JHSC training under There is a cost to having such committees, of course. the 1996 Standard also until February 29, 2016, and will They require a time commitment by both management be required to re-apply to the CPO under the new JHSC and workers that involves receiving provincially sanc- Program and Provider Standards in order to continue de- tioned one- to three-day training sessions — mostly off- livering JHSC training. ACHIEVE A NEW EDGE site — and the time it actually takes for committee meet- ings, work site safety inspections and maintaining proper In British Columbia, WorkSafeBC provides guidance GUARANTEED SHARPENING SERVICES records for ministry representatives upon request. on what time commitment that committee members can In Ontario, this certification training landscape is expect. Section 135 of the B.C. Workers Compensation Manufacturers in the woodworking and plastics industries turn about to change as a new Joint Health and Safety Com- Act states that each member of a joint committee is en- to Vortex Tool to restore their carbide spirals and saw blades mittee (JHSC) Certification Training Program Standard titled to paid leave of eight hours (or longer) annually to to like-new cutting condition. We service tools of any make or is implemented, according to Michael Wilson, a consul- attend occupational health and safety training courses type on the same equipment they were manufactured on, and tant with Workplace Safety & Prevention Services in “conducted by or with the approval of the Board.” This our 100% guarantee ensures your satisfaction. Reliable, quick- Mississauga, Ont. “For certification of joint health and training may also be provided by an employer or by a turnaround on your order, typically within two working days. safety committee members, the new standard takes ef- third-party training provider, according to WorkSafeBC. fect March 1, 2016. Nova Scotia also mandates that committee members Vortex Tool is your Problem Solver — contact us today “The current training standard is in effect until Feb- get paid for time spent on committee duties. “Employees for a price quote on sharpening or for tools you need. ruary 29, 2016 and paperwork associated with Parts I and who are members of committees must be paid for time II training prior to Feb. 29 must be submitted to the (On- away from their regular duties for participation in com- 800-355-7708 • vortextool.com tario) Ministry of Labour no later than April 30, 2016.” mittee related activities,” according to province’s docu- American Owned and Operated Certification of Joint Health and Safety Committee ment Joint Occupational Health and Safety Committees: (JHSC) members is required under section 9 of Ontario’s A Practical Guide for Single Employer Workplaces. Occupational Health and Safety Act (OHSA), according “They are required to be paid by the employer at the INSERTS | CUSTOM TOOLING | ACCESSORIES | SHARPENING 20 WOOD INDUSTRY JANUARY/FEBRUARY 2016 www.woodindustry.ca WOOD INDUSTRYINDUSTRY 21 21

Jan-Feb 2016 Wood Industry.indd 20 2016-01-20 3:17 PM Jan-Feb 2016 Wood Industry.indd 21 2016-01-20 3:17 PM WDesignOOD Wood’s diminished role affects lives Good-natured trees

y 91-year-old mother, who ness. Not all of what we think of as Mdoesn’t know where she lives nature is good, of course. There are or if she’s had breakfast yet, is en- problems from bears, to poison ivy thralled by trees. When we go for and hurricanes among many other walks, she stops and gazes up at examples. But trees don’t usually them in joy- give us any trouble. They simply ous wonder. stand there, doing their job. They I asked her catch the sunlight and turn it into what it was living material. They capture car- about trees bon (sequester is the current popular that caught term) and store it away. And by doing her attention this, they make the air clean for us. so thoroughly. They give us shade, and shelter from She replied the wind. And they give us beauty, that it was from the delicate colours of spring Paul Epp because buds, to the brilliant multi-hued fall trees were displays. There are people who claim so good-natured. Then she laughed, that they don’t like trees, but that’s spotting her witticism. pretty rare. There is little about Yes, trees are good-natured. They trees to object to. exemplify nature, and nature’s good- Maple syrup is a wonderful treat, but trees’ most significant gift to us, beyond the comfort of their pres- ence, is that they give us wood. We can burn this material and the ne- cessity of bodily warmth and com- fort of hot food has been a very sig- nificant factor in the progression of our civilizations. We still seem to re- flexively find comfort in the sight of an open fire, whether in a fireplace or at a campsite. But burning it up is the least con- structive use to which we put this very adaptable material. It was mal- leable enough to have been worked with very simple tools: stone and ear- ly metals. This led to the creation of boats, shelters, weapons, musical in- struments and many of the other ac- coutrements of early life. How would we have managed without it? With advances in technology, many of which were directed towards woodworking, our wood manipulation

22 WOOD INDUSTRY JANUARY/FEBRUARY 2016 oceans. Early cathedrals had wooden But things have changed. Now, roofs and they still do, the surviving rather than burning firewood in and well shingled examples, still en- stoves, we are more likely to use thral us with this now very old mate- wood pellets. Our houses are wood- rial up there keeping the whole build- framed, but what we see is the outer ing from falling down. brick veneer or the gypsum interi- Wood is nature and wood is good. or. The wood that we see will often Until the middle of the last century, consist of a very thin representa- wood was the default material for al- tive surface layer on top of a highly most everything we made or used. Its engineered substrate. Newspapers virtues are numerous. Its flexibility, are more likely to be on-line than in advance of other alternate materi- thumped against our doors in the als, gave us bows, for arrows or fish- morning. A few things are more re- ing rods. Its insulating properties sistant to change. Although much of kept us warm. Its buoyancy helped as what we read will be electronic pix- to get where we hadn’t been before. els on a screen, we don’t use virtual Its malleability gave us the opportuni- toilet . ty to make bowls and totems. Wooden Despite wood’s goodness, it has fences kept our livestock domesticat- undergone a major transformation, ed and available. Wood’s acoustic reso- and a diminished role in our lives. nance allowed for drums and pianos. This is a particular challenge for de- The benefits that wood has provided signers. How do we continue to utilize us could be a very long list. what most will agree is a special ma- Although we now have a much terial, in a way that makes economic greater range of materials to choose sense, in the context of the way we from, wood retains a special place live now? in our emotional lives. We like to be around it. It’s still popular for furni- Paul Epp is professor at OCAD ture and floors. Wooden musical in- University and former chair of its struments have rarely been replaced Industrial Design Department. with better alternatives. Wooden Comment at www.woodindustry.ca. prowess increased. Axes, steel saws, boats remain a special aesthetic expe- drill bits, and so on allowed for ever rience. Wooden skis still retain some more complicated artefacts. Violins, special characteristics that keep them for example, and boats that crossed in (very limited) production.

EVEN YOUR DUST COLLECTION SYSTEMS CAN BE HIGH TECH

Celebrating

INDUSTRIES 40 Years

Website : airex-industries.com | Toll Free : 1-800-263-2303

www.woodindustry.ca WOOD INDUSTRY 23 — is available for both wood and cabinet doors. A matching glass face New Products plate SDS-50G is sold separately. WOOD www.sugatsune.com Variable speed wood lathe Smart lock system pairs with dovetail corners. Designed for with video doorbell both kitchen and bath applications, features include: height is fixed at 12 in. with 3 shelf and tray configura- tions; three depths are available for all shelf and tray configurations at 15, 18 and 21 in.; and, the top shelf and bot- tom tray are fixed at a 3 in. height. The variable speed Maxi-lathe VF www.dbsdrawers.com wood lathe from General Interna- tional features quick lock control le- The Weiser Kevo smart lock powered Clamp for gluing panels vers that easily position tool-rest while by UniKey technology, and the Ring stable cast-iron frame, head and tail- Video Doorbell now work together, stock reduce chatter and vibration for enabling homeowners to secure and smoother turning. There is a maxi- control their entire entryway. From mum distance of 17 in. between cen- their smartphones, homeowners can tres. The three variable speed ranges now see and speak with whoever is at are 200 to 900, 350 to 1600 and 700 to the door via the Ring app, then quick- 3500 rpm. Positive indexing is in 15° ly lock or unlock their Kevo smart increments for a total of 24 indexing lock. This integration is the latest in a When used in conjunction with bar positions. Maximum distance of 40 in. series of integrations Ring is an- clamps, Larry’s Clamp from Charles is possible between centres with an nouncing as part if its new Ring Plus G.G. Schmidt & Co., helps to flatten optional bed extension. program, which enables customers to boards when making glued up panels. www.general.ca connect several of their smart home Using two hands to hold and operate devices to Ring. this air operated unit, fingers are Manual edgebander www.weiserlock.com safely out of the way when activating with glue pot the clamp. Five hundred pounds of Under-sink storage caddy pressure ensures flat and even pan- els. Units are available in 18, 22 and 36 in. lengths. Longer lengths can be glued if last glue joint is captured be- tween pressure bar and anvil. www.cggschmidt.com

Cabinet catch hardware DC Casadei Busellato has introduced Damper the ALA 10, a manual edgebander Catch with an integrated glue pot. Advan- left and tages of the unit include the flexibili- right ty to edgeband virtually any type of handed panel, such as straight panels, shaped catches panels — concave and convex, and The Under Sink Caddy from Drawer from round panels. High flexibility tanks, Box Specialties is crafted to install Sugat- interchangeable copiers and the front easily with either undermount or side sune for kitchen and bathroom have extension support allows work even mount slide configurations with three a built-in damper for closing doors with big dimensioned panels. Panel widths of trays and three depths of softly and smoothly. The catch hard- heights from 8 to 80 mm, edging shelf and tray configurations. The ware’s slim design is suitable for thicknesses from 0.4 to 3 mm, and product comes in either ½ in. Baltic various inset and overlay door instal- feed speeds from 4 to 8 m/min are Birch or Maple 9 ply, both pre-finished lations. Product — including screws supported. www.casadeibusellato.com

24 WOOD INDUSTRY JANUARY/FEBRUARY 2016 id thermofoils (RTF), can be mem- ganization of outerwear and umbrellas Throughfeed multi-rip saws brane-pressed to flat or contoured surface profiles. Due to their ability to wrap around custom shapes, edges and contoured surfaces, designers of- ten specify 3DL materials for POP displays, commercial hospitality com- ponents, office furniture and door/ drawer fronts for cabinetry. www.premiereurocase.com Longitudinal multi rip saws FSL 310, in a mud room or basement; declutter a 320 and 330 from Homag include the Sharpening kit garage, shop or shed; and hang school, standard single-row machine up to the for turners and carvers office or craft supplies in an office or automated two-row. Each saw unit is craft room space. The line offers an af- separately adjustable, while the cen- fordable way to get organized and is tral extraction channel in the machine easy to install on pegboard, walls and brings the suction power directly to the ceilings, says the company. saw units. Thick-walled, heavy-duty www.natman.com extraction hoods guard against the abrasive chip stream from the saw Cordless drill units. Stable workpiece transport uses weighs under 2 lbs. high precision grinded transport 140 mm diameter rollers, optional also with DMT Diamond Machining Tech- knurled steel rollers. Low emissions nology has announced its new Sharp- caused by very stable design of suction ener Kit for Turners and Carvers. hoods to minimize sound emissions. Driven by customer demand, the kit Feed rate capacity is 15 to 60 (110) m/ provides craftspeople with a practi- min, raw board width (max.) is 2500 cal and convenient combination of di- (3800) mm and board thickness is 6 to amond sharpening products for 40 (60) mm, and raw board length curved and small edges. The kit for (min.) is 660 to 900 mm. Saw blade di- comes in a carrying pouch that can be ameter is 250 mm and the machine hung from a peg board or folded for length is from 1200 to 1860 mm. drawer storage, and features four Festool USA has introduced the TXS www.homag-canada.com continuous diamond surface sharp- cordless drill. The product has a T- ening products in Fine grit (600 handle design, delivering torque for 3D laminates mesh, 25 micron): 1 large honing cone drilling and driving in a compact for- in different styles (8-in. long, 0.75 to 1.125 in. diameter, mat that weighs just under 2 lb. half-round); 1 medium honing cone Equipped with built-in fuel gauge, (6-in. long, 0.375 to 0.75 in. diameter, LED to illuminate the work area, half-round); 1 small honing cone with four-bit magnetic storage, removable a handle (4-in. long, 0.125 to 0.375 in. reversible belt clip, high and low diameter, round); and, 1 credit card speeds, multiple-position clutch, and sized sharpener (3.25 x 2 in. pocket compatible with Festool system acces- sharpener in a vinyl sleeve). sories like Centrotec drill bits, the www.dmtsharp.com unit is a stand-alone drill or the com- Premier Eurocase offers a wide se- plement to heavier, 18-volt drills. The lection of patterns and designs in 3D Storage hardware drill is available in two versions. The laminates (3DL) that includes solid use pegs to hold tools TXS Plus cordless drill includes: MXC colors, realistic woodgrains and ab- National Hardware has introduced charger; 10.8 V battery lithium ion 2.6 stract patterns. Its membrane press a line of Peg & Storage Hardware de- Ah (2x); 3/8 in. keyless chuck; Centro- has the capacity to process 3DL com- signed to offer a wide range of stor- tec chuck; BH 60 Centrotec bit holder; ponents up to 47 x 95 in. with thick- age solutions in shop, garage, laun- PH 2 Phillips bit; and, SYS nesses ranging from 1/4 to 2 in. The dry room, office and play room 1 T-LOC. The TXS Set includes ev- company can also flat laminate 3D applications. The new line will include erything above plus the right-angle foils on panels up to 4 x 8 ft with more than 130 products. Typical uses chuck, providing 16 settings while thicknesses ranging from 1/4 to 3 in. include closet storage; organization maintaining a compact length. The 3D laminates, also known as rig- of a laundry room or broom closet; or- www.festoolcanada.com

www.woodindustry.ca WOOD INDUSTRY 25 New Products ects involving thin or delicate stock, WOOD such as in luthier work, it adds. Each clamp features a band made of tear- resistant rubber that has three ex- tra-strength splines molded into it. Large, anti-slip clamp pads on pivot- Edgebanding systems ing jaws accommodate clamping at create invisible joints different angles with full pad contact. The Lumina series from Weinig Neither the clamp pads nor the rub- Holz-Her Canada Inc. offers a com- ber band will mar the workpiece, it bination for processing panels: two says. Applied with one-handed systems for invisible joints. The Glu clamping, pressure is created by Jet application system for standard squeezing the clamp open and push- ing the built-in flexible rubber band against the profile or piece being process a wide range of face frame clamped until the desired resistance moulding sizes. Operation of the ma- is achieved. chine, cutting head and length stop www.rockler.com design are based on the larger NFL and NFXL models, the main differ- CNC router covers five axes ences are a reduced overall footprint and smaller cutting head and knives. use of PUR glue and the Ltronic, the The machine features a steel frame new laser edging unit from Holz-Her, with cast iron tabletop. The vertical which provides an integrated solution travel of the cutting head can be ad- for processing laser edging. All cur- justed depending on workpiece thick- rent co-extruded and subsequently ness, also assuring comfortable op- coated edging can be processed. The eration, the company says. NIR module (NIR = Near Infrared www.hoffman-usa.com Radiation) in the Ltronic unit is elec- tronically controlled for activating Clamps apply even, the laser edging function layer. The non-marring pressure MultiCam 8000 series 5-axis CNC result is said to be perfect, invisible routers offer a broad range of stan- joints. With the Ltronic, users are dard table sizes and Z-axis open- said to obtain a cost-effective alter- height configurations. Designed for native to laser and hot-air processes, high-speed, heavy-duty routing, the ensuring perfect quality laser edg- machines are said to be easy to con- ing. On the Lumina the Glu Jet as figure to meet requirements in wood- well as the Ltronic both have edging working, plastics, non-ferrous metals magazines with optimized feed an- and composites industries. Units are gles, allowing edging variety, from made of structural-steel, tubular- modern high gloss edging to thick frame construction coupled with a edging cross sections in the solid moving-gantry design. The gantry is wood range. a 0.5 in. thick, 20 x 12 in. internally- www.holzher.com Rockler Woodworking and Hard- ribbed rectangular structural steel ware has introduced two new sizes of mounted on machined pads on Manual notching machine its Bandy Clamp work accessory. the top of each box frame support. Hoffman USA has introduced the Large Bandy Clamps feature a jaw Each gantry features internal rib- MORSO NM manual notching ma- opening that will fit the edge of stan- bing, to minimize vibration during chine. The NM is manually operated, dard 2x lumber (2x4s, 2x6s, etc.), cutting. Dual 35-mm linear bearings standard-duty notching machine for which makes them useful for edging spaced on 18 in. centres provide the production of beaded face-frames, thick tabletops, countertops and oth- RAM-Z axis assembly rigidity. The French-mitered cabinet doors as well er projects involving thick stock, the router has over 76,800 lb of bearing as muntin and mullion joints. The company says. Small Bandy Clamps support capability on a gantry/Ram- manual model accepts material up to fit where others can’t, adding conve- Z axis assembly weighing approxi- 4½ in. wide, allowing the operator to nience to small-scale assembly proj- mately 7000 lb. www.multicam.com

26 WOOD INDUSTRY JANUARY/FEBRUARY 2016 WEventsOOD AdvertisersWOOD

Feb. 16 – 19 Airex Industries HolzHer-Weinig ZOW Bad www.airex-industries.com ...... 23 www.holzher.com ...... 8 Salzuflen, Germany AXYZ Automation N.R. Murphy www.zow.de www.axyz.com ...... 13 www.nrmurphy.com ...... 14

Feb. 25 – 29 Epilog Laser Osborne Wood Products Indiawood www.epiloglaser.com/ www.osborneposts.com ...... 15 Bangalore, India wood-industry ...... 9 www.indiawood.com Salice Exel North America www.salicecanada.com ...... 2 Mar. 11 – 20 www.kremlinrexson-sames.com/ TigerStop National Home Show en/canada ...... 15 www.tigerstop.com ...... 19 Toronto, Ont. Festool www.nationalhomeshow.com www.festoolcanada.com/ Vortex Tool sanders...... 32 www.vortextool.com ...... 21 March 22 – 24 Domotex Asia ChinaFloor Ford Machinery Weima America Inc. Shanghai, China www.fordmachinery.com ...... 22 www.weimaamerica.com ...... 11 www.domotexasiachinafloor.com Grass Canada Xylexpo www.xylexpo.com ...... 5 March 28 – 31 www.grasscanada.com ...... 31 CIFM Interzum Guangzhou Guangzhou, China www.interzum-guangzhou.com

FAIR SHOWTIME April 4 – 6 TIME IN VEGAS IN GERMANY READER MARCH/ Dubai WoodShow APRIL 2015 SURVEY AWFS www.woodindustry.ca MAY/JUNE 2015 www.woodindustry.ca NOVEMBER/The business side of woodworking Dubai, UAE DECEMBER 2015 The business side of woodworking www.woodindustry.ca www.dubaiwoodshow.com The business side of woodworking

April 12 – 15 EXPORT ECOMMERCE CHALLENGES Salvage inspires NEW 2015Opportunity Union Square CANADA’S Woodworking Industry Conference in Korea, Government Honduras, SUPPLY TALENT redefines danger Europe... Embrace the CHAINIrpinia relishes Associations Cancun, Mexico Design to market: world stage Solid investment accountability Ride that train at Brenlo are finding Custom Moulding WHMIS standard spans Canada new ways www.wmma.org WMS wrap-up Akhurst, Blum to connect Design innovation barred from sometimes comes advertising in increments April 16 – 20 PALM High Point Market POWER LOGISTICS F O C U S PM #41203050 SPOTLIGHTLABOUR ON

High Point, N.C. #41203050 PM 2015 PM #41203050 PM www.highpointmarket.org 2015-11-18 7:56 PM Nov-Dec 2015 Wood Industry.indd 1

April 27 – 30 Reach the TOP buyers in Canada NWFA Wood Flooring Expo Charlotte, N.C. with Wood Industry magazine! www.nwfaexpo.org Contact:

April 28 – May 1 Stephen King...... 905-703-6597 CKCA National Forum [email protected] Whistler, B.C. www.ckca.ca Rates and details available at: www.woodindustry.ca

www.woodindustry.ca WOOD INDUSTRY 27 WBulletsOOD

Current business highlights...

Statistics Canada reports that municipalities issued Canada’s latest Learning and Development Outlook, $7.7 billion worth of building permits in October, up Canadian employers spent an average of $800 per 9.1 percent from a month earlier. This was the first in- employee on staff training in 2014–15, up from $705 crease in three months. Higher construction intentions in 2012–13, and $688 in 2010. The average number of for multi-family dwellings and institutional buildings hours employees spend on learning is also on the rise, in Alberta were responsible for much of the gain, as increasing from 25 hours in 2010 to 31 in 2014–15. builders filed permits in advance of the changes in the —Conference Board of Canada Building Code. The value of residential building per- mits rose 15.5 percent from September to $4.8 billion The Bureau of Economic Analysis reports that U.S. in October. The advance followed an 11.4 percent drop net international investment position at the end of the in September and a 5.4 percent decline in August. In- third quarter of 2015 was -$7,269.8 billion as the value creases were posted in five provinces, led by Alberta, of U.S. liabilities exceeded the value of U.S. assets. At followed by Ontario and British Columbia. The largest the end of the second quarter, the net investment posi- declines were reported in Manitoba and Quebec. Con- tion was -$6,743.1 billion. —U.S. Bureau of Economic struction intentions for non-residential buildings edged Analysis down 0.2 percent to $2.9 billion in October. Declines were registered in five provinces, with Saskatchewan In the latest Eumabois industry report, European and Ontario posting the largest decreases. Alberta production of woodworking machinery and tools posted the largest gain, followed by Quebec, a distant increased by 9.6 percent in 2014. Eumabois is the second. —Statistics Canada European Federation that represents the national associations of woodworking technology manufactur- In the latest Country Risk Quarterly report from ers. The report notes that North American markets EDC Economics, the EDC base-case forecast calls are pulling the export of European technology, that for a stable, if modest, economic recovery in 2016. partial results in South America are good, while Global growth is expected to tip 3.6 percent, driven Australia can be considered an output market for primarily by ongoing momentum in the U.S. Pent up European producers. The positive report is offset by demand among American consumers and businesses Russia’s negative economic situation, traditionally a will cascade through the rest of the world, starting big consumer of European equipment. —Eumabois with Europe and other industrialized economies. That said, however, downside risks remain, the report says. The total value of investment in residential construc- —Economic Development Canada tion rose 3.3 percent to $31.9 billion in the third quar- ter compared with the same quarter a year earlier, U.S. personal income increased $44.4 billion, or 0.3 according to Statistics Canada. This marked the percent, and disposable personal income (DPI) in- seventh consecutive year-over-year quarterly growth. creased $34.5 billion, or 0.3 percent, in November, ac- Investment in apartment and apartment-condominium cording to the Bureau of Economic Analysis. Personal building construction (up 21.5 percent to $4.7 billion), consumption expenditures (PCE) increased $40.1 acquisition costs related to new dwelling units built billion, or 0.3 percent. In October, personal income (up 7.4 percent to $3.6 billion), renovation spending (up increased $66.9 billion, or 0.4 percent, DPI increased 1.3 percent to $14.1 billion) and spending on converted $54.0 billion, or 0.4 percent, and PCE increased $3.8 dwelling units (up 76.9 percent to $385 million) ac- billion, or less than 0.1 percent, based on revised counted for most of the national advance. Residential estimates. —U.S. Bureau of Economic Analysis construction investment increased in five provinces in the third quarter. Ontario reported the largest gain, Canadian organizations’ spending on learning and followed by British Columbia and Quebec. Saskatch- development has been on an upward trend since the ewan registered the largest decrease, followed by end of 2010. According to The Conference Board of Alberta and Manitoba. —Statistics Canada

28 WOOD INDUSTRY JANUARY/FEBRUARY 2016 Canadian exporters remain optimistic they will be able sale. Participants in the auction commented that the to increase their export sales over the next six months, quality of the logs was good and most of the logs sold even though more than a quarter of them believe that briskly. Only a few lots remained unsold as the buyers world economic conditions will worsen during the same felt that the reserve prices for these lots were too period, according to the latest Trade Confidence Index high. —Fordaq (TCI) from Export Development Canada (EDC). The TCI is a semi-annual survey that examines the atti- The U.S. Congress has passed the bonus deprecia- tudes of Canadian exporters as they forecast the busi- tion law, or more commonly known as Section 179 tax ness environment over the next six months through deduction. The bonus depreciation is extended through five index elements: trade opportunities, export sales, 2019. This allows companies to apply a 50 percent domestic sales, and both domestic and global economic bonus depreciation to any equipment bought during a conditions. The U.S. continues to be the top market for fiscal year. For example, 50 percent of any equipment Canadian exporters, with 84 percent of those surveyed bought before Dec. 31, 2015, can be depreciated on a selling goods or services there, and nearly half of them company’s 2015 taxes, with the rest depreciated over reporting increased sales since the spring. One in five the remaining useful life of the equipment. The bill exporters say the lower Canadian dollar helps their allows the full 50 percent depreciation for machinery business as it allows them to offer their products at a placed in service during 2015, 2016 and 2017, then lower price. —Export Development Canada phases down to 40 percent in 2018 and 30 percent in 2019. If an American company exceeds a total of $2 Nationally, there were 1,250,822 active Canadian million in annual qualifying equipment purchases, businesses with employees in June. In addition, there there is a dollar-for-dollar phase out of the depreciation were 2,586,343 active businesses without employees until completely eliminated above the $2.5 million level. and with annual revenues greater than $30,000. The Section 179 will be indexed for inflation in $10,000 —Statistics Canada increments in the coming years. —Superficia America

Despite being a major producer, China particleboard U.S. demand for fibre cement products is forecast to imports remain high, according to IHB. China is grow 5.8 percent annually through 2019 to 2.9 billion one of the largest producers of particleboard and ft2, valued at $2.2 billion. Accelerating construction output in 2014 rose 11 percent to 20.87 million cubic expenditures, specifically in new housing, will spur meters. The main production centres are found in 10 demand. Siding is by far the largest application for provinces, including; Shandong (3.67 million cubic fibre cement, and demand will benefit from fibre meters, 18 percent), Hebei (2.91 million cubic meters, cement siding’s popularity in the South and West, 14 percent), Jiangsu (2.8 million cubic meters, 13 the U.S. regions that will experience the strongest percent), and, Guangdong (1.59 million cubic meters, growth in population and housing starts going for- 8 percent). While national output is huge, much of the ward. These and other trends are presented in Fiber output is of low quality. As a result, a large volume of Cement, a new study from The Freedonia Group, Inc., particleboard is imported to meet domestic demand a Cleveland-based industry market research firm. for quality panels. Particleboard imports in 2014 were —The Freedonia Group 550,000 cubic meters. Local analysts say there are around 1,000 particleboard manufacturers and about The Architectural Woodwork Institute has released its 14 large scale enterprises have an annual capacity of 2015 Cost of Doing Business Survey Report. The sur- 200,000 cubic meters. —IHB vey indicates that overall AWI Manufacturing Mem- bers reported an average net operating income margin According to a report from Fordaq, Chinese wood increase of 1 percent, making a net of 5.1 percent imports are expected to grow massively by 2020. The operating margin, whereas high-profit manufacturers lack of forest resources, wood quality, and some struc- increased their net operating margin by 1.3 percent to tural problems, are issues that on the short term can’t a net margin of 16.7 percent. Similar net margins like be fundamentally solved by the Chinese government. this year were last reported in the 2007 Cost of Doing Faced with an insufficient forestry development, Business Survey Report. AWI members are located China’s huge wood demand, driven by the country’s in each of the 50 United States, five of the 10 provinces economic and social evolution, cannot be satisfied by of Canada, and 17 countries from around the world. — domestic resources and will have to rely more and Architectural Woodwork Institute more on imports, the organization says. —Fordaq The Indian government set a wood product export Auctions at forest depots in the South Dangs Divi- target of US$325 billion for the current financial year sion, India, have been concluded. Around 17,000 cubic to March 2016 but recent reports suggest there will meters of teak and other hardwoods were offered for be a shortfall of around US$25 billion. —Fordaq

www.woodindustry.ca WOOD INDUSTRY 29 ByW theO numbersOD Tracking Canada’s wood industry stats ...

Residential construction investment Dollars x 1,000

$ 35000000

30000000 Total residential 25000000 investment

20000000 Renovations Total residen4al investment 15000000 Renova4ons 10000000

5000000

0 Q2 Q3 Q4 2012Q1 Q2 Q3 Q4 2013Q1 Q2 Q3 Q4 2014Q1 Q2 Q3 Q4 2015Q1 Q2 Q3

2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 Source: Statistics Canada

Canadian building permits Dollars

$ 6000000

Residential 5000000 building permits

4000000 Commercial building permits

ResidenDal 3000000 Institutional andCommercial governmental InsDtuDonal and governmental 2000000 building permits

1000000

0 2014 2015

Jan-­‐14 Jul-­‐14 Jan-­‐15 Jul-­‐15 Source: Statistics Canada Sep-­‐13 Oct-­‐13 Nov-­‐13 Dec-­‐13 Feb-­‐14 Mar-­‐14 Apr-­‐14 May-­‐14 Jun-­‐14 Aug-­‐14 Sep-­‐14 Oct-­‐14 Nov-­‐14 Dec-­‐14 Feb-­‐15 Mar-­‐15 Apr-­‐15 May-­‐15 Jun-­‐15 Aug-­‐15 Sep-­‐15 Oct-­‐15 Nov-­‐15

MLS Home Price Index

180

170

160

150 2012 2013 2014 2015 2016 Source: MLS

3030 WOODWOOD INDUSTRYINDUSTRY JANUARY/FEBRUARY 2016

Jan-Feb 2016 Wood Industry.indd 30 2016-01-20 9:36 PM ByW theO numbersOD Tracking Canada’s wood industry stats ...

Residential construction investment Dollars x 1,000

$ 35000000

30000000 Total residential 25000000 investment

20000000 Renovations Total residen4al investment 15000000 Renova4ons 10000000

5000000

0 Q2 Q3 Q4 2012Q1 Q2 Q3 Q4 2013Q1 Q2 Q3 Q4 2014Q1 Q2 Q3 Q4 2015Q1 Q2 Q3

2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 Source: Statistics Canada

Canadian building permits Dollars

$ 6000000

Residential 5000000 building permits

4000000 Commercial building permits

ResidenDal 3000000 Institutional andCommercial governmental InsDtuDonal and governmental 2000000 building permits

1000000

0 2014 2015

Jan-­‐14 Jul-­‐14 Jan-­‐15 Jul-­‐15 Source: Statistics Canada Sep-­‐13 Oct-­‐13 Nov-­‐13 Dec-­‐13 Feb-­‐14 Mar-­‐14 Apr-­‐14 May-­‐14 Jun-­‐14 Aug-­‐14 Sep-­‐14 Oct-­‐14 Nov-­‐14 Dec-­‐14 Feb-­‐15 Mar-­‐15 Apr-­‐15 May-­‐15 Jun-­‐15 Aug-­‐15 Sep-­‐15 Oct-­‐15 Nov-­‐15

MLS Home Price Index

180

170

160

150 2012 2013 2014 2015 2016 Source: MLS

30 WOOD INDUSTRY JANUARY/FEBRUARY 2016

Jan-Feb 2016 Wood Industry.indd 30 2016-01-20 9:36 PM There are many sides to sanding. We’ve thought of them all.

THE PERFECT SYSTEM

INTRODUCING THE FIRST BRUSHLESS FESTOOL SANDING SYSTEM.

Offering the performance of an air sander without the expense and bulk of an air system, these low-profile, long-life, and low-vibration sanders can run all day by limiting downtime caused by sleeve or brush replacements. Pair it with our seamless, integrated system of accessories, abrasives, carrying cases and dust extractors, and View our entire line at you’ve got the ultimate sanding system. festoolcanada.com/sanders

ETS_EC_WoodIndustryCanada.indd 1 1/15/16 6:53 AM