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Stimulating Market Development for California’s “Urbanwood” Resources

Stimulating Market Development for California’s “Urbanwood” Resources. Richard P. Thompson, Professor California Polytechnic State University, San Luis Obispo Director Urban Forest Ecosystems Institute John R. Shelly, Extension Specialist University of California Forest Products Laboratory.

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Stimulating Market Development for California’s “Urbanwood” Resources

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  1. Stimulating Market Development for California’s “Urbanwood” Resources Richard P. Thompson, Professor California Polytechnic State University, San Luis Obispo Director Urban Forest Ecosystems Institute John R. Shelly, Extension Specialist University of California Forest Products Laboratory

  2. Urban Utilization Problems • Greenwaste flows have drastically limited landfill capacity in California. • Solidwood represents the highest value potential in these flows but utilization is low because an efficient market has yet to form. Purpose To help the market for urban solidwood, “urbanwood”, emerge in California.

  3. Objectives Phase I - Primary Supply • Estimate urban sawlog supply potential • Evaluate economic viability of urban mills & assist with technical information Phase II - Secondary Manufacturers & the Market • Evaluate methods to describe urban wood raw material characteristics (i.e. “grades”) • Evaluate the Internet to facilitate emergence of urban wood markets • Develop directory of raw material suppliers and secondary manufacturers

  4. Challenges • Log Supply Potential • Uncertain volume in urban waste stream • Poorly defined raw material quality specifications • High log manufacturing costs and weak capital funding • Deficit of log processing knowledge • Secondary wood manufacturer’s demands? • Industry infrastructure lacking

  5. Estimating Urbanwood Availability in California

  6. Challenges • Log Supply Potential • Uncertain volume in urban waste stream • Poorly defined raw material quality specifications • High log manufacturing costs and weak capital funding • Deficit of log processing knowledge • Secondary wood manufacturer’s demands? • Industry infrastructure lacking

  7. 150 MBF-RG Cost Breakdown

  8. 150 MBF-KD Cost Breakdown

  9. 220 MBF-KD Cost Breakdown

  10. Wholesale Price Range vs. Cost Estimates per BF High Value Low Value HIGH COST LOW COST LOW COST

  11. After-tax Profit Scenarios 220-KD 150-KD 150-RD Value

  12. Challenges • Log Supply Potential • Uncertain volume in urban waste stream • Poorly defined raw material quality specifications • High log manufacturing costs and weak capital funding • Deficit of log processing knowledge • Secondary wood manufacturer’s demands? • Industry infrastructure lacking

  13. Inappropriate log storage (time and log deterioration) • High handling costs – no uniformity in log size, downtime problems (equip. maintenance, metal scanning) • Wasteful sawing practices (also saw for value or volume?) • Drying knowledge is limited for many species

  14. Challenges • Log Supply Potential • Uncertain volume in urban waste stream • Poorly defined raw material quality specifications • High log manufacturing costs and weak capital funding • Deficit of log processing knowledge • Secondary wood manufacturer’s demands? • Industry infrastructure lacking

  15. Promoting niche markets is the current focus of our project.

  16. “Urbanwood” Demand • Highly non-concentrated secondary manufactured products lines : • rough, green lumber of sub-grade dimensions • countless niche “figure wood” manufacturers (e.g., burl products, blanks, exotics with unique figure and color) • woodworking guilds and individual hobbyists • Potential substitutes for some traditional, non-commodity uses • Unrealized residue utilization opportunities (e.g., compost, pet bedding)

  17. Dense Hardwoods Walnut Ash Locust Acacia Elm Sycamore Orchard Trees CA Dense Hardwoods Madrone Tanoak Eucalyptus spp. CA Black Walnut (Claro) CA Laurel Unique Softwoods Monterey Cypress Monterey Pine Redwood High Value Potential

  18. Challenges • Log Supply Potential • Uncertain volume in urban waste stream • Poorly defined raw material quality specifications • High log manufacturing costs and weak capital funding • Deficit of log processing knowledge • Secondary wood manufacturer’s demands? • Industry infrastructure lacking

  19. Needs for “Urbanwoods” Market Emergence • Processing and business education -- access to technical information and assistance • Capital funding (e.g., initial govt. loan “supports”) • Niche marketing assistance (e.g., industry assoc.) • Market and distribution infrastructure • Identifying suppliers and buyers (Internet directories) • Brokering mechanisms (brokers, Internet transactions, cooperatives, etc.) • Raw material grading uncertainties

  20. The Power of the Internet • Disseminate technical & market information • Finding equipment and materials • Connecting buyers and sellers • Related Websites • www.woodweb.com • “This old woodpile” www.californiahardwoods.com • www.ecotimber.com • HFIA’s http://hawaii-forest.org/

  21. New urbanwood resource on UFEI websitewww.ufei.org

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