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Global Demand for US Hardwood Exports. The American Hardwood Export Council (AHEC), founded in 1988, is an umbrella organization that represents U.S. hardwood exporting companies and major U.S. hardwood product trade associations.
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The American Hardwood Export Council (AHEC), founded in 1988, is an umbrella organization that represents U.S. hardwood exporting companies and major U.S. hardwood product trade associations. The purpose of AHEC is to increase the value and volume of U.S. value-added hardwood exports through overseas market development and promotional activities and increase consumption of wood worldwide. What is AHEC?
Fourth largest market for hardwood production after pallets, furniture, and dimension/components This gap is widening. Since 1983, exports of value-added hardwood products have increased an average of 6.4% by volume and 10.1% by value per annum. Why Exports Matter • Absorbs approximately • 9% of production by • volume, but over 14% • by value
U.S. Hardwood Exports1986-2002 $ Million AHEC Formed
Top 10 Markets for Hardwood Lumber: 1990 & 2002 Source: USDA
Top Markets for Red Alder Lumber: 2000-2002(Cubic Meters) Source: The World Trade Atlas
Value of Hardwood Lumber Exports to Japan1995-2002 ($ Thousand F.A.S. Value) Source: US Census Bureau
Japan Market Overview • Until late 1990’s Japan was second largest market for U.S. hardwood products; • Manufacturing moved offshore, required shift in promotional strategy; • AHEC’s focus moved from promoting to manufacturers and traders to specifiers (interior designers/architects) and consumers via event driven public relations
Japan’s Furniture Imports Custom statistics, JapaneseMinistry of Finance
Value of Hardwood Lumber Exports to Korea1995-2002 ($ Thousands F.A.S. value) Source: US Census Bureau
Market Challenges/ Opportunities • Relocation of Manufacturing Facilities Offshore • Emerging remodeling market segment • --Government removed “cap” on resale prices • Price sensitive • Untrained specifiers and designers AHEC/AF&PA Korea Office September 2002
US Hardwood Exports to China • Year to year increase of nearly $34 million over 2002 • Volume of lumber exports increase more than 62% ($ Thousands FAS value)
China: Hardwood Import Market Share Source: Global Trade Index
Top Five Lumber Species Exported to China ($ Thousands FAS value)
Demand Drivers • GDP and Population Growth • Rising Income • Construction • Furniture, Architectural Woodwork and Packaging • Relative Price Competitiveness with Other Materials • Historical and Cultural Factors • Consumer Tastes
GDP Growth% Change from Previous Year Source: The World bank..
Chinese Consumption:Did You Know….? • GM sold more cars in Shanghai than any other city in 2002 • China buys more camera equipment than Japan. • More cell phones than the U.S. • More televisions than France. • More cars than Germany
Real Estate Boom • Housing Privatization-1999 • “Turnkey” Construction-2002 • Increasingly sophisticated • and wealthy consumers driving • domestic demand for higher • quality interior products.
Chinese Building ActivityTotal Floor Space In Billions of cubic meters Source: Chinese Ministry of Construction, 2001
Quality Sample Program Interior of model home in Shanghai outfitted with U.S. hardwoods
Chinese Furniture Production and Exports: 1997-2002 Billion $US Source: China National Furniture Association
Major Furniture Exporters:1998-2001 $US Billion . Source: CSIL Milano
Per Capita Wood Consumption In cubic meters per capita Source: China Timber Import Export Co/Hardwoodmarkets.com 2001
China Domestic Timber Output Under NFCP Source: China Timber Import Export Co/IFSA Consulting, 2001
China Timber Production from Plantations 1995-2015 Volume (1000 Cubic Meters) Source: China Timber Import/Export Co., 2001
Chinese Timber Consumption and Production: 2000-2010 Millions of cubic meters Source: China Timber Import Export Co., 2001
US Hardwood Log Exports to China: 1997-2002(Thousands of Cubic Meters) Source: USDA-FAS
Other Markets to Watch • Southeast Asia/Vietnam • Middle East • Mexico • Caribbean • **The EU**
Hardwood Lumber Exports by Volume - 2002 (m3) Source: US Census Bureau
US Hardwood Lumber Exports by Value 2002 ($1,000) Source: US Census Bureau
Average Unit Values of Hardwood Lumber Exports 2002 ($ per cubic meter F.A.S. Value) Source: US Census Bureau
Eastern European Hardwood Exports to European Union(million euros) Source: Hardwoodmarkets.com
www.sustainablehardwoods.info www.ahec-europe.org
S.E.Asia: Market Overview Million US$
US Exports to Vietnam Million US$
Value of Hardwood Lumber Imports to Mexico1996-2002 ($ Thousands F.A.S. value) Source: US Census Bureau
US Hardwood Lumber Exports by Volume - 2002 (m3)Under-promoted Markets Source: US Census Bureau
For additional information contact: AHEC Headquarters 1111 19th Street, NW, Suite 800 Washington, DC 20036 Phone: 202/463-2720 Fax: 202/463-2787 www.ahec.org