Cutting Edge April 2006

money Everyone knows about the import tidal wave of wood furniture that has swept away most of the U.S. furniture manufacturing industry. At last count, over 250 plants have been shuttered with the loss of over 60,000 jobs since January 2000.

But, given the vast forest resources in the U.S., what about the foreign trade status of other wood and forest products? By and large, with few exceptions, the U.S. imports far more wood and forest products than we export. Chart 1 shows the dollar value of wood and forest products exports and imports, excluding furniture and cabinets since 1996.

chart

These data include important product categories such as logs; lumber; veneers; panel boards like MDF, particleboard, and OSB; moulding; flooring; windows and doors; poles; and ties. In 1997, the forest products trade deficit was $5.67 billion. Last year, the deficit rose to $18 billion. Exports, nearly $7.2 billion in 1997, fell to $4.96 billion in 2002, before rising steadily to $5.85 billion last year. Interestingly, this three-year recovery involved all of the product categories with the exception of pulpwood, hardwood chips, OSB, particleboard and hardwood moulding. Leading export categories included logs and hardwood lumber – products that have low labor contents.

Let’s look at the trade situation in some important hardwood sectors:

Logs – Last year, the U.S. exported $582 million of hardwood logs versus $307 million in 1997. Canada purchased about 35% of these logs with nearly 20% going to China. Imports of hardwood logs totaled only $39 million last year, resulting in a $543 million surplus, up from $280 million in 1997.

Lumber – U.S. sawmills and yards shipped nearly $1.48 billion of hardwood lumber to markets around the world in 2005. Imports totaled $720.9 million creating a $758 million surplus. This surplus has declined from $1.08 billion in 1997 as the lumber supply from the world’s forests has grown. These competitors generally have low cost labor leaving U.S. mills as relatively high cost producers. Canada, who purchases nearly 28% of our hardwood exports, is the number one destination with China ranking number two at 13%.

Flooring – The U.S. housing boom has fueled record production of hardwood flooring by U.S. mills. This demand has also attracted competition from around the world. 2005 imports of flooring totaled $415 million, up from $76 million in 1997. China has captured 35% of this import total and has grown their share from $5.7 million in 1997 to $148 million in 2005. Much of this growth has come at the expense of Canada who has seen its share drop from 18% in 2003 to 4% last year. Canada is now suffering from an onslaught of Chinese competition across the wood products spectrum as their currency strengthens.

Moulding – Import growth in this category declined from 41% in 2004 to 4.5% last year. Yet with U.S. exports at $20 million, the moulding deficit was $312 million. Like flooring, the moulding market has seen China capture nearly 31% of all imports, with Canada dropping from 37% in 2004 to 29% last year.

What about higher labor content products?

Windows & Doors – The trade deficit in this sector has grown from $470 million in 1997 to $2.25 billion last year. Canada provides 68% of the $2.57 billion of imports while China trails with only 7.4%. Their geographic proximity, as well as ample forest resources, has clearly provided the Canadians an advantage in this product category.

Kitchen Cabinets – U.S. cabinet makers have thus far held foreign competition out of their market space. Imports total only $897 million in an $18 billion industry. The trade balance, however, is negative as cabinet exports only total $60 million. As with many value-added products, the Canadians shipped $543 million of cabinets to the U.S. and now have 68% of U.S. imports. Interestingly, however, their share has dropped from 88-89% in the late 90’s as the Chinese entered the market. In 2005, China’s cabinetmakers shipped $144 million of their products to U.S. buyers and captured 18% of the import volume. Anecdotal evidence abounds that more, lower-priced cabinets and vanities are being imported. U.S. cabinet companies are also increasing their use of imported components. Cabinets built from these parts are often marked “Assembled in the U.S.A.” and found at your local “big box” home improvement retailer. Trade data do not allow an accurate assessment of cabinet part imports, as these purchases are classified as Furniture Parts. This category has increased from $302 million to $897 million since 1997. With the concurrent decline of the U.S. wood furniture industry, one can easily conclude that many of the part imports are cabinet doors, drawer fronts, and face frame material.

The largest share of the forest and wood products trade deficit belongs to Canada. Shipments of Canadian products accounted for $12.26 billion or 68% of our 2005 deficit. Nearly 53% of their trade surplus comes from softwood lumber sales, much of which followed the decimation of the lumber industry in the U.S. Pacific Northwest during the 90’s.

China’s share of our deficit comes to 10.3% or $1.85 billion (not including wood furniture). Chinese shipments have grown from $340 million in 1997 to $2.32 billion last year.

Mexico, well positioned by geography and NAFTA, has seen its exports to the U.S. decline from nearly $440 million in 1997 to $339 million last year. As a result, the U.S. is now running a trade surplus with Mexico in forest and wood products (not including furniture).

Bottom Line: The trend is clear. Many countries with low labor costs and access to competitively-priced wood have grown their shipments to the U.S. market by 86% since 1997. Add wood furniture into this equation, and the results worsen. The only products with a trade surplus are hardwood logs and lumber, and the lumber surplus is declining. Keep your eyes on the trade situation in the cabinet sector for signs of strengthening imports of parts and assembled units.

Economic Factoid

According to insurance consultants Tillinghast, the cost of the U.S. tort system is $260 billion, about equal to the annual sales of Wal-Mart and 2.25% of gross domestic product. For every man, woman and child, the cost of compensating the injured and wronged runs $900. The Council of Economic Advisors claims that the U.S. system is the most expensive in the world, running more than

Sector Report

Kitchen Cabinets
Cabinet sales rose 17.2% in February versus the same month in 2005 according to the KCMA’s Trend of Business Survey. For the year to date, sales were up 14.5%. This increase covered all product categories: custom sales were up 17.8% for the year; semi-custom, up 13.5%; and stock, up 14.8%.

At the producers…

Masco reported cabinet sales of $842 million in its Q42005, up 5.5% over the same period last year. Operating margin was 15.2%, down from 18.4% last year owing to energy costs and currency exposure at its European operations. Sales of lower-priced ready-to-assemble cabinets declined. Analysts attributed this weakness to the impact of higher interest and energy costs on lower income buyers. Can this downtick at the largest U.S. cabinetmaker portend a trend in this critical industry sector?

American Woodmark, the third largest U.S. cabinetmaker, reported Q32006 sales of $191 million, up 4.3% year-over-year. Gross margin fell from 18.8% to 17.5%, and operating margin dropped to 5% from 6.3%. The company is exiting $90 million of lower-margin sales sold primarily through Lowe’s, the big box retailer.

Home Furniture

More Anti-Dumping News…
The Canadian International Trade Tribunal (CITT) will not investigate anti-dumping charges brought by that country’s furniture makers against China without further information. Last October, the Canadian Council of Furniture Manufacturers requested that safeguard measures be implemented for three years to give the industry time to adjust to increased competition. The CITT indicated that insufficient information was provided to support the claim of market disruption.

Furniture makers in Germany and Italy are preparing to file anti-dumping complaints with the European Commission accusing China of selling upholstered products at unfairly low prices. The two countries account for over half of the EU’s furniture production. Retailers that rely on cheaper Asian imports are expected to fight this filing.

U.S. companies that filed an anti-dumping claim against Chinese wood bedroom producers were awarded $144,159 in February as their share of the $116 million of import duties collected through October 2005. The 24 U.S. furniture producers also sought a further investigation of 56 Chinese companies that they claim are selling goods below cost. Additionally, the Department of Commerce is conducting an administrative review of the earlier anti-dumping duties.

And finally, Congress has repealed the Byrd Amendment that distributed import duties collected as a result of anti-dumping actions to the U.S. manufacturers who supported the imposition of the tariffs. Since its inception in 2000, this law has paid out over $1.26 billion to companies in various industries claiming to be hurt by low-cost imports. Payments will end on October 1, 2007.

Ashley No. 1…
Furniture Todayreported that Ashley Furniture, the integrated manufacturer/ importer/ retailer based in Arcadia, WI, is now the No. 1 furniture company in the U.S. The company’s $2.72 billion in 2005 sales edged out formerly number one Furniture Brands International, whose sales declined 2.4% last year.

News among U.S. furniture producers remains mixed…

Prestige Wood Products has acquired casegoods maker Eagle Industries of Bowling Green, KY. Prestige is a just-in-time supplier of wood products and Eagle’s top materials vendor.

Broyhill Furniture announced the closing of its Marion, NC, frame plant. The plant will cease operations in late May, and the 187,288 ft2 factory will be sold. The closure will affect 72 workers. The company blamed the shutdown on the impact of globalization and a shift of frame making to the upholstery plants. Broyhill’s parent, Furniture Brands International, has directed an increase in imports.

New company Linwood Furniture has acquired Lexington Furniture’s Plant No. 2 in Lexington, NC. One of Linwood’s owners is artist Bob Timberlake whose licensed furniture line was made by Lexington at Plant No. 2 prior to its close in December 2005. The new owners will invest more than $5 million in the 550,000 square foot plant. At its peak, the plant employed 550 workers and produced $60 million.

Bassett Furniture announced that its sales rose 7.1% in 1Q2006, but net income fell by 2.3%. Management attributed the decline in profits to higher operating expenses at its company-owned retail stores. Shipments to the Bassett Furniture Direct stores now represent 70% of total company sales. The retail operation currently has 133 stores of which the company owns 27. A new team has been formed to manage these stores. The company plans to open 12 to 14 new stores by November.

O’Sullivan Industries, which has been operating under Chapter 11 bankruptcy protection since last October, has filed a reorganization plan. Under the plan, the company will emerge from bankruptcy in a few months with much of its current debt converted to equity.

Chromcraft Revington said that its 4Q2005 sales fell by 2.3% and earnings by 21%. For the full year, sales were down 1.6% to $169..6 million. Strong cash flow, however, enabled the company to pay off its bank debt. Management is now focused on revitalizing its brands – Peters-Revington, Chromcraft, Cochrane, Sumter Cabinet, and Silver.

La-Z-Boy announced that its 3Q2006 sales declined 0.9% to $502 million. Net income also fell by 5.6%. Its company-owned retail stores reported that sales increased by 29.6%. However much of that growth was attributable to acquisition of several stores. The company operates 64 of the 335 Furniture Gallery stores. While the company is increasing its use of cut-and-sewn covers from China, CEO Kurt Darrow indicates that American upholstery production is not going the way of wood furniture. He attributed the ability to provide customization and fast delivery at competitive prices as the industry’s defense against foreign sources.

Harden Manufacturing of Haleyville, AL, has sold a majority ownership stake to Linsalata Capital Partners, a private equity firm based in Cleveland, OH. The company, founded in 1972, is a manufacturer of promotional and mid-priced bedroom, dining room, and home entertainment furniture.

Shermag, Quebec-based manufacturer and importer, announced a net loss of C$4.3 million for its 3Q2006. Revenues were down by 31.9% versus the same period a year ago. For nine months, sales declined 15.1%. The company has closed several manufacturing facilities in an effort to balance capacity with demand. Its U.S. exports fell nearly 35% due to the stronger Canadian dollar.

Stanley Furniture reported a decline in its 4Q2005 sales, but a 9.1% increase for the full fiscal year. Earnings were up 11.7% for the year. The company is forecasting 2006 sales of $340 to $350 million

Office Furniture

BIFMA reported that February orders increased by 10% and shipments grew 9% versus the same month in 2005. On a trailing twelve-month basis, orders grew 11% to $10.3 billion. Likewise, shipments jumped by 11.3% during the same period. At $10.2 billion, annual shipments are now about 21% higher than the market bottom of $8.47 billion in November 2003. Analysts expect some leveling off from the strong results experienced in late 2005 with growth rates moderating to 4.5%.

Steelcase reported 4Q2006 sales up by 7% compared to the same period last year. North American sales rose by 9.8% while international revenues grew by 6.2%. Gross margin also improved to 29.7%; operating profit, to 3.2%. Management is calling for a 7 to 11% sales increase in the 1Q2007. Total manufacturing space is scheduled to drop from five million square feet from 14 million as a result of implementing lean production techniques.

Herman Miller saw its 3Q2006 sales rise by 10.9% to $424 million. Gross margin was 32.5%, slightly above the same period in FY2005. Orders and backlog improved significantly year over year, with order up 16.6% and backlog 11.9%. Operating margin also grew to 8.7% from 7.6%.

Wood Flooring

February 2006 shipments of strip flooring rose by 9% compared with the same month in 2005. Year to date, the industry has shipped 7% more flooring than in the first two months of 2005.

Public Policy

For the last several years, when the WMMA Public Policy Committee has gathered in the fall to decide on our priorities for the upcoming year, the discussion regarding health care has been the same each year. We all agree that health care costs are the number one contributor to overhead expenses. Yet, there seems to be no interest in Congress in grappling with the underlying problems of our health care system. So, at some point in the discussion, some one will ask “Why do we bother putting it on our top five list?” It is frustrating.

I read a report the other day from the General Accounting Office (GAO) that confirms what we all know from first-hand experience. The GAO analyzed total compensation costs for employers for the last 15 years. After controlling for inflation, the average cost of total compensation (comprising wages and benefits) for employers grew by 12 percent between 1991 and 2005, but increases in benefit costs outpaced wages in the most recent years. The real costs (inflation-adjusted) of total benefits, which represented roughly a quarter of total compensation, grew by approximately 18 percent, while real wages grew by 10 percent. Wages and benefits increased by about the same percentage from 1991 to 2002, after which time wages began to stagnate and benefit costs continued to grow. In addition, since 2002 increases in benefit costs outpaced wages among all types of employers.

The increase in the cost of a total benefits package from 1991 to 2005 was largely composed of increases in the cost of providing health insurance and retirement income. In combination with paid leave, these benefits comprised almost 60 percent of benefit packages. Paid leave had traditionally been the most costly benefit to employers, but by 2005, the cost of health insurance equaled that of paid leave. This occurred, in part, because health insurance costs, adjusted for inflation, grew by 28 percent since 1991, while the costs for paid leave grew by only five percent. Of the three benefits, retirement income was the least costly, even though it grew by an estimated 47 percent during the period, largely between 2003 and 2005. Some benefit cost increases were greater for certain types of employers and employees. While large establishments saw a 34 percent increase in health insurance costs between 1991 and 2005, medium-sized establishments saw an increase of 45 percent.

One solution on the table is association health plans legislation. Last year, the House passed a bill to allow associations to offer health care insurance on a national scale without having to meet the mandated benefit standards of each state and without having to comply with state insurance regulations. The plans could also be self insured. The Senate has never been willing to go along and the “lead horse” in the Senate, Senator Mike Enzi (R-WY), indicated last year that he would try to pass a different bill to accomplish the same goal.

Senator Enzi has secured his Health, Education, Labor, and Pensions Committee’s approval of his bill, S. 1955, the Health Insurance Marketplace Modernization and Affordability Act of 2005. Senator Enzi’s bill does not permit self insurance and keeps the states as the primary regulators. However, his bill does allow associations to offer health insurance without regard to any one state’s mandated benefits. As a condition, the association must offer one plan that offers as many benefits as one plan offered by one of the five most populous states (Texas, Illinois, Florida, California, or New York) to their own state employees. The "full benefits" plan must be offered, but the association also can offer other plans without all the benefits. On balance, it is hard to see how the Enzi approach would allow associations to compete since they would still have to deal with state regulation.

The principal objection is that the plans will not provide appropriate coverage for the old, children, and/or will result in “two-tiered” pricing and rating. Many of the amendments offered by Democrats in committee were to require certain benefits be included in any plan offered by an association. Certainly, if one of the versions of this concept becomes law, that will be one of the challenges for any provider—offering the right mix of benefits and coverage with which employers and employees will be comfortable and still yield some price savings. While opponents suggest that employers will abandon all but the most essential benefits and coverage, it is hard to imagine employers will not be realistic in assessing what their employees need to feel comfortable with the level of health care coverage being offered.

Most Democrats oppose Enzi's plan and it is hard to see how he is going to be able to clear the bill through the entire Senate. It will surely be the subject of a filibuster and thus require 60 votes. Many in the House feel that if he can secure a vote on any bill, they can improve upon the results in a conference committee. At the moment, it is the only health care reform game in town.

All teleconferences are scheduled for 11:00 – 11:45 am ET. Call toll-free 1-888-577-0004, Pass code 7252#.

You have the option of deciding who participates. No need to RSVP. All we ask is that you bear in mind that we want to be as candid as we can so the information is useful. By participating in the teleconference, you agree not to record the presentation, nor to quote or attribute comments to speakers.

WMMA® proudly offers this as a member benefit . You can now call the Law Offices of John Satagaj to ask that burning question, and – best of all – it will not cost you anything. That's right. This is a FREE WMMA® benefit.

Most members of WMMA® are familiar with John Satagaj and his retired partner, Shelly London. John’s firm is the long-time Legislative Counsel for WMMA®. What you may not know is that John is a well known expert in various legal subjects which you might encounter every day in your business.

John has a special Masters of Law degree in taxation and has advised IRS commissioners on business tax issues. He has provided information to thousands of business owners over the years on a vast array of topics. Moreover, he knows and understands the woodworking equipment, cutting tool, and supply industry.

John will answer your questions, in confidence, on just about any topic. In the employment field, for example, it might be a question about the Family and Medical Leave Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act, or how to handle termination decisions.

This is INFORMATION SERVICE only. The Law Offices of John Satagaj cannot provide you with legal advice or counsel. It is not a substitute for your local advisors. They will NOT respond to emails or written inquiries for this service, but they are just a telephone call away. They can be reached at (202) 639-8888.

Call The Law Offices of John Satagaj today with details about your particular question in the tax, H/R, legislative, regulatory, legal or general business fields. Take advantage of another great membership benefit from WMMA®.

International Business Development

The basis for this article is the Global Trade Atlas® and World Trade Atlas®, online services provided by Global Trade Information Services, Inc. Through a unique arrangement with GTIS WMMA members can gain access to this powerful data service FREE! This new member benefit is a savings to you of $1,500 - $15,000 per year, depending upon the number of codes and countries you track! To get started contact Mary Ann Boukalis, Global Trade Information Services, Inc. at (202) 785-1755 or mab@gtis.com . Again, you must be a current WMMA member to receive this offer. If you have additional questions, contact Harold Zassenhaus, (301) 652-0693 or at hzassenhaus@fernley.com.

The following is a summary of major trends of US exports and imports for calendar year 2005. Statistics are reported for all woodworking equipment and its three component parts: machines, cutting tools and, accessories and parts.

(WMMA members: to view detailed tables on US imports and exports of machinery, cutting tools and parts and accessories, by country, click here and scroll down to the spreadsheets listed under the heading “US Imports And Exports Of Woodworking Machinery, Cutting Tools And Accessories”. You will need your user name and password. If you don’t have one or forgot it, contact WMMA Headquarters at 215-564-3484 or wmma@fernley.com).

Total Woodworking Equipment Market
Imports of woodworking equipment (machinery, cutting tools and parts and accessories) slowed somewhat in the last quarter and wound up the year at $1.75 billion or 11% higher than in 2004. China became the largest supplier nation in 2005 with shipments falling just short of $400 million, a 16% increase over 2004 and about $40 million more than from Taiwan. Again, the large majority of Chinese imports are small commercial products, such as simple mitre saws, scroll saws, band saws, etc. each valued at under $1,000. However, the Chinese are increasingly producing and exporting more sophisticated and industrial grade machinery.

Imports from leading European suppliers continued their trend of increasing at a healthy rate. Germany in particular recorded a significant rise in shipments with imports increasing 19%.

Equipment exports recorded robust growth during the fourth quarter pushing the year total to $323 million, a 9% increase over 2004. Canada continues to purchase over 40% of our exports, although its influence has steadily decreased over the past 3 years. Exports to Mexico grew a surprising 50% to $36 million in 2005. Australia and Germany rounded out the top four destination markets --- exports to Germany growing by a surprising 86% while shipments to Australia dropped by 23%.

Machinery Trade
Imports of machinery fell just shy of $1 billion. For the year machinery imports grew by just 4%, dramatically slowing in the fourth quarter compared to last year. Imports from both Taiwan and China decreased compared to the prior year. However, shipments grew strongly from some of our other major suppliers like Germany (up 20%), Canada (up 32%) and Austria (up 26%). Shipments from Mexico leapt to $46 million compared to $1 million in 2004 as the US imported $37 million in mitre saws and $8 million in tilting arbor saws

Exports increased by a healthy 13% to $173 million boosted by shipment increases of 18% to Canada and 31% to Mexico, our 2 main markets. Exports to Germany, although low in dollar terms increased by 75%. Uruguay was also a major destination. However, the majority of exports were of used machinery.

Cutting Tools
Cutting tools imports continued to increase by a double digit rate, rising 21% over 2004 to $515 million. China, which shipped $111 million to the US, is our largest supplier with 22% of the import market. Germany is a distant second with $62 million or a 13% share.

Exports increased marginally for the year to $99 million. Canada still accounts for 50% of shipments.

Parts & Accessories
Exports increased by 13%, reaching $51 million with shipments to Canada accounting for 58% of the total or $29 million.

Imports continued the 2004 trend of recording double digit growth, rising 24% to $253 million. Imports from China continued to outpace all other major suppliers increasing 146% to $57 million. Imports from Germany, our 2nd largest supplier, rose 23% to $35 million. Shipments from Canada rose 16% to $34 million while imports from Israel, always a major supplier, reached $30 million.

1. WMMA Pavilion in VietnamWood 2006
Ho Chi Minh City, Vietnam October 19-22, 2006. Sign up Deadline is June 30th.
See below for more information.

2. Plant Tours/In-Country Briefings
In conjunction with VietnamWood 2006, the WMMA will organize a series of plant tours and briefings with dealers, end users and the US Foreign Commercial Service to gain a fuller understanding of market trends and marketing opportunities. There will not be a charge for the service; however, members will be responsible for their out of pocket travel and related expenses.

Opportunity to Exhibit in WMMA Pavilion: VietnamWood 2006, Ho Chi Minh City, Vietnam October 19-22, 2006

A principal activity of WMMA’s International Business Development Committee is organizing WMMA pavilions in some of the world’s best known international trade fairs, as well in regional shows that offer excellent opportunities for members. We are organizing a member pavilion in the above fair. The sign-up deadline is June 30th. Do not delay – space is limited!

This unique exhibit service allows members to conserve costs and time, enhance exposure and gain support from fellow members and the WMMA staff. Exhibiting members services include:

In addition, the WMMA will have its’ own booth at VietnamWood at which it will be advertising members’ products and services. Members who want to share the booth can do so for $200. This entitles members to display literature, run product videos and/or work out of the booth. All participants will receive a summary of the event, a copy of the exhibition catalog and leads generated.

Cost: The cost for a walk-on package*: $220.00/sq. meter, 9 sq. meter minimum. This amounts to a 20% discount. Members can increase their booth by multiples of 3 sq. meters.

How to Apply for Space: Complete space contract form found here or contact Harold Zassenhaus, WMMA Export Director, at (301) 652-0693, fax (215) 963-9785 or hzassenhaus@fernley.com.

VietnamWood 2006, Ho Chi Minh city, Vietnam, October 19-22, 2006
Size (2005): 7,000 sqm.
Attendance (2005): 12,900
Exhibitors (2005): 400
Website: http://www.linkage-vn.com/hcm/wood/brochure2006.asp)
Comments: The fair is the most important in 2006. It has been growing and is now endorsed by EUMABOIS, the European Federation of Woodworking Machinery Manufacturers Associations, guaranteeing participation of most European suppliers. About 85% of fair visitors came from Vietnam with the remainder coming from other Asian countries.

** To see how the WMMA enhances exhibitors’ ability to attract visitors, click here to view designs of WMMA pavilions in past overseas fairs.

Spotlight on Member Benefits

As a WMMA Member, you are invited to download a copy of the
2006 E-Business Trends in Manufacturing Report at http://www.svmsolutions.com/survey.
SVM performs an annual study of industrial marketing executives to gain insight into the key online marketing trends that are impacting manufacturing companies.This year's study was a great success with over 220 industrial marketers participating.

Download the report to learn:

Why most manufacturers consider their Website to be their most powerful marketing tool
The top online marketing initiatives for 2006
The most effective ways to generate leads
Why online marketing ismore effective than traditional marketing
How to achieve e-business success
Thebest ways to measure online marketing success

After you review this report, we are most interested in your feedback. Please feel free to contact David Smith with any questions or comments at 877-786-3249 or dsmith@svmsolutions.com.
If you feel a colleague would benefit from this information, please feel free to forward this invitation to a friend.svmsolutions.com

Another WMMA Member Benefit: EcoChat from ITR

What if you could stay current with what is really happening in the US economy by listening to a CD? Even better, what about multi-tasking, listening while driving to and from work?

The Institute for Trend Research (ITR), publishers of the monthly economic report EcoTrends, have launched a new report format - EcoChat (click here for a sample). EcoChat is produced quarterly in CD format. Subscribers to EcoChat can listen in on an informal meeting of the ITR economists as they talk about important issues relating to the economy and business. This new format allows ITR to respond to many questions that arise from what is reported in the news.

These forty-five minute conversations cover a wide range of timely economic topics on issues that directly impact your business. Each edition provided an overview of the US economy and a view of what is coming over the next 3-4 quarters. In addition there are specific discussion about topics such as energy costs, the impact of China's growing economy on the US, the truth about the housing 'bubble', what industries have potential in the future and what does the rest of this decade look like for US businesses? An audio sample of EcoChats is available on the WMMA website for your convenience.

These quarterly CD's are available in the months of March, June, September and December.
WMMA Members: Subscription cost $59.00 (Subsidized by WMMA)
Non-Members/Subscribers: Subscription cost $249.00

Sign up today!

Call ITR at 603-226-9331 and identify yourself as a WMMA Member

Association News

WMMA Joins Treated Wood Council

wood Effective March 29, 2006, WMMA has been elected as a member of the Treated Wood Council (TWC). The mission of the Treated Wood Council is to serve all segments of the treated wood industry in the field of government affairs. The Treated Wood Council now serves 290 organizations: 147 treaters, 66 wood producers,5 preservative manufacturers, 4 associate members and 68 allied associations.

WMMA Website: Members Only Area Updates

computer The International Business Development section in the Members’ Only Area constantly changes as programs are rolled out or modified and noteworthy news is collected. The following summarizes recent updates to the section. To access the links, WMMA members will need their username and password. If you don’t know your username and password or have forgotten it, contact WMMA Headquarters at (215) 564-3484 or wmma@fernley.com.

New Member Benefit
Free Subscription to GTIS global import and export data - a $1,500 - $15,000 savings!!
Click here for details.

News Affecting Your International and US Markets
Recent News Affecting Your Company (Links to market research reports, marketing techniques and other news affecting international and US markets)
Market Research reports posted on Belgium, Italy, Romania, Russia, Poland, Indonesia, Denmark and Mexico. ---

Export Manual
(Comprehensive guide and reference source by and for woodworking equipment manufacturers launched in the fall of 2005 and updated quarterly)
New 2005 WMMA Export Manual --- The EU WEEE and RoHS Directives (new chapter)

International Trade Fairs
(Comprehensive listing and information on major international trade fairs)
2006 International Trade Fair Calendar --- Updated in February
2007 International Trade Fair Calendar --- Posted in April

Global and US Trade Statistics
(Official US and 47 country government trade stats providing market trends for machinery and well as end products)
US Imports of Wood Furniture, 3rd quarter 2005 --- Posted in March

US Imports and Exports of Woodworking Equipment
(Latest official Government trade figures)
05 yr equip by type
05 yr equip by country
05 yr machines by country
05 yr cutting tools by country
05 yr parts and accessories by country

International Distributors Directory
(WMMA’s own comprehensive listing of over 700 dealers in over 48 countries)
International Distributors Directory --- Over 200 records updated or added since October 2005!

Have Questions About Exporting? Link to WMMA’s Export
Director --- Export Assistance – Link to WMMA(R) Export Director

Contents

Cutting Edge Newsletter™ April 2006

Business Briefing

Public Policy

International Business Development

Spotlight on Member Benefits

Association News