|
Click here to return to this month's Article Index The Cutting Edge™ November 2004International Business DevelopmentWoodworking Equipment and Wood Product Global Trade Flows In addition to the ability to track US imports and exports of woodworking machinery, cutting tools and parts and accessories, the WMMA now has access to the official import and export statistics of 47 of our major trading partners. The 47 countries account for virtually all trade in woodworking machinery and over 90% of trade in furniture, wood products, lumber and veneer. For a complete listing of the 47 countries, click here. For a complete listing and description of imported and exported products covered click here. You will need your user name and password to access the linked tables. If you don't have one or forgot it, contact WMMA Headquarters at 215-564-3484 or email wmma@fernley.com). The data from the 47 countries is comparable and based on a universally accepted 6-digit Harmonized System (HS) of customs classification codes. If there is a downside to the expanded data subscription it is that 6-digit HS codes for woodworking equipment in particular do not differentiate between machinery used for working wood, cork, rubber or hard plastic. Nor does it allow us to identify trade flows of woodworking cutting tools, parts or accessories. What follows is a basic albeit lengthy report on trade flows of woodworking machinery, furniture, builders' joinery (mostly windows and doors), continuously shaped wood (mostly moulding and flooring) and lumber and veneer. Members can visit the International Business Development Committee site for detailed trade flow tables on each of these product groupings going back to 1998. Members can also ask me for more detailed information (e.g., Brazil's exports of mouldings) and I can provide them with customized spreadsheets. Also included below is a summary of US export and import trends of woodworking equipment. This report is in the same format as previous quarterly reports and, as in the past, members can go to the Members Only area on the WMMA website, for more detailed US import and export statistics.
- 2004 Quarter 3 Equipment by Type As a final comment, the information now available is extensive. The review that follows is only my assessment of what should be provided to all members and readers of The Cutting Edge. Please let me know what you think of it and please suggest other or additional data you would like to see on a periodic basis. I can be reached at phone (301) 652 0693; fax (301) 986 1389; email zemg@erols.com. Woodworking Machinery Global exports of woodworking machinery reached $5.4 billion in 2003, an increase of 13% over 2002. Germany exported $1.6 billion, followed by Italy with $1.1 billion. Behind Italy in descending order were Taiwan, Japan, China, Austria and the US. In the 1st quarter of 2004 exports increased 27% with major suppliers Japan and China reporting significant increases of 55% and 31%, respectively. Just as importantly is the destination of the $5.4 billion exported in 2003. Clearly, the US was the largest destination of the 47 reporting countries with 16% of total shipments or $839 million. Surprisingly, according to export statistics of the major country producers of woodworking machinery, China was the 2nd largest destination. Exports to China reached $484 million, a 57% increase over the 2002. From January-March 2004 China was the magnet of an increasing amount of machinery; $155 million worth, a 60% increase period over period. The following is a listing of major woodworking machinery importers for the 1st quarter of 2004:  For more detailed spreadsheets
on woodworking machinery trade flows: US Woodworking Equipment Trade Trends The following is a summary of major trends of US exports and imports for January - September 2004. Statistics are reported for all woodworking equipment and its three component parts: machines, cutting tools and, accessories and parts. To view
detailed tables on US imports and exports of machinery, cutting tools and
parts and accessories: ExportsExports of woodworking equipment (machines, cutting tools plus parts and accessories) grew 7% to $220 million, continuing the trend began last year. Shipments to Canada, our largest customer, remained constant ($94 million) but grew by 85% to Australia ($16 million), 121% to Chile ($10 million), 43% to China ($7 million), 72% to New Zealand ($4 million) and 89% to Singapore ($4 million). This is a strong indication that members are taking advantage of international opportunities in less traditional markets. As shown by the analysis in the section above, there are other markets in which our members should be competitive and could grow revenues as well.
Imports Total imports for the first nine months rose 10% over the same period last year to $1.1 billion. Imports from Taiwan and China accounted for 50% of imports with China's shipments increasing 33%. To date, China has not been able to significantly crack into industrial or heavy commercial equipment. The majority of shipments are made up of small miter saws, band saws, table saws, scroll saws and routers.
Wood Furniture Trade Trends In 2003, wood furniture imports from the 47 reporting countries (accounting for over 90% of global furniture imports) totaled over $32 billion, an increase of 18% over the previous year, with China supplying over 21% of the global market. The trend continued in 2004 as imports grew by 20% to reach $9.1 billion for the 1st quarter. Click here for more detailed spreadsheets. The following table shows those countries whose shipments increased greater than the global average for the 1st quarter of 2004:
As you can see, the list is large but of particular note are Vietnam, Brazil, India, Russia and the majority of Eastern Europe nations. Vietnam. From almost nothing five years ago, the tiny country is now one of the top 15 wood furniture supplying nations in the world. According to a report from the Vietnam's Forest Development Department, there are more than 1,500 enterprises involved in wood processing and trading. About 450 companies are active furniture exporters, with about 120 companies focusing on outdoor furniture, while 330 manufacture indoor furniture. The WMMA is planning to organize a pavilion in Vietnamwood, Vietnam's largest woodworking equipment fair to take place October 19-22, 2005. Stay tuned for more details shortly. Brazil. Like Chile and New Zealand, Brazil has large reserves of Radiata pine and Eucalyptus. Unlike the other two, it also has huge reserves of tropical timber and a diverse and growing wood products industry. While competition from domestic manufacturers, ever changing customs regulations, and inconsistent enforcement make trade difficult, the country offers significant opportunities to many of our members. China. The largest exporter of wood furniture has become a powerhouse and will continue to be one for quite some time. Whether it can continue to increase output by double digits is dependent upon a number of factors many of which will come under increased pressure in the next 1-2 years. These factors include:
Russia and Eastern Europe. There are a host of East European countries which are now supplying the needs not only of West Europe but of the US as well. Russia has the world's largest forest reserves and infrastructure improvements and economic growth over the past five years or so make it a solid developing market. Many European furniture manufacturers have shifted production to the east and the results are there to see. While WMMA members face significant challenges in entering the market, there are good opportunities in the region. The WMMA is planning to organize a pavilion in Russia's most significant woodworking equipment trade fair, Lestechprodukzia/Woodex October 11-14, 2005 in Moscow; stay posted for details. India. A growing industry base, a growing and "liberating" economy along with relatively low wages and high productivity rates makes India a good potential market. To add to the mix, language is not an issue and most producers have experience in dealing with Americans. Windows, Doors and Other Types of Builders' Joinery In 2003 and again for the first six months of 2004, the largest suppliers to the 47 reporting countries were Canada, Germany, Denmark, China, Austria, Sweden, Indonesia, Poland and Brazil, in addition to the US. Together the 10 countries accounted for 58% of reporting country imports. Canada's share, for the first time dropped below 20%. Particularly fast growing major supplier countries included the following:
For more detailed spreadsheets on shipments of builders' joinery click here. Mouldings, Flooring and Other Continuously Shaped Wood The 47 countries on which we are tracking shipments (comprising over 90% of the world's wood product producers and users) continue to increase their sources of supply. The combined 2003 imports amounted to $3.3 billion, 16% over 2002. For the 1st quarter 2004, imports expanded by 22% year over year period to reach $900 million. The biggest surprise in the last two years is the phenomenal growth in imports from China. Shipments from China to the other 46 countries increased four-fold during the 1998-2003 period, and in the first quarter 2004 grew again by 52%. China is now the largest shipper of continuously shaped wood to the world and has a 12% market share. Other notable high growth suppliers are noted below
For a detailed spreadsheets on moulding and flooring imports click here. Lumber and Veneer (Sawn wood) Trade in lumber and veneer approximated $22 billion in 2003, a 7% increase over the previous year. For the first six months of 2004 exports by the 47 reporting countries (estimated to be about 90% of the world's total) approached $13 billion, largely due to a 39% increase in shipments by Canada. The following larger supplying countries witnessed significant export growth since 2002. For additional detailed spreadsheets on exports by reporting country of sawn wood, please click here.
Table of Contents
|
