Daily News for February 09, 2021

Today’s Takeaway

8 of 10 Canadian provinces post single-family construction gains

February 9, 2021
Category: Today's Takeaway

Residential construction in Canada continued to show strength for the 3rd straight month in December; while the share of US buyers purchasing homes reached a three-year high. Companies making headlines include: Pinnacle (Drax bid); Kruger Products (energy investment); Resolute (virtual office); Vicksburg Forest Products (mill expansion); Ritchie Bros. (management change); and Simpson Strong-Tie (record 2020 sales).

In Climate Change news: U of West Virginia researchers signal importance of forests; UK scientists warn misuse of climate models; and Forests2Market says industry should embrace the climate conversation. Meanwhile: BC pauses Spallumcheen logging proposal; bark beetle outbreaks threaten Colorado forests; and California addresses the treated wood waste issue.

Finally, CWC announces a Wood Wellness Summit on health-centred living using wood.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Ritchie Bros.’ president, international Karl Werner is departing

By Ritchie Bros. Auctioneers
Cision Newswire
February 8, 2021
Category: Business & Politics
Region: Canada, International

Karl Werner

VANCOUVER, BC — Ritchie Bros. announced that Karl Werner, President, International will transition out of the Company to pursue personal interests, effective March 31, 2021. As a result of Mr. Werner’s departure, Kari Taylor, President, North America Sales, will take on the newly created position of Chief Revenue Officer to focus on driving sales growth globally. “We want to thank Karl for his 25 years at Ritchie Bros.”, commented Ann Fandozzi, Chief Executive Officer. …Established in 1958, Ritchie Bros. is a global asset management and disposition company… operating in a number of sectors, including construction, transportation, agriculture, energy, oil and gas, mining, and forestry.

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British firm Drax bids to buy B.C.-based pellet maker Pinnacle

By Tom Fletcher
BC Local News
February 8, 2021
Category: Business & Politics
Region: Canada, Canada West

Will Gardiner

B.C.-based Pinnacle Renewable Energy is being taken over by British-based Drax Power Ltd., the latest sign of an international push to low-carbon energy production. Drax has agreed to pay $385 million for Pinnacle in a bid for its shares that has been endorsed by Pinnacle’s board and its largest shareholder. …Drax says it is the largest decarbonization project in Europe. Pinnacle fits with Drax’s objective to increase its own pellet supply, and its existing export contracts with Mitsubishi of Japan and other Asian buyers are also interesting to the company as the world shifts to low-carbon energy, Drax CEO Will Gardiner says. The U.K. government has incentive programs that run until 2027 to pay above market rates for power produced by wind, solar and biomass. “…we want to increase our self-supply,” Gardiner said… “We want to bring down the cost of biomass power generation, so we can run beyond 2027 if that regime is not renewed.”

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Resolute reduces Montreal office space needs by half

Nip Impressions
February 8, 2021
Category: Business & Politics
Region: Canada, Canada East

Yves Laflamme

MONTREAL — Before the pandemic, Resolute was considering teleworking for its head office employees, explains Yves Laflamme, CEO of the company. “We wanted to do a pilot project, but since the start of the pandemic, we have had our pilot project. We are 100% teleworking and it still works well, “he said. Resolute has already occupied two and a half floors of the building located at 111 Robert-Bourassa in downtown Montreal. Half a floor and then an entire floor have already been sublet. If the business decides to renew its lease or move, it will need half the space, or 40,000 sq. Ft.2, rather than 80,000. About 60 Resolute employees at head office were laid off at the start of the pandemic. There are around 400 left, says Yves Laflamme. The decision on the future of the head office will not be his, as the CEO of Resolute is retiring on 1 March, after 39 years with the company.

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Call for Nominations Softwood Lumber Board Seeks Candidates

The Softwood Lumber Board
February 9, 2021
Category: Business & Politics
Region: United States

The Softwood Lumber Board (SLB or Board) seeks nominations of softwood lumber manufacturers and importers interested in candidacy for Board seats coming open in January 2022. Each Director will serve a three-year term and may serve for a maximum of two consecutive terms. The deadline for nominations is April 20, 2021. The SLB is seeking nominees to fill six seats for Directors whose terms expire on Dec. 31, 2021. To be eligible, nominees operating within the regions named above must manufacture and ship within the United States, or import into the United States, at least 15 million board feet of softwood lumber annually. Under the program, large companies are defined as those that account for the top two-thirds of the volume of assessable softwood lumber annually and small companies account for the remaining assessable softwood lumber. …Interested parties may self-nominate or nominate other eligible persons by completing the form.

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Western Montana mills thriving due to sky-high forest products prices

By David Erickson
Helena Independent Record
February 8, 2021
Category: Business & Politics
Region: United States, US West

A strong demand for lumber, caused by a surge in housing starts nationally and home remodel projects during the pandemic, has been welcome news for the Montana forest products industry. “There’s high demand, higher than normal demand,” explained Todd Johnson, the plant manager at Pyramid Mountain Lumber in Seeley Lake…. we’re higher (in revenue) than normal. …Todd Morgan, the director of forest industry research at the University of Montana, said a variety of factors pushed prices up. …In 2004, there were 10,000 people in Montana employed by lumber mills or working in forestry. That number dropped to 7,030 in 2010 but has rebounded a little bit to 7,641 in 2020. …Tom Schultz, VP at the Idaho Forest Group, which operates the St. Regis lumber mill. The company scaled back the mill for a while in 2020 to renovate it with new equipment. Now it’s back up and running strong. 

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Enviva Announces 2020 Impact Report

Enviva Biomass
February 8, 2021
Category: Business & Politics
Region: United States, US East

BETHESDA, MD — Enviva, a leading global renewable energy company specializing in sustainable wood bioenergy, published its 2020 Impact Report, which details the progress made in 2020 to implement the company’s Responsible Sourcing Policy (RSP) provisions in its operations. Enviva’s RSP provides strict sourcing guidelines that hold the company to the highest standards of sustainability, integrity, forest stewardship, and continuous improvement and serves as the guiding principle for its global wood sourcing. Enviva’s sustainably sourced wood is used to manufacture wood pellets, a renewable fuel source, that allow power and heat generators to eliminate coal and reduce their carbon footprint by more than 85 percent on a lifecycle basis. For power generation, Enviva’s sustainable wood pellets provide reliable and dispatchable energy that complements the intermittency of wind and solar energy, ensuring a stable grid without having to utilize fossil fuels.

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Southern yellow pine maker Vicksburg invests $40 million, adds 60 jobs

By Blue Wolf Capital Partners LLC
Business Wire
February 8, 2021
Category: Business & Politics
Region: United States, US East

NEW YORK — Blue Wolf Capital Partners, a New York-based private equity firm, announced its investment in Vicksburg Forest Products, a manufacturer of Southern Yellow Pine lumber products that operates a sawmill facility in Vicksburg, Mississippi. …VFP’s sawmill produces a diverse mix of dimensional and specialty lumber products. In 2018, the family-owned and operated company underwent a large-scale transformation to convert from a hardwood mill to a softwood mill. …Blue Wolf’s investment will support the Company in this expansion that aims to more than double lumber production capacity to approximately 180 million board feet annually and add approximately 60 new jobs. In addition to Blue Wolf’s investment, the Company has received federal, state and local grants. The project is under construction with completion anticipated in the summer of 2021. Vicksburg Forest Products, LLC is headquartered in Jackson, Mississippi.

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Finance & Economics

Canadian investment in residential construction reaches record levels

Statistics Canada
February 8, 2021
Category: Finance & Economics
Region: Canada

Total investment in building construction increased 1.5% in December, following three consecutive months of declines. …Non-residential construction investment remained at $4.4 billion for the third consecutive month. …Investment in commercial building construction edged up 0.3%. …Investment in residential construction reached a record high in December, up 1.9% to $11.1 billion. Single-unit investment continued to show strength for the third straight month, up 2.6%. Eight provinces posted gains, with Ontario (+2.8%), Quebec (+3.1%) and Alberta (+4.6%) accounting for the majority of the growth. …Nationally, multi-unit investment increased 1.2%. Notable growth was reported in Ontario and British Columbia, attributable primarily to condominium and apartment building construction.

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Low Mortgage Rates & Desire for Space Continue to Convert Prospective Buyers into Active Buyers

By Rose Quint
NAHB – Eye on Housing
February 9, 2021
Category: Finance & Economics
Region: United States

Of the 15% of American adults considering a future home purchase in the final quarter of 2020, 56% have moved beyond planning and are actively trying to find one to buy, up from the comparable 43% share a year earlier. This increase marks the fourth consecutive year-over-year rise in the share of prospective buyers who have become active buyers. Several factors help explain the increase, including fear of missing out on low mortgage rates, a desire for more space due to COVID-19, and a desire to move out to outlying suburbs. …Geographically, larger shares of prospective buyers in every region are actively trying to find a home to buy than a year ago, but the increase is most notorious in the West (41% to 61%) and in the Northeast (49% to 67%).

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Simpson Manufacturing 2020 results include record sales

By Simpson Manufacturing Co., Inc.
Cision Newswire
February 8, 2021
Category: Finance & Economics
Region: United States

PLEASANTON, California — Simpson Manufacturing announced its financial results for the fourth quarter and full-year of 2020. Highlights include: Fourth quarter net sales of $293.9 million increased 12.0% year-over-year; 2020 net sales of $1.27 billion increased 11.6% year-over-year. …Karen Colonias, President and CEO… “Our net sales improved 11.6% over 2019 to $1.27 billion, the highest in our Company’s history, driven by strong sales volume. …Simpson Manufacturing, through its subsidiary, Simpson Strong-Tie Company Inc., designs, engineers and is a leading manufacturer of wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and concrete construction products.

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Scientists warn over misuse of climate models in financial markets

By Matthew Green
Reuters
February 8, 2021
Category: Finance & Economics
Region: International

LONDON – Misuse of climate models could pose a growing risk to financial markets by giving investors a false sense of certainty over how the physical impacts of climate change will play out, according to the authors of a paper published on Monday. With heatwaves, wildfires, massive storms and sea-level rises projected to intensify as the planet warms, companies are under growing pressure to disclose how the disruption could affect their businesses. But the authors of an article in Nature Climate Change warned that the drive to integrate global warming into financial decision-making had leap-frogged the models used to simulate the climate by “at least a decade”. …Improper use of climate models could lead to unintended consequences, such as “greenwashing” some investments by downplaying risks, or hitting the ability of companies to raise debt by exaggerating others …the authors called for development of new forms of climate projection to support the financial sector

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Wood, Paper & Green Building

Virtual Wood Wellness Summit

Canadian Wood Council
February 9, 2021
Category: Wood, Paper & Green Building
Region: Canada

The inaugural Wood Wellness Summit is dedicated to showcasing innovative research, advancements, and applications in designing for health-centered living using wood. Join us for thought-provoking perspectives and project examples at the forefront of innovation that have the potential to transform the built environment into healthier low-carbon communities where people thrive. If you are an architect, engineer, contractor, builder, developer or project team member, this event is for you!

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‘Micro-credentials’ offer rapid post-secondary training in B.C.

By Tom Fletcher
BC Local News
February 8, 2021
Category: Wood, Paper & Green Building
Region: Canada, Canada West

The B.C. government is spending $4 million of its federal-provincial economic recovery funds to start “micro-credential” programs that offer an introduction to in-demand job skills on a short-term and usually online basis. Programs are being offered at 14 post-secondary institutions that made proposals, creating an expected 2,000 student spaces for courses. They include an introduction to mass timber construction at B.C. Institute of Technology, medical terminology for office administration at North Island College, facilities maintenance at Selkirk College and digital marketing skills at University of the Fraser Valley. “These micro-credentials are for people whose jobs were affected by COVID-19, and who are looking to re-skill for a new career, or up-skill in an existing area,” said Anne Kang, B.C.’s minister of advanced education.

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Pressure treated waste solution surfaces in California

By Andy Carlo
The HBS Dealer
February 5, 2021
Category: Wood, Paper & Green Building
Region: United States, US West

A possible solution to the treated-lumber concerns of lumberyards, home builders, remodelers and homeowners has arisen in California. The disposal of pressure treated lumber waste became an issue in the state last month after Gov. Gavin Newsom vetoed 2020’s Assembly Bill 68. The move resulted in mandating that treated wood waste must be disposed of at Class I Hazardous Waste Landfills. But the move and resulting burden took the industry by surprise. …Beginning on Feb. 16, 2021, California’s Department of Toxic Substances Control is allowing “interested parties” to apply for a variance. …Homeowners that hire a contractor to work on their home, will not require a treated wood waste variance provided that the contractor transports the wood for disposal. …”The Western Wood Preservers Institute supports the temporary variance process and is working to simplify the process and ensure compliance,” Brooks said. 

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Forestry

New DiagFor version just released

FPInnovations
February 8, 2021
Category: Forestry
Region: Canada

We are pleased to announce that the DiagFor, our continuous improvement tool for logging contractors, has been updated! DiagFor is short for Diagnostic for Forest contractors. It is an online questionnaire designed as a benchmarking and continuous improvement tool for forest contractors. This diagnostic tool is part of a personal and ongoing improvement process for contractors. It will enable you to compare your answers with the median of all other participating forest contractors. Launched in 2008, this online questionnaire required updating. The hyperlinks in the recommendations have been updated as well as several supporting documents added.

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B.C. government pausing controversial Rose Swanson logging project

By Megan Turcato
Global News
February 8, 2021
Category: Forestry
Region: Canada, Canada West

The B.C. government confirmed Monday afternoon that it is pausing a controversial logging project in the Mount Rose-Swanson area of Spallumcheen. The government said the BC Timber Sales project is being put on hold so the forest stewardship plan can be refined. The move comes after more than 20,000 people signed an online petition … and the Township of Spallumcheen called on the province not to put the project out to tender until a more thorough public consultation had been done. It appears that public pressure may have had an impact, as the provincial ministry responsible now says more consultation with the public and First Nations will be done and that information will be included in the revised plan for the area. …The province’s logging plan was for 10 small cut blocks covering over 28 hectares. However, the government [said] those 28 hectares amounted to only around four per cent of the sensitive area.

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Association of BC Forest Professionals Award Winner Recognition

Association of BC Forest Professionals
February 5, 2021
Category: Forestry
Region: Canada, Canada West

Please join us to celebrate this year’s Association of BC Forest Professionals award winners and their milestone achievement. Our celebration will be a bit different from years’ past, as we all join together on the virtual landscape instead of face-to-face. This event is free to attend. Session login information will be available closer to the date. Feel free to share with your family, friends, and colleagues. Congratulations and best wishes to our award winners.

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Combined bark beetle outbreaks and wildfire spell uncertain future for forests

By University of Colorado at Boulder
Science Daily
February 8, 2021
Category: Forestry
Region: United States, US West

Bark beetle outbreaks and wildfire alone are not a death sentence for Colorado’s beloved forests — but when combined, their toll may become more permanent, shows new research from the University of Colorado Boulder. It finds that when wildfire follows a severe spruce beetle outbreak in the Rocky Mountains, Engelmann spruce trees are unable to recover and grow back, while aspen tree roots survive underground. The study, published last month in Ecosphere, is one of the first to document the effects of bark beetle kill on high elevation forests’ recovery from wildfire. …This new research, conducted in the San Juan range of the Rocky Mountains, shows that subalpine forests that have not been attacked by bark beetles will likely recover after wildfire. But for forests that suffer from a severe bark beetle outbreak followed by wildfire within about five years, conifers cannot mount a comeback.

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Myanmar’s troubled forestry sector seeks global endorsement after coup

By Elizabeth Alberts
Mongabay.com
February 8, 2021
Category: Forestry
Region: International

Two days after the military coup in Myanmar on Feb. 1, the nationally privatized Myanmar Forest Products and Timber Merchants Association (MFPTMA) released a statement claiming its timber trade is fully in compliance with legal and official deforestation guidelines intended govern international exports. The Environmental Investigation Agency (EIA) has publicly countered the letter, saying that Myanmar’s timber trade is highly corrupt and does not comply with international policies such as the EU’s Timber Regulation. Expert critics say the letter was motivated by money, and that any subsequent timber trade would directly benefit the ongoing military coup, which has been promised to last for at least a year. The EIA has called for placing economic sanctions on Myanmar, particularly in regard to the timber trade, until power is handed back to the democratically elected government.

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Carbon, Climate & Bioenergy

Canada Invests in Energy Efficiency at Kruger Product’s Gatineau Plant

By Natural Resources Canada
Cision Newswire
February 8, 2021
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada East

OTTAWA, ON – The Honourable Seamus O’Regan Jr., Canada’s Minister of Natural Resources, today announced a $15,000 investment in an energy management information system for Kruger Products L.P.’s Gatineau facility that will reduce energy costs and improve energy efficiency as part of the government’s efforts to advance a low-carbon energy future. Kruger Products matched the contribution to the project to bring the total investment to $30,000. Kruger Products manufactures some of Canada’s most recognized tissue brands. Its ongoing commitment to sustainability has helped the company reduce its energy consumption intensity by 15 percent and its greenhouse gas emissions intensity by 28 percent since 2009.

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Biologists uncover forests’ unexpected role in climate change

By West Virginia University
Phys.org
February 9, 2021
Category: Carbon, Climate & Bioenergy
Region: United States

New research from West Virginia University biologists shows that trees around the world are consuming more carbon dioxide than previously reported, making forests even more important in regulating the Earth’s atmosphere and forever shift how we think about climate change. In a study published in the Proceedings of the National Academy of Sciences, Professor Richard Thomas and alumnus Justin Mathias synthesized published tree ring studies. They found that increases in carbon dioxide in the atmosphere over the past century have caused an uptick in -use efficiency, the ratio of carbon dioxide taken up by photosynthesis to the water lost by transpiration—the act of trees “breathing out” . …”We demonstrate how forests perform another important service: acting as sinks for carbon dioxide. Our research shows that forests consume large amounts of carbon dioxide globally.” 

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The Forest Industry Should Embrace the Climate Change Conversation

by Pete Stewart
Forests2Market Blog
February 8, 2021
Category: Carbon, Climate & Bioenergy
Region: United States

How many industries can honestly say they have a solution for addressing climate change concerns? …As Forest2Market’s Stan Parton wrote last fall, state-wide bioenergy could meet the equivalent of 4-14% of California’s annual in-state electricity use, and the benefits to the state and local economy from supporting bioenergy would be significant. …Growing more trees, increasing forest volumes and, most importantly, keeping forestlands forested will be key components in mitigating climate change risks moving forward. …Obviously, keeping forestlands forested is integral to maintaining the cyclical nature of forests, which act as carbon sinks. But the wood that is harvested from working forests and subsequently used in a manufacturing process also imparts significant environmental benefits well after it is converted to other uses.

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