As Timber Products’ veneer expert, I’m responsible for the millions of wood veneers used to produce our hardwood plywood panels that are turned into everything from kitchen cabinets to architectural millwork. From time to time, I’m asked what trends I am seeing in the marketplace when it comes to wood species and cabinet looks. My latest report is a rise in Figured English Sycamore. Here’s more on this species and trend:

Appearance: Member of the maple family; extremely bright white appearance; almost pure white in color. Does not take on yellowish tint of American maple.

Uses: Currently being used in kitchen cabinets; quarter sliced veneer.

Characteristics: Beauty, fine grain, consistent bright white color, pronounced uniform figure, natural look, clean, modern lines.

Current Trend: Frameless, modern, European-style cabinets that are making a bigger push into the America market. Sycamore fits into this trend.

Availability: Cabinets made with Sycamore are sold through big box stores across the country.

What questions do you have about wood veneer species or cabinet trends?

The wood products industry has gone through dramatic changes during the past three years. To get a better understanding of where the panel business is today, and where it’s headed in 2012, I recently sat down with Joe Gonyea, III, Chief Operating Officer of Timber Products Company, to talk about the year.  

What is your view of the wood products business in 2012, and what will it take to be successful?  

JG: I am more optimistic about 2012 than what you tend to read in the trade press. Yes, it will likely be another challenging year, but I expect some growth overall, particularly in the institutional business. As an industry, we primarily refer to new housing starts as our leading indicator. At Timber Products Company, we predict growth in housing starts to be in the neighborhood of 700,000, up from 610,000 in 2011 but a long way from what we once thought was sustainable, at 1.5 million starts. We also predict continued nominal growth for the home repair and remodel sector.

Good companies do well in both good times and bad because they focus on the things that they can control, such as product quality and customer service. That is what Timber Products has done, and I like the direction we are headed this year.

JG: Focus on partnerships. Times like these require strong supplier-customer partnerships. I’ve seen this time and time again. Our company and family have a great deal of experience with partnerships, and we understand how a true partnership must work. Our great grandfather, Henry Gonyea, had a saying he lived by, “Be friends first and the money will take care of itself.”

By forging partnerships, customers get to know the capabilities of a supplier, and a supplier becomes even more knowledgeable about a customer’s business and challenges. Only then can the two work together to help each other. In a true partnership, your word is your bond and the business that follows must be good for both parties to last.

What changes do you see in the marketplace in 2012? 

JG: On the production side of the industry, I believe we will continue to see consolidation and plant closures as the demand-capacity ratios are still relatively out of balance for many products. With consolidation will come opportunities, and we hope to be in a position to take advantage of those when they materialize.

At Timber Products, we have challenged every team member to help us get smarter and better at every aspect of our business. I believe the marketplace will require new ideas and new and better products, with improved services, to help customers deal with an ever-changing marketplace in a global economy.

What should distributors be thinking about as we head into 2012? 

JG: Distributors and OEM manufacturers are facing the same business challenges as panel manufacturers. The business is highly competitive and customers are looking for more value from their local distributor. Distributors should be asking themselves how they can bring more value to each sale, and what tools and information are valuable to a customer or end user. This is where we can be an asset. Our job is to help our distributors deliver more value to their end-use customers in a cost-effective way. For our size company, we offer one of the most diverse product offerings for our customers from Timber Products and its affiliated company, SierraPine, Ltd., all made to order.

Additionally, that means providing guidance, product literature, green product information and training, videos and other marketing tools that help get the job done. We need to work together now more closely than at any time in our 94-year history.

Looking back on 2011, how would you characterize the year and what is the single most important thing you learned?  

JG: From our standpoint, 2011 was active. We did not sit still. Despite challenging markets in 2011, Timber Products made two strategic acquisitions. We purchased the panel products division of The Penrod Company, which significantly expanded the size and product selection of our international division, TP Global. Our family secured full ownership of our timberlands, 114,000 acres in Northern California, which will help ensure our long-term wood supply for our softwood veneer mill in Yreka and our Southern Oregon plywood operations. Additionally, we continued to invest in our plants. Our sales team traveled more than ever before, and we invested in innovative marketing strategies. We will continue to do more in 2012. However, the most important thing we learned and what will set us apart, is working hard and working smart, while focusing on understanding and meeting the needs of our customers, to ensure they are satisfied and we work toward a lasting partnership.

While our nation has been going through the worst recession in the residential marketplace in history, the National Green Building Standard has been quietly building awareness and interest through local home builder associations across the nation. Some experts in the green building business feel that this program is poised to grow dramatically when and as we come out of this depressed market. In fact, a report released at the International Builders Show by McGraw Hill Construction said green homes are expected to grow from 17 percent to between 29 percent and 38 percent of the market by 2016. If you are in the woodworking business, you should be aware of what this program offers.

In 2007, the National Association of Home Builders (NAHB) and the International Code Council partnered to establish a much needed and nationally recognized standard definition of green building for residential construction. The resulting National Green Building Standard is the first and only residential green building rating system to undergo the full consensus process and receive approval from the American National Standards Institute (ANSI). The standard defines green building for single and multifamily homes, residential remodeling projects, and site development projects while still allowing for the flexibility required for regionally appropriate best green practices.

Certification to the standard is provided by the NAHB Research Center. Like most green building programs, there are four threshold levels of certification—Bronze, Silver, Gold and Emerald. Also like similar programs, the National Green Building Standard takes a holistic approach, with requirements that cover every aspect of a building’s impact on the environment. Projects earn points under each requirement: lot design and development, resource efficiency, energy efficiency, water efficiency, indoor environmental quality, and, lastly, operation, maintenance and building owner education.

It truly is a standard for the mainstream public, a standard that drives environmental practices in a user-friendly way. The free Green Scoring Tool provides instant feedback on your project and how to earn points. This gives building owners a lesson of sorts on practical things they can do with their homes that will have a positive impact on the environment and by how much. There are mandatory requirements in the standard, but each is an obvious provision that one would want in any “green” home.

In March 2010, a study was done by an independent organization on the costs of “green” single family residential building in Chicago. The study compared the cost of three residential green building programs: LEED for Homes, Chicago Green Homes Program (CGH) and the National Green Building Standard (NG BS). For a project that was built to the Gold level equivalent, the CGH program added 3.07 percent to the cost of the building, NG BS added 3.70 percent and LEED-H added 6.10 percent. To give you a comparison of one cost component, LEED-H resignation, verification and certification cost was $2,776, while the same cost for the other two programs was $500. The LEED-H program has more challenging requirements and thus higher fees.

According to McGraw-Hill’s report, the reported costs of building a green home have gone down significantly. Builders report that the extra expense of constructing high-performance homes is now 7 percent, as compared with 10 percent in 2008 and 11 percent in 2006.

As the Gen X, Gen Y and Millennial Generations enter the residential marketplace, environmental attributes in a home are critical. The National Green Building Standard does an excellent job of delivering on environmental requirements that will have a real and measurable impact on the environment. It’s easy to understand the program and how it works, and it’s very affordable. We feel that this adds up to a winner for the typical residential buyer who wants to do the right thing environmentally, but doesn’t want to go over the top. And with thousands of home builders across the nation having the NG BS at their fingertips, the next generation of home buyers will likely see this green option.

Environmental responsibility in building construction will happen if we all support it at a grassroots level. The market is also determining that this is the direction it is headed. Think about how you personally can get involved. Think about how your company can be involved and how that involvement will make your slice of the world a better place. If we all take responsibility for just a little slice of the green movement, the results will be astronomical. The future of our environment is up to each and every one of us.

More green building is coming. The question is, will you be ready?

Keeping with our company-wide commitment to environmental responsibility, Timber Products Company has been accepted into the Composite Panel Association’s (CPA) Eco-Certified Composite (ECC) Sustainability Standard for particleboard at its Medford, Ore., facility.

One of the first companies accepted into the CPA program, Timber Products was recognized for demonstrating a strong public commitment to the sustainable use of wood fiber and to environmental stewardship generally.

What does this mean for you? From the tree to the final product, every step that we take to manufacture our particleboard panels is done with sustainability in mind. We’re excited to be recognized by the CPA for our long-standing environmental efforts and know this program will help our customers better understand that Timber Products particleboard is second to none for certifications and sustainability.

The core requirements of ECC Certification include:

• Prerequisite adherence to the stringent California Air Resources Board (CARB) regulation on formaldehyde emissions from composite wood products;

• Meeting at least three of the following ECC requirements as specified in the Standard: Carbon Footprint, Local and Renewable Resource, Recycled/Recovered, Sustainability, Wood Sourcing; and

• Agreeing to all terms of certification, including ongoing annual onsite audits.

The CPA designation is the latest in a long line of environmental certifications achieved by Timber Products Company. Others include recognition by the Forest Stewardship Council and the Sustainable Forestry Initiative.

What questions do you have about particleboard and sustainability?

Sleek. Unique. Easy. And colorful. Put these all together and you have the top cabinet trends coming down the road in 2012, according to Timber Products experts.

In particular, frameless cabinets are projected to blast the landscape next year and find traction in major cities from coast to coast.

“Most of the manufacturers I work with are bringing frameless options to the market in 2012,” said Gene Chappell, Technical Sales Manager at Timber Products Company. “The reason is that frameless provides a cleaner, more European look and fits better with apartments and condominiums in large metropolitan areas. That’s where the business will be. Frameless is not designed for the single-family market, which is still struggling to rebound.”

Other cabinet trends anticipated in 2012 include:

Soft-close drawers and hinges

Soft-close technology for door hinges and drawers was an option on most cabinets two years ago, but has since moved into a standard feature role heading into 2012. Thank the frameless cabinet trend in part for this shift, said Chappell.

“This type of hardware is better suited for frameless design because you can hide the hinge on the doors and retain the streamlined look,” he said.

Unique species

Rift and quartered veneers are enjoying continued popularity, but we are getting new requests regarding species and matching arrangements. Quartered, slip-match, medium-figure English sycamore and quartered, figured, slip-match Anigre are some new species that are gaining attention. Slip matching is also being specified for some of the more traditional veneers to manufacture panels such as rift red oak and quartered walnut. Plank-matched American red gum is one interesting face that is picking up traction because the variety of grain and color seen in this veneer gives it tremendous character without defect.

At the end of the day, however, rotary maple continues its reign as the most popular choice for kitchen cabinets followed by plain-sliced cherry and alder.

Color explosion

The color palette will be expanding next year, with more demand from homeowners for painted cabinets in a variety of colors.

“Paint is in, and not just traditional colors,” said Chappell. “Reds and blacks and exotic colors are in play. Homeowners like the flexibility paint gives them to match interior decorating patterns, and it’s easier to clean. Cabinet shops across the country are adding new color options.”

To feed this trend, Timber Products is manufacturing an engineered panel that features a thick, paintable paper on the exterior face.

What trends are you seeing in 2012?

If you have been involved with the green building movement, you are probably aware of the largest program in America – Leadership in Energy and Environmental Design, or LEED.  There are now 30,116 registered LEED commercial projects covering 1.04 billion square feet. This program is reviewed and updated on a regular basis, the most recent occurring this summer and fall for what will be labeled LEED 2012. Their review process starts with an extensive outreach to their membership, key stakeholders and the general public. This time around, they got an earfull and the final outcome is far from being decided.

What is being considered are several fundamental changes to the way LEED will function going forward. The credit categories are being increased by three and the prerequisites increased from 9 to 15. But perhaps the biggest change for the woodworking industry is a proposed shift to a performance-based system for the two areas that relate to panel products, Materials and Resources and Indoor Environmental Quality. The MR credit titles will likely stay the same but the requirements will likely change drastically:

• There are new prerequisites pertaining to minimum recycled content and construction and demolition waste management.
• The use of “bio-based materials” will be required, using the USDA BioPreferred program as the guide.
• Structural materials will no longer count toward the recycled content credit.
• The certified wood credit, which currently specifies Forest Stewardship Council (FSC) certified materials, may change to a performance-based standard that relies on Life Cycle Analysis (LCA) and Environmental Product Declarations (EPD).

LEED’s certified wood credit has been the subject of much debate by the wood products industry. By only recognizing FSC certified materials, this has severely limited the amount and kind of wood products that could earn credit in a LEED project. Life cycle analysis takes into account every aspect of a product from its origin, through manufacturing, consumer use and eventual disposal. Given that wood comes from a renewable resource and can be completely recycled after its useful life, this type of analysis gives wood the credit it deserves as an environmentally preferred product

Doing an LCA is not a simple process. The American Hardwood Export Council (AHEC) is currently leading the way on an LCA for hardwood lumber. Wood products manufacturers, who have to perform their own LCA, may be able to use some of the roundwork that AHEC is plowing.

Whether or not any of this comes to pass is still in question, but we should know soon. As of right now, there are too many variables to consider before we take a deep dive into predicting what’s next with LEED. The one thing we can count on is change in the LEED program. The only question is how much. For those of you who are just now getting up to speed on LEED, you will have a whole new set of homework to do.

What do you think?