Council planning to push overseas hardwood usage
By Thomas Russell -- Furniture Today, June 21, 2004
Washington — Washington— The American Hardwood Export Council plans to use a projected 10% increase in its budget to promote American hardwoods at overseas furniture and other trade shows.
The funding, most from the U.S. Department of Agriculture, would funnel into AHEC between now and October, said Mark Barford, an AHEC board member who also is president of lumbermen trade group Appalachian Hardwood Manufacturers Inc.
A 10% increase would bring the group's total funding to about $6 million. In addition to promoting the industry at trade shows around the world, the funding also could be used for consulting services and for seminars AHEC's staff provides for industry groups likely to use American hardwoods.
AHEC has offices in Mexico, Europe, Japan, South Korea, China and Hong Kong. Barford said the increased funding likely wouldn't add more staff in those offices. He believes AHEC's structure will allow existing staff to determine how the money is spent.
"Individual people in those countries make those decisions rather than the board," he said.
The increase comes at a time when American hardwoods are competing against hardwoods from Eastern Europe, Southeast Asia and South America.
U.S. hardwood lumber exports rose 3.6% in 2003 to $1.3 billion. But in its annual summary, the Hardwood Market Report said sales in board feet declined 1.9% from January through October 2003, indicating that U.S. hardwood lumber is becoming more expensive.
Gene Parker, editor of the Hardwood Market Report, said AHEC has done an outstanding job of promoting and educating potential global customers about U.S. hardwoods.
"I have a high regard for what they do," he said. "This is a resource that is managed under good, sustainable programs. They are telling a good story on behalf of this country and its resources."
Parker believes the increased funding for spromotional purposes is timely, given the global nature of the business.
"If you're in a global marketplace, you'd better have some good people out there marketing your product," he said. "If (AHEC) can improve their financial support, they can do a better job of bringing home that message globally."
Barford said many U.S. competitors have booths promoting their product, as seen during a series of shows in Pacific Rim countries earlier this year. "Other countries understand the importance of exporting," he said. "If we don't get out there and get our message out, other messages will get louder."
