BC moulding and architectural millwork : an analysis of the US market and emerging competitors

A competitor analysis of the BC coastal moulding producers has been undertaken. This analysis was accomplished by performing extensive market research on the producing regions and the products active in the North American moulding market. The geographic regions analyzed through an extensive literature review were the British Columbian coastal producers, the US market, Chile, and New Zealand. The various products and substrates discussed were MDF (Medium Density Fibreboard), composites (plastics), and solid wood. It is hoped that the information obtained in this analysis will form the basis for understanding the dynamics of the North American mouldings market, and present opportunities where BC coastal moulding producers may succeed. Results of this analysis clearly showed that in order to succeed in the attractive US mouldings market the BC coastal moulding industry must overcome a number of challenges. Production of mouldings in the US market is stagnant while the demand for moulded products is on the rise. The Chileans were the first to take advantage of the decreased amounts of Ponderosa pine available on the market in the late 80's, the species traditionally used for mouldings, and have continually been increasing the presence of clear, fast grown radiata pine (Pinus radiata) ever since. Other US domestic pines have also found the mouldings niche and are gaining market acceptance. MDF is also quickly gaining market share in paint grade mouldings. Composite mouldings are developing a small niche in outdoor applications and where mouldings must bend. All of these products, including BC softwood mouldings must compete in the developing US mouldings market. BC coastal producers have high production costs, difficulties accessing suitable softwood fibre, and in general are running old machinery. The advantage of being next door to the desired market is hampered by the US/Canada Countervail Duty which affects many producers. Some recommendations for overcoming these barriers are offered here. These recommendations generally take on the form of increased investment in technology, training, finding secure niche markets, and producing market driven products.Forestry, Faculty ofGraduat