UrbanWoodUtilconf

Stimulating Market Development for California’s “Urbanwood” Resources: 

Stimulating Market Development for California’s “Urbanwood” Resources Richard P. Thompson, Professor California Polytechnic State University, San Luis Obispo Director Urban Forest Ecosystems Institute John R. Shelly, Extension Specialist University of California Forest Products Laboratory

Urban Utilization Problems: 

Urban Utilization Problems Greenwaste flows have drastically limited landfill capacity in California. Solidwood represents the highest value potential in these flows but utilization is low because an efficient market has yet to form. Purpose To help the market for urban solidwood, “urbanwood”, emerge in California.

Objectives: 

Objectives Phase I - Primary Supply Estimate urban sawlog supply potential Evaluate economic viability of urban mills & assist with technical information Phase II - Secondary Manufacturers & the Market Evaluate methods to describe urban wood raw material characteristics (i.e. “grades”) Evaluate the Internet to facilitate emergence of urban wood markets Develop directory of raw material suppliers and secondary manufacturers

Challenges: 

Challenges Log Supply Potential Uncertain volume in urban waste stream Poorly defined raw material quality specifications High log manufacturing costs and weak capital funding Deficit of log processing knowledge Secondary wood manufacturer’s demands? Industry infrastructure lacking

Estimating Urbanwood Availability in California: 

Estimating Urbanwood Availability in California

Challenges: 

Challenges Log Supply Potential Uncertain volume in urban waste stream Poorly defined raw material quality specifications High log manufacturing costs and weak capital funding Deficit of log processing knowledge Secondary wood manufacturer’s demands? Industry infrastructure lacking

150 MBF-RG Cost Breakdown: 

150 MBF-RG Cost Breakdown

150 MBF-KD Cost Breakdown: 

150 MBF-KD Cost Breakdown

220 MBF-KD Cost Breakdown: 

220 MBF-KD Cost Breakdown

Wholesale Price Range vs. Cost Estimates per BF: 

Wholesale Price Range vs. Cost Estimates per BF LOW COST High Value Low Value HIGH COST LOW COST

After-tax Profit Scenarios: 

After-tax Profit Scenarios Value 220-KD 150-RD 150-KD

Challenges: 

Challenges Log Supply Potential Uncertain volume in urban waste stream Poorly defined raw material quality specifications High log manufacturing costs and weak capital funding Deficit of log processing knowledge Secondary wood manufacturer’s demands? Industry infrastructure lacking

Slide13: 

Inappropriate log storage (time and log deterioration) High handling costs – no uniformity in log size, downtime problems (equip. maintenance, metal scanning) Wasteful sawing practices (also saw for value or volume?) Drying knowledge is limited for many species

Challenges: 

Challenges Log Supply Potential Uncertain volume in urban waste stream Poorly defined raw material quality specifications High log manufacturing costs and weak capital funding Deficit of log processing knowledge Secondary wood manufacturer’s demands? Industry infrastructure lacking

Slide15: 

Promoting niche markets is the current focus of our project.

“Urbanwood” Demand: 

“Urbanwood” Demand Highly non-concentrated secondary manufactured products lines : rough, green lumber of sub-grade dimensions countless niche “figure wood” manufacturers (e.g., burl products, blanks, exotics with unique figure and color) woodworking guilds and individual hobbyists Potential substitutes for some traditional, non-commodity uses Unrealized residue utilization opportunities (e.g., compost, pet bedding)

High Value Potential: 

High Value Potential Dense Hardwoods Walnut Ash Locust Acacia Elm Sycamore Orchard Trees CA Dense Hardwoods Madrone Tanoak Eucalyptus spp. CA Black Walnut (Claro) CA Laurel Unique Softwoods Monterey Cypress Monterey Pine Redwood

Challenges: 

Challenges Log Supply Potential Uncertain volume in urban waste stream Poorly defined raw material quality specifications High log manufacturing costs and weak capital funding Deficit of log processing knowledge Secondary wood manufacturer’s demands? Industry infrastructure lacking

Needs for “Urbanwoods” Market Emergence: 

Needs for “Urbanwoods” Market Emergence Processing and business education -- access to technical information and assistance Capital funding (e.g., initial govt. loan “supports”) Niche marketing assistance (e.g., industry assoc.) Market and distribution infrastructure Identifying suppliers and buyers (Internet directories) Brokering mechanisms (brokers, Internet transactions, cooperatives, etc.) Raw material grading uncertainties

The Power of the Internet: 

The Power of the Internet Disseminate technical & market information Finding equipment and materials Connecting buyers and sellers Related Websites www.woodweb.com “This old woodpile” www.californiahardwoods.com www.ecotimber.com HFIA’s http://hawaii-forest.org/

New urbanwood resource on UFEI websitewww.ufei.org: 

New urbanwood resource on UFEI website www.ufei.org