Author: quesada

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The wood products industry in Virginia is a critical contributor to the economy of the state, an industry represented by more than 1,000 primary and secondary industries and over $25 billion in economic impact.

The Department of Sustainable Biomaterials (SBIO) at Virginia Tech is one of the leading U.S. academic programs in the field of renewable materials with a focus on cellulosic materials such as wood products. Besides research and teaching efforts, SBIO has an important role in dissemination of new knowledge in the area of renewable materials through SBIO’s three extension specialists.

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To access the Fall 2013 Center’s Newsletter,  please follow this link.

From June 30 to July 7, 2013 Dr.  Henry Quesada, assistant professor at the Department of Sustainable Biomaterials at Virginia Tech, traveled to China to attend the 2013 International Furniture Fair in Chengdu. The trip is part of the research project “Analysis of Factors Impacting the International Value Chain of Hardwood Products: A Comparison between Asia and Western Europe” funded by the U.S Department of Agriculture. The goal of the project is to examine value chains in mature markets for American hardwoods. In many of these markets there is a high demand for low-valued added products such as hardwood logs and only a small portion of higher value-added products such as kiln-dried lumber, dimension lumber, veneer, and furniture is imported fro the U.S.  The research specifically is looking into cultural, technical, logistics, and economic aspects that drive importers to prefer low value-added rather than high-valued added products.

Chengdu is located about 1,100 miles west of Shanghai and it is considered the most important city in Western China with a total population of 14 million people (fourth largest city in China). The city has developed into a friendly and welcoming investing destination for international companies. Already an important furniture cluster, local producers are focusing more on the production of solid wooden furniture for the local market given the increasing economic power of the middle class in China. The biggest problem for local furniture producers continues to be the lack of local supply of high quality hardwoods, hence; producers have turned their eyes to American hardwoods as a reliable source of raw materials.

During his trip to Chengdu, China, Dr. Quesada had the opportunity to interview local furniture manufacturers and lumber brokers and ask fundamental questions related to the importation of American hardwoods and other species from other countries. Current importers of American hardwood products indicated that the most important factor when selecting a new supplier from the U.S. is consistent quality and second factor is the price. Other important aspects that Chinese importers consider when buying from American hardwoods suppliers are packaging, availability of species, and customer support. Most importers also indicated that more information about American hardwoods is needed, as local furniture producers know little about American species properties, dimensions, and grading systems.

If you  would like to learn more about international marketing opportunities for Appalachian hardwood producers, please contact Dr. Henry Quesada at quesada@vt.edu

Blacksburg, VA. May 31, 2013. Dr Henry Quesada from the Department of Sustainable Biomaterials at Virginia Tech and Dr. Eva Haviarova from the Department of Forestry and Natural Resources at Purdue University jointly organized a workshop in International Marketing for Forest Products Industry. The workshop was delivered in May 28, 2013 at the Vincennes University campus in Jasper, IN with a total attendance of 18 participants from the furniture industry and state and government agencies.

Jasper is located in southern Indiana, a place where manufacturing is the key economic development driver for the region. There are many furniture industries that have manufacturing operations in Jasper, most of them kitchen cabinet and office furniture. Although this particular industry places most its production in the local market, there is a growing interest in exploring possibilities in international markets.

As a way to educate and provide leads on international opportunities, this workshop brought together an outstanding pool of experts from industry, goverment, and the academic sectors. Mr. Mike Cooper, from the US Commercial Service, provided participants with directions on how to conduct a succesfull international marketing plan. Mr. Mike Seidl, from the IDNR, gave insights and leads on main international markets for kitchen cabinets and office furniture, and Mr. Steve Klinger, from Cargo services, provided critical information on logistics issues. Dr. Henry Quesada also presented and focused on main principles governing international marketing. The workshop was introduced by Dr. Eva Haviarova who reviewed the connection between the housing market and the furniture industry.

Thirty four percent of the participants evaluated the workshop as excellent and 66% as good. If you wish to have more information on current research on international marketing for forest products industry, please contact Dr. Henry Quesada at quesada@vt.edu