Thai Authorities Confiscate Nearly $4 Million in Illegal Teak
After a nearly five-month investigation and two raids, authorities in Thailand have confiscated about $4 million in teak wood that they believe was illegally smuggled into Thailand from neighboring Myanmar (Burma). The wood-nearly 3,000 teak logs valued at about $1.6 million, and 78,000 teak planks worth about $2.4 million-was confiscated from Suksawad Plywood Co. in Nonthaburi, near the port city Bangkok in southern Thailand; the company is a lumber wholesaler and wood flooring manufacturer. Allegedly, Suskawad Plywood Co.'s parent company, Suskawad Group Co., received the wood from supplier Anton Co. Thailand's Department of Special Investigations, which is handling the investigation, believes Anton Co. smuggled the teak by falsifying customs documents. Executives from Suskawad Plywood Co. have said they believed the wood was purchased from legal sources.
Sources: Woodworking Network and Bangkok Post.
Eddie Gilbert, of E.L. Bruce Fame, Wins Clemency
Eddie Gilbert, who in 1958 performed a hostile takeover of hardwood floor maker E.L. Bruce Co. and later embezzled $2 million from the company before fleeing to Brazil, received clemency from New Mexico Governor Bill Richardson before the governor left office Dec. 31. According to Forbes magazine, Gilbert fled the country in 1962 to live as a fugitive in Brazil instead of facing charges of embezzlement. He eventually returned and pleaded guilty to fraud and larceny. He served seven years in prison in New York. In 1981, Gilbert was convicted of manipulating the stock of a communications-equipment manufacturer, Conrac Corp. He spent nearly two more years in prison. Eventually, he started BGK Group, which is New Mexico's largest commercial landlord, according to New Mexico Business Weekly. Gilbert, along with his employees at Santa Fe, N.M.-based BGK Group, donated nearly $89,000 to Richardson's gubernatorial campaigns from 2002 to 2008, according to The New Mexican. E.L. Bruce Co. is now, of course, the Bruce brand that is part of Armstrong World Industries.
Priest's Facebook Pics Cause Illegal Logging Bust
Even your enemies on Facebook might prove to be your friends. Fr. Pete Montallana, a forest watchdog and frequent critic of Philippines' Department of Environment and Natural Resources (DENR), posted photos of an illegal logging operation on Facebook recently and informed a DENR regional director. The photos showed logs floating on a river that is often used to transport illegally cut logs; he also said the logs were headed for a nearby town renowned as a transshipment point of illegal lumber. After receiving the tip, DENR dispatched men to recover the illegal lumber, at least 15,000 board feet, with more still needing to be measured.
It is notable that the DENR received the illegal logging tip via Fr. Montallana, who is chairman of a church-based forest watchdog organization, because he believes the DENR is not doing a good job of protecting forests in Philippines, and that the group is corrupt. "We thanked Fr. Pete Montallana for the information. He was instrumental in the bust," a DENR member told The Inquirer.
Annual Spending on Remodeling to Increase
The home improvement industry is emerging from one of its worst downturns since the government began tracking such data in the early '60s, according to the report "A New Decade of Growth for Remodeling," which was released recently by the Joint Center for Housing Studies of Harvard University. "Homeowners who deferred maintenance and improvements during the recession may soon start to spend more freely," according to the report. Real spending on homeowner improvements is expected to grow at a 3.5 percent average annual pace as the industry begins to benefit from spending on the rehabilitation of foreclosed properties. And since dwelling mobility is low, most homeowners will concentrate on improvements that add value to their home, like energy-related retrofits, instead of funding discretionary projects like kitchen and bathroom remodels.
Still, challenges remain: A quarter of homeowners remain underwater, owing more on their mortgages than their home is worth; this makes it difficult for them to borrow against their home to fund an improvement. Also, homeowners who are underwater cannot move unless they default on their mortgage or can cover the difference between the sale price and the amount owed. In turn, this is dampening remodeling activity by reducing home sales and the additional spending that home turnover triggers.
The report offers a retrospective analysis, as well. It tells of how the remodeling industry peaked in 2007, well after the housing bubble burst but before the collapse of the U.S. financial industry. Through the ensuing recession, the overall remodeling market fell 12 percent (2007-2009). The peak-to-trough drop in homeowner spending on maintenance and improvements was more than 20 percent.
Housing Market to Rebound in 2011
The housing industry will see gradual improvements in 2011 as the U.S. economy and job market continue to improve, establishing momentum that will produce bigger gains in 2012, according to economists who appeared that the National Association of Home Builders' International Builders' Show in Orlando on Jan. 12. NAHB Chief Economist David Crowe forecasted 575,000 single-family home starts in 2011, a 21 percent climb over an estimated 475,000 units started in 2010. "This year's spring selling season will be better than last year's," Crowe said; however, small builders' access to credit could hamper industry gains. The recession delayed as many as two million household formations over the past few years, Crowe added, as individuals doubled up with family and friends to weather a dismal job market; these households will begin to form as jobs improve, and they "are the next to move into a new home or apartment."
Kennebec Lumber Opens Solid Flooring Plant
Kennebec Lumber Company opened a solid flooring plant in Solon, Maine, on Jan. 4; the facility has added 20 jobs to the local economy. The plant manufactures prefinished flooring for Kennebec's Maine Traditions brand and unfinished flooring for the company's eponymous flooring brand; the flooring is Âľ-inch thick, available in strip or 5-inch plank, and comes with either a beveled or squared edge. David Mittlestadt, general manager of Kennebec's Flooring Division, will oversee the plant. Kennebec has some distribution channels already in place but is seeking additional distributors throughout the U.S. and Canada.
Texas Builder Builds Homes With Trash
One man's trash is another's multi-bedroom home. Dan Phillips, a Huntsville, Texas, builder takes trash-turning wood scraps, old wine corks and beer bottle tops into flooring at times-and builds homes for single parents, low-income families and artists for as little as $10,000. "People have been doing this for hundreds of thousands of years: using whatever is available to build shelter," Phillips told the Associated Press. "If you ponder what could be used, then building materials are everywhere." Phillips' building palette also includes countertops, license plates and even mirror shards; he receives material donations from individuals and larger building companies who avoid disposal fees by sending him truckloads of lumber, granite and tile. In addition, Phillips' building company, Phoenix Commotion, has a humanistic mission. Phillips hires unskilled workers and teaches the marketable skills, eventually helping to place them in a higher-paying job when they're ready to move on.
Inmates Learn About Hardwood Flooring
Inmates ranging from 18 to 21 years old are doing hardwood flooring work as part of a rehabilitation program offered by the Monterey Shock Incarceration Correctional Facility of Beaver Dams, N.Y, according to the Star-Gazette. The inmates, who range in age from 18 to 21 years old, began their work at the mansion about two weeks ago, sorting and scraping hardwood flooring; they've also torn up tile in preparation for installing hardwood flooring. The six-month, military-style program aims to re-educate inmates in work skills. Elmira's Community Arts group is rehabilitating the mansion to house art education studio space.
Hawaii Hardwood Parking Lot is Pizza Heaven
For just $12 you can get a full-size wood-fired pizza if you visit Honolulu's Hawaii Hardwood Flooring. No, the wood flooring dealer hasn't branched out and opened a pizza parlor on the side. The pizza is being offered by two HVAC workers who happened to do work at the wood flooring business. Now they have opened Inferno's Wood Fire Pizza in the flooring dealer's parking lot. John Wong and Kyle Okumoto were installing an HVAC system at Hawaii Hardwood Flooring one day, discussing their passion for pizza, when Okumoto decided he was going to fulfill a dream of his and buy a wood-fire pizza oven; they decided they would mount the oven on a trailer so they could tow it around to parties, they recently told Honolulu Magazine. But the owner of Hawaii Hardwood Flooring overheard the duo discussing their pizza plans and invited them to set up shop-just for fun-outside in the parking lot, and today business seems to be booming. Inferno uses locally sourced kiawe wood and mostly local ingredients. For $12 diners get a pizza and a few sodas; the atmosphere is very lax. "We wanted to be reasonable, because this is fun," Wang told the magazine. "It's OK to bring your own beer or whatever and just hang out with friends in our tent."
Floor Covering Institute to Hold Forum
This year's International Wood Flooring Forum will take place March 21 in Shanghai, right before the start of Domotex Asia/Chinafloor, the largest floor covering show in Asia. The event is organized by the Floor Covering Institute (FCI), VNU exhibitors and the China National Forest Products Industry Association (CNFPIA). Jim Gould, president of FCI, is strategic director of the event, which attracted more than 50 speakers and 500 attendees in 2010. According to an investigation of engineered wood flooring coming out of China right now makes this show more important than ever for those who want to source new product and suppliers from the greater Asia area," Gould said.
Distributor News
Owens Flooring by Colonial Craft (Shawano, Wis.), manufacturer of engineered Plankfloor and Select flooring, is seeking U.S. distributors. Owens' flooring is 10-ply, which includes a 3/16-inch top layer available with or without an aluminum oxide UV finish. Inquiries can be sent to Mike Luccasen at [email protected]. Owens Flooring by Colonial Craft is a Quanex Building Products Company.
Floors Northwest Inc. (Minneapolis) has expanded its showroom, training center and warehouse and moved operations to 5780 Main Street N.E., Minneapolis, MN 55432. The dealer's telephone numbers, 763/586-7070 and 800/284-3595, are unchanged. For more information, contact Scott Groenke at [email protected].
Dealer News
People News
Armstrong World Industries (Lancaster, Pa.) has named Victor "Vic" Grizzle executive vice president, Armstrong Building Products, according to a company release; Grizzle will start this new position on Jan. 17. Grizzle, with 23 years of experience in process improvement, sales, marketing and global business leadership, comes to Armstrong from Valmont Industries, a $2 billion infrastructure support structures and mechanized irrigation manufacturer, where he served as group president, Global Structures, Coatings and Tubing, since 2005.
Teragren Bamboo Flooring, Panels & Veneer (Bainbridge, Wash.) has promoted Mike Boshart to company president; previously, Boshart served as Teragren's vice president. Prior to joining Teragren, Boshart served as general merchandising manager and corporate officer at iFloor.
The Woods Company (Chambersburg, Pa.) has made several recent personnel changes, according to a press release. Rick Guynn, a 25-year industry veteran, is now national dealer manager; Guynn will focus on developing retail partnerships. Karen Durning, who for 13 years has been a sales associate with the company, will now handle sales full-time, focusing on Pennsylvania, Maryland and the Northeast. Also, the company has added Debra Russell and Peter Mazzone to its sales team. Russell, with eight years of experience working with reclaimed wood, will cover the mid-Atlantic and Southwest regions. Mazzone, who has a background in IT/communications, will support the sales team.
Mark Your Calendar
Resource & Financial Management Systems Inc. (Tuscaloosa, Alabama) will hold its annual User Conference Jan. 24 in Las Vegas at the Mandalay Bay Hotel & Casino. Instructors will lead 12 workshops that are designed to educate users of the RFMS Business Management System. The event will coincide with Surfaces 2011, which will be held Jan. 24-27 and will also be held at Mandalay Bay. For more information, contact Maria Cauchon at 205/553-5257, ext. 3711 or [email protected].
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NWFA Member Services
Booth sales are currently underway for the NWFA's 2011 Wood Flooring Expo in San Diego, to be held April 26-29. This year's Expo offers real value to exhibitors by amassing one of the largest wood flooring audiences in one place at one time. If you have a new product to introduce to the industry, or just want to reconnect with loyal customers, this is the place and time to do it. Space is limited, so reserve yours today by visiting www.nwfa.org and clicking on the "Convention & Expo" link.
