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Issue 14 - September 2012
A quarterly newsletter from Gunns Timber Products
“Refreshed” Bluescope campaign?
Same tired old message
Bluescope claim that after three years, they have a “refreshed
campaign for Truecore steel framing”.
What the steel industry doesn’t seem to appreciate is that steel
framing is no solution to protect your whole house.
The two product categories (steel v Australian plantation pine)
in terms of termite protection have very much been on an even
playing field since the Australian Pine industry launched its
solution of Blue Pine some 10 years ago now.
The best advice we can give consumers is that you should ensure
“whole of house” protection and that is not achieved solely by
the choice of framing material.
Due to environmental and cost credentials, Blue Pine framing is
superior to steel, but any Australian home still needs to consider
protecting the fitout materials etc.
Whatever bragging rights Bluescope think they have with
Truecore and termite protection, are overridden every day by
Australian builders choosing Blue Pine over steel. It continues to
be the preferred structural house framing material for Australian
homes, and with design developments in multi-residential, is
the perfect choice for any type of home design – free standing,
townhouses, room additions and second storey additions.
Christine Briggs, GM Sales & Marketing said “I think the fear
factor campaign by the steel industry is starting to sound like
a broken record after all these years. Builders and consumers
know they have a proven and preferred house framing product in
AUSPINEblue and other Australian plantation pine brands in Blue
Pine and will continue to choose this due to value for money and
environmental considerations.”
Note: For construction North of the Tropic of Capricorn, H2/ H3
Pine is the answer for termite protected framing.
In this issue
• New ink-jet branding on structural timber –
Bell Bay & Tarpeena
• People profile – Jacqui Eyles
• Dave Willatt Market Update
• Steel framing – same old fear tactics
• POS developments – rack labels, tear-off
product info etc
• Training packages for customers
gunnstimber.com.au
New inkjet
markings on
AUSPINE timber
Gunns Timber Products have recently finalised the new set up of
our inkjet system located at our Bell Bay Mill. Inkjet marks aren’t new
to Gunns, you may have noticed Gunns timber being “AUSPINE”
marked with timber produced from our Tarpeena Mill. The inkjet
system is set in a high-resolution print, applying indelible ink to stamp
sharp text and images to the timber. The mark lasts forever which
provides Gunns, our customers, the builder and/or home owner with
access of traceability to their timber.
The new inkjet markings for AUSPINEgreen timber
Each stick of timber is inkjet marked to show the following
information:
•
Gunns product brand logo (GTP AUSPINE, AUSPINEgreen,
AUSPINEblue)
•
Confirmation of the product being stamped (grade)
•
Treatment type (if applicable)
•
Australian Standard
•
Time
•
Date
•
The site the timber was produced from, eg. B = Bell Bay
On a technical note, the printing system has two print heads which
are set at 500mm and just under 3,300mm to print the marks. The
setting is in response to customer requests; specifically so that pieces
that are cut will nearly always have at least one print to view at the
end result of building.
The new inkjet markings for AUSPINE timber
For all wholesale sales enquiries phone your state sales team on P 1800 088 135 • F 1800 337 104
PEOPLE PROFILE:
Jacqui Eyles – returns to the
timber industry
In June with the finalisation of Gunns’ hardwood business exit, Jacqui Eyles joined
our Pine Only team, taking up responsibilities for softwood sales in the NSW market.
Jacqui’s professional background is in both the nursery/ landscape industries and
since 2001 in the timber industry, firstly working for the Pine Solutions Australia
business as their National Accounts Manager. Jacqui continued and grew this
responsibility when CHH Wood Products purchased PSA in 2008 becoming their
Bunnings’ business manager. Following one of their restructures last year, Jacqui’s
role was made redundant. She has spent the last 12 months on a number of
personal projects, not the least of which was more time with her family.
What is the best part of rejoining the timber industry and joining the GTP team?
“The people in this
industry are incredibly
down-to-earth and
you can forge strong
relationships with a wide
variety of people. ”
“The people in this industry are incredibly down-to-earth and you can forge strong
relationships with a wide variety of people.
Joining the GTP team was exciting as you can see how they have modestly but
strongly grown their value proposition to the Australian market as a softwood
business over the last 3 years, particularly with major acquisitions such as the Bell
Bay mill in Tasmania.
They are one of the few companies where despite a very public and sometime
negative corporate profile, I felt keen to join because of the quality of people and a
belief that I could be part of further developing the position of the company in NSW.
The teamwork and empowerment are important when you are in a sales
management role for a business or whatever role for that matter and with the
flexibility to work from home, I feel that support with GTP.”
AUSPINE MGP10 exceeds
requirements of F7
F7 grade is commonly regarded as a “lower” structural grade
than MGP10. However, F7 has higher requirements for bending
and tension (parallel to grain) strength than does MGP10, so
where F7 is specified by a building designer, MGP10 cannot
generally be substituted. This scenario is particularly likely
to occur in outdoor structures; traditionally, many building
designers assume a grade of F7 for treated pine.
Gunns Timber Products “AUSPINE” branded structural MGP10
is produced under a system compliant with AS1748.1:2011 that
ensures that the structural properties all exceed the requirements
of both MGP10 and F7 grades as specified in AS1720.1:2010.
Where a design compliant with AS1720.1:2010 specifies use of
F7 grade material, AUSPINE MGP10 can be substituted. This
includes all AUSPINE branded products including AUSPINEblue
and AUSPINEgreen.
Technical Advice Note is available for download from www.
gunnstimber.com.au for your reference and for use with your
customers
gunnstimber.com.au
Product Knowledge training and
POS tools for our customers
Everyone knows that sales people sell
better what they are confident they know
about than what they don’t. The timber
industry has come a long way in the last
decade with respect to promoting the
features and benefits of our products and
ensuring the basic but technical points
such as treatment branding is understood
by our customers.
With this in mind, GTP is pleased to
promote that it has now developed a
series of GTP training sessions designed
to be presented in a face-to-face seminar.
The content will also be
developed to provide online training access for our
eligible customers and we
expect to have this launched
by year-end.
One of the dynamics confronting us in the
timber industry is that the experienced old
hands are retiring and with them a wealth
of knowledge and experience is also
leaving – whether they are in sawmilling
or on the tools in a trade.
Also, with the expansion of the retail shop
front sales for the timber category, we
need to provide our customers’ staff with
more access to “KISS” timber products
training.
We do tend, like every industry, to love
our jargon and it can be used on occasion
in an intimidating fashion but if the timber
products category is to grow and if we
are to get more Australians building with
Australian pine and doing DIY timber
projects, we have to make it easy for them
to choose our timber products.
The solution is two-pronged:
•
the sales person has good sound
product knowledge. This may be the
person behind the timber counter
at the local merchants or it may be
a trade sales rep on the road calling
on building supervisors of the major
builders.
•
For the self-serve environment,
provide sufficient product info so
the DIYer or builder can make the
right product choice. One of the
obvious developments here in timber
retailing over the past 10 years is the
use of colour for denoting timber
applications. This is particularly
prevalent with structural pine which
comes in “white” (untreated), red
(H2 LOSP), blue (H2F) and green (H3
LOSP or CCA).
So, in addition, to the product training
seminars that we can run with our
customers, we also offer professional,
informative and simple product Point-OfSale information. Ask your GTP Account
Manager about both of these areas to help
you sell more of our timber today!
For the service environment where it
is more personalised selling, ensure
For all wholesale sales enquiries phone your state sales team on P 1800 088 135 • F 1800 337 104
Dave Willatt’s Market update
We are in month 31 of downturn in dwelling approvals. This is
the longest downward trend in housing approvals we have seen
since 1988-1992 which started to recover after 32 months.
See Diagram 1
The best short term forward indicator we have of likely future
activity is finance approvals for the purchase and building of new
dwellings. Finance approvals have lifted by 15% from their lowest
level in February. Hopefully it will not just be a false dawn like last
years short lived rebound.
See Diagram 2
This year we are however facing a much more favourable short
term interest rate outlook. With the cash rate 1.25% points
lower than it was this time last year, and looking as if there are
more decreases to come. Finance approvals look as if they are
responding.
Other positive signs are starting to emerge, with Victoria,
Queensland and NSW all showing slight improvements in the
detached housing approval trend. We are still seeing declines in
SA and WA. However the decline in WA is still most likely due to
changes in council regulations as opposed to softening demand.
The trend for Tasmania is not clear.
See Diagram 4
Alts and adds underpinned some of the market demand 20092011 have been in decline for the almost 18 months, with a drop in
the approvals trend of 8%. Recently released June data suggests
we seen a very small lift of 0.4% since April.
See Diagram 5
Housing Finance Approva ls Trend
See Diagram 3
1.60
Building Cycles (House approval trend)
1.1
1
1.40
1985
1988
0.8
1994
0.7
2000
Index
Index
0.9
1.20
2003
0.6
2009
1.00
0.5
0.4
91 11 31 51 71 92 12 32 52 72 93 13 33 53 7
Jun-12
Oct-12
Feb-12
Jun-11
Oct-11
Oct-10
Feb-11
Jun-10
Oct-09
Feb-10
Jun-09
Oct-08
Feb-09
Jun-08
Feb-08
Jun-07
Jun-06
Oct-07
0.80
Months from high
Oct-06
57
Feb-07
13
Source :AB S
Building cycles (House approval trend)
Diagram 1
Housing Finance Approvals Trend
Diagram 2
Cash Rate vs Finance Approvals
1.90
5.00
4.50
580.0
1.70
4.00
560.0
1.50
3.50
Cash Rate (%)
$000' Value
540.0
520.0
500.0
3.00
1.30
2.50
1.10
2.00
1.50
480.0
0.90
1.00
460.0
0.70
RBA Cash Rate
Diagram 3
Alterations and Additions
timber@gunns.com.au
Diagram 4
Jan-2012
Jul-2011
Jan-2011
Jul-2010
Jan-2010
Apr-12
Jan-12
Jul-11
Oct-11
Apr-11
Jan-11
Jul-10
Oct-10
Apr-10
Jan-10
Jul-09
Oct-09
Apr-09
Jan-09
Jul-08
Oct-08
Apr-08
Jan-08
Jul-07
Oct-07
Apr-07
Jan-07
Jul-06
Oct-06
Apr-06
Jan-06
Jul-2009
0.00
440.0
Jan-2009
0.50
Finance Approvals
Cash Rate vs Finance Approval
0.50
Finance Approvals (Index)
Alterations & Additions
Detached Approvals Trend
3,500
3,000
2,500
NSW
VIC
2,000
QLD
SA
1,500
WA
TAS
1,000
Jun-12
Jun-11
Dec-11
Jun-10
Dec-10
Jun-09
Dec-09
Jun-08
Dec-08
Jun-07
Dec-07
Jun-06
Diagram 5
Dec-06
Jun-05
0
Dec-05
500
Detached Approvals Trend
Monthly Imports
Timber Supply
Most domestic producers have continued
to actively manage their stock and reduce
production where possible. Gunns have
been actively doing that this year with a
reduced operating posture, combined
with normal mid year shutdowns stocks
have been steady over the last 12 months.
See Diagram 6
60,000
40,000
30,000
Volume (m3)
50,000
20,000
10,000
Europe
Diagram 6
North America
Other
New Zealand
Jun-12
Oct-11
Feb-12
Jun-11
Oct-10
Feb-11
Jun-10
Oct-09
Feb-10
Jun-09
Oct-08
Feb-09
Jun-08
Oct-07
South America
Feb-08
Jun-07
Oct-06
Feb-07
Jun-06
Oct-05
Feb-06
-
Jun-05
Import volumes from Europe have
decreased significantly this year as
importers have finally started to adjust
their stock levels in response to a softer
market. From a 2011 average of about
22,000m3 per month, European imports
dropped to a low of 7,000 m3 in April.
Since then volumes have climbed back to
11,000 m3 in June. This is bound to have
an impact on the market balance, unless
the increase levels out soon.
70,000
Grand Total
Monthly Imports
For all wholesale sales enquiries phone your state sales team on P 1800 088 135 • F 1800 337 104