John Simon

1
THE SOFTWOOD MARKET INNOVATIONS TRENDS

• John Simon
• Managing Director
• Pine Solutions Australia

2
Innovations Trends in the Softwood Market

• Threats from Substitutes
• Timber Treatment
• Branding
• Market Consolidation
• System Marketing

3

• Threats from Substitutes

4
Steel Framing

• Stabilise Prices

• Articulate a Termite Strategy

• Communicate with the Home Purchaser

• Simplify Design Codes

5
Price Fluctuations Timber vs Other Materials
6
Timber Treatment

• The CCA issue is currently a non-event in
  Australia

7
Branding

• Industry is moving away from a commodity focus
  and starting to seriously invest in branding
• Demand Pull creation is the key to value

8
Market Consolidation

• Bunnings
• Buying Groups (NBSG, Mitre10, Danks, HBG, etc)

• These groups demand much more sophistication, for
  example
• EDI
• Barcoding
• Delivery reliability
• Inventory restocking

9
System Marketing
Australian EWP Market Size Projected Growth
Index
10
Wall-Frame Roof-Truss Prefabrication
Rapidly gaining share from stick building and
hardwood
11
Conclusions

• Serious long-term players in the softwood
  industry now exist
• Market trends are shorter the market is much
  more dynamic
• The market is moving away from a commodity
  mentality
• Higher levels of marketing sophistication are
  needed
• BUT we are not yet drawing and keeping enough
  people who have the necessary marketing skills

12
No longer can we rely upon customer loyalty
There is low tolerance to Non-Performance
WE HAVE TO PERFORM IN THE MARKET EACH AND EVERY
DAY
13
Lions Gazelles
Every morning in Africa, a gazelle wakes up. It
knows it must run faster than the fastest lion or
it will be killed.
Every morning a lion wakes up. It knows it must
outrun the slowest gazelle or it will starve.
It doesnt matter whether you are a lion or a
gazelle. When the sun comes up, youd better be
running!!