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Meisner Says He Blew It.

By Ben Meisner

Thursday, October 11, 2007 09:46 AM

         

I made a mistake when I made the comment earlier today that suggested the value added industry, in spite of government subsidies, went broke. I asked who is left in the value added industry?

I received a call from John Brink, of Brink Forest Products. He read the piece and took exception and so he should have. For what ever reason I have never lumped Brink Forest products in with the failed efforts of Canadian Woodworks, Woodland Windows, or the failed effort with Ikea because Brink built his company without a single dime from any level of government . And yes, finger jointing is a “Value Added “business.

Brink started in 1975 with a thirty five grand loan and has built that company into one of the leading valued added finger jointing companies in Canada. He employs around 250 people.

He has done all that in spite of being worked over very hard by the three major players in the forest industry in this province.

It may sound bizarre, but here is Brink Forest Products being told that their wood supply is being cut off in Houston. The company that controls the forest tenure is cutting off the supply throwing 75 people out of work at a time when the area is awash with dead beetle trees.

Brink Forest Products has been successful in spite of the government, which continues to think that when the majors ask for forest tenure that they must lie done and quickly put their feet in the air. It may sound absurd, but Brink Forest Products biggest problem is, you guessed it, trying to get a fiber supply.

Brink gets mad when he talks about the problems in the industry, damn mad, “It’s all about supply and demand” he says, “but our mentality in the industry is to try and keep shoving 2x4’s up the butts of the Americans to a point where there is always an oversupply. If we cut down on the shipment of product across the border it wouldn’t be long before the demand would outstrip the supply and the price would go up. We have a last man standing mentality here and so we keep cutting, 24 hours a day hoping that when the dust settles we will be the only company left.”

The future Brink says lies in access to the raw materials and as long as it is effectively controlled by three majors companies in this province nothing will change. Those people wanting to start in the value added have had no support from government and government seems afraid to deal with the problems of forest tenure.

Brink concluded by saying “We have the best fiber in the world in this region, what’s wrong with the region being heavily involved in the forest industry?  All we have to do is take advantage of it.”

       
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Comments

Brink's situation is a long standing one. It used to be more in the eyes of the public, but seems to have become an out of sight out of mind situation.

He is right on the money as far as I am concerned.

BC Timber Sales was supposed to solve some of those problems of access I thought. However, as I understand it, his company is dependent on culls of substandard materials at sawmills. He cannot take full sized logs and process those. I also understand that Canfor is now in the same business and his traditional source has been reduced or is gone as a result.

So, we have someone who appears to be saying he has no problem selling his products and is slowing down not because of lack of market but lack of feedstock which is controlled by others.

The less the licensees produce, the less garbage there is and the less work companies such as Brink have. If that is how it works, or does not work, then how can it be fixed without Brink having to process the whole log?

Finally, what happens to the other "value added" companies such as pellets, ethanol, etc, which is based on the remnants of primary manufacturing of timber?

Really their "problem" seems to be considerably different than that of a Woodland Sash.
Everything the government touches turns to crap.
Amen Harbinger...amen.
The problem here is you have barley anyone in the govt who actually has worked in a mill or made business descisions regarding forest products. So now you have all these pencil pushing assholes in victoria who are over educated running the govt who dont understand the milling business. If we had industry trained entrepreneurs like John Brink for example holding key positions in the government then things would be different. Right now this govt is driving us into the ground due to lack of support for entrepreneurs. Furthermore they drove another nail in the coffin by raising the stumpage recently.
That is exactly the problem northman!
Kinda like appointing a truck driver or something as Minister of Finance or someone who has never been a teacher as Minister of education!
Dumb,but it happens all the time.
Depends on how many butts you kiss on the way to the top!
It seems to me that a number of years ago Companies like Woodland Windows, Canadian Woodworks, Brink etc; were able to get stands of timber and they would have this timber logged by Canfor, Northwood, or some other Lumber Co., The lumber companys would turn the timber into lumber and they had a arrangement with Woodland, Cdn Wdworks, Brink, etc to supply them with a certain amount of the lumber to be turned into 2x4's etc;

I dont know if this type of arrangement is still in effect, however both Canadian Woodworks, and Woodland Windows have fallen on hard times for a variety of reasons. Brink still seems to be in the game.

Mills west of Prince George have been in the same business as Brink for a number of years and because they have some affiliation with Canfor they may get first dibs on the available wood. In any event there is more to this story than meets the eye.

If one were to drive by Brink Forest Products yard on river road you would see that practically every lift of finished lumber in the yard is wrapped in the Canfor Logo. This indicates to me that his production is being marketed and sold by Canfor, which is also probably part of the overall arrangement.

If I were Ben I would talk to someone at Canfor, or Sinclar Enterprises, or The Pas Lumber, and get the other side of the story.
Palopu, I do NOT know the answer to this, so I'm going to ask it - are those Canfor wraps on finished Brink product or on Canfor Trim Blocks from out of town that Brink has purchased and had shipped in to be made into FJ Studs?
You guys are right on the money about the gov't. The only comment I will add to that is that in addition to having inexperienced people in charge of business, they add insult to injury by playing the shell game that is also known as "the cabinet shuffle" They drop the 'truck driver' into the finance minister position, then, once he/she is starting to begin to understand what is going on, they can't have that, so they put them in charge of something else. Thus the government is always in a state of confusion, which is exactly what it looks like when you watch how they do things.
I say put Jimmy Pattison, or better still, John Brink in charge of the provincial government. I do not know what it would take to get someone like that to take on a job such as Premier, it could not be money or power, how about the satisfaction of a job well done? Politics suck.
metalman.
Parrothead, F.J plants like Brink for exaple purchase the trim block out right from other companies. Then the finished products they manufacture are under the F.J comany name as their own product. There could be and has been cases where companies like canfor contract the F.J plants to run canfor blocks only then put the canfor stamp and wrap on the product. Trimblocks themselves are not wrapped usually they are transported back and forth in a truck with a large unmarked bin on it.
Blaim the voter they chose Pat Bell the truck driver over John Brink the Forestry entrepreneur in the liberal nominations back in 2000.

John has legitimate points about the death of the entrepreneurial opportunities as a result of multinational corporate government policies. The multinationals own our resources and government lock stock and barral.
spl?
Parrothead. The trim blocks are shipped into Brink from I beleive the West in Shrink Wrapped bundles and are of various lengths and sizes. They are then put through the finger joiner and made into standard 2x4x8 ft studs, and maybe 2x4x10 and 2x4x12.

The lumber that sits in Brinks Yard is the finished product and has the Canfor wrap and logo on it, and I would therefore assume that Canfor Marketing would be selling it for Brink for a commission, or buying it from Brink and selling is for a profit.

Canfor Marketing buys and sells lumber all over the world and it is not unusual for them to buy thousand of truck loads from local mills and sell to their customers to meet their customers needs. They have also been known to buy lumber from Europe to supply thier customers.

It is probably much more cost efficient for Brink to have Canfor buy his product than for him to hire sale personel and set up a marketing branch to sell his lumber.

Thats my take on it.
"Everything the government touches turns to crap."

Either there is a tremendous business opportunity here (fertilizer exports) or it's high time to look for greener pastures.