By Karen E. Thuermer, AJOTWhether it is Brazilian Cherry, Brazilian Pecan, or another exotic wood, nothing brings a home alive than quality wood flooring. But today, the wood flooring industry – and that comprising a host of other lumber products, is feeling the strain of the global economy. The downturn, in particular, has hit the housing industry hard due to diminished home values, foreclosures and exceedingly tight credit. Consequently, the Western Wood Product Association (WWPA) predicts that US demand for lumber this year will slide to its lowest level in modern history, then move toward a slow recovery starting next year. In fact, WWPA expects US lumber demand will slide this year to just 28.9 billion board feet, down almost 30% from 2008 totals. Western lumber production is forecast to decrease nearly 26% to 9.7 billion board feet. That volume is the lowest since the 1930s and represents a little more than half the volume Western mills produced five years earlier. WWPA expects mills in the US South will see production declines as well, falling to 10.9 billion board feet in 2009. In all, US lumber production will total 21.8 billion board feet this year, down 25% from 2008. As markets start turning up in 2010, US production will rise to 22.4 billion board feet. Poor markets have been even tougher on Canada and other foreign lumber suppliers. Lumber imports from Canada are predicted to total 7.6 billion board feet in 2009, a decrease of 34.7% from the previous year. Since 2005, Canadian lumber imports have declined by nearly two-thirds, or some 14 billion board feet. Other imports, including lumber from Europe and Latin America, should decline by double-digit percentages for the fourth straight year and lose more market share to domestic producers. Home construction traditionally accounts for more than 45% of the lumber used each year. WWPA estimates just 432,000 houses will be started in 2009, down more than half from 2008 totals and one-fifth of what was built in 2005. CIKEL AMERICA Cikel America LLC, however, finds it can hold on during these tough times thanks to its business model that offers quality wood products, pays close attention to environmental concerns, and focuses on logistics schemes that streamline the transport and distribution of its products. Based in Miami, FL, Cikel America LLC, Cikel’s North American subsidiary, focuses its business from the forest to the floor. Its parent company in Brazil operates five manufacturing facilities and has 1.2 million acres of privately owned forest in Brazil. In addition, Cikel has an ongoing commitment to making technological advancements and investments to Total Quality Control. Among the many products and commodities the Brazilian company handles is lumber, timber, flooring, siding, truck bodies, and iron ore. Cikel’s primary products, however, are flooring, which it sells primarily to the US and European markets. “In the United States we sell via distributors,” reveals Gerry Schappell, vice president of Cikel America. “In Europe we sell direct to customers. Besides the United States and Canada, Cikel also sells rough lumber to Europe.” LOGISTICS AND HANDLING Plywood shipments being transported to the United States are shipped breakbulk as well as in 40-foot containers via the Port of Savannah. Flooring, on the other hand, is primarily shipped in 20 foot containers and occasionally 40 foot containers. “We use 20 foot containers for flooring product because of its weight,” says Schappell. “Solid flooring material is very heavy.” The company also does not want to exceed the weight limit, he adds. Schappell comments that while Cikel could also ship its flooring product via breakbulk, the company prefers containerization because it wants to sell a pre-finished product. “This product is delicate,” Schappell says. Consequently, the flooring product requires special handling. “We ship each carton individually,” he explains. “Each shipment is shrink wrapped and b