FOREST PRODUCTS RESEARCH FOR BUSINESS DEVELOPMENT

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: COMPLETE
• Funding Source: SPECIAL GRANT
• Reporting Frequency: Annual
• Accession No.: 0191673
• Grant No.: 2002-34158-11915
• Proposal No.: 2002-03260
• Project Start Date: Jul 1, 2002
• Project End Date: Jun 30, 2005
• Grant Year: 2002
• Program Code: [BB]- (N/A)

Recipient Organization
NATURAL RESOURCES RES INST
5013 MILLER TRUNK HIGHWAY
DULUTH,MN 55811

Performing Department
(N/A)

Non Technical Summary
Entrepreneurs, small companies, and medium-sized business often need help to become established and grow. Many reports have suggested the importance of small and mid-sized companies in providing employment and developing the economy, particularly the rural economy. Small companies are an essential part of job retention and job creation in the United States. Small companies tend to be less conservative than larger companies and are willing to try new technologies. However, they are often hampered by limited resources and a lack of available technical assistance. Support is needed for technology implementation, to allow these firms to stay competitive in the global market. The purpose of this project is to create the opportunity for forest products businesses to flourish in the Lake States region, with an emphasis on small and medium-sized companies.

Animal Health Component

50%

Research Effort Categories

Basic

10%

Applied

50%

Developmental

40%

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
201	0670	1040	10%
403	0650	2020	10%
403	0699	2000	10%
511	0650	2020	60%
511	0699	2020	10%

Knowledge Area
511 - New and Improved Non-Food Products and Processes; 403 - Waste Disposal, Recycling, and Reuse; 201 - Plant Genome, Genetics, and Genetic Mechanisms;

Subject Of Investigation
0670 - Short rotation woody crops, including holiday trees; 0650 - Wood and wood products; 0699 - Trees, forests, and forest products, general;

Field Of Science
1040 - Molecular biology; 2020 - Engineering; 2000 - Chemistry;

Keywords

forest products

economic development

business management

entrepreneurs

biotechnology

extractives

bark

wood products

non destructive tests

furniture

wood engineering

composites

wood manufacture

production efficiency

housing components

product improvement

molecular biology

small businesses

economic growth

innovations

commercialization

cooperative research

new technology

new products

product development

process development

populus hybrida

value added

Goals / Objectives
The overall objective of the project is to complement a program, partially funded by the State of Minnesota, to help the sustainable development of private sector forest products opportunities in Minnesota and the Upper Midwest. Specific objectives include an emphasis on helping existing small and mid-size wood products companies remain or become competitive through research and development or by providing specific technical or business expertise. Work in the biotechnology and chemical extractives portions of the project is directed at the formation of new industries in the region, benefitting farmers, small landowners, as well as large regional forest products companies. Specific sub-projects in the areas of wood engineering, secondary wood products manufacturing, and bio-based composites facilitate economic growth and stability of Minnesota and other Lake States wood product manufacturers. Wood Utilization Research funding also provides seed money to advance new (yet-to-be-identified) innovative concepts through research. We hope to develop these to the stage where state and industry monies can be used to complete the development and potentially lead to commercialization.

Project Methods
The work builds on ideas used successfully since 1985 by the NRRI at the University of Minnesota Duluth. Annually, our Forest Products Program serves more than 50 companies as clients and strategic partners. About 60 percent of these companies are entrepreneurs or small or medium-sized businesses. Using funding provided in previous WUR Special Grants we have worked with more than 100 different companies. Research collaboration with the private sector has resulted in the formation of new companies, facilitated the rapid growth of others, created new technology and products, allowed companies to enter new markets, and accomplished economic development in the Upper Midwest. The project will foster economic development; that is, provide conditions (product development, process development, technical assistance, etc.) favorable for business development through a holistic approach, considering the process from raw material procurement to customer satisfaction. The project will be primarily industry-oriented, with additional benefits for farmers. We will provide technical assistance, help with business plans and marketing, assist with cost accounting and inventory systems, prototype manufacturing, and product or process research and development. Work in biotechnology emphasizes genomics and recombinant DNA technologies. Research in chemical extractives is focused on innovative extractive technologies. Some of our work (in cooperation with private manufacturers) in wood products will be to improve manufacturing efficiency and reduce production costs. We will work to improve resource utilization through our research activities in NDE technologies to determine the properties of standing timber, including hybrid poplar (the primary focus of the NRRI Forestry Program). We will continue to identify commercial NDE equipment for use in lumber mills to reduce costs and improve efficiency. Other work planned for secondary wood products is expected to advance the state of the industry and expand employment opportunities in the region. Two special interest areas, ready-to-assemble (RTA) wood frame housing and RTA cabinets and furniture, aim to add the maximum value to existing regional wood raw materials prior to shipping. They are similar in several ways. We hope to take traditional industrial or consumer orientated products that have been delivered as assembled goods and develop them as new flat packed products to minimize the freight disadvantage of our region and reach nationwide markets. In bio-based composites, we will continue our work to develop innovative new products and to improve current products, particularly oriented strand board (OSB). We will work with a large MDF user to develop an ag-based (wheat straw) panel to meet their specifications in an effort to provide a lower cost alternative. We will continue to work to enhance the competitiveness of regional companies. Productivity improvements may come through the use of advanced equipment, processes, and management practices. This could involve improving the efficiency of plant design, using statistical quality and process control, computer numerical control, or process simulation software.

Progress 07/01/02 to 06/30/05

Outputs
1) Product development and manufacturing improvement services were provided to over 20 small and med-sized wood products companies resulting in their improved competitiveness. This included companies that manufacture recreation products, wood flooring, cabinet products, and housing systems. Specifically, we helped these companies develop new products resulting in sales expansion of over 20 million dollars, retained jobs and contributed to stability and expansion of the wood products industry in Minnesota. (2) NaturNorth Technologies has successfully developed and commercialized technology for isolating birch bark components and derivatives for use in cosmetics, agroproducts, pharmaceuticals, and other bioactive applications. NaturNorth offers commercial quantities of betulin and betulinic acid and will soon offer lupeol. The company is a partnership of the Natural Resources Research Institute, Synertec, Inc., and the Potlatch Corporation.

Impacts
Product development and manufacturing improvement services were provided to over 20 small and med-sized wood products companies resulting in their improved competitiveness. This included companies that manufacture recreation products, wood flooring, cabinet products, and housing systems. Specifically, we helped these companies develop new products resulting in sales expansion of over 20 million dollars, retained jobs and contributed to stability and expansion of the wood products industry in Minnesota.

Publications

• Wang, X., R.J. Ross, and P. Carter. 2005. Acoustic evaluation of standing trees, Recent research and development. In: Proceedings, 14th International Symposium on Nondestructive Testing of Wood. May 2005, Hannover, Germany.
• Carter, P., R.J. Ross, and X. Wang. 2005. NDE of logs and standing trees using rugged new acoustic tools, Technical application and results. In: Proceedings, 14th International Symposium on Nondestructive Testing of Wood. May 2005, Hannover, Germany.
• Wang, X. J.P. Wacker, R.J. Ross, B.K. Brashaw, and R. Vatalaro. 2005. Development of flexural vibration inspection techniques to rapidly assess the structural health of timber bridge systems. In: Proceedings, 14th International Symposium on Nondestructive Testing of Wood. Hannover, May 2005, Hannover, Germany. (May)
• Wang, X., J. Wiedenbeck, R.J. Ross, J.W. Forsman, J.R. Erickson, C. Pilon, and B.K. Brashaw. 2005. Nondestructive Evaluation of Incipient Decay in Hardwood Logs. NRRI/TR-2005/5. Submitted to USDA Forest Service, Northeastern Research Station.
• Wang, X. and B.K. Brashaw. 2005. Acoustic Method for Evaluating the Quality of Alaskan Young-Growth Timber. NRRI/TR-2005/06. Submitted to USDA Forest Products Laboratory.

Progress 10/01/03 to 09/30/04

Outputs
A product development and performance testing project was completed with TrueRide to assess the impact of raw material changes on the performance of their ramp system. Specifically, TrueRide evaluated all of their raw materials to reduce the material cost component of their ramp systems. As a result of product team brainstorming including NRRI, several changes in construction materials and hardware were considered to help TrueRide maintain their cost structure as a competitive means. Testing was completed to assess the impact on impact performance, durability, and strength of their product. The testing results showed that changes could be made in the materials and construction techniques without impacting the performance. The cost reduction in material and labor are currently being estimated as a result of the project. It is estimated that these savings will top 10% of the total raw material cost of the products. We also provided technical assistance to our SunRamps, another Duluth skatepark manufacturer. Their primary manufacturing coordinator relocated during the summer of 2004. Our staff provided technical assistance and training in manufacturing and spray coating during the transition to a new staff member. SunRamps experienced good sales growth during 2005, and has now been manufacturing product for 6 years.

Impacts
Innovative product development is a key to small businesses competing in today's global marketplace. This project has helped TrueRide and SunRamps develop new product lines and evaluate the performance of new materials used to construct the ramps.

Publications

• No publications reported this period