Progress 05/15/04 to 12/31/04
Outputs
The business concept is to create a marketing and logistics system that will deliver roundwood building materials to urban markets in all regions of the United States. Our objective is to make roundwood as widely used as 4x4s and 2x4s in landscape structures, rustic furniture, and other applications. If successful, the venture would create several hundred new jobs in rural communities. In addition to the aesthetic advantages, roundwood takes substantially less energy to process than do square posts and lumber. Specification and use of roundwood supports forest ecology, benefits the rural businesses that make our products, and reduces our national energy consumption. Phase I research questions addressed each of the three primary components of a distribution system: producers, retailers and consumers. In addition to a characterization of each component in the context of our business objective, we sought to identify the current system limitations that must be overcome or
better understood prior to creating a retail roundwood distribution business. Primary findings of the phase I research include: The number of post and pole plants in the nine western states is only a few dozen. Of the 35 producers identified and surveyed, only six appear to have sufficient business sophistication and production competency to currently participate in a retail-marketing program. None have experience with shipping or selling into urban retail markets. Potential retailers, including lumberyards, home improvement stores, landscape/nursery outlets, and woodworking stores are generally unaware of and uneducated with respect to roundwood poles. They are well aware of pressure treated fence posts but mostly showed blank stares when asked about untreated poles and doweled roundwood. They were aware of rustic furniture, but did not have the slightest idea what roundwood looked like or how to sell it. A majority of end-consumers and contractors who were interviewed expressed a
preference for roundwood materials over 2x4, 4x4, and 6x6 construction materials in recreational and landscape applications. However, none knew of any local place to purchase such materials. A successful retail distribution program would necessarily include tools, plan sets, and specialized fasteners as well as an assortment of roundwood poles. Tools would include forstner bits, tenon cutters, and drill jigs. Specialized fasteners would include an assortment of dowel-nuts, post brackets, and flitch plates. None of these items are currently available at the retailers who are interested in selling poles.
Impacts
Although consumers and retailers are generally uninformed about roundwood, the strong interest and apparent preference for roundwood in landscape applications supports the creation of a marketing and distribution business. The potential retail network in the western United States includes more than 3,000 potential outlets and potential revenue of more than $30 million per year. The results of the SBIR supported research should be applicable across the country, and in select export markets. We intend to centralize marketing and sales, supplied by a network of high quality contract manufacturers in rural communities around the nation. Customers for the products will be wholesalers and retailers of construction, woodworking and landscape materials. Roundwood should add an innovative new family of wood materials for contractors, craftspersons, and do-it-yourselfers.
Publications
- No publications reported this period
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