March 16th, 2009 fmorgan
One of the many big surprises to me when we moved down to Costa Rica was how primitive the wood business was. Here you have a country with hardware stores, tools, etc. but if you want wood, you go to the sawmill and buy green! There are also depositos de madera, or lumberyards, but they usually sell green wood, too. Of course, you can’t install it green, so you have to dry it yourself.
Many people who are building their own home in Costa Rica are surprised to find that you can’t just go down to something like Home Depot and buy a 2×4; nope, you have to find it. Then, after you find it, make sure to get more than you need, because some of them are going to warp, especially if you don’t know how to dry it properly.
The Ticos are an interesting mix of planning and not planning. If they are building your home, it is hard to find someone who understands buying supplies ahead. I think I have finally figured out why. Most Ticos accumulate material and build in stages. Unlike we do in the USA, they don’t generally get a loan, but they store up money for labor and materials until they have enough to start. This means the wood they need for beams, etc. has probably been in the barn for a few years.
We, on the other hand, land here and want to build our home now, the sooner the better. Often the wood is not available except in a tree somewhere, which will require permits that take weeks to get. The wood will be rough cut, often by a chainsaw, then you will wait perhaps 3 months or more for it to dry (sort of). Since most construction people have nothing more than a power hand planer, the cost of planing and sanding can cost as much as the wood itself.
We paid our dues on this for sure. The first house we built was from trees to house using chainsaws with guides and a 15″ planer. It felt like the timeline for the construction was stretching out forever (we know those of you who live here can relate).
As we grew, so did our milling operation, and we got faster and faster — and more predictable. Now if we need a beam, it comes out of the factory dry, at the right dimensions, planed and sanded and ready to install. The cost of planing and sanding isn’t much when you have the equipment. It is a lot less than paying a construction person to do it by hand. In fact, the costs saved in having the wood ready almost pays for the wood itself when you deduct the labor cost of working with rough cut wood. And of course, the quality is better. We use specialty equipment that allows us to work with beautifully grained wood that would otherwise have a lot of tearouts. With our equipment, we are able to make gorgeous teak products that cost about the same as cedar.
Now we are in the process of educating the construction bosses from Guanacaste to the central valley that they can buy wood ready to install, which helps keep their clients happy. We not only sell the dimensional lumber, but also the tongue-end-groove wood for ceilings and walls (called tablilla here) and floors. In fact, just about anything that is wood in a house, from furniture to cabinets, to floors and doors, we make and sell. And that uses a lot of wood, which is good for our tree owners.
Posted in business in Costa Rica, cabinets, campo, construction, cultural adaptation, doors, drying wood, forestry, furniture, kiln, tablilla, teak, trees, wood | 1 Comment »
March 20th, 2008 fmorgan
We have entered an agreement with Tropical Latitudes to be our importer of wood products into the USA. We were approached by Craig, who originally wanted us to plant trees for them from their profits and then found out that we also had products to sell.
To get to know them better, I flew up to Orlando to participate with them at a Home and Garden show. I was very happy at what I saw, and they survived having me as a guest for most of a week, which shows that truly they are cut out to survive in business.
What I most appreciate about Tropical Latitudes is their commitment to having everyone win. They will not deal with any company that does not treat their employees fairly nor do they work through brokers. In this way they can offer unique products to their customers at a very good price, and the makers of the products do well also.
It was very interesting at the show when a broker who wanted to be a supplier for Tropical Latitudes looked at a solid hardwood frog that our woodcarver had made that Craig was selling for 65 dollars. The broker said that the best he could sell it to Craig for was 60 dollars. This illustrates very well why it is so much better not to have several middlemen. However, because of the difficulty of getting things from the tropics to the USA, you are generally dealing with middlemen, and each one tends to want to double the price.
A positive thing for all those who have wanted to buy furniture from us is that now Tropical Latitudes can take the orders and arrange for the furniture to come up in the next shipment with everything else. This should make it possible to have furniture from us at a very reasonable price.
It is good news for our tree owners that not only are we doing great at producing products for the local market, but now we are selling into the USA as well.
Posted in business in Costa Rica, furniture, importing, investing, tree owners, wood | No Comments »
March 2nd, 2008 fmorgan
It occurred to me some time ago just how wasteful specialization is in the lumber business. In the traditional manner, a logger will find a group of trees to cut. He will not want to work with a single tree because he has to haul his equipment and get set up, is not something he makes money on. Loggers make money in the amount of wood they can process per day and the quality of that wood. Loggers who handle large volumes end up with a very large capital investment and speed is everything.
A logger will generally only take up to the first limbs. Furniture makers love figured wood, but sawmills hate wood with knots. They want clear trunks, because figured wood is hard to work with for the sawmills and dangerous, too. A large knot, for example where a limb connects, can catch in the saw and send the log flying. The other waste is that sawmills only want certain lengths, 8, 10, 12, 16, etc. The widths tend to be in standard sizes as well, based on even sizes.
Because of this efficiency, a tremendous amount of each tree goes to waste. Any pieces smaller around than 8 inches are considered scrap and so are segments of wood less than 8 feet long (really 99 inches to allow for checking on the ends of the wood).
Since we have our own furniture factory, we can use a lot more of the tree. Cabinet doors, a very good market for us, use many small pieces of wood. We also make spindles for chairs and banisters with a lathe. This uses limbs and other short pieces of wood. For even smaller pieces, we also have a market for wood crafts, bowls, coffee coasters, etc.
When we harvest a tree, we don’t leave much scrap out in the field. What little is left is used as mulch around the remaining trees. Because of this conservation of the resource, we can get up to 40% more out of every tree.
Because of our size, we can grow trees efficiently, and because of the wood factory, use more of the tree. This means every tree is used to its maximum potential, helping to ensure the plantation wood supply that takes pressure off the rainforest.
Posted in business in Costa Rica, conservation, forestry, furniture, resources, wood | No Comments »