The Price “Adjustment” Post…

Happy New Year to all WindsorONE Customers and Strategic Partners!

Your continued commitment to purchase and support American manufactured products is appreciated by Windsor Mill; a second generation family owned and operated business, founded in 1972, with manufacturing plants in California and Virginia.

The purpose of this post is to announce a price increase on WindsorONE and WindsorONE+ Protected Trim Boards, Specialty Boards (including CA Sidings), and Moldings.

The 4% increase on FOB Mill pricing is the direct result of increasing log prices and business operating costs, including ocean freight, inland freight, paint, glue, and another year of 15% health care cost increases. (Price increase on moldings expected to be slightly higher)

The price adjustment is smaller than expected because of long-term log supply agreements.  Our vertically integrated strategy continues to give us advantages in the marketplace, specifically as they relate to procuring a consistent supply of a consistent quality raw material.

The last price increase on WindsorONE and WindsorONE+ Protected was April of 2010. We’re hoping that the 4% increase holds through 2013, however, we could see additional log price increases and other economic changes.

The price changes will take effect on all shipments leaving our California and Virginia manufacturing plants the week of February 4th, 2013.

We are working to create the new price lists that reflect the approximate 4% change; we will distribute them to you as soon as possible.

Your continued support is more than appreciated… Build America!

 

Triple Bottom Line & The Patagonia

We continue to diligently work towards building upon our triple-bottom line culture and company.  This sustainable business model consists of three main components:

  1. Profit
  2. People
  3. Planet

While achieving any real Profits has been difficult for all of us over the last 3-5 years, Windsor Mill has certainly continued its commitment to People and Planet.  Two recent examples:

  • People: after the Chile quake, we invested significantly in helping to rebuild damaged and destroyed homes in local communities;
  • Planet: all WindsorONE fiber is either FSC-certified (over 70%), or from an FSC-controlled source.

We are clearly committed to environmentally sound supply-sourcing and manufacturing techniques. 

For some time now we have been aware of an international controversy regarding plans to dam rare river ecosystems in the Chilean Patagonia.  We are concerned that the Patagonia dam controversy would conflict with our environmental commitment and somehow be linked to our brand and products.

Therefore, as we buy raw material in Chile, we will endeavor to reduce material linked to the Patagonia dam controversy and to source more from MASISA, and other FSC-certified suppliers (& controlled sources).

For those interested in the sustainable Triple-Bottom-Line business model, this is a very simple image explaining the concept:

Arauco Sawmill Reopens

Take note of where the fiber will be going…

[article/pic taken from Lignum al Dia, a Chilean online publication]

“With the presence of Seremi Labour, local authorities and company executives, this morning was made the official reopening of the Sawmill Horcones Arauco II.

Through a tour of the facilities, it marked the official resumption of operations of the sawmill, located in the Forestry Industrial Complex Horcones, located in the town of Arauco.

The reactivation of the Arauco Mill Horcones II has meant hiring 165 workers. The resumption of operations of the industrial facility is a contribution to the creation of stable employment in an area particularly hard hit by the earthquake and tsunami on 27th February.

This production unit was closed since December last year, resulting from the crisis affecting the sector. When you restart operation, it hired 120 employees in the operation, mostly from the province of Arauco, Arauco communes and Curanilahue, and 45 persons from casino personnel, porters and guards.

The monthly production capacity Horcones II regime will be 14,500 m3 of green wood, and the main destinations of its output will be the domestic market, the Middle East, Asia and Central America.

Thus, of the 35 facilities Arauco who were detained since the earthquake, or in the case of Sawmill Horcones II from before, 34 and are operating normally.  It remains to Line 2 of the Pulp Mill Horcones, in which case it is not yet possible to specify the date on which restarted production.”

Freeport Delays

[edit: containers through, we’re good to go, less interuption that we had anticipated]

There have been recent vessel delays at Freeport, which has disrupted WindsorONE fiber supply to our Surry, VA manufacturing plant.  We have already contacted our customers, and will continue to keep you up to date… and as always, post to this blog.  We expect about a week of possible WindsorONE shipment delays/disruptions; net result, week of June 28th there will likely be zero shipments from Surry, but quickly shipping again the following week, July 5th.

On March 29th, a tornado touched down at the Freeport port in the Bahamas, which is a major vessel/container transfer station.  They were able to bring the port back online relatively quickly, however they did sustain damage to some cranes, which has been causing disruptions the last couple of months.

To date, we have been able to work through the delays; however, on Thursday evening (17th) we were informed that two groups of containers will not reach the states on time, as they missed a vessel headed to Norfolk.  We have already made arrangements to have these containers routed to Charleston, where we will offload them and truck to Surry, VA.  We are also sending fiber across the country via truck from our Willits, CA plant.

Under normal operations, customers would not feel these disruptions as we would have plenty of raw material reserves stateside; we prepare our raw material pipeline for these types of delays.  Unfortunately, given current demand, we haven’t yet been able to build entirely back to pre Chile-8.8-quake state-side levels.

We currently do however have plenty of raw material in the pipeline, we just need to “umph” get it through Freeport.  The first group of containers is already on the water, and will arrive to Charleston on Sunday.

Please don’t hesitate to contact me with any questions.

In Solidarity,

Craig (craig@WindsorONE.com)

SFI vs FSC – Interesting Read

An article below by John Wagner, as written in LBM Journal:

“(www.LBMJournal.com) If you ever want to elicit groans from dealers, just mention FSC (Forest Stewardship Council). Dealers pay fees to obtain the FSC “Chain of Custody” certificate, and then they pay more fees to renew that certification. Now, if you think the dealer groans about FSC are loud, just mention FSC to builders. Since USGBC’s LEED standard accepts only FSC-certified lumber, builders are forced to buy it, often at a premium, to achieve the LEED lumber point. Typically, builders overbuy FSC lumber, mistakenly believing it’s required throughout the entire LEED job. Not true; see below.

Do you get a greener wood with FSC than with other reputable wood certification systems? Frankly, no. That’s one reason the SFI (Sustainable Forest Initiative) is fighting so hard for LEED recognition. The core of the problem is that USGBC considers SFI a so-called “industry-sponsored program”—and in the eyes of USGBC that somehow compromises SFI’s ability to protect forests. At press time, Building-Green.com reports that the new LEED wood certification draft language would allow for “multiple levels of compliance, and assigns half-credit, full-credit, or double-credit to programs based on the degree of compliance.” FSC of course gets access to the full point. Non-FSC standards would settle for less.”

Read the rest of the article HERE…

Chilean Port Status, 4/26

Our ForAction team in Chile is reporting the following:

“The actual situation of the port is:

– San Vicente , working to 100%

– Lirquen, working to 100%

– Coronel, working to 100%”

Great to hear that things are back to 100% at all three ports…

BOOM! Here Comes the Fiber!

Surry, VA Plant: Boats are still on schedule to arrive into ports this evening, and unload in the morning.  All containers have been cleared and trucks will be standing by to pick up as soon as containers are off-loaded.  We have raw material for three weeks of WindsorONE production due to arrive between this evening and Friday evening; and we currently have an additional six weeks of raw material on the water.

The Surry, VA Crew will be coming in tomorrow, and working through the weekend so that we may begin to ship WindsorONE next week, at 100% capacity.

Surry, VA plant raw material pipeline is full and intact!

Willits, CA Plant: Currently manufacturing, will be a few loads short in shipments this week, and back to 100% capacity of WindsorONE shipments next week. 

Willits, CA plant raw material pipeline is full and intact! 

Our ForAction team in Chile is running strong, and we expect no future disruptions in their supply.

We’ll be playing “W1-order-catch-up” over the next few weeks, yet looking forward to a return to normal shortly thereafter.

In Solidarity,

Craig