Tuesday, December 15, 2009

A Derwent Christmas

I received this Christmas Greeting image in an e-mail from Cumberland Pencil Company today and thought it was a creative use of a pencil and pencil shavings to design an artistic Christmas tree. Cumberland has been a long time customer of our company using cedar slats historically in their Derwent brand pencils. Derwent is considered to be one of the premier professional artist ranges worldwide, particularly with respect to their innovative line of color pencils exhibiting excellent color fastness and other features including the Inktense line.

Of course Cumberland has a storied history in the pencil industry having been founded nearby the original Borrowdale graphite mines discovered in the 1500s. Cumberland established it's Pencil Museum near it's old factory site in Keswick and has become a regular tourist attraction when visiting the lovely Lake District of Northwest England. The Museum website also has interesting history if you'd like to learn more about pencils. A couple years ago Cumberland moved their manufacturing operations to a brand new site within the area, a rare commitment for a European or US manufacturer to invest in new facilities domestically.

For more on cedar and a Christmas association visit my old Timberlines post A Very Cedar Christmas.

Wednesday, December 02, 2009

A Day in the Woods

A nice clear, cool day in the Collins Almanor Forest today where I visited Collins Lumber Company in Chester, CA. Collins is our supply partner for the FSC Certified Incense-cedar lumber used in our own ForestChoice Pencils and CalCedar's FSC Certified pencil slats supplied to manufacturer such as Caran d'Ache.

It was nice to be back in a more rural forest setting even if just for the day including stopping in town for a Latte at The Coffee Station. Chester at this time of year has a great feel of small town America, not so busy as during the Summer months with all the vacationers to Lake Almanor and the Lassen National Park. Checking the local paper over coffee the big news of the day was a classic example of a small town scandal. The front page story discusses the community healing process initiated to come to terms with the decision of the local high school principal to dispose of 25-30 sports trophies. In one of my favorite comments one Alumni stated that disposing of the trophies showed a “total lack of understanding about small schools and small towns."

Following our productive meeting with Collins Pine we drove to Redding to meet with another supplier Sierra Pacific Industries which provides our cedar lumber under the Sustainable Forest Initiative (SFI) & PEFC certification programs. Our drive took us through the Collins Almanor Forest, Lassen National Forest, Lassen Volcanic National Park and timberlands owned by Sierra Pacific. The two forest images here are of the Collins including a small group of Incense-cedar trees about 50 years old plus the Coffee Station.

In an upcoming post I'll be covering some more detailed updates and views on issues related to the FSC and SFI/PEFC certification schemes as well as information related to the developing carbon offset credit market with respect to California forests.

Sunday, November 29, 2009

These Collectors Can't See the Art for the Trees

I've always had an interest in understanding how different economic, business and social principles apply to different industries and markets, particularly with respect to historical development of markets over time. Lately I've been reading more about the economics of the Art market leading me to an article by Paco Barragan at ARTPULSE Magazine titled "The New Spirit of Collecting: From Macenas to Prescriptor to Speculator". The article focuses on the historic transition of collecting art from a system of patronage and philanthropic support of the arts through to those who Paco describes as while still maintaining some sense of "the rank of trophy predators" now have set a new trend as "aggressive and benefit-seeking sharks" who's only motivation is to drive up the value of their holdings whatever level of undue influence and market manipulation is required.

He goes on to state that this trend is now pushing it's way into the European collector's psyche:

"Furthermore, the traditional European collector, with an extensive knowledge of art history and a profound respect for artists and art professionals, has given way to a new breed of collector inspired by the "American Model," based upon aggressive price negotiation, quick access to board of trustees of museums n order to conveniently push his artists, and in the end, the attainment of significant economic results for his investment in art."

Barragan appears to be describing a bunch of Wall Street speculators gone wild referring to a the neo-capitalism model of art collecting. Next he'll be calling for government intervention and regulation of the Art Market and as much as implies he would be a supporter of such a concept:

"Obviously there's a "new spirit of collecting," which has come along with the "new spirit of capitalism" ... that, I am afraid, not even Obama will be able to regulate."

As with any free market the excess of a few collectors who perhaps cannot see the Art for the Trees will always push the envelop. In my view the mainstream art collector still acquires based upon personal sense of appreciation for the art and artist on their own merit, not based on some fanatical obsession with profit making. Let's not overreact to the actions of a few and in my view if Barragan thinks the art world has not seen likes of obsessive promoters with good connections to ultimate benefactors and collectors for hundreds of years then he's generally naive.

One of the blessings of all the new social media is it's facilitation of sharing and appreciation of art and interactions among artists, fans and collectors alike. It may not be the most profitable means of getting rich as an artist, bit these media are opening up new windows for artists and becoming more of the mainstream (truly neo-capitalist) means for art distribution over time. Perhaps there will be some commoditization effect that impact valuation, but ultimately a greater number of artists will benefit as a whole vs. those playing in the shark tank who rise and fall as most speculative markets do over time. I think we pencil collectors and other art fans on the web need not worry much about these "aggressive benefit seeking sharks" out there.

Friday, November 13, 2009

Maintaining Tradition and Values in the Face of Change

In prior posts I’ve focused on many developments affecting the Pencil industry and how companies have reacted in their business operations and strategies to these external influences. I’ve covered trends such as globalization and growth of imports; consolidation within both manufacturing and distribution channels and the resulting rationalization of brand ranges and manufacturing facilities. I’ve also commented on anti-dumping duties and other trade, environmental and product safety issues. Most of these posts have focused on larger industry players and their adaptation and leadership embracing change to remake their companies (i.e. generally the acquirers and market share leaders) with both positive and negative impacts on quality, customer perceptions, market share, and other typical measures of business and industry success.

This time I provide an alternate view, an example of a family owned and operated business in our industry that stands out for its gritty devotion to a set of traditional values, processes and standards. Historically such family owned and operated companies were the norm in our business. While many companies throughout the world pencil industry remain privately held and controlled by their founding families, quite a few have become actively involved in shaping and driving many of these industry trends. This includes our own business California Cedar Products Company which despite our continued devotion to sourcing US grown Incense-cedar as the raw material for our #1 product line, CalCedar® slats, we relocated slat production to our new Tianjin, China facility in 2001 closing our US based slat and sawmill operations soon thereafter.

General Pencil Company, was originally founded by Edward Weissenborn as the Pencil Exchange in Jersey City, NJ in 1889. The company is devoted to providing sustainably produced products under their General’s® brand range for artists of all ages, skills and abilities; amateur and professional alike. While General has added a range of complementary art supplies to build out the product range through the years its stable of wood cased pencils produced from Genuine Incense-cedar remain as a central foundation of the product quality and performance. The company continues to this day as a fully integrated pencil factory in its original Jersey City location producing its own graphite and other special formulation cores in house.
Proudly made in the USA is a vital principle for General’s® brand pencils. General refuses to import cores and leads or increasing proportions of raw, semi-finished or even finished pencils as opposed to all other US based pencil manufacturers who have long since adopted such practices.

While the CalCedar® slats they use are produced by us in our China operation the wood itself is 100% grown in the USA. General is essentially the only remaining US pencil manufacturer exclusively devoted to a Made in USA and predominant USA component supply strategy. Given the recent relocation of Newell Rubbermaid Lewisburg, TN operations to Mexicali, Mexico, (yet another victim to global manufacturing rationalization) General is now one of 3 remaining US based pencil factories producing for the art and writing pencil market which have vertically integrated processes from wood milling department forward to finish product. The others all import some varying degree of pencils and cores as a relevant part of their supply chain strategy.

Another core value at General Pencil Company is the Weissenborn family’s commitment to consistently producing a high quality product from then best quality sustainable materials. General’s® products are well known by both professional and other devoted artists as being produced to exacting standards to provide reliable performance whatever the application. General’s dedication to traditional internal standards of fine craftsmanship and manufacturing processes assures this result time and again. In addition to its exclusive use of Genuine Incense-cedar slats, General also uses recycled packaging materials in the majority of their products. Additionally General is devoted to producing consumer friendly and safe products which are tested and certified under both the PMA Seal and under the Art & Creative Materials Institute (ACMI) Program.

Certainly many industry participants also produce safe, high quality products with an emphasis on sustainability. Many businesses also have multi-generational family ownership. In my view what is of exceptional note is that General Pencil Company, the Weissenborn family and employees of the company truly live up to these values while continuing to exclusively produce in their original Jersey City factory for over 120 years now. General is a company dedicated to supporting the local workforce (many are also multigenerational employees) in a culture indicative of traditional family values that extend also to the customer service experience. General faces the same competitive pressures all of us face in this industry, but they continue to hold firm and thrive as a result. Speaking from personal experience from a multi-generational family business manager who guided our own company through a challenging manufacturing and market rationalization to off-shore production this commitment and dedication deserves great respect.

As two companies and two families, General Pencil and California Cedar and our respective owners have had a long and positive relationship. I am proud to be associated with this relationship and especially pleased to announce the addition of General’s® products to our Pencils.com Store to further build on this partnership. Indeed with this latest collaboration another generation of both families has worked together on a cooperative industry project. These are represented by Kirstin (5th generation descendant of founder Edward Weissenborn) and my son Philip (a 4th Generation Berolzheimer now helping out at California Cedar Products and 7th generation relative to our family involvement in the pencil industry when consideration of Eagle Pencil Company ). These two focused on setting up the products on the Pencils.com store as well as posting product information pages and developing initial promotional materials for the launch. Thanks for their efforts and here’s a toast to a new generation of promise for the supply of high quality sustainable products from tradition driven family owned pencil industry businesses.

Friday, February 06, 2009

Frankfurt Paperworld 2009: Pencil Report Part 1

Frankfurt Paperworld 2009 is a few days behind me, though I still have quite a follow-up list from my meetings with customers and suppliers. Thus posting my Paperworld Pencil Report for you enthusiasts out there has taken a back seat. I do see there were a few other “reporters” out there covering new pencil related items they found. Some of these items I’ll comment on in the context of my post which will be more focused on common themes and trends for the show this year as relates to pencils and the pencil industry. Of course pencils are just a very small part of Paperworld which covers so many product categories and some themes I cover are applicable to these products as well.

The first theme seems to be the ever increasing barrage of marketing and promotion of “Green” products and processes to produce not just pencils, but many writing, art and stationery items exhibited this year. The fascinating thing to me about this is how many different types of green positions, often conflicting in message, that are being espoused for various products. Some efforts I simply consider “green washing” while others offer legitimate improvements in environmental impacts related tor raw materials used or production processes employed.

Wooden products have long been positioned as green for the renewable resource characteristic of the raw material. The addition of various and competing forest and Chain-of-custody certification schemes such as FSC and PEFC are more and more frequently used in our industry, primarily for paper products, pencils and more traditional building materials, though less often seen at this point for other home, office and school products produced from wood. While these schemes are much well known and supported by consumers in Europe there is increasing awareness here in the US. More and more often pencil manufacturers are moving towards implementing some form of third party certified wood pencil for a broader portion of their product range. This is especially in the light of new regulatory actions such as the 2008 amendment to the US Lacey Act which seeks to extend protection of endangered plants to include all manner of wooden products imported to the US. Similar legislative actions are under review in Europe and will be an increasing challenge not just to the pencil industry, but the global wood products industry as a whole. I expect to write more on this legislative topic and its projected impact on the industry in a future Timberlines post.

The most notable new certified wooden pencil at Paperworld this year is the new STABILO Green Range (image above). This range from Schwan-STABILO features the 100% FSC certification label and initially covers about 4-5 different pencil products with the intent to add new FSC certified pencil items over time. For more information see the STABILO Green Pencil Library Wiki page at our Pencils.com site. Of course Faber-Castell has long touted their leadership in FSC certification of the majority of their pencils and other European brands such as Caran d’Ache have had FSC certified products for some time, as well as our own California Republic ForestChoice brand which was the first FSC certified pencil offered to the market. As the leading supplier of FSC certified Incense-cedar and FSC Basswood to the pencil industry our company is experiencing increased demand for our FSC certified pencil slats.

Plastics and recycled products are also increasingly positioned as green. Our industry is clearly experiencing a re-emergence of the extruded plastic pencil. It was even interesting to see some standard PVC type plastic products from Asia being positioned as green simply for the fact they are “woodless”. However, most of the traditional plastic pencils are actually a composite of wood flour and plastics so technically they are not woodless. The Remarkeable Pencil has different versions produced from recycled cd cases, plastic cups and a variety of other materials. Bic’s Conte Evolution has been the market leader in plastic extruded pencils ever since Newell discontinued production at the former Empire EPCON facility in Shelbyville, TN some years back. However as BIC long since stopped exhibiting at Paperworld I am not certain what specific environmental claims they make regarding the Evolution these days. Chinese and other developing country companies have increased investment in plastic pencils production as well, though in these cases it’s most often to address economic concerns as wood costs for pencils have been increasing over past several years.

The major announcement on the extruded pencil front is the new Staedtler WOPEX pencil which they gave top billing and emphasis as their new product at Paperworld. This pencil has already been reported on at Lexikaliker blog in German. I was able to meet the Director of R&D at Staedtler who presented this product introduction to me. First, the name is a form of anagram for the words Wood, Pencil & Extrusion. I did find it somewhat interesting that a leading German writing instrument company used an English anagram to name its new product, but I guess this simply reflects the current state of the use of English more globally. The key features of this pencil are that a full 70% of the raw material used is wood flour. So Staedtler is pushing the recycling of wood and minimization of recycled plastic with respect to environmental positioning. Also the pencil is definitely more rigid than other plastic pencils I have seen and they indicate they will produce it in three grades H, HB & B. It did write better than my experience with most other plastic pencils. Finally the rubberized surface has more ergonomic properties similar to their Ergosoft range. As I understand it they do not intend this to be a cheaper substitute for wood pencils, but a value added product preaching it’s performance and green benefits.

That’s it for this Part 1 report as it got way longer than planned, as usual. Tune in for Frankfurt Paperworld 2009: Pencil Report – Part 2 where I’ll focus on the industry impacts and reactions to the current World Economic and Recessionary environment.