New Innovative Wood Products Challenges and Opportunities

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1 New Innovative Wood Products Challenges and Opportunities Dr Keith Crews Professor of Structural Engineering Associate Dean Faculty of Engineering & IT University of Technology Sydney 1

2 Background A number of both local (FWPA) and international studies highlight the lack of timber usage in the non residential building sector Sector value currently approx $16b p.a. These studies also identified: potential opportunities to improve market share for the timber industry in medium rise commercial and multi-residential construction a number of specific obstacles which need to be addressed in order to realise this potential 2

3 Total Industry revenue Residential Construction Market segment $billion % of total revenue New single-unit housing Apartments & townhouses Alterations, additions & repairs to existing dwellings Speculative property sales Total $30.3 billion Source: IBISWORLD 3

4 Total Industry revenue Commercial & Industrial Market segment $billion Construction % of total revenue Office Retail Warehouses Entertainment & recreation facilities Factories Other Total $15.8 billion Source: IBISWORLD 4

5 Opportunities for Timber in the Non Residential building sector Over the past few decades there s been a decentralisation of employment away from CBD areas of cities to inner precincts Demand for high-rise CBD office spaces has reduced due to the decrease in employment in insurance and financial services This means more low-medium rise buildings and this presents opportunities for structural timber Structure is a larger portion of construction costs large amount of timber use ability to value add maximise gross margins through integration into fabrication, design etc 5

6 Background - Challenges Steel and concrete products are well established and accepted in these markets by designers, contractors and developers. The market is highly competitive Timber will not be able to increase market share without targeted investment in both R&D and value adding The potential value of market penetration is estimated to be $0.5 to $1billion p.a. 6

7 Background - Needs Development of efficient and innovative engineered products & systems for application in these types of buildings Develop structural / building systems that can take advantage of prefabrication manufacturing techniques & precision are commercially competitive to construct meet the relevant performance criteria (e.g. structural, occupational safety and comfort, fire and durability) for non residential buildings 7

8 New Developments in Europe 7 storey building - Berlin 8

9 New Developments in Europe M-M Kaufmann Glulam & CLT 9

10 New Developments in Europe Binderholz headquarters Fugen, Austria 4 storey office building 10

11 New Developments in Europe FMO Tapiola Espoo, Finland 4 storey office building 11

12 New Developments in Europe 4 storey building - Munich 12

13 New Developments in Europe KLH - Austria 13

14 New Developments in Europe Up to 6 storeys Switzerland 14

15 New Developments in Europe 9 storey building - London 15

16 New Developments in Europe Open Academy Norwich, UK 3 storey building Area: 9 500sqm Cost: 20 million Timber use: - CLT & glulam structure - superstructure took 16 weeks (saving of weeks) 16

17 17

18 New Developments Overseas Up to 6 storeys Canada 18

19 New Developments Overseas NMIT Nelson NZ 19

20 New Developments Overseas MOTAT Aviation Hall Auckland, NZ Area: 3000m 2 Timber use: - 42m span LVL m in height 20

21 Cross Laminated Timber (CLT) Ability to utilise lower quality, fast grown plantation softwoods Prefabrication under factory conditions Floors, walls & roofs Quick to construct Significant uptake & development in EU 21

22

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24 Prefabricated Building Systems Factory Fabrication Excellent QA / QC Use of CAD / CAM / CNC Modular structural system material combinations Efficient Erection Green building strong driver in terms of carbon store, process and operating energies 24

25

26 Opportunities in Australia & NZ Current R&D projects are enablers for timber solutions Considerable interest amongst developers & builders of Commercial Buildings Potential for Utilising timber as a part of a green solution in new building projects Engineered, prefabricated timber based building systems 26

27 Market Drivers Strong international demand for low to mediumrise residential and commercial buildings as a result of demographic changes. Demand for sustainable buildings, renewable materials and reduced CO 2 emissions. Stated government objectives for carbon neutrality in the building industry and wider economy. Industry demand for prefabrication and integrated construction of long-span buildings which can be dis-assembled and relocated at the end-of-life. Increasing importance of rapid reparability and reuse after extreme seismic and weather events. 27

28 FRST (NZ) Seed funds an R&D company Co- funded model Matching funds dollar for dollar from NZ government and industry ($10m NZD over 5 years) Research Consortia of Industry and three Universities Partnership of industry & research providers (commercial focus) R&D commenced January 2009 Current R&D Enablers

29 New Zealand: Market Development Focus 6 to 8 storey timber framed buildings Seismic performance requirements Large spanning floors & roofs for commercial & industrial

30 Australia: Market Development Focus 2 to 3 storey timber framed buildings Gravity & Wind performance requirements Large spanning floors & roofs for commercial & industrial, perhaps in combination with precast concrete systems

31 Objective 1 Roof systems & Roof Analysis and Design Long span Roof Systems Fasteners Portal Frame connections and connection systems Durability Roof construction & costs connections

32 Objective 1 Roof systems & connections

33 Objective 2 Floor Systems Commercial / Industrial Floors: Floor analysis and design Concrete composite floors Non concrete floors Fire, Acoustics and Vibration Long term performance Fabrication, construction & installed costs + LCA issues 33

34 Objective 2 Floor systems

35

36

37 Objective 3 Wall & frame Multi storey Frame Systems Analysis & Design New EWP frame systems seismic & non seismic MRC s Walls & bracing systems Fire Sustainability Multi-storey construction & costs systems

38 Timber Framing Systems Recent work at UC Use of column & beam frames for multi-storey buildings Post tensioned LVL frames that are self healing Particular application in seismic regions Internal or external dissipation devices Unbonded posttensioned tendon Rocking motion θ imp U 38

39 Post-tensioned timber frames Post-tensioning can solve the problem of moment connections for heavy timber

40 Post-tensioned timber walls U U U

41 Objective 3 Wall & frame systems Post-tensioning tendons Frames Walls Floor diaphragm Beam-column Energy dissipation

42 Prototype Buildings NMIT Nelson NZ Aurecon - Engineers, ISJ - Architects 42

43 43

44 Challenges Most timber materials (particularly engineered wood products) are produced as generic products (commodity approach), rather than value added building solutions Fabrication capacity in Australia to produce the sort of building elements required for commercial buildings is extremely limited There is a lack of integration of production, prefabrication, design, supply and construction 44

45 Vertical Integration Solutions approach Competition based on Operational Effectiveness (OE) alone is mutually destructive, leading to wars of attrition that can be arrested only by limiting competition Michael Porter, 1996 Upstream vertical integration - either through ownership or alliances New collaboration and Solution provider models will help ensure: - reliable supply - greater cost control & pricing power - ability to maximise gross margins 45

46 The BIG Challenge: INNOVATION is required To shift from a mass production OE focus To a vertically integrated Building Solution focus That is the critical enabler to meet the challenge and realize the opportunity that exists 46

47 Summary Business models need to be developed, Investment is required and alliances need to be formed, To produce integrated building solutions that are a one stop shop for high quality building solutions, such as are now available in Europe 47

48 Significant challenges, but also Significant Opportunities to build a brighter future for timber products thank you for your attention Thank you for your attention

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