Value-added wood producers forge ahead.

• Author: Ross, Ian
• Position: SPECIAL REPORT: FORT FRANCES

Northwestern Ontario's primary forest industry has experienced a wave of mill closures and job losses, but some small value-added wood producers in the Fort Frances area are expanding.

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Kish-Gon-Dug, a First Nation-run wood furniture maker has physically expanded to handle increased orders for its red cedar garden-patio furniture. The 10-employee company recently erected a 7,500-square foot building, an investment of $560,000, adjacent to their current factory located on the Naicatchewenin First Nation reserve, north of Devlin.

In September, the company was running full-out handling a large order for 300 of their garden benches, says director of operations Dean Councillor.

He estimates 98 per cent of their sales are to the U.S. with occasion small sales in Canada. The company is working with a Kansas distributor to sell its product over the internet.

Despite a flat U.S. home-building market, home renovations are still going strong for the former NOBA winner.

"Business is doing well. We hope to get another (second) shift going," says Councillor. The focus for the expansion building will be to build their furniture line.

They've moved in some new equipment and outfitted the new shop with a CNC machine to make rails and slats for their garden benches and swings. As well, they've added new sanders and drills, table saws and planners.

The main building will be the site to make saunas and gazebos.

Building saunas is a future area of growth that the company has not done to any great extent. Company officials believe there's a lucrative market for handcrafted saunas for clients in Thunder Bay, the Muskokas, southern Ontario, California and Florida.

The company sources cedar and pine from British Columbia, but it's expensive and in short supply these days, says Councillor.

They also intend to capitalize on the European market having exported two container-loads to customers last year through a connection in Ireland.

"But we've been so busy with this main order that we've haven't tried to contact them yet to see if they need more furniture,:" says Councillor. "Supply and demand is just too great right now."

"Value-added wood products has been good for us," says Geoff Gillon, executive director of the Rainy River Future Development Corporation, who's been active in...