MASS TIMBER
The Beck Group assists clients in the mass timber sector through our expertise in the front end of the mass timber supply chain. This includes knowledge and experience of timber supply and forest sustainability, the supply of the raw materials (lumber) for making mass timber products, and the feasibility of manufacturing cross-laminated timber and glulam.
The Beck Group has also been a member of the author team for the International Mass Timber Report published annually every year since 2019 in conjunction with the International Mass Timber Conference. As a result, we also have developed methodologies for estimating the size of the mass timber market and the volume of lumber it consumes in North America.
CASE STUDIES
Mass Timber Manufacturing Acquisition Due Diligence—The Beck Group recently assisted a confidential client by completing a third-party appraisal of a mass timber manufacturing operation. Beck’s tasks included a site visit to assess the state of the equipment, a valuation of the business as a going concern, and recommendations about the operation’s strengths, weaknesses, and opportunities for improvement. Regarding the going concern valuation, Beck used an income approach (using revenue multiples and EBITDA multiples) and comparisons to benchmark companies.
The mass timber manufacturing supply chain is an area of Beck expertise based on nearly 10 years of involvement in the International Mass Timber Conference as presenters, International Mass Timber Report authors, and other project work similar to this one. The client will improve their competitive capacity in this fast-growing market segment.
Mass Timber Manufacturing Feasibility—The Beck Group recently assisted a confidential client by completing a mass timber manufacturing feasibility study. Beck assisted by analyzing the size of the glulam and CLT market in North America with specific focus on the Western U.S.; using its sawmill database to evaluate the supply and cost of raw materials; providing a third party review of financial modeling including estimates of capital costs, ongoing operating costs, and key metrics such as productivity, downtime, and raw material to finished product yield factors; and providing conclusions and recommendations about mitigating project risks. All of Beck’s work was summarized in a written report that the client will use to attract investors to the project.
The mass timber manufacturing supply chain is an area of Beck expertise based on nearly 10 years of involvement in the International Mass Timber Conference as presenters, International Mass Timber Report authors, and other project work similar to this one. The client now has the information needed to answer investors’ questions and demonstrate the project’s timely strengths.
International Mass Timber Report—Since 2019, The Beck Group has been part of the author team of the International Mass Timber Report, which is published each year in connection with the International Mass Timber Conference. Each year, Beck provides an update on the early stages of the mass timber supply chain including the cost and supply of lumber raw materials for mass timber manufacturing; the production capacity and actual output of mass timber manufacturers; and estimated market prices for CLT products. The report is available to conference attendees, or can be purchased online at: https://www.masstimberreport.com
The mass timber manufacturing supply chain is an area of Beck expertise based on nearly 10 years of involvement in the mass timber movement. Report readers gain valuable insights into this rapidly growing sector of the forest products industry.
Mass Timber Business Plan Assessment—The Beck Group reviewed and assessed the business plan for a new greenfield mass timber manufacturing complex in the Western U.S. The plant concept included production of cross-laminated timber (CLT) and glued laminated timber (Glulam). Beck’s tasks included critiquing key assumptions in the business plan including raw material supply, operating rates, schedules, productivity rates and operating costs; reviewing letters of support; evaluating key management personnel; competitive assessment of the planned facility; reviewing market assessments for Glulam and CLT; and estimating the likely value of the facility following construction and startup.
The Beck Group’s familiarity with forest products manufacturing feasibility studies, business plans, and the mass timber industry all came to bear in helping this client navigate the complex planning process involved in developing a new manufacturing business.