Timber Construction Art, reg. Cooperative ltd

Best Practice

Topics

• Regional value added
• Governance capacity, Policies and instruments

Short description

The Quality Community of Timber Construction Vorarlberg co-operative is a regional chain of economic value added within the scope of the timber construction ranging from the forest owners to the carpenters. The cooperation of architecture – handicraft – ecology represents the centre of the project. It is based on the endogenous resources of the region Grosses Walsertal, i.e. the sufficient existence of the raw material (white fir) and the regional know how (timber construction, handicraft). The project aims at providing more timber construction at a higher level of quality and thereby creating economic value added for the whole region. To achieve this objective, a bilateral strategy is implemented by conducting market development and know how development at the same time. The main activities of the project include the following 2 initiatives: o “Holzbau-Kunst“ (Timber Construction Art): a national timber construction award which encourages innovation in the quality and the design of timber construction and increases the public interest and demand. o “Holzbau-Zukunft“ (Timber Construction Future): innovative education programme for apprentices and training programmes aiming at rising the timber construction competency and preserving regional know how.  Is there made use of endogenous resources? Which ones? Usage of regional wood (white fir): contributes to a sustainable cultivation and forestal usage, preservation of the cultural landscape, maintaining protection forests, etc.  What is the specific relevance of the results for the Alps? The usage of regional wood within construction and processing safeguards the regional chain of economic value added. The white fir causes a sustainable cultivation and, therefore, leads to the conservation of the cultural and natural landscape within the Alps. The project instigates other regions to encourage in timber construction too contributing to goal of overall environmental protection.

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Project executive

The Quality Community of Timber Construction Vorarlberg co-operative (QG) comprises 82 members: forest owners, sawmills, carpenters, timber processing companies, architects and suppliers. It is a non-profit community aiming at the development of a timber cluster: strengthening of the members’ market position by implementing common marketing activities and pledging themselves to common quality criterions.

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Participants

Participants: - 2 employees of the QG Timber Construction - 45 carpenters (with 11 employees at average) - 14 apprentices (4 age-groups), 50 journeymen and 20 craftsmen - 38 suppliers (forest owners, sawmills, retailers and timber processing companies) - 14 offices for architecture and experts - sponsors (banks, State of Vorarlberg) External cooperations: - Economic Chamber of Vorarlberg - Chairmen of the professional groups (sawmills, forest owners) - Association of forest owners (the association is very strong in Vorarlberg because of the bulk of small possessions) - State of Vorarlberg: Department for Subsidies for residential buildings (constant contact to ensure that environmental issues and synergetic effects are considered in the decision on subsidies) - Institute for architecture (consultancy, organisation of the jury) Key person: Matthias Ammann is the inventor of the project and its driving force: setting constantly new initiatives and instigating new projects. He provides for the functioning of the network despite the severe competition among the members themselves. His main activities outwards consist of lobbying for timber construction and socialising (due to his previous career: Economic Chamber of Vorarlberg, politics, at present business consultant and CEO of the QG Timber Construction). The durable cooperation (QC Timber Construction) was founded in 2000.

Objectives

- More timber construction on a higher level: this overall objective is pursued with a twofold strategy: o Timber Construction Art: a national timber construction award which encourages innovation in the quality and the design of timber construction and increases the public interest and demand. o Timber Construction Future: innovative education programme for apprentices and training programmes aiming at rising the timber construction competency and preserving regional know how. - Conservation and advancement of the regional know how concerning timber construction - Sustainable usage of the regional raw material (wood, especially white fir) - Improving the image (difficult cultivation: “single fir cultivation”) of the white fir because it accounts for 25% of the wood in Vorarlberg (whereas the European existence averages just 0,2 – 2%), i.e. it may not be easily be exchanged. The higher image renders imports of Nordic fir unnecessary and thereby safeguards regional employment. - Implementing projects which strengthens the competitiveness of timber construction and, therefore, safeguards existing and creates new working places.

Activities

Timber Construction Art: The prize is awarded every 2 years (2001, 2003, 2005) and enjoys already a good reputation at home and abroad. Activities: - Invitation, get in touch with constructors and architects. - The QC Timber Construction acts as information centre for FAQ concerning timber construction. - Marketing. - Organising the jury. - Award ceremony. Timber Construction Future: the education and training programme is based on the 3 pillars competency in timber construction, social competency and capacity for teamwork. The regional carpenters are responsible for the development and the implementation of the education and training programme. Activities: - Development of the educational programme (workshops) - Organising 2 meetings of apprentices per year (intensive meetings with a duration 2 weeks) in order to build the basis for future cooperations of companies. Further activities: - Additional initiatives for specific topics, e.g. “Bergholz”, “Holzbau-Kultur”, etc. - Developing offers for the increasing excursion tourism: the project “Tannenland“ (programme for excursions) puts emphasis on the significance of the white fir. - Networking

Process

Timber Construction Future: 1. Phase (conception): the regional carpenters developed in cooperation with teachers the education and training programme (workshops with external moderation). 2. Phase: test stage for the programmes 3. Phase (evaluation and feedback): the results from the test years led to improvements of the project: supplementing the courses, extension of the common meeting of apprentices (reinterpretation of the “taking the road” (“Walz”): excursions to Sweden, visiting timber constructing and processing companies outside the region), integration of courses focusing social competency and leadership skills, etc. 4. Phase: annual implementation. Timber Construction Art: Preparatory work: forming an interest group aiming at common marketing activities. Timber Construction Art resulted from this interest group and learned from its experiences: significance of the active integration of architects ( the future deciders on material within construction), finding financial backers, etc. 1.Phase (conception) - 1 year): The main idea of the timber constructing award (setting new impulses within the region) was raised by the representatives of the profession groups timber processing and carpenters (Economic Chamber of Vorarlberg). Matthias Ammann (CEO QC Timber Construction) was another driving force for the realisation of the idea. The concept was developed in cooperation with sponsors and public institutions. Subsequently it was discussed in a meeting of the regional companies focusing wood and timber processing / construction. The meeting demonstrated the necessity of organisational structures for a sustainable implementation of the award. For this reason, the QC Timber Construction was founded in 2000. The following project phases repeat again and again: 2.Phase (implementation): the implementation was accommodated by integrated PR activities increasing the interest in the award (the award is highly effective in the media). 3.Phase (feedback): lessons learned from the first award (which put an emphasis on design): adding further and up-to-date themes concerning timber construction, e.g. energy efficiency and regional significance, etc. In order to react properly, the QG Timber Construction involved all participants in this evaluation and feedback process.

Results

- Timber Construction Art instigated further initiatives, e.g. “Weiß-tanne“, “Bergholz“, “Holz-Kultur“, etc. - Realisation of 4 awards with 160 participants in total (constructors, architects and “doers”). - Vorarlberg has gained leadership in timber construction (concerning architecture and design). - The demand for constructing with timber has doubled. - About 60 public buildings were established with timber in large parts (8 of these used exclusively the wood of the white fir), e.g. schools, social institutions, community centre, etc. - Increase of the forestal utilisation by 60.000 solid cubic metres per year, i.e. an increase of € 6,6 millions. - 35 company extensions. - Increase of sales by 60%. - Increase of export by 40% (to € 34 millions). - Increase of employees by 15%. - The timber construction takes leadership within the scope of energy-efficient construction. - 32 companies (i.e. 210 persons) partcipate in Timber Construction Future. Success factors:  Jointly action and development of a feeling of solidarity (“We have to take action!“).  Cooperation between handicraft and architecture (ecology)  Public Relation activities demonstrate all participants that their commitment is much valued and recognised. PR strengthens the participation in the project (attracting new applicants) because the prize is very effective in the media.  Commitment of the municipalities: they encouraged the usage of timber within public construction (e.g. schools, social construction industry, etc.) and caused the necessary changes of public building regulations (concerning fire prevention, etc.)

Evaluation

There is constant further development in every aspect: Timber Construction Art: - Feedback phase after each award. The discussion and evaluation integrates all participants (architects, financial backers, applicants and companies). The results cause an advancement of the covered themes. - A board (12 members) is responsible for a steady evaluation of Timber Construction Art: adjustment of the programmes, future conference for the long-term project planning, etc. Timber Construction Future: - An important evaluation took place after the first implementation (testing phase). It resulted in the extension of the common meeting of apprentices and the strengthening of education concerning social competency and leadership skills (significance of the existence future leaders within the timber construction). - Here too exists a group of teachers and carpenters responsible for steady evaluation. Further evaluation activities of the project: - Participating in awards (marketing awards) in order to obtain external evaluation. - Leader evaluation (“Leaderkreis Holz”): continuous communication of the project’s current state. Thought-provoking impulses and recommendations ought to prevent undesirable developments in time. - Analysis of the participating companies: sales, size, financing, etc. support the measurement of important ratios. - Observation of the market to recognise new developments and trends in time.

Difficulties

- Throwbacks concerning the invitation to tender for public buildings: if a municipality decides against timber construction due to financial reasons. In the meantime, these throwbacks could be reduced by the implementation of an integrated consultancy of the constructors. The constructors represent the link for raising awareness concerning the advantages of timber constructions (suitability, energy efficiency, etc.). - Legal obstacles, e.g. multi-storeyed buildings, fire prevention, etc. A lot of lobbying and convincing (working groups consisting of companies, architects, lobbyists, representatives of the State of Vorarlberg) is necessary to cause the municipalities to change the building regulations. - Remove prejudices (bad energy efficiency of timber, claddings made of timber get dark and ugly, etc.): PR activities and public discussions. - Bankruptcy and failures of single participating companies causes panic and scepticism among other companies of the project: communication (of the project participants), demonstrating the project’s success, providing support for companies having difficulties in time, etc. - Competition among the project participants themselves. The mutual underselling of the companies may cause the intensification of competition and a price decline: agree on a particular basic cost accounting to ensure a fair and high qualitative competition. - Permanent commitment and convincing to transfer the project’s prosperities and acquire new participants. - The performance of the building industry is regressing for years and represents a significant thread to the participating companies due to their large investments (upgrade, high level of technology even in small companies) - most of the companies have a high debt-equity ratio. Consultancy and support in time to provide confidence among the companies.

Budget

880.550 (Euro)

Financial backer

There are no international or national investors due to the project’s regional anchorage. This guarantees the project’s authenticity. Sponsors: many one-time sponsors (e.g. architects, Vorarlberger Karftwerke, etc.), Raiffeisenbank, etc. Equity capital: the members pay member fees according to the number of employees.  Total budget: € 880.500,- Total financing: LEADER+ EU funds € 220.250,- State of Vorarlberg € 72.000.- Funds of sponsors € 357.000,- Equity capital of participants € 231.250,- THEREFROM:  Timber onstruction Future – budget: € 440.500,- Financing: LEADER+ EU funds € 220.250,- Funds of sponsors € 45.000,- Equity capital of part. € 175.250,- The subsidy for the project “Holzbau-Zukunft“ is degressing to ensure the project’s transfer into economic autonomy.  Timber Construction Art – budget: € 440.000,- Fiancing: State of Vorarlberg € 72.000,- Funds of sponsors € 312.000,- Equity capital of part. € 56.000,- The financing of Timber Construction Art depends in large part on funds of sponsors.

Source of information

Competition

Participant at the 2005 Future in the Alps competition

Homepage

Homepage: http://www.holzbau-kunst.at News concerning the project and project reports: www.leader-vlbg.at

Comments

Impact on nature and environment

- Sustainable forestal utilisation: maintenance of protection forests, keeping the forests healthy and young, etc. - Increase of the forestal utilisation by 60.000 solid cubic metres per year. - Conservation of the cultural and natural landscape. - Contribution to renewable energy: generating biomass. - Shortening the routes of transport.

Economic value added

- The annual construction volume accounts for € 1.500.000.000,-. The share of timber was increased from 5% to 9%. - About 60 public buildings were established with timber in large parts (8 of these used exclusively the wood of the white fir), e.g. schools, social institutions, community centre, etc. - Increase of the forestal utilisation by 60.000 solid cubic metres per year, i.e. an increase of € 6,6 millions within the scope of forestry and sawmills. - 35 company extensions. - Increase of sales by 60% (the sales of the carpentries doubled since 1997). - Increase of export by 40% (to € 34 millions). - Increase of employees by 15%. - The work force within timber construction increased from 700 employees in 1997 to 900 despite rising mechanisation.  New working places? The work force within timber construction increased from 700 employees in 1997 to 900 despite rising mechanisation.  Multiplier effects to other sectors? Excursions tourism: about 40.000 – 50.000 tourists interested in architecture per year in Vorarlberg, generating additional income for tourism providers. Derivative products: e.g. Consortium tiled stove as total heating is a new partner (heating with fire wood), Venstermacher (30 carpenters of Vorarlberg offering windows made from regional wood), etc.  New markets? Various new products were developed for the regional market, e.g. innovative design within timber construction. New markets for the regional products: South Tyrol and Austrian Provinces.

Socio-cultural value added

New self-confidence has arisen in the region due to the leadership within timber construction. The population is aware of the significance of regional economic circles and cooperation. People of all ages are interested in the activities of the project and the new chances (concerning employment, projects and quality of life) which are resulting from it. The project Timber Construction Future contributes to the enhancement of the young people’s social competency. Even girls and women are more interested in a branch originally dominated by male employees (due to the rising mechanisation and the new job opportunities in the branch).

Innovative content

1. Handicraft and design cooperate leading to an intensification in the product development and a changing image. 2. Economy and Ecology communicate: timber is expensive but contributes to the environmental protection. 3. Communicating good practice examples to instigate imitation and a competition of ideas. 4. Creative and cooperative education and training fosters the exchange of knowledge and establishes a basis for new cooperations. 5. Cooperation platform: exchange of experiences between companies, instigating cooperations. 6. Level of technology in small companies (equipment and machines as well as products and designs).

Good governance

The initiative Timber Construction Art requires permanent coordination and communication with all participants. Therefore, the project chose a co-operative (Timber Construction Art, reg. Co-operative ltd.) for its organisational structures: it ensures the democracy of decisions and the participation of all members. The members discuss the projected annual programme of the project (designed by the board) in thematic working groups before deciding on it. The exchange of information is guaranteed by: - Regular board meetings (every 2 months) - Meeting of the working groups on the different projects (marketing, Timber Construction Art and Timber Construction Future). - Annual general meeting of the co-operative: invitation of regional stakeholders to ensure an integrated information within the region.

PR impact

- More than 160 press releases in newspapers and magazines since project start. - Timber Construction Art: the award is very effective in the media and, therefore, attracts more and more applicants. The winners provide PR for timber construction by communicating their success. The increased applicants for the timber construction award, the rising number of excursions, the rising demand for timber construction and the recognition of timber as regional and sustainable construction material demonstrate the impact of the PR activities.

Multiplier effect / networking

The created networking effect (and success) within the region becomes evident by looking at the regional participation in the project: 60% of the regional timber processing carpenters, 90% of the forest owners and the profession group of the sawmills participate actively in the project. The subproject Timber Construction Future contains the exchange and transfer of knowledge and know how. The education and training programme is designed in cooperation with experts. Furthermore, its topicality and future orientation (market trends, etc.) is guaranteed by regular annual evaluations and following adaptation. The subproject Timber Construction Art contains the creation of new knowledge (awarding as an incentive system for innovation within timber construction). Furthermore it encourages the development of new cooperations among regional, national and international companies. Multiplier effects involve the tourism sector by an rising number of excursion. The excursions represent a opportunity to raise the interest in timber construction and to socialise. Concerning the excursion tourism a Leader project is conducted at present in cooperation with the LAG Holzwelt Styria. The project processes good practice examples for excursion on a European level and make them available for the public. Exchange of know how and experiences takes also place on the national level via the Association of Austrian Wood Industries: internet platform, conferences and events, etc. There are rising inquiries about presenting the project Timber Construction Art from other Austrian provinces and from abroad: Hermann Kaufmann (architect and professor at the University in Munich), Matthias Ammann and others act as speakers. Further, the QC Timber Constructions aims at the integration of universities and other education institutions because they produce the future decision makers within the wood industry. The impact of the networking activities is demonstrated in the development of further awards for timber construction, e.g. Holzbaupreis Styria, award in Liechtenstein, etc. The QC Timber Construction is aware of its leadership within the scope of timber construction and the resulting opportunity to contribute to the overall objective of environmental protection. Therefore, it displays large commitment to networking an the exchange of know how.

Transferability

The transferability of the project idea (providing endogenous resources with value by regional processing) is bound to the following prerequisites: - Sufficient funds and a driving force in combination with a young group of carpenters. - A trilateral network of architecture – handicraft – ecology as basis for regional synergies. - The existence of architects and constructors being able and willing to apply timber construction. - Bilateral strategy for the project implementation: conducting market development and know how development at the same time. - The co-operative as form of cooperation due to its ability to create a feeling of solidarity. - Internalisation of the principles of the EU Community Initiative Leader+: promoting the region’s endogenous potential, building on the region’s strengths, creating acceptance and awareness within the whole region and ensuring a integrated participation.

Remarks

The interview with the contact person for the project may be found as download.

Further information