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October 2003   July 2003    April 2003     January 2003     Spring 2002        Winter 2001     Fall 2001

A publication of Vermont Woodnet, a network of small wood workers in Addison and Chittenden Counties working to support Vermont wood products businesses based on a commitment to the sustainability of the forest

With no formal woodworking training, Jones was hired in 1977 at Vermont Folk Rocker, now located in Starksboro. Over the next five years, he learned the trade as an assistant to several area woodworkers, and in 1982, he opened his own shop at his home. In 2001, Jones was featured as one of the top 125 craftsmen in the country in Taunton Press's The Custom Furniture Sourcebook: A Guide to 125 Craftsmen, a coffee-table book by Kerry Pierce. Jones was chosen by a jury of woodworkers who reviewed candidates from all over North America over a two-year period.

For many years, Jones relied on books and magazines to help refine his technique. "When you are on your own, it's hard to meet other woodworkers," says Jones. "People would mention names of others in the area, but there was no forum to meet or communicate, and it's hard to find the time or energy [to do so]." While looking for a local group that could offer education, moral support, and skilled labor, Jones heard about Vermont WoodNet, a woodworkers network of more than 100 small-scale wood-related businesses in the western Vermont counties of Addison and Chittenden.

Joining the group provided immediate benefits. "At the first meeting, I met Peter Schoen and helped him with his web site, and then he did some subcontract work for me that eased my workload."

Now, Jones believes that participation in a core group of woodworkers, like WoodNet, is essential to his business. "Sometimes it provides a valuable business lead, like meeting Bob Lavallee who sharpens saws 20 miles away when I used to mail my saw out of state," says Jones. "Other times it's a needed social outlet - an opportunity to meet other like-minded woodworkers and talk shop. I'd rather hear about the performance of a machine from someone who has used one for years than read about it in a magazine."

Artisan or entrepreneur?

Bob Bouvier of WoodUBelieve in South Burlington, Vermont, estimates that there are more than 600 businesses like Jones' in the state of Vermont. And though these companies have sales of $900 million and employ 6,000 workers, 65 percent of them employ fewer than five people, according to a 1997 report.

"The demographics of this sector typically include independent entrepreneurs, who describe themselves more as artisans than businesspeople," says Bouvier. "Their work is custom-, not production-oriented, and their businesses are physically isolated. Most woodshops are located in basements or garages without a storefront presence or even a business shingle. Most woodworkers work alone or have one or two employees, and their main method of marketing is word-of-mouth."

The remoteness of these small woodworking businesses can make it difficult for them to locate materials, labor, and markets. Finding sources for materials is a time-consuming process, says Gary Svetlik, of Svetlik Designs in Hinesburg. "For a sole proprietor, an hour spent on the phone is an hour the shop is closed." Svetlik noted that due to lack of information about local sources, he has purchased materials from out of state that were not necessarily better or cheaper, and were probably available locally. And Svetlik is not alone. Woodworkers across the rural region of the Northern Forest of Maine, New Hampshire, Vermont and New York face a host of similar challenges.

Transportation can often be difficult in communities that are connected by poor road systems. "Despite being only five and eight hours from markets in Boston and New York City, the cost of delivering large items, like furniture, can be prohibitive, and bulk or cooperative transport often only benefits larger manufacturers," says Chris Krauss, coordinator of Maine WoodNet, another network of woodworkers, which serves western Maine's craftspeople. "Many woodworkers spend their own valuable time delivering items themselves."

Custom shops also have unique needs when it comes to finding trained labor. "It's not easy to find someone who will make parts when you need only 5 or 50 - not 5,000," says Svetlik. Vermont has a concentration of skilled woodworkers, said Svetlik, but the work of technical schools needs to be augmented by opportunities for on-the-job training, so new woodworkers can develop their skills.

Beyond the local challenges, globalization continues to influence the flow of wood products, and small businesses are finding it increasingly difficult to compete with multinational corporations. "Now that companies can do business anywhere," says Spencer Phillips, resource economist with The Wilderness Society in Craftsbury Common, Vermont, "they can seek the cheapest labor and raw materials, putting locally based manufacturers at a disadvantage. Local businesses need to seek another comparative advantage for their products besides low prices, such as accentuating the value of being a local or unique product."

Creating an image - a brand - is one way for the makers of Northern Forest wood products to establish a market advantage. "Vermont products already have tremendous consumer appeal based on our reputation for quality craftsmanship and an association with a forested landscape," says James Burde of Teiki-Techture in Jericho, Vermont. "Vermont businesses can build on that with custom-made products using alternative materials like green certified or character wood." People are willing to spend more provided they get good value, especially, says Burde, "when they know they are getting something unique, and that it was developed by a skilled craftsperson and the result of years of training."

Maine WoodNet is trying to help local woodworkers capitalize on that local appeal. In November 2001, it opened SugarWood Gallery, Inc., in downtown Farmington. Chris Krauss says the idea was to "bring urban customers to rural woodworkers and their products, rather than the other way around." The gallery celebrates the taste, smell, and sight of western Maine by featuring local forest-based products, including those made of wood and agroforestry products like maple syrup and balsam fir pillows. "In addition to natural heritage, local culture is also tied into the brand," says Krauss. "So many customers spend time in here, asking how things are made. I think after the tragedy of September 11, customers are going to be more interested in supporting local businesses and buying locally made products."

In cases where the customers can't be brought to the product, however, the Internet has proven to be a boon for small, rural businesses that lack a storefront, an advertising budget, or a portfolio. And woodnets, as umbrella organizations, can help a small business enter the electronic marketplace by defraying the costs of an individual business's online presence, facilitating promotional activities, and educating businesses on how to market effectively.

A New England tradition with a European pedigree

Woodnets are an old tradition in New England. The maple syrup industry, for example, thrives on formal and informal business relationships between sap producers and syrup makers. These associations are partially modeled after the flexible manufacturing networks (FMN) commonly found in Europe. "FMNs offer the infrastructure for multiple businesses to come together around joint projects," says Yurij Bihun, executive director of Shelterwood Systems in Burlington, Vermont. "It allows a business to temporarily gear up for a higher production by pooling resources and expertise without becoming a larger manufacturer."

In January 2001, members of Maine WoodNet and the Maine Wood Products Association (MWPA) manufactured a unique conference table for Governor Angus King. Made out of green-certified yellow birch and sugar maple, including some birdseye, the table included a three-dimensional topographical map of the state of Maine, identifying the state's mountains, rivers, lakes and islands, and dotted with tourmalines, a Maine semi-precious gem to depict significant towns and cities. Maine WoodNet coordinated the businesses involved while MWPA raised the money for the project. "This table could only have been done by quality custom woodworkers and artisans," says Krauss, but "without the MWPA, this contract would never have found its way to our rural outpost."

Maine WoodNet and MWPA continue to operate as complimentary networks to support value-added manufacturing, and a similar collaboration is occurring in Vermont. Vermont WoodNet has joined forces with the Vermont Wood Manufacturers Association to support the Cornerstone Project, an agreement between Fletcher Allen Heath Care, University of Vermont, Middlebury College, and Vermont's Department of Buildings and General Services to purchase wood and other products that are "economically priced, environmentally friendly, and socially responsible" from Vermont manufacturers. Members of the two organizations are also following the Mainers' lead by working together to design and build a conference table for Vermont's Governor Howard Dean.

Regardless of the scale, local manufacturing has much to offer the economies of communities in the rural Northeast, because the revenue per product can be nearly 20 times that of the raw material itself.

"With Vermont WoodNet, we don't see each other as competitors, rather as members of the same team," says Svetlik. "We're willing to help the next guy because in the long run, everyone gains."

BIO: Kelly Ault is a freelance writer from Middlesex, Vermont, and is the Project Director for Businesses for the Northern Forest, an association of businesses in Maine, New Hampshire, Vermont, and New York working on land protection, sustainable forestry, and sustainable economic development projects.

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