Canadian Forest Service Publications
An examination of market trends and opportunities in secondary manufacturing. 2003. Wilson, W.R. Pages 45-50 in S. Millar, F.M. Lamb, and W.B. Smith, Conference co-chairs. Quality drying: the key to profitable manufacturing, September 23-25, 2002, Montreal, Canada. Forest Products Society, Madison, WI.
Issued by: Pacific Forestry Centre
Catalog ID: 21322
Availability: Order paper copy (free)
The decade of the 1990s witnessed a shocking pace of fundamental change in timberlands management, processing technologies, markets, products, and corporate structure in forestry. Public sector institutions and private sector capital struggle to position the sector in order to sustain the stream of economic contributions historically generated by forestry. Secondary manufacturing in wood products has emerged in response to and because of these changes. Incremental processing is seen as a vehicle to provide additional employment and a more efficient utilization of timber supporting resource sustainability objectives. This paper discusses the drivers promoting secondary manufacturing including timber supply, employment goals, product performance and pricing, and industry concentration. Trade and production trends are examined for selection of secondary manufacture products - key engineered wood products, furniture, millwork, and profiled wood. The economic and market outlook in North America, Europe, and Japan for secondary manufactured products is presented. In conclusion, a number of macro-level market conditions in the sector are presented. Recognition and incorporation of these conditions within the business plan will influence future financial success in secondary manufacturing.