Canadian Forest Service Publications
The globalization of value-added wood products. 2000. Wilson, W.R. Pages 21-30 in Proceedings of the Forest Products Society Conference “Vertical Integration= Improved Profit” September 1999, Seattle, WA. Forest Products Society, Madison, WI.
Issued by: Pacific Forestry Centre
Catalog ID: 5449
There is considerable interest in creating an institutional setting which serves to promote value-added manufacturing in most jurisdictions with a commercial forest products sector. Regional efforts to promote the value added sector need to consider the implications of a very rapid pace in globalization. This paper outlines the divergent rationale among sector stakeholders for promoting value added, defines globalization and provides the fundamental drivers contributing to globalization. The implications of globalization on value-added manufacturing are examined drawing upon information on trends in rapid growth plantations, mouldings and medium density fibreboard products and the British Columbia industry. Lessons from this information will clarify the challenges to the viability of value added enterprises and suggest options to improve the positioning of the sector to meet these challenges. Trends within the sector suggest that fibre access is a necessary condition but certainly not a sufficient condition for firm viability in value added. Instead, product cycle timing, market proximity, pricing, product quality and customer servicing are increasingly the key components of success in ever more competitive value added markets.