Processing

Chasing Profit in the Forest Products Industries: The Twelve Missteps to Avoid

Sustainable forestry depends on a continuous stream of financing for thinning, for protection against fungal and insect infestation, the removal of weed species that interfere with the natural forest and for fire protection, among other hazards. This funding can come from a number of sources: government, which relies on taxation, private support based on eleemosynary motives or income generated from the forest itself, e.g. selling timber. The only reliable purchasers of timber, at least in the long run, are profitable private enterprises that convert timber into lumber, plywood, composite wood products and other materials required for building construction, furniture and cabinetry and the many other aspects of our economy. Clients of our forest industry marketing research firm from time to time set as a target to increase ‘profit’ some fixed percentage each year and ask LGA how we would recommend going about it.
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