As in the paper industry the timber industry has been faced with rising raw material prices and increasing competition for timber wood. With the recent economic downturn this has reversed with prices expected to rise again modestly. Demand for finished products has dropped with the global decline in the building industry. The timber industry is characterized by a large number of small- and medium-sized, privately owned companies and few larger players. Capacity curtailments and closures are underway to re-balance supply and demand. driving consolidation of uncompetitive assets.
In addition to securing the raw material sources, success factors in this industry depend on either operational excellence to serve the highly commoditized market segments, or an extension of the value chain. Forward integration and marketing focus on the end customer is a continuing trend to capture a higher value-add.
StepChange supports companies in this sector to increase their competitiveness through cost reduction, supply chain integration and definition of market strategies.