An inability to increase profitability has been identified as the main barrier to raising productivity and international competitiveness in New Zealand's forest industry.
In a new study entitled Building a Stronger Future for Wood, the Wood Council looks at what the sector's priorities should be for the future and barriers that
need to be overcome.
Council chairman Doug Ducker said the industry was looking to the future.
"While we still need to do more as an industry to support industry-good activities, the co-operation involved in putting this study together shows that the industry has come a long way."
The strategy expected to come from the document will be used to provide direction for the industry itself, the Government and related industries.
Based on interviews with industry leaders between November and May, the study found the cyclical nature of the sector had encouraged companies to take a short-term view, with a focus on minimising costs in the face of low demand and increasing competitiveness among solid wood processors.
"The industry has also faced frequent changes in ownership, with the result that it now has very few vertically-integrated companies," the study states.
A longer-term outlook has been recommended, with a strategic focus on the future, to encourage the progressive investment in plant, equipment and skills required to improve productivity and remain internationally competitive.
Building a Stronger Future for Wood advocates a more collaborative, industry-wide approach to strategy and to industry representation.
"It's essential for the industry to deal collectively with problems that are common across the value chain and it should speak with a strong, single voice."
Greater resources for industry associations to better represent members were also identified as necessary for better promoting forestry and woodprocessing to the public and at government level.
A more collective approach is also expected to rebuild some of the trust lost through "industry behaviour inside markets" and to look at the possibility of creating a recognised international and domestic brand.
The study has identified a closer alignment between growers and processors as key to achieving growth, security of log supply, pricing and wood quality.
It also points to a need for a closer relationship with research, to be supported by stronger lobbying to the Government for more research funding in this field.
