Analysis of forest and wood
products sector outlook
survey – January 2014
Presented by:
Sustainability at Work
February 2014
Preamble
The analysis of this research is conducted by Sustainability at
Work on behalf of the Forest and Wood Products Australia
(FWPA).
•
• All information in this report is strictly commercial in confidence
and is copyright 2014 to FWPA.
• Rounding of the data sets has been undertaken where only
whole numbers are reported.
• Sustainability at Work is a member of the Australian Social and
Market Research Society (ASMRS) and thereby abides by the
ASMRS Code of Conduct in relation to the analysis and reporting.
Research Methodology
• Online survey conducted between 15th and 29th Jan 2014.
• The survey was distributed anonymously via FWPA and
partner databases.
• Total number of respondents n = 253.
• Results are not statistically significant and are indicative of
the opinions of the respondents only.
Who responded to the survey?
Knowledge of the forest & wood products
industry
What did they think about the future and
what were the issues?
Outlook for forest & wood sector
Top 5 issues for the industry
1.
2.
3.
4.
5.
Innovation in products and processes
New investment
Improvement in productivity
Resource scarcity
Increased domestic demand
Note: Identified as having less of an impact were government
regulation and green groups.
Importance of issues for the industry
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Importance of issues
by knowledge
Little
Reasonable
Lots
Total
4.33
4.15
4.44
4.26
Innov'n in prd/process
4.2
4.35
4.38
4.35
Improved productivity
4.13
4.23
4.27
4.23
3.6
3.99
4.25
4.04
Inc domestic demand
4.07
4.08
4.22
4.12
Resource security
4.53
4.07
4.12
4.13
Foreign exchange
rate
3.2
3.85
4.1
3.87
4
3.91
4
3.95
Labour costs
3.6
3.77
3.98
3.82
Social licence
3.87
3.89
3.96
3.91
4
3.82
3.96
3.88
Inc in export demand
3.67
3.69
3.82
3.73
Inc collaboration
3.87
3.76
3.78
3.78
Inc in plantation estate
3.93
3.72
3.78
3.76
Govt regulation
3.73
3.81
3.69
3.76
Chg Fed govt leg
3.64
3.8
3.69
3.75
Actions green groups
3.67
3.56
3.67
3.6
Chg to state govt leg
3.8
3.81
3.63
3.75
Tax & govt charges
3.47
3.4
3.61
3.47
New investment
Better mkt price
Those with lots of
knowledge had greatest
deviation from rest with
• new investment
• increase in domestic
demand
• better market price
• foreign exchange
Workforce skills
Energy costs
Unprompted top 5 issues vs prompted issues
Priority
Prompted Top 5 Issues
Unprompted Top 5 Issues
1
Innovation in products or processes
Innovation in products or processes
2
New investment
Resource scarcity
3
Improvement in production
Workforce skills
4
Resource scarcity
Competition*
5
Increased domestic demand
Increased domestic demand
* This was an additional category added for unprompted
Unprompted issues
16%
14%
12%
10%
8%
6%
4%
2%
0%
Additional Issues
Verbatim Quotes
“There is a clear need to improve how forest industry advocacy is done in
Australia - there are too many organisations which require large subscriptions in
order to stay afloat at a base level, let alone have any substantial influence - need
more services for the total fee base.”
“Most people think the forestry sector is about trees. The industry has not
understood macro economics, resources and the wider national interest. If it did, it
would be in the top 5 industries demanding productive, competitive, sustainable
management policies. These are not of concern to the industry and others,
because Australians must survive in the ridiculous high cost country environment.
We all, including foresters, accountants and governments are hooked up in the
unproductive high cost non-viable economic scenarioThe forestry industry needs
to adopt a totally new whole of industry resources approach.”
Q15. One thing you would change to
improve the industry
Q15. One thing you would change to
improve the industry - verbatim
“A shared vision and leadership aligned to this that is globally aware, market
growth orientated and enthusiastic about the role & value of science and
innovation for the sector.”
“Improved community and environmental movement perception of forestry and
the forest industry, leading to a more positive operating environment for forestry
- the things that follow are better research support, more opportunities for
participation in environmental solutions and more interest from people in
involvement in the forest industry.”
“Develop more value chain oriented thinking within sectors - work
collaboratively to foster highest & best uses for all fibre outputs - with the focus
on getting the most (collective) returns - then allocate returns within the chain.
The present arrangements have led to sub-optimal outcomes.”
Q15. One thing you would change to
improve the industry
Q17. What can be done to improve the
international competitiveness of the Australian
forest and wood products sector?
Q17. What can be done to improve the international competitiveness
of the Australian forest and wood products sector? Verbatim
“Amalgamate industry representative bodies under a single umbrella and use resources to lever
Government funds to establishing a National Research Education and Training centre. A Centre
that does the work rather than fund a myriad of other agencies to do the work.”
“Stable AUD, increased and stable quality backed up with excellent technical service. A deeper
understanding of the real needs of the consumer sectors and product development driven by real
needs on the local target market, only develop where sustainable competitive advantages can be
identified and exploited --> needs based R&D. Explore new business models and operating
approaches which work on collaboration and sharing the gains approach.”
“The industry needs to take advantage of the superior qualities of Australian hardwood species to
develop high-value, niche products for the domestic and export markets (instead of "wasting" the
resource by using it for sleepers, etc). these could be incorporated into innovative building systems
that drive demand for timber and wood products.”
“Increased research in genetics (GE not GM), best practice, precision silviculture, and 'high tech'
timber products (eg CLT). Increased foreign aid to help provide alternatives to communities
dependent on illegal forestry practices, and removing these cheap illegal products from market.
Increased certification.”
Industry leading organisations
18. What are the 5 most influential organisations in the Australian
forest & wood products sector – unprompted?
1.
3.
2.
4.
Top 6 INFLUENTIAL organisations
(from list - prompted) by knowledge level
FWPA
Reas.
AFPA
EWPAA
VAFI
CFMEU
AWU
Lots
Reas.
Lots
Reas.
Lots
Reas.
Lots
Reas.
Lots
Reas.
Lots
1–
3%
least
3%
0
4%
3%
9%
3%
6%
4%
2%
11%
13%
2
12%
17%
15%
7%
10%
17%
20%
17%
16%
18%
23%
29%
3
27%
24%
28%
35%
24%
30%
24%
33%
22%
38%
27%
24%
4
31%
26%
34%
28%
20%
22%
19%
22%
27%
20%
11%
16%
524%
most
30%
13%
17%
4%
2%
4%
9%
19%
13%
10%
2%
DK
0
10%
9%
39%
20%
30%
13%
12%
9%
18%
16%
3%
20. When thinking about an organisation's influence, what are the
criteria that come to mind?
20. What are the criteria that come to mind? Verbatim
“Important to have a unified approach, consider pooling resources and research topics, have
both technical research & development and market needs analysis connected closer. Increase
international collaboration both with external R&D and also from Government support level
assist in development of Innovation Parks, i.e Building Research Establishment UK
development of Innovation Parks in Beijing and Rio, supporting UK business to expand and
develop its business overseas. In the construction sector, greater influence on building
performance and standards to facilitate the use of better performing building materials. Support
the development of exportable industry standards and building systems especially to the
developing World.”
“Market share, capacity to influence forestry through policy decisions (e.g. tax deductibility of
planting costs), multi State presence, active in domestic and international markets,
disproportionate influence on forest and wood products investment.”
“Influence on government policy, public awareness and profile, progress achieved on issues.
Support provided to the industry as a whole.”
“Promotion, research, information sharing, social influence, professional information gathering
and source”
Membership by knowledge of industry
Members
of FWPA
Little
Reasonable
Lots
Yes
36%
46%
56%
No
27%
52%
44%
DK
37%
2%
0%
Members
of IFA
Little
Reasonable
Lots
Yes
0%
39%
59%
No
64%
56%
36%
DK
36%
5%
5%
FWPA and IFA
were the only two
organisations that
had significant
membership. IFA
however was
rated very low on
influence.
Next closest
membership was
AFPA with 30%+
and Forestworks
with 20+%.
Training and Expenditure
Training Focus in Next 12 Months
• General comments reflect a need to implement across the board from
basic literacy and numeracy, practical and OWS, to business skills, to
systems, to leadership.
• 23% said there would be more spent on training with over half saying
training expenditure will stay the same.
Training Focus - verbatim
• “Systems and administration -Market forecasting, Logistics and
Production scheduling”
• “Legislative training Professional development”
• “More closely aligned with business needs.”
• “OH&S , Middle management, supervisor training”
• “Harvesting; safety; wildlife management; compliance”
• “Basic literacy, numeracy skills”
• “Focus on young staff for future Management roles”
• “Biomass opportunities, for example cellulosic bio materials and
bio energy derived from wood”
• “General upskilling of most persons to allow flexibility
throughout the workforce. New systems implementation will
require training to support and operate them”
Capex in the next 12 months
Capex in
next year
by
knowledge
Levels of Capex in the next 12 months
Levels
of Capex
by
knowledge