Gaining competitive Advantage in the new normal

Document Type

Article

Publication Date

1-1-2012

Abstract

The financial crisis that started in mid-2008 has led to a subsequent economic recession. Although officially declared over, global financial degradation may result in a 'double-dip' recession with no substantive relief in the near future. Consequently, fundamental shifts within global forestry and the forest industry sectors have taken place with disruptions, dislocations, and uncertainties felt through the entire chain from the forest to markets. This is the worst downturn for forest products markets since the first oil crisis in the 1970s. Manifestations have included decreased demand, fluctuating prices and changed exchange rates, increased competition, overcapacity, low profitability, wood supply problems, and competition for raw materials exacerbated by the emerging bio-based energy sector. Although the ability of the forest sector as a whole to experience strong growth during the recession and when recovery begins is doubtful, there are many actions that individual companies can take to create competitive opportunities during the crisis and solidify position when markets strengthen. This article presents specific actions that can be taken to create or maintain competitive advantage across the forest sector supply chain in this time of crisis. ©Forest Products Society 2012.

Publication Source (Journal or Book title)

Forest Products Journal

First Page

420

Last Page

428

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