Market Effects of Wood Promotion Jan Hagstedt Senior

1 Raw material 2 Product Know how Interest/Good examples - Arguments - Tools

What is wood promotion? q From a supplier – generic? q Hardwood – softwood?

Possibilities: q Interesting market Sustainability & Environment Positive attitudes q Raw material abundant q

Limitations: Wood is “not present” q Know how & education q Fragmented branch q“Cut

Checking: The wood resource Products The market

The wood resource, Europe q Net increment in 10 years 2 billion m 3

The market Theoretically 45 -50 m m 3 remains Market? Wood culture? Wood: leading

Our working environment Forest PR - agent Politicians Opinion formers Local actors Building contractors

Success stories: 1 Germany: Profilbretter + 2, 2 million m 3 interiors 2 Japan:

Assess the market possibilitiesthe strategy, the plan and act! q q Firm resolution to

The Nordic Timber Council case: 1993 – 2001 106 % +14 89 107 +20

Timber 2 000 – Wood. For good UK - A promotion approach Main Campaign

Timber 2000/ Wfg UK June 2000 – June 2002 Wood windows (BWF) (projection till

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Market Effects of Wood Promotion Jan Hagstedt Senior Advisor

1 Raw material 2 Product Know how Interest/Good examples - Arguments - Tools

What is wood promotion? q From a supplier – generic? q Hardwood – softwood? q Spec products – general wood? q Commercial – PR – Information?

Possibilities: q Interesting market Sustainability & Environment Positive attitudes q Raw material abundant q Marginal promotional efforts so far q Practical problems can be solved In Short: Favourable!

Limitations: Wood is “not present” q Know how & education q Fragmented branch q“Cut the cake” – attitude q Confidence/ reliability from end users Does the wood sector believe in itself?

Checking: The wood resource Products The market

The wood resource, Europe q Net increment in 10 years 2 billion m 3 (under bark) or 1, 1 billion m 3 sawlogs or 550 million m 3 sawn products Source: European Forestry institute q Present growth: Corresponds to around + 65 million m 3 sawn timber Can this happen? To what effect? Where is the market?

The market Theoretically 45 -50 m m 3 remains Market? Wood culture? Wood: leading mtrl By 2 010 ? Europe: 50 % TF total 105 millions +15 -20 million m 3

Our working environment Forest PR - agent Politicians Opinion formers Local actors Building contractors developers Specifiers Media Clients Wood product Manuf. Products, systems General public

Success stories: 1 Germany: Profilbretter + 2, 2 million m 3 interiors 2 Japan: Nordic softwood + 1, 5 -”- housing + 4, 5 -”- decking 3 Southern USA – SYP

Assess the market possibilitiesthe strategy, the plan and act! q q Firm resolution to go ahead! “Bake a bigger cake” q Involve the best possible “brain power” q Network!

The Nordic Timber Council case: 1993 – 2001 106 % +14 89 107 +20 Sweden+Finland, prod 21 28 +33 Export 16 22 +60 Consumption Europe Production Prices (index) - ” - 1993 93 +10 - 18 %

Timber 2 000 – Wood. For good UK - A promotion approach Main Campaign Activity Key Impact Parameters Promotion & ‘Fulfilment’ Advertisement Opinion Behaviour -Time - Consumption

Timber 2000/ Wfg UK June 2000 – June 2002 Wood windows (BWF) (projection till 2004 + 18 % + 56 % Deckings (TDA) + 20 -30 % 1995: £ 5 m Now: £ 100 m Target: Results : 0, 25 m 3/capita by 2003 - 2005 +600 000 m 3 or 1/3 of target Evaluation by Jaakko Pöyry Consulting, London