Post on 24-Dec-2015
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Value-Focused Forestry in British Columbia: Competitiveness and Sustainability Issues in the
Secondary Wood Products Industry
Wellington Spetic, Robert Kozak, and Thomas Maness
Faculty of Forestry
The University of British Columbia
4th Floor - Forest Sciences Centre
2424 Main Mall
Vancouver, BC V6T 1Z4, Canada
Email: spetic@interchange.ubc.ca
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
1. Background
2. Objectives
3. Methodology
4. Results
5. Future Research
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Background:
- The forest sector is one of Canada’s major economic
powerhouses:
- the world’s largest exporter of forest products;
- forest industry accounts for nearly 3% of the GDP;
- over 10% of its total exports.
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Background:
...in the primary sector,
BC - with its large endowment of unique wood resources and access to strong markets - is Canada’s frontrunner…
Source: www.wildnatureimages.com
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Background:
however, this scenario is changing quickly for BC’s primary sector:
- mountain pine beetle infestation;- higher input prices (e.g. energy);- shifting demand for traditional commodities;- changes in export markets;- competition from lower-cost regions;- trade disputes (i.e. softwood lumber agreement);- appreciation of the Canadian dollar.
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Background:
MPB infestation
Source: BC’s Ministry of Forests and Ranges
Source: BC’s Ministry of Forests and Ranges
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
Jan-04 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07
US$
Oct 07 = US$ 1.03
All-time high = US$ 1.06
C$ appreciation
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Background:
A new paradigm change for British Columbia - shift from a volume-based to a more value-focused forest sector.
In line with sustainability concepts (i.e. economic + ecological + social values).
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Background:
...a value-focused forest sector in BC would better take into account notions like:
- commodity industries wherever most appropriate;
- higher value commodities from more flexible mills;
- secondary wood products;
- non-timber forest products;
- ecosystem services.
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Background:
Competitiveness - A Dynamic Concept
The term is used interchangeably with:
- comparative advantage (economic cost of production);
- financial performance of firms;
- productivity or technical efficiency;
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Background:
Competitiveness - A Dynamic Concept
The term is used interchangeably with:
- overall performance of countries, regions, or industries;
- qualitative management concepts (firms’ capacities, human capital, innovativeness, knowledge-based value creation).
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Background:
Increasingly, firms are incorporating sustainability issues
into their business strategies and operations.
for larger, multinational corporations:
- access to potential new markets and to ethical
investment funds;
- the ability to attract and retain top human resources;
- the creation of non-tangible product value;
- competitiveness, legitimization, and ecological
responsibility.
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Background:
for Small and Medium Enterprises (SMEs):
...the jury is still out!
when compared to larger firms...
- SMEs tend to be more reactive, small-scale and ad hoc in their changes.
- virtually all secondary wood products industries are SMEs.
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Objectives:
For BC’s secondary wood industries, we want to assess:
- long-term competitiveness factors of firms;- sustainability issues; and- their interrelationship.
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Methodology:
There is an increasing need for inter- and multi-disciplinary research strategies.
Yet, literature indicates that there is no single universally adopted and practised methodology for measuring competitiveness, sustainability issues, and the relationship between the two.
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Methodology:
... on the negative side: it may hinder the ability to easily draw from existing
studies.
... on the positive side:unique opportunity to address these issues in BC’s secondary wood industry and benchmark them against other producing regions.
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Methodology:
• Existing literature• Theoretical ideas and
notions
• Qualitative and quantitative empirical evidence or data
• Descriptive and inferential results
• Refining and understanding of the phenomenon
• Final representation
• Analytical framework• Classification and
categorization of the phenomenon
Deduction
Retroduction
Induction
Research Framework
Adapted from: Ragin (1994); Jeucken (2004)
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Methodology:
Today’s presentation includes information from:
a. the current literature; and
b. in-person and telephone interviews.
Content Analysis
Descriptive statistics
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
BC's Total Wood Products Manufacturing Shipments
0
2
4
6
8
10
12
1996 1999 2002 2005
C$ b
il.
Primary
Secondary
...the current situation:
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Denmark
Germany
US Great Lakes
Ontario
BC
5 -
1 -
3 -
Management
Capability
Workers Skill Level
Clustering
Policy
Industry & Market Structure
Te chnology
Raw
Material
Secondary Wood Products Manufacturing: performance on selected qualitative dimensions of five global regions
Source: Jaakko Poyry
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Few (if any) scientific studies on competitiveness, sustainability, and their interrelationship on BC’s (SMEs) wood products manufacturing sector.
As far as other developed economies and industries are concerned...
1. Competitiveness & SMEs:
- under unprecedented pressure from globalization;- need to learn to cope with a new production
paradigm;- need to engage in knowledge-based economic
activities;
...the current situation:
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
1. Competitiveness & SMEs:
- innovations and value generating activities;- (-) SMEs lack the resources for large investments;
but- (+) SMEs are flexible and quicker to adapt;- (+) SMEs have increased in most developed
countries;
...the current situation:
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
2. Sustainability & SMEs:
- almost entirely focused on larger enterprises;- linkages with larger companies’ supply chains;- SME’s cumulative impact high importance for
sustainability;- business case for sustainability can create
opportunities; but can also act as a market barrier.
3. Competitiveness Sustainability:
- Literature shows positive, negative, and no relationships.
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Results:
1. Long-term competitiveness factors for BC’s secondary
sector:
a. innovative management.
- entrepreneurial culture
- “business people”
- market forces government
- ability to attract capital
- design
- good sourcing
- customers services
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Results:
b. specialization.
- higher-end customized market
- commoditizing product markets
d. branding.
- technology & design
e. each segment needs its own mix of traditional factors.
- i.e. access to technology, fibre, capital, markets,
and labour.
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Results:
2. Sustainability.
a. the Green Building effect
- green value-chain
- BC’s booming construction sector (residential,
2010 Olympics) specifiers LEED points
secondary producers and their suppliers
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Results:
3. Competitiveness Sustainability.
a. the Green Buildings and Healthy Houses effects
- SMEs dependent on value chain
relationships.
- first-mover advantages
- differentiation opportunities
b. others
- “green” capital? targets for SRI?
- “green” process innovations vs. end-of-pipe
remedies?
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Future Research:
- complete the inductive phase
- empirical measurements (survey research)
- as a benchmark, extend the study to NZ, Chile, and Brazil
- finalization (retroductive) phase (policy recommendations)
IUFRO ALL-Division-5 Conference "Forest Products and Environment – A Productive Symbiosis” October 29 – November 2, 2007 - Taipei, Taiwan.
Thank you!
Email: spetic@interchange.ubc.ca