Rethinking your business to operate in a changing economy
The Canadian forest, paper and packaging industry is facing intense pressure. The US housing market’s downturn has also weakened demand for Canadian wood products triggering supply burdens on the pulp and paper sector, which in many areas relies extensively on residual wood from sawmills as a fibre source.
The strong loonie has not helped matters either. The dollar’s rise has resulted in less revenue and higher costs for this capital-intensive sector, which prices its products in US dollars. In addition, competition is increasing from regions, such as South America and Asia that produce plantation wood faster and more cheaply.
A long-standing industry issue that now receives even greater profile due to the climate change debate is public awareness and demand for sustainable business practices. Ironically, forestry has been one of Canada’s most progressive sectors in this regard, incorporating environmentally conscious policies long before terms like “carbon offsets” and “going green” became trendy. Yet the Canadian industry has struggled to get this message out as a way of differentiating itself from competitors.
To effectively compete in the global market for wood and paper products, you must attract and retain investment that leads to modernization and product-line diversification. Repositioning your company starts with awareness of the issues facing your industry, including:
PricewaterhouseCoopers serves companies across the forest and paper industry, including woodlands, pulp, paper, lumber, engineered wood products, composite wood, finished products and packaging, as well as wholesale and retail customers. We combine local and global knowledge of business trends and regulatory changes to develop solutions to help the forest, paper and packaging sector improve operational processes and utilize innovative thinking during an atmosphere of intense change.
Contact an industry professional in your area to learn more about what we can do for you.