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From the Publisher

By Joe Perraton, President Forest Industry Network

The new forest industry

The world changed ten years ago, but it seems there weren't a lot of people in the industry reading the writing on the wall. The late 90s seemed like a time of endless growth in the industry. Trade shows and conferences had record attendees and exhibitors, log and lumber production was growing at breakneck speed, and everyone seemed to be making money. During the first eight years of the new millennium some of the fundamental factors driving the industry changed. The economics of supply and demand, foreign competition, politics, technology, environment, and a litany of other factors slowly put the squeeze on the industry in ways no one could have predicted. Today, the North American forest industry is drastically different than it was eight years ago and it is already on its way to becoming a much different industry in the future.

While anyone who's been working in the forest industry for more than a decade will attest the "boom and bust" cycles are nothing new, they will also quickly acknowledge this one is different. So here we are at what seems like a major turning point in the history of the forest industry. This is a turning point which may have been started within the industry some years ago, but it is now is being radically altered by global financial crisis, the green movement, and far-reaching shifts in politics. The mantra in the new forest industry will be "do more with less, do it in a sustainable fashion, and make it environmentally friendly." While these horns have been trumpeted in the industry before, they will now become a matter of survival for most businesses.

Technology will be a key driver in the new forest industry. Companies, organizations, and institutions will turn over every stone from the forest floor to boilers in the pulp mill to find ways to save money, and ways to create different products and different ways to sell them. From continued technological improvements in harvesting and processing to new satellite and Internet technology, every competitive advantage will be needed to be successful in the new forest industry.

Being successful in the forest is no longer a simply a case of getting timber from the stump to market in a cost-effective manner; now businesses have to approach the working forest in a whole different way. Cost-effective, adaptable, environmentally friendly, and technologically advanced companies with more diverse product/service offerings will be the winners. Whether it's carbon credits, bio-energy, new engineered wood products, or continued environmental certification, there will be plenty of opportunities for those who embrace change.

Forest Industry Network has been leading the industry on the Internet for over 13 years and the launch of Forestbook marks a bridge between the industry many of us grew up with and the forest industry of the future. While much of the focus has always been on new technology in harvesting and wood processing, we focus on some of the important bigger picture technological and industry changes and opportunities. We want to help you see which way the wind is blowing and what types of technology exist to help your business prosper in the new forest industry.