Weakening economy versus tighter requirements Study on forest machine enterprises

Transcription

1 Weakening economy versus tighter requirements Study on forest machine enterprises Markku Penttinen Arto Rummukainen Jarmo Mikkola Finnish Forest Research Institute Bo Dahlin University of Helsinki NSR-conference Copenhagen 23 September 2008 / Metsäntutkimuslaitos Skogsforskningsinstitutet Finnish Forest Research Institute

2 Urgent demand for studies Forest industry outsource harvesting and supervision more domestic wood needed (10-15 milj m 3 according to Forest Industries) Forest machine enterprises pressure to reorganise into larger units first generation retires difficulties to get operators costs increase

3 Compensation do not follow costs Index, Base year 2000 = 100 Harvesters, Forest machine index by Statistics Finland Salary Fuel and oils Reparation and service July - Capital Interest Harvesting and transport compensation

4 Number of machines do not follow removals Index, Base year 2001 = 100 Harvested volumes and harvesting machines 115 Stumpage harvesting, m3 110 Road side harvesting, m Total roundwood harvesting, m3 Number of harvesters 95 Number of forwarders Compensation for harvesting, /m3 Share of first thinning wood on total harvested volume, % (Metsäteho Oy)

5 Wood versus work Index, Base year 2001 = 100 Work and wood prises 165,0 155,0 145,0 135,0 125,0 115,0 105,0 95,0 Total roundwood removals, m3 Harvesting cost, /m3 Pine log stumpage price, /m3 Spruce log stumpage price, /m3 Pine pulpwood stumpage price, /m3 Spruce pulpwood stumpage price, /m3 Harvester operator wage, /h Forwarder operator wage, /h 85,

6 Profitability development of service businesses of wood procurement enterprises, METLA till 2010 Target Better profitability of harvesting business Sub projects Structure of enterprises and competitive environment Business models and processes Development of profitability follow-up system Development of service concepts and network economy Clearing structural barriers against entrepreneurship Effects on local and national economy Environmental impacts Extension

7 Data collection: Databases Finnish Vehicle Authority AKE -Forest machine registration data june harvesters and forwarders total Removal of unvalid data -machine owner: school, bank, factory, etc. - enterprises 2271 and machines 4748 left Statistics Finland -Tax, company et.al. Databases Companies 2271 and machines 4698 delivered with enterprice number to Statistics Finland - Found companies 1864 and machines 4248

8 Study enterprises share increase Cutting volume (million cubic meters) and cost of harvesting (million euros) Turnover of enterprises in this study, million euros Standing removals, mill.m3 Delivery removals, mill.m3 Roundwood removals, mill.m3 Harvesting cost at standing sales, mill.m3 Harvesting cost in delivery sales, mill.m3 Harvesting cost total,

9 Economic situation of the branch challenging: the median as well as 25% and 75% quarters downwards % Vuosi Q1 Median Q3 Q1 Median Q3 Note: The percentage too high, because a proper salary correction has not been made yet (the correction of Statistics Finland modest)

10 Debt burden slowly increasing: the median as well as 25% and 75% quarters upwards Vuosia Vuosi Q1 Median Q3 Payback period of debts in years

11 Data collection: Interviews Forest machine enterprises AKE-database Country divided into 6 areas Each area 3 enterprise classes: Target 60 enterprises Interviewed already 48 1 machine 2 machines 3 or more Forest Management Associations Target 20 FMA Interviewed already 16

12 What next? In autumn 2008: results on economic situation of forest machine branch based on Statistics Finland database will be published First results on entrepreneurs structure and situation based on interviews will be out in 2009 First results on Forest Management Associations relationships with harvesting business will be out in 2009 Wood procurement farmers in the profitability book-keeping of the Economic Research of MTT Agrifood Research Finland studied Business models (COST-project) and business processes (Joensuu already published simulation studies) of enterprises studied and the study continues Accounting and executive informations systems development project in co-operation in construction

13 Help & co-operation needed! Thank you! Markku Penttinen et.al.