TIMBER PRODUCTS

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BUSINESS DEVELOPMENT

• TIMBER PRODUCTS

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BUSINESS DEVELOPMENT

• OVERVIEW
• Australian production of sawnwood
• Australian market for sawnwood
• Strategic overview of the Timber Industry
• Business Services activities in the Timber
  Industry
• Tentative observations about Business Services in
  the Timber Industry

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BUSINESS DEVELOPMENT

• CONSUMPTION OF SAWNWOOD IN AUSTRALIA
• Plantation Logs 2150 51
• Native Forest Logs 1050 25
• Sub Total 3050
• Imports 900 21
• Exports 100 3
• Total 4200 100
• All figures 000s m3

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BUSINESS DEVELOPMENT

• SAWN TIMBER MARKET IN AUSTRALIA
• Detached Housing 40
• Multi-Unit Dwellings 8
• Additions Alterations 24
• Non-residential Buildings 10
• Furniture 8
• Other 10
• Total 100

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BUSINESS DEVELOPMENT

• OTHER MARKET
• Doors
• Pallets
• Bridges
• Wharves Jetties
• Poles, Piles, Sleepers
• Ladders, Steps, Trestles, Signs

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BUSINESS DEVELOPMENT

• FIVE COMPETITIVE FORCES
• SUPPLIERS
• Hardwood to Softwood
• More added value hardwood products
• Softwood producers increasing in size
• BUYERS
• Access to retail outlets
• Fewer buyers
• Moves to reduce the number of suppliers

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BUSINESS DEVELOPMENT

• FIVE COMPETITIVE FORCES contd
• SUBSTITUTES
• Structural steel steel house framing
• Concrete
• Imports
• NEW ENTRANTS
• Increasing imports of finished timber products
• Growth in hobby/part time businesses

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BUSINESS DEVELOPMENT

• FIVE COMPETITIVE FORCES contd
• INDUSTRY COMPETITORS
• Growing larger
• Reducing operating costs
• Increased concentration
• Integrated processing sites

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BUSINESS DEVELOPMENT

• STRATEGIC OVERVIEW
• Fewer, larger, lower cost producers
• Market for timber products will have fewer buyers
• Increasing imports of finished timber products
• Continued competition at the small end of the
  market
• CONCLUSION
• COMPETITIVE PRESSURES WILL INCREASE

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BUSINESS DEVELOPMENT

• BUSINESS SERVICES
• Products
• Pallets/pallet repairs Firewood/kindling
• Crates Chopping boards
• Survey pegs Dog kennels
• Lattice Saw horses
• Stakes Trestles
• Window boxes Wine boxes
• Rug boxes Furniture

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BUSINESS DEVELOPMENT

• BUSINESS SERVICES
• Services
• Cuttolength
• Timber grading
• Defecting knots
• Tree pruning
• Recovery sorting
• Painting

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BUSINESS DEVELOPMENT

• Manager of a Business Service Timber Operation
• Read industry journals/magazines
• Visit suppliers/customers regularly
• Talk to industry sales representatives
• Join industry associations
• Visit competitors
• Travel interstate
• Study tour of NZ
• Visit machinery exhibitions

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BUSINESS DEVELOPMENT

• TENTATIVE OBSERVATIONS ON BUSINESS
  SERVICES-SUCCESS FACTORS
• Serious commitment to the industry
• Knowledgeable management
• Identified and are developing a strategic
  advantage
• Continuing to invest
• Close to a major supply source imports or
  domestic
• Customer focus

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BUSINESS DEVELOPMENT

• OPPORTUNITY AREAS
• Raise the barriers to entry
• Identify opportunities to lower costs
• Look for niche areas with reasonable volumes
• Develop business to business relationships

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BUSINESS DEVELOPMENT

• POSSIBILITIES
• Maybe
• Added value associated with a large volume
  producer eg laminating
• Identify and supply products to a retail chain
  not subject to import competition eg gates
• Identify a sector, say the wine industry and
  manufacture a product(s) using specialized
  equipment eg printed wooden packaging

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BUSINESS DEVELOPMENT

• SUMMARY
• Australian market for timber products
• The five competitive forces impacting on the
  industry
• Competitive Pressures will increase
• Activities of business Services in timber
  products services
• Identified some of the success factors
• A few possibilities in timber products/services

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Questions
Jim Willett Waywick Management Services 0419 874
005 karari_at_bigpond.com