Timber industry changing, opportunities abound, says RFP CEO

The forestry industry, and the world, are changing dramatically, says Allyn Ford, president and chief executive officer of Roseburg Forest Products.

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KATHY KORENGEL/News-Review

Timber industry changing, opportunities abound, Ford says

The forestry industry, and the world, are changing dramatically, says Allyn Ford, president and chief executive officer of Roseburg Forest Products.

And the best thing to do is to adapt.

Youve got to be changing, Ford told a crowd of about 200 people at the Convention Center at Seven Feathers Hotel & Casino Resort Wednesday evening. You cant sit still.

Ford gave a keynote speech at the annual conference of the Oregon Society of American Foresters. The conference continues through Friday with a range of speakers and tours, mainly geared to professional foresters.

In his presentation, Ford said the forestry industry is in the throes of probably the worst recession since the 1930s. The economic woes have hit all sectors of the industry, from forestry to manufacturing to distribution.

Housing starts have plummeted from 2 million to 500,000. About 500 retail lumber yards have closed their doors in the last six months.

However, its an exciting time, Ford added. Throughout his speech, he focused on the opportunities the current challenges present.

The timber industry is seeing dramatic changes too. Customers are more demanding, forcing the industry to customize orders to their specifications, and to fill the orders more quickly.

There is an increasing demand for green wood products. The rising cost of materials used in wood manufacturing is forcing the industry to shift from boards that were 48 pound density to 40.

The structure of the industry is changing, Ford said. Timber investment management organizations are buying up forest land. In turn, some companies are specializing in one sector of the industry. Others are consolidating.

And American companies are increasingly competing in a global market place.

The industry is being shaped by other outside forces, Ford said. In the wake of broader economic problems, banks are racheting up requirements for home loan lending.

Government is more involved in the financial world, which Ford believes will lead to a more volatile marketplace. He also sees government imposing more regulations on the timber industry.

Despite the challenges, however, the seeds of our recovery are already in place, Ford said. He said the sales of foreclosed homes are attracting more than one bidder. The inventory of unsold homes is dropping.

Low interest rates and falling home prices mean (housing) affordability today is the best its been in almost 15 years.

To keep up with all the changes, those in the forestry world have to be the best of the best, Ford concluded. He believes they are up to the challenge.

This is a time of great opportunity, he said. The forest is good. The wood is good. We have a tremendous future. Were not a dying industry. Were a growing industry.

But he does think foresters could be more involved in the changes taking place.

Foresters need to take more of a leadership role, Ford said. Its your profession. Youve got to be able to express yourself.

I make a challenge to you sitting in this room tonight, he said. Youve got to step forward.

You can reach reporter Kathy Korengel at 957-4218 or by e-mail at kkorengel@nrtoday.com.

Additional Information

Web Site: http://www.nrtoday.com

Category: Forestry>Industry Trends

Region: Oregon

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