2018 International Forest Industries December 2017 January 2018 | Page 54

Cautious Optimism
The industry’s finest have once
again fed back to International
Forest industries on how the
sector looks to them, what their
clients are asking for, and where
they see the opportunities for
the immediate future. And it has
been a mixed response, as key
figures from leading companies
offered varied accounts of
market strength, while most
agreed it was volatile. However,
the majority of respondents said
they continued to experience
growth when able to deliver on
demands for innovation
Q.
How has the
macro-economic
situation affected
your sales?
A.
Cat:
Caterpillar Inc. is benefiting
from the strengthening of the
global economy.
The success of Caterpillar
Forest Products is tied to the
success of our customers, and their success in
turn is tied to the economic health of the overall
forest products industry. The improvement in
the global economy has favorably impacted the
forest products industry in some regions while
other regions are still recovering.
Advertisers 2017 include ...
52 International Forest Industries | DECEMBER 2017 / JANUARY 2018
Barko:
We have seen a decrease in some new machine
sales mainly due to decreased market demand
and a surplus of inventory in the used-
equipment market. With the Tier 4 Final engine
requirement in all new equipment sold in the
US and Canada starting in 2018, some buyers
have been hesitant to upgrade and will try to
get more out of their older equipment before
upgrading. We have also dealt with mild winters
in the Great Lakes region the past few years that
result in shorter harvesting periods for certain
areas of the region. Pulpwood prices continue
to remain relatively unchanged, which means
producers need higher production to increase
profits. Lumber prices seemed to improve and it
appears that most of the mills are keeping their
yards stocked.
Tigercat:
The uncertainty created around the 2016
American election, new government and threats