Respondents to withdraw from numerous trade agreements have played a role in affecting sales as potential customers proceeded cautiously for a few months post the election . The strong demand by Asia for round logs and wood chips has seen countries like Australia , New Zealand and South America increase their exports to mainly China and Japan .
INDUSTRY VOICE
Respondents to withdraw from numerous trade agreements have played a role in affecting sales as potential customers proceeded cautiously for a few months post the election . The strong demand by Asia for round logs and wood chips has seen countries like Australia , New Zealand and South America increase their exports to mainly China and Japan .
John Deere : From a macro-economic standpoint , we are starting to see some economic recovery in the United States and Canada , which is a positive sign . Housing starts are healthy , as are lumber prices . However , there are still several unknowns in the market , including the implementation of tariffs and unexpected events , such as the forest fires that hit northern Canada and the western United States , hurting production . We will have to see how these unknowns impact the logging industry . Looking at other markets , we have seen a lot of stability , especially in Russia and Europe . Additionally , China continues to play a large role in the forestry industry with their importing of pulp and lumber .
Q .
Do you feel the forestry sector has been robust in 2017 ?
A .
Cat : Robust may be too strong a word , but the forest products industry has experienced growth in some regions in
2017 . However , you have to remember that logging contractors still have their work cut out for them if they want to operate profitably . It is a very challenging business . They take risks , and they make substantial capital investments in equipment . In addition , the prices they get for their products , particularly in the Southeastern U . S ., have been near historical lows , which puts further pressure on margins . These businesses are critical to the supply chain of the forest products industry . It all starts with them . They rely on a company like Caterpillar to provide them with the tools they need to do their job and be profitable . And they rely on a dealer network like Caterpillar to provide the ongoing support and assistance they need to keep operating . Caterpillar has a wide portfolio of machines , engines , and services that serve the forestry industry , whether it be building and maintaining roads , logging , managing land , or performing tasks on a mill yard .
Barko : The forestry industry in 2017 seemed to improve some when compared to the past few years but it has not recovered as quickly as most had hoped that work within the industry . We look forward to improving in 2018 by setting a path for success within our company .
Tigercat : When looking at the state of the mining and construction industries and associated equipment suppliers the forestry sector has indeed been the shining light . Bar slight hiccups here and there the forestry sector has been exceptionally robust and in many cases the saving grace for many dealers who operate across the various industries mentioned .
John Deere : This year we have seen quite a bit of fluctuation in the forestry sector , as we saw a softening in the industry in the United States and Canada at the beginning of 2017 . However , toward the end of the year we have seen positive signs , such as increased mill activity , indicating that the industry is getting stronger . Russia , Europe and South America were relatively healthy throughout the year .
Q .
Have you seen any changes in your key markets or emerging markets over 2017 ?
A .
Cat : We see continued growth opportunities in the emerging markets of the Asia-Pacific region . We think the potential is there for a bright future for the forest products industry . Certainly plantation forest growth and mechanization will contribute to these changes . Caterpillar already has a strong footprint in the region , and we are well positioned to serve the
Steve Talaga , product manager for Barko Hydraulics
Mario Godbout , Chief Technology and Quality Officer , Autolog
Gary Olsen International Sales Manager at Tigercat Inc .
Tom Budan , VP , John Deere , Worldwide Forestry
Anthony ( Tony ) Fassino , Director , Caterpillar World Wide Forest Products
International Forest Industries | DECEMBER 2017 / JANUARY 2018 53