2018 International Forest Industries December 2017 January 2018 | Page 56

INDUSTRY VOICE
industry going forward . We also are seeing some signs of recovery in Latin America .
xI think that one of the biggest issues in the coming years will be the work force . Finding highly to moderately skilled workers will be more of a challenge in the future then it is today . Systems are more efficient and contain more complex technology that demand skilled employees to operate and maintain them . Other industries are facing the same challenges and are attracting the same workers so the wood industry needs to be more competitive .
Barko : Our key markets have remained constant for the past year . Tigercat : No , we have seen a similar trend and continued good performance from our markets as we have in the past . We do see a shift towards many of our customers moving into more mechanized logging on steep terrain resulting in an increased demand for purpose-built leveling track carriers .
John Deere : We have seen a few trends in our key markets this year . One of the strongest trends in all markets is the extension of the logging season and movement into new areas , such as steep slopes . Manufacturers are continuing to offer equipment designed for low ground pressure , such as the long bogie John Deere 1210G and 1510G Forwarders and 1270G eight-wheeled Harvester . Additionally , the German-based HAAS Maschinebau winch system , a traction assist solution developed exclusively for John Deere wheeled harvesters and forwarders , offers operators a way to work above or below the extraction road . These equipment solutions enable loggers to navigate terrain that has typically been off-limits for mechanized logging . On a global scale , the availability of skilled operators is a common concern , but we are seeing improvement with the introduction of new technology that enhances operator productivity while speeding up the training process . Technology , such as the John Deere Intelligent Boom Control technology available for the G-Series Forwarders and , now , the 1270G Harvesters , helps to accelerate the learning curve .

Q .

What are your key markets and what kind of volumes are you delivering ; is this changing ?

A .

Cat : Key global forestry markets have not changed significantly . Caterpillar supports the forestry industry with machines , parts and services in every country through its global dealer network . Some markets are showing signs of economic recovery while others are showing potential for growth in infrastructure development and mechanization .
Autolog : We are starting to see more traction on the ecological side of wood . Wood is being recognized as a renewable and sustainable resource that captures carbon . Wood ( CLT ) is currently being used in tall buildings . The world ’ s tallest wood building is 18 storeys ( located in BC Canada ) and many countries are adapting their building regulations to include tall wooden structures . I see wood as being the primary building material for the 21st century for housing and commercial buildings .
Barko : Our key market is primarily the United States where we have good dealer representation for the products we manufacture . We recently released the Barko 270B Processor in November to expand our product offering for our dealers and customers . Also , the Barko Industrial Wheeled Tractors remain popular for site preparation , land clearing , and right of way maintenance . We cannot publish our actual sales volumes but we can say we are positioned to end 2017 strong and expect to increase sales in 2018 .
Tigercat : The USA and Canada remain our most important markets as far as machine volumes are concerned . However , the opportunity for further growth remains in the markets outside of North America and it remains a strategy of Tigercat to increase our footprint in these growth areas .
John Deere : The key markets remain largely unchanged , with North America and Europe continuing to account for the majority of industry sales , and John Deere sales are in line with that mix . We are seeing continued growth in Russia and South America , and we are eager to continue to serve those growing markets .

Q .

Have any non-forestry international events or circumstances impacted your business ?

A .

Cat : Currency exchange rates certainly impact a country ’ s ability to export products . In some cases , unfavorable exchange rates have hindered the ability of U . S . companies to sell their wood products overseas .
Barko : The recent hurricanes in the southern United States are expected to drive an increase in lumber demand and other building products as rebuilding continues . We saw an increase in machine quoting activity and sales in the weeks leading up to hurricane season as customers prepared for storm cleanup that will last for months after the storms . The wildfires in the western United States also impacted the industry as hundreds of thousands of acres burned and many homes and businesses were lost . The current exchange rate between the US and Canada is still playing a role in our business and industry players in the US remain optimistic that the industry will continue to improve under the current US president .
Tigercat : As mentioned before the election year in the USA has played a significant role , Crimea and the situation between Ukraine and Russia continues to impact on our business potential and the continued level of large scale corruption investigations at the highest level of the Brazilian government affects our business due
54 International Forest Industries | DECEMBER 2017 / JANUARY 2018