OPINION
Value strategy pays off
By Schalk Grobbelaar
Sawmillers with a value strategy have proven to be more resilient against market fluctuations , writes Schalk Grobbelaar .
Schalk Grobbelaar , senior lecturer at the University of Pretoria ’ s department of Engineering & Technology Management , graduate school of Technology Management .
UP
South African sawmills primarily produce structural lumber for roof trusses . Very little of the local production is exported , and imports are also limited . For this reason , the local market supply and demand is in equilibrium and directly related to the local building industry .
Thus , a decrease in building activity causes a demand reduction . Therefore , sawmillers with a value strategy has proven to be more resilient against market fluctuations .
A recent study evaluated the relative competitiveness of South African sawmills ( Grobbelaar & Visser , 2021 ). The study assessed the impact market fluctuations have on the sawmilling industry and what differentiates competitive sawmills from their competition . The Crickmay Intermill Comparison ( Allpass , 2018 ) was used to evaluate sawmilling competitiveness .
The Crickmay Intermill Comparison is a benchmarking report that is published every quarter . Approximately thirty sawmills take part
26 AUGUST / SEPTEMBER 2021 // www . timberiq . co . za