Forest, paper and fibre-based packaging companies face a changed world requiring fundamental transformation within the industry, according to a recent PricewaterhouseCoopers survey of CEOs throughout the world.
The 2010 edition of PwC's annual CEO Perspective report showed that while some North American and European CEOs believe the worst is over, they anticipate a long road ahead and a slow recovery.
All CEOs in the mature markets agree that it's unlikely that demand will return to pre-financial crisis levels due to the rise of digital media and other factors.
"The economic crisis exacerbated structural market declines in the paper sector and precipitated steep drops in demand in lumber and panel markets," said Bruce McIntyre, leader of PricewaterhouseCoopers' Canadian forest, paper and packaging practice. "In Canada, a fundamental condition for success is to position the industry to generate financial returns in line with the cost of capital, which it has not done for many years. And it's not about shrinking your way to success; the industry needs to innovate and grow."
Executives need to look beyond short-term survival to the long-term future of their companies and the new challenges ahead, says the report. For instance, every forest, paper and packaging company needs a strategy to capitalize on the sustainable nature of forests and the growing global demand for 'green' products.
In northern B.C., forest companies have been examining the potential of bioenergy, considered particularly important as traditional forest products producers face a deteriorating beetle-killed supply of pine timber.
One of the areas that has already seen expansion in north and central B.C. has been the wood pellet manufacturing sector.
Copyright © 2010 The Prince George Citizen.
