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