2017 International Forest Industries Magazines June July 2017 | Page 8

ISSUE 57 JUNE / JULY 2017 SUBSCRIPTIONS Tel: [phone] e [email protected] Annual Subscription UK and Europe £160, €230 Rest of the world US$270 EDITORIAL T: [phone] F: [phone] www.internationalforestindustries.com 2 Claridge Court, Lower Kings Road Berkhamsted, Herts. HP4 2AF, UK Editorial Director John Chadwick [email protected] Editor Chris Cann [email protected] Editorial Board Dr Patrick Moore – Chairman and Chief Scientist of Greenspirit (Canada) Darren Oldham – Managing Director Söderhamn Eriksson (UK) Professor Piotr Paschalis-Jakubowicz – Warsaw Agricultural University (Poland) Mr Kim Carstensen Director General Forest Stewardship Council Eduardo Morales South American Forestry Consultant ADVERTISING AND PROMOTIONS Lansdowne Media Services Ltd Advertising Manager Phil Playle [email protected] Group Advertising Manager David Lansdowne [email protected] [phone] Associate Editor Robin Peach [email protected] Advertising Production Enquiries Emma Smith [email protected] International Forest Industries is published by International Forest Industries Ltd, 2 Claridge Court, Lower Kings Road Berkhamsted, Herts. HP4 2AF, UK International Forest Industries (ISSN 1755-6732) is published bi-monthly by International Forest Industries Ltd GBR and is distributed in the USA by Asendia USA, 17B South Middlesex Avenue, Monroe NJ 08831 and additional mailing offices. Periodicals postage paid at New Brunswick NJ. POSTMASTER: send address changes to International Forest Industries, 17B South Middlesex Avenue, Monroe NJ 08831 © International Forest Industries Ltd 2007 – 2014 IFI uses, as preference, SI units throughout. All dollars are US unless otherwise stated. 4 International Forest Industries | JUNE / JULY 2017 EDITOR’S COMMENT Risky business T he world today feels like a more risky – or at least more volatile – place than at any point in living memory for many in the forestry sector. At the macro level, business is faced with a Donald Trump-led US, international terrorism, Brexit and the potential disintegration of the European Union, and, most recently, the very real threat of nuclear war breaking out from the Korean Peninsula. These headlining concerns have created great uncertainty over the prospects for global economic progress, which of course drives demand for raw materials, including the most fundamental building material, wood. Against this backdrop, business leaders are grappling with volatility across a number of fiscal metrics that all need to be considered in business planning. For forestry professionals operating in international markets, this is largely about the fact much of the product being sold is done so in US dollars, but the cost of producing that material is paid in local currency. Granted, this can work for or against a business depending on which way foreign exchange rates move, but the point is, it makes forecasting and preparing a business for all eventualities extremely difficult. A Donald Trump tweet and a nuclear test out of North Korea around the same time as a large roundwood deal can potentially be the difference between a profitable and loss- making month, if not quarter. Most stakeholders International Forest Industries speaks to do not feel the risk environment will improve significantly even if the global economy shows signs of more stable growth. Put simply, businesses exposed to international economics and politics are likely to suffer from heightened volatility for as far out into the future as anyone dare predict. This poses a challenge for decision makers at the head of forestry businesses. The ability to identify, acknowledge and manage risks is today paramount for the successful running of any raw materials supplier or wood processing business of scale. It follows that technical competencies, though clearly fundamental in forestry, are being challenged in some respects by the need for better risk management skills, which have become an increasingly important attribute for executives and operational teams. Risk management is arguably, with the exception of substitution and disruptive technologies, the most important issue facing forestry at the moment and everything points to risk continuing to be a major challenge for the industry in years to come. This being the case, it is surprising that the major forestry shows currently taking place across the world fail to address the risk management aspect of our industry. Sure, these shows are primary technical gatherings used to sell equipment on the spot and fill order books to secure a pipeline of work, but most of them also carry an educational programme with sideline presentations and lectures. These presentations continue to focus on technical achievements and aspirations, which definitely shape individual businesses and will shape the future of forestry in general. But they could do more to highlight key issues that are already in play and effect the livelihoods of forestry practitioners today. We would not suggest a separate event or even series of talks devoted to the topic of risk management but a keynote address on one day of just one event might at least open the door to a discussion that will be a much larger part of our working lives in an increasingly risky business world. Enjoy Chris Cann