Top tier companies routinely engage Forest2Market to provide market related consulting services when tackling difficult strategic decisions. Engagements include:
Long-term economic sustainability and timber price forecasts in support of:
- Site selection
- Due diligence in advance of timberland or facility acquisition or disposition
- Assessment of available raw material resources, supply sustainability and economical and practical product mixes
- Supply chain infrastructure including port and freight considerations
- Practical market-based risk analysis
Forest2Market offers two types of resource studies: proprietary studies that address individual client needs and questions, and sydicated studies undertaken by Forest2Market in order to identify, evaluate and quantify industry trends.
Each study uses a combination of the following Forest2Market resources:
- Forest2Market proprietary price and consumption data
- Proprietary econometric models and cost curves
- Consultations with a broad range of industry experts
- Independent research and analysis
Because each resource study project is customized to industry or client specifications, our methods change from study to study. In general, however, we follow a four-step process.
|Step One||Quantify and forecast supply by starting with USFS Forest Inventory Assessment data and applying well-tested growth and yield models to "grow" the timber supply forward according to project specifications.|
|Step Two||Quantify and forecast demand by first determining the number of current facilities using the specified class(es) of wood in the wood basket or supply shed in question.|
|Step Three||Adjust demand projections based on industry trends and an assessment of how those trends will affect demand. We take into consideration an increased demand based on facility expansions and announcements and a decrease in demand because of facility curtailments or closures.|
|Step Four||Conduct a sensitivity analysis, answering client specific questions with multiple scenarios and forecasting prices 15 to 20 years into the future.|
Site Evaluation and Ranking
When a public utility began planning the conversion of one of their coal-fired electricity plants to wood, Forest2Market provided long-term sustainability and price forecasts for several sites under consideration. As a result, our utility client was able to match boiler capacity to the wood availability forecasts for each area.
MGT Power Ltd. engaged Forest2Market to act as their supply chain consultant in the US South as they built relationships and negotiated supply agreements for 1.2 million tons of wood chips for export to their 295 MW biomass electricity plant Tees Renewable Energy.
When New York-based MSD Capital, Dell Computer Corp. founder Michael Dell’s investment vehicle, was contemplating a $1 billion timberland investment, the company tapped Forest2Market to supply it with market intelligence, including historical pricing data, timber price forecasts, mill demand and market risk assessments.
Forest2Market acted as a timberland and market based resource for Canfor, Canada’s largest forest products company, for mill purchases in the Southeast. Forest2Market provided market based pricing, long-term timber price forecasts and a timber resource assessment to support the acquisition of three sawmills in North and South Carolina from New South Lumber Company.