An Overview of Finland's Hardwood Log Imports
ResourceWise: Apr 22, '24
A Recap of This Year's Economic Situation
Stubborn inflation, high interest rates, and heightened uncertainties are just a few of the words some may use to describe the 2023 global economy. Lingering effects from the Covid-19 pandemic, continuing geopolitical tensions, and the climate crisis are some of the factors impacting macroeconomic conditions.
While the global economy proved to be more resilient this year than expected, the growth was still quite weak. According to OECD, "With monetary policy becoming increasingly visible a weaker-than-expected recovery in China, global growth in 2024 is projected to be lower than in 2023." The projected global GDP growth for 2024 is around 2.7%.
According to the UN, there are five things you need to know about the economy:
- The slowdown in global growth in 2023 was less severe than previously expected.
- The world economy continues to face the risk of a prolonged period of subpar growth.
- Inflation remains stubbornly high in many countries.
- Labor markets in many developed economies have continued to show resilience, with low unemployment rates and recurrent worker shortages.
- Global monetary tightening has exacerbated fiscal and debt vulnerabilities in developing countries.
The state of the economy directly impacts buyer confidence, which in turn significantly affects demand levels in the pulp and paper industry. As we navigate the uncertainties of the 2023 economy and look toward the outlook for 2024, it becomes increasingly crucial for participants in the pulp and paper industry to stay ahead of the game. In the face of economic unpredictability, it is imperative for businesses in this industry to adapt and discover innovative strategies to ensure their success.
The Role of Business Intelligence in the Pulp and Paper Industry
Market intelligence plays a crucial role in the pulp and paper industry, providing companies with the tools and insights they need to thrive in a competitive market. In an industry where margins are often slim and efficiency is key, having access to accurate and timely data can make all the difference.
Having a reliable source of historical data, accurate forecasts of raw material prices based on transactions, and industry expertise is crucial for navigating uncertain times and making informed decisions. By analyzing these valuable insights, businesses can emerge successful even in unpredictable situations and maintain a competitive edge.
By centralizing this data and transforming it into actionable insights, businesses can identify trends, spot opportunities, and optimize their operations. This helps empower decision-makers to make data-driven decisions, rather than relying on intuition or guesswork.
Discovering the key elements that lay the foundation for your company's success is a constant reminder that knowledge is indeed power. It is essential to continuously stay informed about the myriad of factors that impact your business, as this is crucial for sustaining success within your industry.
Even the smallest adjustments along the supply chain can have far-reaching consequences. That's why it is imperative to have access to reliable insights at the local, national, and global levels. These valuable insights will empower you to confidently plan ahead and achieve optimal success, even in the face of potentially volatile market conditions.
Implementing Business Intelligence Platforms in the Pulp and Paper Industry
There are a number of ways in which pulp and paper participants in every corner of the industry can use market intelligence to untap opportunities and stay ahead in the market.
Pulp and paper suppliers, especially those with a broader interest in the entire forest vertical, can:
- Forecast containerboard demand.
- Analyze operating rates and margins segmented by major grade and region and how these are projected to change in the future.
- Determine whether there is more value in the conversion of pulp to board or in board to boxes by calculating the margin at each stage in the box value chain, and ultimately identify the largest areas of opportunity.
- Analyze bioproduct production by country to estimate market potential for equipment.
A few ways pulp and paper producers can utilize market intelligence include:
- Track bioproducts price and trade along with bioproducts demand by country.
- Determine market pulp price trends.
- Uncover virgin fiber and recovered fiber price trends, which can be used as a contract index when purchasing market pulp.
- Examine high-level market economics by product or region for pricing, cost trends, margin, trade, supply, demand, and operating rates.
- Access a high-level view of the entire value chain.
And lastly, pulp and paper end users and brands can:
- Analyze pricing trends for an entire supply chain such as virgin fiber, recycled fiber, paperboard, corrugated sheets, or converted boxes. This can be used as a contract index and to forecast changes based on key drivers.
- Determine whether there is more value in the conversion of pulp to board or in board to boxes by calculating the margin at each stage in the box value chain, and ultimately identify the largest areas of opportunity.
Identifying the Right Platform for Your Business
With a multitude of market intelligence platforms available, it can often be overwhelming to determine the best fit for your business. The range of options can make it challenging to find a single platform that offers all the features you need.
Forestat Global, powered by ResourceWise, presents their cutting-edge market intelligence platform that empowers you to achieve all the mentioned objectives effortlessly.
By providing comprehensive market data and analytics specifically tailored for the forest products industry, Forestat Global offers a distinct and enhanced perspective of the market landscape. No data contribution is required on your part, allowing you to effortlessly gain a deeper understanding of the market trends and dynamics.
For further insights into how Forestat Global's comprehensive view of the forest products market can empower your success in the face of economic uncertainty, we invite you to visit our page. Discover how our platform can provide you with the vital information and tools you need to navigate challenging times and thrive in the industry.
