Product Line, Manufacturing Requirements in the Lumber Export Market

Strategies of companies serving the overseas lumber export market have been determined by the geographic location, timber supply, marketing and distribution capabilities, and plant facilities and manufacturing know-how. Marketing and distribution capabilities can be acquired without too much difficulty if a company finds itself lacking in this essential area. There are many competent and experienced outside marketing organizations, both domestic and foreign, which can provide the company entering the export market with the marketing services which it needs. Plant facilities and manufacturing know-how seem to cause the most trouble to firms which have recently entered the export market. Mills producing a product line for overseas export have to learn that to manufacture lumber specifically for each customer is far more important than when cutting for U. S. markets. Exporters must become familiar with grades requested by customers. For some standardized items, exporters and importers may agree on the use of the “R List” rules developed by the Pacific Lumber Inspection Bureau. Appearance is of more importance to the overseas customer than to the domestic customer. The capital costs involved in changing a mill to saw metric sizes vary depend. There are three options: rebuild the mill as is on the existing site; add an additional line or auxiliary side to produce export lumber; or rebuild the present mill into a new configuration capable of cutting export. The mill manager must be involved in the decision at an early stage, and the strategic role of export in the company’s total business operations must be defined, and the support of the mill manager and his production staff secured.

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