The International Tropical Timber Organization released its latest technical report on increasing the resilience of tropical timber markets to economic and financial crisis.
The report is intended to help tropical timber markets avoid the negative impacts from decreased investment, lower demand, increased unemployment and a slowdown in research associated with the last global financial crises.
6 March 2013: The International Tropical Timber Organization (ITTO) released its latest technical report, titled “Riding Out the Storm,” on increasing the resilience of tropical timber markets to economic and financial crisis. The report is intended to help tropical timber markets avoid negative impacts from decreased investment, lower demand, increased unemployment and a slowdown in research associated with global financial crises.
The report proposes a number of actions that would make those involved with tropical timber markets to better to anticipate, manage and recover from economic and financial crisis. The actions are drawn from case studies in Brazil, China, the European Union, Ghana and Malaysia and suggest increased government support, market changes and production changes.
With regard to government support, the report highlights economic stimulus packages for both the general economy and the timber sector during crisis, as well as the establishment of credit and investment funds. The report also presents examples of long-term industry strategies and plans that include resilience building elements.
With regard to market changes, the report discusses shifts in focus from export to domestic or regional markets, investments in value-added production and additional support for timber certification. Finally, for production changes, the report notes the role of rapid restructuring of the wood manufacturing industry, including adopting a just-in-time approach, and shifts to the production of higher value species.
Overall, the publication promotes investments in market intelligence capabilities, the development of new products and markets, strengthening industry and trade associations, and capacity building for small and medium timber and wood industries. The report also highlights the importance of continuous gains in productivity coupled with cost reductions, the need for a focus on value-added products and the development of external demand crisis management strategies. [Publication: Riding Out the Storm: Improving Resilience of the Tropical Timber Sector to the Impacts of Global and Regional Economic and Financial Crises]