Last year, Forisk published a blog about the questions Forisk’s Custom Market Forecast (CMF) can answer for firms making investment and operating decisions in the timber and forest industries. After a year of delivering CMFs to clients, we developed case studies highlighting how clients have used CMFs to support their businesses. This is the first post of a series with these cases. To learn more about the Custom Market Forecast, please contact Nick DiLuzio at ndiluzio@forisk.com.

Case Study: Evaluating Long-term Low-Grade Softwood Supply and Pricing

 

THE CHALLENGE
A bioenergy company was evaluating a proposed project and needed to understand the availability, sustainability, and pricing outlook for low-grade softwood raw material in the surrounding market. In addition to current conditions, the client was particularly interested in receiving updates on an ongoing basis due to the rapidly changing wood market in their region.

THE CMF APPROACH
Forisk produced and delivered a Custom Market Forecast focused on low-grade softwood supplies in the project’s procurement area. The CMF integrated growth, removals, and standing inventory data with a 10-year outlook, competitive project analysis, and raw material price forecasts. The analysis is updated on an ongoing basis, providing continuing insight as market conditions evolve.

WHAT STOOD OUT
The client found particular value in Forisk’s detailed data on forest growth, removals, and standing inventory, as well as the visibility into existing and potential future wood-using projects competing for the same feedstock. This level of competitive intelligence was seen as both critical and unique.

KEY VALUE

• Clear insight into the sustainability of low-grade softwood supplies;
• Detailed identification of current and future competing projects;
• Raw material price outlook tied directly to local supply and demand dynamics;
• Ongoing updates supported by direct access to Forisk experts; and
• Forisk’s willingness to discuss each CMF to ensure the client understood the analysis and forecasts.

THE RESULT
The CMF provided the client with confidence in both the near- and medium-term availability of feedstock, supported informed decision-making around the proposed project, and strengthened internal discussions around market risk and pricing.

CLIENT PERSPECTIVE
“Forisk provided high-quality, detailed information on our local market area and invests time to discuss it with customers. It’s much more than just a written report! They are a very helpful and personable organization.”