Potential European Markets for West Virginia Hardwoods
Abstract
The West Virginia hardwood industry has great potential
for growth in the 1990's. The 1980's saw a renewed interest
in this industry and a resurgence in hardwood production.
Gross revenues from hardwood sales reached an all time peak
of $1 billion in 1987 and, although this number has dropped
slightly, there does not seem to be any indication of a
slowdown in the hardwood industry. The growing tree stock
West Virginia exceeds the removal rate by a higher
percentage than the national average and, therefore, is not
facing any serious ecological problems due to the removal of
trees. This has been a major factor in the growth of West
Virginia's hardwood industry.
The tremendous growth of the 1980's was also aided by
the development of the hardwood export industry. Primarily,
these exports focused on Japan which now has one of the
highest demands for imported hardwoods in the world.
However, now that West Virginia's entrance into the Japanese
market has been established, it is time to look to the next
market which has great growth potential in the 1990's - The
European Community.
This paper first gives a brief overview of the u.s
hardwood industry trends throughout the 1980's. I feel it
is very important to get a complete look at what factors
have affected the hardwood market in the past in order to
recognize indications of changes which might occur in the
future. The top twelve hardwood import markets and the
reasons for their strong demand are also highlighted.
Next, the paper focuses on The European Community, the
factors which will be affecting their hardwood import
markets, and the top eight countries with the greatest
growth potential. For the most part, these factors will be
related to economic fluctuations between the E.C. and the
U.S., ecological and preservationist movements, and the
political and economic changes which will need to be made in
order for E.C. 1992 to become a reality.
Section IV looks at the West Virginia hardwood industry
of the 1980's and the chances that West Virginia will have
in competing for the European Markets in the 1990's. It
also highlights some of the advantages and disadvantages
that we might have over our competitors.
I was not able to gather enough information for Section
V to go as in-depth as I would have liked to. Therefore, it
is rather general in giving suggestions on preparing for
European trade shows. However, I feel the trade shows that
I have recommended are some of the best in Europe and would
be well worth attending, not necessarily as an exhibitor but
at least to talk with some of the people in the industry and
get a real sense of the market.
The last section points out two important aspects on
gaining entrance into the hardwood market of the E.C. They
are the need to begin now (of which I cannot stress the
importance enough), and the need to be flexible and ready
for change. There is also a word of caution in that the
E.C. market, like any other. is not one without risks. The
reduction of trade barriers between the twelve countries
will greatly increase intra-European trade. There are not
sufficient timberlands throughout Europe to completely keep
the U.S. from entering the market, but it does lessen the
potential growth for American hardwood exporters if the
markets are not looked into right away.