Wood harvesting enterprise: profitability, liquidity and solvency
2010 (English)In: International Workshop on Figures for Forests: Proceedings / [ed] Christoph Hartebrodt und Kathryn Howard, Freiburg: Forstliche Versuchs- und Forschungsanstalt Baden-Württemberg , 2010, Vol. 84, 95-108 p.Conference paper (Refereed)
In order to respond to global competition challenges, the wood processing industry is outsourcing the planning of roundwood harvesting. This means that the industry seeks to negotiate with fewer, larger and more diverse harvesting enterprises, which may have smaller subcontractors. This kind of networking development has already occurred in other industries e.g. shipyards and the electronics industry. Poor profitability, the liquidity and solvency of the harvesting business and the consequent difficulty in hiring qualified operators make networking a complicated process. Moreover, the asymmetry of negotiation powers between industrial customers and harvesting entrepreneurs perpetuates the low profitability. A study of the harvesting business structure has been conducted to identify the problems and success factors in this industry. Financial data from the period 2001-2007 was studied applying ratio analysis, focusing on the profitability, liquidity and solvency of subgroups as well as the whole industry. Entrepreneurs need managerial skills and appropriate business tools to cope with the growing size of their enterprises. The traditional business model for a capacity supplier tends towards the co-operation business model, which results in enterprise networks with subcontractors. The results of this study show that economic resources for reorganising and developing the business are very limited. A quarter of enterprises make break-even results or losses. Larger enterprises have limited reserves.
Place, publisher, year, edition, pages
Freiburg: Forstliche Versuchs- und Forschungsanstalt Baden-Württemberg , 2010. Vol. 84, 95-108 p.
, Berichte Freiburger Forstlicher Forschung, ISSN 1436-1566 ; 84
ratio analysis, management accounting, wood procurement
Economics and Business
IdentifiersURN: urn:nbn:se:hig:diva-22333OAI: oai:DiVA.org:hig-22333DiVA: diva2:956757
IUFRO Working Unit 3.08.00 and Network of Accountan cy Network Operators, 24.-26.11.2008, Freiburg, Germany