Forest2Market Introduces Strategic 5-Year Stumpage Price Forecasts for Forest Products Companies in the US South

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Forest2Market announces the release of three 5-year stumpage price forecasts, one for pine sawtimber and chip-n-saw, one for pine pulpwood and one for hardwood pulpwood. These additions to Forest2Market’s product line have been designed to guide strategic planning and budgeting for forest products industry participants.

Forest2Mill, a product of Forest2Market
Budgeting in unprecedented economic times like these requires better data and a more advanced view of timber markets. By providing a more nuanced view, our 5-year forecasts give firms the information they need to make strategic decisions with confidence.

Forest2Market has added three 5-year strategic stumpage price forecasts to its Forest2Mill product line, a suite of services designed for buyers and sellers of logs and other wood raw materials. These price forecasts expand upon the 24-month operational forecasts for local stumpage prices that Forest2Market has offered in the US South since 2005.

Pete Stewart, Forest2Market’s founder, President and CEO, noted that the development of these products followed a familiar pattern: “We developed these forecasts for the same reason we develop all of our products, at the request of our customers. These customers have used our 24-month forecasts to support their short-term operational raw material inventory management for more than 8 years. Because they also have to make strategic decisions, they asked us if we could provide longer term outlooks. Using the same quality data and rigorous discipline that powers our 24-month forecasts for local stumpage prices, we developed a solution that works for them: a series of 5-year forecasts to guide strategic decision making.”

Forest2Market offers three southwide 5-year forecasts, one for pine sawtimber and chip-n-saw, a second for pine pulpwood and a third for hardwood pulpwood. Each begins with an analysis of timber supply and a review of historical demand and prices, and each includes an analysis and forecast of the economic factors that influence price, a demand outlook, a 5-year quarterly stumpage price forecast and an examination of price seasonality and volatility.

Suzanne Hearn, Vice President of Marketing and Sales, explained the value of the forecasts for budget preparation. “Budgeting is rarely easy. While extending the historical trend line forward may be adequate in less dynamic economic times, that approach is likely to cause firms financial harm today. Because of recent unpleasantness in the economy and halting progress in the housing market recovery, the current standing timber inventory is heavily skewed from the normal trend line. As a result, timber prices are more likely to be skewed away from trend. In times like these, budgeting requires better data and a more nuanced view of timber markets. Forest2Market’s 5-year stumpage price forecasts provide this more nuanced view.”

Forest2Market’s Stumpage Price Database
Forest2Market collects timber pricing data in the US South from actual supply agreements. Forest2Market has provided stumpage pricing reports and database access since 2001, and has developed stumpage price forecasts from this data and its proprietary forecast models since 2005.

About Forest2Market
Forest2Market provides market price and trend data as well as wood and fiber supply chain expertise to customers in the forest, wood and paper products, recovered fiber and bioenergy industries. Headquartered in Charlotte, North Carolina, the company also has offices in Eugene, Oregon and Appleton, Wisconsin. For more information, visit http://www.forest2market.com.

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LeAndra Spicer
Forest2Market
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