Atte Koskivaara, Katja Lähtinen, Anne Toppinen. (2025). Longitudinal analysis of financial performance of sawmills and wood construction element producers in Finland. Silva Fennica vol. 59 no. 2 article id 24033. https://doi.org/10.14214/sf.24033

Keywords: wood construction; competitiveness; profitability; business; financial analysis; innovation; value-added

Highlights: Wood element producers show more variation in profitability measures during 2012–2021 than sawmills; Element producers’ financial stability shows a decreasing trend in comparison to slight growth in the case of sawmills; Value-added has a positive effect on both sectors competitiveness whereas cost items have negative effects; Investments have a positive effect on element producers’ solvency and negative on sawmills.

Abstract | Full text in HTML | Full text in PDF | Author Info

The global outlook for wood construction is positive, driven by bio- and circular economy programs promoting wood use in construction. The industrialization of building processes is also seen as essential for improving construction efficiency and competitiveness. However, despite this positive outlook, wood construction in Finland remains a niche that has yet to reach its full potential. To reduce the dependency between the concrete and construction sectors, the wood element value chain needs competitive businesses to foster innovations and capture a larger market share in this highly competitive industry. However, the performance of two important stages of the value chain, sawmilling and wood element manufacturing, has not been measured in the scientific literature. The competitiveness of Finnish sawmills and wood element producers were analyzed by studying the industry’s financial performance using firm-level panel data and a regression approach over the 2012–2021 period. The results suggest higher variation across element producers’ profitability, while sawmills are more homogenous. Both value chain stages show signs of typical manufacturing industries, as materials and salaries proved to have a relatively high negative impact on competitiveness. However, differences were also found especially regarding short-term solvency and liquidity trends and average levels of costs and value-added. To understand competitiveness in the wood construction sector, an insight into intra- and inter-industry dynamics and value chain positioning is therefore required. Financially viable sawmilling and wood element firms are essential not only for business survival but for transforming the construction industry’s logic.

Koskivaara, Natural Resources Institute Finland (Luke), Bioeconomy and environment, Latokartanonkaari 9, 00790 Helsinki, Finland https://orcid.org/0000-0001-7454-0470 E-mail: atte.koskivaara@luke.fi
Lähtinen, Natural Resources Institute Finland (Luke), Bioeconomy and environment, Latokartanonkaari 9, 00790 Helsinki, Finland https://orcid.org/0000-0001-6260-5062 E-mail: katja.lahtinen@luke.fi
Toppinen, University of Helsinki, Faculty of Agriculture and Forestry, Latokartanonkaari 7, 00014 Helsingin yliopisto, Finland https://orcid.org/0000-0003-0910-1505 E-mail: anne.toppinen@helsinki.fi

article id 23035, category Research article

Venla Wallius, Janni Kunttu, Elias Hurmekoski, Teppo Hujala, Anders Q. Nyrud, Hans F. Hoen. (2024). Attractiveness of wood-frame multi-storey buildings in seven European countries: consumer segmentation and the effect of fire safety information. Silva Fennica vol. 58 no. 5 article id 23035. https://doi.org/10.14214/sf.23035

Keywords: wood construction; consumer perceptions; consumer segmentation; fire safety

Highlights: There are significant differences in the perceived attractiveness of wooden multi-storey construction between consumer segments; According to the survey results, young consumers living in urban areas have the most interest in wooden multi-storey construction; Targeted marketing efforts are needed to inform potential consumers of wooden multi-storey construction.

Abstract | Full text in HTML | Full text in PDF | Author Info

Wooden construction has the potential to contribute to climate change mitigation, and it is being promoted by the EU and national governments. However, several market barriers to wood-frame multi-storey building (WMSB), have been recognized, including obstacles in national building codes, lack of expertise in wood construction, and material durability concerns among end-users as well as other technical aspects. Given that increased wood construction is a target, understanding consumer perceptions of WMSB is crucial. In this study, consumer attitudes on WMSB were studied through consumer segmentation relying on demographic attributes. Further, the effect of providing fire safety information was explored. To this end, an online survey was deployed in seven European countries, with 7007 responses. The results show that in general, the awareness and attractiveness of WMSB is low amongst European consumers. Out of all respondents, 46% had not heard of WMSB before and only 12% stated that they are interested in the subject and know something about it, showing a clear lack of information and awareness within the general public. Significant differences in the perceived attractiveness of wooden multi-storey construction between consumer segments exist, with younger consumers and urban consumers being more attracted to living in WMSB than older or rural consumers. Fire safety was an important attribute affecting overall attractiveness, yet updated information regarding fire safety and control in WMSBs had a small but statistically significant negative effect on the perceived attractiveness. The results indicate that targeted marketing efforts are needed to inform potential consumers of WMSB and aspects related to fire safety effectively.

Wallius, European Forest Institute, Yliopistokatu 6 B, FI-80100, Joensuu, Finland; Jyväskylä University School of Business and Economics, P.O. Box 35, FI-40014 University of Jyväskylä, Finland https://orcid.org/0000-0003-2576-9994 E-mail: venla.j.wallius@jyu.fi
Kunttu, University of Helsinki, Department of Forest Sciences, P.O. Box 4, FI-00014 University of Helsinki, Finland https://orcid.org/0000-0002-7298-3363 E-mail: janni.kunttu@helsinki.fi
Hurmekoski, University of Helsinki, Department of Forest Sciences, P.O. Box 4, FI-00014 University of Helsinki, Finland https://orcid.org/0000-0001-8717-7287 E-mail: elias.hurmekoski@helsinki.fi
Hujala, University of Eastern Finland, School of Forest Sciences, P.O. Box 111, FI-80101 Joensuu, Finland https://orcid.org/0000-0002-7905-7602 E-mail: teppo.hujala@uef.fi
Nyrud, Norwegian University of Life Sciences, Faculty of Environmental Sciences and Natural Resource Management, P.O. Box 5003, NO-1432 Ås, Norway E-mail: anders.qvale.nyrud@nmbu.no
Hoen, Norwegian University of Life Sciences, Faculty of Environmental Sciences and Natural Resource Management, P.O. Box 5003, NO-1432 Ås, Norway E-mail: hans.hoen@nmbu.no

article id 267, category Research article

Manfred Gronalt, Peter Rauch. (2008). Vendor managed inventory in wood processing industries – a case study. Silva Fennica vol. 42 no. 1 article id 267. https://doi.org/10.14214/sf.267

Keywords: building materials; service level; solid structure timber; SST; wood construction

Abstract | View details | Full text in PDF | Author Info

Solid structure timber (SST) is an important building material in the wood construction business, in which its production volume is largely related to that respective business. Due to the large variability in the demand and seasonal factors, SST producers’ inventories are likely to be simultaneously overstocked for one type of timber and out of stock of another. An inventory policy that ensures a high service level and relatively low stocks is required. In the present paper, we propose the vendor managed inventory (VMI) approach for controlling the stock of deals that are produced at a sawmill and delivered as raw material for SST-production. We evaluate two VMI implementations against the actual inventory management for three different market scenarios. Furthermore, we layout the necessities for reconfiguring the business processes, and subsequently set up an organisational framework within VMI, which is indeed applicable in this segment of the woodworking industry. In our application background, VMI as an inventory control system is able to reduce the overall raw material stock by more than 37% by simultaneously increasing the SST service level.

Gronalt, BOKU – University of Natural Resources and Applied Life Sciences, Feistmantelstr. 4, 1180 Vienna, Austria E-mail: mg@nn.at
Rauch, BOKU – University of Natural Resources and Applied Life Sciences, Feistmantelstr. 4, 1180 Vienna, Austria E-mail: peter.rauch@boku.ac.at

Click this link to register to Silva Fennica.

If you are a registered user, log in to save your selected articles for later access.

Contents alert

Your selected articles

Follow @SilvaFennica