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Do We Need Regional Forest Hubs?

Timber suppliers throughout QLD and NSW buy domestic timber from many different sources in Australia. Recently, however, we were intrigued by a proposal put forth by the Forest Industry Advisory Council (FIAC). The proposal was part of a lengthy document they released in March of this year about the state of the Australian forest industry.

The Recommendations

The FIAC recommends the formation of regional forestry hubs that would help consolidate their regions’ efforts and help to more efficiently utilise any region’s resources. The FIAC believes this would help improve productivity and the ability to compete within Australia and globally, which would improve profitability for all concerned.

The hubs would be created by the Department of Forestry and would help their regions maximise their production and development according to the resources and value chains of their particular regions. This could help promote employment and sector growth regionally while improving the forest sector as a whole.

They could also help to promote cooperation and collaboration, both within regions and from region to region. This could have a positive effect on development, research, productivity, resource use and even business development.

Improving Productivity and Profitability

The forestry hubs would connect processing facilities to timber resources within broad regions. The FIAC also envisions an enhanced spirit of cooperation among businesses connecting through their use of resources, value chains, complimentary products, technology and labour needs.

This would be more efficient for all parties and help to improve both productivity and profitability, helping the sector compete on a national and global stage. For example, such an alliance could help increase the security and quality of the timber supply while promoting better economies of scale, innovation and better utilisation of timber resources.

If the services and production of a region were located within a hub, it could greatly improve access for all businesses to transportation networks, raw materials and skilled labour. The net effect would be to lower costs, thus lowering prices for the end user.

Ask the Experts

If you have any questions or would like to enquire about ordering timber, call Narangba Timbers today on 1300 477 024.