Tuesday, September 07, 2010

Competitiveness and financial performance

The Finnish forest industry has extremely modern factories, highly skilled employees and a diverse competence base. Finland can also provide ample supplies of raw materials, which meet all sustainability criteria – in fact, the only thing we lack is cost-competitiveness.

Cost-competitiveness cannot be improved unless all expense items are cut. Finland must reduce costs nearer to the level in competing countries in order to safeguard the success of the forest industry. In any case, production operations will be concentrated at the best and most efficient factories.

The forest-based sector, which uses the most domestic production inputs of any industrial segment, operates in a network economy; this means that the other collective bargaining agreements that are concluded in Finland also affect the sector’s cost base through service and production input procurements. The competitiveness of the Finnish forest-based sector is decided precisely by the entire network’s level of costs.