1. Our Future Customers – what will they expect of wood products
A Manufacturers perspective
Kevin Golding

2. We all know the answers…
“Listen at every industry conference, read every industry body’s strategic plan, analyse every company’s annual report. It’s all in there –
Innovate
Add value
Enter new markets
Grow sustainably
Create wealth and employment”
Source: Coriolis Research 2005

3. If we know the answers, why do these describe the wood industry?
Declining resource quality
Scale based productivity
Price based marketing

4. Breakthroughs are rare in the building industry
Romans gave us concrete
Victorian’s gave us structural steel
US gave us the elevator – high rise
What breakthrough will the wood products industry give us?

5. Five areas of change Government as a customer Urban intensification
Off-site construction
Low carbon
Digital based productivity

6. Government as a customer
Signals of change:
Market failure
Poor industry productivity

7. Government as a customer
What are the implications?
Unlock land in priority locations
Provide major investment / development
Support affordable housing
Address barriers of growth
Develop an alternative supply chain
Off-shore
Prefabrication

8. Urban Intensification
Signals of change
Land shortage and price
Affordability
Rent vs Own
Ageing population
Planning regulation

9. Urban Intensification
What are the implications?
Smaller land footprints
2 – 5 storey homes
Terraced homes
Concrete rather than timber

10. Off-site Construction
Signals of change
Skills shortage
Low productivity
Low certainty of delivery
Costs
Quality

11. Off-site Construction
What are the implications?
7% lower cost
6 months quicker
Improved cost / time predictability
Improved quality, health and safety

12. Low Carbon Signals of change Carbon Act (late 2019)
Climate change impacts / resilience
Public awareness
Government procurement
Executive pay linked to carbon reduction

13. Low Carbon What are the implications?
Cement responsible for 8% of the World’s carbon emissions
If cement production were a country, it would be the third largest emitter behind China and the USA
Wood products are the low carbon substitute for concrete

14. Digital Signals of change An underperforming construction industry
Skills
Productivity
Quality
Costs
Waste
Safety
Procurement

15. Digital What are the implications? Projects delivered 40% faster
With 80% less on site waste
And 80% fewer safety incidents
Resulting in 20% lower costs

16. A perfect storm for megatrends is converging
WPMA
Government as a Customer
Urban Intensification
Off-site Construction
Low Carbon
Digital

17. What to do about it
“The best way to predict the future is to create it”
- Peter Drucker

18. Closing thoughts
Questions?