2. Wood promotion in Germany – a joint initiative of forestry and the wood-based industry since 1990 Johann Georg Dengg Seminar on Strategies for the sound use of wood 24 –27 March 2003 Poiana Brasov, Romania

3. background for legal action on wood promotion the German Timber Sales Promotion Fund market Developments and Outlook Conclusion Structure of contribution

4. 1.3 million private forest owners (most hold less than 1 hectar (ca. 2 acres) ca. 60,000 wood processing enterprises (mostly small/medium sized) Economic pressure (e.g. substitution, global market) bad conditions for joint marketing and promotion! Unfavourable structures

5. preservation of fossil sources with a renerable raw material nearly closed product cycles comparably low energy consumption Carbon storage focus people‘s attention on these benefits! Environmental benefits of wood

6. forests: habitats of multifunctionality forestry: sustainable forest management wood: „key market product“ of forestry wood supply: Growing potentials in forests Fellings: Clearly below sustainability limits no conflict between preservation and utilisation of forests! Bridging an information gap

7. Timber Sales Promotion Fund Act of 1990 „centrally marketing the sale and use of wood products originating from German forest enterprises by modern methods and means“ The Timber Sales Promotion Fund I EU-Notification (avoid discrimination)!

8. Timber Sales Promotion Fund in Bonn experiences tough competition by competing raw materials (substitution) Struggles to achieve maintenance and development of market share in favour of wood products (marketing/promotion) The Timber Sales Promotion Fund II

9. about € 11 million per year originating from charges on saw log sales (8 per mill of selling-price) The Timber Sales Promotion Fund III budget

10. market surveys, polls 28% specialist advice 23% research and development 23% public relations, advertisement 22% Trade fairs, exhibitions 4% The Timber Sales Promotion Fund IV Main areas of actionshare of expenses

11. DEMOGRAPHIC DEVELOPMENT IN GERMANY

12. completed houses/year 8,000 35,000 market share (%) 7 15 Developments and Outlook I Sector-specific boom in wood construction 19902001

13. PUBLIC RELATION WORK

18. 40% of the customers can well imagine to live in wooden houses! But only 14% of them finally make this come true! Important is customer attendance & care Developments and Outlook II Results of an opinion poll, conducted by the Fund

19. Secure a high quality standard Consider modernisation and renovation Adjust research and development Strengthen marketing & promotion work Pursue international cooperation Developments and Outlook III Future actions of the Fund

20. Weakness/Threat e.g. fragmented structure lack of consumer consciousness Global competition Strength/Opport. e.g. raw material base environmental performance trans european networks Wood & lifestyle EU-SWOT Study 1999

21. Conclusion Without the Fund there would be no joint wood marketing in Germany In spite of difficult market conditions the Fund experienced some success It is important to concentrate on both national and international cooperation