Competitiveness of Minnesotas Solid Wood Products Manufacturing

1
Competitiveness of Minnesotas Solid Wood
Products Manufacturing

• Presented to the Vital Forests/Vital Communities
  Conference
• September 11, 2003

2
Presentation Outline

• Global, National, and Local Factors
• Examples of Our Value Added Activities
• Recommendations for improving competitiveness

3
Global Factors
4
National Factors
5
Local Factors
6
Rajala Companies Unique Activities

• Harvest from the bottom up, saving some of the
  best for later.
• Merchandise for maximum value at the stump
• Tread lightly
• Plant and nurture challenging species

7

• Custom Milling
• Any primary activity that differentiates us from
  commodity products

8

• Veneer slicing extends the use of our finest logs
• Aimed at the wood window and door industry, which
  is strong in N. America, especially our area

9
Trends in Secondary Manufacturing

• Veneered Components
• Stretches the resource while providing superior
  performance
• Moves optimization of raw material up the supply
  chain

10
Goals of Rajala Secondary Manufacturing/Marketing

• Lean manufacturing crusade
• Beat back global competition with service and
  quality
• Hard nosed price negotiations
• Sell the exceptional virtues of Minnesota species
• Invest in employees

11
Policy Recommendations

• Develop public/private partnership to improve
  design, manufacturing, and competitiveness of
  Minnesotas secondary wood products
  manufacturing. Begin with State task force on
  Competitiveness, similar to primary wood products.

12
Policy Recommendations

• Resist the temptation to accept a one size fits
  all approach to certification. Our independence
  empowers us, and we must preserve the opportunity
  to practice forestry that is smart for Northern
  Minnesota.

13
Conclusion

• One of Minnesotas best opportunities to preserve
  sustainable manufacturing activity is to invest
  in and support its secondary wood products
  industry in both the metro and outstate regions.