Metla Project 3454

Profitability development of service businesses of wood procurement enterprises

Duration: 2007-2010   Keywords: accounting, bioenergy, business models, entrepreneurship, organising, productivity, profitability, service processes, wood procurement
Research Programme: Renewing wood product value chains and timber procurement solutions

Objectives

1. What is the structure and economic situation of logging and forwarding enterprises today? How do expected changes in future working conditions and environment affect it?
2. Is it possible to find ways to increase the profitability of these enterprises by means of analysing and controlling their economic situation?
3. How do new service products like harvesting of bioenergy, mechanical planting or other silvicultural operations affect investment needs, the use of the machinery and enterprise profitability?
4. What changes are happening in the customer structure and agreement procedures of the enterprises?

Brief description of project
Background
Sub-projects

External funding for the project

• The Marjatta and Eino Kollin Foundation, 44 000 euroa (4.6.2007)
• The Finnish Cultural Foundation, the Kalle and Dagmar Välimaa Fund, 10 000 e (27.2.2007) have enabled and enable interview studies of the forest machine entrepreneurs and the managers of the forest management associations. The interviews are dcarried out in cooperation with the Department of Forest Resource Management of the University of Helsinki. The phone interview studies of the entrepreneurs are carried out together with Skogforsk and Seinäjoki University of Applied Sciences.

Results

The seminar Skogforsk - Metla was held in 1.3.2007. In the program there are links to the seminar abstracts. (The seminar program is in Swedish, the abstracts are in English)

The beginning seminar of the project was arranged in 29.3.2007. In the program there are links to the abstracts and conversation (the page is in Finnish).

OSCAR Seminar - Forestry Business Engineering 21.8.2007

Väätäinen, K., Lappalainen, M., Asikainen, A. & Anttila, P. 2008. "Kohti kustannustehokkaampaa puunkorjuuta – puunkorjuuyrittäjän uusien toimintamallien simulointi" [Towards more cost effective wood procurement – simulation of new operation models], Working Papers of the Finnish Forest Research Institute 73, [in Finnish] in cooperation with entrepreneurship discipline of the University of Jyväskylä as a part of the doctoral dissertation project of Ms. Minna Lappalainen (nee Vesterinen).

1st IUFRO All-D3-Conference "Pathways to Environmentally Sound Technologies for Natural Resource Use", June 15-20, 2008, Sapporo, Japan.

• Markku Penttinen's presentation in the Conference: "New business models needed in restructuring wood harvesting business" (pdf)

The Nordic-Baltic Conference on Forest Operations - September 23-25, 2008, Copenhagen, Denmark

• Conference followed by a Nordic meeting, in which a presentation was held: Weakening economy versus tightening requirements: Study on forest machine enterprises (pdf)

Figures For Forests congress - November 24-26, 2008, Freiburg, Germany

• Presentation at the conress 24 November 2008: Wood harvesting profitability, liquidity and solvency (pdf)
• Proceedings article: Wood harvesting enterprise: profitability, liquidity and solvency (pdf)
• Presentation in the same congress IAS/IFRS Accounting and Forest Valuation on Farm Forestry and poster Farm Forestry Accounting – The Finnish application for profi tability bookkeeping at the project 3456 homepage

Forest, Wildlife and Wood Sciences for Society Development, International Scientific Conference, Organized on the occasion of the 90th anniversary of the Forestry Faculty in Prague, Czech Republic in 16. - 18. April 2009. Faculty of Forestry and Wood Sciences in Czech University of Life Sciences Prague

• Presentation: Challenges to the forest machine business as a result of global economic change (pdf)
• Proceedings article: Challenges to the forest machine business as a result of global economic change (pdf)

10th International Scientific Conference ECONOMIC SCIENCE FOR RURAL DEVELOPMENT 2009, April 23 - 24, 2009, Jelgava, Latvia

• Paper in the conference 23.4.2009: Economic prerequisities of rural forest machine enterprises (pdf)
• Proceedings article: Economic science for rural development, s.62-68 (pdf)

Penttinen, M., Mikkola, J.& Rummukainen, A. 2009. "Profitability of wood harvesting enterprises", Working Papers of the Finnish Forest Research Institute 126.

Our project gave a presentation on "The economic situation of forest machine entrepreneurs" in four Trade Association of Finnish Forestry and Earth Moving Contractors' autumn 2009 seminars in Mikkeli, Tampere, Iisalmi and Rovaniemi. The presentation (pdf) is unfortunately only in Finnish.

Penttinen, M, Rummukainen, A. & Mikkola, J. 2010. Wood harvesting enterprise: Profitability, liquidity and solvency (pdf). In: Hartebrodt, Chr. & Howard, K. (eds.) Proceedings of International Workshop on Figures for Forests, Schriftenreihe Freiburger Forstlicher Forschung, Band 84,Forstliche Versuchs- und Forschungsanstalt Baden-Württemberg, Freiburg im Breisgau, pp. 89-101

The Nordic Baltic conference on forest operations - OSCAR 2010, October 20-22, 2010, Honne, Norway

• Presentation: Challenges to the forest machine business as a result of global economic change (pdf)

Newspaper articles for a professional journal

• Penttinen, M. 2006. Koneyrittäjä - onko nurkissasi laiskaa pääomaa? [Machine entrepreneur - is these lazy capital in your corners] Koneyrittäjä [Machine entrepreneur] 4: 49. [in Finnish]
• Penttinen, M., Mikkola, J. & Rummukainen, A. 2008. Sijoitustuoton näkökulmasta puunkorjuuyritysten kannattavuus on vaatimatonta luokkaa. [From the point of view of investment return the profitability of wood harvesting enterprises is in a modest league] Koneyrittäjä [Machine entrepreneur] 9: 12-13. [in Finnish]
• Penttinen, M., Rummukainen, A., Leppänen, J. Mikkola, J. 2009. Kuinka paljon koneyrittäjiä oikein on? [How many machine entrepreneurs are there really?] Koneyrittäjä [Machine entrepreneur] 1: 14-15. [in Finnish]
• Penttinen, M., Mikkola, J. & Rummukainen, A. 2009. Miten laman haasteisiin voidaan vastata. [How to cope with the challenges of the recession] Koneyrittäjä [Machine entrepreneur] 6: 26-29. [in Finnish]

Project leader: Rummukainen, Arto
The Finnish Forest Research Institute, Vantaa Unit, PL 18, FI-01301 VANTAA, FINLAND
Phone: +358 10 211 2369 Telefax: +358 10 211 2103
E-mail: arto.rummukainen@metla.fi

Other researchers: Aarnio, Jukka, VA (2007-10), Laitila, Juha, JO (2008-09), Leppänen, Jussi, VA (2007-09), Mäkinen, Pekka (2009-10), Penttinen, Markku (2007-10), Selby, Ashley, VA (2009), Tikakoski, Simo, VA (2007-08), Väätäinen, Kari, JO (2007-10)

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Updated 24.05.2012
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