The problem of poor returns

Developing new, value-added products is difficult without the profits needed to attract investors, industry experts say

Consultants PwC, who track industry performance, say that even though the B.C. pulp sector turned in a relatively good performance, lumber companies were hammered by low commodity prices — and that’s on top of challenges like the mountain pine beetle and taxes on American softwood lumber sales. PwC is now analyzing data on the year, but preliminary indications are that 2011 was another dark period for the beleaguered industry. …Chronically poor returns are keeping the industry from realizing its potential, said Bromley. “We are reliant on commodity markets, but we should be extracting more value from the fibre,” he said.

By Gordon Hamilton
Jul 12, 2012
Vancouver Sun

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