Germany’s forest sector National benchmarks, regional clusters and the role of network initiatives Dr. Uwe Kies Wald-Zentrum, University of Mßnster, Germany uwe.kies@wald-zentrum.de
EFI Annual Conference 2010, Dresden, Sep 16, 2010 Wald-Zentrum
Uwe Kies, Dresden, Sep 16, 2010
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The Forest Sector: a deep value-added chain
Outline Forest sector concept Findings from German case study Forest cluster organization in the EU
Wald-Zentrum
Uwe Kies, Dresden, Sep 16, 2010
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The Forest Sector: a wood-based cluster -An obvious concept of a peculiar sector
Construction
Panels
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Forest-based industries
Packaging
Sawmilling
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Crafts
Filière forêt-bois Furniture
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лесного комплекса Energy (Forest complex)
Forestry Suppliers
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Metsäklusteri
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Cluster Wald und Holz
NWFP, Services
Paper production
Publishing, Paper printing manufacturing Wald-Zentrum
Uwe Kies, Dresden, Sep 16, 2010
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The Forest Sector: a major force in employment -Key figures Employees
Europe
Germany
(2005, EUROSTAT)
(2008, BA)
Cluster total Cluster, excl. publ. & printing:
5.4 million 3.6 million
857,200 550,300
Share of total economy (A-O)
3.3%
3.1%
Share of prod. industries (C-F) Country/State variances
15% 11-34% (DE, LV)
9.5% 4-12% (SAA, S-H)
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Uwe Kies, Dresden, Sep 16, 2010
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Germany’s forest sector: National trends -An unexpectedly large sector ... ... yet in disproportional decline
2008
6th rank position among producing industries (NACE C-F) Wald-Zentrum
Cluster total: -412,400; -32% Wood industries: -65,000; -32% Uwe Kies, Dresden, Sep 16, 2010
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Germany’s forest sector: Regional impact -Regional forest sectors -... can obtain leading positions in regional economies -Up to 15-20% of total employees, large deviation from national average of 3%
Forest cluster share of employees in German counties 2008
-... ensure employment in rural environments -Concentrations located in border locations and weakly industrialized regions
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Uwe Kies, Dresden, Sep 16, 2010
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Germany’s forest sector: Regional clusters -Sawmilling, 1999-2008 -Large clusters in West Franken (BW) -> growing, Black Forest (BW), Sauerland (NW), Niederbayern (BY) -> declining
-Local concentrations in East Isolated, but growing Emerged anew after 1990
-Cut-throat competition Large & growing locations vs. Small & declining in their vicinity -> on-going structural change Wald-Zentrum
Uwe Kies, Dresden, Sep 16, 2010
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Germany’s forest sector: Regional clusters -Wood-based panels, 1999-2008 -Outstanding cluster in NRW 5,000 employees (30%) in 7 neighbouring counties
-Declining locations in West Strong losses in NRW and B-W Extinctions in Bavaria
-Growing locations in East New foundations Small local concentrations
Wald-Zentrum
Uwe Kies, Dresden, Sep 16, 2010
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Germany’s forest sector: Regional clusters -Paper production, 1999-2008 -Major cluster in NRW 5,500 employees (28%) in Rhineland region
-Southern locations decline Strong losses in Bavaria
-On-going concentration Large & growing locations vs. Small & declining
Wald-Zentrum
Uwe Kies, Dresden, Sep 16, 2010
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Germany’s forest sector: Regional trends -Western vs. Eastern Germany, small vs. large scale Sawmilling, 1999-2008
-Smooth decline in West in total: -8,300
-Structural shift in East Small + medium: -900 (-27%) Large: +1,600 (+178%)
-Locational factors labor costs, land values, advantageous infrastructure, and:
totals in bold, changes in italics
-Questionable role of federal subsidies ! Wald-Zentrum
Uwe Kies, Dresden, Sep 16, 2010
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Forest cluster organization in the EU -Networks and cluster initiatives -Established Scandinavia UK Austria Czech Republic Slovenia -Emerging Germany France Eastern Europe -Embryonic Balkan Wald-Zentrum
Uwe Kies, Dresden, Sep 16, 2010 Kies 2010 (non representative survey)
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Forest cluster organization in the EU -Improving inter-industry communication via knowledge exchange, networking, innovation
Building networks among industry, public authorities & research Joint interest representation in politics (lobbying) Initiation of legislative reforms Public relations & marketing Information systems, platforms Education & qualification Business development, spin-offs Logistics, supply chain management R&D for innovation Wood mobilization ! A multitude of specific collaborative projects ...
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Uwe Kies, Dresden, Sep 16, 2010
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Forest cluster organization in the EU Selected established initiatives
Moravian Silesian Wood Cluster
German furniture cluster
Slovenian Wood Industry Cluster
www.forestryscotland.com ; www.holzcluster-steiermark.at ; www.cluster-forstholzbayern.de ; www.msdk.cz ; http://grozd.sloles.com/en ; www.zimit.de ; www.paperprovince.com Wald-Zentrum
Uwe Kies, Dresden, Sep 16, 2010
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The Forest Cluster: Conclusions (1) -An “unknown, sleeping giant” ? Rooted in the regions, the sector is a vital source for value added and employment in local SMEs, not only in rural areas. Its major contribution to macro- and regional economics is largely underestimated even in the sector itself, and hence not fully recognized in economic policy. Its basis are an abundant natural resource (forest), a primary material with excellent properties (wood) and multiple advanced and environmentally sound end uses: these represent decisive strengths and untapped opportunities for regional sustainable development.
However, the fragmented, poorly organized sector needs to join its forces, bridge the gaps between forestry and wood processing and advocate its case with one voice. Wald-Zentrum
Uwe Kies, Dresden, Sep 16, 2010
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The Forest Cluster: Conclusions (2) -Structural change and its impacts ďƒ˜ But: The massive structural change will continue to have wide ranging effects on timber production, markets, prices and hence overall regional availability, putting regional procurement security at stake. ďƒ˜ Enlargement and relocation of single processing capacities has seldom been a success story from a regional economics perspective. After all, increased wood mobilization does not necessarily entail growth in wood industry employment. ďƒ˜ The dynamics of regional clusters, (co-)agglomerating branches and underlying formation factors need to be well understood and should be the starting point for intelligent cluster development policies. Wald-Zentrum
Uwe Kies, Dresden, Sep 16, 2010
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The Forest Cluster: Conclusions (3) -Lessons learnt from networks and cluster initiatives ? ďƒ˜ Networks and clusters can stimulate innovative business potentials and stabilise negative employment trends in the wood industry, yet their capacity to ensure long term growth still needs to be demonstrated . ďƒ˜ The majority were initiated with considerable governmental funding, yet during their consolidation few managed to become self-supporting based on membership fees and fund raising. ďƒ˜ Their major opportunities, but also major challenges lie in their proper definition of their role as a facilitator and promoter of joint collaboration and the need to offer competitive support services to their members.
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Uwe Kies, Dresden, Sep 16, 2010
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Thank you for your kind attention !
www.wald-zentrum.de/kies uwe.kies@wald-zentrum.de
www.in2wood.eu
-Kies U., Klein D., Schulte A., 2010. Germany’s forest cluster: exploratory spatial data analysis of regional agglomerations and structural change in wood-based employment. Primary wood processing. Forstarchiv 81(6), 236-245. www.forstarchiv.de Wald-Zentrum
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