This study seeks to examine the current conditions of the plywood industry; and thereby devise a stabilization plan for the industry, in reference to the identified problems and the current supply and demand conditions.
The domestic plywood industry is going through an unstable time as countries supplying raw materials of wood are shifting towards regulating the export amount of wood and increasing prices. Unlike the past, the persisting unstable economic conditions are leading to a decrease in the domestic demand and export demand for plywood. The increase in the price for wooden raw materials naturally led to the increase in the production costs of plywood in the country. This increase further led to an increase in export prices of plywood products.
The problems the plywood industry is facing have not only arisen from issues regarding price, but have also arisen from structural problems within the industry. The industry is also suffering from the persisting domestic and international recession, which led to the decrease in its exports. In addition, imported plywood is taking over and even monopolizing the domestic export market as the plywood market is presently going through industrialization.
The study suggests a prediction for both the domestic demand and export demand of plywood for the next 5 years as follows: the expected domestic demand in 1982 is 1.91 billion square feet, about 46% of the total demand for plywood. Meanwhile, the expected export demand is 2.2 billion square feet, 54% of the total demand. The imbalance in domestic and export demand is expected to level off to 50:50 by 1983. After continuously making a slight rise every year compared to the foreign demand, the domestic demand for plywood is expected to increase more than the foreign demand as its expected demand in 1986 is 2.58 billion square feet, 65% of the total demand while the expected export demand is 1.39 billion, equivalent to 35% of the total demand.
However, the total demand for plywood in the domestic and foreign markets is expected to decrease from 4.11 billion square feet in 1982 to 3.97 billion square feet by 1986. In this context, an estimate of the optimal production capacity is necessary in order to prevent instability spreading across the industry. In 1982, the production volume of plywood needed is about 4.57 billion square feet, which then is expected to continuously decrease until 1986, when the needed production volume of plywood is about 4.41 billion square feet of plywood. This marks an annual average decrease of 3.5 million square feet until 1986.
In order to stabilize the plywood industry, production volume should be adjusted to its optimal capacity while a stable import condition of wood is guaranteed in order to secure long-term suppliers. In addition, current policies and systems must be reformed in order to accommodate the export of high-quality processed plywood. At the same time, a variety of export markets must be secured. Finally, exporting plants to wood-supplying countries in order to complement the shortage of labor and facilities due to companies’ merging and downsizing is a suitable measure in order to resolve the limits of the domestic conditions.
- 합판업계의 현황과 합리화방안(안)(Study of the current conditions of the plywood industry and stabilization measures for the industry)
합판업계의 현황과 합리화방안(안)(Study of the current conditions of the plywood industry and stabilization measures for the industry)
[서울] : 한국개발연구원
|Series Title; No||정책연구시리즈 / 82-06|
|Subject||Industry and Technology < Others|