Australia’s largest forestry equipment supplier, Komatsu Forest is reporting its best sales record in its 25-year history. Source: ABC Rural
Globally, Komatsu Limited turns over US$26 billion each year and its forestry arm, Komatsu Forest is the single biggest player in forestry machinery in the south-east of South Australia.
The company said while the downturn in mining and economic slow down in China was causing problems for its global operations, its forestry arm was booming.
The company’s National Sales Manager, Brenton Yon said the company would beat last year’s record breaking sales by a significant margin.
“We’ll beat last year by about 25%,” he said. “For us, it’s been quite strong and quite huge.”
The Japanese company said its always had a 50% market share in the supply of forestry equipment in Australia, which in the context of a booming industry, puts the company in a strong position.
“The weakening of the Australia dollar has helped wood exports out of Australia into China, Japan and Korea,” he said. “Since 2013, the industry has been on a really strong incline.
“All the indications are that the industry will continue to boom for another three years,” he said. “We had a long down cycle with the GFC.”
Mr Yon indicated that industry was looking at manufacturing pellets for heating through constructing two pellet plants in Australia, worth about $100 million.
“I don’t think the location for those has been set, although one will probably be Tasmania,” he said. “Whether one’s here or Victoria, I think is still open for debate.”
Mr Yon suggested that Australia imports significantly more softwood (pine), than it imports. According to him, there is a $2 billion deficit.
The Federal Government last year released statistics indicating a 17% increase in housing starts across Australia.
According to the Australian Forest Products Association (AFPA), this deficit, coupled with an increase in housing starts will result in more new Australian homes being built from imported timber.
AFPA CEO, Ross Hampton said establishing new plantations were integral to fight the problem.
“This gulf equates to 128,000 new homes per year that could, and ideally should, be constructed out of Australian timber,” he said.
“Establishing new plantations to produce timber for new houses is now vital. Forest industries call on the Government to grow Australia’s capacity to meet this demand.”
Forestry industry leaders have collectively indicated Australian forestry has a huge public image issue to overcome.
Mr Yon indicated one of the biggest issues facing the industry is a lack of skilled workers, caused by in part its lack of popularity with young people.
“There’s a massive issue with training in this region,” he said. “First thing you’ve got to do is get people interested in the industry
“There are 18-year-old and 19-year-old people out in the forests working in these machines that are making $60,000 to $80,000, with the ability to earn more.”
