Issue link: https://nebusinessmedia.uberflip.com/i/1198617
W W W. M A I N E B I Z . B I Z 19 JA N UA R Y 1 3 , 2 0 2 0 F O C U S 2 0 2 0 E C O N O M I C F O R E C A S T C O N T I N U E D O N F O L L OW I N G PA G E » F O R E S T P RO D U C T S Evolving forest products industry moving forward B y M a u r e e n M i l l i k e n A collaborative strategic planning process, workforce development initiatives and a continued focus on new technology will keep the forest products industry moving forward, Patrick Strauch, executive director of the Maine Forest Products Council says. e key is to find workers. "We're seeing a market change take place and we want to make sure we're diver- sifying our economy and looking for the right opportunities," Strauch says. "No one has forgotten that from 2014 to 2016, five pulp-paper mills closed, thousands of jobs were lost, and those losses affected families and communities across the state," Strauch says. "But adversity has also pushed our industry forward. In the past few years we've seen — in just a back-of-the-envelope tally — about $1 billion in investments, which have revitalized Maine's forest products industry." He said the FOR/Maine forest economy economic roadmap, a collabora- tive effort that is looking to grow the industry 40% by 2025, is the major focus. "We call it Maine's New Forest Economy," he said. "Our goal is to increase our capacity to harvest wood and manufacture more wood products, from lumber, to tissue paper, to biobased plastics. To reach that goal, we'll need more trained workers and continued support from policymakers and the public. ere are a lot of challenges ahead, but also a lot of opportunities." e industry is hoping potential workers "take another look at our industry and consider working with us," especially those who love the Maine outdoors. "is is not your grandfather's forest products industry, it really is a new forest economy," one people can make a career in. "And you don't have to leave Maine. You can build a great career at home," Strauch says. One of the challenges the industry faces are regulations that make it harder to do business in Maine, he says. "Our state is almost always ranked as among of the worst states in which to do business. We're making progress and I know we can do better." at's especially necessary as capital investment competition is fierce in the forest industry. Specific things to keep an eye on are a successful revival of the Nine Dragons Old Town mill, the start-up of the new Pleasant River sawmill in Enfield and keep an eye on what happens with GO Lab's wood insulation plant at the former Madison Paper Mill. Strauch is on Gov. Janet Mills' Climate Change Council, and one of the goals for 2020 is to help people understand the role Maine's forests and wood manufacturer already play in the mitigation effort. "We're green," he says. "We're the good guys. If you look at the current accounting, our forests probably eat up more than half of the emissions that are out there right now and our wood products serve as carbon sinks and replacements for petroleum-based products." R E TA I L A growing industry with a stagnant workforce B y J o y C h o q u e t t e T om Chappell has long experience in the sustainable personal care business — he was the co-founder of Tom's of Maine — and, despite the challenges everyone has with finding skilled workers, he has a positive out- look for 2020 and beyond for his most recent venture, Ramblers Way. "For 10 years we have been building a supply chain, product line, team and a reputation," says Chappell, owner of Kennebunk-based Ramblers Way. "And now we're ready to drive it with efficient use of significant amounts of cash." Ramblers Way, a certified organic wool company, is an apparel company dedicated to sustainability. at sector — sustainable clothing — is experiencing significant growth and is growing by 11% per year. In 2020, the company will focus on expanding its presence online. It currently has a retail store in Portland and online ordering. Chappell says Ramblers Way will use the data from recent market research and share it with its target audience through social media. Education is an important piece of the puzzle for the company. "We edu- cate consumers on how we make our products from fiber to finished garment in the U.S.," Chappell says. "And what is the meaning of sustainable clothing or organic [clothing]." Challenges for the company are basic but frustrating. "Our biggest challenge is finding enough people to sew our garments," says Chappell. "We don't have enough at the moment and the market is pretty lacking in available skills." Currently, the merino wool is purchased and turned into yarn before it is knitted into fabric in Massachusetts. From there, the material arrives in the Kennebunk manufacturing facility, where it's made into clothing. Another challenge is the industry's own growth. "All the excitement of this high growth could cause us to lose our focus and discipline internally." Chappell says that he is not worried about a shrinking market because of the fast growth of sustainable clothing sector as a whole. Still, the company is uniquely positioned. "We are the leader in sustainable wool clothing," Chappell says. "Our expertise is in wool, so we know where to get it and how to get it to market because we've been doing this for 10 years." Adversity has pushed our industry forward. — Patrick Strauch Maine Forest Products Council Our biggest challenge is finding enough people to sew our garments. We don't have enough at the moment and the market is pretty lacking in available skills. — Tom Chappell Ramblers Way P H O T O / C O U R T E S Y O F M A I N E F O R E S T P RO D U C T S C O U N C I L P H O T O / C O U R T E S Y O F M A I N E F O R E S T P RO D U C T S C O U N C I L Patrick Strauch, front left, executive director of the Maine Forest Products Council, say the key to 2020 will be finding workers. Tom and Kate Chappell have long experience in the sustainable personal care business, as founders of Tom's of Maine. Despite the challenge of finding skilled workers, Tom Chappell says he has a positive outlook for 2020 and beyond for his most recent venture, Ramblers Way.