Forest products certification: a survey of manufacturers
1998
Stevens, J. | Ahmad, M. | Ruddell, S.
This study, based on a survey of U.S. companies that sell FSC-certified wood products and those that do not, describes the characteristics of the current market for such products. Within the supply chain, brokers/wholesalers, household furniture manufacturers, and niche wood manufacturers that are not selling certified wood products believe there is a willingness-to-pay for these products in about 3 percent of their customer base. Served market share improvement, not price premium, was given as the primary motivation for companies to offer these products. For companies that are selling FSC-certified wood products, markets are small and fragmented but growing, and yield a price premium. With the average premium charged to certified wood buyers of 4.7 percent and the average premium paid to manufacturers of 6.6 percent above the price of comparable non-certified products, producers are covering their costs of being in the certified product market. A higher willingness-to-pay is displayed by customers of higher value-added products and West Coast customers. Lack of supply of certified wood is a problem reported by all manufacturers in these groups. The average increase in the cost of goods sold for companies selling certified wood products is estimated to be about 5.4 percent.
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