FINAL CLUSTER ANALYSIS - Kohtla-Järve

11.3. WooDWorKIng sector
The key drivers in the woodworking sector are presented
below with a brief description.
socIologIcal DrIvers
There is already a certain amount of labour from the new
Member States working in the pre 2004 EU15 woodworking
sector. The number of incoming workers varies from
country to country with a tendency of infl ux being high
between border countries. The number of workers is still
limited because of the transitional schemes in various
EU15 countries that regulate (and restrict) the possibilities
for east European labour to enter EU15 labour markets. The
consequences of this free movement of labour within the
EU25 are still not clear and vary between countries and
sub-sectors. Despite the Directive 96/71/EC concerning
the posting of workers in the framework of the provision of
services, European Federation of Building and Woodworkers
feels that incoming labour puts a downward pressure
on wage levels (Bijen, 2004). European employers tend to
see the infl ow of low-paid labour from the new Member
States as a marginal problem.
technologIcal DrIvers
Technological development drives change in the woodworking
sector as research and development leads to innovation
and new technologies. However, the pace at which
these developments are integrated and implemented in
the sector, particularly among the smaller companies, is
very slow. The main barriers to unfolding the potentials of
these technological developments are awareness, knowledge,
competencies among construction companies and
incentives.
On another hand wood material research plays key role
in developing innovative, cost-competitive, eco-effi cient
Final Cluster Analysis
products, processes and services, e.g. radically reduce the
use of raw material in fi bre and wood products, create new
functionalities for wood-based products, improving wood
and fi bre properties.
economIc DrIvers
The forest-based industries account for a production value
of € 365 billion, with a value added of around € 120 billion
and have more than 3 million employees working in 344
000 enterprises. Many parts of the forest-based industries
play an essential role in maintaining sustainable employment
in rural areas. In the woodworking sectors, SMEs are
predominant while in the manufacture of pulp, paper and
paperboard the presence of larger fi rms is signifi cant.
The EU is the biggest trader and second biggest consumer
of forest products in the world, with a positive trade balance
overall. However, within this context, the EU is a net
importer of raw materials, mainly round wood that comes
mostly from the CEECs and CIS, and wood pulps from
North and South America and other regions having high
growth rates and low costs for timber growing. Within certain
sub-sectors where there is a particularly high level of
domestic supply, the EU is a prominent exporter, especially
for the more highly value-added products such as paper
and furniture.
The industry is characterised by global, regional and local
companies, including some big, globally present multinationals
as well as hundreds of thousands of small and
medium-sized enterprises, mostly privately owned.
The EU is very dependent on ‘imports’ of sawn hardwood
and pulp while markets outside the EU are very important
for ‘exports’ of certain printing paper grades and sack paper.
These imports represent 30-60% of EU consumption,
depending on the product and the exports represent similar
percentages of EU production levels.
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