Export Activities of Central Appalachian Hardwood Products Industry: The Case of West Virginia

摘要

The US forest products industry is struggling as it faces increasing pressure from foreign competition coupled with the current slump in the housing market. In order to survive, industries need to maintain and expand their domestic and international markets. Because the forest products industry of West Virginia is an important component of the state’s economic base, the industry must explore the export market to expand its market coverage. A mail survey was conducted in 2009 to assess the problems and potential strategies regarding participation of the West Virginia forest products in the export market. Results indicate that 28 percent of the respondents exported abroad. The most common product exported was lumber, followed by logs. The main reasonthat companies sell abroad is to reduce risk by selling to a diverse market, while the main reason for not exporting is the perception that domestic market involvement is sufficient. As expected, exporters were relatively more knowledgeable about issuesrelated to exporting compared with nonexporters, and they were also more knowledgeable in strategies needed to conduct international business. Based on the indicators examined, exporters were also more innovative. Of the respondents who did not participate in the export market, only 44 percent indicated that they were interested in developing export markets for their products. The top three problems that hindered competitiveness among nonexporters were production costs, lack of capital, and raw material problems.