Forest2Market adds interactive tool to Mill2Market report for lumber sellers, buyers; tool allows subscribers to run 'what-if' scenarios on spreadsheet by changing price, grade and dimension, or volume, to determine effect on bottom line

Wendy Lisney

CHARLOTTE, North Caroina , May 1, 2014 (press release) – Forest2Market has enhanced Mill2Market, its quarterly performance benchmark for both sellers and mill-direct buyers of lumber. The quarterly report is now an interactive tool that allows subscribers to run “what if” scenarios. Using this tool, owners and managers can easily evaluate company performance compared to the market and develop go-forward trading strategies.

Built with and for engaged customers, this tool provides an at-a-glance summary of each subscriber’s production or purchases. Proprietary grades and dimensions can also be added to provide a comprehensive view of total traded volume.

The most significant change to the benchmark is its interactivity. Because the benchmark is now a spreadsheet, subscribers can change price, grade and dimension, or volume to instantly determine the effect those changes have on the bottom line.

By running what-if scenarios, subscribers secure the insight needed to make trading decisions in the future. Questions like, “Would we have left less money on the table if we had produced more #2 2x16s (which we sold at $32/MBF above market) instead of #2 2x8s (which we sold at $16/MBF under market)?” can be easily answered. And based on the answers, trading strategies can be developed to capitalize on the unique market information provided by Mill2Market.

“This is a real breakthrough for the lumber industry,” says Bob Bratton, manager of Forest2Market’s lumber practice. “Initial feedback from subscribers has been positive, noting both the ease of use and the value as a decision making tool. Not only can subscribers see how their price and mix compare to the market as a whole, they can also see how even modest changes to product price or mix might affect their profit margins.”

In addition to market comparisons and running “what if” scenarios, the new interactive benchmark makes it possible for subscribers to:

• Measure the difference between subscriber and market performance for each product and for all products in aggregate, as a dollar per MBF and as a total value (volume x price).
• Understand average length as a cause of price differences.

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