Partnership Profile
Promoting Commercial Success Through Economic Analysis
Collaborative work between outside partners and FPL's Economics and Statistics Research group generally occurs through other research work units at the Forest Products Laboratory. For example, researchers in Engineered Composites Sciences and their commercial partner, Wyoming Sawmills, turned to FPL economists to help boost the success of a newly developed product. FPL and Wyoming Sawmills worked together to develop value-added laminated lumber products that helped improve forest health by creating a valuable use for undesirable timbers and also proved to be successful building materials. Upon researching the market for such a product, Wyoming Sawmills realized the demand was potentially much larger than they could supply, and decided it would be advantageous to put together an economic model of the process. Such a model would assist other business in picking up on the technology as well, thereby expanding the market, increasing the success of the product, and ultimately promoting Wyoming Sawmills. To assist with the commercialization of these products, FPL economists developed a tool for evaluating the financial feasibility of laminated lumber plants. This spreadsheet-based computer program, called LamLum, analyzes the economics of laminated lumber manufacturing facilities by helping organize information (such as wood supply, loan interest rates, financing, product prices, and materials and labor costs) and then determining how important each of these factors are in the profitability of the facility. The program is now available to anyone interested in a business venture of this nature and can provide critical information to help get them started. |
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