saw chain market

[david19]

hello. didn't know whether to post this in the 101 thread or here. i'm a research analyst doing work on the saw chain market. is this a good business? specifically, i'm interested in blount (oregon, carlton, windsor and now speeco). seems like this is a pretty good business -- market share in excess of 50% in saw chains and guide bars. do stiehl and blount have pricing power? or do manufacturers like stiehl and husqvarna really control pricing? are low-cost asian manufacturers a threat to the profitable saw chain business?

one individual mentioned that the saw chain business is not as cyclical as one might think. he mentioned that the business is obviously impacted by the paper/pulp and housing/construction industries but that the business is actually pretty stable. do you believe him?

furthermore, is the real growth for the saw chain business going forward in the possibility that the government actively promotes wood-based biomass? would imagine that more saw chains would sell if that was the case. any other trends that i should be aware of?

i apologize in advance if these questions have been asked before. i'm just trying to better understand all aspects of this business. just trying to educate myself from people who know more about these topics than i do. thank you in advance for your help.

 

[Billy_Bob]

The saw chain market is international, not just U.S.

I would bet you could look at international wood products related sales and get a good predictor of saw chain sales. That is complex though, see link below.

So far as the U.S. and the logging industry, those in my area tend to not buy things on the internet, rather from their local distributors. And these are small local businesses. I would think that would be a tough nut to crack for the Asians?

However it would be much easier for them to make inroads via manufacturers of inexpensive chainsaws, BUT being what a litigious society the U.S. is and the extreme danger of personal injury should a chain break, I should think any manufacturer who attempted to sell a chainsaw in the U.S. with a chain other than from the current chain manufacturers, would be quite the fool!

Products made from trees...
http://www.idahoforests.org/wood_you.htm

 

[dingeryote]

Last time I talked with an Oregon district Rep. he told me flat out that they were cranking out LGX 24-7 at full capacity, and were 6 Months back logged on production with no chance of catching up without increased production capacity.

It's kinda nuts when ya think about it really.

Just to stir the pot further, we ARE heading into a second round of recession and heating season at the same time with Propane and heating oil costs through the roof. The options are heat with wood, or go broke.
Firewood dosn't get cut without saw chain, and even the Nasty little trash saws at Wal-Mart come with a new chain on 'em.

I don't think Oregon is gonna catch up any time soon, and hardly anyone with 2 brain cells seriously thinks the chineese chains are worth the cost of the box they are in.

Stay safe!
Dingeryote

 

[Ed*L]

I'll agree with Oregon being backed up....been waiting several months now for an extra set of Gator blades.

Ed