Russia holds about 25% of the world's forests. However, the proportion of wood on the Russian market accounted for only 2% in woodworking and 3% in trade. Only 20% of Russian timber is included in the downstream processing activities. According to experts’ estimate the value of the logging market is $ 4 billion. The largest segment of the market is 47% - and consists of raw wood (pulpwood, industrial roundwood, sawlogs).

The capacity of the domestic market of woodworking is estimated in the range of $ 2-2,5 billion. The largest segment of the market - more than 50% - occurs to the production of lumber (40% - the production of plywood and 10% - boards MDF, hardboard and chipboard).

The dynamics of the market

According to State Statistics Committee of Russia in 2007, the volume of timber production, wood processing services and production of wood increased by 6.2%, compared with 2006.. However, in 2008 the market influenced negative aspects associated with the global economic doqnturn. In 2008, the volume of timber working fell at 22%; the demand in sector of furniture production has dropped at 25-30%, of wood and sawnwood at 40-50%.

According to the Ministry of Agriculture estimated in 2009 the volume of timber harvesting in Russia will fall. Small and medium enterprises will be affected stronger than all. The serious decline is expected in the logging industry, which is now the most technologically underdeveloped. 2009 revealed a marked trend of falling market of wood-working equipment, in particular, the decline in sales of woodworking machines. The market has shrunk accordingly the amount of orders from businesses to repair woodworking machinery reduced. Also the volume of orders for wood products from businesses related industries dropped.

In 2009, the dynamics of falling output in the wood has slowed in comparison with IV quarter 2008: «Virtually all commodity groups observed monthly production capacity and increase the level of capacity utilization at 10-25%», - underlines the Deputy Minister of Industry and Trade of Russia Andrei Dementev. According to the Ministry, woodworking and production of wood in the I quarter of 2009 decreased at 29% compared to the same period of 2008, the pulp and paper production, publishing and printing activities - at 16,6%, and timber - at 10, 4%.

Due to reduction in demand and prices for wood products industry, lots of enterprises suspended production and shipment of products. The first half of 2009 compared with the corresponding period of 2008 significantly decreased the production of solid wood panels (at 39.8%), plywood (at 36.2%), wood stoves (at 30.9%), timber (at 22 4%), manufacture of wooden building structures (to 26.9%). The drop in production volumes in the pulp and paper companies in the I quarter of 2009 amounted 12,5%.

The fall in the domestic market is also fraught with a declining share of imports of foreign woodworking equipment. According to representatives of the price indices of major instrument manufacturers the rearrangement of the demand of consumers from high and middle segments of the segment below the national average is noticed.

Market growth of wood and woodworking equipment

Weak growth in the domestic wood processing industry is linked mainly to the low efficiency of production and lack of investment. Sales of wood-processing equipment are largely dependent on how the market will develop for housing. The seasonal factor caused a possible revival of the market. With the start of construction and the cottage season, according to the experts, the positive trend in demand for lumber and wood processing equipment in the lower price segment is expected.

The negative trend is not only the objective consequences of the economic crisis. Many experts called the cause of the fall the obsolete technology and a small amount of wood reinforced deep, used in production. Today, the owner of the business does not invest in technology resources to update their businesses, but use old woodworking equipment, having from time to time a full renovation. However, the light at the end of the tunnel is visible, innovation is increasingly being implemented in the wood. Most Russian companies are developing a strategy for preserving market share and make adjustments in the manufacturing process in accordance with the constantly changing market requirements.

Energy Saving in Wood Industry

More and more manufacturers are paying attention to the introduction of energy-saving technologies. Today's economic crisis has made the topic of resource economic very relevant. Special interest it’s introducing the topic of energy-saving technologies acquired in the production and maintenance of sawmill equipment, woodworking machines and tools. Needs of saving the energy and minimize the cost of repair of equipment creates the prospect of development of energy-saving technologies in the industry. Modern, high-speed woodworking machines that use energy-saving technologies are low cost and meet the demanding requirements of modern industries in advanced manufacturing processes.

Each node of the technological equipment passes a strict control and is exactly in line with the existing technological standards. The integrated control system for quality guarantees the excess stability and longevity of the operation of machinery and equipment. Large range of applications and innovative solutions with the introduction of energy-saving technologies makes it possible to carry out this revolution in the wood. On the basis of economic calculations in the implementation of energy-saving technologies, the timing of return on investment is estimated by experts in the interval of 2-3 years, as the main consumer products industry has traditionally remain Buildings Industry and repair, which is now up to 75% of all wood products.