Seeing trees and forests: a comparative evaluation of business clusters and national industry associations in the New Zealand forest sector.

training support

Media strategy

Energy efficiency

Economic impact

assessment

Wood East Coast

Hawke's Bay Wood Year started 2001 2002 Membership 29 members identified on 19 organisations

a 2004 website directory responding to a

membership

capability survey Share of Around 50%: first website Around 50-75%: potential directory identified over over 30 organisations membership 60 members canvassed

to join Sector Sawmillers, timber Sawmillers, timber representation processors, furniture, processors,

joinery and design furniture, joinery Stakeholder Port company gives Education and participation financial sponsorship training Organisational Linked to Hawke's Bay Linked to form Economic Development Gisborne City

Agency Economic

Development Unit Main activity Facilitator provides 'Uncaged'

business support furniture brand

Cluster linked to a development

furniture design Training provision

incubator

Seminars

New investment

investigation TABLE 3: NATIONAL FOREST INDUSTRY ASSOCIATIONS 2005 Forest Industry Formed 2002 formed to give a common voice on Contractors relevant issues and to foster development and Association improvement in the forestry contracting

industry. Approximately 100 members. Forest Owners Formed 1926 as an advocacy group for commercial Association plantation forest owners. Members' forests

comprise more than 80% of New Zealand's

plantation forests. Pine Manufacturers Formed 1991 to promote New Zealand's ability Group to meet international demand for value-added

products and components for the benefit of

member companies and the economy as a whole.

Has approximately 50 members engaged in the

manufacture of solidwood items such as furniture

and components used in domestic and commercial

construction. Timber Industry Formed 1983 from the amalgamation of three Federation associations with histories back to the early

1900s. Represents the interests of sawmillers

that do not own forests or at least partly rely

on timber sourced from other forest owners.

Approximately 30 members. Forest Industry Formed 1998 to encourage the adoption of Engineering new technologies by wood processing and Association manufacturing companies. Engages in a

variety of technology transfer and

education initiatives. Timber Preservation Proprietor of a quality assurance programme Council for treated timber with around 150 users of

the certification. TABLE 4: REASONS FOR JOINING A CLUSTER AND INDUSTRY ASSOCIATION Number of respondents indicating the motive Industry for becoming attached to the cluster/industry Cluster association association (n = 46) (n = 27) Stay informed about what other businesses are

doing 33 20 Chance to form new business contacts

(supplier, customer or partner)

among other members 13 6 Keep in touch with existing business contacts

(supplier, customer or partner) 16 8 Access to advice/information from the network

coordinator/staff 13 16 Activities organised by the network (for

example marketing trips, seminars) 5 12 Support the industry 26 10 Help ensure everyone is working in the same

direction 15 5 TABLE 5: PERCEPTION OF THE ROLES OF CLUSTER AND NATIONAL INDUSTRY ASSOCIATION (N=46) Comparing a cluster with an industry association Yes No Unsure Clusters provide a better way of keeping in touch

with what your suppliers and customers are doing. 28 12 4 Clusters give more scope for your business to

influence network activity. 34 7 3 Industry associations are a better source of

business advice. 19 14 11 Industry associations are more effective in helping

to develop new markets. 19 7 18 Industry associations are more effective in keeping

you in touch with government regulation and

programmes. 24 12 8 Industry associations are more effective in keeping

you in touch with industry developments such as

market changes and new machinery. 20 10 14 Clusters manage relations with regional government,

industry associations with national government. 23 11 10 Industry associations are about industry politics. 24 12 8 Clusters are just about business. 18 13 13 Industry associations are less focused on issues/

activities that are of direct interest to this

business. 25 11 8 Industry associations and clusters do similar

things. 14 27 3 Industry associations demand equal commitment as

belonging to a cluster 11 23 10 TABLE 6: OUTCOMES FROM CLUSTER AND INDUSTRY ASSOCIATION MEMBERSHIP

Industry Number of respondents claiming each Cluster association outcomes in the last 12 months (n = 46) (n = 27) New business partner 1 3 New customer 8 2 New supplier 9 2 Information on new equipment,

raw material or other purchases 21 14 Training 13 11 Assistance to comply with regulation

or quality/market standards 11 19 Advice particular to this business 18 14 Obtained industry intelligence 32 18 TABLE 7: EMPLOYMENT SIZE OF CLUSTER PARTICIPANTS

Number of respondents Employment Southern Northland Wood East size of cluster Wood Wood Hawke's Coast participants Council Processing Bay Wood Over 50 7 2 2 1 21-50 -- 5 5 -- Less than 21 2 5 7 11 Note: Estimates based on direct workforce only, excluding contractors.