Analysis of business performances of wood-based industries in the S. R. Croatia and expectations in the near future

In the recent four year period the growing negative consequences of international overdebtedness, uncontrolled inflation, and overall fall of productivity are being felt. Sawmilling, wood-based board manufacture, and furniture production are over-extended, having at their disposal only one third of the total required financial resources, the remaining two thirds being loans and credits. Output of the pulp and paper industry is sufficient, due to the lack of raw material. The main reason is the lack of realistic plans for afforestation, and lack of means for the realization of bolder investment in forestry. Rentability is high, but with a downward tendency, due to expected further rise in interest rates. Profitability is falling. Productivity is falling too, with a further downward trend. Diminuation of output is leading to the waste of resources. Financial policy measures are proposed, which should facilitate mergers within the wood-based industries and forestry, on programs of production aiming at increase of exports of products of a high degree of finalization.