Forest Products Industry

Andreas Råheim and his son Mikael run a business in Norway that’s helping test and develop forestry technology. They are using drones, satellite positioning and remote monitoring in tandem with equipment engineered with the latest automation and communication technology. Though it’s something Andreas could barely have imagined as a child, he has embraced it as a business owner. Source: Timberbiz “Using new technology is a big part of success,” he said. “It makes you work safer, more efficiently, and more securely, putting you at the forefront.” The logging practices Andreas observed as a child have evolved far beyond horses and tractors as foresters like him have sought ways to grow their business while adapting to environmental concerns and tight labour markets. Andreas and Mikael embody the dramatic changes in forestry operations taking place in their lifetimes. Their company, Valdres Skog, is north of Oslo in the region of Østlandet and employs 20 people, including two apprentices. Using five Komatsu harvesters and five loaders, they harvest about 130,000 cubic meters (170,034 yd3) annually for more than 250 forest operations. They made their first technology leap in 2015, after learning about Komatsu’s MaxiFleet system (now called Smart Forestry) at a trade show in Sweden. It was the first fleet management system of its kind: a web-based suite of tools enabling foresters to remotely visualize information from each machine’s control system. It meant that production could be monitored at the office — a huge development for an industry that often functions in remote, hard-to-reach areas. When the Valdres Skog machines were retrofitted to use the new technology, it was the start of a long partnership. The Råheims helped Komatsu understand how their new solutions worked in the field and how they could be improved even further. When Mikael enrolled at the Norwegian University of Life Sciences, which specializes in agriculture, environmental sciences and natural resource management, he had additional exposure to technologies Komatsu would later introduce to the market. The suite of solutions now known as Smart Forestry kept evolving, adding functions that helped Valdres Skog automate administrative tasks, receive remote training and support, use drones to collect data, share information among locations and machines and more. The most recent new offering Valdres Skog helped test, Smart Forestry Precision, uses the latest satellite positioning technology to determine a machine’s position within a margin of error of just a few centimeters. “Precision’s Geofencing has allowed us to increase efficiency and avoid errors, especially when it comes to environmental considerations,” Mikael said. “I can’t imagine working without Precision now.” Technology makes it possible to selectively harvest, plant diverse species, and work in a way that causes less disturbance to the forest ecosystem. Valdres Skog is investing in equipment for thinning as a way to future-proof the forest by making it more resilient to storms and disease. “If you take care of the forest, it stays healthy and binds carbon dioxide, and you can also extract the important forest raw material that adds great value by replacing fossil materials in many cases,” Andreas said.

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Increased wood consumption in Finland is now primarily driven by industry, where demand for wood-based products continues to rise. Finland remains one of Europe’s largest exporters of forest products, and the sector plays a crucial role in the national economy. Source: Luonnonvarakeskus, photo: Creative Commons Lic. Credit: Vargazs Finland’s forest sector is undergoing a clear transformation. In 2025, the use of directly harvested wood for energy declined, even as total wood consumption increased. This is shown by preliminary data from the Natural Resources Institute Finland. Firewood, long a central part of energy use in many households, particularly during winter months, saw reduced consumption over the year. The development marks a shift in a country where bioenergy has traditionally held a strong position. Many Finnish households still rely on firewood for heating, especially in detached homes and rural areas. Despite this, the volume of wood taken directly from forests for energy use declined in 2025. There are two main reasons for the decrease. On the one hand, demand for firewood has weakened. On the other hand, alternative uses for wood — particularly in industry — have gained importance. At the same time, total wood use increased compared with the previous year. This suggests that a larger share of raw material is now directed towards industrial processing rather than being burned directly. In earlier reports, it was pointed out that the forest industry is increasingly shifting towards higher value-added products, such as pulp, paper and wood-based bioproducts. This development reduces the incentive to use raw wood for simple energy production. The decline in firewood consumption is occurring alongside broader changes in Finland’s energy system. Alternative heating solutions, including district heating and electricity-based systems, have become more widespread. At the same time, questions remain regarding the role of bioenergy. Firewood and other biomass are often considered part of the energy mix, but critics argue that direct combustion of wood leads to resource inefficiencies compared to industrial use. The developments in 2025 indicate that the balance between energy use and material use of forest resources is being reassessed in Finland.

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