Business Case of Industrial Vegetation Management Expansion

Spectrum Resource Group Inc. (Spectrum), looking to diversify from solely Forestry Consulting and Contracting, is striving to horizontally integrate into Industrial Vegetation Management projects. These Industrial Vegetation Projects, in many cases, are very similar to Forestry projects, but access into these markets remains difficult. Research needs to be completed to determine what capital assets would need to be purchased, how Spectrum’s existing resources (physical and human) would fit into conducting these projects and how a marketing plan can be developed to capture these opportunities. The reason Spectrum wants to diversify away from Forestry Projects is because of the decline of Forestry occurring within BC and Alberta. This decline is due to a number of factors: 4. Impact and devastation of mountain pine beetle forests and subsequent drop in harvesting of crop trees. This decline in harvesting is directly resulting in less planting, brushing and surveying contracts for Spectrum 5. High Canadian Dollar limiting Exports of Lumber to the United States 6. Cumbersome and restrictive Softwood Lumber Agreement with the United States The purpose of this research is to determine if there are opportunities for Spectrum to expand their existing Industrial Vegetation departments, and if so, where and how. Research will be completed to determine what Spectrum’s existing market share is within the industrial vegetation management industry and moreover, what steps will be required to expand on this market share. Also, to research other areas of industrial vegetation management that Spectrum doesn’t currently operate within and determine if Spectrums can capture on these opportunities.

Faculty Supervisor:

Dr. Elizabeth Croft

Student:

Duane Neal Maki

Partner:

Spectrum Resource Group Inc.

Discipline:

Business

Sector:

Agriculture

University:

University of Northern British Columbia