Natural resources as a risk factor: risk management in the wood composite and furniture industry
The demand for products from the wood composite and furniture industry has remained stable for years. The actual risks to the industry lie in the different cost factors for cost-effective wood processing and material production. On the one hand, prices for wood as a raw material in Germany are increasing, as well as the high demand for word as a source of energy in biomass plants. On the other, increasing energy costs also mean higher costs of production. A third factor is that there is an increasing concentration on just a few suppliers amongst the manufacturers of chemical raw materials for wood composite production. This dependency on the supplier relations results in significantly higher business interruption losses in the event that a supplier cannot deliver.
As an experienced, independent broker for industrial insurance, Funk helps wood processing and manufacturing companies reliably assess their individual company risks and devise an appropriate cover strategy that allows for a long-term commercial engagement on the market.
Investigating, assessing and optimally covering fire risks in the wood composite industry
The processing of wood into wood composites and furniture presents a host of fire risks, for example from the breaking down of wood into chips and fibres or the pressing and drying of composite materials. Due to the high fire load because of raw materials, products and residual materials in the workshops, sources of ignition such as sparks from production systems, hot surfaces from production equipment or technical defects can quickly trigger a fire or even an explosion. A comprehensive fire protection strategy is therefore an essential part of risk management for the wood processing industry. Funk offers targeted risk assessment in terms of fire hazards for a company and in terms of all other company-specific risks including:
- Business interruption due to technical damage or supply shortages
- Liability for personal injury resulting from the production system or the products (due to machinery, wood dust, lacquer and solvents)
- Environmental risks from processing glues and lacquers
- Transport losses
- Forest management risks, e.g. due to forest fires, pests and the effects of climate change
Company-specific insurance strategies for wood processing companies
Funk has supported a wide range of companies in the wood sector for many years, from sawmills and wood composite producers to furniture manufacturers. Each of our clients benefits from our industry knowledge, our trained eye on individual company risks and our cross-discipline knowledge of the global insurance market.