Private markets & real assetsFiera Capital
Forestry Gears Up for a Technology Revolution
Artificial intelligenceAutomation & robotics
Our summary
Technology is transforming forestry by improving yield, operating efficiency, risk management and carbon-measurement accuracy, creating an opportunity for scaled active timberland managers.
- Forestry has historically been underinvested in technology because trees can take decades to mature, estates are remote and the sector has relatively low capital requirements.
- Drones, satellite imagery, LiDAR and artificial intelligence are being used to map inventories, estimate tree age and calculate growth over time; drones are becoming cheaper, longer-lasting and more accurate.
- Precision processing addresses millions of possible combinations when each tree can produce three to four logs of different lengths and qualities, while predictive algorithms and linear optimization can improve log-value recovery.
- Automation can reduce waste and labour needs, while optimized log selection matters because prices for different lengths, diameters and qualities can vary by more than 2x; telematics, GPS, climate models and pest detection can also improve logistics and risk management.
- Combining satellite, drone and ground-level LiDAR with machine learning should improve carbon-sequestration measurement, auditability and verification, although implementation is more viable for scaled managers with internal expertise.
Takeaway: Technology is not a substitute for experienced forestry operators, but managers with scale and operating capabilities can use it to improve decisions, offset rising labour and energy costs, strengthen carbon-project confidence and eventually deploy electrified and semi-autonomous equipment.
Published by Fiera Capital. Summary by HF Best Ideas.