Plum Creek's large property holdings and forest management practices allow it to take advantage of economies of scale and the increasing value of timber over time to offset many of the negative effects of cyclical commodity pricing.
The company's higher-use and non-strategic use land holdings have been generating high revenues and profit margins thanks to a currently booming residential real estate market. Especially with higher-use land, Plum Creek is able to harvest the land to its fullest timber potential before selling or leasing it to create more revenue.
The growth of cellulosic ethanol as an alternative fuel has the potential to create new growth opportunities for Plum Creek, as a new market for what was formerly considered to be waste would allow the company to monetize everything produced.