Making the Most of Timber Supplies

from Timber Trader UK Magazine Issue 13 Summer 2021

New Face for Key Industry Supplier

To help merchants address some of the current product shortages, the Timber Trade Federation (TTF) is recommending that buyers and suppliers collaborate closely and continue to plan ahead.

T

imber purchasers should be as flexible as possible with specifications and quantities required, thus making the most of available supplies. The TTF says that Q3 this year will be the most challenging time for timber supply in recent history. Sawmill stocks in countries such as Sweden, a major supplier of structural timbers to the UK, are at their lowest for some 20 years, according to Swedish Wood, though production up to the summer was, in their words, proceeding at “full throttle”. The Construction Leadership Council’s Product Availability Group has also issued an alert on shortages of all construction products of which timber is only one.

A statement from EOS, the European sawmill industry organisation, added that the wider industry is taking the demand situation “very seriously” and is “working on solutions” including productivity development and resource efficiency. TTF members too are looking at ways to increase resource efficiency, adapting and in some cases laminating timbers to help achieve customers’ requirements.

Summer will see sawmills across Europe catching up on maintenance schedules, as they have been working at pace throughout the pandemic to fulfil as much demand as possible. Any periods of shut-down may well add to supply pressures, which will in turn be felt in earnest here in Britain over the next few months. The TTF is therefore recommending constant communication with suppliers and preparing wood customers for the potential of lengthening lead times and cost increases. Placing orders well ahead of time is also recommended.

With almost all timber arriving in the UK being pre-sold, there is no excess stock available. Even for those companies with forward purchasing strategies, the continuing exceptionally high demand and lack of balancing processing capacity means some companies may not receive all the material they need for their businesses. The level of demand is currently higher than can be sustained by existing production facilities and available input supplies across the UK and Europe.

Supplies of BS tile batten are particularly problematic. An increased demand for small sections makes the grading and inspection process more time-consuming, presenting a challenge when mills are under pressure to maximise volume throughput. Supplies of panel products also continue to be greatly under pressure, and will remain so throughout 2021, as there is little additional global production capacity available. Significant demand is being experienced for particular products such as Melamine-faced panels, particularly in MDF, as consumers improve their homes and create office-style working spaces.

In the wider construction sector, some house-builders are turning to engineered wood products such as LVL and CLT for building frameworks, and modified wood products for claddings. However as these, alongside I-joists and metal web joists, utilise the same wood resources, they are subject to similar constraints on supply.

Builders seeking hardwoods such as green Oak for framing on more specialist projects are struggling to full supply gaps. All categories of hardwoods from across the globe are now observing shortages, though as yet these are not as acute as in the structural softwood sector. European and American hardwoods, including all varieties of Oak, are in very strong demand. Supplies of European Oak are already becoming scarce as buyers switch away from decreasing supplies of American White Oak. As hardwoods need a long production cycle, supply is set to narrow further through the autumn.

Hardwood buyers are increasingly turning to African species to fill supply gaps, with supplies of Sapele, Sipo (Utile) and Iroko already difficult. Rising costs of shipping containers, one of the many legacies of the pandemic, are still with us, adding to pricing pressures. Buyers of South East Asian timbers such as Meranti and Keruing are already purchasing on forward allocations; Bangkirai (Yellow Balau) for decking is also in very short supply.

TTF members are doing their best to service customers. The growth in global demand for timber of all kinds, now recognised for its potential to store carbon in building, is likely to continue in the medium term. Upward price trends are thus likely to continue for some time to come.

RACKINGSYSTEMS

DESIGN|MANUFACTURE|INSTALLATION

WickensisoneofthelargestmanufacturersofspecialisedheavydutystoragesolutionsintheUKwithover 40years’experienceinthemarket.Ourrobustandreliablerackingsystemscanhelpimproveyoursite operationinthemostcost-effectiveway. WeofferafullProjectManagementservicefromtheinitialsitesurvey,manufactureandinstallationtoannual rackinginspectionsandreplacementparts.