3 minute read
Getting Back to a ‘New Normal’
Timber Development UK examines the current state of the timber market as we move ahead in 2022.
We’ve been through an extraordinary two-year journey right across the construction industry. Brexit, Covid-19 and a shortage of materials caused demand to spike in almost every product sector – and timber was no exception. Timber imports to the UK surged during 2021, with more than six million m3 entering the country during the first six months of the year. This was the highest level of imports seen since 2007.
Typical timber imports rarely exceed one million m3 in a single month, and yet June 2021 was the fifth time that barrier was broken between Q4 of 2020 and Q2 of 2021 – proof of just how high demand for timber products was during that time. This surge in demand and the resulting difficulties of supply caused concerns right across the supply chain and led to countless column inches in the mainstream media as newspapers and TV news channels asked why there was a shortage and when people would be able to source the fence panels, timber sheds and sleepers that they wanted to use to spruce up their gardens and improve their homes post lockdown.
These shortages inevitably caused prices to rise sharply, but as we settle into 2022 calm has mostly been restored to the timber supply chain. Merchant and supplier stocks of timber have been replenished across most of the country, and while some construction products are still in short supply, the timber industry has recovered well, and demand has returned to more typical levels.
Our latest market statistics show that timber and panel product import volumes in Q4 of 2021 continued to decline, with volumes in November 2021 158,000m3 down on the volumes seen in October 2021. Despite this drop towards the end of the year, with 768,000m³ of timber and panel products imported into the UK in November 2021, the total volume of imports reported in 2021 exceeded 11 million m³.
Most product categories are also nearing record import volumes in 2021 even as they enter more regular patterns of supply and demand – including the usual winter decline. It’s clear that the demand for timber remains strong, and at Timber Development UK we would expect to see this continue throughout 2022 and beyond. “It is normal for timber and panel product imports to tail off towards the winter months as construction demand slows amidst the festive season,” says Nick Boulton, head of trade and technical policy. “The fall in the volumes of imports in Q4 2021 also likely reflects the state of supply lines in the structural softwood market, which appeared to be largely saturated at that time. As the weather improves and demand for timber climbs again, we expect to see timber imports rebound in our trade statistics, which is a regular pattern for the timber industry. Over the coming year we expect to see a comparatively stable market – but this doesn’t mean there won’t be any squeeze on the supply chain particularly amidst rising international demand.”
It seems unlikely that demand will return to the extremely high levels we saw last year, but timber is a popular building material, as evidenced by the media focus on the shortages experienced during the pandemic. We would expect to see that popularity continue going forward, especially as the wider construction industry grapples with the need to find more efficient and sustainable building methods.
Timber is an extremely low-carbon building material when compared with alternative building products such as cement and steel. The Climate Change Committee has highlighted that increasing the number of new homes built using timber frame construction from 27,000 a year to 270,000 could triple the amount of carbon stored in UK homes – a significant potential benefit as the government looks to create a net-zero economy.
It’s imperative that the entire timber supply chain comes together to push a holistic vision of sustainable, low-carbon building that puts timber at the centre of the conversation and helps shape a new future for timber within the construction industry.
Timber Development UK is the new name for the Timber Trade Federation, as we unite with TRADA to form a new industry association that can offer guidance and support to every facet of the supply chain. More at www.ttf.co.uk
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