Trade fronts up to 2008 as a year of challenges

The new year is widely predicted to be tricky for the UK and western world economy, with pundits pointing to a continuing slowdown in the housing market, rising inflation, weak growth and a challenging jobs market.

So, how does the timber trade sees its prospect? TTJ asked companies for their views.

Roger Arveschoug, managing director of Capricorn Timber, said: "Despite the fallout from the problems in the American housing market I feel cautiously optimistic about the prospects for the UK timber trade in 2008.

“The current negativity about falling house prices is hopefully just part of a long threatened correction and, provided the Bank of England continue to lower interest rates over the next 12 months, confidence should return quickly.”

Stephen King, sales director at SCA Timber Supply, said: “In the first half year, less positive predictions by economic pundits will inevitably have a psychological effect on markets, though we remain upbeat about a stronger second half. If government is determined to deliver its housing programme, then timber-frame will further add to its market share this year.

“We will also be capitalising on positive developments in the timber windows sector.”

Hal Eccles, marketing and media manager at Lawcris Panel Products, said: “Follow-ing a highly successful year in 2007, Lawcris expect to see a steady growth in 2008. The recently publicised increases in the cost of energy and the continuing competition for raw materials may have an affect on the supply and costs of panel products during the year.”

Keith Ainslie, sales director of Howie Forest Products Ltd, said: “I am cautiously optimistic about the outlook for 2008, despite market uncertainty; we are well placed both with stock and the flexibility of our response to meet our customers’ needs.

“Most buyers are not heavily bought forward, and although there is still a lot of timber available in the UK, the specifications are not well balanced and gaps are already appearing.”

Geoff Arnold, managing director of timber frame manufacturer Pinewood Structures Ltd, said 2008 was best described as challenging, but “our greatest opportunity ever”. With the decline in consumer confidence and the knock on effects for private sector housing, 2008 will no doubt be a challenging year.”

However, he said opportunities for success were still the best “they have ever been” due to the Code for Sustainable Homes and increased public sector funding for social/affordable housing.

Warren Dudding, head of UK marketing at Finnforest, said the government’s drive for sustainable buildings, its timber procurement policy and high profile construction initiatives, meant demand for sustainable timber would increase.

“The price of timber has inevitably had an effect this year for suppliers, developers and housebuilders. As demand, both local and international for timber rises, 2008 could prove to be highly competitive.”