Furloughing of staff in UK timber industry now widespread – TTF survey

8 April 2020


More than 60% of Timber Trade Federation (TTF) members who responded to the federation’s coronavirus survey are now accessing the Coronavirus Job Retention Scheme (CJRS).

The survey gathered a total of 31 responses across the TTF membership between March 27 and April 3.

The CJRS sees the Government pay 80% of furloughed staff wages for a period up to three months. The TTF said the furloughing of staff in the timber trade reflected construction sites closing around the country, with the new build sector particularly impacted.

Survey respondents said “uncertainty” was the biggest concern for their respective companies and the industry, but most reacted positively to the Government support so far provided,

As well as the CJRS, almost half of respondents were seeking to defer their tax payments with HMRC. Only a quarter were currently seeking to access the Coronavirus Business Interruption Loan Scheme.

Almost 70% of respondents report changes in payment practices from customers or suppliers, such as payment extensions, customers withholding payments and businesses closing.

“I think some of the larger organisations will ask for extended payment terms, and this puts smaller organisations in jeopardy,” one respondent said.

Some 42% of respondents say the pandemic is a high threat to their company and 26% state it is a moderate threat, while 40% have seen a decrease in their cash flow, with 25% noting a significant decrease.

Individual responses from members showed most expect to be facing some kind of disruption for at minimum six months and widespread concerns about problems being pushed up the supply chain.

But there were also some positive comments – TTF members were confident about the general resilience of their businesses and in the longer-term future.

And once the lockdown is lifted several mentioned they “can take full advantage of the upsurge”. “Expect a quick return but probably not to levels pre-Covid for some while,” said another.

The TTF said most media reports estimate that the lockdown could be lifted in May/early June.

It said the government could further assist in this period by providing temporary holidays on employment taxes, or with other bills such as rent, energy and mortgage payments or support to pay staff via subsidised wage scheme.

The TTF is also advocating for continued support when businesses do reopen, as it may be some months before there is a return to pre-COVID levels of activity. This could include bringing forward scheduled programmes of prepared maintenance and construction to stimulate the repair, maintenance and improvement (RMI) market.

“This report reflects how uncertainty in the construction sector is impacting the timber supply chain, with mixed messages between national, local and devolved government on whether to stay open,” said David Hopkins, TTF CEO.

“While the measures taken by Government so far to support business may help in the short term, we will need to begin to see a plan for the other side of this crisis.

“Our counterparts in Europe are already working with Government on plans to open lower risk parts of the industry, and the UK will need to take similar action to provide an end to the uncertainty.”

To access the full TTF survey report visit here