Recession costs timber frame market £1.5bn
20 November 2013An estimated £1.5bn of sales were lost by the timber frame market in the recession since 2008/09, according to a new report.
The MTW Research 200-page study also says more than 40% of timber frame suppliers made a loss in 2012. And up to 40% of timber frame market production capacity is currently underused as volume contracted by 30% in the last few years.
But crucially, the report says the market is strengthening this year and will pick up pace in 2014, driven by the revived housebuilding industry.
The report (based on financials from 80% of the industry) forecasts healthy growth in most sectors, with increasing volumes boosting profitability, and pricing pressures starting to ease.
Newbuild social housing has acted as a dampener on growth prospects, with a 20% decline in the last four years as social housing budgets were cut from £8bn to £4.5bn.
Commercial timber frame construction is identified as an area with key opportunities for growth, while MTW's forecast model suggests a 100% increase in non-domestic timber frame construction in the next few years.
