Summary
• Softwood suppliers believe the right business strategies can help them steer through the slump.
• Traders are shaping up for the future by investing in people.
• Developing softwood sales is a “long-term proposition”, say companies still looking recruit sales staff.

The economy is tough, and getting tougher, and the UK softwood trade is not immune. It has seen its fair share of closures, cut backs and redundancies and The Timber Trade Federation has revised its 2009 forecast for softwood import volumes, knocking 600,000m³ off the total to give a final figure of 5.36 million m³. That’s a 28-year low.

But some softwoods traders are doing their level best to find the positives. Merchant CR Taylor has been especially vocal about business talking itself into an even worse position, with sales director Charles Taylor addressing the topic on Sky News.

“We’ve made adjustments to our business and have had to make some redundancies,” he said. “But by stripping the business back we’ve been able to refocus our minds and look at what we’re doing and who we are.”

This, he said, had allowed CR Taylor to cut out less viable elements of the business and replace them with high-value product lines.

Good specification

Paul Ford, softwoods director at Premier Forest Products, puts offering the right product high on his list of priorities as well. “Offering a good specification is the way to get business,” he said. “It’s hard, but if you’ve got a decent product at a fair price you’ll get a good price for it.”

Investing in people is another focus for many in the softwood market.

Seven softwood traders at Rowlinson Timber Ltd have recently completed the Softwood Visual Strength Grading to BS 4978 CATG exam and other staff are undertaking a range of Builders Merchants Federation training courses this year. Last year the company opened its own academy to improve the skills and timber knowledge of both its own personnel and customers. ‘Students’ who have undertaken the Academy courses under tutor Ken Wyatt include employees from Jewson, Travis Perkins and a number of independent merchants.

“We feel the investment is worth every penny if it ensures our customer service,” said Rowlinson Timber Training Academy organiser Rob John.

He added that Rowlinson’s grader training is already paying dividends. “The efficiency with which we can assist people in their yards is second to none, with every trader now qualified for grading.”

Continuing recruitment

Mr Taylor said CR Taylor has also focused on staff training and morale, as well as recruiting sales staff with “many years’ experience in the industry”.

“I’d say we have the best team we’ve ever had and we’re looking to recruit again,” he said.

Rowlinson and Snows Timber, last year’s TTJ Softwood Trader of the Year, are also recruiting sales people.

Snows managing director Jim Peryer described sales as a “long-term proposition”, with developing relationships a fundamental. Rowlinson managing director John Bate agreed. “They’re in place to help customers and, even if they’re not taking sales at the moment, we’re able to keep a presence in the market place,” he said.

Opportunities are also reported to be opening up for companies on the Olympic Delivery Authority’s Timber Supply Panel. Finnforest, Hoppings Softwood Products, James Latham and Premier Forest Products are among the 16 companies to have made the grade for the panel.

A recent meeting gave the group the opportunity to mingle with Tier One contractors and present their business and products.

“We’ve spent the best part of a year doing the groundwork to get on the panel, and now we’re there we’re starting to see enquiries,” said Hoppings chairman Charles Hopping. “We’re also hearing that people who were supplying the Games are now being told they can’t because they’re not on the panel.”

Opportunities for trade

While the panel may have a degree of exclusivity, however, James Latham chairman Peter Latham told TTJ earlier this year that he still believes the London Olympics will benefit the wider trade.

“The Games may not include an iconic timber building, but timber will be visible in exterior cladding, joinery, interiors and other applications. It will be a good advert for wood.”

The UK’s sawmills aren’t shying away in the face of the downturn either.

BSW Timber continues to invest at its Fort William site, with new facilities installed to treble treatment capacity. “This upgrade will enable us to significantly boost the treatment capabilities at Fort William and ensure that the sawmilling business evolves with our customers and services their demands,” said chief executive Tony Hackney.

Skilled workers

And Howie Forest Products, despite recent redundancies, has done its utmost to keep hold of its skilled workers so that it can benefit when the market returns.

“We’re now at a level where we can support the workforce we have,” said Hamish Macleod, joint managing director at the Dalbeattie-based sawmiller. “We worked hard to retain skills in the workforce so we can grow again. The changes have meant we’re here and ready for customers.”

While there is no doubting the severity of the market – “I’ve been in the industry for a long time and I’ve never seen anything like this before,” said Snows’ Mr Peryer – there are positives to be taken from speaking to the softwood sector.

“If you’re sensible about how you go through a recession you can still succeed and even make more money, with a tighter rein on spending and paying closer attention to the market,” said Mr Taylor.

Mr Hopping said that companies that are well-financed and well-managed will survive. “In fact, you’ll probably gain, relative to others,” he said.

“But there’s no magic wand,” added Mr Peryer. “Sheer grit and hard work are what’s going to get you through.”