For British sawmills the year thus far could probably be summed up as “better than 2024 but not quite as strong as the signs earlier in the year were leading us to believe”.
That’s the verdict on the market for Britishgrown timber from Scott Gordon, executive director at Gordon Timber and it’s a view shared by others in the sector.
“Demand for British-grown timber is steady,” said James Brennan, head of marketing at BSW Group. “And what we have seen this year is a return to the seasonal peaks and quieter periods that were more the norm in the pre-Covid years – so we saw demand spike for fencing and landscaping going into the Easter period and then now going into the second half of the year demand moved to more construction products. It’s encouraging because it suggests some sense of normality and stability has returned to the market.”
Gordon Timber also enjoyed a strong fencing season and was hopeful that there may be a kick in demand at the end of the traditional fencing period thanks to the recent storms (Floris in particular).
It’s a similar story at James Jones & Sons where demand for British-grown timber was “reasonably strong for the first six months of the year”.
“The fencing season started early with the dry, warm spring weather,” said Eddie Balfour, joint managing director. “However, it appears that this may result in the season coming to an end rather abruptly. July was a disappointing month for fencing. Once the holiday season has ended, we can judge how demand will track for the rest of the year.”
While fencing demand may have been a very welcome fillip for British sawmills, it’s fair to say that neither of the other major strings to their collective bow – pallet and construction timber – are romping away, reflecting the sluggish economy.
Prices for British-grown sawn timber rose by 5-7% in Q1, raising sawmillers’ hopes that this was the start of a much-needed upward trajectory, but they levelled out and have stabilised as the year has progressed.
What has remained of benefit to the British primary processors is the continuing price differential between imported and homegrown.
“British timber, particularly C16 graded timber, has been competitively priced all year compared to imported C24,” said Mr Balfour. “The price differentials between C16 and C24 are at historically high levels making C16 a very attractive alternative. The major UK sawmillers all have latent capacity for kilning and grading and as a sector we are working together to promote the benefits of using more C16.”
James Jones is working on a joint campaign with Confor and Timber Development UK alongside BSW and Glennon Brothers to promote C16 as an alternative to C24 (see pp22-23).
“As a sector we’re showing solidarity in communicating about what a robust and sustainable industry we operate in,” said Mr Brennan. “We’re really trying to communicate the messages consistently that we need to plant more productive woodland and that we all have the capacity and capability to produce more timber in the UK for domestic demand for construction. We’re hoping to get the minister Mary Creagh’s backing and really drive the importance of the timber industry in the UK – for rural jobs specifically but also for the wider economy and to meet sustainability objectives.”
With demand being less than stratospheric it follows that there haven’t been any issues regarding log availability. Concerns do remain about replanting levels, however.
“One of the big issues for us is the species split when replanting is happening,” said Mr Gordon. “There has been a lot of disease over the last 5-10 years and it’s a problem for landowners to know what species to plant. If they’re not putting in enough of the right productive forestry that then becomes our problem as processors down the line.”
Anecdotally, he added that if a block of timber was felled, the level of restocking with productive timber species could be as low as 70%.
“The balance is native woodland, broadleaves and open ground,” said Mr Gordon. “That is a problem going forward. It’s nothing new but it’s an ongoing concern.”
However, he noted that Forestry and Land Scotland’s (FLS) new glasshouse and growing facility at Newton Tree Nursery, near Elgin was very positive for the sector.
The new facility, which opened on August 12, represents a significant investment by the Scottish government and FLS to complete a £26m transformation of Scotland’s only publicly managed tree nursery into a stateof- the-art facility, responding to one of the Scottish government’s four strategic priorities – tackling climate change.
The modernised facility is now capable of producing 19 million trees a year – up from seven million – and features a precision glasshouse, operations centre, cold stores, seed store, automated systems and sustainable infrastructure.
“It’s showing great joined up thinking and investing for the future,” said Mr Gordon. “It’s a long-term return but it’s the old story – when is the best time to plant a tree – 30 years ago; when is the second-best time – now.”
The BSW group is playing its part, too. Its subsidiary, Maelor Forest Nurseries, which is now part of Tilhill Forestry (along with Dick Brothers Harvesting) is working hard on improving tree genetics.
“We have one of only two seed orchards in the UK down at Maelor and we are selfsufficient in terms of Sitka spruce stock, so when it comes to species enhancement, we are well placed to look into where genetic gains can be made,” said Mr Brennan.
Those gains could be growing trees that are stronger, or trees that grow more quickly so the rotation time is reduced, leading to a faster return on investment and freeing up more land for replanting.
Mr Brennan added that the Timber in Construction roadmap and the Welsh government’s recently released Timber Industrial Strategy were also very encouraging for the home-grown timber sector, joining the dots between forestry and end markets.
“They link more conifer planting with increased use of timber and production, which is really important,” he said.
Back at the sawmills, processing is “generally tracking on budget in terms of production and stock levels”, according to Eddie Balfour, who added that lead times for most of James Jones’s products are good.
BSW is also “in a strong position” with stock levels at this time of the year and “about where you’d expect to see them”.
“We are now looking at starting building inventory in specific product groups so that we are well placed for demand when it arrived next year,” said Mr Brennan.
Production at Gordon Timber is up more than 10% over the last year and the company is looking to grow that by another 20% over the next two years.
“The investments we made in the gang saw two years ago is giving us the throughput and sawn timber yield that we were hoping for,” said Mr Gordon. “We’re operating at about our existing capacity but are looking to grow that through efficiencies and further investments.”
Stock levels at the Nairn-based mill are slightly lower than this time last year [speaking in August] which is “a good sign, overall” and inventory is turning over every four weeks. “That’s pretty healthy,” said Mr Gordon.
Further investments under way – and integral to Gordon Timber’s plans to boost output – include two new scanners in an extended collaboration with RemaSawco. Totalling almost £500,000, the investment includes a log scanner for log grading in the yard and a board scanner for sawn timber production.
“The log scanner will give us a highly accurate picture of the logs we are cutting and allowing the batches to be more precisely sorted, contributing to higher productivity of the sawline,” said Mr Gordon. “The board scanner will give us more accurate grading of our sawn timber and will improve the quality and yield of our finished product.”
A new log deck has also been ordered and the company is considering “AI cameras”, which would help improve the log gaps and reduce bottlenecks.
When it comes to investments, James Jones is focused on delivering its Durham redevelopment project, which represents “a major capital spend for the group”.
The redevelopment of the former Taylormade Timber Products site, which James Jones secured when it acquired Taylormade’s holding company GT Timber Ltd in 2021, is the first industrial scale sawmill to be built in the UK in many years. Construction work is continuing apace and the mill is expected to be commissioned in the summer of 2026.
“We have a majority of civil works completed and are now starting to install equipment for the new sawline,” said Mr Balfour. “We still have another 12 months hard work ahead of us to hopefully complete the project on schedule. It’s an exciting time for our team in north-east England.”
Investments have included further acquisitions, of course, and James Jones has continued to bolster its presence in Australia with the purchase of another pallet business – Newcastle Pallets. The acquisition was made by James Jones’s Hyne Group through its growing Hyne Pallets division and is the fifth pallet manufacturing acquisition in less than two years.
Eddie Balfour noted that James Jones’s Australian business “has been facing the same challenges we have in Europe, with very sluggish demand in the construction markets. There are, however, signs that things are improving and we are positive about the short-term outlook”.
The past 10 years has seen some significant acquisitions by the BSW Group (which itself has been part of Binderholz GmbH since 2021) and this has been one of the factors in its rapid growth. Now, said James Brennan, the focus is on “the integration and recalibration” of those businesses.
At the end of last year, for example, it announced investment in BSW Timber Solutions and Bayram Timber sites in Melton, near Hull. The two sites were just a couple of hundred yards from each other, so when the opportunity to buy an adjacent third site arose, it made sense to bring them together.
Bayram Timber is now officially part of BSW Timber Solutions and the move presents a number of opportunities in the marketplace.
“Their product mix is similar but what differs is the service offering,” said Mr Brennan. “While BSW Timber Solutions typically supplies the DIY and retail markets, Bayram is more specialist – kits for caravan manufacture, furniture and so on. In joining these two businesses and service offers together we are seeing more opportunities for both of them.”
Focus has also been on enhancing the offering of the various businesses acquired in recent years.
Power Sheds has a new website and has had its first foray into TV advertising. Meanwhile, the tree nursery business has been trialling cold chain storage – refrigerated vehicles – thereby ensuring that the saplings remain in peak condition from the time they leave the nursery to the time they are planted.
And on the subject of forestry, there has been significant investment in BSW’s fleet of harvesters and forwarders.
“This year we have invested £6m in the harvesting fleet and have more than 80 machines now,” said Mr Brennan. “None of the machines are over five years old, so they are all running as efficiently and productively as they can.”
Another more recent addition to the BSW family – Pallet LOOP – is now fully operational and “developing really well”.
“We have produced around 1.5 million pallets,” said Mr Brennan. “We estimate there are 20 million pallets produced for the construction industry every year, so to get 1.5 million into circulation this year is a really strong start for a new part of the business.
“The focus is now on collecting those pallets. We are already seeing much higher than industry average return rates, which is encouraging, but we need to keep banging that drum because, ultimately, producing pallets is only half the battle. The initiative is essentially built on the return, reuse and redistribution of those pallets.”
This time last year British Gypsum had just come on board with Pallet LOOP and since then three more manufacturers have joined – Isover, Wienerberger and Superglass.
Pallet LOOP and fellow BSW business Scott Pallets have both been shortlisted for the Sustainable Materials Award at the 2025 Supply Chain Excellence Awards, which take place on November 6.
BSW hasn’t let the grass grow when it comes to product development either and in July it introduced a range of additions to its portfolio.
These include decorative micro crosslaminated (CLT) timber panels. A partnership between BSW Timber and Binderholz this line of decorative micro CLT is a first for the UK market and provides alternative products for builders and DIYers alike, showcasing the versatility and quality of timber as a construction material.
This new product is a 3-layer solid wood spruce panel with tongue and groove connections on all four edges or as a larger panel in square edge. It provides a highly decorative finish for a multitude of highquality interior construction and DIY projects. The new multi-layered panels have a planed, finished surface, which is easy to stain or paint, and come ready to fix, using hidden fixings for an aesthetic finish.
Also new, and expanding BSW’s already vast range of fencing components, are eased edge screening battens.
Perfect for creating garden zones, privacy screens, or decorative fencing, these battens are ideal for both residential and commercial landscaping projects. Each batten is planed and pressure-treated, with rounded corners, ensuring a splinter-free smooth finish and long-lasting durability. They are suitable for vertical or horizontal installation and can be stained or painted.
Two UC4 decorative pine products have also been introduced. These planed, eased edge pine posts and pine sleepers are manufactured from kiln-dried pine, both products are planed all round with eased corners to deliver a clean, refined finish that’s ideal for visible applications.
The decorative pine posts are available in 2400, 3000 and 3600mm lengths, with a section size of 100 x 100mm, making them perfect for structural garden features such as pergolas, trellis systems, and outdoor frames.
The decorative pine sleepers, measuring 195 x 75mm, come in 2400mm lengths and are ideally suited to landscaping applications like edging, retaining walls, steps, and raised planting areas.
Looking ahead, the prospect of an increase in demand for timber construction purposes presents both opportunities and challenges.
“Demand hasn’t materialised in terms of new houses and construction output as the best-case scenario would have suggested it could – but equally I think most of the construction sector agrees that there isn’t currently enough labour in place to fulfil that best scenario,” said Mr Brennan.
“We need to bring more people and skills into the industry before it can really grow, but I think regardless of that, demand for timber is going to increase. It is the most sustainable building product on the planet. Some forecasts say that by 2040/2050 demand will triple or even quadruple – it’s just a case of when and how government and legislation adapt to facilitate that.”
Over at Gordon Timber, Scott Gordon agrees that encouraging young people into the industry is a vital investment in the future. It has been very supportive of careers events at local schools in order to showcase jobs in manufacturing and timber processing. It has its first apprenticeship under way on the engineering side and is looking to roll that out into other areas of the business.
The company has also created its own opportunities for career progression. Earlier this year Scott Gordon and his brother Rod stepped back from their positions as joint managing directors and appointed Johnny Dean as chief executive officer. In their new roles as executive directors, Rod now concentrates on strategic priorities while Scott continues with his responsibility for capital expenditure and sales.
“It has worked very well,” said Scott Gordon. “Johnny has been with the company for almost 18 years so we very much knew what we were getting. He has run his own haulage before and was with us leading the harvesting side of the business and playing a lead role in the senior team.
“He is well respected and making a real difference on the operational side. It also creates its own opportunities, so with Johnny moving up we have appointed Scott Grant as head of harvesting. Scott has been with us for 20+ years and that has allowed him to progress.
“The CEO creation has been a key part of succession planning, allowing the development of other people in the company,” said Mr Gordon. “We have a new head of finance who has been with us nine months, and a new engineering manager who came on board in March.
“They are great examples of people who have come into the business with a wide variety of skills and fresh ideas and made a difference, building on what was already a successful business.
“As the saying goes, you don’t have to be bad to get better – and we want to keep building.”
