There’s a body of opinion in the trade which feels all the talk of economic upturn is premature. Certainly this week we’ve had further evidence that we’re not out of the woods yet. Finnforest’s announcement that it is closing its Tilbury operation has come as a serious blow to those scouring the horizon for economic silver linings.
Other traders also tell us that sales have dipped again after a few healthier months over the summer and that they’re battening down the hatches for another harsh winter.
Perhaps the contributors to our latest hardwood report give the clearest picture of the market situation in that there isn’t a clear picture. The most brutally honest said he was “flummoxed” by latest developments, with a “mega” sales month in July followed by a tailing off ever since.
The consensus is that the economy generally and construction in particular are still in a delicate state, so it doesn’t take much to persuade jittery customers to put purchases on hold.
But it isn’t all grim and depressing out there. Timber businesses are still expressing faith in the longer term – for one, James Jones & Sons, which has started up its £22m new sawmill weeks ahead of schedule.
And there are positive underlying trends in the market. We’ve just produced the latest edition of our supplement Timber & Sustainable Building and had no shortage of innovative wood-based construction projects to profile, or architects and builders ready to enthuse about using more wood in the future.
Also boding well, the Wood Awards, the annual contest for the use of wood in construction, interiors and furniture, had another very healthy crop of superb entries.
In announcing Whitbread’s interims on Tuesday chief executive Alan Parker also said its Premier Inn division is planning 75 new hotels – and at least half will be in its construction system of choice, timber frame.
So to borrow a David Cameron Tory conference sound bite, we may be facing a tough climb, but the view from the summit will be worth it.
