Nearly 10% of respondents to ConFor’s latest survey said this year’s financial performance could threaten the future of their businesses.
ConFor said the short-term future for many forestry and wood-using industries looks bleak, with its new survey reporting a significant reduction in investment in light of the current economic turmoil.
Despite the pessimism over market prospects over the next few months, the survey also points out that there is still confidence in the longer-term future of the sector.
One of the sectors that the survey shows is bucking the trend is woodfuel, with nearly half of respondents reporting increased activity – and none showing a decline.
The survey, by ConFor and the Scottish Forest Industries Cluster, is the first in a monthly series designed to gauge the impact of the economic downturn on the domestic wood-producing sector.
Stuart Goodall, chief executive of ConFor, said that, although the decline in business confidence appeared to be slowing, few companies expected to increase sales in the coming months.
“That said, nearly half of businesses with investment plans are continuing, reflecting greater confidence in the medium to longer-term future of the sector,” he added.
