The timber industry has experienced a “renaissance” over the last 12-18 months, according to credit insurer Coface UK’s latest sector analysis.

It says the UK trade has been buoyed by a slowdown in softwood prices, falling interest rates, a booming construction sector and a relatively strong pound. These factors have contributed to improved order books, profitability and a general feel-good factor.

However, Coface warns the sector remains under-capitalised and without future investment any downturn could have a higher than expected effect on insolvency statistics.

It also says timber manufacturing output, particularly furniture, has dropped due to retailers switching to eastern European suppliers.