An economic survey of UK wood producers was “less bleak than expected”, according to the chief executive of the Confederation of Forest Industries (ConFor).
“Though with expectations so low, that is little comfort,” added Stuart Goodall. “A clear majority of companies expect things to get worse still.”
The survey, undertaken in January, found unit costs were up significantly for wood processing businesses and forest owners, with activity and sales generally in decline and confidence low.
ConFor said a few companies had reported some recovery in volume sales, but prices are low and, generally, are not predicted to recover soon.
Input costs have risen 20% for most companies, while a third expect to make a financial loss for the year. A small minority predict increased business activity over the next 12 months. Most firms have reduced working hours and nearly half have laid off staff.
The pilot survey by ConFor and the Scottish Forest Industries Cluster, in partnership with the UK Forest Products Association and the Wood Panel Industries Federation, will now be conducted monthly.
