Encouraging signs

12 January 2013


Uncertainty remains but there are encouraging signs within the economy that the timber industry should take heart from, says Iain McIlwee, chief executive of the British Woodworking Federation

What does 2013 hold in store? The start of this year feels reminiscent of the same time last year with "uncertainty" the watchword. Realistically it's no surprise that more of the same is likely when we consider the economic environment in which we are working. We must, however, be encouraged that the economy is forecast to grow, albeit by a modest 1.1%.

Private sector house building is set to return to growth, which should be a shot in the arm for many firms (for 60% of our members this is their key market). The housing shortage is gathering increased political interest and a turnaround in 2013 could pave the way for double digit growth in 2014 and 2015.

We are also encouraged by recent reports that timber windows are regaining market share against competitive materials.

The domestic refurb market is always more difficult to call. That's all about confidence, and we have seen this dissolve throughout 2012. Within BWF's membership those businesses anticipating declines in the next 12 months doubled between our Q1 and Q3 surveys. The other key issue for refurb is the Green Deal, and given its stuttering start it seems unlikely that bullish government figures for the initiative will become reality, although we shouldn't dismiss it altogether.

The next generation PFI, dubbed PF2, may provide some renewed investment, and the education market should be boosted by finance for free schools and academies. But commercial and public sector markets are not likely to change.

There is a tidal wave of legislative and regulatory change set to hit the woodworking sector this year too. The big three are the EU Timber Regulation in March, Building Regulations in April and October and the Construction Products Regulations (with their CE marking requirements) in July.

We were pleased to see the announcement just before Christmas on consequential improvements not being mandated as this would undoubtedly have acted as a market inhibitor. However, while we now have guidance on how Part K of the Building Regulations will change in 2013, we will need to keep a close eye on the Part L changes that could have serious ramifications for window and door manufacturers.

CE marking will remain a big subject within the industry as inevitably more of our products will have to embrace these requirements. It is vital that joinery manufacturers focus not just on the technical considerations, but also on ensuring clients and specifiers are informed and are not confused by change. This is an important area of work for us at BWF, but we urge all companies to engage with their customers on these key changes.

At the BWF we will continue to call for the Treasury to give us a clearer picture of growth strategy and to lobby for genuine evidence of how the government will help us build our way out of recession. It's frustrating to see such a scattergun approach to construction still.

One thing I can offer in the way of certainty is that the BWF can help. Our helpline dealt with over 2,000 phone calls in 2012, and with each enquiry we grow our knowledge. Interest in fire doors rocketed, with traffic to the BWF-CERTIFIRE website increasing by 1,000%. And now the BWF Stair Scheme includes close to 70% of UK manufacture, we are starting to see new opportunities for timber stairs. More than 80 joinery businesses became new members of the BWF in 2012, and with each member we get stronger.

Together with other members of the Timber Industry Accord and with the Construction Products Association, we will continue to fight for better recognition of the benefits of timber and a healthier business environment for woodworking companies in the future.

Iain McIlwee