On May 19, 2009, for the first time in decades, the president of France issued a series of announcements regarding the French wood industry.

First, said President Sarkozy, it should increase its usage of the domestic forest resource. The French wood industry has been using only 60% of the annual increment of the forest for the past decades, but at the same time has increased timber consumption and imports. By 2012, annual harvesting should increase by 12 million m³, reaching a maximum increase of 21 million m³ in 2020. And even with this level of felling, the French forest will continue to grow.

The president also announced that the building industry should increase wood consumption ten-fold. The construction sector already has to use a minimum of 2dcm³ of wood per m² built and this now rises to 20dcm³/m², taking into account all wood products in a building.

The government also set major targets for wood fuel use, to help meet its requirements under the UN Kyoto protocol on climate change and it will give the sector a boost by doubling the price paid for green energy.

Finally, said the president, a €100m strategic fund will be set up to help increase timber sector competitiveness and boost production capacity in line with increased forest productivity.

Challenges facing the industry

Despite the uncertain economic environment, the French wood industry, led by its many family businesses, is already responding to these ambitious targets. Companies have been investing in new capacity, new technology and product development. But there are still challenges ahead.

Increasing harvesting by 20 million m³ will mean extracting timber from the forest in a more industrial way. The sawmills need an ongoing, reliable supply to produce competitive products and run new technology efficiently. The issue will be to get France’s thousands of private forest owners involved in that common goal.

Developing wood energy on the scale envisaged may also have an impact on raw material supply for the panel and paper industries. New wood-burning capacity must therefore be based on a global strategy, taking into account local availability and industry’s existing needs.

In terms of developing the timber market to absorb our increased output, currently wood is enjoying a trendy image in France. For the past six years, timber construction has been growing at 8% annually and wood’s sustainability credentials and image as a warm material have helped it gain market share for interior products too. But we should remember that wood is not the only material and that trends can change.

We also have to be aware that in France, as in other developed countries, customers have mixed feelings about the wood industry. They may perceive wood itself as fashionable and eco-friendly, but at the same time, they often attribute deforestation to the timber sector and competitor material producers use this fear to discredit our material. In urban areas, in particular, people also see their local forest primarily as an environmental and leisure resource and object to harvesting. So we must continue to communicate the full sustainable story of the industry, from forest to market place. This will require greater use of labelling and greater emphasis on environmental certification right the way through the production process to distribution, so end users are informed and their concerns dealt with.

A bright future

But if we succeed in these areas, we believe there is a bright future for wood products. In the years ahead, the market will not only be driven by price but also by increasing environmental concerns and legislation. Public contracts and buildings projects will be affected a great deal by efforts to cut carbon emissions. This will lead to more local materials procurement and the development of more energy-efficient housing models. And increasingly, the whole product life cycle will be taken into account by architects and specifiers, again boosting use of local resources, notably locally-produced wood.

Price will still be a key factor in the household products market but, particularly at the mid to high end, environmental sustainability, which could include local sourcing, will play an increasing role in purchasing decisions. Combined with the realisation in the current downturn of the importance of retaining local industry for jobs, this could lead, for example, to more local furniture manufacture. It could also further increase demand for French sawn timber and reduce wood imports.

Tropical wood will still be used, but concerns over illegal logging, boosted by pressure from environmental NGOs, will lead to growing demand for alternatives. And, as they increase their use of wood modification processes, French and European producers will be able to meet it, with local species processed to match the characteristics of tropical varieties.

Finally, more wood will be used in French buildings, driven both by the new legislation and environmental awareness of architects and designers. Because we are not traditionally a wood building country, this may not always be visible. But hidden from view will be more structural lumber, helping to cut buildings’ costs and carbon footprint through its energy-saving characteristics.