Reading the financial pages currently, it feels more like the season to be wary than jolly. You’ve got something to dishearten everyone; the US sub-prime market-induced credit crunch, property prices on the brink and UK personal debt spiralling towards £1.5 trillion. It’s enough to make you forgo the turkey and head straight for the cooking brandy.
But, while there are some black headlines out there, there are more encouraging stories further down the page. One report tucked away by the media last week was that, despite rising fuel and producer prices, UK manufacturing is still faring well, with the Chartered Institute of Purchasing and Supply and Engineering Employers Federation predicting continuing growth in 2008. The latter also says that “investment intentions remain strong”. Meanwhile the OECD and PricewaterhouseCoopers predict slowdown for 2008, but not recession, and point to a 2009 bounceback.
Forecasts for housing and construction sectors are not uniformly doom-laden either. In some areas property prices continue to hold firm and the market overall is underpinned by the government drive to build three million new homes by 2020 and growing investment to boost the energy performance of existing stock. Developments around the 2012 Olympics will also push on regardless, with construction of facilities for the 2014 Glasgow Commonwealth Games hot on their heels.
The timber sector is not immune to belt tightening in the wider economy and continues to face its own supply and demand challenges. But its ‘fundamentals’ also look good. We have evidence of that this week, with reports of strong profit performance from James Latham, recruitment to fuel expansion at Donaldson Timber Engineering, and sales well ahead of budget at merchant Quality Timber.
We also have news of rises in membership at the Timber Trade and British Woodworking Federations, underlining underlying confidence in the business and the rising profile of timber in an increasingly environment and sustainability conscious market place.
So, all the best for 2008.
