For too long now, there has been a perception in some circles that the Welsh forest industry is of little economic significance. That looks set to be challenged by the forthcoming publication of a new study of the industry undertaken by Jaakko Pöyry Consulting. The study will provide the most accurate indication to date of the true value of forestry and wood products to the Welsh economy, and is expected to show an industry gene-rating revenues of around £2bn per year and providing in excess of 16,000 full-time jobs. The focus of the study is not confined to the current state of the industry though; it will also make recommendations regarding its future development.
Timber production in Wales is projected to increase substantially in the coming years and the Welsh Assembly is committed to developing a world class forest industry. The work undertaken by Jaakko Pöyry will provide the basis for a strategy to guide its development.
Industry structure
The Welsh sawmilling sector is structured somewhat differently from that of Scotland, with an abundance of small and medium-size businesses milling both hardwoods and softwoods, alongside a small number of larger operators processing high volumes of softwood.
Welsh softwood is widely used for construction, carcassing, fencing, palletwood and packaging material. BSW Timber plc is one company that offers a full range of such products, through its mill at Newbridge-on-Wye in Powys. Spruce accounts for around 90% of the timber processed at the mill, with the balance made up of larch, Douglas fir and pine.
BSW is looking to invest in its Newbridge-on-Wye mill as part of the group’s long-term investment plans. Commenting on the future prospects for the mill and the timber sector in Wales, Alex Brownlie, head of operations for BSW in Wales, said: “Our investment plans are all about responding to market changes and developing a business that can compete successfully against other world class wood processing companies.
“Timber is the only renewable building material and, given the reasonably strong growth forecasts for the construction and fencing sectors and the reported need for a substantial growth in new build housing stock in the private and social housing sector, we are cautiously optimistic about the market prospects in the medium term.”
Investment is key
Mr Brownlie went on to add: “Given market developments, investment is the key to successful development of our business in Newbridge-on-Wye in order to ensure long-term viability – investment in operational efficiencies, in delivering products in line with market needs, product innovation, customer service, people development and continuous improvement in all aspects of the business. The first phases of proposed investment will focus on site infrastructure improvement and increasing our secondary processing capability in kilning, machining and treatment.”
Another major processor of Welsh softwood is Charles Ransford & Son. Established in the 1920s, Ransford operates from a 38-acre site close to the Welsh border in rural Shropshire and has grown into one of the largest suppliers of timber to the fencing industry in the UK. Much of the timber processed at its mill is Douglas fir or larch, which has led to regular requests to supply structural grades for timber framed buildings. Recognising that there has been a dramatic increase in environmental noise pollution from highways, railways and general industry in recent years, the company has also taken British-grown timber and turned it into effective noise reduction screens for use in noise prone environments.
As far as hardwood markets are concerned, there continues to be good demand for quality Welsh-grown timber of all species, except poplar. Oak is particularly sought after for use in construction and joinery as well as furniture and fencing. However, it is important to bear in mind the significant difference in price between the highest quality hardwoods and the rest. In the case of traditional flooring, overall demand exceeds supply of Welsh-grown material but the development of end grain flooring presents an ideal opportunity to add value to small diameter roundwood.
Some of the highest quality softwood and hardwood in Wales can be found on privately-owned estates, particularly where the woodland is managed under continuous cover. Talis Kalnars, the leading authority on continuous cover in Wales, notes that this system is well suited to meet the needs of businesses that require timber that has been selected with end use in mind.
