UK demand for timber and wood products is forecast to grow at between 1-2% over the next four years, according to a new report.
The UK Timber Distribution Market Development study, by Manchester-based Market & Business Development Ltd, says the underlying trend remains positive due to the good environmental image of timber and popularity of the “natural” look.
Strongest growth is anticipated during the middle of the period 2004-2008, while prices are not expected to fall significantly from existing low levels.
Timber conservatories are projected to experience the biggest rise in demand with a growth of 22%, followed by windows (16%) and doors/door frames (15%).
The market for builders’ carpentry and joinery is forecast to expand by 1-3%, reversing the downward trend of the past two years. Value-added products are set to see a buoyant time but price pressure in the commodity sector is likely to hinder real-term growth prospects.
Timber merchants continue to dominate sales of wood and semi-finished timber products, with an estimated 42% of the market in value terms. Wood sold directly to manufacturers and end users has grown to 29%, due to an increasing focus on semi-finished products, while builders’ merchants account for 15%, DIY outlets 6% and specialist merchants about 8%.
