A discussion panel of four delegates illustrated how two key factors – the windstorm of December 1999 and the exchange rate – had affected different countries and sectors.
Eric Lacey of Averitt Hardwoods International, said the windstorm hadn’t had an impact on his business because it does not work much in beech. The weak euro, however, ‘has kept competition out for Europe, but hasn’t helped my business at all’.
And, he added, ‘Europe doesn’t seem to have much US hardwood in stock and if they don’t have it, they can’t sell it’.
Andreas von Moeller, from the German agent Jacob Jürgensen International GmbH, presented the other side of the coin. ‘The storm damage had and still has dramatic influence,’ he said, ‘but European hardwoods are not competing with US hardwoods, so the US is not affected by this.’
As for the the weak euro, Mr von Moeller cited hard maple as an example of a species for which demand existed but which was unaffordable: ‘prices for hard maple are rising,’ he said. ‘Multiply that with the exchange rate and it is unaffordable because the buyers can’t pass the costs on.’
Demand in Germany has fallen, he said, because housebuilding is down and there are problems in the furniture industry which has invested heavily in countries such as Poland where wages are much lower. Contracting out is very high and remanufacturing is carried out in eastern Europe before being sent back to German ‘assembly plants’. ‘There are no German furniture factories where lumber goes in one end and furniture comes out the other,’ Mr von Moeller said.
This situation is mirrored in the Netherlands, reported Jack Van den Berg of Holland Timber BV. The weak euro is having a significant impact in the Benelux countries, he said, and many furniture plants in Belgium are relocating to Romania and other east European countries.
Jean-Pierre Chevreton of French joinery giant Lapeyre said the windstorm had boosted sales this year because of the increase in repair work. ‘It also offers good opportunities for the anticipated purchase in Europe of beech and oak at good prices,’ he said. ‘However, the impact will be felt in the future when there will be a shortage of logs, particularly beech and softwood.’
As for the exchange rate, margins had been reduced, Mr Chevreton said, and the currency issue had pushed producers to find beech and oak in countries ‘where there is less risk with the currency’.
