The merger of the Timber Trade Federation (TTF) and TRADA as Timber Development UK (TDUK) creates a trade body encompassing the wood supply chain from sawmill to specifier. And according to chief executive David Hopkins, with structural developments in the industry and wider economy, there’s never been such an important time to have such sector-wide representation. Nor, given opportunities for timber as the low carbon renewable manufacturing and construction material, has it ever had such potential to make a market impact – with the fundamental aim of the new body, as the brand states, being timber development.
The need for greater co-ordination and collaboration between trade organisations isn’t a new topic on the agenda. Faced with the greater size and cohesion of bodies in rival materials sectors and an ever more sophisticated and competitive market place, there’s been appreciation for some time of its need to act and speak more as one to business and political decision makers. Hence the creation of the Confederation of Timber Industries (CTI) umbrella organisation and establishment of an All Party Parliamentary Group for the sector.
But recently, says Mr Hopkins, the pressure to create a supply chain-wide body has further intensified.
“One increasingly important factor has been increased consolidation within the timber trade itself,” he said. “Companies have been strengthening their position by buying backwards and forwards in the supply chain and the trend has been given added momentum by the growing involvement of bigger companies, private equity and other finance groups. Seeing multiple small businesses operating in the sector, some acting closely as partners, they clearly recognise opportunities to integrate, consolidate and invest.”
The sector’s trade bodies, he added, needed to respond accordingly.
“With this sort of market evolution, it doesn’t make sense for the trade representation to stay the same. To continue to support the interests of our entire membership, we need to reflect a changing business.”
Brexit, said Mr Hopkins, seems set to add impetus to the consolidating tendency.
“While creating opportunities, it will lead for many to a more demanding, challenging trading environment,’ he said. “This will no doubt create further drivers for development of bigger businesses and integrated groups, leaving some smaller companies wondering how they can compete.”
Covid-19 also played a part in the thinking behind the TTF and TRADA coming together.
“The timber sector has coped well through the pandemic, with strong sales and healthy prices,” said Mr Hopkins. “But one longer term impact is expected to be yet more pressure for consolidation and we felt we had to react.”
The TTF and TRADA had been discussing forming a closer relationship in more detail since 2018, when Mr Hopkins joined the TRADA board.
“We’ve worked well together for a long time across a range of areas, collaborating on seminars, conferences and other events and activities,” he said. “The TTF also part funds the TRADA university engagement programme, linking the industry to academia.” The decision to push forward with a merger was made last year at the outset of the health crisis.
“At a meeting of our two boards, the discussion centred on the fact that we didn’t know what life was going to look like the other side of the pandemic,” said Mr Hopkins. “So, did we wait and see what happens in the market, with the possibility of ultimately facing dwindling reserves of support, or did we move forward and join organisations to create the framework of a proper, end-to-end supply chain organisation? We decided to take those proactive steps, to create a positive future for all.”
The two bodies see their operations dovetailing.
“The TTF’s route to market is from sawmiller and importer, through distributor to the builder, manufacturer and other end users,” said Mr Hopkins. “TRADA takes the opposite perspective; from the view of the specifier who’s designing buildings or products, looking back up the supply chain to identify the right products and what’s available. We don’t intend to lose any of our respective services, but to integrate and build bridges between them, to ensure they are mutually beneficial and that all members benefit from synergies.”
Broad opportunities are already identified.
“For instance, the TTF undertakes quality assurance, standards, code of practice and similar initiatives for members, such as our Chinese plywood standards campaign, Responsible Purchasing Policy and timber treatment campaign. Now we can communicate these through the supply chain to the specifier,” said Mr Hopkins. “Likewise we can act as a communication channel for specifiers’ requirements back to suppliers. We can increase dialogue between each point of the supply chain to help drive change and improvement.”
Opportunities for TDUK are also identified in training and information provision.
“TRADA has a long established reputation providing training activities, publications and other materials for architects, designers and engineers in specifying and using timber and wood products. As a single, joined-up organisation we can ensure supply-side members are carrying the right, complementary information and are able to meet customers’ technical requirements,” said Mr Hopkins.
The deal between TRADA and the TTF was sealed late February. It is a full merger, and involves no financial transaction, although funds from both bodies will be invested in integrating operations and brand development. While the two will continue to operate under their existing names until the new brand is established and “services and outputs are integrated under a common management plan”, all their combined membership of more than 1,500 become part of the TDUK.
The new organisation says it will continue to have a positive relationship with BM TRADA Certification, the private company, now part of the international Element Group, which undertakes testing, inspection certification and other technical work for TRADA.
“We see Element Group as a key strategic partner. In particular, our sector will be facing a significant change in bureaucracy post- Brexit, notably the obligation on international suppliers for UK CA marking, and we will need strong support to help navigate that,” said Mr Hopkins.
“In turn, we can potentially be a useful entry point for provision of BM TRADA services to companies supplying the UK market. The full nature of our relationship will be announced in the summer.”
TDUK is set to be headquartered in London and, while no announcements have been made yet on personnel, Mr Hopkins said it would be looking to add expertise in specific areas.
“We may consider recruiting more experience in construction, from building and contracting; the people who buy the product and install it,” he said.
The new organisation also plans, not just to carry over the TTF and TRADA’s collaboration with other timber and associated sector bodies, but to consolidate it.
It sees the role of the CTI continuing to grow, comprising the TDUK, Structural Timber Association, Timber Decking and Cladding Association and Wood Protection Association.
“The CTI is a great forum for interaction between associations and other stakeholders, focused on promoting and defending the interests of companies involved in timber and wood product manufacture,” said Mr Hopkins. “In fact it’s about to launch a new campaign ‘Net Zero Now!’, underlining how the timber sector can help the UK meet the government’s Future Home Standard. And thanks must go to STA chief executive Andrew Carpenter and chair Alex Goodfellow for continuing to drive this and the wider CTI while the TTF and TRADA have been occupied with developing the TDUK.”
Ongoing co-operation is seen on other projects. That includes the Fire Hub Phase 2 online fire engineering information resource, led by Swedish Wood, with the participation of the British Woodworking Federation, TDUK and others.
Another is the Timber Accelerator Hub, an initiative driven by the Alliance for Sustainable Building Products, working with Swedish Wood, the STA and TDUK to facilitate engagement between insurance, timber and timber construction sectors. It is funded by the Laudes foundation, which backs projects tackling climate crisis and inequality.
“We also see potential for strengthening links with other trade organisations abroad, perhaps through an international partners body,” said Mr Hopkins.
TDUK, he maintained, also has potential to strengthen the timber sector’s political lobbying.
“If you have a vested interest in selling more timber, then the government will consider your input on legislation affecting timber in that light,” said Mr Hopkins. “But if you have members, as the TDUK has, who are materially agnostic saying the same thing, it can strengthen your cause.”
So far the response to TDUK’s launch from both TTF and TRADA members has been “universally positive”.
“It reflects awareness as an industry that we need to keep pushing forward to realise the potential that timber can bring to the design and construction markets,” said Mr Hopkins. “TDUK draws on the background of the TTF, with its mission to “grow the use of wood”, and on the heritage of TRADA in research and innovation. However, as the name states, it’s not the intention to be solely a trade association in the traditional defensive stance, but a fully-fledged timber market development agency.”
