Former banker David Lennan finds himself in a key position at a pivotal moment in the timber trade and joinery sector’s history. The Timber Trade Federation (TTF) and the British Woodworking Federation (BWF), two of the great UK wood trade bodies, both over 100 years old, are now locked onto a path to merger (see page 14). The outcome will be a new organisation, the Confederation of Timber Industries (CTI) ushering in a new era in UK timber sector representation.
It’s been Mr Lennan’s job as interim TTF chief executive to co-ordinate this seismic shift.
After starting the job last autumn with a mandate to bring the industry closer together, Mr Lennan has been on a whistle-stop tour of the timber trade and found companies to be "efficiently-organised slick businesses with capable people". They also, he said, have an appetite for the merger.
He is no stranger to consolidation among industry federations – having overseen just such a change in the agricultural supplies sector.
Seven years ago he masterminded the creation of the Agricultural Industries Confederation, which brought a number of agricultural industry bodies together representing the seed, grain and fertiliser sectors.
It was a one-year process to launch this new face of modern commercial agriculture. "It’s been hugely successful and has done a good lobbying job," said Mr Lennan.
He thinks the Confederation of Timber Industries will have a similar impact for the wood sector.
"I think the appetite for this is spot on and the people I have talked to in the industry over the last three months are very on board for the future," he said.
Now that the TTF and BWF boards have said "yes" and member consultation meetings have been held around the UK, a launch is being organised for June. Branding for the CTI is being formulated and the TTF and BWF teams discussing how they will work together. The search for a permanent chief executive of the CTI has also begun.
Mr Lennan sees potential for the timber sector through the new body to raise its game and have the sort of unity and influence enjoyed by competitor industries, such as steel and concrete.
"Timber is fragmented and supply chains are joined up at a trading level only," he said. "So one of the biggest things for the CTI is understanding the quality standards in the supply chain. There are some terrific qualities, with some major industries involved. For instance, every piece of timber that comes into the UK has a chain of custody identifying the timber and its sourcing." The aim, he said, should be to move the perception of timber and wood from being craft-based to engineering-based, to become "products of real choice in construction, not just for end-users, but also specifiers and local authorities."
"We need a 360° perspective of the supply chain to know what’s going on, which includes pulp, paper and biomass," he said, adding that forestry management and planting should also be understood and lobbied as one industry.
"These are the things the CTI will tackle."
The complete picture
Mr Lennan sees the new body working alongside government and European organisations to create investment opportunities for training. And he believes that by linking R&D projects and manifestos from across the sectors, a real picture of the industry would start to emerge. This, in turn, will strengthen is influence with decisionmakers and help promote members’ interests.
"We should be creating an environment where people can be successful and more profitable and seize opportunities."
Mr Lennan said economic forecasts and population growth estimates – a 10 million increase is projected in the UK population by 2030 – point to further opportunities for the timber industry to expand. Higher labour costs overseas will result in more onshoring of manufacturing and the need for UK skills development. There could be scope to increase production for export too, and contribute to deficit reduction.
Scope for synergies
The nuts and bolts of the merger involve the identities of the TTF and BWF remaining for the foreseeable future under the umbrella of the CTI.
Mr Lennan added that, while the CTI will be "one of the leanest of organisations", there were no cost-cutting reasons for the merger.
"This exercise is not about cost-cutting but creating efficiencies and dovetailing services," he said. "Both organisations are thinly staffed in any case [the TTF has seven staff, the BWF eight, with both based at London’s Building Centre]. There will be no rationalisation here."
Areas where he identifies scope for efficiencies include communications. "For example, the TTF and BWF both do budget statements and both try and see government ministers and run parliamentary receptions," he said. "We both sponsor education projects and R&D, and are both on a lot of external committees. This is duplicated effort. All these things will continue, but on a better basis."
Mr Lennan sees the focus of the CTI as what needs to be done to improve the prospects of the timber industry.
"It’s far better to combine information and resources when we get to see ministers or are travelling to Europe, for example," he said. "They hear the same thing and the manifestos of a lot of organisations."
Fragmented resources and brief meetings with these ministers often meant efforts were not particularly productive.
"We need to build deeper meaningful connections and greater understanding of the role timber can play in a carbon-free economy."
Mr Lennan said the sort of organisation the CTI would become means it would have significant clout, to the extent that the chief executive should be sitting on the board of a UK investment bank or green bank.
Meanwhile, the prospect of the organisation growing larger in the future and other wood-based organisations joining is seen as a realistic prospect.
At a recent industry event TTF president Stephen King said other associations were watching the merger proceedings very closely. There have already been meetings with other organisations in the sector.
"We are setting up the CTI as a nonthreatening organisation," added Mr Lennan. "We want to attract others."
