TTJ: HOW WAS THE 2021 MARKET FOR TIMBER GARDEN PRODUCTS?
Gary Froggatt: We saw the market really accelerate – amazingly so – and particularly in March/April when demand for product was unprecedented and we probably had our strongest months. May was still trending above norm, then it started to peter out from those early strengths into a more traditional pattern, but still up on the previous year and significantly up on 2019.
Having had an incredibly strong lift off early in the season, which continued until the end of August as timber prices peaked, we then came to a very abrupt halt at the end of that month and we attribute this to the combination of adverse messaging of availability and peak pricing, as highlighted in the wider media throughout Q3.
I think what we saw was very symptomatic of the wider industry in that the softwood decking market in particular really fell off a cliff at the end of August 2021. Softwood decking is the economy, entry level product and probably the highest volume product so it is the most sensitive to price increase. Products that were more expensive, such as the hollow and solid composites, had different challenges but they were attracting different budget spend levels that weren’t as reactive to cost inflationary prices as the commodity product.
It wasn’t just one tale across the piste it was different structures of movement across the market based on the value of the product that was being traded.
TTJ: WHAT WERE YOUR BEST SELLING PRODUCTS IN 2021?
GF: Traditional softwood decking – the 32mm nominal deck board is our biggest [timber garden product] seller. But we also expanded the range because of supply being tight last year and we introduced a lot more patterns and sizes and saw strong demand for 150mm in both 32 nominal (28mm fin) and 38mm nominal (32mm fin) thickness.
The other best-seller was the sleeper range, for which we had our strongest year ever. We introduced the UC4 sleeper – an imported, kiln-dried radiata pine sleeper treated to UC4. There is no incising or additional processing – it is just the natural timber and it has been very well received.
We launched the UC4 sleepers on the back of the TTF ‘Timber you can trust’ and the TTF and Wood Protection Association ‘Make Sure it’s Use Class 4’ campaigns that promote the use of products that are fit for purpose. We promoted it internally and ran a customer campaign raising awareness of the use of UC4 treated timber.
We also introduced a half-size, 1.2m sleeper. It’s a handy size for customers to put in their cars if they are collecting and if they are making rectangular raised beds they don’t have to cut it and end seal it because they are already properly treated at both ends.
We put the UC4 sleeper out at a competitive price but we got to a point where we couldn’t get the containers in fast enough [to satisfy demand]. Ports were incurring delays in destuffing the containers and we had to divert stock down south to quieter ports in order to then move it into a treatment centre before going back up north again. It wasn’t our usual treatment centre but we worked with them very well.
I would describe it as a labyrinth of challenges, or a game of snakes and ladders – you slip down and climb back up again. There was the challenge of have we got enough stock to start with, then there was the impact of huge demand, then the challenge of trying to recover our stock position and then having to be very agile and using alternative supply chains.
It’s widely accepted in the industry that what took the heat out of the market was the price. The domestic consumer who used to pay £16.50 for a sleeper two years ago saw it go up to £28.50. It suddenly had reached a point where it was over 50% more expensive.
Unfortunately the volumes fell off swiftly, so in fact we ended up like many merchants with too much stock. That needed to be traded through to try and come into the end of the season in a better position, which we did by dropping prices – 15% off softwood decking, for example – and running promotions and special offers.
TTJ: DO YOU HAVE NEW PRODUCTS FOR 2022?
GF: We have a heavy duty double T&G timber section, which can be used for manufacturing sheds. It’s a loglap profile with a slightly round gradient on the outside face and the double T&G means the sections securely locate together. We trialled it last season but it’s new for this year.
As well as being suitable for shed manufacture, it is also ideal for garden retained walling, for building up borders and planters and structures in the garden. It is a very robust Scandinavian redwood and because it is used above ground it is treated to UC3, although it is also available for in direct ground contact when it is treated to UC4.
TTJ: HAVE YOU BENEFITED FROM THE INCREASED DEMAND FOR GARDEN OFFICES?
GF: Although we don’t actually manufacture cabins we do some back-to-back work and it was incredibly busy. I think some lead times for installers went out to 20 weeks.
We benefited from that because we encourage our customers to buy the components, which are up to 30% thicker, and make their own from better quality timber than the pre-manufactured mass-produced pre-pack sheds. For many years we’ve had a ‘build your own’ campaign. We sell studding, the 25×100 UC3-treated loglap, the UC3 T&G shiplap, the floor components and the roof components. We’re happy to give customers a design idea and we’ll cut the timbers and get everything ready for them.
TTJ: HOW HAS THE FENCING MARKET BEEN FOR YOU?
GF: Fencing is several categories for us. We have the more decorative fencing from eastern Europe through Grange and we also have the traditional lap panels and fencing components from UK sawmills. We have a comprehensive range of treated fencing components covering feather edge boards, arris rails, capping, palings and posts in all of the 34 branch multi-regional network we operate.
The sawmills were very busy and there were very long lead times on the product but because we have got strong supply chain relationships with multiple sawmills we were able to optimise them and keep product flowing well.
Most fencing mills have been struggling to build up winter stock because the demand is very strong and we have already seen high winds this year. I think fencing will be challenging again this year.
TTJ: HAVE YOU EXPERIENCED AN INCREASE IN ONLINE TRADING?
GF: We saw internet orders climb incredibly strongly. Like many other trade sellers, over the last two years we have found the proliferation of customers placing orders on the internet was higher than ever before.
We offer live stock levels on the system so you can see exactly whether it is in or not. There is a very strong communication process – we don’t just order and forget – there is contact right through up to delivery.
We offer home delivery and click and collect and that rose by over 600%.
We have invested heavily into internet development and online digital integration over the last three years – and probably more in the last year than in the previous four – and we have a new website, which goes live during this April (www.howarth-timber.co.uk). It promises much richer content and better user interaction.
TTJ: WHAT WAS YOUR REACTION TO WINNING THE INAUGURAL TTJ GARDEN PRODUCTS SUPPLIER OF THE YEAR AWARD?
GF: It was a fantastic honour and utterly unexpected. I think perhaps it was due to the fact we embraced the use of UC4, the campaign behind it and that we integrated it into an omni-channel marketing campaign. Plus we did this quickly and in a difficult supply market.
It was a real achievement. All our branches put a lot of commitment into landscaping – it is a really important category for us, both the hardscape and the timber, softer side.
TTJ: WHAT ARE YOUR EXPECTATIONS FOR 2022?
GF: We have seen some very good, strong early orders for composite decking. Our Trex brand has a strong order book. Last year there was severe shortage in shipments but that position has completely reversed and we have an incredibly strong supply chain of Trex and customers will not be waiting for long periods.
We have also adopted two other suppliers for decking and now have three ranges of composite decking where we only had one before. And we have now got four key sizes of softwood decking where we only used to have the one or two.
So we have got a greater depth and range of stock options for the customer. In fact, there has probably never been a greater range of options in traditional softwood and composite decking in general.
Because of the increase in softwood prices last year, the gap between the lower end composites and the softwood products was closed and I think perhaps that gap is going to reappear this year.
A lot of composites have increased in price and softwood prices have dropped back 15-20% from peak last year. So, customers should expect substantially lower entry level prices going into the new 2022 season than what they were in the peak of last year.
We have dropped our softwood decking prices by 15-20% and that is because the Swedish sawmills have dropped their prices to us. Whether that cycle will repeat again, if it’s all demand driven or not, remains to be seen. The stay at home and invest in the garden thinking process was there in 2020 and 2021 – nobody knows if it will be there in 2022.
Many people will have already invested in their garden but there are many others who haven’t and who don’t want to spend their money on holidaying abroad yet. It could still be a good season by historical standards – but perhaps not as strong as in the last two years.
Our hope would be that our investment in products and in servicing that demand is rewarded with strong sales that the market delivers.
Our approach is simple: carry good stock levels across best-selling ranges, and price and promote competitively. Sell the right product for the job and ensure we have knowledgeable enthusiastic staff available to look after our customers’ needs.
