Austria’s timber industry is one of the world’s biggest – with around 1,350 companies and more than 26,000 employees.
A large proportion of the companies (about 1,020) are sawmills; the remaining businesses are in timber construction as well as in the furniture, board and ski industry.
Austria’s sawmill industry ranks fifth among international softwood lumber producers (around 9.5 million m3 per year).
During a recent industry press conference – the International Day of Wood at Klagenfurt Messe in August – some latest statistics were shared by Austrian timber industry executives Herbert Jöbstl, president of the Austrian Sawmill Industry, and Carl-Erik Torgersen, president of the Austrian Timber Trade.
Mr Jöbstl looked at the current situation on the round and sawn timber markets.
Austrian sawmill statistics
“In the first half of 2018 the Austrian sawmill industry was able to close its lumber production in the same period of the previous year, with growth of 8%,” said Mr Jöbstl.
“Thus, for the third time in a row, production is expected to rise by a few percentage points until the end of the year. The good forecasts and framework conditions will also strengthen the investment climate.”
He said renowned architects had discovered wood as a building material for themselves and demand for timber was high.
“Spectacular wooden buildings are currently being constructed all over the world – mostly using Austrian know-how,” he said.
Softwood exports
Austria’s sawmill sector mainly consists of small-and medium-sized enterprises. However, the eight largest companies generate half of the industry’s total production volume, while its 40 largest companies account for almost 90%.
About 60% of the total sawnwood production is designated for export, with 98% of the total production being sawn softwood, mainly spruce and fir.
Softwood exports reached 5.5 million m3 in 2017 – the same level is predicted in 2018. Hardwood exports totalled 140,000m3 in 2017, with a forecast of 150,000m3 on 2018.
Softwood exports to the UK totalled 24,000m3, with a value of US$11.8m.
Italy was the largest export market with 2.1 million m3, with Germany another big destination, taking 487,000m3, worth US$242.5m.
Lumber exports developed positively in the first two quarters – up 6%. Particularly noteworthy is the US market, where again significant volumes are now being accommodated.
Although the outlook for sales in the Austrian sawmill industry is very positive, orders will hardly increase in the third quarter.
Since January 2018, roundwood prices have been steadily declining in central Europe as a whole, which is not least attributable to the oversupply of roundwood caused by wind thunderstorms and bark beetle infestation.
As a result of poor supply in early 2018 and regional supply uncertainty, companies in the sawmill industry had to resort to imports in order to keep their production running at a high level.
Sawn price rises
Sawn timber prices have risen since January 2018 due to high demand. Likewise, the further processed products show a constantly high volume of sales since the beginning of the year. The prices for wood chips and sawdust have been at a stable level since mid-2016.
The Austrian sawmill industry is endeavouring, together with all partners within the added value chain, to solve the current situation of record amounts of beetle infested wood in Lower and Upper Austria. The enormous supply pressure from the affected areas poses great challenges for individual mills and their employees.
Meanwhile, the timber trade is expecting decent business in Germany in the autumn and the order books of the woodworking industry are well filled.
On the purchasing side, only oak has problems, with demand still far greater than the supply. For all other types of wood there is supply to cover the demand.
In 2017, the Austrian timber industry increased its production volume by 2.2% to €7.87bn.
“Wood is very much in vogue and we are satisfied with the overall result,” said Dr Ing Erich Wiesner, chairman of the Association of the Wood Industry.
“The sustainable use of wood makes climate policy sense,” he said, adding that wood’s properties made it fit for many purposes.
The export quota in 2017 amounted to approximately 70% with a total volume of €5.7bn. This represents an increase of 4.2% over the previous year.
The wood construction sector recorded a 3.3% growth in production, especially wooden windows and doors and glued components.
There are positive economic expectations for Austrian furniture components for the coming months, while the Austrian ski industry is achieving an export quota of over 80%.
Product portfolio expansion
“Many sawmills have achieved an increase in value creation and an expansion of the product portfolio, added Mr Jöbstl.
“After years of reduction, the sawmill industry is showing a clear upward trend for the third year in a row.
“The good forecasts and framework conditions will also strengthen the investment climate. Investments are made both in the depth of added value and in the expansion of drying capacities.”
But, added Dr Erlfried Taurer, deputy chairman of the Association of the Wood Industry, securing enough raw material was a challenge.
“Unfortunately, scarcity of raw materials is not an option for an internationally highly competitive timber industry, so together with the support of forestry experts and forest owners, we must continue to work on resource mobilisation,” he said.
“With the political will, we are on the way to becoming a flagship industry.”
Woodbox puts wood construction on the agenda
ProHolz Austria’s innovative WOODBOX exhibition has put wood firmly in front of influential EU policy makers.
The mobile exhibition WOODBOX, which promotes the sustainability of timber construction – featuring 50 exemplary modern wooden buildings – was located at the agricultural summit in Schloss Hof.
Austria’s minister of agriculture Elisabeth Kostinger and EU agriculture commissioner Phil Hogan visited the exhibition on September 25.
The exhibition shows the utilisation potentials of wood in construction in Europe, highlighting the possibilities of urban, multi-storey construction projects.
“Building with wood becomes an ecological alternative for the cities of tomorrow,” proHolz said.
