Summary
• The market for wood fibre-based insulation is very strong in western Europe.
• Consumer, trade and architect awareness are vital to growing the market in the UK.
• The new Alliance for Sustainable Building Products should raise awareness.
• UK sales continue to grow in traditional markets, such as underlay, and new sectors including roof and wall refurbishment.
• There is real growth potential for wood fibre in the self-build market.
The growth of real ecological insulation products in western European markets over recent years has been rapid and continues, with new manufacturers, increased capacity and a raft of new and improved product solutions coming to market. Over 2.5 million m³ are used annually, of which more than 50% are wood fibre-based.
In the UK, growth has been slower due to lack of government support and effective legislation and the fact that only a small percentage of new house buyers have an input into what constitutes the fabric of their home.
In Germany, probably the most mature market for wood fibre insulation, TV advertising and huge trade promotion has led to ecological wood fibre becoming ‘life style’ products, which are frequently specified by home buyers. Nearly all major timber and builders merchants throughout mainland Europe stock an extensive range of flexible and rigid wood fibre insulation products for both new build and refurbishment projects.
The key market driver is the fact that many European consumers really understand natural wood fibre products and the way they actively work to counter climate change outside the home by improving the climate quality inside. Reliable protection from cold, heat and noise, together with true sustainability, improve the buildings’ energy efficiency and lead to healthier homes and major energy cost savings.
Consumer understanding
This consumer understanding, together with trade and architect awareness and knowledge, are vital to growing the market in the UK and requires considerable ongoing investment from manufacturing companies.
The recent Westminster launch of the new Alliance for Sustainable Building Products (ASBP) will certainly help the sector to communicate more effectively with government, legislative bodies and the architectural community.
Currently sales in the UK continue to grow both in established major markets, such as underlay used with wood and laminate flooring, and the newer sectors including timber frame systems, roof and wall refurbishment, self-build, social housing and commercial projects.
It is clear that the work of manufacturers and supply chain partners is bringing in specifications from architects and developers. With the UK market share of ecological insulation products currently less than 1% of the total insulation market, compared to over 5% in Europe there is much work still to do but for proactive manufacturers and supply chain partners there is a huge opportunity to grow a new business with good margins.
Product sourcing
Research shows that specifications for wood fibre insulation products are currently being lost due to contractors encountering product-sourcing difficulties and they often look to change the specification for an easier option.
Wood fibre insulation currently tends to be supplied via specialist ecological building material stockists and timber frame system manufacturers although, increasingly, timber merchants are supplying projects where full truckloads are required. To avoid the loss of hard won specifications it is vital that standard stock items are more readily available nationally, especially to fulfil smaller and more profitable orders.
With wood fibre producers being mainly European-based, supply chain partners can add both flexible and rigid products into their range, with short replacement times backed by excellent training, technical and marketing support. Often, complementary products can be sold alongside, giving stockists improved value and margins.
With a good market history developing, it is now easy to select the right stock profile to cover most applications. Flexible wood fibre batts, rigid square-edged and tongued and grooved boards for roofing and wall applications in a small number of thicknesses should form the basis of any stock holding. Other development opportunities include external boards as part of a direct render system, acoustic floor boards and new higher density insulation boards which provide lofts with a product that can be walked on.
It is clear that the major new private housebuilders will only embrace wood fibre products when legislation dictates, due to the added material cost. However, sales are being achieved where developments are deemed “eco” or to the highest Code for Sustainable Homes levels. In these cases wood fibre products tick all the boxes.
Focus for growth
Currently the focus for sales growth is concentrated across a number of sectors, with refurbishment projects being a particular target. Major energy savings can be achieved by effective refurbishment of an older building’s fabric and wood fibre insulation and boards are ideally suited for many projects from improving roof performance to solid wall insulation either internally or externally.
Timber frame is a great opportunity for sales across the range, which is often being supplied and used alongside I-joists or wall studs. School buildings, nursing homes and social housing are the key specification areas. Self-build is a market that has held up well in the current difficult economic climate and remains as large as the largest private housebuilder, although rather more fragmented. This is a sector that has become very aware of real ecological building materials and, with improved local availability of wood fibre products, has real growth potential.
With Ecobuild 2012 showcasing wood fibre products on manufacturer and supplier stands it is an excellent time for the timber trade to embrace a dynamic new market opportunity.
