The international political and economic situation and increased competition from eastern European timber will make 2002 a testing time for American hardwoods in western Europe. That was the consensus at the American Hardwood Export Council‘s European convention in Dublin. However, there was also confidence in the longer term given projected growth in European temperate hardwood consumption and the prospects for developing sales of less widely used species, notably red oak, poplar/tulipwood and walnut.
It was also emphasised that, after several years of growth, Europe remains the US’s key hardwood export destination, with sales of lumber topping 800,000m³ last year and veneer US$180m.
Attendance at the conference underlined the significance of the market for the Americans, with a total of around 170 delegates. AHEC chairman Robert Owens, executive director Mike Snow and Bill Bomersheim, the US Department of Agriculture’s forest products representative, also jetted in for the event, which was hosted by AHEC European director David Venables and chaired by his predecessor Michael Buckley.
Besides the lively debate on certification, the conference comprised presentations on European market prospects, starting with a number-crunching overview by John Wadsworth of Intermark. In 2000, he said, American hardwood lumber sales in the EU reached a record 2.89 million m³, worth US$1.407bn. The first half of 2001 saw a fall of 13 %, but the projection was that lumber business would hold this level, giving sales for the year of 2.721 million m³.
US first half hardwood veneer sales to Europe slipped 3.8% and plywood 9.4%, giving forecast annual totals of US$206.6m and US$15.4m. But this compared with declines in softwood and structural panel exports to the EU of 25.2% and 26.4%. Hardwood log sales were up by 10.7%, with the annual total projected at US$253.2m.
Mr Wadsworth also stressed that the fortunes of American hardwoods differed markedly between the European countries, dividing the markets into diamonds, doldrums and dogs! Among the first, are Spain, Sweden and the UK, with lumber sales up between 1996 and 2000 around 63%, 100% and 20% respectively. The worst of the dogs, with sales hit by construction downturn and growth in imports from eastern Europe, was Germany. Sales in the four-year period fell from 125.6 million m³ to 77.3 million m³.
Following Mr Wadsworth’s presentation, conference delegates broke into national groups to discuss hardwood market prospects.
British delegates said that American suppliers would have to ‘work hard to stand still in 2002’. But they saw prospects for building sales into timber flooring and developing markets for a different range of species, notably walnut and poplar. Like other delegates, they reported consumers still largely indifferent to environmental issues.
The Irish also remarked that the international mood post-September 11 could put the brakes on their country’s dynamic economy. But GDP continued to rise at 5% and there were still some major development projects driving demand for hardwood.
In terms of fashion, Filip de Jaeger of the European Parquet Industry Federation, reported the fast growing European wood flooring sector tending more towards darker hardwoods. But Malte Hermann of the Danzer Group said that in veneer, the lighter woods, notably beech and birch, continued to hold sway.
Another guest speaker, Ed Pepke of the UN/ECE, urged delegates to bolster hardwood demand with more marketing and co-ordination of national and regional promotional campaigns to ‘increase wood culture’. And David Venables confirmed that AHEC Europe was continuing to make its contribution to this effort. ‘Our recent campaigns have targeted the architectural, specifier designer and manufacturing sectors,’ he said. ‘Our website has been a particular hit, with 10,000 publications requested on-line.’
He added that AHEC’s commissioning of the UK’s Building Research Establishment to test US ash, white and red oak and tulipwood to European structural standards, should also boost demand. To increase awareness of different species, AHEC had brought out its American Beauties brochure focusing on red oak, tulipwood and soft maple, and is set to publish a new Guide to Hardwood Lumber Grades soon.
‘We are also backing design competitions, including the Irish Joinery and UK Timber Industry Awards,’ said Mr Venables. ‘And more is lined up for 2002, including campaigns focusing on American hardwoods’ sustainability and highlighting their potential for specialist joinery.’
