The UK wood machinery market, post Ligna, is a market of ‘amazing’ contrasts, in the words of one equipment manufacturer. Demand from the office furniture and shop-fitting sectors is described as buoyant, while the domestic furniture market seems almost deathly quiet, according to most contacts.
There are reports that lacquer sales by some coatings manufacturers have declined by up to 30% compared with last year and, unfortunately, there does not appear to have been a corresponding increase in sales of water-based products. Volumes in the wood coatings market have dipped because solvent users are cutting back the amounts they use in order to comply with the requirements of the Environmental Protection Act, it is believed.
Alarming rate
The UK’s industrial wood finish market is therefore shrinking at an alarming rate, not least because the strong pound is encouraging more finished goods into the UK at knock-down prices. The majority of these products are not coming from Europe, as might be expected, but from places like Poland and the Far East, where labour costs can be the equivalent of £2 per week, according to one supplier to the industry.
‘It is difficult to compete,’ he said. ‘From our perspective the wood finishing side is not as it was.’
He said the industry had reached an ‘unrealistic peak’ during the period of building society windfalls, when furniture sales were artificially inflated. ‘There is still quite a bit going on but the market has come down – and a little further than people expected,’ he said.
The fact is that UK-based companies producing bath panels, toilet seats and similar products can now ship these products in from the Far East at a fraction of the cost of making them in Britain.
A manufacturer of finishing equipment said he had observed the trend, which he believes has become particularly evident in the pine market: ‘Most of the pine people are looking at other products now and one company, probably the fourth or fifth biggest in the UK, has diversified into wooden furniture products other than pine and has now dropped “pine” from the company title,’ he said.
Wood finishing machinery manufacturers and other suppliers to the furniture industry are still struggling to contend with environmental issues, according to a number of contacts. Solvent users are turning to more high-solids coatings and, thanks primarily to advances by finish manufacturers, they are achieving the same results with less material.
Firms operating in the European wood finishing industry are about to be forced down a similar route to those in the UK, as strict environmental emission controls come into play on the Continent. Having enjoyed the advantage of significantly lower costs than their UK counterparts, these firms will have to learn to live in a gradually more genuinely competitive market over the next few years.
Disadvantaged
Indeed, some people believe that some of these companies may even find themselves at a distinct disadvantage against their UK competitors, who have already overcome inevitable ‘teething-troubles’ with their new systems and are far more comfortable operating under the stricter regime: ‘As they are struggling to meet the regs, we will have had 10 years’ experience of operating in these conditions,’ said one contact.
Many of the UK’s wood equipment manufacturers and coatings producers have developed a high level of expertise in UV and water-based technologies – expertise which is likely to be highly sought-after by Continental firms facing fresh EPA-type demands.
As well as refining conventional UV processes, UK companies have also made great strides in developing water-based processes used in conjunction with UV and high-solid solvent systems. Getting the balance right when using these individual technologies in combination has not been an easy or cheap process, said the contact, who thinks this factor will provide an increasing advantage for UK firms: ‘I don’t know whether the European countries appreciate just what has evolved in the UK market,’ he said. ‘We have come up with a lot of very novel finishing systems and combination systems to reduce solvent emissions.’
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“I don’t know whether the European countries appreciate just what has evolved in the UK market” |
European exports of finished goods to the UK are likely to diminish as the regulations begin to bite, some believe, though products from elsewhere will continue to create pressure in the market.
There have been ‘horror stories’ circulating in the industry about some of the deals done on equipment sales at Ligna, particularly in areas where buyers have a greater choice, such as CNC machinery. Despite these stories, however, contributors who attended the show report that they came away happy. One equipment dealer said he had spotted a ‘fantastic’ finishing system at the show, which he believes will become very important to his company over the next 12 months.
Some in the industry feel that the Ligna exhibition has now become too big for its own good and one contact suggested it should combine with Interzum to make it easier to attend both.
‘Why is it that the Italians, who are accused of being so disorganised, can put two shows together very nicely? And the same with the Americans in Atlanta,’ he added. ‘Everybody is fed up about it but nothing seems to happen.’
New products
Few radically-new products have been unveiled for the wood finishing market recently but new versions of existing technologies are appearing almost continuously. There are now many types of UV-variant systems and water-based systems have taken a ‘huge step forward’ in the last year, it is reported.
When the technology was first introduced to furniture manufacturers, it simply wasn’t capable of providing the quality of finish demanded, which scared many people off. Now though, even makers of reproduction furniture, with their heightened aesthetic values, are able to achieve the effect they desire using water-based finishing systems.
While the UK woodfinishing market has now been in decline for the best part of two years, one contact said he sees signs that things may finally be levelling off. While some larger furniture producers have undoubtedly found it more convenient to ship pre-finished components into the UK, rather than set up local manufacturing units, a significant customer-base of many smaller, bespoke companies remains, he said. These com-panies produce limited numbers of a relatively short list of products and are therefore unable to outsource so readily.
Healthy demand
Another reason for optimism in the wood finishing industry is very healthy demand from the construction sector for pre-finished components. In fact, this area of business is described as one of the few areas where growth is occurring.
Traditionally painted onsite by decorators, wooden components such as doors and windows were the first to be offered to the trade in a pre-finished format. Such was the popularity of the concept, the range of pre-finished options can now extend to skirting, architrave and even staircases.
‘Builders have wised up to the fact that if they get something part pre-finished, then the cost of finishing onsite is greatly reduced,’ said a contact.
The DIY sheds and new-build construction firms in particular are also said to be showing most interest in developing a market for wall-panelling. In new-build projects, such products are regarded as giving builders an opportunity to add more value to a house. If wall-panelling does replace decking as the ‘next big thing’, a pre-finished format is sure to be a popular option.
