The French timber industry was hit hard by the domestic, European and wider international recessions. As a special report presented at the AGM of industry federation Le Commerce du Bois (LCB) showed, it’s been a tough five years. Producers, processors and distributors have faced multiple challenges across key markets; construction and renovation, joinery and furniture sectors. But, while no-one is saying the industry is completely out of the woods yet, there are now more positive indicators, albeit that growth, where it’s appearing, remains slow.

All that said, France remains one of Europe’s timber powerhouses, with a total forest area of 16 million ha. It’s still best known in the UK for its hardwood, notably oak, and it is one of Europe’s most important hardwood lumber producers. But softwood lumber actually accounts for 80% of industry output and despite fierce competition, we are among the five biggest European producers here too.

SOFTWOOD MARKET

Production of softwood logs is currently around 14 million m3, of which 46% is spruce and fi r, with the remainder principally maritime pine and Douglas fir . Total sawn lumber production exceeds 6.5 million m3, comprising 50% spruce and fir. The critical market for the French softwood industry is, of course, housing and it went through especially difficult times between 2011 and 2014. However there are particularly encouraging signs here of building momentum. Last year housing starts rose +1.8% to reach 350,000 units and the industry perspective this year is increasingly positive, with a further 4% acceleration in the first quarter.

Interestingly this slowdown of its main consumption market also seems to have prompted a strategic shift among French producers, which may have positive longterm repercussions. To offset the downturn, they have increasingly concentrated on higher added value products and sought out more dynamic markets. Evidence of this, perhaps, was the high profile of processed products at the recent Carrefour du Bois, from cladding, decking and flooring to structural and other engineered wood products.

Another noticeable effect of the market downturn, with potential positives for the domestic industry, has been a reduction in France’s lumber imports, down in value 20% between 2011 and 2015. At the same time, a 26% fall in log exports from 2013 to 2015 has relieved raw material supply pressure. French softwood sawmillers are also now reaping the rewards of recovery in the wider European market, with a 27% export rise last year to 760 000m3. Spain’s gradual upturn is particularly encouraging for producers as it remains their biggest foreign market, taking 31% of total French softwood exports.

The UK remains a challenge for the French softwood sector, despite its increasing focus on the market. It’s UK exports have increased 6,400% in four years, but the total of sawn softwood and softwood plywood, according to Timber Trends, is still only around 10,000m3 a year.

However, the recent overall softwood export trend looks durable, with a further 10% increase in the first quarter. The 26% fall in log exports from 2013-15 has also relieved pressure in raw material supply.

OAK’S POSITIVE OUTLOOK

Annual French hardwood log supply is 4.8 million m3, with oak the main species, followed by beech and poplar, while hardwood lumber production is currently 1.7 million m3 (29% oak).

After a market squeeze from 2011 and 2013, oak lumber exports rose 18% in 2015, and latest data shows impetus increasing, with a further 20% first quarter’s growth this year.

The UK remains by far French oak’s biggest market, with last year’s import volume up 34% to 55,000m3 (worth €27m). Sales to China and other main European markets, Belgium and Germany, are also growing.

Total French hardwood lumber exports last year were around 370,000m3, with 95% oak and beech. UK overall imports were 56,500m3, so 97% oak.

A major concern for French hardwood sawmills, however, has been raw materials supply, both in terms of volume and consistency. This has been a growing issue in recent years, principally due to oak log export levels, notably to China. However, the authorities have now acted, stipulating that 300,000m3 of oak logs per annum from public forests are processed in Europe and now introducing tougher oak phytosanitary treatment rules