In 10 years, China has risen from seventh to second biggest roundwood buyer, with imports hitting 134 million m3 last year. The government says its plantation programme will lead to timber self-sufficiency by 2015. But others predict it won’t keep up and that the gap between home-grown output and consumption may rise to 150 million m3 a year.
Export statistics from the wood processing and finished products sectors are just as awe-inspiring. From 1997 to 2005, China’s overseas forest products sales went from US$3.6bn to US$17.2bn. Exports of plywood rose ten-fold and furniture at 19% a year.
But while China poses a colossal competitive challenge to the rest of the industrialised world, as our feature highlights, it’s also a huge market opportunity. With the Chinese “middle class” now estimated to exceed the population of Europe, manufactured goods consumption is soaring. While China overtook Italy as the biggest furniture exporter last year, its manufacturers sold far more at home. The market for building products is rocketing too, with housing starts estimated at between 14 and 22 million a year.
Productivity and innovation are vital to enable the west to compete with and sell to China. But the consensus is that the absolute key is a highly skilled and educated workforce. The Chinese themselves are pumping billions into training and it is clear that we have to match them and more.
Which leads us, fortuitously, to the launch this week of the call for entries for the TTJ Career Development Award 2006. Like virtually every other industry in th UK, the timber sector is selling to ever more sophisticated customers in an increasingly globalised economy. As our other special feature highlights, only businesses with a well-trained, flexible workforce can keep pace. Hopefully our Award goes a little way to keeping that issue to the fore.
