For some years, housing construction has been driving the wood industry, pushing hardwood and softwood lumber production to unprecedented levels. Europe, becoming the main overall producer, has been shipping large quantities to North America as well as Asia.
Now that the building sector is facing difficulties in the US and in the main European markets, the timber industry has to shift its focus and adapt to new market conditions.
Large quantities of lumber will still be supplied to the building industries, but other markets will increase more rapidly due to developing customer demand. With UK housing prices still among the most expensive of Europe and a more difficult market, households will be focusing on maintaining and improving their investment. Interior and exterior renovation will become a solution for securing the original investment.
So how can wood products respond to this scenario? With other raw material prices increasing over the last two years, wood products at the moment could be considered undervalued and a very economical answer to the customer. At the same time, householders have been shown to favour using wood interior products thanks to the warm atmosphere they create, but they will also want to differentiate their homes from others. Even if oak remains the leading species used for flooring, other varieties and timber product types are set to increase their share of interior product sales by providing price options that suit a consumer market with less spending power. Smaller floorboards and the use of more affordable beech, for instance, could be part of the solution.
With a lower turnover in the housing market, customers will also be more focused on making creative and innovative additions and improvements to their home. Sales of wooden verandas and treated exterior timber products, such as decking and other garden structures and furniture, will continue to increase.
With a range of species without equivalent in Europe and a diversified wood industry, France is prepared to face up to the demanding economic climate and supply wood trading companies and manufacturers with products suited to the new market conditions.
