Our long history as an international trading nation now presents our sector with opportunities abroad on a scale perhaps unimaginable 10 years ago. The need for sustainable buildings, and the leadership shown by British companies in developing the domestic markets for timber frame technologies and related wood products, could bring spectacular growth to enterprising companies willing to think ahead, and to move rapidly to capture new markets.
The BRE’s international director, Dr Vahik Enjily, is a firm believer in the business potential: “The opportunities for timber in Europe are higher than they have ever been, though any potential harmonisation of building regulations is still very far into the future. The main opportunities exist in the eastern part of Europe where the timber building sector is not yet so developed. Companies that are clever and shrewd enough to make the investment will benefit.
“Similarly, outside Europe, those companies that are able to invest in producing, for example, engineered wood products in China for the Chinese construction market could reckon on perhaps 10% annual growth for that business. Steel and concrete already have a heavy presence in China, as do our main civil engineering and construction companies. The timber sector is a long way behind.”
Growth opportunities
JELD-WEN sees significant growth opportunities in Europe, having opened its European Research & Development Centre in Britain earlier this year. “We have a strong technical base and team in the UK, ready to expand its responsibilities, and with a proven working relationship with our North American R&D,” said general manager Ian Purkis.
“The much trumpeted European Standards for Joinery products remain a key element in bringing the true Single Market for Construction Products to reality. Although significant progress has been made towards harmonised test methods, the key Product Standards continue to be delayed, causing frustration and cost to those who want to see the market open to real competition. The JELD-WEN position is that we will encourage and persuade all involved to make
the best possible progress whilst recognising that we may still have a long wait. Of greater concern is the possible pressure to bring additional requirements of questionable value into the regulations, restricting opportunities for true competition,” he added.
Concern over regulation and competitiveness pervades the UK construction sector. “UK government must enable a workable regulatory environment in order to keep British firms competitive, when compared to their counterparts in Europe and in the wider global market,” said Simon Storer, external affairs director of the Construction Products Association. “For example, government must work with the construction industry to ensure that high energy prices or regulations intended to tackle climate change do not inadvertently make British industry uncompetitive, thereby encouraging these products to be manufactured abroad.”
Professional marketing
What does it take to succeed in marketing products in Europe? Geoff Rhodes, European marketing & sales director of Medite, knows the answer: “Selling in Europe, even with a familiar brand like Medite, requires aggressive and professional marketing. To be successful you need to be in tune with the sentiments in each national market place and to be able to handle cost-effectively the production and distribution of marketing materials in the five main European languages. The market place in Europe for timber and wood products is driven by offering customers the right product for the job, rather than being price-centred. Outlets also tend to hold a broader range of products: there is certainly a strong and steady Europe-wide demand for MDF.”
Anders Ek, international marketing director at SCA Timber Supply, agrees that strong marketing is a necessity. “Wood is in competition with other materials in all applications,” he said. “For many of our customers, solid wood products constitute just a fraction of the wide range of offerings available to them. In order to get our customers – and, more importantly, their customers – to choose the solid wood option, the products must not only be well adapted to their purpose, but their distinctive advantages must also be well known.”
Of all the qualities needed to capitalise on the opportunities available, vision is the key. “The timber sector is not very speculative,” said Dr Enjily. “It needs to look 10-15 years ahead and ask what will happen when the housebuilding markets of the UK are saturated. We can already see increased competition entering the British market particularly from Germany. British timber frame and timber engineering companies will have to think laterally to better the competition both here and abroad.”
