It was heartening to hear this week that a leading timber company is ‘constrained by capacity rather than orders’. The prophets of economic doom keep harping on that it’s time to batten down hatches and tighten belts, but Palgrave Brown, it seems, can’t make the trussed rafters and MDF mouldings fast enough. Consequently it’s pumping in the investment to ensure it can.
Managing director Richard Fawcett acknowledged that, in the middle of global slowdown, the UK economy could not ‘defy gravity’ for ever. But he still hoped that it could ‘avoid the worst effects of recession’. In the meantime, Palgrave Brown continues to experience buoyant demand across a range of products.
Travis Perkins‘ results this week, showing profits up 18% and timber sales still strong, were also encouraging, as were comments to TTJ from a smaller merchant. His business has just had its best August ever. ‘No-one can be sure how long it will last, but we’re still busy,’ he said. ‘We’re hearing about problems in the City, but there’ve been times when it was doing well and we’ve struggled. We just have to plough on and make the most of current demand.’
According to the CBI magazine Business Voice, the UK housing and consumer market may not remain insulated from difficulties elsewhere in the economy but, judging by their current continuing health, it seems that they will suffer later and less severely. It also points out that in the US, despite the sharper manufacturing downturn, consumer spending so far has held up remarkably well.
