After a successful, and mainly profitable 2007, the European panel industry has seen a significant downturn in the market in 2008.
The much-discussed ‘collapse’ of the UK newbuild housing industry has obviously had its effect on the panel industry. But it should be borne in mind that there is still major infrastructure work in the pipeline. Often media reports on the housing downturn miss the fact that London’s Crossrail, hospitals, universities and other government-funded projects are still out there. The 2012 Olympics, although not massive in market percentage terms, are also a positive factor.
On the downside, increased costs for fuel, wood raw material, resin and just about everything else, with the double whammy of increased price competition in all its markets, have affected the whole European panel making industry badly.
That situation has to be addressed if some profitability is to be regained – price rises have to be pushed through by the panel manufacturers, in a united front, in the fourth quarter of this year and into 2009.
