Dynasty – ‘a succession of the same line or family’ – is probably the best definition of the Howarth Timber Group Ltd, which is one of the largest timber businesses in the UK, with a combined turnover of £125m and more than 1,000 employees.
Nick Howarth clearly sees it as his job as managing director and that of his brother Andrew, as chairman, to keep the flame alight; to build a timber conglomerate in the traditional sense, as a strong member of the areas that it operates in. Howarths’ active membership of the BMF, BSI, BWF, FEI, IWSc, TTF, TRA & UKTFA stand testament to that.
Originally established in 1840 as Hudson & Co, Nick’s father, Peter Howarth, set the business onto its current course, buying out the other shareholders, setting up an importing business and expanding their merchant and roof truss manufacturing operations. The timber window and door business commenced in the mid-1980s.
Andrew and Nick, the sixth generation of Howarths within the business, joined after leaving university in the late 1970s. Then, with barely 10 years’ experience, they were thrown in at the deep end in 1988 when Peter Howarth died.
The following years have seen Howarths develop, as Nick explained: “We’re a major player in each of our sectors, particularly timber importing. The merchanting side has 23 sites and, while that’s small in comparison to the largest groups, it’s still significant. Most of those sites are spread along the M62 corridor, with three in the London area as well.
Business sectors
“There are four business sectors, all timber-based: importing, window manufacturing, timber engineering and merchanting. The role of the importer has changed with the arrival of shipper’s timber terminals. We are now the UK’s largest Russian timber importer, and add value by either machining or treating over half our timber imports.
“Arbordeck, our decking range, is also a large growth product within the importer business. I focus more on our manufacturing and merchanting, with Andrew looking after importing; however, we discuss and agree all major decisions.
“Each sector is a separate business with its own management team and business strategy. Our aim is to be successful in the markets we operate in; for the short to medium term I do not see us moving outside those market areas. We continually seek to improve within those markets.
“Being a vertically integrated timber products group we are very aware that we must avoid conflicts of interest between different parts of the group. Therefore we have a policy of minimising competing with our own customers, by avoiding trading with our customers’ customers. All transfer pricing between different parts of the group is done at open market prices. Hence, selling to our internal downstream customers is on the same terms as our external customers.”
The Howarth Windows and Doors business concentrates on softwood windows, doors and conservatories, supplying mainly smaller new build companies, who see the benefit of factory-finished, fully-glazed products. “It is very capital intensive and we’re heavily into lean manufacturing,” said Nick.
Reflecting the significance of the joinery business, Nick was president of the British Woodworking Federation from 2003-2005. “I enjoyed my term; it’s a successful, progressive federation,” he said
Timber engineering is another area that Howarth Timber is committed to. “In the north we have three roof truss plants, plus a Trus Joist I-beam distribution operation and a new timber frame factory based in Selby. Timber frame was identified as a growth area and in 2003 we acquired Marlows in Suffolk, which has given us a 16-acre site, a south-east location and a business that was already well established. There is good demand and it’s very specialised; supplying the major housebuilders requires very different skills.”
Environmental credentials
So what of the future for industry generally? “There’s been a swing back to timber, as people want a natural look; decking and flooring are good examples. The industry made a mistake letting in competitor products, by going for low prices. We need to keep promoting timber and it’s a great shame that the levy system failed.
“Wood. for good has been very successful and now we need to promote the benefits of timber through chain of custody and CPET. Our environmental credentials are very strong as the carbon emissions issue grows. We’ve all got the only constructional product that hasn’t gone up in price.”
With a huge business and many trade commitments, spare time is inevitably a scarce commodity, but Nick does have hobbies too. “I have a private pilot’s licence, scuba diving is a favourite pastime, and I’m seriously into underwater hockey.”