Over the past two to three years there has been a decline in traditional markets for temperate hardwood species generally.
Everyone is well-versed in the demise of the UK furniture market through consolidation, ceasing trading or off-shoring. The high cost of manufacturing here has shifted volume production overseas, especially to China and we are seeing rising imports year-on-year. A recent visit to the Manchester Furniture Show confirmed this continuing trend. Gut feeling was that probably 90% of the occasional furniture was being brought in from eastern Europe and the Far East through agents and importers. There was virtually no UK manufactured product. The only stable and perhaps growing market is for bespoke furniture but this is and will remain niche due its custom-made, high-value nature.
The shopfitting market has also been depressed for the past 18 months and shows little sign of picking up in the near future. Retail sales are at their lowest for 40 years and, in this climate, major shopfitting programmes are being put on hold, or even cancelled.
Temperate hardwood sales to the general joinery market are still buoyant with some large contracts placed. Here, as in other markets, we have seen a shift away from American temperate hardwoods to European hardwood supply.
Of the 40-plus species we currently offer in our portfolio at International Timber, the consumption of temperate hardwoods from the US and Canada has, at best, been static. However, significant growth in European temperate sales has emerged.
The opening up of eastern European sources of supply has greatly affected consumption of American temperates. Closer geographic proximity is one factor, but the sources of supply have also become well-established. They are no longer the new kids on the block with everything to prove. Prices are competitive, the product is abundant, and the quality is excellent.
Consumption patterns
Current consumption patterns for different species are interesting and fashion has its part to play. Oak is by far the most popular timber currently – whether American or European. It is enjoying a revival in the kitchen market with the design trend to modern rustic styles that combine old-fashioned nostalgia with a contemporary feel.
Oak (and beech) are always the top selling worktops and there is scarcely a manufacturer not offering a rustic style oak door in his portfolio. But flooring is where the main consumption lies. Mirroring the kitchen trend for some modern/old-fashioned charm, oak flooring has exploded in popularity, especially over the past 12 months. Rustic style oak is the key look for domestic and commercial interiors and this is driving consumption through the roof. European suppliers are having difficulty keeping up with the demand, especially for wider widths. A significant proportion of European oak stocks are being exported to China for production into real and engineered flooring, before returning to our markets for purchase.
Trend-wise, walnut is still very fashionable but remains largely a niche product. Cherry, very fashionable two years ago, is declining in popularity – probably because of price. High price is also keeping demand for maple low. Ash represents fantastic value and is a versatile timber but, until recently, struggled to get a foothold in the market. American tulipwood has grown steadily from a small base but has now reached its plateau. European lime has recently proved a popular mid-price, versatile construction timber. There is still reluctance to use red oak which 15 years ago was the prime species from the US. Perhaps with supply of American white oak becoming more difficult there is a chance that it can regain a good position in the UK.
Temperate species have not generally been associated with the environmental stigma attached to tropical timbers. However, this is changing and the demand for sustainability has increased and spread across all species, regardless of origin.
Demand for certified products is significantly dependent on the requirements now being determined by central government. Fulfilment of this demand is an area in which European supply has a lead over North American supply. North America has been slower to respond, in part due to the traditional structure of land ownership. Land-owning US producers who have invested in the certification process have needed to take a very long-term perspective and most have not seen a return yet.
Volumes have not yet reached a level that gives users the confidence of assured supply. It has tended to be for the species less in demand where supply has been possible. Only when government policy is finalised and then widely enforced will suppliers fully understand the impact on UK market demand.
In the meantime, the culture in our industry must be to make choices that influence strategy up and down the supply chain. How else will the 2012 Olympics be supplied with fully certified product?
