The timber industry will continue to experience consolidation, vertical integration and blurring of the supply chain, traders have heard.
This was the message from risk underwriter Ben Hussell at a seminar organised for the industry at Warwick Castle by credit solutions company Coface UK.
Mr Hussell, of Coface UK, said agents and merchants are being squeezed by overcapacity, leading to insolvencies, as well as being affected by changes to the construction, furniture and home improvement/garden centre markets.
He suggested the industry can bolster its position by adding value to products, improving its margins and focusing on better customer relations, while also expanding into timber frame, garden products, decking and further structural and engineering applications.
Mr Hussell said factors potentially impacting the trade include China’s big demand for wood, technology changes, the need to promote sustainable building methods, changing public sector timber requirements and increasing emphasis on recycling.
