Rises in timber prices are putting “signficant strain” on pallet and packaging manufacturers, says Timcon.
The higher costs are being felt particularly keenly because manufacturers are also coping with reduced demand, said executive secretary Stuart Hex.
According to the Pöyry Index, the price of imported kiln-dried timber has risen by 20% over the past nine months.
Pallet and packaging manufacturers have also become more reliant on home-grown timber but there are concerns that supply could tighten as the construction sector recovers.
“The cost of timber is by far the most important component in the cost structure for timber pallets and packaging so timber price escalation combined with weak product demand is extremely difficult to manage,” said Mr Hex.
For more on this, see the pallets and fencing market report in next week’s TTJ.
