Leading industry speakers and economic commentators at the annual event acknowledged that some markets still face tough economic conditions. But they said others are showing increasing signs of accelerating out of recession, and the wider market now looks increasingly set for a period of greater stability and growth.
The ISC is run jointly by the European Timber Trade Federation (ETTF) and European Organisation of Sawmillers and this year was co-hosted and organised by the UK Timber Trade Federation (TTF) and Confor. It was attended by 150 delegates from timber companies and industry bodies from across Europe and preceded by a fact-finding tour of the Scottish softwood sector. This included visits to the BSW and James Jones & Sons sawmills at Fort William and Lockerbie, and the athletes’ village site being developed by timber frame specialist Mactaggart & Mickel for the 2014 Glasgow Commonwealth Games.
Speakers said some EU countries remained in recession, with construction still stagnant or even contracting. Elsewhere, however, building and other key softwood markets, including repair, maintenance and improvement, are getting back on track and the industry is returning to growth.
According to Ed Pepke, senior timber trade and policy analyst of the European Forest Institute, 19 out of 27 EU countries now forecast housing start increases and in the US they are expected to rise to an annual rate of 1.6 million in 2015.
Mark Brinkmeyer of the Idaho Forest Group also forecast that US housing could avoid an over-heated "super-cycle recovery". In addition, US softwood producers should benefit from growth in repair and maintenance of America’s 110 million ageing homes.
Looking at the wider economic picture, Yorkshire Bank chief economist Tom Vosa said global GDP growth would remain below trend at 2.9% this year, but this still added US$2.5trn to the international economy.
ETTF secretary-general André de Boer discussed the implementation and impact to date of the anti-illegal wood EU Timber Regulation. He said that early evidence suggested the Regulation was steering buyers towards products like engineered softwood in place of tropical softwood species that were considered higher risk of illegality.
TTF chief executive John White said that the Edinburgh event had proved a "huge success and provided invaluable market insight".
"Business may still be tough for much of the sector, but there was a definite sense of collective optimism," he said.
ISC delegates can access presentations at www.isc2013.co.uk
For more on the ISC, see next week’s TTJ.
