70 | Country Focus: Germany
SUMMARY
■ The trend of record production levels and strong revenue increases reversed with the war in Ukraine
■ The key German construction sector has been under pressure
■ Exports of sawn softwood reached a new record of 11.1 million m3
in 2022
■ In the first half of 2023, production decreased by 6.8% compared to 2022
WEAKENS MARKETS CONSTRUCTION
After two exceptional years, the German sawmill and timber industry is facing challenges. With the domestic construction industry, the most important customer market is in crisis. As a result, companies are reducing production. Julia Möbus, managing director of the German Sawmill and Timber Industry Association (DeSH), explains the economic development in the industry and gives an outlook for the future
Above: Julia Möbus, managing director of DeSH PHOTO: DEUTSCHE SÄGE- UND HOLZINDUSTRIE BUNDESVERBAND EV
TTJ | November/December 2023 |
www.ttjonline.com
Since 2020, the German economy has been facing numerous challenges. While the markets were still struggling with the effects of the Covid-19 pandemic, and global supply chains were slowly recovering, Russia’s attack on Ukraine added another global event with consequences that persist to this day. While the German sawmill and timber industry faced exceptionally volatile market developments in 2021, the markets came under pressure in the past year. Due to high demand at home and abroad and dynamic price developments, 2021 saw record production levels and strong revenue increases. However, this trend, which continued into the early months of 2022, reversed with the war in Ukraine. With the beginning of 2022, the outlook for the sawn softwood market seemed positive. Increasing demand on domestic and international markets stimulated production. This changed in February. The overall economic climate changed, and its effects became apparent among sawn softwood producers from the second quarter onwards. Like in other industries, rapidly rising energy prices put pressure on companies. While power-generating companies benefitted from the energy market, many others faced significant cost increases. Additionally, the key market for the industry, the German construction sector,
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85
