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and a challenging sales situation, Germany remains one of the world’s leading timber industries and the largest producer of sawn wood in Europe. While international trade will continue to play a central role in the coming years, the importance of timber construction in Germany is growing. The proportion of houses built from wood has been increasing for years and stood at 22% in 2023. Politicians have recognised the potential for climate protection and have launched an initiative at federal level to increase the use of wood in construction. At the same time, the demand for living space is increasing, drawing attention to innovative solutions such as adding storeys and densification in urban areas. Wood will play a key role here in the coming years and will also contribute to a climate-friendly building stock as part of the necessary renovations.
Above: Production output was inconsistent in the first half of the year
Production output was inconsistent in the first half of the year. Reductions in the first quarter were almost offset by an increase in the second quarter. Overall, the trend points to little change in the current year and therefore it’s possible the bottom could have been reached. Slightly rising prices for softwood lumber and falling raw material costs support this scenario. Nevertheless, many uncertainties remain. A slow recovery in the construction industry is not expected until 2026. At the same time, foreign business is subject to many influencing factors, not least the equally weak construction industry in neighbouring European countries, China and the US.
Many challenges also remain for the German hardwood industry. The largely export-oriented companies had to make major production cuts last year. After foreign sales
slumped by around 30%, production was 12.4% lower than in 2022. While important domestic markets for hardwood lumber, such as the furniture industry and interior construction came under pressure, high raw material costs and low raw material availability led to competitive disadvantages on international markets.
There are signs of a slow recovery in exports in the first half of 2024, but this will only be reflected in production with a time lag. At the same time, it is becoming apparent that the forest damage of recent years was not limited to coniferous wood, but that deciduous wood is also severely affected. The availability of good quality logs is also becoming a problem for beech and oak due to more frequent drought damage and insect infestation.
Despite significant reductions in production
At the same time, the industry has to deal with increasing bureaucratisation and restrictive environmental and climate protection policies at both federal and EU level. With the EU Deforestation Regulation (EUDR), the industry is facing massive challenges throughout Europe, the consequences of which for the value chain are not yet foreseeable. The EU’s biodiversity and carbon reduction targets could also lead to a drastic reduction in the availability of logs in Europe. In addition, plans for restricting forest use and strict requirements for forest owners are being discussed at national level.
The results of the Federal Forest Inventory, which is carried out every 10 years and provides information on the condition of German forests, are a source of debate. While the overall timber stock remains at the 2012 level, the drought years with beetle infestation resulted in considerable stock losses in some regions, while at the same time timber stocks in southern Germany are at record levels. Given this background, the DeSH is not only campaigning for a reliable political framework but is also urging the mobilisation of timber stocks and rapid forest conversion in order to prevent further calamities and preserve the forest for sustainable timber use in the long term. ■
ABOUT DESH
The German Sawmill and Timber Industry Association (DeSH) has been representing the interests of the sawmill and timber industry at federal, state and European level for over 125 years. With their diverse products made from the renewable raw material wood, the 350 member companies of the DeSH form the link between the forest and wood processing through to timber construction. They are an essential part of the bioeconomy and key to the sustainable transformation of the economy and society. The DeSH stands for the sustainable processing and use of the raw material wood as a contribution to climate protection, employment and value creation for a sustainable business location in Germany. ■
www.ttjonline.com | November/December 2024 | TTJ
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