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attractive than felling it for timber. “Some parcels of timber and chestnut are going to chip because cutting it to length, peeling it and pointing it is labour intensive,” he said. And the return on labour-demanding chestnut was less than on a treated softwood post, he added.
In terms of treated softwood, he was concerned that in-ground posts were still sold without the necessary UC4 treatment. Some years ago, he bought an incising machine to improve timber’s uptake of preservative and offered incising as a specialised service. Now, however, he incises all posts unless the customer specifies otherwise. In another change, the posts are now incised to about 30cm above ground level because as fencing timber has become smoother, some customers do not like the rougher look of incising.
As autumn took hold fencing demand slowed. While one contractor said business was quieter, the enquiries he was receiving were from previous customers for jobs that were “extremely substantial”. Although sales always tail off after
summer, a supplier found the early days of autumn quieter than usual. “We normally see a rally, and given we had good weather, people didn’t come in to buy,” he said. And now as winter approaches people are worried about energy bills, food inflation and Christmas expenditure.
“In the UK we are good at talking ourselves into gloom but it’s hard to see there’s enough positive to outweigh the negative,” he said. And with tax rises a possibility in the chancellor’s autumn statement in November, consumer confidence, which impacts on business confidence, could be rattled.
“The government has an uphill battle to convince people we are heading into better times. Until there is more calm on the global scene it won’t pick up. We are making money, and we should be able to keep our heads above water, but we can’t make significant plans for investment,” he said.
As winter approaches, the fencing sector will start building stocks for spring next year. The quieter months may also allow fencing manufacturers to take advantage of lower prices on timber as sawmills may want to shift loads in December.
Demand is expected to remain much the same next year, unless winter storms sweep through and generate more work. And, of course, it is not just strong winds that can change the market dynamics; if the UK has a wet winter harvesting, timber supply could be affected. ■
PALLET SECTOR FACES MULTIPLE PRESSURES
Pallet wood supply has slowed, but at the same time the pre-Christmas boost for pallets has not materialised, says TIMCON
Ongoing high pressure on the market for timber is affecting the wooden packaging and pallet sector in the UK and Europe. High costs for raw materials are continuing to impact
sawmill production, reducing the availability of pallet wood – however, product prices remain low in the face of slack demand. The expected Christmas uplift in demand for pallets hadn’t materialised by mid-October and the pallet pooling sector was quieter than usual across most markets.
Meanwhile, US trade tariffs, stubbornly high prices of
energy and other inputs, and geopolitical upheaval – including the Ukraine war and ongoing tensions in the Middle East – continue to create uncertainty and affect confidence in the market.
UK supply chains, including construction, continue to drive reuse, according to the latest independent market report commissioned by TIMCON and the Forestry Commission. The 2024 UK Wood Pallets & Packaging Market show
that, during 2024, an estimated 53.9 million wooden pallets were inspected and repaired in the UK market, close to the 54.1 million estimate the previous year. Manufacture for new pallets rose 11%, from 41.7 million in 2023 to 46.3 million in 20 4. TIMCON president John Dye said: “It’s encouraging
to see another year of strong reuse, which is a well- established and major part of businesses’ strategies in supply chains from the fast-moving consumer goods (FMCG) and drinks sectors to pharmaceuticals and construction. Reuse of these essential assets makes companies more efficient and, at a time when sustainability-focused legislation is rolling out in the
UK, the EU, and beyond, it boosts their environmental performance, too.
“This is the 10th year TIMCON has jointly commissioned this study alongside the Forestry Commission, giving our members invaluable insights into how their industry is developing and providing vital data to policymakers on how reuse has continued to evolve in this business,” said Mr Dye. “Wood continues to be the material of choice for pallets and packaging because of its continuous renewability, flexibility, and recyclability – not to mention its durability, relative economy, and all-round sustainability.”
The annual market report is based on a survey of TIMCON members, who are estimated to account for between 70-80% of the UK market overall. The figures were presented to delegates at TIMCON’s AGM at the Westminster Hotel in London, by Guy Watt of John Clegg Consulting, who carried out the study. The survey also found that respondents consider the
sourcing and retention of good-quality staff to be the most important factor that will impact on their business in the year ahead, the same as in the previous year’s study. This was followed by increasing costs and inflation (including in areas such as wages and National Insurance contributions); strong competition; general economic uncertainty; and difficulties in the availability and price of timber. TIMCON has continued to engage with the government
to progress proposals for a UK reuse incentive initiative for wooden pallets and packaging. Meanwhile, the industry awaits the definitive announcement on the postponement of EUDR rules. ■
www.ttjonline.com | November/December 2025 | TTJ
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