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reduced sawing volumes, prices for sawn softwood are rising further.


Raw material supply became increasingly difficult in 2024. The high log availability of the calamity years continues to decline. With 61.1 million m3


, the harvest volume


remained above the long-term average but was well below the record levels of previous years. Damaged wood accounted for around 45% of total harvesting, while the supply of fresh wood remained tight. As a result, prices for spruce and other softwoods increased further. Pine and larch regained importance, accounting again for around 20% of production. The change in species composition underlines the need for long- term planning and investment in processing capacity and product diversification. Foreign trade recorded slight declines. Exports of sawn softwood were below the previous year’s level, mainly due to weak demand in key markets. While deliveries to the US and China fell sharply, European trade showed a mixed picture.


Strong declines in exports to France and Italy were offset by increases to Poland and the Netherlands. Exports to the UK fell slightly to around 412,000m3


, placing


the country sixth among Germany’s most important export markets. Despite this downward trend, foreign trade remains a central stabilising factor for the industry. Against the backdrop of challenging international conditions, exports continued to decline in the first half of 2025. By July, exports to the UK were around 4% lower than in the previous year.


The hardwood industry also experienced cautious stabilisation in 2024. Domestic demand remained weak, particularly in the furniture and interior design sectors, while exports showed the first signs of recovery. Positive impulses were initially limited to sales, while production continued to decline. Beech sawn timber recorded a decrease of 10.6%, while oak fell by only 2.9%. In the first half of 2025, hardwood production increased moderately. However, the availability of high-quality logs remains limited, as drought and insect damage increasingly affect hardwood species and log exports continue to rise. For the domestic market, the construction sector continues to be a key problem area. The weak economic environment, high interest rates and complex approval procedures are dampening demand. The number of residential building permits fell to around 215,000 in 2024 – the lowest level in over a decade. However, approval figures up to July 2025 indicate a gradual stabilisation. Policymakers have also recognised the problem: with the “Bau-Turbo” Act adopted in mid-2025, planning and approval procedures are to be accelerated, densification promoted and serial construction strengthened. The


Above: Julia Möbus is managing director of DeSH


DeSH welcomes this step but sees it only as a beginning. Without reliable funding, clear political direction and simplified building regulations, recovery in the construction sector will remain fragile. The government must now demonstrate that it can turn its announcements into concrete and effective measures.


The same applies to economic and industrial policy. At the beginning of 2025, the new CDU-SPD government initiated a political reorientation. The coalition agreement includes important impulses – from faster housing construction and reduced bureaucracy to sustainable forestry and industrial policy. These objectives represent a step in the right direction. In practice, however, implementation has so far fallen short of expectations. Business and industry are still waiting for concrete reforms that provide planning certainty and strengthen investment.


At European level, the EU Deforestation Regulation remains a key issue. The DeSH has repeatedly pointed out that the regulation, in its current form, creates disproportionate bureaucracy for countries with sustainable forestry practices. The association therefore welcomes the recent decision by the European Commission to postpone the introduction of the EUDR by one year. This extension offers


the opportunity to revise the regulation in a more practical way, to introduce a zero- risk category for countries with sustainable forestry, and to avoid disproportionate burdens on European companies. To balance effective environmental protection with economic competitiveness, other EU measures must also be adjusted. Regulations such as the Nature Restoration Law from Brussels increase pressure on forestry and risk further restricting roundwood availability. The recently published results of the Forest Development and Timber Supply Modelling (WEHAM) in Germany underline the need for active forest management. Climate-resilient forest conversion and timber use must go hand-in- hand. Against this background, the DeSH is calling for a national resource strategy that links forest adaptation, climate protection and economic competitiveness.


The German sawmill and timber industry looks to 2026 with mixed expectations. Although a slow recovery of the domestic economy is anticipated, many uncertainties remain. High costs, a weak construction sector and increasing regulatory density are among the key challenges. In addition, the announcement of new US tariffs of 10% on construction timber imports is adding pressure to global markets. The US is the most important non-European export destination for German construction timber – one in every five exported cubic metres is shipped there. The tariffs, which came into force in mid-October 2025, threaten competitiveness and place additional strain on transatlantic trade relations.


In the long term, however, the transformation towards a climate-neutral economy offers significant opportunities. With sustainable, regionally produced products, technological innovation and efficient resource use, the industry is making an essential contribution to climate protection, employment and value creation. Whether policymakers and markets succeed in unlocking this potential will be decisive for the sector’s continued success. ■


Above: The German sawmill and timber industry looks to 2026 with mixed expectations www.ttjonline.com | November/December 2025 | TTJ


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