TIMBER TALKING TIMBER
TROUGHS AND PEAKS The availability and pricing of timber has been volatile in recent years. Why? Well there are extenuating circumstances, as BMJ finds out.
T
he different parts of a tree offer varying levels of margin and profit for sawmills. The tallest section is crushed to pulp and made into paper or cardboard, while the middle area of a tree is used to create high demand products like decking, fencing, saw dust, chips and pellets. The lowest third of the tree contains the highest grade material, used for structural timber, and its availability has the potential to control construction output worldwide. In recent years, access to structural timber has fluctuated with more volatility than the industry has arguably ever experienced before. A plethora of unprecedented factors have had a seismic impact on the timber market, leading to unpredictable peaks and troughs in supply and demand. For tradespeople and builders who rely on timber for their projects, this has been a particularly challenging time. For merchants, however, it has been an opportunity to understand more about their timber proposition, how to improve customer communication and provide a higher quality of service.
Historic footprint
Robert William, category director – timber and panel products at Jewson Timber, says that timber is one of the most interesting products for merchants to work with. “At Jewson, our own history of supplying timber to the trades is extensive. It is still very much a focus within our business, particularly among our specialist branches. We put emphasis on having a high quality range of stock, that is selected around the needs of our customers, with specialist branches expanding on our core range. We aim to set new standards in terms of merchandising and point of sale material. On top of that, we invest significantly into training by our own timber support specialists to ensure we’re providing expertise on timber that our customers require in every area of the business – whether that’s in the yard, in the sales team or at management level,” he says. As in many sectors, the key to success in this area, though, is communication, William continues. Timber rises and falls in price, and
anyone working in the sector understands that global market conditions have the potential to impact its availability. He says: “When we’ve asked timber customers how we can help them, general feedback has been that they want to stay informed; knowing a potential price rise is coming means they can be clear with their customers on how long they can fix a price for, and understanding the availability of stock means they can adapt their project timelines with plenty of notice.”
Complex market
William says that Jewson works closely with supplier partners to gain insight into market conditions and to understand how the merchant can help to supply its customers most effectively. The current market is complex and the availability of structural timber is dictated by multiple factors. Typically harvested from forests and farms in north eastern Europe, weather in these countries dictates the quality and output of materials. If conditions are too cold or too wet, it’s a struggle for harvesters to source the high grade logs required for structural timber. Distribution then comes into play; with fuel prices changing depending on the geopolitical
April 2023
www.buildersmerchantsjournal.net
landscape, the price of shipping timber can increase significantly and with short notice. Some countries are willing to pay more for delivery, based on their needs at the time. “Last year, when the US housing market boomed exponentially, timber suppliers charged higher prices and housebuilders in the United States paid more for materials to meet demand. When this happens, there is less timber available globally and what is available is higher in price. The UK, for example, might experience gaps in its timber ranges, which has a knock on effect on tradespeople and the wider construction industry,” he explains.
Unprecedented obstacles “This ‘feast or famine’ cycle happens in the global timber market on a semi-regular basis – they’re the types of trends we can typically foresee, though we can’t necessarily control them. But when the cocktail of the pandemic, war in Europe and a rapidly escalating climate crisis comes into play, you begin to understand why those selling or working with timber have faced a greater struggle than usual.” It’s no secret that, with Covid-19, came a Continued on p23 _>
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