TIMBER OPPORTUNITIES KNOCK
There are challenges and opportunities presented by the timber market, BMJ talks to one merchant exploring the potential for strategic investment.
T
he UK timber market faced many challenges throughout 2023. Prices rose throughout 2022 and started to fall in early 2023. As the price of timber dropped, merchants were left with the unenviable task of having to devalue their stock he UK timber market faced many challenges throughout 2023.
The impact of high interest and mortgage rates also put the brakes on new build housing which has had a knock-on effect on timber orders.
James Beesley, commercial director at Liverpool-based independent builders merchant Beesley and Fildes, says: “Despite these difficulties, market shifts across the construction industry point to a brighter future for timber merchants. Prices are beginning to stabilise, the demand for renovation is holding its own and as this year progresses, research signals a potential uptick in new build housing. “The move towards more sustainable building is creating further opportunities. The Government’s recently released Timber in Construction Policy Roadmap aims to boost timber use in construction to help reduce emissions and reach net zero. This includes promoting the safe, sustainable use of timber as a construction material in homes and other buildings.”
The merchant has been investing into its facilities in response to market change and customer demand. In 2022, it ploughed £1.2m into its timber mill Widnes to create more efficiency and throughput for timber stock items.
Beesley adds: “In 2023, we had to carefully consider the impact of falling timber prices and industry challenges on our investment strategy. Rather than holding back, we opted to further enhance our services recognising the potential for growth in the year ahead. This has seen us invest £300,000 in a new timber treatment plant at our Chester branch. “Replacing an existing facility, the fully- automated plant can operate all year round and for the first time, enables us to treat timbers in green and brown from our Chester site. This means we can better service customers across Cheshire, Merseyside and Manchester as each region tends to have different design requirements.”
New avenues
He explains that the Beesley & Fildes investment is expected to also benefit other timber merchants across Cheshire and North Wales. “From our own experience and research, we realised that most have to travel out of the region – even as far as Manchester - to treat their timbers. Now, with this new investment, they have an option closer to home helping them to save time, money and carbon emissions.
Difficult trading conditions have had a negative impact on some of the timber merchants; insolvencies has been seen across the country, which have been driven by falling orders and cash flow difficulties. Beesley explains: “Although this is a sad and unfortunate situation, it can lead to opportunity.
February 2024
www.buildersmerchantsjournal.net
“Silva Timber Products is a case in point. The Widnes-based firm appointed administrators in October 2023 and ceased trading. Its product offer comprised a range of specialised timber, composite decking, cladding, timber fencing and roof shingles.
“As a business local to us, we identified synergies which could help both parties. We felt the company’s products could complement our own helping us to bolster our range. As a result, we have now acquired their stock and have recruited some of its team members to help further develop our timber offer through their expert knowledge. “These new products will be manufactured at our timber mill which already has the capacity and technology needed to produce them.”
Building resilience is important when up against a backdrop of ongoing economic uncertainty.
Beesley says: “There is still room for optimism across the timber merchant industry. As trading conditions continue to change, a willingness to adapt and an eye on the future will be key. Alongside potential challenges are opportunities to enhance timber products and services paving the way for profitable growth and sustainability.” BMJ
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