Recent data from Timber Development UK reveals a marked decline in timber imports for early 2024, compounded by stabilising prices.
- Timber imports in Q1 2024 decreased by 6.2% compared to the previous year, with March recording the steepest drop.
- Hardwood plywood imports bucked the trend, showing a slight year-on-year increase.
- Price levels for various timber imports returned to near pre-pandemic and pre-Brexit standards.
- Experts emphasize the need for government action to revitalise the construction industry post-election.
Timber Development UK (TDUK) reports that the first quarter of 2024 saw a 150,000 cubic metre reduction in timber imports compared to the same period in 2023. Although the figures for January and February remained somewhat consistent, March experienced a significant 6.2% drop. This decline in volumes was observed across nearly all product categories, except for hardwood plywood, which enjoyed a modest 1% increase over the previous year.
Despite the reduction in imports, pricing for timber and panel products has achieved a degree of stability. TDUK notes that import costs for softwood, hardwood, and plywood have largely returned to levels seen before the economic disruptions caused by the Covid-19 pandemic and the UK’s exit from the European Union. Prices for these materials exhibited minimal fluctuations throughout 2023, with significant stabilisation occurring at the outset of 2024.
Nick Boulton, TDUK’s Head of Technical and Trade, has commented on the relationship between timber imports and the wider economic performance. He draws a connection between the 1.4% decrease in overall construction output in Q1 2024 –alongside a more pronounced 7.5% reduction in March 2024– and the weakened state of the UK economy. Boulton attributes the downturn in construction, particularly in new housebuilding, to historically low output levels, barring the Covid-impacted year of 2020.
Looking ahead, Boulton calls for strategic government intervention to foster growth within the construction sector, which constitutes approximately 7% of the UK’s GDP. He argues that government investment is crucial for enabling manufacturers and suppliers to plan with certainty, thereby harnessing timber’s potential role in meeting the country’s construction and climate goals. The optimism for an eventual rebound in timber sales is buoyed by projections from the panels sector, suggesting a positive trend for the remainder of 2024.
As the timber industry navigates a challenging economic landscape, strategic governmental support will be pivotal in realising its potential for recovery and growth.
