Well, what can I say about the last 12 months? Many people have used the expression unprecedented times which I’ve tried to resist using, though to be honest that is an understatement! With Brexit and then the pandemic early in 2020, businesses furloughing employees and then the almost immediate return to work of our industry to meet a sudden unprecedented demand, it has been a rollercoaster for us all. I personally would emphasise how fortunate we have been in this trade in that in many ways we’ve been busier than ever before, and unlike other trades i.e., hospitality we should consider that we have been truly fortuitous. Even if we are all working long hours and stressed with supply and demand, we have managed to continue to trade throughout these turbulent times.
In general, as the pandemic eases and normal spending patterns return, with consumers spending more on going out and travelling and less on home improvement, there is some expectation that some of the tension in the market will be relieved. However, this industry does have many unknowns which may radically change the direction of the market. We are still in a pandemic, and across the economy we can see rising demand from a global construction ‘supercycle’, disrupted supply chains, and there has been a shortage of almost all construction materials as well as skilled workers in the UK.
Most timber products (of whatever type) doubled or more in price in a very short timeframe during the first half of 2021. The cost of shipping, especially via container, has risen to astronomical levels. With the inevitable rise in break-bulk shipments, we are seeing huge delays at the Ports, combined with delays with customs clearance, lack of transport availability and this is not helped by the fact we are currently 100,000 HGV drivers light in the UK with a huge backlog of people waiting to take HGV tests. Fuel prices have also risen considerably and will continue to do so. Anyone fortunate enough to have had supply and been able to deliver to their customers had an incredibly profitable time in the first half of 2021, especially anything linked to the DIY and landscaping sectors, though the regularity of supply was, and in many instances still remains a challenge to us all. When the TTF reported that Q3 2021 could be one of the worst periods for availability in the Timber Trade’s history I’m sure there’s few members who would disagree looking back on that period today. Many members celebrated the prices that timber products achieved in the first half of 2021, though that changed radically in the second half, especially the last quarter of 2021 where a sudden glut of products arriving in the UK combined with an easing of demand had a significant impact. The good news is housing demand continues to be strong and house builders are confident on demand until at least the end of Q1 2022. There is hope that some stability to pricing and availability will now return, though demand from other parts of the world will always remain a significant driving factor to our trade in the UK and beyond.
Worldwide demand for timber products is increasing, and it’s debateable how much capacity there is in the world to meet the demand into the future. As governments worldwide are committed to net zero carbon emissions this will certainly give our industry great opportunities, but we must remain vigilant that there are alternatives and we need to ensure we maintain the focus for the benefit of our industry.
There has been lot of media focus on our industry of late; of course, the primary focus of this media attention has been on timber supply and pricing. But it has also allowed us to communicate with the broader public the role of timber as a low-carbon building material, and its importance to the future of UK net zero construction.
The ground-breaking news of the merger of the TTF with TRADA into the new Timber Development UK will undoubtedly assist our industry with focussed communications to the government, public and specifiers from one source. The communications from the TTF are excellent and of great value to all members in keeping everyone informed of the latest developments in our industry and promoting the membership and use for wood in general. With cross-industry campaigns such as Wood CO2ts less, the work with the Confederation of Timber Industries on Net Zero Now, theWorld of Wood festival for COP26, and in design competitions such as RSUDC21 we are building a compelling narrative. Public understanding is strengthening as we tell our shared story in the timber industry, and whilst the diversity of our supply chain can be challenging, our reach across many enterprises is increasing.
Our Dinner in September was a great success, and whilst we had to restrict the numbers for safety reasons, it was amongst the first of the real trade events to take place in 2021. Cogwheel, the mental health charity was the perfect choice for our support on the evening; this pandemic has caused huge losses across the world, and not just down to the pandemic, I’m sure we all know someone who has suffered with their mental health through the stress of bereavement, loss of income and generally just cannot cope. Our thoughts go out to those who have lost loved ones also.
We look forward to resuming our normal activities this year, the Who Teaches the Teacher industry visits in taking lecturers and teachers to see first hand the incredible benefits our industry can offer will resume, and we have once again supported Anglia Ruskin University with their latest pavilion design in timber. We look forward to hosting something special at our next meeting on 9th June to celebrate our 80th year as a Trade Association – more details will follow.
Whilst our meetings since February 2020 had all been virtual until our first ‘real’ meeting on 4th November 2021, nevertheless they have all been very well attended, relaxed and entertaining and we receive many compliments about how useful the shared information is. I know that with circumstances that arise in our industry we can often feel like we are the only ones experiencing a crisis, but these meetings do clearly show we all have common problems, issues, opportunities and ambitions.
Of course, I could not carry out my role as Chairman without the support of EATTA’s Committee which I appreciate enormously, and the exemplary work and attention afforded by our Secretary, Sheila.
Richard Fatkin
Chairman