Industry News

BWF Trade Survey Q4 2017: Investment in products improvement grows despite rising raw material costs

The British Woodworking Federation (BWF) has issued its Joinery State of Trade Survey Q4 2017. The consultation indicates that investment in product improvement and customer research is growing despite rising raw material costs and slowing sales growth.

BWF Policy and Communications Executive Matt Mahony commented: “Sales are still growing at a reasonable rate and there are no indications of a sudden decline for the British woodworking industry despite the pessimism around construction from some quarters. Slightly fewer order books extending beyond three months and consecutive quarters of lowered sales growth expectations conceal the reality which is that our members have been selling products and adapting to the higher costs that have now unfortunately become the new norm.

“More than two-thirds of respondents noted that Brexit-related uncertainty has already affected their business, with two-thirds of those identifying the impact as being increased raw material costs. If we look to the longer term however, manufacturers are unsure as to what the effects of Brexit might be.

“On the plus side, it’s hugely encouraging to see joinery manufacturers taking a proactive approach to growing their market. Investment in e-business is set to increase by half and customer research is anticipated to double. More than two-thirds of members will be investing more in product improvement.

“With the innovation and initiative of our members reflected in the survey results, there are plenty of reasons why wood should be the material of the choice for 2018 and beyond. The irreparable damage of plastic pollution is never far from the news, with programmes such as Blue Planet 2 capturing the public imagination and the Wood Window Alliance’s Fake Facts campaign shining a spotlight on the PVC-u industry’s ‘plastic promises’. We will be building on existing resources to support members of all sizes in showcasing their products as beautiful and sustainable and illustrating the benefits to specifiers of building it with wood.”

 

Key points from the BWF Joinery State of Trade Survey Q4 2017 include:

  • A balance of 33% of respondents reported an increase in sales volumes over the last quarter, with 41% reporting an increase over the last year. This corresponds with the 44% of respondents reporting a quarterly increase in the previous survey.
  • 68% of respondents felt that Brexit-related uncertainty had affected their business so far with 67% of those noting that the cost of raw materials was where it had impacted.
  • A balance of 32% felt that Brexit negotiations would have a negative impact on their business in the next 12 months.
  • When asked about the impact of Brexit over 5 years, respondents were split between whether it would be positive or negative (25% for each) with 40% unsure of the implications and 10% expecting no impact.
  • Manufacturers felt that sales volumes would improve in the next quarter, with a balance of 34% predicting an increase for Q1 2018, and a balance of 30% predicting an increase over the next year.
  • 19% of companies reported a current order book of future work extending beyond 3 months – down 7% from the previous quarter - with 53% saying that their order book extended to between 1 and 3 months.
  • Demand was listed as the most likely constraint on output over the next year by 37% of respondents. Labour availability and Capacity came next, with 24% and 20% of respondents feeling that they were most likely to constrain output.
  • 32% of respondents on balance reported increasing their labour force in the previous year, with 44% of respondents anticipating an increased labour force over the next year.
  • Raw material costs were noted as a major inflationary factor for unit costs for 95% of respondents on balance, with wages/salaries increases pushing up unit costs for 67% of respondents on balance.
  • Over the previous year a balance of 59% of respondents had invested in improving their products with 45% investing in their manufacturing equipment.
  • Investment in product improvement was set for the highest capital investment over the next year, with a balance of 67% planning to invest and with 48% set to invest in equipment

 

[News URL: http://cti-timber.org/content/bwf-trade-survey-q4-2017-investment-product-improvement-grows-despite-rising-raw-material]

TTJ Editor Sally Spencer awarded Woodland Hero 2017

Grown in Britain has presented its annual Woodland Hero award to Sally Spencer, Contributing Editor on Timber Trades Journal (TTJ), at a gathering in London.

Throughout her time on Timber Trades Journal (TTJ), the business magazine for the timber trading and timber-using sectors, Sally has taken an interest in British-grown timber.

Frequently writing lead articles and interviews for TTJ’s annual British timber features, Sally has become well-known across Grown in Britain’s constituency of British timber growers, producers and distributors.

Presenting Sally Spencer with her award at a gathering kindly hosted at Timber Trades Journal’s London offices, Grown in Britain CEO Dougal Driver said: “Sally very much deserves our 2017 Woodland Hero award. Her consistent coverage of British timber in a market dominated by imports has kept the faith on home-grown wood. Her reporting of developments in processing have also helped to underline the quality of today’s British timber.”

Steve Cook, chairman of Grown in Britain, added: “The Grown in Britain Woodland Hero award is given to people whose contribution, whether in public or behind the scenes, have benefitted wood that is Grown in Britain. Sally’s professional journalistic scrutiny of home-grown timber, and her enthusiasm for its coverage, have been of great benefit to British-grown wood.”

Accepting the award, TTJ’s Sally Spencer said: “I’ve developed good relationships and interviewed many key players in the British timber sector over time. As investment in the industry, and its share of the market, have grown, it has more than justified its place in TTJ. I enjoy following its progress and engaging with its people, and I’m honoured to receive this award from Grown in Britain.”

 

[News URL: http://www.cti-timber.org/content/ttj-editor-sally-spencer-awarded-woodland-hero-2017]

Staircraft makes Sunday Times Virgin Fast Track 100 League

Staircraft has achieved number 51 in the 2017 Sunday Times Virgin Fast Track 100 league, an index which ranks Britain’s fastest growing private companies.

Staircraft's Managing Director Andy Hamilton founded the Nuneaton-based company in 1985 using innovation through design and manufacturing to reach today’s position of Europe’s largest staircase manufacturer, supplying 1000+ new-build homes every week.

The proposition has grown significantly, now offering ‘fully integrated solutions’ in the design and manufacture of staircase, i-joists, floor-kits, MDF painted profiles/mouldings, with door-kits on the horizon.  The extended range also positions Staircraft as Europe’s only i-joist and floor-kit manufacturer.

In 2017 Staircraft added 5 manufacturing facilities, ending the year with 8 facilities with more planned in 2018. 3 units were opened in Hinckley supporting the main stair factories and providing capacity for future product areas.

Andy Hamilton, Staircraft Founder & Managing Director commented: “Nothing much has changed since i-Joists were invented 48 years ago, until now!  Our investment in a high technology, bespoke production line, enables us to take i-joist performance to a new level. Our new capability will enable us to significantly increase performance by eliminating web joints, the weakest area, greatly improving the web/flange connection strength. These innovations will future proof our offering to the market”.    

“Of course our success would not have been possible without the support of our customers and suppliers who we recognise as our extended team, helping us achieve greater market share.  Lastly, and most importantly, I want to place on record my sincere gratitude to each and every member of the 300-strong Staircraft team. Their hard-work, flexibility and dedication through a significant period of improvement and change has been truly admirable."

 

[News URL: http://cti-timber.org/content/staircraft-makes-sunday-times-virgin-fast-track-100-league]

Major organisations join PEFC as International Stakeholder members

Three major organisations involved in wood manufacturing, paper & pulp processing and forest management have joined the Programme for the Endorsement of Forest Certification (PEFC).

“We are delighted to welcome ARAUCO, European Panel Federation (EPF) and European Pulp Industry Sector Association AISBL (EPIS) as International Stakeholder members,” said PEFC CEO and Secretary General Ben Gunneberg during the PEFC General Assembly in Helsinki, Finland on 15 November 2017.

“As sustainable forestry is a lifeline for our members, we are very much looking forward to our membership with PEFC,” commented Anna Maija Wessman, European Pulp Industry Sector Association, AISBL (EPIS), speaking at the General Assembly.

“We hope to engage in an active dialogue between EPIS and PEFC, and to have a good interaction in the coming years,” Ms. Wessman continued.

Clive Pinnington from the European Panel Federation added: “As downstream users of certified forests, certification is extremely important to us. We have nominated it as one of our top ten priority areas. We hope to support PEFC and are thoroughly delighted to be a new member.”

Celulosa Arauco Y Constitucion S.A. is a group of forestry and industrial companies located in Chile, Argentina, Brazil, Uruguay, the US, Canada and Europe. Arauco is one of the largest forestry companies in Latin America, both in terms of the surface area and the output of its plantations. Its industrial activities include cellulose plants, sawmills and woodworking plants.  

The European Panel Federation (EPF) represents the manufacturers of particleboard, MDF, OSB, hardboard, softboard and plywood, with members in 25 countries. The EU wood panel industry has an annual turnover of around 22 billion Euros, creates over 100,000 jobs directly and counts more than 5,000 enterprises in Europe.

The European Pulp Industry Sector Association AISBL (EPIS) is an international non-profit organization consisting of companies producing chemical or mechanical market pulps. Its purpose is to collect, process and distribute statistics regarding chemical market pulps in compliance with applicable antitrust laws for the benefit of its members and third parties.

With these three new members, the PFC can now count on 28 International Stakeholder members, as well as 49 National members.

 

[News URL: http://cti-timber.org/content/three-major-organisations-join-pefc-international-stakeholder-members]

Saint-Gobain acquires Scotframe entering offsite manufacturing market

Saint-Gobain UK & Ireland has completed the acquisition of Scotframe Limited accelerating its involvement in the offsite manufacturing and closed panel construction market.

Scotframe manufactures and supplies full timber frame housing kits for small/medium builders, developers and self-builders in the UK. Operating from two manufacturing sites and four sales and showroom locations in Scotland, Scotframe is also a market leader in closed panel systems used extensively for new build homes in Scotland, and also England. 

Mike Newnham, Chief Executive of Saint-Gobain Building Distribution UK & Ireland commented: “Scotframe is a great fit for Saint-Gobain and we’re delighted the team at Scotframe are joining our Group. Scotframe has more than 160 dedicated and knowledgeable employees who have considerable technical knowledge in manufacturing high-quality timber housing kits and wall, floor and roof panels for the UK market. Scotframe is a business strongly aligned to Saint-Gobain’s strategy to create great living places and improve daily life, and enables Saint-Gobain to further accelerate its growth and expertise in offsite manufacturing for construction markets.” 

“Just as importantly for me, Scotframe and Saint-Gobain share the same core focus on safety, understanding and supporting customers throughout the house building and designing process. Both companies also champion the role building performance has in creating comfortable and healthy living environments.” 

‘I’m delighted that the founder and MD of Scotframe, Bob Edwards, will continue as Managing Director of Scotframe following the acquisition, so Scotframe will continue business as usual, serving customers and manufacturing high-quality products.”

Bob Edwards, Managing Director of Scotframe added: “Today is an exciting day for Scotframe and for all our dedicated colleagues. Having established the business 28 years ago the sale of Scotframe is a tremendous milestone in our evolution and I’m delighted that we will be beginning this new chapter as part of the Saint-Gobain group – a tremendous company with a fantastic reputation and great strength."

"I will continue to run Scotframe and for our customers nothing will change – we continue to operate business as usual. For our colleagues who make our business such a success this is a terrific opportunity to be part of a global group with 18,000 colleagues in the UK alone and a culture of valuing personal development and growth – so many new opportunities for our business.”

 

[News URL: http://cti-timber.org/content/saint-gobain-acquires-scotframe-entering-offsite-manufacturing-market]

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