The demand for timber pallets and packaging continues to be weak, but there are signs that the bottom of the market may be in sight, according to the Timber Packaging and Pallet Confederation (TIMCON).
A recovery in demand will be gradual, and all members of the industry will need to share the burden of higher material costs in order to generate volumes, it says.
At its annual general meeting in Manchester, the organisation stressed to members and associated members from the manufacturing, saw-milling and pallet pools sectors that every company within timber must understand its role in achieving a structured recovery for the business overall.
TIMCON president John Dye said: “While the timber pallet and packaging business remains up to 40 per cent down compared to this point two years ago, we are cautiously optimistic that the decline in demand is slowing. However, the virtual disappearance of imported timber for our sector has left us with reduced supply of timber and price increase pressure - which have been further exacerbated by unfavourable exchange rates. Meanwhile, prices for the end product have fallen to unsustainable levels.
“We want all members of the supply chain to be aware of these pressures on the business and to collaborate to ensure we rebuild the position of timber pallets and packaging together, in the fastest and most efficient way we can.”
In contrast, the home-grown timber supply industry reported good demand due to cuts in capacity and the dramatic reduction of imported timber for the sector due to exchange rate movements and other factors.
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