Spec Finish

Materials All timber users and buyers need to strengthen their purchasing strategies in dialogue with their suppliers, as a lack of stock on the ground and tight supply conditions are set to continue well into this year. TIGHT SUPPLY OF TIMBER AND PANEL PRODUCTS CONTINUES 24 www.thefis.org T HE very challenging situation for the timber supply chain last year affected by pandemic-related issues and massive changes in market dynamics, and exacerbated by high levels of global demand for timber and wood products, is setting the scene for continuing tight timber supply conditions certainly into Q2, 2021, if not longer, warns the Timber Trade Federation. Early in the pandemic, many European sawmills were temporarily closed. Lockdowns across the UK and Europe then produced a massive surge in demand for timber for DIY and garden projects, which began to impact supplies through to Britain’s construction sector. Additional high demand for structural timbers, particularly CLS and carcassing, from across Europe and the USA, also affected the amount of material available in traditionally well-stockedmarkets such as the British builders’ merchant sector. With demand continuing at a high level into 2021, there has been no ‘quiet season’ in Britain’s building trade, therefore little opportunity for sawmillers and importers to replenish stocks to their previously plentiful levels here in the UK. COVID-19 is still producing more and more cases, such as that seen at the end of 2020 in Sweden, the UK’s largest timber-supplying partner, where an increase in cases resulted in a tightening of operating conditions and delays where vessel crews were required to self-isolate. Import logistics, with the end of the Brexit transition period and the new arrangements with the Republic of Ireland and Northern Ireland, may add further pressures on supplies, as the timber sector will need to compete with many other industries in obtaining road haulage capacity within the UK. Allocations and longer lead times To ensure available material is distributed equitably, many Timber Trade Federation members are continuing to operate on customer allocations. Volumes are likely to be available but on much longer lead times than previously. Merchants, manufacturers and building contractors are advised to contact their supplier to discuss future needs, and, similarly, to become more aware of the factors influencing suppliers’ capacity to meet demand. Companies without a longer-term purchasing strategy will struggle to replenish stocks through just-in-time buying in Q1 and Q2, 2021. David Hopkins, Chief Executive of the Timber Trade Federation, said: “Pre-COVID, timber buyers were used to