Sector Overall sector Employment GVA size million Forestry and logging Sawmills Wood based panels Builders joinery Wooden Packaging

Transcription

1

2

3

4 Sector Overall sector size Employment GVA million Forestry and logging 1.3bn 16, 54 Sawmills 1.1bn 8,3 545 Wood based panels 1.8bn 5, 28 Builders joinery 3.8bn 5, n/a Wooden Packaging 279m 2,3 n/a o o o o

5 million m³ WRME underbark UK production Imports Exports Apparent consumption

6

7 Thousand green tonnes UK softwood production; primary markets , 1, 8, 6, 4, 2, Exports Other Woodfuel Fencing Woodbased panels Pulpmills Sawmills

8 thousand cubic metres overbark standing 2, 18, 16, 14, 12, 1, 8, 6, 4, 2, Series1 16,487 17,151 17,442 18,398 17,649 15,779 13,181 11,99 12,54 12,193

9 Thousand green tonnes UK softwood consumption by primary sawmills 8, 6, 4, 2, Sawmills 4,924 5,21 5,565 4,933 5,133 5,616 5,859 6,73 6,47 6,725 UK grown softwood primary markets for sawnwood by volume, %, 214 3% 5% 27% Construction Fencing Packaging / pallets Other 37%

10 thousand cubic metres UK grown softwood - primary markets for nonsawnwood by volume, %, % 5.1% 5.1% 5.1% 1.% 17.3% 13.3% 44.9% Wood chips for wood processing industries Sawdust & other for wood processing industries Wood chips for bio-energy Bark for bio energy Sawdust & other for bioenergy 4, UK production of wood based panels, ,5 3, 2,5 2, 1,5 1, Fibreboard Particleboard Fibreboard Particleboard 2,557 2,626 2,684 2,431 2,37 2,594 2,625 2,215 2,276 2,319

11 thousand m³ thousand cubic metres Construction Furniture Other Chipboard MDF OSB UK import quantities of selected wood products, , 8, 6, 4, 2, Sawnwood Wood pellets Woodbased panels Other wood UK sawn wood - UK Mill production versus Imports 14, 12, 1, 8, 6, 4, 2, Imports 8,341 7,963 8,469 5,886 5,24 5,699 4,936 5,179 5,488 6,425 UK Mill production 2,727 2,859 3,79 2,755 2,89 3,53 3,227 3,361 3,536 3,716

12 Thousand cubic metres million 4,5 4, 3,5 3, 2,5 2, 1,5 1, Thousand m3 3,939 3,959 3,858 3,389 2,5 2,71 2,827 2,65 2,964 3,26 million ,

13

14

15 million 213 Constant Prices 11% 6% 39% 9% 32% 14% 26% 57% 6% Direct Builders Merchants Direct Builders Merchants Specialist Merchants Timber Merchants Timber Merchants DIY DIY 16, 14, 12, 1, 8, 6, 4, 2, Forecasts for UK Construction Output Source: ONS, CPA Upper Scenario Lower Scenario Central Scenario

16 Completions 25, Forecast Housing Completions 2, 15, 1, 5, Upper Scenario Lower Scenario Central Scenario Forecasts for wood consumption in the UK Construction Sector to 219 Growth in construction output from prior year Consumption of sawn softwood ( m³) ( m³) 214 1% % e 1% e -2% e % Consumption of wood based panels

17 Sales ( m MSP) UK Sales of builders carpentry and joinery (e) m MSP UK Manufacturers Sales of builders carpentry and joinery 214, s and % split by product group 1,263, 34% 379, 1% 1,358, 37% 698, 19% Windows and frames Doors and frames Other carpentry Wooden prefab buildings

18 Sales ( m MSP) Forecast UK Sales of builders carpentry and joinery m MSP

19 's units e 216f 217f 's units

20 Sales m MSP UK manufacturers sales of selected wooden furniture, ( m MSP) 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, Other wooden furniture ( 's) 1,445,37 1,313,831 1,396,366 1,511,151 1,561,918 1,562,945 1,589,456 Wooden Kitchen Furniture ( 's) 1,93,575 1,16,2 1,35,567 1,55,336 1,94,61 1,356,8 1,348,77 Wooden Shop Furniture ( 's) 391,31 347,8 347,4 365,82 42,6 311, ,93 Wooden Office Furniture ( 's) 34, , ,497 32, ,896 32, ,35 Forecast sales of wooden furniture in the UK, ( m MSP) Sales m at MSP

21 thousand tonnes UK production of wood pellets, Total

22

23 Millions of Pallets UK pallet production, new and repaired, New Pallets Repaired Pallets Total

24

25

26

27

28

29

30 Subsector Strategy Issues UK Wood Grow more Where and who buy public or private Softwood or hardwood? Remove more Technically feasible given access, etc? Some believe Forestry owners are managing availability UK Sawmills Increase capacity Business case? Investment climate & access to capital Raw material availability currently a problem and prices rising Improved added value Possible with raw material quality? Competition for raw material Perception/Brand of UK Wood? Vertical integration Already happening Conflicts with customers Core skills UK Wood Panel mills Increase capacity Business case? Investment climate & access to capital Some are part of European companies Raw material availability currently a problem and prices rising

31 Pulp and paper Focus on higher added value products like waterproof and fireproof Pulp import substitution Market needs large volumes of commoditised basic product UK pulp making capacity business case to expand? Raw material availability competition for woodchip Better harvesting of fines/raw material Biomass Import substitution Best use of UK wood? Impact on other sectors already an issue Could wipe out other wood users (imports are 7% of sawmill inputs) Builders joinery and carpentry Structural timber Timber frame Furniture 1. Build more houses 2. Increase wood content of houses Win/maintain share against metal and composites Increase share of timber frame Support growth of timber use in UK furniture manufacturing Growth entirely dependent on UK Housebuilding Per capita wood use in UK construction is.14m³ compared with.2m³ in Germany and.8m³ in Finland. Increasing to.16m³ per capita would mean additional 1. million m³ consumption Many modern solutions are multi-material Scotland saturated? England is key. Further strengthen specifier education programmes Integrate furniture manufacturers more with timber sector Opportunity to greater added value for UK wood, particularly harder softwoods and hardwoods o o o o o o o o o o o o

32

33

34 o o o o

35 million m³ WRME underbark Table 1: Apparent consumption of wood 1 in the UK, million m 3 WRME underbark Year UK production Imports Exports Apparent consumption Source: industry surveys, industry associations, UK overseas trade statistics (HM Revenue & Customs) and conversion factors Wood Raw Material Equivalent (WRME) UK production Imports Exports Apparent consumption production, with falls of 27.5% and 6.6% respectively. The lower impact on

36 m³ millions consumption of volume value

37

38 Table 3 Wood production, Year Softwood Hardwood 3 FC/NRW/FS 1 Private sector 2 Total softwood FC/NRW/FS 1 Private sector 2 thousand green tonnes Total hardwood 25 4,579 3,499 8, ,582 3,661 8, ,653 4,83 8, ,415 3,823 8, ,126 3,266 8, ,625 4,633 9, ,87 5,186 1, ,836 5,259 1, ,84 5,852 1, ,9 6,531 11, Source: Forestry Commission, Natural Resources Wales, Forest Service, industry surveys, industry associations. Notes: 1. FC: Forestry Commission (England, Scotland, and until March 213, Wales), NRW: Natural Resources Wales (from April 213), FS: Forest Service (Northern Ireland). 2. Private sector: removals from all other woodland (including some publicly owned woodland). 3. Most hardwood production in the UK comes from private sector woodland; the figures are estimates based on reported deliveries to wood processing industries and others.

39 thousand green tonnes thousand green tonnes 14, 12, 1, 8, 6, 4, 2, Softwood FC/NRW/FS 4,579 4,582 4,653 4,415 5,126 4,625 4,87 4,836 5,84 4,9 Softwood Private sector 3,499 3,661 4,83 3,823 3,266 4,633 5,186 5,259 5,852 6,531 Softwood Total softwood 8,77 8,243 8,736 8,238 8,392 9,258 1,56 1,95 1,936 11,431 Softwood FC/NRW/FS Softwood Private sector Softwood Total softwood Hardwood FC/NRW/FS Hardwood Private sector Hardwood Total hardwood Hardwood FC/NRW/FS Hardwood Private sector Hardwood Total hardwood

40 Thousand green tonnes 12, 1, 8, 6, 4, 2, 437, 4% 317, 3% 188, 2% 465, 4% Sawmills 1,283, 12% 1,5, 14% 6,725, 61% Woodfuel Woodbased panels Pulpmills Exports

41 Thousand green tonnes Other Woodfuel Woodbased panels Pulpmills Sawmills , 1% 77, 15% Sawmills Woodfuel Other 4, 75%

42 % return Index (1992 = 1) Annual %Return 3-Year Return (annual average % change) Index (1992=1)

43 million GVA

44 thousand cubic metres overbark standing 2, 18, 16, 14, 12, 1, 8, 6, 4, 2, Series1 16,48 17,15 17,44 18,39 17,64 15,77 13,18 11,9 12,5 12,19

45

46

47 thousand tonnes Total raw material for UK panel production facilities.

48

49 Million tonnes 's Paper and Board production ( tonnes) Corrugated production (million sq. metres) Tissue Parent Reel Production ( tonnes) 772. Recovered paper collection ( tonnes) ,55, 2,5, 2,45, 2,4, 2,35, 2,3, 2,25, 2,2, 2,15, Consumption UK Production (volume) UK Production (value) 2,376,6282,26,582,437,462,56,7792,48,6372,384,4912,357,47 2,1,

50 Thousand tonnes Table 7 UK import quantities, Year Pulp and Paper (thousand tonnes) Paper Pulp Recovered paper Total Pulp & Paper 25 7,663 1, , ,741 1, , ,89 1, , ,43 1, , , , ,254 1, , ,887 1, , ,631 1, , ,929 1, , ,949 1, ,319 Source: UK overseas trade statistics (HM Revenue & Customs), industry associations 9, 8, 7, 6, 5, 4, 3, 2, 1, Paper Pulp Recovered paper

51 Thousand green tonnes Roundwood Sawmill products

52

53 thousand green tonnes Fencing

54 No. of mills < < < < < < 1 1 +

55 Thousand green tonnes England Wales Scotland Northern Ireland 8, 7, 6, 5, 4, 3, 2, 1, Sawmills 4,924 5,21 5,565 4,933 5,133 5,616 5,859 6,73 6,47 6,725

56 thousands 1,2, 1,, 8, 6, 4, 2, Total UK manufacturer sales 887,49 786, ,45 967, ,878 1,36,739 1,135,896

57 5% 27% Construction 3% Fencing Packaging / pallets Other 37%

58 5 8 5 Wood chips for wood processing industries Sawdust & other for wood processing industries Wood chips for bio-energy Bark for bio energy Sawdust & other for bio-energy 17 Wood chips other 13 Bark other Sawdust & other for misc Table 8 Larger mills 1, : other softwood products Year Destination Total Sold to wood processing industries Sold to bioenergy (incl pellet manufacturers) Other sales Other Source: Sawmill Survey (detailed) Notes: 1. Sawmills producing at least 1 thousand m 3 sawnwood (softwood and hardwood). per cent of total other softwood products 2. Other includes internal use for heat/ energy, sales of firewood and other products disposed of as waste.

59

60 Table 4 UK import quantities, Year Wood (thousand m 3 ) Sawnwood Woodbased panels Wood pellets 2 Other wood ,341 3, , ,963 3, , ,469 3, , ,886 3, , ,24 2, ,699 2, , ,936 2,827 1, ,179 2,65 2, ,488 2,964 5,15 1, ,425 3,26 7,41 1,351 Source: UK overseas trade statistics (HM Revenue & Customs), industry associations Notes: 1. There are reliability concerns for some of these figures, particularly for individual products (see Sources chapter) Denotes data not available (wood pellets included within "Other wood" category before 29). 3. Includes roundwood, wood charcoal, chips, particles and residues. Excludes wood pellets from 29.

61 thousand cubic metres 9, 8, 7, 6, 5, 4, 3, 2, 1, Sawnwood Woodbased panels Wood pellets Other wood

62 Table 5 UK import values, Year million Sawnwood Woodbased Wood pellets 2 Other wood 3 panels 25 1, , , , , , , , , Source: UK overseas trade statistics (HM Revenue & Customs), industry associations Notes: 1. There are reliability concerns for some of these figures, particularly for individual products (see Sources chapter) Denotes data not available (wood pellets included within "Other wood" category before 29). 3. Includes roundwood, wood charcoal, chips, particles and residues. Excludes wood pellets from 29.

63 thousand m³ 14, 12, 1, 8, 6, 4, 2, Imports 8,341 7,963 8,469 5,886 5,24 5,699 4,936 5,179 5,488 6,425 UK Mill production 2,727 2,859 3,79 2,755 2,89 3,53 3,227 3,361 3,536 3,716

64 thousand cubic metres 4, 3,5 3, 2,5 2, 1,5 1, Fibreboard Particleboard Fibreboard Particleboard 2,557 2,626 2,684 2,431 2,37 2,594 2,625 2,215 2,276 2,319 Construction Furniture Other Chipboard MDF OSB

65

66 Thousand cubic metres million 4,5 4, 3,5 3, 2,5 2, 1,5 1, Thousand m3 3,939 3,959 3,858 3,389 2,5 2,71 2,827 2,65 2,964 3,26 million ,

67

68

69 ' m³ 5% 27% Construction 3% Fencing Packaging / pallets Other 37% 9, 8, 7, 6, 5, 4, 3, 2, 1, Construction Pallets & Packaging Fencing & Outdoor Other

70 ' m³ 12, 1, 8, 6, 4, 2, Construction Pallets & Packaging Fencing & Outdoor Other

71 11% 6% 39% 9% 32% 14% 26% 57% 6% Direct Builders Merchants Specialist Merchants Timber Merchants DIY Direct Timber Merchants Builders Merchants DIY

72 Sales m Sales

73

74 % % % Chipboard MDF OSB

75 Completions million 213 Constant Prices 16, 14, 12, 1, 8, 6, 4, 2, Forecasts for UK Construction Output Upper Scenario Lower Scenario Central Scenario , Forecast Housing Completions 2, 15, 1, 5, Upper Scenario Lower Scenario Central Scenario

76 Forecasts for wood consumption in the UK Construction Sector to 219 Growth in construction output from prior year Consumption of sawn softwood ( m³) ( m³) 214 1% % e 1% e -2% e % Consumption of wood based panels

77 Sales ( m MSP) m MSP , 34% , 37% 37934, 1% , 19% Windows and frames Doors and frames Other carpentry Wooden prefab buildings

78 Sales ( m MSP) m MSP

79 's units e 216f 217f 's units

80 m msp Iron/Steel Windows & Doors Aluminium Windows & Doors , PVC-u Windows & Doors 2,211 2,35 2,35 1,878 2,247 2,335 Timber Doors & Frames Timber Windows, French Windows & Frames Source: ONS and Mintel/MBD

81 Sales ( m msp) Timber windows and frames, replacement Timber windows and frames, contractors Timber doors and frames, replacement Timber doors and frames, contractor

82 m (214 prices) Est 216 Fcst 217 Fcst 218 Fcst 219 Fcst m

83 Sales m RSP m (214 prices) Windows Doors Conservatories est 21 6 fcst 21 7 fcst 21 8 fcst 21 9 fcst 22 fcst Sales ( m) RSP

84

85 million Sales m at MSP

86 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, Other wooden furniture ( 's) 1,445,37 1,313,831 1,396,366 1,511,151 1,561,918 1,562,945 1,589,456 Wooden Kitchen Furniture ( 's) 1,93,575 1,16,2 1,35,567 1,55,336 1,94,61 1,356,8 1,348,77 Wooden Shop Furniture ( 's) 391,31 347,8 347,4 365,82 42,6 311, ,93 Wooden Office Furniture ( 's) 34, , ,497 32, ,896 32, ,35

87 Sales m MSP Sales m at MSP

88 Millions of Pallets New Pallets Repaired Pallets Total

89

90

91

92

93

94

95

96

97 Subsector Strategy Issues UK Wood Grow more Where and who buy public or private Softwood or hardwood? Remove more Technically feasible given access, etc? Some believe Forestry owners are managing availability UK Sawmills Increase capacity Business case? Investment climate & access to capital Raw material availability currently a problem and prices rising UK Wood Panel mills Pulp and paper Improved added value Vertical integration Increase capacity Focus on higher added value products like waterproof and fireproof Pulp import substitution Possible with raw material quality? Competition for raw material Perception/Brand of UK Wood? Already happening Conflicts with customers Core skills Business case? Investment climate & access to capital Some are part of European companies Raw material availability currently a problem and prices rising Market needs large volumes of commoditised basic product UK pulp making capacity business case to expand? Raw material availability competition for woodchip Better harvesting of fines/raw material Biomass Import substitution Best use of UK wood? Impact on other sectors already an issue Could wipe out other wood users (imports are 7% of sawmill inputs) Builders joinery and carpentry Structural timber Timber frame Furniture 3. Build more houses 4. Increase wood content of houses Win/maintain share against metal and composites Increase share of timber frame Support growth of timber use in UK furniture manufacturing Growth entirely dependent on UK Housebuilding Per capita wood use in UK construction is.14m³ compared with.2m³ in Germany and.8m³ in Finland. Increasing to.16m³ per capita would mean additional 1. million m³ consumption Many modern solutions are multi-material Scotland saturated? England is key. Further strengthen specifier education programmes Integrate furniture manufacturers more with timber sector Opportunity to greater added value for UK wood, particularly harder softwoods and hardwoods

98 o o o o o o o o o o o o

99

100

101