W.L. West & Sons Ltd.
Timber Talks February 2008

Trading improves

February has been a much better month than January, which really never got going. We saw some bright warm spring-like sunshine which somehow spurred everyone to smile, have uplifted spirits and, as if by magic, the orders started
coming in thick and fast.
 
February however brought two problems for all importers of overseas timber. The euro has dropped significantly, in the last four months it has dropped to (on one day recently) 1.305 from the norm which was 1.448. This is approximately a 10% drop, which means a recalculation in the selling price to enable the replacement cost to be met. In the timber trade there is a famous saying, "you need a lot of money to make a small amount” -  the biggest reason why timber companies fail is that they do not work on replacement forward costs. With the current market price rises and a double whammy of a weaker pound, the cost of some Euro related items has gone up by a significant amount. 
 

Cash as we all know is very different to profit. Cash is the life blood of a business, without its generation etc a business will fail. Cheap prices are one thing, in the short term, if you are estimating [compared to quoting] things by definition may be better, but a good business may be ruined just by over looking rising prices.
BEWARE-even food items in Lidls are more expensive than eight weeks ago.
 
We have one other cost to ensure we all cover which is that of transport. Fuel costs are being offered as fuel surcharges. Monthly we check out costs of transport and it’s amazing to see the average cost is now over £66.00 per drop, irrespective of invoice value. Therefore we are still sticking to orders over £450.00 + VAT will be delivered FOC in our normal trading areas. This does not apply to some areas of London. After 1st April we may have to reset the bar at a higher invoice value before we can offer FOC deliveries. It is very difficult talking about these factors which affect us all but it i best to be open with this information, perhaps this will help others.

Stock News 

We have some sycamore AT last coming through the system, there will only be a limited amount this year as so little has come up for sale compared to previous years.

Currently we have some Export grade [the best] 65mm T/T Oak which is stunning ex barrel grade logs.
 
The last of the FSC English Oak in 80 /100mm is coming up for sale, any bluff old traditionalists out there may be interested in this, before we see no more quality English logs for some time in any volume, .... sadly. We spoke about the great hope of FSC helping the English hardwood trade but this really has not happened. This could have been the light at the end of the tunnel or was it an oncoming train perhaps?

Beached Blazes

The beached softwood which came ashore on the coast between Brighton and Littlehampton has been set alight by arsonists which is such a waste although some of it was chipped for fuel. Why did the council not let the locals have it as it was useless for much else. Brighton council could have been really popular with its town folk and could have really capitalised on this
couldn't they?

New Fire retardant 

A new surface applied fire retardant is coming onto the market which can be dipped or decorated on site. This is an interesting option as currently there are only a couple of fire treatment centres in the UK. Testing is currently being done for external applications  - more news to follow.

Bio Crop fears

 
There are international worries over bio fuel crops in Brazil, the eagerness to grow this plant as a fuel substitute and a renewable energy resource has lead to concerns over the deforestation of hardwoods and the natural fauna and flora. This is on the increase again after terrible issues in the 1960’s-1980's. Soya growing is also having a negative effect, just when news from these areas was becoming more positive
 
Pundits in the housing markets are saying this year will be 'Improve not move'  year. Therefore decking and flooring which add value in the home may be the way to go.  Some good from this will filter down to the timber traders and makers 
 

It won’t be long before our year end  and we will be closed for stock take on 1st and  2nd April.

 W.L. WEST & SONS LTD
Selham, Petworth, West Sussex GU28 0PJ
United Kingdom

Tel: 01798 861611   
Fax: 01798 861633   
E-mail: sales@wlwest.co.uk

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