W.L. West & Sons Ltd.
Timber Talks - December 2008

2009 = HOPE

Perhaps this is what we all need for this year.

Leaving 2008 there will be some key things to look out for on the horizon, whether that be, for some of us, the six Nations Rugby or Pompey playing to finish in the top half of the premier Division. It could also be the filtering down of vast amounts of money which is being put into the banking system in order to get banks lending again.

We are seeing casualties in firms going into receivership, and we have seen credit insurance companies reducing by, in some instances, over 50% of the cover on timber companies.  “Cash is King” and collecting monies is key in the short term for all of us.

The return of a stronger Pound would be welcome and in this year we should see a return to above the level where it is now. Economics are very complicated in macro issues because of the influence that one factor has over another which makes the outcome feed into the economy with differing degrees of speed depending on the various influences such as interest rates, taxation, public spending, and, of course, borrowing. We should see the whole situation start to ease, but there will be some way yet to go before the market turns.

Investors on the stock market in some instances could not have better opportunities and those companies in the UK with a Euro Balance sheet will be making better profit margins.

Fuel has started to fall at the pumps and food prices are also starting to fall in key sectors. China’s demands on Global raw materials is easing with a Global down turn in demand and add to that the lifting of subsidies by the Chinese government in certain manufacturing areas will mean more realistic competition in their production prices. Unemployment is still increasing but forecasts show a slow down later this year. With the Economy being depressed and a weak pound, outside migrant workers are beginning to flow back to Europe particularly to Poland. This will help the balance but the employment market is never perfect and cannot be expected to be.

TRADE NEWS

CEDAR - Canada has started to build stocks again, unlike last year where scarcity saw Western Red Cedar prices go through the roof. At the moment prices are still firm but supply is starting to ease.

OAK - UK Oak logs are looking more attractive from a price point of view but looking for quality and volume is very difficult. The Forestry Commission is still years behind the reality of the market.  Landowners seem in the main to have forgotten hardwoods but we will look to see if more parcels come up for tender. The UK market for saw logs really needs a rush of adrenaline.

YEW - We currently have approx 2000 hoppus feet of Yew logs here at Selham, some of which we know will make Veneer grade. We shall be marketing these in the near future and expect them to be sold into Europe. We shall also keep some to mill ourselves.

ON SITE SELECTION - Those customers who tend to come in to select and collect orders will note the new layouts and newly organised sheds which now makes the stock more visible, manageable and cared for to another new level. Well done to all of our staff  who have worked hard to achieve this.

NEW—SOFTWOOD - Very soon we will ship our first consignment of unsorted softwoods from sawmills chosen by Gerard Magill, our buyer, who has taken months to research the market for the best marks, qualities and  sizes. Taking into account all the customers who took part in our “Test Marketing” and surveys, we have tried to realise what the market wants, how much and what to stock. Don’t forget in the mid-term we also have kilning opportunities which may help the Joiners and Kitchen Makers.

SYCAMORE - Currently we are drying some Sycamore which has been sourced locally. Within the next month we will have 27, 34, 41 & 54mm T&T available. This is good quality and white.

Simple Goals for 2009.

“To Hope is to Enable, to Enable is to Achieve, to Achieve is to Win.”

Let’s be positive, ignore the Media Driven Suicide and let’s hope to make 2009 a positive start in this new trading year.

We wish you all very Happy New Year, lets hope it is more      Prosperous than the media would currently have us think!!

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

Other Newsletters