W.L. West & Sons Ltd.
Timber Talks - January 2009

International Timber Markets

Fifteen years ago approx 73% of all hardwoods sold were American hardwoods. The volume for the US has been in decline, there is a falling price from the sawmillers and concentration yards but this, on our market, has been offset by the weak sterling run. Where approx 6 months ago, we were seeing 1.98 to the pound we are now around 1.50 to the pound.

The volumes of these principal Species has in the last five years, seen White Oak from 500,000m³ in 2003 to 390,000m³ in 2008. Maple 380,000m³ in 2003 to 210,000m³ in 2008.

The only export increases are American Walnut 90,000m³ in 2003 to 100,000m³ in 2008. And Poplar  280,000m³ in 2003 to 380,000m³ in 2008. This is worldwide..

Recently there have been sawmills closing and unemployment is increasing. Fewer suppliers in a shrinking market tends to suggest an equilibrium of market balances. In our UK trade now, you can count the hardwood mills of any size on one hand, from over 600 hardwood companies in the early 1960’s. Once a sawmill closes then its damn near impossible to re-open it again. Our trade is long term, let’s hope the influx of money into the US economy will drive sales to increase and maintain output. We cannot afford to do without American hardwoods.

The UK still has not got the resources to offer English hardwoods to make any contribution to the UK’s needs. Compare this with our former manufacturing capabilities to now! We have lost so much of our expertise in making things and producing products.

French Sawmillers on the other hand are weathering this storm better than us with Government subsidies and good long term Forest management. They are producing timber to sell and not just to look at! They are starting to see some activity in Vietnam despite the slowdown in global demand. The ability to manufacture in Vietnam is centred there because the wages are lower than China!! Landowners in the UK will sit on their average parcels of hardwood and move to mega Agriculture to earn them and their shareholders money. Whilst in the US the landowners are starting to sell logs at reduced prices, due to their ‘mono-agriculture’ style. If the exchange rates change in our favour we should see a benefit.

Trade News

Trade in the UK is, as we know, patchy. Building in resilience is important. We have taken a decision to stock high quality shippers U/S Redwood from Scandinavia, the stock is very slow grown, the 25mm is all side board production, all carefully wrapped and packed. The U/S Redwood joinery is a way to generate faster moving stock and offer a better and  wider service to our customers. The Redwood has taken approx 4 months to research and organise. All the sales team here have been trained by the shipper to understand the principles of the top joinery required.

We also have the benefit of being able to re-dry for internal moisture contents where 10/12% is applicable. We have on stock subject unsold -  
25 x 150mm 4.20m   
25 x 225mm truck bundled  2.10 – 5.40m 38 x 225m 4.20m
50 x 225mm 4.20m
63 x 225mm 4.20m   
75 x 225mm 4.20m
We are pitching the price to be very very competitive. By selling hardwoods first and foremost with the back-up facility of combining the softwoods, this will give better facilities to our customers and enable us to be more efficient with our transport.

Although it has only been two weeks since the stock has arrived we have machined a lot of the 25 x 150mm in regular mouldings against orders and the feedback so far has been very gratifying. The softwood will not be the main part of our business, but it is going to play an important “Credit Crunch Busting” opportunity for us all.
During this last two weeks, calling customers who have come into the yard have liked it and the way it has been presented.

As a company, we are small enough to be flexible. We do not have to buy vast quantities, and we can be selective and pro-active to your requirements. Fresh sawn Euro Oak Beam work is bubbling and we are still cutting here approx 18/25m³ a month. So if you have any beam work, feed the enquires into our sales team to quote.

Our Machined Timber is on a very good turnaround time. Which really is no surprise, we can turn around machined orders generally in approx 7 days. This area is still fairly active and as companies are shedding employees we are picking up the capacity in the machined moulded profiles.

Remember we are - Small Enough to Care, Big Enough to Cope.

Fencing News

Our Supply and Fix Fencing teams, PRO Fencing, are being kept active, but work is becoming shorter. Any enquires you have for fencing, security fencing, decking and gates are more than welcome. REMEMBER we are one of a very few companies who can offer Bespoke Hardwood Gates. Please do not hesitate to get in touch with us for any enquires you may have. The Decking season will start in the near future and we will be re-stocking with Garapa decking shortly. This is a cost effective and durable product, which represents a very good deck at competitive prices.
PRO Fencing will travel and their skills and expertise are second to none in these areas.   Contact Chris or Martin  on 01252 726391 

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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