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

Firstly an apology. Due to many things - some include the current trading climate, we have not been able to publish the newsletter on line. We have now put tis right. at the bottom of this page you will see the previous months newletter as well.

The last Financial Year

The financial year has come to an end.

With a whole range of mixed feelings, who would have thought in May – August last year the world was about to stop spinning! The demise of Northern Rock here and then the collapse of the Icelandic banks. The exchange rates getting even worse, the Euro gained so much strength that the parity was 1:1 from an exchange rate of 1: 60. Sterling had dropped 40% at one stage making imports more expensive, then of course there is the dollar which gained in strength from 1:98 to 1:34,  32% drop in Sterling.
With companies now on short time, and lay offs, the trade is getting into equilibrium to the depressed demand in the market place.

The adjustment in the market may be swift and decisive when lending starts again. We may see some positive steps forward. It really highlights how important the banking system is and how the world revolves around cash.

In this financial year we have seen some notable timber companies go into receivership, some customers too, even the largest companies are down sizing and getting rid of stock and people. Times are very hard for us all.

The way Forward

In the Positive Groove —
We have become more efficient in the way we run our business (of course there are always issues to fine tune!), we can turn around machined orders quickly and effectively.

The installation of a Weinig Multi-Rip, the first of its kind in the UK, enables us to make, if required, 4 cuts at once. This machine was ordered months ago and the determination to increase output and reduce cost was paramount. As a result, you will see savings passed on to the customers.
 
Our transport system has become more efficient thanks to Cheryl and Craig in our yard team, the saving here will eventually be passed on the to the customers. The charges will not increase for the near future.

The moulding element to the machining work has been further increased by technology changes in the cutter metallurgy, some time ago what was traded in longevity traded off in finish quality. High speed steel gave a great cut but lacked retaining its sharpness / edge. Now with the advent of spiral blocks and a new steel the effect is superb.

Product News

Stock coming forward is now catching the increase in prices from the USA, due to the Dollar exchange rate. Reading the timber trading news from the States, mills are going in to receivership faster than in the UK. It is predicted that in the Autumn/Winter there will be less stock inventory to offer. With the global demand falling especially from China, supply will be cut back.

The Scandinavian Redwood U/S softwood has got off the ground and we have had good to reasonable feed back. The pricing of the softwood is competitive and worthy of being considered. In replacing stocks we are getting into the culture of ordering ahead to get the ‘Plum sizes’ which is what customers want.
This product is very important to us, the real benefit in selling the U/S Redwood has also had a benefit in maximising deliveries. This has made delivery more competitive. We need and want more U/S softwood sales. Thank you all who have starting buying, please continue. We will be very competitive on price in this area. In the short time we have held these stocks, we have kiln dried some of the U/S Redwood for kitchen and flooring production!

Fresh sawn Euro Oak beam work was miserable in February but we saw increases through March. We have had one of the UK’s top timber framers visit us, he is well known in the UK and often lectures abroad. It was great to hear him speak about the UK’s Artisans who are becoming the best in the World at timber framing. In the last month a local timber framer and Environmental Campaigner who featured on Grand design with his Chestnut and Straw bale house is working with us on another project. We are sawmilling oak logs for a local village project. More news on this very soon.

And finally....................

Honestly we are glad to get rid of 2008/2009, and now the first day of our new financial year, leaner and more flexible, more competitive, we have an opportunity to extend our laminating work. At the beginning of May we will be able to offer laminated sections other than the worktop production. This will include products for stiles and heads.

Off Now to a New Financial Year with refreshed hopes and aspirations.

Previous newsletter

Current Trading Situation

DON’T BELIEVE THE MEDIA !!!!!!!!!!
What on earth has happened this month? We thank those of you who have placed orders this month, but where are the rest? We have had some interesting quotes to do, but converting them into orders is interesting to say the least.

Our nations media do not seem to be helping the situation — for any industry. They would have us believe that they are ‘impartial’, and of course they rarely publicise the goods news.  But to be fair, the only way that our markets are going to improve is by people having the confidence to undertake building, expansion and renovation projects.

February has gone ……….. thank God

Well spring is almost here now and this has a small degree of optimism. Here is why we should be positive: 10 reasons

The end user, (at the top of the Food Chain) cannot seek good deals on saving money, he cannot get rich quick on the stock market, he will not be topping up his pension options, he may take a ‘contract out on a banker’ but for all intents and purposes he may as well spend his mattress money on  new windows, kitchens extensions etc
The end user is best placed in this market of turmoil to get the best deal. He can pick and choose companies that will supply at below replacement cost and get deals for speed of spending, he has choice of who he wants to use.
The benefit of having U/S redwood available (stocks already now being replaced with new stock) has given more choice to existing customers to maximise the plum sizes. They are on stock at 225mm widths with some very special side board production 25 x 150mm which is clear as a bell! This stock is drier than most on the market. PLEASE check out the top joinery grade.
Machining work through our mill here is on a fast track turn round 7/8 working days, take full advantage.
Worktop production approx 7/10 days with an offer on workshop services for March oiling on the worktops is FOC for the first two coats.
Fresh sawn Euro Oak, despite the awful exchange rates on logs (and other imports for the Euro Zone) we have eased prices for March, this is useful because there is a small movement in the market here.
Cut to size offers in converting sawn sufficient to make orders [STM] to cut to size [CTS] is also affected by cutting the cost to convert. This is showing a benefit to our customers. We will shortly have a new multi-rip saw which will offer further benefits to our customers.
Collections from our yard as some of our valued customers will say, is easier and more accessible due to the reorganisation in the timber sheds. Still, please book an appointment with us. The turn round time is faster and there are better options [you can also take a few mins out then to see this superb U/S redwood on stock too!]
Gate making lead times are approx 10 days. We have access to automation now  if this is a benefit, bespoke gates are still in demand and we are keen to make them in Oak, Iroko, Cedar, Douglas fir, and even Idigbo if cost is an issue
Drying capacity, to dry other company’s timber is also an option, call the sales team for details.

Enquiries Please

Of course one may also argue the supply and fix fencing teams are ready, willing and more than able to take on any project that is commercially viable. Local government work is key; they have money, our money just like the banks.

In short please may we have any enquires you may have,  we have flexibility in the sales team to get the best results for all of you.

In the Euro Zone, the imports are costing more, margins are squeezed, and all importers are faced with a weak £ Sterling. US Dollar rates are also against us all. Please be cautious if you are tendering months ahead.

Some companies are down sizing, they are running stocks down and choice will become an issue, replacing stocks and knowing what to replace with is a ‘crystal ball job’. Trying not to over stock but offering the best choice as possible. France has commercially made a decision to ask for payment ahead of their normal terms by 15 days.

We need loyalty and regular payments, we will offer the best flexible prices and service we can. At the end of all this, together we will survive to fight another business cycle.

All Enquires Please
Remember we are - Small Enough to Care - Big Enough to Cope.

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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