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

WESTS WOOD SHOW 2009 PHOTO REPORT - CLICK HERE

TOUGH TRADING TIMES

Conditions are still difficult; May has been tough.

Just to add insult to injury there is not a lot of timber around. There is a large quantity currently in shipping. Some time ago we reported on container traffic which was dominated by China. The down turn globally has meant that timber from Brazil for the decking trade is plagued by shortages, leaving the hardwood decking market in short supply. Layoffs in the mills and associated timber industries earlier in the year is now resulting that less timber is being put up for sale.

Africa has seen a levelling in prices on the Sapele front but Iroko is still slowly creeping upward due again to supply shortages.

We have learnt that the evidence of stick mark issues in the thinner Iroko is largely due to imposed faster turn round times,
especially from the Ivory Coast . The sticks used may not be the right species or the correct dryness, which can affect the surface of the timber in such a way that the timber has this ‘Dark Line’ across the board at regular intervals.

We have spoken to Importers, Merchants, and Agents who tell us they can do little about it. Iroko coming from other west coast areas such as Ghana, Democratic Republic of Congo and Cameroon is better, but stocks are less regular to ship. In the Congo areas supply is seasonal, affected by the rainy season. We do not want stick marks, but the ‘Just in Time Attitude’ is causing us ALL a problem. Those of us old enough to remember Beech being one of the most poplar species of hardwood will realise stick marks on the contracts were always sold ‘No defect’, but pressure from the end users then gathered momentum and merchants and importers were forced to change their method in use of their sticks which has now largely eliminated this issue, so West Africa PLEASE take note.

FINANCIAL WORLD

The strengthening pound against the Dollar and Euro [about time too] is very slowly creeping up. This is good news, imports are still expansive but there is hope. The Chartists  who follow trends by extrapolation are starting to see a linear shallow rise in Sterling’s fortune but we have some way to go yet! We want the rates back to 1.25/1.30 which is probably the best we can hope for. But when?

Are the banks lending to small companies? We are still not seeing the ‘Helicopter effect’ spilling money down to small businesses. In fact, the number of small business failures are the highest they have ever been. A positive note is that house builders, in a limited way are getting back to work, and estate agents are seeing the trade starting to become luke warm. In fact some firms have started to re-hire staff to balance the needs of the lower end house purchases. If sensible house lending gets under way the housing market may spark the ‘Green Shoots of Recovery!’

STOCK NEWS

In times like these it is difficult to maintain normal trading stock levels. There has to be a trade off. Cash flow is important to run the needs of the business. When trading is down stock levels fall.
From the customers point of view this can lead to less choice. At times like these alternatives need to be considered. Probably the most important factor that estimators must do is allow that extra waste factor to cover the best fit materials on offer.
 
If you are working in the general square edge areas (excluding Am cherry and Walnut) you would usually allow 40/45%. Now consider 50/55%, if the stock beats this then you will be Quids in, but selection is everything.

Gossip in trade is that stocks are a key issue. With shortages and sizes not being produced or shipped this will compound the problems. One final area to comment on is the rapid increases in the unsorted softwood prices due to mills which are idle in Scandinavia. Historically production sent 80% to pulp production and 20% for joinery timber, but reduced demand for pulp has resulted in the mills not sawing at all, resulting in little or no softwood on offer.

One very large co-operative group we have spoken to are not recruiting new accounts due to the shortage of available stock. Consideration is being given to those of their customers whose payment recordes are best!!

In the U/S redwoods for top joinery, the plum sizes are very rare and this situation is getting worse. We have forward ordered stock for all those who have started to use us for the softwood. We have had great feed back and we are glad it’s so positive. Because we are small, we will be better placed than others. Please keep in touch with our sales team to get good feed back.

‘What times are these!,……  it’s time to remember them in order to tell your Grandchildren!  (Churchill)

& FINALLY

At the beginning of this month we held our annual WESTS WOOD SHOW, and we had a fantastic two days. Our ethos has been to offer variety and try to have something different each year. This year’s event saw an 11” square beam hand hewn from an Oak log. We will continue to diversify, and if any of you would like to join us for 2010 and have something different to offer, please call Jo West to discuss it or email her on: enthusiast@wlwest.co.uk   See our special photo report of the show by clicking here.

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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