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

This Trading Month

What happened in September?

Historically the trade always does well in September, October and November, but September was very average. Mates in the trade are all saying the same thing. Poor sales, poor margin, poor choice, and with Sterling getting beaten up on the foreign exchanges around the world, we have more expensive  imports to consider yet again.
 
The Gurus had forecast a return for £ sterling to approx 1.25 Euro rate, but it has slipped away to under 1.10. The dollar rate has fallen to under 1.60

Exchange dealers see the Sterling as a less attractive option due to the GDP borrowing being so high (worse than some developing countries now) and the Bank of England’s ‘Quantitative Easing’ policy of printing more money to allow the banks to lend, to stimulate growth. This, it appears has not been very effective so far.

By lowering the exchange rates it is thought that it might help our manufacturing base to export more, by devaluation or the wrecking of our currency. The companies still manufacturing can probably take advantage of this, but the imbalance on the ‘Balance of Payments’ treasury figures makes terrible reading. As one of our customers has said more than once, “England will soon be an economy based on tourism only!”

Some interesting Statistics
Forestry Statistics 2009 UK home grown hardwood timber in per Thousand Green Tonnes.
 
In 1999 sawmills produced in green timber 227
In 2009 sawmills produced in green timber  67

Sheet materials
In 1999 chipboard production was 52
In 2008 chipboard production was  2  

Pulp mills
In 1999 approx 191
In 2008 approx 0                         

Firewood
In 1999 UK produced 150
In 2008 UK produced 300

This further suggests our native forestry is increasingly going into fuel/firewood markets. Firewood production is growing at an increasing rate, and now represents 69% of all the sawn green timber cut.
For every 7 tonnes of green timber will produce 1 ton of charcoal, source: www.forestry.gov.uk/website/forstats2009.ns

Sawn Hardwoods imported into the UK from 2004 – 2008 has fallen by 44%. This is a huge volume down turn.
From Jan to June 2009 this has fallen by a further 12%.

The economy is, we realise a global issue not just centred in the UK, but in order to pay for all this borrowing, taxation, VAT, public sector spending, defence, welfare, education and, of course, MP expenses will all have to go under the microscope. [again]

Stock News

There is now a keen interest in the U/S Redwood joinery softwoods. A staple in the trade,  to which we are humble beginners, but we are always on the quest for a quality and premium product.
In Russia in 2008 there has been a 72% fall on production to 2009 exporting only 51000m³ from 183000m³ in 2008. In passing, in 2006 they exported 274000m³ of softwood and although they have the world’s largest forested areas, due to no new investment, most of the mills have now closed. The average mortality age in Russia now is 59 for males and 70 for women.

In this same period 2008 – 2009 Sweden is down 4% Finland 41% Latvia 44%  demand for pulp logs drive the production of joinery grades. Only approx 10% will make U/S joinery.

Our own fresh sawn oak production is going OK. We are milling approx 15m³ a month with some machining in planing the beams and stop chamfering on offer.
 
We will shortly be starting our Through & Thorough Oak production from logs bought earlier in the year, ready to start the air drying process.

Fresh sawn has also become poplar in home grown Merchant grade Douglas Fir and Larch. We get the FSC logs from our local estate and mill them into a variety of sizes.

We will shortly have some logs of Pippy 54 & 27mm T/T Euro Oak K/D. So place any enquires with the sales team.

Soon, probably by late October, we will have access to lamination work and we would like to see what and how we are placed in the market. We have the opportunity to free issue material from a new manufacturing plant which has invested in new machinery to glue in length and in thickness.
We have looked into bringing in sections from the continent but so far this has proved impractical and too expensive. So this could be an interesting opportunity.
 
Watch this space!!

And finally ................Timber- it doesn't grow on Trees you know!!!

How ridiculous is that statement? Of course it does. But how many of you think about the reducing resource of longer and wider boards? Have you stopped and thought how difficult it is to find these trees? And then to find the ones that will be of a suitable quality? We suspect that you haven't. But perhaps you should, especially for your next projects that will require this size of timber. We raise the issue because we regularly receive requests for longer and wider boards, only for them to be cut down into much smaller sizes. Please don't request longer and wider boards if your project does not require them. They WILL command a premium price and we may well be able to meet your requirement for the smaller sizes from stock far quicker and at a better price. Don’t keep your projects a secret, we do ask about them for a reason!!

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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