A current mood barometer from the German Sawmill and Wood Industry Association (DeSH) revealed a surprisingly robust - but nevertheless poor - current business situation among its members. In the first half of 2024, for example, the somewhat more stable timber construction within the ailing construction industry cushioned sales somewhat. For the near future, however, only expansion and renovation offer some hope. Margins are also reduced by various costs. In addition, there are enormous bureaucratic hurdles. DeSH President Dr. Stephan Lang, General Manager Lars Schmidt and Managing Director Julia Möbus classified the results of the association's internal survey as well as the effects of the weak economy and the crisis in housing construction as well as the EUDR at a press conference.

Companies feel the impact of the construction crisis

Of the companies surveyed, more than half of which were SMEs and predominantly softwood companies, 40% rated the current business situation as bad - 6% as good. Similar conditions were found in incoming orders. 30% rated the business outlook as worse - 3% better. Around three quarters currently see the construction industry as the biggest economic challenge for their company, followed by staff shortages and raw material costs. Lang used an example to illustrate the competitive disadvantage of German companies on the global market: a sawmill with an annual sawing of 800,000 cubic metres has a margin that is 5€/m3 lower than that of a company of the same size in Finland due to the different energy costs alone.

EUDR cannot be implemented

In terms of bureaucratic burden, the application phase of the EUDR at the end of the year is at the forefront. 94% of companies do not feel able to implement the regulation within the specified deadline under the current conditions. "The survey makes clear what we as an association have been communicating for months: the EUDR in its current form is neither implementable nor practicable. Rather, it threatens to lead to distortions in the timber markets and permanently weaken the domestic industry," explains DeSH Managing Director Julia Möbus. In addition to many unresolved questions and a lack of technical requirements, more than three quarters of companies fear competitive disadvantages in international trade, but also compared to other materials, as alternatives with less bureaucracy are likely to be more attractive for planners. There are also concerns about the supply of raw materials from domestic forests if mobilization in private forest ownership fails due to the flood of requirements.

Politics must act

"The results of our association survey not only provide insights into the current situation of the sawmill and wood industry, but also underline the appeals that have been coming from the entire economy for months: without decisive political action, there will be no quick recovery," emphasized Lang. "Wood is a raw material of the future and the industry at the interface between the forest and wood construction is central to the sustainable development of the economy and society. Instead of additional bureaucratization, we need reliable framework conditions and the removal of existing obstacles to the use of wood."

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