the timber network

At the ZOW Supply Fair for Furniture Industry in Bad Salzuflen, the exhibitors were mainly confident when considering the current year. This good mood is based on the German prospering economy. A lot of them are expecting a moderate to considerable growth for 2012. The impulse has been given in January by the IMM International Furniture Fair. Incoming orders gave hope to the furniture producers. At least in Germany the sector is flourishing. One of the motives is considered to be the low unemployment rate. Furniture purchases, postponed until now, are taking place easier. The external markets are considered rather cautiously. The improvement started in 2011, which was considered a rather good year for suppliers of the furniture industry. Turnover growth rates between 5 and over 20% have been announced. High commodity prices remain the main concern. Often, they cannot be entirely passed on.

Producers of basic wood materials perceive a certain alleviation of the market distress due to factory closings in Bischweier and Ebersdorf. Thus, other factories can once again operate at full capacity, they say. The mass deficit caused by these closings is considered to be already covered. Nevertheless, some of the secondary processors reported that during 2010/2011 they encountered temporary supply problems on raw splint and MDF. Meanwhile, this supply has been ensured at a high price level. The same applies to the raw material supply for basic wood producers. Log prices have stabilized at a high level, without mass deficits. The ratio between the material and thermal use has also been leveled off. Excessive cost increases have been observed for glue, due to high crude oil price. Yet, for 2012, the producers are confident, hoping for a slight turnover gain if prices remain stable.

Secondary processors such as profile wrappers profit also from the strong German market. Exports are not so lucrative. The increases in price of raw flake boards could not be compensated in most cases. A price increase for small clients was possible, but especially in case of large consumers the price pressure prevailed. Since 2008, the price of raw splint increased by more than 50%. Last year alone saw a 15% increase. Therefore, for 2012, the secondary processors oscillate between hope and incertitude.

For traders and solid wood suppliers, 2011 was a good year with considerable growth rates. 2012 is also expected to bring an increase, although somehow lower. For the majority, the year had a very good beginning, the January figures being partly better than in 2011. Prices for hard wood logs are stable and even show a slight increase. Purchasers of African lumber complain over scarce reliability of consignments.

The problem child of the sector is the inlay segment. There is no cause for joy, the market being still in decline, due to a lack of innovation. Only special products outside the furniture sector, such as snowboards, had good sales. The designs of the synthetic surfaces are too good, flake boards with decorated surfaces can be processed better and easier. Another opinion was that the throw-away mentality of the society is to be blamed. But there was also self-criticism: one of the widespread opinions was that the sector had been in deep sleep for 30 years now.

In fact, only one inlay producer, Rohol company, brought new ideas regarding products and presentation. The Rohol raw saw inlay made even the kitchen industry to reconsider the technique, although they took a leave from inlay decades ago.