And when will construction and housebuilding firms see the benefit?
Supporting customers to overcome market volatility
As timber prices remain seemingly out of control with monthly spikes of up to 23% and an average increase of 82% over the past 12 months, we ask the question, when will timber prices actually fall? And when will the construction and housebuilders see the benefit?
Not to be too dramatic but…
For some, the recent pandemic has been a little like a nuclear explosion for business…
The birds were singing, the sun was shining, businesses were thriving (even with the uncertainties of Brexit looming)… Then suddenly boom!
First comes the blast and the sudden shocking impact it brings, mass instant disruption and active lockdowns that froze businesses and people in their tracks for months on end.
Next, the shockwave. As you respond and adapt to this extended period of uncertainty. Not knowing if everything is safe, at a time of false dawns and further extended disruption.
And now the fallout. We are only truly starting to see the full extent of recent events on a global and local scale as the radioactive dust begins to settle.
For the timber industry, wider construction, and house building sectors, it doesn’t take a brain/tree surgeon to understand the current impact on demand and the price of raw materials.
With global production and stock levels at an all-time low, supply chains bottlenecks, plus labour, resources and skills shortages mounting, combined with the challenges of Brexit and the globally increased demand for materials there are seemly dark days ahead with endless rises on the horizon, or at least that’s how the press wants you to feel.
Here at Nuneaton Roof Truss, we have been trading for over 20 years and in that time, we have seen the market change exponentially with the price of raw materials rising year on year, increased inflation and wider market costs making trading challenging. However, for all the predicted doom and gloom we believe that simply is not the case. Yes, prices are higher than they were 2 years ago and there are many factors as to why however, innovation, smarter working practices, new technologies and processes enable us to counterbalance cost by driving greater efficiencies and speed.
How we are keeping prices down and innovation up
As we celebrate our 20 years as a family run business, we are proud to have grown to be one of the largest independent suppliers of engineered timber in the UK. With our reputation for quality products, sustainability, value, and service our national and local customers trust us to deliver the best at a competitive price.
As we continue to expand with the investment of new facilities, cutting edge equipment and the addition of skilled staff, we not only invest in efficiency gains and expanding production capacity by 30% but also in the people and communities we serve.
Embracing wider environmental pressures, we are moving the industry forward. PEFC and BM TRADA certified we only use wood that has been sourced from sustainably managed forests, plus we are investing heavily in sustainable supply chains to reduce our carbon footprint and have been awarded FORS Silver award. In addition in partnership with Coventry City Green fund, we are proud to have installed cutting edge biomass boilers to follow the guiding principles of the Circular Economy to ‘reduce, reuse and recycle’ waste into direct energy to power our growing facilities which remove the use of fossil fuels, reducing emissions and the build-up of global greenhouse gases.
We are known in the industry for quality, speed and for sustainability which is one of the main reasons we have managed to stay buoyant over the recent challenging years. We understand and listen to our clients and with the increased market demands we were one of the first to implement round the clock production to ensure we have the shortest lead times in the market.
There is no time to rest on your laurels which is why we continually listen, adapt and respond to both the challenges and opportunities we see for our customers. This is why we are excited about what the future holds.
So, what does this mean for pricing?
As the market and Covid pressures ease, analysts predict production levels across Europe, the US and Canada will begin to normalise as will global supply chains into 2022. The market sees timber stocks returning to usual standards within the first quarter with pricing beginning to reduce through Q1 and then into Q2 Q3, which is great news for the industry and the timber, housebuilding, and construction firms.
With construction project margins further squeezed we are committed to supporting our partners in challenging times and can ensure we are doing everything we can do to secure the best possible price driven by innovation and industry know-how. Our team is committed to supporting our customers to come out of this stronger than ever before and we look forward to what the future holds together.
As a trusted supplier and partner, we aim to keep our customers updated the moment we find out about any major changes in the timber industry and we encourage you to reach out and seek regular advice from us.
Your patience is appreciated, and the market will recover soon, we will get there.
Why choose Nuneaton Roof Truss?
Nuneaton Roof Truss is the manufacturer of choice for all engineered timber requirements. Whether you’re planning one house or many, housebuilders, and construction firms all over the UK put their trust in us.
If you’re interested in our industry-leading, eco-friendly services, click here to get a quote or call us on 02476 327722 to find out how we can support your business and projects.