Joinery Industry Looks To Future After Uneven 2010

The joinery sector reflected on a year that, although uneven in terms of demand, generally exceeded the gloomy expectations that many manufacturers had held. Unfortunately, 2010 ended on something of a low, with a reduction in orders in the final quarter leaving many uncertain of their prospects for 2011.

Feedback from BWF member companies and a recent survey of senior executives, heads of trade organisations, editors and market researchers within the timber industry, have suggested that, although there is some confidence in the medium term, the joinery and timber sectors are preparing for a testing few months as the UK's slow economic recovery continues.

Despite a surprisingly strong contribution to GDP growth in the second and third quarters of 2010, construction activity contracted in December 2010 for the first time since February 2010. Although poor weather contributed to the decline, growth has slowed since the summer when the government confirmed heavy reductions in public spending on infrastructure projects and limited investment in new projects. 

"There's a real sense of the horns being drawn in, particularly since the comprehensive spending review." said BWF Chief Executive Richard Lambert. "I don't hear anyone saying they are confident, they're quietly optimistic. They think they'll manage but they're not gung-ho."

This is mirrored throughout the timber industry. Some 43% of respondents to the Medite 2016 survey of timber industry executives were 'quite pessimistic' about prospects for the UK economy in 2011, while 34% were 'quite optimistic'. The respondents were slightly more upbeat when asked about the prospects for their specific market sectors, 57% showed some optimism, with 33% pessimistic about the prospects for this year. There is a lot resting on the Government's belief that private sector investment will deliver an economic upturn, a belief which rests on, "some heroic assumptions about economic growth and the return of confidence", according to Richard Lambert. With many companies living 'hand to mouth'.