PRESS RELEASE BY MBD...

UK TIMBER & JOINERY MARKET RESEARCH REPORT

RELEASED: JANUARY 2008

After researching the UK timber & joinery market development and taking into account various other factors the following conclusions can be drawn from MBD's report:

MARKET REVIEW 2003-2007:

The UK market for timber and semi-finished timber products is believed to have increased by 7% to a five year peak of £3782.3 million at MSP in 2007. Prior to that sales increased during three of the four years between 2003 and 2006, with the exception of 2005. Overall between 2003 and 2007 demand increased by a cumulative 13%. The growth during 2006 and 2007 is believed to be a partial reflection of price increases, while growth in volume terms is expected to be more subdued.

Demand for timber products has increased during the majority of the five year review period, with the exception of a 2% decline in 2005. In 2007 sales are believed to have reached a peak of £11.3 billion, representing growth of 4% in the year and of 8% in comparison with 2003. The decline in 2005 is predominately a reflection of the economic slowdown during the year, affecting levels of consumer confidence and spending, as well as a relatively static housing market. Prior to that the market was relatively robust, which was supported by high levels of consumer spending and a buoyant housing market.

MARKET FORECAST 2008-2012:

MBD expected the timber & semi-finished timber products market to increase moderately throughout the five year forecast period, with annual growth rates at between 1% and 2% in real terms. By 2012, demand is anticipated to reach a peak of £4018.9 million (at 2007 prices), representing real term growth of 6% compared with 2007. Overall, market development is expected to be partly driven by increased demand from the construction industry, as timber frame building is anticipated to gain further market share. This is supported by changes in building regulations and government plans to make new homes zero carbon rated, which favours the use of timber due to the material’s superior thermal insulation properties. Prices of timber are unlikely to fall significantly from existing levels, with further price increases expected in some sectors, at least in the short-term.

The UK market for timber products is projected to reach a peak of £12.25 billion (at 2007 prices) by 2012, following real term growth throughout the forecast period. Overall between 2007 and 2012, demand is forecast to increase by 7% in real terms. Demand is likely to be driven by further growth in the construction market and the fashion trend favouring timber as a material for both environmental and aesthetic reasons.

NOTE TO EDITORS:

Market & Business Development Ltd specialises in business to business market research. The range of reports and industries in which we operate in constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.

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