The relative weakness of EU currencies, combined with a strong focus on reducing costs and improving efficiency in the European wood sector and the slow growth of domestic consumption, contributed to a sharp rise in EU exports of wood products to non-EU countries between 2009 and 2015 (see chart), as ITTO reported.
In 2015, the value of EU exports of wood products were running at their highest ever level at over euro20 billion. In 2015, the EU had a euro3 billion trade surplus in wood products which compares to a euro3 billion deficit before the financial crises. EU export growth has been concentrated in sawn wood, joinery (notably flooring and glulam products) and wood furniture.
Although around 30% of EU wood product exports consistently go to neighbouring European countries (mainly Switzerland and Norway), since the global financial crises there has been a significant in rise in exports to Africa, the Middle East and China alongside traditional markets in North America and the CIS.
For wood exporters selling into the EU, the weakness of the euro and sharp rise in the EU’s wood trade surplus imply intense competition from domestically harvested timber and manufactured wood products. Due to the wide diversity of wood manufacturing activities in the EU, this is true of nearly all wood sectors.
Even in those wood sectors where European manufacturers have traditionally been weak and more dependent on imports, such as in supply of durable goods for outdoor use and in appearance grade wood, new innovative products are taking share from external suppliers.
Key innovations include a wide range of new surface finishes to enhance the appearance and performance of panel products, and thermal and chemical modification processes to enhance the durability of domestic wood species.
At the same time, with traditional markets growing only slowly, EU wood manufacturers are developing new products designed to extend the range of wood into new sectors traditionally dominated by other materials, notably steel and concrete.
For example, EU production of cross-laminated timber – a product which can successfully compete with steel and concrete in high-density urban construction – increased from 100,000 m3 in 2005 to 700,000 m3 in 2015.
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