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FSC & PEFC Certified Products
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PEFC PEFC/01-31-140
Promoting sustainable
forest management
www.pefc.org
Dec. 2015

2016 Prospects and Opportunities

The New Year beckons with the promise of a lot of the same things we have seen and faced in 2015. The rise and fall of the NZ dollar remains a challenge for us all. Exporters and Importers alike I suspect would like some stability and that is not a happening thing. The biggest worry for us is the investment we make in stock and the forward trends. The lead times and costs for our stock has seen a dramatic increase in costs of holding stocks and seems likely to go higher.

Western Red Cedar as an example remains in tight supply with firm to strong demand across the World. The prices in Canada are at record levels, we are seeing this reflected here. We are all worried and concerned about this but what do we do? There is no logical alternative awaiting the fall of the Cedar market. There are alternatives but lots of factors make each and every one of  our timbers different. Of course Western Red Cedar is not alone facing supply issues. American White Oak is facing the Bourbon Barrel onslaught. It seems that the demand for Bourbon is stronger than White Oak lumber. What ever the reasons and factors good quality logs are very expensive and sawmillers are not getting enough. So that leads to costs for us and others of thicker sections and wider width of White Oak going up. Kwila on the other hand seems to be facing market resistance in  some market, so much so that prices are falling. This is remarkable given it is a rainforest species we are not yet seeing being offered as well managed???? So maybe the end for Kwila is getting closer.

Building activity seems destined to continue to strengthen on the back of stronger immigration etc. The demand for building products and trades is likely to see resources tested further. we are seeing some fabulous projects art complete and others finished with more to come.

Prospects for further growth in 2016  look good, and given the building industry prospects we should all have a good year.

Furniture Round Up

New Zealand Real GDP Growth Graph

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Previous ArticlePrevious Article
Current Feature Stories
December 2015
/imagesdb/Issue/50e4ece2-b683-48c1-b54c-6fca570c97db.jpgStaff News
2015 saw a number of changes in staff and we said good bye to some good people but we have been fortunate enough to fins some great new people and look forward to being able to do better than ever in 2016.
/imagesdb/Issue/fc22ac2b-cecf-44f9-b3e8-35cf13c4a277.jpgAccoya has a big boost in production coming
Accsys Technologies recently announced a joint venture with Solway to boost production at the Arnheim production facility nearly doubling capacity by 2017. So a big boost to Accoya supply is coming.
2016 Prospects and Opportunities
All the data and prospects point towards 2016 being busy and even better than 2015. Our biggest hurdle is managing the imported inflation some being the falling NZ dollar
/imagesdb/Issue/037d3f9f-e6ac-4800-b8e4-a02b01a48833.jpg2015 in Review
2015 has seen increasing building activity and a turning point for many of us to some tough times. 2016 looks promising and exciting. Bring it on.
/imagesdb/Issue/535a4d63-2ee9-4877-9a4d-55e90fc19201.jpgXmas Greetings
Xmas is only a few sleeps away and thank goodness. 2015 has been a real busy year.
Current Feature Stories
September 2015
/imagesdb/Issue/f324da3f-5237-4fff-9368-59fd36a53857.jpgStaff Updates
A few changes and additions all in Auckland.
/imagesdb/Issue/c7e6abb8-eded-4671-a075-6c365ccfacf7.jpgBlack Butt decking a new non tropical choice
Black Butt decking provides a non tropical choice to build decks and still use a class 1 durable hardwood.
/imagesdb/Issue/d75b42f9-772a-43f1-a11b-6719e30b728c.jpgSupply chains
Supply chains are groaning at demand for key items. The growth in demand after the GFC has been slow and has seen a large number of sawmills here in NZ and elsewhere close and go broke. This is leading to shortages in supply as the remaining suppliers struggle to cope.
/imagesdb/Issue/b5dc470d-607c-417f-8cf4-bd6d27a1af74.jpgBuilding Activity
Data we see coming through suggest continuing demand for building materials and weather boards as an example are flying out the door. So prospects for Building Supply merchants should be okay.
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TIMSPEC (Timber Specialist Limited) PEFC & FSC Certified Products are available on request
Auckland
64 Stoddard Road
Mt Roskill
ph: (09) 620 0260
fx: (09) 620 0261
web: www.timspec.co.nz
Carterton
30 Kent Street
Ph: (06) 376 9381
Fx: (06) 379 9382
email: shane@timspec.co.nz
Christchurch
9B Francella Street
Bromley
ph: (03) 384 5287
fx: (03) 384 5289
email: gareth@timspec.co.nz
PEFC
PEFC/01-31-140
Promoting sustainable
forest management
www.pefc.org
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