Plywood suppliers in U.K. are reporting high demand on most product categories, with key end markets growing in line with an accelerating UK business.
While some predict this may change through the third and fourth quarters, however, the plywood market has remained price-rise resistant and margins is still tight. Another issue in the sector is meeting the requirements of the EU Timber Regulation (EUTR), with plywood reported to be regarded as particularly high risk for illegality by the country’s Competent Authority the National Measurement Office (NMO).
The key driving factors for UK plywood sales is of course construction where the promise continues to improve. The Construction Products Association (CPA) has now revised its 2014 growth forecast for private sector housing starts up to 18%, which, with social and local authority starts, could take the total to between 155,000 and 160,000.
Other big plywood consumers, furniture and shopfitting, are not growing at such a speed, but both are in the process of recovery.