Report

Planting the seeds of productivity in the UK Timber industry

10.6.24 2024

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David Leslie, who leads one of Britain’s most innovative timber companies, shares his insights on how investment in people, technology, and sustainable practices can help the UK timber industry thrive and drive productivity in forestry and construction.

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Where have you invested to make yourselves more productive?

David: Investing in people is absolutely key to the business. We have a very loyal core of staff, and they are critical to our success. Without good people, there’s no sawmill and no industry!

This focus on people extends to suppliers, customers, and contractors, who are all vital in our supply chain to market. In sawmilling, for every person working in the mill, there are probably four to five working outside of it, so investing in those relationships is critical.

What about your product ranges, in particular your engineered wood product, the I-joist? Can you tell us more about that?

David: The I-joist is a product we have produced here in the UK since the 1990s. We’ve expanded production from hundreds of thousands of linear metres to a capacity of 20 million today. As building codes change to require better insulation, walls need to be thicker, and a James Jones Wall-Joist is perfect for that as it stops cold bridging between the outer and inner wall. We’re starting to see some traction with this new wall joist product in advance of standard changes that will come in next year.

How will such innovations impact the construction industry, which struggles with inefficiency and low productivity?

David: Wood, and timber frame construction in particular, has major benefits in lowering the carbon impact of building. But it’s also about enabling more off-site manufacturing, which allows things to be done more efficiently, with less labour, and more safely.

Innovating with wood can have a huge effect on the number of houses we can build, especially with labour shortages. It keeps costs down and, critically, it can significantly reduce the carbon impact of housebuilding.

If we can deliver the right commercial forestry and connect the construction industry to innovative products like yours, that has to boost the country’s productivity, right?

David: We’ll never be fully self-sufficient in timber—there’s too much pressure on agricultural and conservation land, and too many people. But it’s about maximising what we have and making our forests as productive as possible within reasonable guidelines. The UK has a very good forestry regulation system. A modern forest can have a high degree of biodiversity while still being productive, especially with conifers in Scotland and Northern England.

It’s very important that the government continues to support this financially through carefully targeted planting grants. But they must also maintain a reasonable regulatory balance. Over-regulating will decrease productivity and lead to offshoring, with timber then imported from places like South America, Africa, and Asia, which can often be less regulated.

Timber demand globally is set to more than double by 2050. We’re already importing 81% of our timber requirement in the UK and are the second-largest net importer of timber in the world, so we must maximize the commercial opportunity of our woodlands while balancing other needs like conservation and public access. The government’s role is to maintain those guidelines.

A strategic land use framework has been discussed to better prioritize how we use land, as currently things like agriculture, biodiversity, forestry, and development are not always optimally allocated. Do you think that could help?

David: There’s certainly land being used for biodiversity that could be productive forestry while still achieving biodiversity aims. Converting farmland into non-timber producing uses is sometimes the worst outcome. Wherever possible, if land can produce timber, the government should prioritize that. But that’s not always the case currently—timber production is not always the top priority.

The planning system tries to balance different priorities. But you’re right that a strategic land use framework should clearly lay out those top priorities for the country. Then the planning process can focus on delivering them. Without that, we’re not really prioritizing anything effectively, are we?

David: Exactly. Another key is that investment in sawmills is very expensive. We have to keep up with health, safety, and environmental standards while also staying competitive with Europe. That requires major ongoing investment.

But that investment relies on a continued, steady wood supply. While planting new trees is good, it’s critical that we maintain the productivity of our existing woodland. If those decline in output, the whole system gets less efficient, and we lose available timber supply. There’s a very real risk of that happening.

The current 25-year timeframe is making investors nervous about further investment in sawmilling. If you knew oil was running out, you’d stop investing in diesel vehicles. The dynamics are the same here—without supply certainty of enough of the right material, investment inevitably will shift elsewhere in Europe or further afield.

Let’s end on an optimistic note. Paint me a picture of what a thriving UK timber industry looks like if the government gets that land use balance right. What would the industry’s contribution be to Britain’s productivity?

David: There’s great potential for a circular economy with timber. Trees grow, you harvest them to store the carbon in products, then replant. At the end of life, you reuse and recycle the wood. Throughout that process, you’re reducing manufacturing and labour costs.

As a country importing more than 80% of its timber, there’s a big opportunity to source more locally and reduce transport miles and costs, producing and selling timber as locally as possible, and making products that are more efficient and longer-lasting in their applications.

 

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Tim Barratt

Tim Barratt

Partner, Head of Forestry

Tim leads our specialist forestry team, covering strategic asset management, valuations, sales, acquisitions as well as EIA and professional contracts.

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