Page 14 - FDMAsia Jul/Aug 2026

12 MARKET BEATS JUL/AUG 2026 FDM ASIA | www.fdmasia.com

Dire Situation Intensifies For This means not only fewer shifts, reduced working hours,

German Sawmills And Timber and the gradual dismantling of industrial production capacity,
but also a serious threat to regional economic activity, jobs,
Industry and industrial wood processing in rural areas.

After the sawmill and timber industry faced difficulties
The timber industry in Germany remains under immense obtaining wood from forests last summer, increased logging

pressure: a persistently weak construction market both by many forest owners has significantly improved the supply
domestically and abroad, high raw material costs, and global situation since the beginning of the year.
trade restrictions have been weighing on the industry for many At the same time, however, the construction industry in
months, according to carmen-ev.de. this country remains in crisis mode. Last year, the number of
With production having already fallen to its lowest level completed housing units was the lowest since 2012.
in the last ten years in 2025, further production declines of Even a slight increase in building permits offers only a
between nine and 10 percent are currently inevitable if this glimmer of hope, not a fundamental market recovery. Added
trend continues—with serious consequences for employment, to this are political conflicts that are slowing down global
regional economic output, and Germany’s position as an trade. Rising cost pressures are forcing domestic companies

industrial hub. in particular to further scale back production.
The German Sawmill and Wood Industry Association (DeSH) Compared to other European nations with timber industries,
is therefore calling for a crisis summit to develop a future structural disadvantages—such as the highest raw material
strategy for wood processing in Germany in collaboration and energy prices—lead to significantly rising production costs,
with policymakers and the business community. thereby particularly weakening the international competitiveness
The economic situation in Germany’s sawmill and timber of the German sawmill and timber industry.
industry has deteriorated dramatically once again since the To counter this trend, the DeSH is calling for an emergency

start of the year. In addition to continued weak demand from meeting between political and business leaders. The goal
the construction sector, the hoped-for spring upturn has failed must be to secure the supply of wood, maintain international
to materialize this year. competitiveness, and ensure the long-term future of wood
At the same time, global political tensions and increasing processing in Germany.
trade barriers are limiting sales opportunities in international With over 2,000 companies, around 30,000 employees,
markets. and annual revenue of up to 14 billion euros, the German
While the European sawmill and wood industry is consolidating sawmill and wood industry forms the heart of industrial wood
through mergers and acquisitions, German companies are processing. Germany is the European leader in the production
coming under increasing pressure due to difficult operating of lumber and ranks fifth worldwide.

conditions. Domestic companies thus secure the raw material base for
Production had already fallen to its lowest level in the past key industrial sectors such as the construction and packaging
ten years last year. If the operating conditions for domestic industries.
wood processors in this country do not change in the coming As the link between forests and wood utilisation, the
months, the production of lumber in Germany will decline sawmill and wood industry makes a significant contribution to
significantly by a further nine to 10 percent this year, according sustainable value creation and the development of upstream
to internal association surveys. and downstream value chains based on domestic raw materials.