Australia’s stagnant building industry is having repercussions in timber producing areas such as Wauchope in New South Wales. Source: The Wauchope Gazette
Logging businesses refused to be specific on recent impacts on their activities, citing commercial confidentiality. However, the market demand for timber has declined significantly according to the industry.
James Jaggers, the Forestry Corporation of NSW acting Central Region manager said markets within the timber industry typically fluctuate but they are slow at present, resulting primarily from low demand within the construction industry.
“The slowing in demand is affecting all sawmilling businesses to some extent across the North Coast of NSW,” he said.
“The duration of the reductions in demand is not known, however it is likely to be closely linked to improvements in the numbers of new house construction and renovations.
“The Forestry Corporation of NSW is working with harvesting and haulage contractors to minimise the effects of the slow market on their businesses.
“While production forecasts are expected to be lower this year, the Forestry Corporation of NSW expects that contractual obligations will be met.
“The Forestry Corporation of NSW is also working towards establishing alternative markets to compensate.”
Boral Ltd, which operates the Herons Creek timber mill, has reduced the amount of logs it buys from local suppliers.
“There have been some reductions in Boral’s intake, in line with its wood supply agreements that allow for some flexibility with the market cycle,” according to the company’s group communications and investor relations manager, Kylie FitzGerald.
Earlier this month Boral said it would axe as many as one in three back-office jobs to ”right-size” the company at the bottom of the building cycle. Boral said it would cut 700 jobs in Australia.
The job losses would bite most heavily in New South Wales and came against the backdrop of a lacklustre local construction sector.
