With a weak construction economy, stagnating sales prices and significantly rising costs for raw materials, energy and personnel, Austria's sawmill industry has been holding its own in a difficult environment for almost two years, according to DI Markus Schmölzer. As the chairman of the Austrian sawmill industry announced on the occasion of the International Wood Day 2024 in Klagenfurt, the industry produced 10% less sawn timber in 2023, while a slightly increased production volume can be expected for 2024.

The timber trade painted a similar picture and is currently facing sales and revenue losses in almost all areas. As KR Franz Teuschler, deputy chairman of the Austrian timber trade, explained, the packaging sector is doing better than construction, but has also come under pressure. Accordingly, the hope is that the next federal government will adopt a more active economic policy with impulses for housing construction and renovation measures that will increase value creation in the country.

Exports of softwood sawn timber from Austria fell by 8% in 2023. In the current year, volumes increased by 8% up to May. However, the increased sales costs could not be compensated for. But the biggest construction site in foreign trade remains the EUDR. "In more than 12 months after it came into force, the EU Commission has not succeeded in answering key implementation questions in such a way that our companies can apply the EUDR in a legally secure and economical manner," criticizes Schmölzer, adding: "The time that has passed so far means that our companies do not have enough time to take measures and, for example, adapt their IT systems. It is therefore fair and necessary that our industry is given a longer implementation period of at least 12 months."

Data and supplier protection continues to cause massive uncertainty in the timber trade. Teuschler explains: "It cannot be the case that a trader has to disclose all of his upstream suppliers to his end customers. Only the auditing authority should have access to this. Otherwise, market participants could be bypassed and forced out of the market. So far, there has been no proposal from the EU Commission on this problem." The sawmill industry and timber trade are sticking to their fundamental criticism of the EUDR. Compared to the bureaucratic effort, it does not add any value and harms small and medium-sized businesses. Instead, they would like to see a Green Deal that allows the forestry and timber industry to make its contribution.

Source:  Fachverband der Holzindustrie Österreichs