Construction
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UK’s Travis Perkins warns of challenging 2023
Travis Perkins, Britain's biggest supplier of building materials, warned of a challenging 2023 as housebuilders slow down projects and home-owners delay improvements due to the country's gloomy economic outlook. Travis Perkins, which sells bricks, timber and new kitchens, as well as equipment for large construction projects, said adjusted operating profit fell 16% last year to 295 million pounds ($355 million), behind a consensus forecast of 320 million pounds. The miss was blamed on restructuring costs from closing 20 smaller branches out of the group's 1,500, which Chief Financial Officer Alan Williams said was part of Travis Perkin's plan to prepare for a tougher year. Shares in the 200-year old group fell 5% to 993 pence in early trading. Britain's overall construction market is expected to shrink about 5% to 7% this year in volume terms, and Travis Perkins said this... Continue reading
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March 3, 2023
UK’s Travis Perkins warns of challenging 2023
Travis Perkins, Britain's biggest supplier of building materials, warned of a challenging 2023 as housebuilders slow down projects and home-owners delay improvements due to the country's gloomy economic outlook. Travis Perkins, which sells bricks, timber and new kitchens, as well as equipment for large construction projects, said adjusted operating profit fell 16% last year to 295 million pounds ($355 million), behind a consensus forecast of 320 million pounds. The miss was blamed on restructuring costs from closing 20 smaller branches out of the group's 1,500, which Chief Financial Officer Alan Williams said was part of Travis Perkin's plan to prepare for a tougher year. Shares in the 200-year old group fell 5% to 993 pence in early trading. Britain's overall construction market is expected to shrink about 5% to 7% this year in volume terms, and Travis Perkins said this... Continue reading
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May 4, 2021
US homebuilders pressure Biden Administration to rein in lumber prices
US homebuilders are upping pressure on the Biden Administration to rein in lumber prices, which remain at historic highs. The National Association of Home Builders (NAHB) CEO Jerry Howard and his senior staff met virtually last week with White House staff from the Domestic Policy Council, National Economic Council and the Office of the Vice President, the company said in a statement, in a far-ranging discussion that included mill capacity issues, mill worker shortages, and the impact of lumber prices on housing affordability crisis. The recent spike in lumber prices has added nearly $36,000 to the price of an average new single-family home and $119 more a month to rent a new apartment, according to NAHB estimates. The organization is urging the White House to hold a summit on lumber and building material supply chain issues and to temporarily ease 9% tariffs on Canadian lumber to... Continue reading
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February 28, 2023
Middle East: Boom in construction sector to fuel demand for wood products
The boom in the Middle East construction and building sectors is fueling the growth of the wood and woodworking machinery industries as they benefit from the increased demand for sustainable products (wood, timber, and wood products) and technologies. Dubai Wood Show will run from March 7 to 9 at the Dubai World Trade Centre. In its upcoming 19th edition, the expo is set to unveil a completely new event format. According to the organizers, Dubai WoodShow is gearing up to make a strong comeback as the industry is on a positive growth curve following the rise in the construction industry in the Mena region and, more specifically, in the UAE. This, as the ongoing construction projects in the region give a boost to the wood and woodworking machinery industry, they stated. According to the “UAE Construction Market (2022-2027)” report, the sector is expected to reach a value of... Continue reading
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June 23, 2022
Sanctions on Russia negatively impact Australia’s construction industry
With supplies of key laminated veneered lumber (LVL) and engineered wood products (EWPs) imported from Russia and Belarus, which accounted for 40-50% of these construction products, no longer available due to sanctions imposed on both countries for Russia’s invasion of Ukraine, Australia’s tight timber markets are now facing a severe shortfall of products. The shortage is already starting to impact concrete constructions for multi residential, high-rise, commercial buildings, and some civil works, as well as i-joist beams and timber flooring systems. Previously, Australia imported LVL and EWP from EU countries. However, the EU has also placed sanctions, restrictions, and tariffs on Russian and Belarusian timbers, and therefore are now using their timber supplies and production capabilities to meet EU members’ internal needs. This has prompted Australian timber industry... Continue reading
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March 18, 2021
Forecast: Global roundwood market expected to grow in the next years as demand rises
The global roundwood market is estimated at a huge figure of approx. $312B, which equals to near 2 billion cubic meters. In 2020, despite a slowdown in the market growth due to the pandemic, the roundwood market is buoyed by robust global demand from the packaging and construction industries. The increase in online sales as a result of the pandemic has boosted the market for cardboard packaging and wooden pallets for shipping. In 2021, the decline in mortgage lending rates spurred the U.S. real estate market to record growth. Given the social isolation and working from home, the construction of new suburban single-family dwellings posts solid gains, leading to an increase in demand for lumber and wood-based panels, as well as for those used in furniture manufacturing. Similar trends are more or less relevant for many countries in the world. Driven by increasing demand for... Continue reading
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August 11, 2020
COVID-19 pandemic expected to further slow the global construction activity
Global construction activity contracted across all region in Q2 due to the lockdowns to control the spread of the COVID-19 virus and the impact of social distancing on jobsite activity. It is estimated that during Q2, onsite productivity dropped by -12% and approximately 25% of all projects were halted. On top of that it is anticipated that cost escalations over the next year will put additional pressures on the markets. According to RICS’ Global Construction Activity Index, a measure of current and expected construction market conditions among construction professionals read -24 in Q2, highlighting both the hit to activity, and a subdued outlook. While this measure was negative across regions, it was lowest in the Middle East and Africa (-40), and highest in the Americas (-14). For projects that continue, social distancing and health and safety precautions will restrict... Continue reading
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August 11, 2020
COVID-19 pandemic expected to further slow the global construction activity
Global construction activity contracted across all region in Q2 due to the lockdowns to control the spread of the COVID-19 virus and the impact of social distancing on jobsite activity. It is estimated that during Q2, onsite productivity dropped by -12% and approximately 25% of all projects were halted. On top of that it is anticipated that cost escalations over the next year will put additional pressures on the markets. According to RICS’ Global Construction Activity Index, a measure of current and expected construction market conditions among construction professionals read -24 in Q2, highlighting both the hit to activity, and a subdued outlook. While this measure was negative across regions, it was lowest in the Middle East and Africa (-40), and highest in the Americas (-14). For projects that continue, social distancing and health and safety precautions will restrict... Continue reading
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June 23, 2022
Sanctions on Russia negatively impact Australia’s construction industry
With supplies of key laminated veneered lumber (LVL) and engineered wood products (EWPs) imported from Russia and Belarus, which accounted for 40-50% of these construction products, no longer available due to sanctions imposed on both countries for Russia’s invasion of Ukraine, Australia’s tight timber markets are now facing a severe shortfall of products. The shortage is already starting to impact concrete constructions for multi residential, high-rise, commercial buildings, and some civil works, as well as i-joist beams and timber flooring systems. Previously, Australia imported LVL and EWP from EU countries. However, the EU has also placed sanctions, restrictions, and tariffs on Russian and Belarusian timbers, and therefore are now using their timber supplies and production capabilities to meet EU members’ internal needs. This has prompted Australian timber industry... Continue reading
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March 3, 2023
UK’s Travis Perkins warns of challenging 2023
Travis Perkins, Britain's biggest supplier of building materials, warned of a challenging 2023 as housebuilders slow down projects and home-owners delay improvements due to the country's gloomy economic outlook. Travis Perkins, which sells bricks, timber and new kitchens, as well as equipment for large construction projects, said adjusted operating profit fell 16% last year to 295 million pounds ($355 million), behind a consensus forecast of 320 million pounds. The miss was blamed on restructuring costs from closing 20 smaller branches out of the group's 1,500, which Chief Financial Officer Alan Williams said was part of Travis Perkin's plan to prepare for a tougher year. Shares in the 200-year old group fell 5% to 993 pence in early trading. Britain's overall construction market is expected to shrink about 5% to 7% this year in volume terms, and Travis Perkins said this... Continue reading