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As a manufacturer of wood products for the domestic and foreign construction industry, the German sawmill and wood industry is directly affected by the weakening construction industry and is facing economic challenges.<\/span><\/p>\n A survey of the association's member companies illustrates the tense situation: \"More than half of those surveyed rated the current business situation as bad. Almost 80 percent are already seeing significant production cutbacks,\u201d says \u00a0DeSH President J\u00f6rn Kimmich,. The survey with 96 participants covers cutting capacities of more than 24.5 million m\u00b3 and thus paints a representative picture of the industry and the challenges.<\/p>\n \u201cIn particular, the significantly reduced demand in the construction sector in Germany is putting production under pressure. Due to weak foreign markets, exports will hardly be able to act as a valve in the current year. As a result, 60 percent of those surveyed report a poor domestic order situation, while the proportion for other countries is 40 percent.\u201d<\/p>\n Companies expect the economic situation to worsen in the coming months. The domestic market remains the greatest risk. At present, 95% of the cutting capacity is already affected by production cuts and around 60% of those surveyed do not expect demand to pick up, but rather a decreasing number of domestic orders and thus further production cutbacks.<\/p>\n \u201cWith the current economic conditions, the conditions for the timber market have also changed. In view of the slump in demand for sawn timber, companies are increasingly under pressure. Raw material, energy and labor costs are becoming an economic challenge,\u201d explains Kimmich.<\/p>","protected":false},"excerpt":{"rendered":" As a manufacturer of wood products for the domestic and foreign construction industry, the German sawmill and wood industry is directly affected by the weakening construction industry and is facing economic challenges. A survey of the association’s member companies illustrates … Continue reading