{"id":86906,"date":"2023-10-19T08:35:21","date_gmt":"2023-10-19T08:35:21","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/crisis-looms-over-estonias-timber-industry-with-declining-demand-and-competitive-pressures\/"},"modified":"2025-09-18T17:26:57","modified_gmt":"2025-09-18T17:26:57","slug":"crisis-looms-over-estonias-timber-industry-with-declining-demand-and-competitive-pressures","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/crisis-looms-over-estonias-timber-industry-with-declining-demand-and-competitive-pressures\/","title":{"rendered":"Crisis looms over Estonia\u2019s timber industry with declining demand and competitive pressures"},"content":{"rendered":"<p>The timber industry in Estonia is facing a severe crisis as a combination of reduced demand and competitive hurdles continue to plague the sector. With decreasing sales revenues and profitability, industry leaders are urging immediate government intervention and policy reforms to restore competitiveness and stimulate growth.<span id=\"more-33904\"><\/span><\/p>\n<p>Andris Jegers, a partner at the KPMG audit firm, predicts a forthcoming decline in turnover and profitability, highlighting the challenging market conditions in Estonia's timber industry. Speaking on the \u00c4rip\u00e4\u00e4 TOP program, Jaano Haidla, board member of Graanul Invest, expressed concerns over the industry's disadvantageous position, citing higher raw material prices and stricter forest stocking regulations compared to neighboring countries.<\/p>\n<p>The industry's struggles have been further compounded by a decline in demand, particularly for lumber, attributed to inflation and high interest rates affecting the construction market. \"In difficult times, construction and the like are postponed,\" commented industry insiders during the program.<\/p>\n<p>In the face of these challenges, Haidla emphasized the potential role of state intervention, advocating for increased support for the renovation of apartment buildings to boost demand for timber materials. However, criticisms of Estonia's industrial policy were not far off, with industry experts lamenting the absence of dedicated efforts for the development of the timber industry.<\/p>\n<p>According to Jaano Haidla, Chairman of the Board of the Estonian Forest and Wood Industry Association, the industry's struggles are evident, with investments on hold and layoffs becoming a looming reality. He highlighted the difficulty in staying competitive due to high input prices, including energy and wood prices, emphasizing the need for immediate policy interventions to avert further deterioration.<\/p>\n<p>The significance of the timber industry to Estonia's economy cannot be understated, as it contributes approximately 700 million euros in taxes annually and supports over 50,000 jobs, primarily in rural areas. Additionally, it stands as the only sector actively sequestering carbon, thereby contributing positively to the country's environmental goals.<\/p>\n<p>Looking ahead, industry managers anticipate a challenging six months, with expectations of stagnant employment figures and a concerted effort to maintain investment levels. However, a projected decrease in product and service prices, as well as sales revenue, signals a worrying trend exacerbated by global commodity price fluctuations and diminished construction activities.<\/p>\n<p>Despite the grim forecast, industry leaders remain hopeful that collaborative efforts between the government and industry stakeholders can pave the way for a revitalized and competitive Estonian timber sector, aligning with the nation's climate goals while safeguarding the industry's financial sustainability.<\/p>\n<p>The country is now at a critical juncture, with the potential to implement initiatives that can not only bolster the industry but also fuel the nation's economic growth in the long term, in line with global climate objectives. Amidst the challenges, the Estonian timber industry remains resolute in its determination to weather the storm and emerge stronger than before.<\/p>","protected":false},"excerpt":{"rendered":"<p>The timber industry in Estonia is facing a severe crisis as a combination of reduced demand and competitive hurdles continue to plague the sector. With decreasing sales revenues and profitability, industry leaders are urging immediate government intervention and policy reforms &hellip; <a href=\"https:\/\/www.timberindustrynews.com\/ro\/crisis-looms-over-estonias-timber-industry-with-declining-demand-and-competitive-pressures\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":49943,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-86906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Crisis looms over Estonia\u2019s timber industry with declining demand and competitive pressures - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/crisis-looms-over-estonias-timber-industry-with-declining-demand-and-competitive-pressures\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crisis looms over Estonia\u2019s timber industry with declining demand and competitive pressures - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"The timber industry in Estonia is facing a severe crisis as a combination of reduced demand and competitive hurdles continue to plague the sector. 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