The German wood industry is experiencing a sustained downturn, with key segments reporting significant declines in sales and production. Industry representatives are calling on policymakers to intervene, warning that without a change in course, the sector\u2019s recovery could be delayed until at least 2026.<\/p>\n
According to figures from the Main Association of the German Timber Industry (HDH), total industry sales fell by 7.9% in 2024 to \u20ac37 billion. The downturn affected nearly all branches, with the wood-based materials sector declining 9%, construction-related wood products down 8.6%, and the furniture industry dropping 7.4%. The sawmill and wood packaging industries also recorded losses of 6.5% and 5.2% respectively.<\/p>\n
\u201cThe falling numbers reflect the combined impact of a construction crisis, excessive regulation, and weak consumer demand,\u201d said Dr. Denny Ohnesorge, Managing Director of HDH. Building permits fell sharply in 2024, while employment in the timber sector declined by 4.4%. The number of companies with more than 50 employees dropped by 2.8%.<\/p>\n
HDH is urging the federal government to support the construction sector through reduced bureaucratic burdens, stable funding conditions, and incentives for climate-friendly building. The association also emphasized the need to secure recent investments in serial and modular wood construction. \"Without a political turnaround, the crisis will continue until at least 2026,\" Ohnesorge stated.<\/p>\n
The Federal Association of Wooden Packaging, Pallets, Export Packaging (HPE) also raised alarms about the availability of wood for the packaging industry, pointing to supply issues that are affecting key export sectors.<\/p>\n
\u201cGermany\u2019s economic recovery is being held back,\u201d said Marcus Kirschner, Managing Director of HPE. \u201cOnly 8% of our member companies can supply industry as usual. Many are reducing or suspending production due to lack of sawn timber.\u201d<\/p>\n
HPE has submitted its concerns to both the Federal Ministry of Agriculture and the Federal Ministry of Economics, warning that packaging shortages are impacting automotive, mechanical engineering, electrical, chemical, and food sectors. Delivery delays are increasing, and companies are facing penalties due to late shipments.<\/p>\n
In response, HPE proposed a 12-point plan aimed at stabilizing supply. The association rejects export and logging restrictions as ineffective and instead calls for a discussion on the environmental and economic implications of exporting carbon-storing wood. Kirschner suggested that exporting wood could be treated as carbon leakage and made subject to a CO\u2082 pricing mechanism to encourage domestic use.<\/p>\n
Another priority for HPE is strengthening regional supply chains. According to the association, small and medium-sized sawmills have played a key role in preventing a collapse in wood packaging supply. Kirschner emphasized the importance of maintaining a reliable roundwood supply for these sawmills and called on state and municipal forest owners to fulfill their role in supporting the domestic market.<\/p>\n
\"The concentration of market power in a few hands leads to price and volume control,\" Kirschner said. \"Sustainable forestry in Germany can supply enough wood, but we need regional chains that are stable and long-term.\"<\/p>\n
The association also warned of further strain as global demand for wood increases. \"Even if the U.S. lumber market cools, we expect the situation to worsen,\" said Kirschner, citing growing demand in Asia, Australia, and Europe. \u201cGermany risks losing out on global opportunities if the wood packaging sector cannot meet demand.\u201d<\/p>","protected":false},"excerpt":{"rendered":"
The German wood industry is experiencing a sustained downturn, with key segments reporting significant declines in sales and production. Industry representatives are calling on policymakers to intervene, warning that without a change in course, the sector\u2019s recovery could be delayed … Continue reading