{"id":88951,"date":"2025-06-11T06:09:23","date_gmt":"2025-06-11T06:09:23","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/estonias-wood-sector-shifts-focus-to-western-europe-as-distant-markets-lose-appeal\/"},"modified":"2025-09-18T17:30:41","modified_gmt":"2025-09-18T17:30:41","slug":"estonias-wood-sector-shifts-focus-to-western-europe-as-distant-markets-lose-appeal","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/estonias-wood-sector-shifts-focus-to-western-europe-as-distant-markets-lose-appeal\/","title":{"rendered":"Estonia\u2019s wood sector shifts focus to Western Europe as distant markets lose appeal"},"content":{"rendered":"

<\/span>The results of this year's Swedbank industry survey show that the Estonian wood industry has begun to recover and the sector plans to increase investments by 2025. Risks are seen in the uncertain economic environment and geopolitical developments.<\/p>\n

In this year's Swedbank industry survey, Estonia's wood industry stands out with several positive indicators: investment volume will grow by 13%, production volume by 7%, and sales revenue by 8%.<\/p>\n

\u201cEvery other entrepreneur predicts that profits could increase in absolute terms compared to last year, and in the eyes of about a third of companies, it could remain at the same level as last year,\u201d said Alvar M\u00e4llo, Head of the Forest and Timber Sector at Swedbank. \u201cIt is also positive that this year the volume of investments is expected to increase by about 13%, which is approximately 215 million euros for the Swedbank survey sample. At the same time, it must be acknowledged that the level of investments has not increased significantly since the pandemic \u2013 it can be said that the movement of capital into the sector has still been quite modest.\u201d<\/p>\n

Focus on internal efficiency<\/strong><\/p>\n

88% of wood industry companies plan to direct investments to increasing efficiency. \u201cCurrently, a lot of investments are being made in internal efficiency projects, which do not actually increase production volume or sales revenue, but help improve risk management and profitability. These are mainly energy-related projects: energy is produced and stored, equipment is replaced with more efficient ones, and so on,\u201d noted Henrik V\u00e4lja, CEO of the Estonian Forest and Wood Industries Association.<\/p>\n

New direction: Western European markets<\/strong><\/p>\n

The survey also shows companies' interest in entering new markets. Half of the responding companies plan to expand into markets that are new to them, primarily Germany, France and the UK (24%, 24% and 19% of respondents respectively). The current main target markets of the respondents are Denmark, Finland, Germany, Sweden and the Netherlands.<\/p>\n

\"While the timber sector currently has more distant markets in its portfolio, on the one hand, customs duties and on the other hand, competition from Russian timber in more distant markets force us to look for growth in Europe rather than abroad,\" said V\u00e4lja. \"For example, America has been one of the timber industry's target markets. In recent years, it has even accounted for 3% of export turnover, but due to the confusion surrounding customs, it is not clear what will happen. Now that Scandinavia has largely become a home market, growth potential must be sought across Europe. We must strengthen our presence in Western Europe, for example.\"<\/p>\n

Companies are forecasting around 4% wage growth and 3% headcount growth in the sector this year. 53% of companies state that there is a shortage of machine operators, but recruitment is complicated by the lack of necessary qualifications and skills.<\/p>\n

Risks: Raw materials, price pressure and politics<\/strong><\/p>\n

The biggest risks are considered by timber companies to be ensuring competitive product prices (80% of respondents) and the availability of raw materials (60% of respondents). \u201cThe main risks have not changed compared to last year,\u201d M\u00e4llo said. \u201cMany companies have emphasized that the state should create a stable and transparent economic policy that would encourage investment decisions. Entrepreneurs also believe that it is important for the state to show the sector as a smart, high-tech and sustainable industry, which is a very important part of the Estonian economy.\u201d<\/p>\n

\u201cI think the positive numbers from the survey mainly reflect how strong the business base we have now is. We have a historically strong foundation,\u201d V\u00e4lja said. \u201cBut if we now prioritize future trends, we see that our capabilities are stagnant or declining compared to our competitors, not growing. That\u2019s something to be concerned about.\u201d<\/p>\n

The 14th Swedbank Industrial Survey is the most comprehensive industry survey in Estonia. 212 Estonian industrial companies participated in the survey, 40 of which are wood industry companies. The total sales revenue of the companies in the sample is 4.6 billion euros and the companies employ nearly 21,500 people.<\/p>","protected":false},"excerpt":{"rendered":"

The results of this year’s Swedbank industry survey show that the Estonian wood industry has begun to recover and the sector plans to increase investments by 2025. Risks are seen in the uncertain economic environment and geopolitical developments. In this … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":50527,"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-88951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","topic-forestry","topic-lumber","topic-sawmilling","topic-wood-products","area-europe","area-global"],"acf":[],"yoast_head":"\nEstonia\u2019s wood sector shifts focus to Western Europe as distant markets lose appeal - 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\/estonias-wood-sector-shifts-focus-to-western-europe-as-distant-markets-lose-appeal\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Estonia\u2019s wood sector shifts focus to Western Europe as distant markets lose appeal - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"The results of this year's Swedbank industry survey show that the Estonian wood industry has begun to recover and the sector plans to increase investments by 2025. 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