\"The prices of lumber products cannot be drastically increased because people would no longer be able to buy them.\"<\/p>\n
That was the message from Jukka Vaara, managing director of Finnish wood products manufacturer Veljekset Vaara, as the company announced 11 layoffs following restructuring negotiations launched in May.<\/p>\n
The Tervola-based company, which employs more than 100 people, said the cuts will affect both production workers and salaried staff. The duties of seven employees will also be changed, and the company is preparing for possible temporary layoffs through the end of next year.<\/p>\n
While announcing the workforce reductions, Vaara argued that the difficulties facing Finland's wood products sector cannot be solved through higher lumber prices. Instead, he pointed to the larger problems affecting housing construction and affordability.<\/p>\n
According to Vaara, policymakers should focus on three areas: increasing harvesting in Finland's state-owned forests to improve raw material availability, reducing construction regulations that add to building costs, and easing banking rules that make residential construction financing more difficult.<\/p>\n
He argued that stricter banking regulations introduced over the past 15 years have significantly reduced access to financing for detached-house projects, contributing to weaker construction activity.<\/p>\n
The issue is lagging on Europe's forest products industry, where many producers continue to face subdued demand from the construction sector. In Vaara's view, restoring housing affordability and construction activity is more important for the industry's recovery than pushing for higher lumber prices.<\/p>\n
\"We have to make structural changes because costs are too high in the current market situation,\" Vaara told Finnish newspaper Lapin Kansa.<\/p>","protected":false},"excerpt":{"rendered":"
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