The mood in Germany\u2019s wood industry improved in August after a sharp deterioration during the first half of 2026. The recovery remains highly uneven, however: timber construction companies report a comparatively strong current situation, while sawmills, furniture manufacturers and wood-based panel producers continue to assess business conditions negatively.<\/p>\n
The Main Association of the German Wood Industry (HDH) business climate indicator for the German wood industry rose to \u221215.8 points in August, up from \u221219.9 points in July. Companies were slightly less dissatisfied with their current situation, while expectations for the next six months improved more markedly.<\/p>\n
The assessment of current business conditions increased from \u221217.8 to \u221216.6 points. The expectations component climbed from \u221222 to \u221215 points. Both indicators therefore remain negative, but the August results indicate that the deterioration recorded earlier in the year has at least slowed.<\/p>\n
The improvement is also substantial when compared with June, when the combined HDH indicator had fallen to \u221232.8 points. This does not yet represent a recovery in activity: it primarily means that companies no longer expect conditions to worsen as rapidly as they did during the first half of the year.<\/p>\n
Germany\u2019s wood industry also continues to perform considerably worse than the wider manufacturing sector. The ifo business climate value for manufacturing improved from \u22129.6 points in July to \u22124.2 points in August, leaving a gap of almost 12 points between manufacturing as a whole and the wood industry.<\/p>\n
Construction provides the only positive readings<\/strong><\/p>\n The headline figure conceals an unusually wide difference between individual sectors. Based on the average of the past three months, only timber prefabricated construction and other construction-related wood businesses assessed their current situation positively.<\/p>\n Timber prefabricated construction recorded a balance of +30.2 points, while the wider construction-related segment reached +9.8 points. At the opposite end of the market, the sawmill industry stood at \u221244.8 points, the weakest result among the principal sectors surveyed.<\/p>\n Furniture manufacturers assessed their current situation at \u221225.1 points, while the wood-based panel industry recorded \u221219.3 points. Expectations for the next six months remained negative in every segment, including those currently benefiting from stronger construction demand.<\/p>\n The distance between timber construction and sawmilling may initially appear contradictory. Sawmills supply one of the principal raw materials used in timber buildings, and stronger demand for prefabricated homes should eventually benefit lumber producers. The two sectors are nevertheless positioned at different points in the construction cycle.<\/p>\n Timber construction companies work from existing order books and can benefit directly when more projects move into planning and production. Sawmills depend on much broader demand for structural lumber, including conventional housing, renovation, commercial construction, packaging and exports. Growth in one comparatively small construction segment is not yet sufficient to compensate for weakness elsewhere.<\/p>\n There is also a substantial delay between a building permit and the purchase of construction materials. The rise in permits during H1 2026 may therefore improve demand for lumber, panels, roof components and engineered wood products later, but the effect will depend on how many approved projects receive financing and proceed to construction.<\/p>\n More permits, but no immediate increase in wood consumption<\/strong><\/p>\n The number of approved single- and two-family homes in Germany increased by 14.5% during the first half of 2026. Permits for multi-family buildings rose by 16%.<\/p>\n Prefabricated timber construction expanded faster than the wider single- and two-family housing market. Germany approved 7,432 prefabricated homes during H1, an increase of 16.9% from the previous year. These buildings accounted for 26.7% of all approvals for new single- and two-family homes, compared with 26.2% in H1 2025.<\/p>\n The share is particularly high in southern and western Germany. Prefabricated homes represented 44.7% of the relevant approvals in Baden-W\u00fcrttemberg, 33% in Hesse and almost 28% in Rhineland-Palatinate. Bavaria recorded the largest absolute number, with 2,020 approved prefabricated homes.<\/p>\n These figures support the strong sentiment reading among timber construction companies. They do not, however, indicate that the German construction crisis has ended. Permits measure potential future activity, while the number of completed homes continues to fall.<\/p>\n The distinction is important for wood demand. Furniture, flooring, doors, windows and interior products are typically purchased near the end of the construction process. Structural timber and panels enter earlier, but only after financing, procurement and the start of building work. The improvement in approvals must therefore pass through several stages before it becomes visible across the entire wood value chain.<\/p>\n Germany completed fewer homes in 2025 than at any time since 2012, according to the German Sawmill and Wood Industry Association. Even if permits continue to recover, the low number of projects currently reaching completion will remain a drag on downstream industries during 2026.<\/p>\n Sawmills have not yet seen the recovery<\/strong><\/p>\n The sawmill industry\u2019s \u221244.8-point assessment shows that the better construction data have not reached primary wood processing. German sawmills entered 2026 after production had already fallen to its lowest level in a decade.<\/p>\n The German Sawmill and Wood Industry Association previously warned that construction lumber production could decline by another 9\u201310% in 2026 if demand and operating conditions failed to improve. The expected spring recovery did not materialise, while weak construction in Germany and other European markets limited domestic and export sales.<\/p>\n The industry\u2019s difficulties are not caused by demand alone. Raw material prices have increased sharply even as lumber consumption has weakened. HDH figures show that softwood industrial wood prices were 103% above their 2021 level in mid-2026, while spruce sawlogs were 97% more expensive. Wood chip prices had risen by 164%.<\/p>\n The decline in beetle-damaged timber following the large salvage harvests of 2020\u20132022 has reduced the volume of inexpensive wood reaching the market. Sawmills must now compete more strongly for regular harvesting volumes, leaving them with high sawlog costs while finished-product prices remain constrained by weak demand.<\/p>\n Energy continues to add pressure. German natural gas prices remained 63% above the 2021 level, despite falling from their crisis peak, while electricity prices were still 14% higher.<\/p>\n For sawmills, higher turnover can therefore give a misleading impression. Nominal sales may rise because prices are higher even when physical production declines. Employment cuts and reduced shifts provide a clearer indication of the pressure on volumes and margins.<\/p>\n <\/a><\/p>\n Furniture demand remains tied to completed homes<\/strong><\/p>\n The furniture industry\u2019s \u221225.1-point assessment corresponds with its first-half sales figures. Revenue among Germany\u2019s 374 larger furniture manufacturers fell by 2.7% to approximately \u20ac7.7 billion.<\/p>\n Domestic sales decreased by 4.1% to around \u20ac5 billion, while foreign revenue remained close to the previous year at \u20ac2.7 billion. The export share increased by one percentage point to 35.2%.<\/p>\n Performance differed widely between product groups. Kitchen furniture sales increased by 1% to approximately \u20ac2.9 billion, making it the most stable segment. Revenue from living-room, dining-room and bedroom furniture, together with furniture components, fell by 5% to \u20ac2.3 billion.<\/p>\n Upholstered furniture recorded a 10% decline to \u20ac423 million. Mattress sales fell by 5.1%, while office and shop furniture revenue decreased by 3.5%.<\/p>\n The sector benefits later than most other wood industries from any improvement in permits. New furniture purchases are closely linked to completed homes, relocations and consumer confidence. The present rise in housing approvals therefore offers little immediate relief while completions continue to decline.<\/p>\n Household spending also remains weak. High living costs and economic uncertainty have encouraged consumers to postpone larger purchases, including furniture. According to an industry survey, 40% of German furniture manufacturers planned to use short-time work during the third quarter.<\/p>\n Exports have provided limited support. German furniture producers increased deliveries to France by 2.6%, Switzerland by 2.1% and the Netherlands by 0.1%. Sales also rose in Belgium, Poland and Spain.<\/p>\n These gains were offset by lower exports to Austria, the United Kingdom and Italy. Shipments to the US fell by almost 15% under the pressure of American tariffs, while exports to China decreased by 2.1%.<\/p>\n For the full year, the furniture associations expect industry revenue to fall by approximately 3%.<\/p>\n Import competition adds to weak domestic demand<\/strong><\/p>\n German furniture imports decreased by 4.3% in H1 2026, but foreign products continued to account for around 60% of furniture sold in the country. In 2019, the corresponding share was 44%.<\/p>\n China and Poland remained by far the largest suppliers and together accounted for approximately 60% of German furniture imports. Deliveries from China fell by 2.4%, while imports from Poland decreased by 1.5%. Germany also purchased less furniture from Italy, Turkey, Vietnam and Romania.<\/p>\n The high import share limits the ability of German manufacturers to recover higher material, wage and energy costs through prices. Domestic companies must compete not only with weak consumer demand but also with suppliers operating under different production, labour and regulatory conditions.<\/p>\n The planned introduction of additional European requirements, including provisions connected with the Packaging and Packaging Waste Regulation, ecodesign rules, the Digital Product Passport and environmental claims, is expected to increase administrative and compliance expenses further.<\/p>","protected":false},"excerpt":{"rendered":" The mood in Germany\u2019s wood industry improved in August after a sharp deterioration during the first half of 2026. The recovery remains highly uneven, however: timber construction companies report a comparatively strong current situation, while sawmills, furniture manufacturers and wood-based … Continue reading
![<\/a><\/p>\nFurniture demand remains tied to completed homes<\/strong><\/p>\nThe furniture industry\u2019s \u221225.1-point assessment corresponds with its first-half sales figures. Revenue among Germany\u2019s 374 larger furniture manufacturers fell by 2.7% to approximately \u20ac7.7 billion.<\/p>\nDomestic sales decreased by 4.1% to around \u20ac5 billion, while foreign revenue remained close to the previous year at \u20ac2.7 billion. The export share increased by one percentage point to 35.2%.<\/p>\nPerformance differed widely between product groups. Kitchen furniture sales increased by 1% to approximately \u20ac2.9 billion, making it the most stable segment. Revenue from living-room, dining-room and bedroom furniture, together with furniture components, fell by 5% to \u20ac2.3 billion.<\/p>\nUpholstered furniture recorded a 10% decline to \u20ac423 million. Mattress sales fell by 5.1%, while office and shop furniture revenue decreased by 3.5%.<\/p>\nThe sector benefits later than most other wood industries from any improvement in permits. New furniture purchases are closely linked to completed homes, relocations and consumer confidence. The present rise in housing approvals therefore offers little immediate relief while completions continue to decline.<\/p>\nHousehold spending also remains weak. High living costs and economic uncertainty have encouraged consumers to postpone larger purchases, including furniture. According to an industry survey, 40% of German furniture manufacturers planned to use short-time work during the third quarter.<\/p>\nExports have provided limited support. German furniture producers increased deliveries to France by 2.6%, Switzerland by 2.1% and the Netherlands by 0.1%. Sales also rose in Belgium, Poland and Spain.<\/p>\nThese gains were offset by lower exports to Austria, the United Kingdom and Italy. Shipments to the US fell by almost 15% under the pressure of American tariffs, while exports to China decreased by 2.1%.<\/p>\nFor the full year, the furniture associations expect industry revenue to fall by approximately 3%.<\/p>\nImport competition adds to weak domestic demand<\/strong><\/p>\nGerman furniture imports decreased by 4.3% in H1 2026, but foreign products continued to account for around 60% of furniture sold in the country. In 2019, the corresponding share was 44%.<\/p>\nChina and Poland remained by far the largest suppliers and together accounted for approximately 60% of German furniture imports. Deliveries from China fell by 2.4%, while imports from Poland decreased by 1.5%. Germany also purchased less furniture from Italy, Turkey, Vietnam and Romania.<\/p>\nThe high import share limits the ability of German manufacturers to recover higher material, wage and energy costs through prices. Domestic companies must compete not only with weak consumer demand but also with suppliers operating under different production, labour and regulatory conditions.<\/p>\nThe planned introduction of additional European requirements, including provisions connected with the Packaging and Packaging Waste Regulation, ecodesign rules, the Digital Product Passport and environmental claims, is expected to increase administrative and compliance expenses further.<\/p>","protected":false},"excerpt":{"rendered":"The mood in Germany\u2019s wood industry improved in August after a sharp deterioration during the first half of 2026. The recovery remains highly uneven, however: timber construction companies report a comparatively strong current situation, while sawmills, furniture manufacturers and wood-based … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":99886,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-99885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\nGerman sawmills remain stuck at the bottom of the market - 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\/german-sawmills-remain-stuck-at-the-bottom-of-the-market\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"German sawmills remain stuck at the bottom of the market - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"The mood in Germany\u2019s wood industry improved in August after a sharp deterioration during the first half of 2026. 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