Overall actual softwood timber market reflection (inspired by PMI outcome Januar 2025)

𝗣𝗠𝗜:
Let’s start 2025 on a positive note: the global manufacturing PMI kicks off the year with growth (50.1)!
However, we must also acknowledge that this optimism is not thanks to the Eurozone. North and South America, along with Asia, are the real drivers behind this momentum.
In 2025, the manufacturing industry continues to face rising costs, geopolitical and trade risks, and stricter regulations (perhaps the ‘Competitiveness Compass’ report will provide some relief for the EU on that behalf). Additionally, digitalization and sustainability are essential to remain competitive, while companies must remain agile in responding to ongoing economic uncertainty and supply chain disruptions.
In short, plenty of challenges for this fresh new year!
Perhaps because most Eurozone countries export 90% or more to markets other than the U.S., and are therefore less concerned about the impact of import tariffs, the economic outlook for the Eurozone in 2025 remains cautiously optimistic, with a modest economic recovery expected.

𝗧𝗶𝗺𝗯𝗲𝗿:
When we look at the timber sector, the pressure appears to be even tighter than at the end of 2024.
The fact that a price drop is unthinkable is now a reality. As a result, the expectation is that the timber sector will soon show its teeth and firmly push through the now unsustainable cost pressures. The fear is that the order effect caused by such price shifts will hit harder than necessary.
Especially when you factor in the severe labor shortages—both in production and logistics—it will also strongly impact transport prices and availability. Let’s wait (or act) and see!
We’ll have to get used to the fact that everything moves at a faster pace than years ago, also in our timber industry. Modesty adorns a person, but not our market. 😊

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