And then came Carlyle ...

Who would have believed that only five years ago? Klenk, Rettenmeier and Mayr-Melnhof are no longer managed by the families who used to own those companies. Klenk was sold in 2013 to a US fund. For Rettenmeier, an investor should be found soon. And as for Mayr-Melnhof, the largest creditor bank came on board as an equity investor. None of these company has family members in the management any longer. This "dawn of the dynasties" in 2013 will be remembered.

Besides that, 2013 was a year of quiet consolidation. Often it was the small and medium-sized enterprises which went out of business - either because there was no successor or the margins of previous years did not allow for replacement investments. It was also the SMEs which were affected by bankruptcies the most. Sad recurrences of our reporting were also fires. Due to the difficult insurance situation in Germany, the entire industry is affected there.

From the perspective of our editorial office in Germany, the most significant event in 2013 was Carlyle's acquisition of Klenk Holz. If a US-$2 billion-private equity fund invests in an asset, they expect an increase in value within a few years. Further acquisitions were not ruled out by Carlyle. In Austria, the announcement of the restructuring of Mayr-Melnhof Holz was a highlight of the year. The third management team within only one year is on a good path now in the headquarters Leoben, insiders say. What is also positive is that timber construction is booming. Japan and the Levant were great markets. Pellets, and all sawmill by-products in their wake, pay dividends whereever lumber is flagging.

In 2014 the phase of consolidation is set to continue. That would be the "seventh lean year." There is growing evidence that we are in for better times thereafter.