As a result of the difficult economic environment and the very weak construction sector, the German timber trade sector saw its sales decrease by 15% in 2023. The ongoing downward trend in prices also contributed to this negative development of sales.
The annual analysis of the monthly company comparison done by the GD Holz shows that the weak sales markets had a major impact on timber trade sales last year. All important product groups in the timber trade sector are affected by this decrease in sales. Lumber was hardest hit with a 24% slump in sales, while construction elements (interior doors) were least affected with a decrease of just over 5%. The services segment was the only area to see an increase in sales (+9%).
According to GD Holz, retail and wholesale trade are equally affected by the downward trend in 2023. One major reason is the generally weak demand in the construction sector, in particular the number of completed buildings, which is far too low. Sales to end consumers, too, are said to be very unsatisfactory. What makes matters worse for the timber trade sector is the sharp rise in various costs due to inflation. Added to this is the massive increase in truck tolls and the carbon tax.
The participants in the monthly company comparison do not expect any major changes in the coming months. The majority of respondents even expects a further decrease in sales, while around one third expect sales to remain constant. The market environment for the timber trade sector is thus expected to be very difficult in 2024 as well – at least in the first half of the year.
Like other trade associations with links to construction, the GD Holz has been calling on the government for months to provide incentives to the construction industry in order to give it new impetus to growth.
