23HK_turnover Q2.jpg

© Holzkurier

Economic sentiment indicator

Turnover higher than ever before

Article by Günther Jauk (translated by Eva Guzely) | 19.07.2018 - 09:00
23HK_business situation Q2.jpg

© Holzkurier

In the Timber-Online economic survey, 64% of respondents report a “good” business situation in the last quarter. 33% describe it as “satisfactory” and 3% as “bad”. As to the current quarter, almost half of the interviewed sawmills expects a “good” development (46%) whereas the other half expects a “satisfactory” development (49%). Only 3% of respondents believe that the situation will deteriorate in the current quarter.

Satisfactory development of turnover

23HK_turnover Q3.jpg

© Holzkurier

In the past two years, the percentage of sawmills which described their turnover of the last quarter as “high” rose from 12 to 41%. At the moment, 51% report “satisfactory” sales and 8% rate them as “low”. Sentiment regarding turnover in the current quarter is positive but noticeably more cautious compared to three months ago. 18% expect “growing”, 79% “stable” and 3% “falling” sales. At the end of the first quarter, 62% believed that turnover would grow and 38% thought that it would remain constant.

Stable log and sawn timber prices

23HK_log prices Q3,4.jpg

© Holzkurier

Contrary to three months ago, most sawmills expect a steady development of selling prices. 23% of respondents believe that prices will rise, 69% think that they will remain stable and 8% expect them to drop. At the end of March, 67% expected “rising” sawn timber prices. Note: The sawn timber price index, published by the Association of The Austrian Timber Industry, grew by 4.6 points from March to May, reaching 132.8% (January 2001 = 100%).

As to log prices, the majority of respondents believe that there will be no significant changes. 10% expect “rising”, 51% “stable” and 38% “falling” raw material prices for their own company.

Willingness to invest remains high

23HK_willingness to invest.jpg

© Holzkurier

In 2016, sentiment regarding the sawmill industry’s willingness to invest slowly started to improve. At the time, about 80% of respondents rated it as “low”. Today, this percentage dropped to 5%. Half of the respondents describe the sector’s current willingness to invest as “high” and 41% as “stable”.