Wood Products Prices in The UK & in Holland    
1-15th May  2004

An Update from the UK 

During the recently concluded International Furniture Fair in Milan, The Centre for Industrial Studies (CSIL) organised a seminar "World Furniture Outlook". This event attracted participants from 25 countries representing trade associations, private firms, consultants and numerous institutions. 

World furniture exports, currently worth around US$ 60 billion annually, are set to expand in 2004 and 2005 and Ugo Finzi a senior adviser to CSIL said that global furniture exports could grow to nearly US$ 68 billion by 2005.

Contributors to the meeting included representatives from Germany, Sweden, Italy, United Kingdom, Spain, Denmark, France, Portugal, Norway, European Union enlargement countries (Estonia, Cyprus), candidate countries (Bulgaria, Turkey) and the Ukraine.

South America was represented by Argentina, Brazil and Bolivia, and Asia by important producer countries such as China, the Philippines, Indonesia and Japan. Also present were operators from Australia, Canada and Egypt.

The UK representative of the Association for British Furniture Manufacturers (BFM) observed that furniture manufacturing is becoming more competitive in Western Europe and the UK is no exception. Approximately 80% of the 12,500 UK furniture manufacturing companies employ less than 15 people, which creates problems of scale economies.

Imported furniture into the UK market is mainly from Europe and from Asia and the UK market has become very price sensitive and retailers are very much competing on price. Competitive margins are squeezed and many are now looking to put into place a more effective supply chain with closer relationships between manufacturers, retailers and also suppliers to the industry. More manufacturers are now delivering goods direct to consumers in order to compete with the import penetration.

As a consequence of the successful penetration in the UK of imported furniture, now, more than ever, the UK producers to look beyond the domestic UK market and are looking at markets such as Western Europe and North America. They are also trying to enter new emerging markets and, by so doing, be a part of the global competition.

The UK companies that are looking at overseas markets tend to supply mid to high end products, since low-end mass market manufacturers cannot compete well in international markets and they will continue a focus on the domestic market.

The UK trade sees the American markets offering the most potential at the moment. The BFM organized the participation of 72 UK exhibitors at the High furniture fair at end of April.

The Russia market also seems to be quite interesting for UK top end quality furniture, mainly for country home furnishing. Also, Western Europe and the Middle East countries offer opportunities for middle to high products.

Growth in Bedroom Furniture  

According to a recent survey carried out by the British market research company AMA, the UK market for bedroom furniture is expected to increase by 1 to 2% this year. The increasing trend is forecast to continue up to 2007 with growth rates of between 1 to 3%.

According to the report, bedroom furniture accounts for almost 13% of total furniture sales in the UK and the market segment of free standing bedroom furniture represents the highest share. Consumer taste is basically oriented towards contemporary, modern-style bedroom furniture made of pale coloured wood; dark wood is less in demand. In the UK there are some 4000 manufacturing companies specializing in bedroom furniture.

 Log Prices in the UK

UK Sawnwood Prices

Plywood and MDF in the UK