Germany’s timber industry is currently facing significant challenges attributed to a sluggish construction market, escalating material costs, and various trade restrictions. These factors are collectively straining the industry, impacting supply chains and profitability.
Germany’s timber industry remains under immense pressure: a persistently weak construction market both domestically and abroad, high raw material costs, and global trade restrictions have been weighing on the industry for many months. With production having already fallen to its lowest level in the last ten years in 2025, further production declines of between 9 and 10 percent are currently inevitable if this trend continues—with serious consequences for employment, regional economic output, and Germany’s position as an industrial hub. The German Sawmill and Wood Industry Association (DeSH) is therefore calling for a crisis summit to develop a future strategy for wood processing in Germany in collaboration with policymakers and the business community.
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That’s a remarkable amount of work hours for a single machine, the Norcar 600 owned by Erkki Rinne is taken well care of, it even has the original Diesel engine.
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Kieran Anders is a forestry contractor working in the lake district. His work involves hand cutting and extracting timber using a skidder and tractor-trailer forwarder.
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It is not possible to eliminate chain shot, but there are simple steps that can be taken to reduce the risk.
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Arwel takes great pride in the fact that the mill has no waste whatsoever, “the peelings are used for children’s playgrounds, gardens and for farm animals in barns in the winter and the sawdust has multiple uses in gardens and farms as well.
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Timber hauliers need to encourage young blood in, and also look after the hauliers we have, we need make the sector a safe and positive place to work.
FIND US ON
The economic situation in Germany’s timber industry and sawmills has deteriorated dramatically once again since the start of the year. In addition to continued weak demand from the construction sector, the hoped-for spring upturn has failed to materialize this year. At the same time, global political tensions and increasing trade barriers are limiting sales opportunities in international markets.
While the European sawmill and wood industry is consolidating through mergers and acquisitions, German companies are coming under increasing pressure due to difficult operating conditions. Production had already fallen to its lowest level in the past ten years last year. If the operating conditions for domestic wood processors in this country do not change in the coming months, the production of lumber in Germany will decline significantly by a further 9 to 10 percent this year, according to internal association surveys. This means not only fewer shifts, reduced working hours, and the gradual dismantling of industrial production capacity, but also a serious threat to regional economic activity, jobs, and industrial wood processing in rural areas.
Competitiveness Is a Decisive Factor
After the sawmill and timber industry faced difficulties obtaining wood from forests last summer, increased logging by many forest owners has significantly improved the supply situation since the beginning of the year. At the same time, however, the construction industry in this country remains in crisis mode. Last year, the number of completed housing units was the lowest since 2012.
Even a slight increase in building permits offers only a glimmer of hope, not a fundamental market recovery. Added to this are political conflicts that are slowing down global trade. Rising cost pressures are forcing domestic companies in particular to further scale back production. Compared to other European nations with timber industries, structural disadvantages—such as the highest raw material and energy prices—lead to significantly rising production costs, thereby particularly weakening the international competitiveness of the German sawmill and timber industry.
A Future Strategy for the Wood Industry Is Needed
To counter this trend, the DeSH is calling for an emergency meeting between political and business leaders. The goal must be to secure the supply of wood, maintain international competitiveness, and ensure the long-term future of wood processing in Germany. With over 2,000 companies, around 30,000 employees, and annual revenue of up to 14 billion euros, the German sawmill and wood industry forms the heart of industrial wood processing. Germany is the European leader in the production of lumber and ranks fifth worldwide.
Domestic companies thus secure the raw material base for key industrial sectors such as the construction and packaging industries. As the link between forests and wood utilization, the sawmill and wood industry makes a significant contribution to sustainable value creation and the development of upstream and downstream value chains based on domestic raw materials.
Source: carmen-ev.de
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