The timber pallet and packaging industry has experienced a perfect storm in recent years with Brexit, Covid and the Russia-Ukraine war creating significant fluctuations in the timber market as well as overall demand.
However, after this extended period of volatility, timber imports to the UK appear to be stabilising with trade statistics from Timber Development UK (TDUK) for the first half of 2023 suggesting import patterns are now returning to pre-Covid levels.
Import volumes were higher in May for all wood categories than any proceeding months in 2023 although overall volumes still remained around 8% lower than the same period in 2022.
Nevertheless, while import stability looks to be returning to the wider timber market, there is no doubt that the general market situation in the UK remains a challenge with high inflation and rising interest rates impacting overall demand for timber across all sectors.
Against this backdrop, we are committed to delivering for our customers both in terms of the quality of the products we supply and the long-term sustainability of our operations.
We are continuing to invest in our manufacturing centre in Wednesbury and we will soon be introducing a new two-way pallet line following a recent investment in cross-cutting facilities, four-way pallet automation, biomass and kilns.
There is also significant interest from our customers in our ongoing commitment to the principles of the circular economy including the introduction of a timber waste collection service.
Recycling and reuse
Globally, the pallet sector is set to exceed $4bn over the next decade, driven by a surge in demand for more eco-friendly materials as well as their overall reliability, long term sustainability and affordability.
In the UK, despite the challenging economic headwinds, the manufacturing and reuse of timber pallets has increased significantly according to research commissioned by the Timber Packaging & Pallet Confederation (Timcon).
This significant increase in reuse comes at a time when the Government is attempting to encourage more recycling and reuse across the wider packaging sector with the introduction of its extended producer responsibility (EPR) guidance with the issue right at the top of the agenda at the recent Environmental Packaging Summit.
However, no targets have yet been set for timber packaging as the government continues to explore options for setting re-use obligations on timber pallets with Waste Minister Rebecca Pow indicating the government is “open to” increasing packaging recycling targets for waste wood after the Wood Recyclers’ Association called for higher recycling targets from 2024 to help drive investment in recycling.
At Nicklin we are increasingly having conversations with our customers about opportunities around recycling and reuse, particularly for those companies with closed loop pallet and packaging pools who are looking to increase their return on investment via increased life cycle and re-use. To compliment this, we will be looking at enhancing the business’s reconditioning arm in the near future.
Sourcing timber that is kinder to the planet
We remain vigilant to ensure that all our timber comes from accredited sources as the clearing of irreplaceable natural forests continues to be an issue around the globe.
We source all our raw materials from Chain of Custody certified suppliers and are not contributing to the destruction of the world’s forests.
Next year will see the introduction of the European Union Deforestation Regulation (EUDR), which will require companies to ensure that their products are verifiably deforestation-free, their origin is known and they are produced legally in their country of origin.
Companies that fail to comply with the EUDR risk losing access to the EU market – the third largest trading economy in the world.
Ultimately, ensuring that timber is responsibly sourced is not just the right choice for the planet, but it is also important for the bottom line with consumers increasingly voting with their feet.
According to a recent survey of European consumers, around two thirds believe it is important to use products from sustainably managed forests while a third pay close attention to forestry certification labels.
Innovating for the future
We are always searching for new developments in both the timber and corrugated space and it has been interesting to see the growth of a number of different products in recent years including innovations such as presswood pallets, which are manufactured from recycled wood fibres, and corrugated pallets.
These products and others are just some of the innovations helping to evolve the pallet and packaging landscape and we will always embrace their potential if we believe that they can improve the service we provide to our diverse range of customers.
If there is an innovation in pallets and packaging that you would like to discuss with us then please don’t hesitate to get in touch as we are always delighted to keep pushing the boundaries to ensure we are providing the right pallet and packaging solution for you.
