Little optimism

“Drought is a major problem for the timber industry”

The weak economy and the slump in the construction industry are weighing on the domestic timber industry. There are currently still no positive signals. In addition, the extreme weather is causing massive damage.

The extreme weather is a massive burden for the timber industry," explains Markus Schmölzer, Chairman of the Austrian sawmill industry. "Damage caused by storms is expensive, but the drought is the bigger problem for the timber industry". This is because it makes spruce stands susceptible to bark beetle infestation. "Certain areas are massively affected by this," says Schmölzer. People in East Tyrol and Upper Carinthia can tell you a thing or two about this, where first storms and then the beetles destroyed thousands of hectares of forest.

However, the general economic climate is also a cause for concern for the timber industry. "We are currently confronted with sales and turnover losses in almost all areas. The recession in the construction and industrial sectors is weighing on our members," says Franz Teuschler, Vice-Chairman of the Austrian timber trade. There is also a lack of positive signals internationally. "There is no strong economic stimulus coming from the USA, India or China," explains economist Christian Helmenstein, who also cites high interest rates as a problem.