The sector is simultaneously facing a weak construction market, structurally higher costs, increasing regulatory complexity and long-term uncertainties regarding the availability of raw materials. Such a convergence of multiple crisis dimensions not only makes it difficult to stabilise earnings in the short term, but also fundamentally calls many business models into question.

Market Structure

The timber industry spans from forestry and the sawmill industry, through wood-based materials, furniture/interior fittings and the timber construction sector, to adjacent markets such as plant and machinery manufacturers. Total turnover for the timber industry in Germany amounted to 73 billion euros in 2024, with 61 million cubic metres of timber harvested. Its share of GDP was 1.7%. Around one million people are employed in the forestry and timber cluster.

White Paper

In our new white paper, Carl Schoenaich-Carolath examines the current economic situation of the timber industry in the DACH region and analyses the market environment as well as the key structural pressures. Drawing on the strategic implications, he highlights the restructuring levers available to companies to proactively navigate the current market phase and secure long-term competitiveness.

The market drivers of the value chain are also examined. Key supply-side drivers include, for example, energy prices, labor costs, material costs and availability, as well as timber stocks, climate, forestry policy and technological developments. Demand-side drivers include, in particular, the economic performance of downstream industries, as well as subsidy programs, construction interest rates and export markets.

“The timber industry is undergoing a phase of profound structural adjustment and strategic transformation. The convergence of multiple crisis dimensions not only makes it difficult to stabilise results in the short term, but also fundamentally calls many business models into question,” explains Carl Schoenaich-Carolath.

You can read the full white paper here: The Timber Industry in Crisis.