Timber has traditionally been a readily available commodity, both from domestic and foreign sources. However, several factors have combined to cause a significant shortage in timber supply:
1) The fires of 19-20 burnt over 8.43 million hectares of native forests and plantations [1].
2) Shipping restrictions and disruptions are impacting every industry, including lumber imports.
3) Domestic timber demand has skyrocketed with the construction boom inspired by the government COVID stimulus.
As a result timber pricing is soaring, creating major cost challenges for construction projects and a host of manufacturers using timber packaging and pallets.
What will come next?
Overseas timber demand and prices are lowering, and the number of housing approvals are falling in Australia [2]. Pricing is expected to normalize over the next 12 months. However, in the meantime supply chains can expect to see tumultuous conditions continue and should plan well and forecast demand in view of accommodating further costing changes in the lead up to Christmas.
How can we assist?
Lite Corp has been manufacturing robust honeycomb cardboard products to help manufacturers reduce reliance on timber packaging. We manufacture a range of timber alternatives including export-compliant skids, protective lids, transport dunnage, bearers and load spacers.
Lite Corp is your local Australian manufacturing partner, providing certainty of supply and eliminating the frustration of shortages during uncertain times as well as into the future.
[2] https://www.theurbandeveloper.com/articles/timber-shortage-construction-materials