The snow is melting, and spring is around the corner! The Red Falls Timber team is starting our chainsaws getting ready to move away from the laptop and get into the woods. It is a great time to reflect on the environment that provides us with so much. A high level comparision of the US forests and Central European forests is a useful guide before we get cutting.
The management and ownership of Central European softwood forests is different than what we are used to in the USA. Often European forests are owned by the government or by private individuals/ families. In the USA, many forests are owned by private companies. This difference in ownership has a number of downstream market effects, including in the cross laminated timber (CLT) market.
One of the most significant effects is the difference in the cost of timber input. Europe enjoys a more stable supply, because the forests are often managed for long-term timber production. In the USA, the supply of timber can be more volatile, as private companies may make harvesting decisions based on short-term market conditions. This difference in availability can make European CLT more attractive to buyers who are looking for a reliable product. This difference in timber input cost can make European CLT more competitive in the global market with access to boards that are specifically cut as CLT lamella.
The different ownership structures is the difference in the quality of timber. In Europe, there are strict regulations governing the harvesting and processing of timber, which helps to ensure the quality of the product. In the USA, there are fewer regulations, which can lead to lower quality timber being harvested when the market can support it. This difference in quality can make European CLT more attractive to buyers who are looking for a high-quality product.
Overall, the different management and ownership of European forests can have a number of downstream market effects, including in the CLT market. These effects can make European CLT more competitive in the global market, due to its lower cost, higher quality, and more stable supply. In general, European CLT is likely to be a better value for buyers who are looking for a high-quality, reliable product at a competitive price.
Are we Idealizing European forest practices? Maybe. Should we support local forestry? Definitely! Either way, we can all agree that forest fashion is the best.