Storms and floods likely to increase pallet prices
The storms and floods affecting the UK are likely to compound the pressure on the forest-based industries, according to the Timber Packaging & Pallet Confederation (TIMCON).
Increased demand for timber in the aftermath of the adverse weather could see already tight supplies diverted away from the sector.
TIMCON general secretary Stuart Hex said: “Widespread damage caused by the recent storms and flooding means we are anticipating much stronger demand than usual for fencing and construction timber. This will potentially have further impact on the availability of timber to the pallets and packaging industry and as well as other sectors.”
Availability of timber is already undergoing a squeeze as demand from the construction sector has increased; as a combined effect of Government financing incentives and a recovery in the UK economy.
The latest Markit PMI Prices and Supply Monitor report states that out of all raw material inputs, it is timber that is by far experiencing the severest supply shortages and, as a consequence, upward pressure on price.
