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Deforestation regulation and AI among key topics discussed at 10th International Hardwood Conference

The 10th International Hardwood Conference took place on November 7 and 8 at the Hilton Vienna Park in Austria's capital. The event was hosted by the Austrian Wood Industry Association, in collaboration with the European Organisation of the Sawmill Industry (EOS) and the European Timber Trade Federation (ETTF).

The conference was well-attended, with around 150 participants from 26 countries. On November 7, attendees had the opportunity to join a study tour, visiting three companies: the parquet manufacturer Weitzer Parkett, timber trader Mühlbauer Holz, and solid wood furniture maker TEAM 7.

The conference opened on November 8 with an economic overview by Christoph Schneider from Economica Institute. Schneider highlighted the negative impact of growing global tensions on stability, stating that businesses will face an increasingly challenging environment. However, he also pointed out opportunities, such as the spread of artificial intelligence.

Silvio Schüler from the Austrian Forest Research Centre gave an insightful presentation on European hardwood forests, noting that the share of hardwood forests is increasing across Europe. Climate change is causing trees to grow faster, but it also threatens the health of forests through pests and other factors. Adapting forest management to these changing conditions and increasing the material use of hardwoods are crucial for the stability of the industry.

In the second session, presentations focused on the global market situation. Maria Kiefer-Polz, Vice President of EOS for Hardwood, and Ad Wesselink, President of ETTF, noted that recent years have been very challenging for European hardwood businesses. The big question for market participants is whether the market has hit rock bottom and whether 2025 will truly be a year of recovery. Hardwood companies must also adjust to a new cost structure, with rising costs for energy, labour, equipment, and more.

Michael Snow from the American Hardwood Export Council discussed how 2024 is proving to be a tough year across the Atlantic as well. In the United States, production is on a long-term decline due to weak domestic demand for nearly all hardwood applications. While exports are slightly better than domestic demand, the slow Chinese market is still a challenge. James Xu of Shanghai AM Forest Products emphasized the importance of using new sales channels, like local social media, to maintain market share in China. Innovative sales methods are gaining traction in the country.

Jean-Christophe Claudon from the International Timber Trade Organisation provided an update on tropical timber. The share of tropical wood production in global sawmill production has remained relatively stable at 13 to 15 percent over the past 30 years. Isabelle Brose also addressed the current challenges in the European parquet market, highlighting incremental innovations such as water-resistant, acoustic, and smart wooden floors.

A key topic of the conference, the EU regulation on deforestation (EUDR), was addressed in the first panel discussion, following an introductory presentation by Franz-Xaver Kraft from GD Holz. The announced delay of the regulation's implementation, which is soon to be approved by EU institutions, was welcomed by the international timber industry, which has been working1 hard to meet the EUDR's demanding requirements. Certification systems like PEFC and FSC play a key role in helping companies comply with the regulation, providing traceability frameworks, risk assessment tools, deforestation-free standards, and documentation aligned with the regulation's requirements. While companies may need to take additional due diligence measures, certification systems offer an effective foundation for ensuring compliance and reducing the administrative, legal, and logistical challenges associated with the new regulation.

The second discussion focused on innovation in the hardwood sector, with speakers covering advancements in hardwood furniture and construction.

More information:
10th International Hardwood Conference
www.ihc2024.at

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