Austria's timber industry has maintained stable sales and production despite high energy, raw material, and labour costs, alongside ongoing economic uncertainty. Exports of softwood lumber grew almost 11% in the first half of 2025, led by demand from Italy and Germany, although domestic demand for single-family housing remains weak.
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Industry forecasts predict a 2% rise in Austrian lumber production this year, but the upcoming EU Deforestation Regulation (EUDR), set to take effect at the end of 2025, poses a major risk. Markus Schmölzer, chairman of the Association of the Austrian Wood Industries, warned production could fall by up to 10% if forest owners limit harvesting to avoid compliance costs, impacting the wider wood value chain, including furniture, panels, paper, and pellets.
The EUDR requires companies to prove that all wood and wood products are deforestation-free, a measure Schmölzer described as impractical due to complex tracking requirements. A Finnish study estimates implementation costs at over €200m, with annual costs of €65m, potentially scaling to billions across Europe.
While supporting deforestation prevention, industry leaders advocate for alternative approaches, such as risk-based controls for low-risk countries like Austria. Several EU member states, including Austria and Germany, have expressed support for this more targeted method.
Source: www.globalwood.org
