Building markets
With their domestic market in the doldrums, Irish sawmills are focusing on producing construction grades for the UK.
It's been a tough couple of years for Irish sawmillers. Of course, all around the world sawmills have been reducing production or closing completely, but it could be argued that, following the boom of the Celtic tiger and the associated flourish in house building, Ireland fell further and harder.
And that fall started around August 2007, when Irish building firms stopped buying almost overnight. The mills responded by cutting output and by Christmas 2008 they were reduced to three-day weeks.
However, companies say they are now getting back to full-time working, a demonstration of their inherent resilience and a slight pick up in Irish demand, but also strategic targeting of the UK market.
With more substantial improvement in their domestic business not expected until at least the end of 2010, Irish sawmillers are increasingly turning to customers in the UK, especially for sales of FSC-certified construction material. And, despite the unfavourable euro/sterling exchange rate, the strategy seems to be working.
ECC, based in Cornamona, Co Galway, started exporting to the UK 20 years ago, opening a Liverpool office in 1992. Last year it reinforced its commitment to the UK by establishing a second office in Birmingham.
ECC has always exported pallet and fencing material but recently increased the proportion of its sawn products going to the UK from 30% to 50% – the equivalent of around 60 lorry loads a week. It's aiming for 60% UK sales for 2010.
The company has 300 UK customers and is now investing in a planing line to service the market.
In addition to pallet and fencing products, ECC produces C16 carcassing and is targeting 1,000m' per week to the UK in early 2010.
Director Daryl Fahy said the company can turn around UK orders in 24 hours. "We hold extensive stocks for just-in-time delivery," he said.
The company is also, about to enhance its service with Progressive Solutions' lumberTrack software, which inte-grates stock management and production planning with order processing and accounts. "This will benefit customers in the UK and Ireland," said Mr Fahy.
Along with other Irish sawmills, ECC is back to full time working after introducing short-time earlier this year. While not denying the difficulty of the past 18 months, managing director PJ Fahy accepts it is a part of business that is outside ECC's control. "In any business there are cycles," he said.
He has noticed some improvement in the Irish market in the past few weeks but this will not sway ECC from the UK. "Even when times are good in Ireland we keep exporting," he said. "We've stayed [in the UK] in good and bad times over the last 20 years," he said. "It's very gratifying for us to see the loyalty shown to our company by our UK customers over the past two years – they, know that we will consistently be there in the future."
© 2009. Reproduced courtesy of Timber Trades Journal.
