Save our sawmills: Turn South Africa into a construction site

Unless affordable housing, the traditional building sector, architects and engineers, and the government procurement process prioritise timber and carbon-friendly projects like mass timber, the continued survival of South Africa's sawmilling and wood products sector hangs in the balance.

“Our members' products should be in demand across a broad spectrum of markets," Sawmilling South Africa (SSA) chair Duncan Mackay stated at the SSA annual general meeting.

However, he said, "The reality is that demand has been static over the past few years. Sawmills face an uncertain future. Unfortunately, a plea to the government to urgently address these matters with practical interventions has not produced anything substantial".

The SSA executive director, Roy Southey, said, "The closure of several sawmills is a worrying situation and is direct evidence of the harsh trading conditions for sawmills. While there are still several functioning informal sawmills, they tend to operate inconsistently. They are difficult to include in the total of formal sawmills.

"We continue attempting to recruit non-participating and larger informal mills by convincing them of the value of the collective, especially in difficult times", Southey said.

"SMME millers are proving the most difficult to recruit as many prefer working 'under the radar' and do not consider themselves part of the formal manufacturing sector".

A REVIEW OF STATISTICS MAKES DISMAL READING:

• Over 1,700 job losses were due to sawmill closures between 2020 and 2024, with formal sawmills being the most affected.
• There are only 31 formal sawmills left in SA. A formal mill has an annual log intake of a minimum of 15,000m3, kiln-dries its lumber and supplies SANS-grade structural and appearance-grade timber. There were over 100 formal sawmills in 2011.
• Informal sawmills supply over 25% of the market volume. This includes unregulated "bush mills" producing structural-size lumber, wet-off saw products and packaging materials that mostly do not meet quality, legal and safety standards.
• Structural timber product prices have remained largely unchanged for three years.
• Continued above inflation sawlog price increases.
• Rising input costs, falling sales, power and water challenges and logistical constraints are an ever-increasing percentage of sawmill production costs.

Duncan Mackay at the SSA AGM

BUT SAWMILLERS ARE RESILIENT.

With the assistance of the Department of Trade, Industry and Competition (dtic) and the Forestry Sector Masterplan, Duncan said SSA has identified initiatives to promote growth in the sawmilling industry. These include:

• Supporting the universities of Stellenbosch and Pretoria in research and developing alternative wood-based building materials such as cross-laminated timber (CLT).
• Encouraging architects, engineers and the construction sector to use locally produced products.
• Establishing an Export Working Group to expand export opportunities to include Middle East and Asian markets.
• Working with the Forest Sector Charter Council, the Department of Forestry, Fisheries and Environment (DFFE), the SA Bureau of Standards (SABS) and others.
• Working with the Fibre Processing & Manufacturing Sector Education and Training Authority (FP&MSeta) to develop apprenticeships and learning programmes that will enhance productivity and efficiencies through skills that will future-proof sawmilling.
• Collaborating with forestry industry bodies such as Forestry SA (FSA), the SA Wood Preservers Association (SAWPA), the Institute for Timber Construction (IC-SA) and the Paper Manufacturers Association of SA.

In concluding remarks, Southey reiterated that although it has been a particularly tough year for sawmillers, "It is truly encouraging to see the resilience of members facing the challenges head-on".

Written by: Joy Crane
Source: WoodBiz Magazine - June 2024 (Pages 3 - 4)