Timber industry braces in troubled times

The timber industry is battening down the hatches, as it struggles with low demand, increased running costs, and wars and tariffs overseas. Carter Holt Harvey has announced plans to shut its Eves Valley sawmill near Nelson and consolidate its operations to Kawerau in Bay of Plenty, blaming weak markets. The closure would affect 142 jobs.

Timber Industry Federation executive director Jeff Ilott told RNZ demand had dropped, with building consents down from 51,000 in 2022 to 34,000 in the year to June. The lack of demand, combined with increased running costs from electricity, compliance and insurance, meant sawmills felt the squeeze. The overseas markets were also unstable, due to conflict and tariffs.