Forest Products Industry

Government spending cuts have forced Scion, the dedicated Crown research institute charged with growing forestry exports, to propose shedding a significant number of scientists. Source: Timberbiz Scion which is headquartered in Rotorua, New Zealand has told staff that 30 jobs or around 10% of its workforce may go. This impacts scientists, technicians and support staff. Most are based in Rotorua. The decision follows proposed job losses of scientists, researchers and others at Callaghan Innovation and NIWA. “Cutting the very agency that is helping to grow such a valuable exporter earner and employer is just more dumb stuff from this government,” said Fleur Fitzsimons Assistant Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi. “This again shows how little the Government understands how science is key to our future prosperity and ensuring we can adapt to challenges like climate change. “Forestry is our third largest primary export earner and employs tens of thousands in regions around New Zealand – it makes no sense for a government focused on economic growth and regional economic development to undermine such a critical agency. “Scion is all about the productivity of forestry – helping grow higher value trees, improving land management, researching more efficient harvesting practices and the impacts of climate change on forests. “How come that is no longer a priority? Do forest owners and wood processors agree with this downsizing? “This again shows how the Government has made a choice for tax cuts to trump investing in public services which grow the economy and support New Zealanders.”

Housing is one of the most pressing challenges facing the nation. Efforts to tackle labour shortages stemming from apprentices leaving the construction industry prematurely and regulatory barriers impeding access to skilled international tradespeople are useful, but they alone will not address the broader labour shortages impacting the construction industry’s ability to build new homes and other infrastructure. Source: Timberbiz The Federal Budget has taken into account the need for skilled workers in the construction and housing sector, and so the Government will provide $88.8m for 20,000 additional Fee-Free TAFE and VET places in construction-relevant courses. The Government will also provide $1.8m for streamlined skills assessments for 1,900 migrants in the housing construction industry. Australian Constructors Association CEO Jon Davies says there are many factors that discourage people from joining construction in the first place and simply treating the symptoms with short-term measures to plug the skills gap will not suffice. “Long-term solutions are needed, and the government’s Future Made policy presents a chance to make significant productivity gains through Modern methods of construction,” said Mr Davies. “Modern methods of construction (MMC) could revolutionise how projects are built, shifting more work to factories. This form of construction is far more productive as it is standardised, takes place in controlled environments and is not subject to site-based risks such as inclement weather. It creates more opportunities for skilled workers in safer environments with increased opportunities for flexible work hours.” MMC also aligns seamlessly with Australia’s ambitions for net-zero emissions. By reducing waste and minimising reliance on fossil fuels, MMC presents a pathway toward decarbonising the construction industry and meeting global emission targets. “The problem is, MMC isn’t widely used due to the significant investment required but government support could change that,” argues Mr Davies. “By optimising project designs for manufacture and assembly and by standardising components of schools, hospitals, metro stations, bridges and other types of infrastructure across jurisdictions, a viable market will be created to support private sector investment in MMC manufacturing facilities. This investment could be accelerated by matched investment from State and Federal governments and by underwriting demand in the short term. “Given the scale of operations required to maximise efficiency, MMC manufacturing facilities would ideally be located in regional areas between major population centres thus providing secure skilled employment opportunities in areas that need them the most.” The potential economic returns are substantial. Closing the productivity gap between construction and other industries could boost the economy by $56 billion annually. This could fund essential services like the NDIS and build new schools and hospitals nationwide. “Investing in MMC might not be as glamorous as other industries, but it’s vital. It could transform the sector, making it more diverse, sustainable and efficient. This would ensure the country gets the infrastructure it needs, when it needs it, and at an affordable cost.”

The nation’s forestry and timber industry can help build 50,000 much needed new homes annually with climate friendly timber and wood, but we need a strong and stable construction sector to achieve that, according to Australian Forest Products Association CEO Diana Hallam. Source: Timberbiz Today’s Federal Budget revealed a $6.2 billion spend for new housing, this adds to the $11 billion housing measures already announced. “In the five years from this July, we aim to build 1.2 million of them. Our goal is ambitious but achievable, if we all work together and if we all do our bit,” Dr Chalmers said in his budget speech. “[The] $6.2 billion in new investments mean our $32 billion Home for Australia plan will clear local infrastructure bottlenecks, provide more housing for students, fund more social and affordable housing, and we will also deliver better transport for better access to suburbs, cities and regions.” Included in the investment is an extra $1 billion for the states and territories to deliver new housing infrastructure and almost $89 million for construction workforce training. Data from AFPA and Master Builders Australia (MBA) shows from the height of the COVID pandemic until early 2024, domestic timber sales have fallen more than 500,000m³ – meaning industry has capacity for 50,000 more homes annually. This is extremely significant given MBA has forecast Australia will fall 110,000 homes short of the Federal Government’s 1.2 million homes target by 2029. “Industry has product on the shelf ready to construct the new and climate friendly homes of tomorrow and capacity to produce more, but we need a range of different actions to get the housing construction sector moving so we can realise our goal. With the right economic conditions and regulatory settings, we can make it happen,” Ms Hallam said. A range of different actions are needed to help realise 50,000 extra homes, including: De-risking finance for building new homes Cutting red tape for building approvals to encourage more timber in construction Relocation stamp duty exemptions Encouraging greater take-up of modular and prefabricated timber dwellings with specifications that allow for economic builds and faster building approvals Providing measures to workforce capacity including, incentivised apprenticeship programs, immigration visas and upskilling/retraining current workforces “When it comes to timber, it’s not a materials supply issue,” Master Builders CEO Denita Wawn said. “The timber industry has signalled it has product ready to meet housing construction needs, with annual capacity for an extra 50,000 new homes. “We will continue to work with the Federal Government on ensuring policy levers are pulling in the right direction to ensure the industry and its supply chains are in the best possible position to achieve the Housing Accord targets,” Ms Wawn said.

Next year’s Green Triangle Timber Industry Awards will mark the culmination of newly implemented changes informed by the valuable feedback from sponsors, attendees, and award nominators from our previous events. Source: Timberbiz As part of the changes the nomination process will be streamlined, and partnerships forged with local organisations to enhance the experience for all stakeholders. In addition to these enhancements, the committee is also exploring avenues to further elevate the recognition of nominees and winners, particularly through the esteemed Legend Award. “By continually refining our approach, we aim to ensure that every deserving individual receives the acknowledgment they rightly deserve,” committee chairman Adrian Flowers said. “As we embark on this exciting journey, we would like to acknowledge and thank our sponsors, suppliers and regional representatives for their unwavering support. Without the sponsorship team, the awards night would not be possible – our success is a direct result of industry backing,” he said. “As we look forward to the next chapter, the GTTIA Committee remains dedicated to fostering growth and ensuring that the awards continue to serve as a flagship event for the region’s timber sector.” Since its inception, the GTTIA has evolved into a platform that not only celebrates the achievements of nominees and winners but also highlights the diverse industries within the timber sector. Mr Flowers said that by shining a spotlight on the myriad job opportunities and career pathways available, the awards played a pivotal role in inspiring future generations and fostering innovation. Furthermore, the GTTIA served as a testament to the timber industry’s positive impact on environmental sustainability, carbon emissions reduction, and the integration of transformative technologies. The 2025 awards night has been scheduled for October.