Finland’s Plywood Sector Rebounds in 2024

After several years of decline, Finland’s plywood export industry has demonstrated notable growth in 2024. According to the Finnish customs office’s latest foreign trade statistics, exports have recovered significantly in the second and third quarters of the year following a period of sharp reductions in recent years. This recovery comes as a welcome relief to an industry that has struggled to maintain its historical export levels.

Q2 and Q3 2024 Export Trends

In the second quarter of 2024, Finland’s plywood exports surged to 172,940 m³, marking a 22% increase compared to the same period a year earlier. Even more striking was the 35% growth recorded in the third quarter, as exports reached 126,564 m³. This boost comes after a prolonged slump and represents some of the strongest quarter-on-quarter growth figures seen in years.

However, quarter-to-quarter fluctuations highlight ongoing instability. Between Q2 and Q3 2024, export volumes dropped by 27%, signaling that while improvements have been made, the industry is not yet out of the woods when it comes to addressing larger challenges.

The Rise of Softwood and Hardwood Plywood Exports

Breaking down the numbers, both softwood and hardwood plywood exports played significant roles in the recovery. Softwood plywood exports saw a remarkable 56% year-on-year increase in Q3 to reach 82,618 m³, building upon a 32% rise in Q2, where volumes hit 112,861 m³. Similarly, hardwood plywood exports demonstrated more modest but steady growth, with a 6% increase in Q2 to 60,068 m³ and an 8% rise in Q3 to 43,934 m³.

This dual growth in both softwood and hardwood plywood highlights Finland’s capacity to meet demand across multiple segments of the plywood market. These figures also suggest that the industry is diversifying its export portfolio, which could help mitigate risks associated with over-reliance on a single product category.

Long-Term Challenges Remain

Despite the positive short-term developments, Finland’s plywood exports remain well below historical levels. During the early 2000s, annual export volumes consistently ranged between 1.01 and 1.11 million m³. However, the global financial crisis of 2008-2009 initiated a sharp decline, with exports bottoming out at just 586,419 m³ in 2009.

Subsequent years saw a modest recovery up to 891,041 m³ by 2017, but the industry has since experienced renewed losses. In fact, 2023 marked an especially challenging year, with quarterly plywood exports falling below 100,000 m³ for the first time according to detailed historical analyses. As of now, the 2024 rebound provides hope but does not yet signal a full recovery to pre-crisis export figures.

Navigating Uncertain Global Markets

The plywood industry’s challenges are compounded by shifting global market dynamics. Increasing competition, economic slowdowns, and changing consumer demand patterns present ongoing hurdles. That said, recent growth in Finland’s plywood export volumes suggests that the sector may be finding ways to adapt, whether through product innovation, market diversification, or addressing logistic inefficiencies.

The next step for Finnish plywood exporters will be to build upon the current momentum to stabilize the supply chain and explore opportunities in untapped markets. Developing robust strategies for value-added plywood products and sustainable practices could further strengthen the industry’s competitive position on the global stage.

Outlook for 2024 and Beyond

While Finland’s plywood industry is showing promising signs of recovery, the journey back to its former heights will require sustained efforts from all stakeholders. With market trends continually shifting, adaptability and forward-thinking strategies will be key to ensuring long-term growth for the sector. As the world increasingly prioritizes sustainable and versatile building materials, Finnish plywood manufacturers have an opportunity to capitalize on these changes and solidify their presence in the global marketplace.