Greetings customers and suppliers.
As we approach the end of the financial year, so far calendar 2024 has seen positive movement in the market after a difficult year all along the supply chain in 2023. Property markets in Australia continue to defy elevated interest rates with the lack of housing supply creating stress on households. There seems to be a welcome change in the conversation to focus effort on multiple fronts including issues affecting supply. No longer are materials the issue but lack of availability of key trades will remain challenging. Those of our customers focused on pre-fabricated timber solutions to reduce time on site are seeing strong tail winds.
We are continuing to develop a robust imported supply chain with quality partners and we are seeing the Department of Agriculture Forestry and Fisheries (DAFF) taking a more active role in ensuring importers uphold the standards expected by Australian consumers of timber. As state government policies increasingly restrict supply, even the supply of well managed local resources, it is critical that the vacuum is filled with equally well managed and sustainable imported alternatives. We welcome the focus that DAFF is giving to importers and expect that it will help to maintain confidence in a product that will remain a critical element in the broader package of new home construction required across the nation.
While shipping markets have stabilised since the dizzy days of COVID-19, we are regularly reminded how fragile global supply chains can be. Whether it is unrest affecting key shipping channels or accidents, we continue to recommend to our customers that they maintain relationships with supply partners offering both domestic and imported options. The global demand-supply balance is always shifting as major producers adjust production to take into account the economics of log prices and higher operating costs in the face of variable demand in each of the key markets. Ultimately, Australian consumers are a price taker in that equation.
Thank you again for your ongoing support and I wish you well for the remainder of the year.
Regards, Toby.