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Australian building boom has Sweetman in the sweet spot
THE COVID-induced Australian construction boom has led to a timber shortage that has a growing number of buyers turning to Sweetman Renewable Timbers (SRT) in an effort to shore up supply.
Australian federal and state governments have recognised the potential of the industry to help lead the post-COVID economy revival, with the latest round of government budgets directing a quarter of a trillion dollars to infrastructure projects from 2020-21 to 2023-24, Deloitte Access Economics figures show.
The value of total building work done in Australia during the March quarter rose 3 percent to $30.4 billion compared with the previous quarter, according to the Australian Bureau of Statistics, while new homes being built jumped 40.6 percent compared to the March quarter of 2020.
The Housing Industry Association said the record volume of building has led to material shortages.
At the same time, the 2019-2020 bushfires and lack of new plantation investment over more than a decade have further exacerbated the chronic timber product supply, which is having serious implications for building and construction activity. A division of Sweetman Renewables Ltd, SRT’s sawmill and timber processing facilities in the Hunter Valley, NSW is the only hardwood sawmill between Sydney and Newcastle, and is built on the sawmilling business established by the Sweetman family a hundred years ago.
SRT’s managing director for timber, Campbell McInnes commented on the company's direction, “We are working to strengthen long-term timber products supply arrangements with major timber wholesalers, and other companies in the building products supply chain.
"This will include expanding existing hardwood sawmilling capacity, increasing the production of quality hardwood products from certified forests and plantations. We are also seeking to develop additional avenues of log supply and timber products sources.
“With expanded opportunities for authorised log supplies, SRT will be able to make a valuable contribution to timber products supply to wholesalers, merchants and to construction and building customers.”
Sweetman Renewables chairman John Halkett said the company had a focus squarely on quality timber production and sustainable forest and plantation management via SRT, plus its biomass to renewable energy initiatives through its Sweetman Biomass division.
"Sweetman Renewables is proud of its ability to make a meaningful contribution towards sustainability, carbon storage and renewable energy that will collectively assist climate change abatement,” he said.
As well as planning capital expenditure to improve sawmilling and timber processing productivity, SRT will have the capacity to offer a wide range of timber products through an expanded timber products supply capability that includes a collaborative arrangement with a major timber products wholesaler, with a network of wholesale facilities across Australia.
“Our increased synergies across the supply chain will assist in strengthening the commercial performance of SRT’s sawmilling and timber processing operation in the Hunter Valley. This will also bring positive regional development and employment opportunities to the region,” Mr Halkett said.
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