Monday, September 22, 2025
The Austrian sawmill industry has navigated through a challenging economic environment, successfully stabilising sales and production. Markus Schmölzer, Chairman of the Austrian Sawmill Industry, highlighted the industry’s progress during the International Timber Day 2025 event. Despite rising costs, the industry managed to maintain steady production levels. However, Schmölzer noted that optimism should be tempered. “Our costs for energy, raw materials, and personnel remain very high. In addition, the overall economic environment is weak, and uncertainties are high. Improved economic policy frameworks are urgently needed, especially lower non-wage labour costs and competitive energy prices,” he said.
The Timber Trade: Mixed Developments Amid Challenges
Franz Teuschler, Chairman of the Austrian Timber Trade Association, shared both positive and concerning developments within the timber trade sector. “The timber trade is characterised by diverse developments. The recent decline in interest rates has brought about a slight upturn in the construction industry, especially for larger projects. However, demand in traditional single-family home construction remains weak,” he remarked. On the positive side, the export business has seen encouraging growth. “We had a very good start to the year for softwood lumber. In the first half of the year, exports increased by almost 11 percent compared to the previous year. Purchases from Italy and Germany, in particular, increased again,” he added.
A Potential Threat: EU Deforestation Regulation
As the sawmill industry continues to expand production, the EU Deforestation Regulation (EUDR) poses a serious threat to future growth. “We have increased sawn timber production and expect a two percent increase in 2025 compared to the previous year. Our sawmills could take on even more timber,” said Schmölzer. However, he cautioned that the EUDR, which requires companies to prove that their products are deforestation-free across the entire supply chain, could cause significant disruptions. “If the EUDR comes into force in its current form at the end of the year, there is a risk of a production decline of up to 10 percent. Many forest owners could temporarily cease timber harvesting because they do not want to bear the risks and costs of the EUDR,” Schmölzer warned.
The industry also foresees repercussions across the broader wood value chain. A decline in sawmill production would affect businesses involved in manufacturing wooden components, furniture, panels, and paper. Pellet production, which is especially important during winter, could also be impacted.
Bureaucracy Without Benefit: Concerns Over the EUDR
The EUDR mandates companies to provide proof that their wood products are deforestation-free. This requirement applies to both imports and EU production, which, according to Schmölzer, would result in unmanageable bureaucracy. “The EUDR failed to understand the wood value chain. Due to the mixing of wood in storage areas and during further processing, thousands of reference numbers would have to be created, managed, and passed on for every processing step, every delivery, and every product,” he explained. This would generate data volumes that are difficult to control and practically unmanageable. A Finnish study estimates the cost of implementing the EUDR at €200 million, with €65 million in ongoing annual costs. Extrapolated to the EU, the overall costs could amount to billions without providing any tangible benefits.
The industry has raised concerns that the EUDR, in its current form, is neither legally implementable nor proportionate. Despite efforts by the EU Commission to offer clarifications, these have failed to provide any practical solutions. “After more than two years of work, a practical implementation model is still lacking. Therefore, we are calling for the EUDR to be fundamentally revised as part of an omnibus process to reduce bureaucracy or, even better, repealed entirely,” Schmölzer said.
Support for Alternative Solutions to Deforestation
The Austrian timber industry fully supports the goal of halting global deforestation, but it advocates for alternative solutions. “We need an additional risk category for countries without deforestation risk, such as Austria, instead of burdening the entire timber industry with the EUDR,” Teuschler suggested. He recommended adopting a documentation model similar to the existing EU Timber Regulation (EUTR), which would provide sufficient checks and balances. This alternative has received broad support in the European Parliament and is even included in the German coalition agreement.
Teuschler further proposed risk-based controls as a more targeted approach to tackling deforestation. “Deforestation doesn’t occur in Europe. Yet we have to prove that our supply chains are deforestation-free,” he said. By focusing on specific products, regions, or actors, these controls would provide a more effective solution.
The Austrian Sawmill Industry: A Cornerstone of the Economy
Austria’s sawmill industry comprises more than 1,000 companies, many of which have been family-owned for generations. These businesses are essential to the local economy, providing employment to around 10,000 workers, particularly in rural areas. The sawmill industry generated a production value of €3 billion in 2024, contributing significantly to the country’s economic stability and regional prosperity.
The Austrian Timber Trade: An Important Player in the Industry
The Federal Association of Building Materials, Iron, and Timber Trade represents nearly 22,000 companies within the Austrian trade sector, with approximately 4,500 members specifically in the timber trade. These wholesalers and retailers play a crucial role in ensuring the timber industry’s success throughout its value chain. Through innovative training programs like “Wood-Star,” the timber trade also focuses on preparing skilled workers for the future.
The Austrian sawmill and timber trade industries face a delicate balancing act: navigating the challenges posed by rising costs, changing market conditions, and the looming threat of the EU Deforestation Regulation. While the industries remain resilient, calls for a revision of the EUDR and the adoption of alternative solutions are growing stronger. This would enable Austria’s timber sector to continue its vital role in the economy while ensuring sustainability without burdensome bureaucracy.
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Tags: Austrian sawmill industry, Austrian sawmill industry news, EU Deforestation Regulation, softwood lumber exports, Timber trade, woodworking industry
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