Study shows that 15% of house­hold join­ery comes from im­ported flat-packs

Australasian Timber - - NEWS -

For­eign flat-pack im­ports make up ap­prox­i­mately 15 per cent of the to­tal house­hold join­ery fit­ted in Aus­tralia each year, ac­cord­ing to a new study com­mis­sioned by For­est and Wood Prod­ucts Aus­tralia (FWPA) to il­lu­mi­nate what was pre­vi­ously a sta­tis­ti­cal black hole.

The study to de­velop re­li­able data around flat-pack im­ports was com­mis­sioned in re­sponse to in­dus­try fears that high vol­umes were flood­ing the do­mes­tic mar­ket, tak­ing trade away from home-grown busi­nesses.

Jim Houghton, Sta­tis­tics and Eco­nom­ics Man­ager of FWPA, said that vol­umes were not larger than ex­pected and the data could po­ten­tially al­le­vi­ate con­cerns among do­mes­tic man­u­fac­tur­ers, but that the key re­search ob­jec­tive was to fill a long-stand­ing and prob­lem­atic knowl­edge gap.

“The lack of re­li­able data re­lat­ing to this cor­ner of the mar­ket had the po­ten­tial to re­sult in poor busi­ness de­ci­sions and in­ef­fi­cient plan­ning. We hope this re­search will equip the in­dus­try with the tools it needs to make bet­ter in­formed mar­ket­ing and pro­duc­tion de­ci­sions,” he said.

In the past, trade data re­lat­ing to flat-pack im­ports had been flawed due to fac­tors in­clud­ing: a lack of avail­able de­tail around po­ten­tially rel­e­vant im­port codes; the ma­jor­ity of im­ports be­ing mea­sured by value and with­out vol­umes or prices; and the wide va­ri­ety of dif­fer­ent prod­ucts within the cat­e­gory.

Tim Woods, Man­ag­ing Di­rec­tor at In­dus­tryEdge, which con­ducted the re­search on house­hold join­ery in 2016, said the method­ol­ogy de­vel­oped for this project would help in other stud­ies on im­ported prod­ucts, with fig­ures on flat­pack im­ports to be up­dated over time.

“The method­ol­ogy de­vel­oped to shed light on this pre­vi­ously un­charted area of the mar­ket will con­tinue to have a life be­yond this project,” he said.

In ar­riv­ing at their find­ings, re­searchers worked with man­u­fac­tur­ers, in­stall­ers, whole­salers and im­porters to es­ti­mate how much join­ery might be used in Hous­ing In­dus­try As­so­ci­a­tion’s ‘stan­dard house’, both for new dwellings and prop­er­ties un­der­go­ing ren­o­va­tion.

Be­cause not ev­ery house is the stan­dard house, these cal­cu­la­tions were then scaled us­ing the av­er­age sizes of dif­fer­ent dwelling types. This gave a fig­ure of 605,466 cu­bic me­ters of wood pan­els/ join­ery sub­strate be­ing fit­ted in Aus­tralia house­hold kitchens dur­ing the time pe­riod.

It was then cal­cu­lated that 516,194 cu­bic me­ters of that join­ery sub­strate had been pro­duced lo­cally in Aus­tralia, lead­ing re­searchers to de­ter­mine the re­main­ing 89.272 cu­bic me­tres (or 15% of the to­tal) must have been im­ported.

High­light­ing the stats at the re­cent In­sights & Out­look Con­fer­ence.

Tim Woods In­dus­tryEdge Man­ag­ing Di­rec­tor.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.