Forest Products Industry
Construction – returning to trend no new surge
A reacceleration in the quarterly pace of growth for national construction costs is suggested to be a return to trend rather than a new surge, according to CoreLogic. Source: Timberbiz The Cordell Construction Cost Index (CCCI) tracks the cost to build a typical new dwelling, recorded a growth rate of 0.8% over the three months to December. This marks a reversal of the easing trend seen over the previous four quarters when the quarterly CCCI reading went from 4.7% in Q3 2022 to 0.5% in Q3 2023. The annual growth rate for the 2023 calendar year was 2.9%. CoreLogic Economist Kaytlin Ezzy said although the quarterly CCCI reading has risen, the latest growth rate remains 20 basis points below the pre-COVID decade average of 1.0%. “This suggests that reacceleration is more a return to trend rather than a new surge in construction costs,” Ms Ezzy said. “While up over the quarter, the annual change in residential construction costs continued to ease as larger quarterly increases fell out of the annual calculation.” At 2.9%, the latest 12-month increase was the smallest annual rise in the national CCCI since the year to March 2007 (2.7%) and below the pre-COVID decade average (4.0%). “This suggests that growth in construction costs have normalised after recording a recent peak of 11.9% over the 12 months to December 2022, albeit at a higher level. Although 26.6% higher than at the onset of the pandemic, the recent surge in CCCI is below the increases seen across national house values, with CoreLogic’s Home Value Index rising 36.5% over the same period,” Ms Ezzy added. CoreLogic Construction Cost Estimation Manager John Bennett said pricing remains generally unsettled, with no clear trend seen across most product types. “Depending on the supplier, both increases and decreases were recorded in timber and metal prices, although we have seen rises in the price of hardware and chemical items. This tells me suppliers are either bringing their product pricing back down to acceptable levels from the increases during the Covid period, or they are increasing to set up for the year ahead,” Mr Bennett said. “In 2023 there was a bit of uncertainty around what the fallout from the interest rate increases would be and therefore the overall impact on the building industry. While the latest figures show the market has settled down, I don’t think we have seen the slowdown many were expecting. “While dwelling approvals are still well below historic averages, there is still an elevated level of projects under construction which is keeping cost pressures high,” he added. Price rises were also varied across the states, with an increased growth rate seen in NSW, Victoria and WA, while SA and Queensland both saw a reduction in quarterly CCCI growth. Ms Ezzy said the outlook for construction costs over the coming year is uncertain. “While it’s unlikely we’ll see any declines in construction costs, the pace of growth could be influenced by several factors. Although national dwelling approvals have risen from a recent low of 12,185 in January, the latest data from the ABS showed that dwelling approvals remained -15.8% below the decade average in November at around 14,500. Although a number of projects are still moving through the construction pipeline, the recent lull in approvals could result in a shortfall in new projects, which would help keep growth in building costs low, due to greater capacity in the construction sector. “However, with the CPI continuing to ease, it’s looking increasingly like we’ll see a cash rate cut in the second half of 2024, which could fuel housing demand for both established and new dwellings. Regardless, the normalisation in CCCI growth will help provide some certainly for builders, insurance companies and homeowners alike,” she said. The CCCI for NSW rose 1.0%, up 40 basis points on the previous quarter but only 10 basis points above the pre-COVID decade average of 0.9%. The annual reading eased to 3.1%, the lowest annual change since the 12 months to March 2021. Victoria’s CCCI rose 1.1% over the quarter, up from 0.3% in the September quarter, making it the fastest acceleration in construction costs among the states. The annual increase continued to ease to 2.9%, down from a recent high of 13.0% over 2022 and is Victoria’s lowest annual change since the 2016 calendar year (2.6%). Queensland recorded the lowest quarterly rise at just 0.1%, down from 0.8% in Q3, bucking the acceleration trend. This is the state’s lowest quarterly result since Q1 2001 when CCCI fell -0.1%. The December quarter’s weaker growth helped bring Queensland’s annual growth rate back in line with the other states at 2.8%. In WA, construction costs rose 0.7% over the quarter, up 50 basis points on Q3. Annually, WA’s CCCI increased by 2.3%, which was the lowest annual rate among the states. SA’s CCCI Increased by 0.5%, down from 0.6% in Q3, also bucking the national trend. This took SA’s annual change in construction costs to 2.8%. CoreLogic researches and reports on materials and labour costs which flows through to its Cordell construction solutions to help businesses make better decisions, estimate rebuild and insurance quotes easily and, ultimately, price risk effectively. For more information visit www.corelogic.com.au/news-research/reports/cordell-construction-cost-index
Categories: Forest Products Industry
It’s time for dramatically increased disaster mitigation action
Increased costs of living are a very big issue across Australia and continues to increase for businesses and homeowners. Source: John O’Donnell The author has previously provided information in relation to this matter in the article linked here: The above linked article considers: Increasing Living Cost Indexes (LCI) and CPI and declining real household disposal income in Australia since 1960. Three major concerns in relation to natural disasters, inadequate mitigation expenditure, cost of living and rising insurance costs. Nine huge opportunities in relation to reducing disaster costs and associated insurance costs. The author has reviewed additional information that has come to hand below. Widespread concern in relation to increasing insurance premiums As highlighted in a recent article by Leith van Onselen in MacroBusiness Australian Economy Call for inquiry into surging insurance premiums dated Wednesday, 6 March 2024, there is widespread concern in relation to increasing insurance premiums: https://www.macrobusiness.com.au/2024/03/call-for-inquiry-into-surging-insurance-premiums/ Former Australian Competition & Consumer Commission (ACCC) chair Allan Fels has called for the ACCC to investigate the insurance sector over its recent hike in insurance premiums. “There is massive public discontent with the rise in insurance premiums and a deep concern they greatly exceed inflation,” Mr Fels said. “The price rises seem excessive in comparison with increases in costs and risks and seem exploitative of consumers and small businesses in particular.” Current ACCC chair Gina Cass-Gottlieb “shares concerns broadly” around insurance affordability and pricing and said it would be up to the federal government to decide if it wants the ACCC to conduct a general price inquiry into the insurance sector. Indeed, insurance premiums are now the fastest growing component in the CPI basket. The author considers that this widespread concern is being felt by businesses and homeowners. NSW emergency services funding reform consultation paper, an assessment of who is paying what Further information in relation to the increasing costs of living and insurance is outlined within the NSW Government April 2024 emergency services funding reform consultation paper highlighted in the link below: https://www.treasury.nsw.gov.au/sites/default/files/2024-04/20240410_emergency-services-funding-reform-consultation-paper.pdf The author gives the NSW Government credit for undertaking this review, although it is highly likely that businesses and home owners will still pay the bulk of emergency services funding collections, so it is unlikely that there will be major cost of living benefits. More on this issue is outlined below. The consultation paper notes Help reform the way the state’s emergency services are funded. On 16 November 2023, the NSW Government announced its commitment to reform the way the state’s emergency services are funded. Three key objectives of the reform are: Reduce insurance costs for households by spreading the levy across all property owners; Protect pensioners and vulnerable members of the community; and Ensure a revenue-neutral model that sustainably funds our emergency services agencies. This consultation paper is the beginning of public consultations to inform the design, scope, features and transition arrangements for reforming the emergency services funding system. The consultation paper also notes: Currently, NSW’s emergency services are funded by the Emergency Services Levy on insurance companies (73.7%), local governments (11.7%) and the State Government (14.6 per cent). These fund the costs of Fire and Rescue NSW, NSW Rural Fire Service and the NSW State Emergency Service. The NSW State Government only paying 14.6% is a major concern, it is very low. The author is of the opinion that State and local government should be paying more for these services because: The state and local governments do not adequately focus on nor adequately fund bushfire and flood mitigation, and this results in increasing disasters. Focus on bushfire suppression and minimise mitigation, increasing disasters, especially noting that one dollar spent on mitigation can save at least two dollars in recovery costs. Prescribed burning is at miniscule levels, nowhere adequate to reduce bushfire disasters. Fuel loads are very high and spread over very large areas of the landscape. There is inadequate community protection as evidenced during the 2019/ 20 bushfires. There are limited incentives for the government to optimise/ reform emergency services agencies. Investors should have confidence that the funding they invest isn’t lost in ongoing disasters, which are happening regularly across NSW. The increasing focus on large plane suppression is very costly not that effective in forests. The author considers that State Governments are in the prime position to optimise/ refine the emergency services sector and better able to focus on addressing inadequate mitigation inputs, particularly in relation to bushfire and flood mitigation. Examples where the current approaches in NSW haven’t worked include: Very low fuel mitigation levels and high contiguous fuel loads just before the disastrous 2019/ 20 bushfires. Inadequate extent of flood mitigation protecting north coast and other communities before the disastrous 2022 floods. As noted in the consultation paper, the existing Emergency Services Levy increases insurance premiums in NSW by around 18 per cent for residential property and around 34 per cent for commercial property. According to analysis by the Actuaries Institute, removing the Emergency Services Levy from insurance policies could reduce insurance costs of a typical fully insured home by $387 per year. Many homeowner insurers on the North Coast of NSW for example would be paying at least three times this amount for the ES, it’s not fair nor right. Individuals and business should be removed from any levy payments or like, the same approach for police, education, roads. The author considers that the business and resident contributions to the levy are excessive, and increasing. Benefits of increased disaster mitigation across eastern Australia For bushfires, markedly increased bushfire mitigation results in: Reduced bushfire suppression costs. Reduced bushfire impacts and recovery costs for both insured and not insured. In Australia, as noted in https://www.preventionweb.net/media/82890/download This document notes “one dollar spent on mitigation can save at least two dollars in recovery costs. Committing additional mitigation funding makes economic sense”. Reduced insurance costs and emergency services levy needs. Reduced bushfire environmental Reduced loss on infrastructure, including plantations and timber supply. Reduced consequent flood impacts after intense bushfires. Likely reduced La Nina impacts for the […]
Categories: Forest Products Industry
Forestry Corp seedlings to feed koalas
Koala Conservation Australia (KCA) has received its latest delivery of eucalypt seedlings for the annual community koala tree giveaway. The donation from Forestry Corporation consists of a variety of seedlings grown at its Grafton Nursery. Source: Timberbiz Around 25,000 seedlings have been donated this year for local planting projects supporting koala populations on the Mid North Coast. KCA will use the feed tree species, which are favoured by koalas, to support community and private planting programs. These plantings will improve connectivity through the creation of koala corridors while providing future food and habitat for koala populations on the Mid North Coast. Forestry Corporation’s Partnership Leader, Leah Moncrieff said the seedlings have now been delivered with KCA’s koala tree giveaway starting this week. “The seedlings can be ordered through the KCA website and picked up from the Koala Hospital grounds in Port Macquarie for bush regeneration plantings, community plantings and private landholder plantings,” Ms Moncrieff said. “Forestry Corporation is passionate about Koalas and is excited to support KCA’s efforts in providing the seedlings to the public. “The seedlings come with easy-to-follow information from Forestry Corporation to ensure successful growth. “These resources, available from KCA, can assist in selecting the right species to be planted in the right location, when and how to plant, how to alleviate ongoing risks and listing maintenance of the seedlings until they become established.” The initiative between KCA and Forestry Corporation, started five years ago, and has now seen more than 150,000 koala feed trees donated to the Koala Hospital for distribution to local landowners and community groups. KCA General Manager Maria Doherty said the koala tree delivery has been gratefully received. “KCA and Forestry Corporation have a great relationship working together to improve koala conservation in our local region, through tree plantings, tree giveaways and partnering at Guulabaa where the world’s first wild koala breeding program has commenced,” Ms Doherty said. KCA Conservation Manager, Scott Castle said the koala feed tree delivery is perfectly timed with ongoing works at Guulabaa – Place of the Koala, Cowarra State Forest. “We will be using some of this year’s donated trees to regenerate bushland areas and landscape at Guulabaa for the new Wild Koala Breeding Program,” Mr Castle said.
Categories: Forest Products Industry
NZ campaign to stop cuts to science funding
A coalition is being launched in New Zealand to campaign against cuts to science and science funding . The Save Science Coalition is a group of organisations, including unions and scientific societies, with an interest in ensuring that New Zealand has a well-functioning and well-funded science and research system. Source: Timberbiz In addition to opposing cuts, the goals of the Save Science Coalition are to highlight and catalogue what is being lost through the current cuts; defend support for world-leading indigenous research including mātauranga Māori; and make the case for a foundation of support for public science and re-committing to a target of 2% of GDP to be invested in research and development in Aotearoa New Zealand. Government spending cuts forced Scion, the dedicated Crown research institute charged with growing forestry exports, to propose shedding a significant number of scientists. Scion which is headquartered in Rotorua, New Zealand told staff that 30 jobs or around 10% of its workforce may go. This impacts scientists, technicians and support staff. “We know that investment in science and research creates future wealth for Aotearoa New Zealand, ensures we can address the challenges we face in Aotearoa New Zealand such as climate change, resilience, and our growing and aging population, and allows our country to prosper. We are concerned about large parts of the science workforce moving overseas to find work, which will take decades to reverse and rebuild,” says Dr Lucy Stewart, spokesperson for the Save Science Coalition. “This will have devastating impacts in areas where expert knowledge of our landscapes, hazards, ecosystems, and people is globally unique. We are particularly concerned about the harm cuts will cause to world-leading indigenous research, including rangahau mātauranga Māori which can only be done in Aotearoa New Zealand,” says Stewart. The launch of the coalition follows ongoing government announcements, media stories, and cuts to public funding across the science sector. This includes the end of the National Science Challenges, shelving of Te Ara Paerangi Future Pathways program, removal of Wellington Science City funding, announcements about mass redundancies of science staff in government organisations, alongside other funding streams drying up for science organisations. This is compounded by the existing university funding crisis. “Funding for science organisations comes from many different sources. To help the public appreciate the breadth of the current cuts, we are putting together a detailed document for the public about all of the recent funding cuts across the science sector,” explains Stewart. “This government did not campaign on a platform of cuts to science. However – they are pressing ahead with an agenda that the New Zealand public did not vote for.” The Save Science Coalition members are: New Zealand Association of Scientists Public Service Association Te Pūkenga Here Tikanga Mahi Te Hautū Kahurangi | Tertiary Education Union Academic Freedom Aotearoa NZ Society of Endocrinology NZ Ecological Society NZCTU | Te Kauae Kaimahi Physiological Society of New Zealand New Zealand Institute of Forestry Geoscience Society of New Zealand Aviation and Marine Engineers Society NZEI Te Riu Roa New Zealand Institute of Chemistry
Categories: Forest Products Industry
Great wrap for Opal
Great Wrap, a B Corp Certified material science company, has partnered with Opal one of Australia and New Zealand’s leading cardboard packaging and recycling companies, to exclusively offer the only Australian made compostable machine pallet wrap for businesses of all sizes in Australia and New Zealand, enabling them to divert traditional pallet wrap away from landfills. Source: Timberbiz Great Wrap’s certified compostable machine pallet wrap, which is certified by the Australasian Bioplastics Association, is made with compostable biopolymers and plant-based oils, is a packaging solution for businesses that secures pallet loads while minimising supply chain waste. Given Australia generates 2.5 million tonnes of plastic waste annually, there is an urgent need to adopt compostable materials. Opal Packaging Plus, which has been appointed as the exclusive distributor of the Great Wrap, is a business unit of Opal. Great Wrap will add to Opal Packaging Plus’ more than 15,000 product range and is the first compostable stretch wrap it offers. “Our machine pallet wrap stands out because it’s fully compostable, capable of a 250% pre-stretch, operates smoothly on high-speed lines, and maintains high tension for ultimate reliability. Our wrap is denser and stronger than traditional wrap, meaning our customers can reduce their wrap thickness to achieve the same results as they would with traditional wrap,” Jordy Kay, Co-founder of Great Wrap said. The Australian Government has set clear national packaging targets including 100% of packaging to be reusable, recyclable, or compostable by 2025, and 70% of plastic packaging to be recycled or composted by 2025. While currently targeting the Australian business landscape, Great Wrap is also working to build a biorefinery that will produce a marine-degradable material called PHA, to continue to change the packaging landscape. Later this year, Great Wrap is also planning to supply its compostable hand pallet wrap for exclusive distribution through Opal Packaging Plus.
Categories: Forest Products Industry
Brisbane set to host the world conference on timber engineering
Brisbane will host the World Conference on Timber Engineering in June next year, only the second time it has been held in the southern hemisphere since its inception in 1998. Source: Timberbiz The conference attracts between 800 and 1200 participants worldwide with WCTE 2025 International Scientific Committee representing 22 countries. Many participants will be presenting in a specific session related to the conference theme and their expertise. The first World Conference on Timber Engineering was held in 1998 in Montreux, Switzerland however, the forerunner of WCTE dates back to May 1984 with the Pacific Timber Engineering Conference (PTEC) in Auckland, New Zealand. In 1998 the world’s timber engineering society decided to coordinate the former world events and to introduce a biennial rhythm with consecutive conferences in Europe, America, Asia and the Pacific. This rhythm was altered in 2020 due to Covid, and since 2021 the conference has been held every odd year. WCTE is a world leading scientific dissemination forum for presenting and discussing the latest technical and architectural developments and innovations in timber engineering and construction. The scope covers research, education, and practice topics from all over the world. The conference has attracted wide international representation and attendance, bringing together researchers, engineers, architects, consultants, contractors, project managers, suppliers, and manufacturers from across the globe. The host of WCTE 2025, The University of Queensland (UQ), is a leader in timber engineering and administers the Australian Research Council Research Hub to Advance Timber for Australia’s Future Built Environment (ARC Advance Timber Hub). This 5-year Research Hub (commenced in 2023) is committed to the future development of sustainable timber buildings and the emerging opportunities and innovations that are needed in manufacture, supply, design, and construction. The Hub’s large research team from 12 Australian Universities and five international universities/research institutes, in collaboration with 28 industry partners, aims to enable an advanced manufacturing transformation of Australia’s timber and construction industries, developing a roadmap to change that unlocks substantial industry and social value. The ARC Advance Timber Hub also collaborates with other research centres across Australia to enhance the collective research in timber engineering in Australia and the Pacific. The centres include: Queensland Government – Department of Agriculture & Fisheries – Forest Product Innovation Centre Centre for Sustainable Architecture with Wood – University of Tasmania National Centre for Timber Durability and Design Life – University of the Sunshine Coast – QLD And it has established links with academic and industry research collaborators from past research centres which include: ARC Centre for Advanced Manufacturing of Prefab Housing (2016 – 2022) – University of Melbourne ARC Research Hub to Transform Future Tall Timber Buildings (2016 – 2022) – The University of Queensland. The WCTE 2025 Conference Committee is inviting authors to submit two-page abstracts/mini papers by 30 June 2024. Submissions are sought for both oral and poster presentations, which must address the principal conference theme ‘Advancing Timber for the Future Built Environment’. The WCTE 2025 technical program will have a focus on research carried out by the timber design and construction community due to the rise in engineering and architectural firms, developers, and investors, now emphasising timber engineering as a preferred solution for many projects. For more information, go to https://www.wcte2025.org
Categories: Forest Products Industry
The ABC has not learnt its ABCs – more false claims against VicForests
On Thursday 23 May, the ABC aired a segment on Mornings with Debbie Rybicki that VicForests says contained false and misleading claims of damage to the ecosystem, not conducting surveys, and failing to adequately regenerate coupes. Source: Timberbiz VicForests was not approached to provide a statement. However, VicForests says that it has provided the ABC with multiple statements contradicting such claims over the preceding years. It has also multiple pages and statements on its website detailing how VicForests met its obligations in protecting threatened species and their habitat and regenerating what was harvested. These are a matter of public record and have been provided to various ABC outlets. VicForests is a government agency, overseen by an independent board and otherwise subject to the ordinary governance obligations and control of any government body. In a statement VicForests said that it has repeatedly demonstrated its commitment to meeting, and often exceeding, the explicit rules and regulations for environmental management set by Government. This includes demonstrating that it continued to meet its obligations and the required standards for successful regeneration. VicForests states that it has addressed the false regeneration claims on numerous occasions and you to read them on the VicForests website: Setting the record straight – yet again VicForests response to ABC’s regeneration article Setting the record straight (again) VicForests response to ABC story on regeneration False claims do harm. This includes the impact on the mental health and wellbeing of people who have dedicated themselves to the management of forests for future generations. Broadcasting false information to the public supports an empty rhetoric; the national broadcaster should encourage constructive dialogue and avoid the peddling of false claims.
Categories: Forest Products Industry
‘Bond King’ Bill Gross warns Trump would worsen deficits and be ‘more disruptive’ for the bond market than Biden, report says
Categories: Forest Products Industry
Tesla Shareholders Advised to Vote Against Elon Musk’s Pay Package
Categories: Forest Products Industry
Could This "Magnificent Seven" Stock Become the First $10 Trillion Company by 2035?
Categories: Forest Products Industry
This Artificial Intelligence (AI) Stock Has Tripled in a Year, and You May Regret Not Buying It Hand Over Fist Before It Soars Higher
Categories: Forest Products Industry
If You'd Invested $500 in Rivian Stock 3 Years Ago, Here's How Much You'd Have Today
Categories: Forest Products Industry
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