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Timber industry challenges: Rising costs and global headwinds test resilience
EEconomy

Timber industry challenges: Rising costs and global headwinds test resilience

  • August 22, 2025

The lack of demand, combined with increased running costs from electricity, compliance and insurance, meant sawmills felt the squeeze.

The overseas markets were also unstable, due to conflict and tariffs.

“Hopefully, we might see a bit of a glimmer of light in the future in terms of building consent numbers starting to climb again, but really, it seems like a distant thing at the moment,” Ilott said.

“It’s just batten down the hatches and try to do the best you can.”

He said the loss of sawmills could be devastating for small towns, where they were often the largest employer, but despite the tough times, most mills were family businesses, and people would not walk away easily.

“Some mills in New Zealand are now into their fourth and fifth generation, so they don’t walk away from that sort of lifetime commitment lightly.”

– RNZ

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