timconnews

Leading and promoting the UK timber packaging industry

PresidentsOverviewHot off the press, is news that TIMCON nowhas an agreement with the NWPCA to be thesole UK distributor for Pallet Design Software(PDS) which will only be available to TIMCONmembers, and, includes membership of theNWPCA as well. Check out the pages insidethis newsletter for more details.The highlight for the year was undoubtedly theFEFPEB Congress, held in Cork, Ireland inOctober organised by TIMCON with theassistance of our industry colleagues andfriends in Ireland.

Delegates from FEFPEB’s membership -including newest additions Poland and theCzech Republic - took part, as well ascolleagues from as far afield as the USA,Canada, South Africa and Australia.Meanwhile, we welcomed the largest evergroup from the Far East, with attendees fromChina, Japan and South Korea, not onlymaking this the most internationally well-representedcongress todatebut it alsohadarecordattendanceof delegates, partners andsponsors. This important event for ourbusiness was also well supported by ourhome membership, who took advantage ofthis once-in-a-decade opportunity tomeet ontheir owndoorstopassociates fromaround theworld.

The congress agenda was as diverse as thedelegate list, tackling subjects from country-by-country updates and latest palletproduction figures to industry promotion andhow the EU’s policy priorities support woodmore than any other material. There wereinteresting visits to companies that representsome of the very best pallet manufacturingand sawmilling in the region, and there wasample time for socialising and networking - afactor that always makes the FEFPEBcongress essential, not tomention enjoyable.

The FEFPEB Congress represents aculmination of spirit of togetherness that runsthroughout the wooden pallet and packagingindustry throughout Europe, and indeedacross the world. And we, as well as ourfriends inEuropeandAmerica, arecommittedtospeakingwithonevoiceon issues thataffectour industry globally, whether its biomass,ISPM15, environmental and competitormaterials, TIMCON is not fighting alone to getours –ultimately your –messageacross. Youwill have seen a lot of media exposure, notleast theTTJ,whose journalistswere invited toattend theCongress. It certainly gave themavaluable insight intowhatour industry isabout,and its importance, a fact that arguably somepublicationsunintentionallyoverlook. StephenPowneys article is reproduced here for yourinformation to read at your leisure.

Aswepasson thecongressorganiser’sbatonto the next FEFPEB member association, wecan collectively feel proud of the event westaged, which enjoyed excellent feedbackfromdelegatesandsponsorsalike.And,whileTIMCON will take a well-earned backseat atthe next one, we are very much lookingforward to attending. This is vital event on theindustry’s calendar.

Finally, membership renewal notices havebeencirculatedand Iwouldurgeyou to renewfor 2016. We already have a number of newmembersonboard, testament to the importantwork we do on your behalf and the benefitsthat membership brings, both tangible andintangible.

So, let us continue our march into 2016 asa unified confederation, with strength innumbers to face any upcoming challengesthat next year will undoubtedly bring.

I wish you and your families a veryMerry Christmas, and a healthy andprosperous New Year.

CCOONNTTEENNTTSS• President’s Overview

• Timber Report – Winter 2015

• CBI Updates

• Latest PMI Report on Manufacturing

• TIMCON signs PDS UK Distribution Agreement

• Markets in Transition

• FEFPEB Congress Report

• £1m Forestry Fund Open for Business

• CONFOR: Forest Grants Can help

• HSE Statistics

• HSE News

…..and much more!

John Dye – President

Winter 2015

Welcome to the winter edition of thenewsletter. As we round off 2015,TIMCON can look back and see what hasundoubtedly been a very busy year.

Winter 2008 |Timcon News |2

Winter 2015 |Timcon News |2 If the supply chain dominated the

industry’s thinking in 2014, 2015 has beenso by that of demand.Several conditions have contributed to thissituation. World demand has slowed withChina reporting economic growth at itslowest level for six years. US demand hasbeen sluggish and Eastern and other FarEastern markets remain difficult. Certainlyone independent forecaster has revised itsprediction to state that chances of globalrecovery in 2016 are meagre. Economicallythe UK has remained the strong man ofEurope with the Euro remaining weak againstSterling throughout the year. This has hadthe effect of encouraging importation oftimber from the Continent, helped by thedecreases in oil prices that continued toprevail throughout 2015 enabling shippers totake advantage of cheaper freight rates tothe UK. These increases in foreignimportation have forced the UK saw millers’hand and timber packaging manufacturershave at least faced far more favourableconditions during this year then for sometime. There can be no doubt that the eventsof 2014 did the industry no good at all: Thenew pallet industry remains challenging,beset with competition from second handpackaging and rival materials. Therefore forits own credibility the industry badly needsstability in the supply chain, raw materialincreases over 20 per cent in a twelve monthperiod are extremely damaging to a productwhose selling cost contains at least seventyper cent of timber value. From a saw millers’ point of view theconstruction market has remained haphazard. Certainly demand was slow duringthe first quarter owing to the uncertainty

caused by the May General Election and thelast months have seen a slowdown inconstruction. However the level of homebuilding required in the UK remains a hotpolitical potato and will do so for some time.This may cause problems in the supply chainfor the packaging industry in the future, atpresent UK saw millers’ face competitionfrom the importation of Scandinavian andRussian produce; slower grown C24 timberwhich at current price levels naturally proveattractive to buyers. Fencing demandthough has remained steady. For the palletbuyer though UK sourced timber still hasdistinct advantages over its Baltic rivals,namely shortages of supply curve, totalsoftwood production and accurate andconsistent sawing. Moreover much Balticproduction is often characterised by anamount of saw dust that is unacceptable tomany UK pallet buyers. This is particularlyprevalent during late winter, spring to earlysummer shipments when timber is cut fromlogs harvested during the colder months ofthe year. This proves a real headache duringpallet production. However there is no doubtthat for certain uses Baltic production willremain the best option especially for lighterdisposable pallets with Latvian mills preparedto cut at 70mm x 15mm for example. Certainlyto an industry faced in real terms with lowerprofit margins Latvian timber purchaseremains a temptation with its greater variancein size offering. There have been sometempting offers during the year. Moreover theEuropean Saw Log Price Index showed thatsince 2014 log prices dropped the most inAustria, Germany, Norway and Latvia. To datethough there has been no resumption of SouthAmerican pallet wood supply to the UK norany volume from Portugal.

Despite the easing in the supply chain UKwooden packaging manufacturers facedaunting times ahead. It seems that demandwill remain weak for at least the first half of2016 with over capacity combined withdemand for second hand and repairedpallets proving a perennial burden for theindustry. Moreover reduction in oil price andthe strengthening of Sterling may lead to thethreat of importation of manufactured palletsin to the UK from Europe. This has long been a problem particularly toBritish manufacturers of Euro pallets fromEastern bloc countries, but this may spreadto other specifications from any Europeancountry with a lower wage level than the UKand a ready supply of pallet timber. Thesteady decline in European log pricesproving a further danger. Nevertheless despite the difficulties that maylie ahead in 2016 the industry should begrateful for at least the easing of the supplychain that has occurred this year. However itwould appear that dependence on UKsourced timber will continue despite theinroads that the Baltics have made recently.Pallet buyers have now become used to thehigh quality timber received largely as a resultof the high level of investment made by theUK sawmills. However worrying signs stillappear such as saw millers’ being out bid bybiomass for the smaller pallet size logs.Significantly UK forests will reach peakproduction around 2030 with volumesdeclining in the years following this is onlysome fifteen years away. It is likely that thenext generation of pallet makers will faceeven greater supply problems than thecurrent.

Timber Report – Winter 20152015 has proved to be a year of total contrast to its predecessor; many of the difficult conditions that characterized timber supply sideduring 2014 were mitigated to an extent by the external factors prevailing in both the European and World economies.

Output among small and medium-sized (SME) manufacturers fell in the three months to October, as both domestic and export orders dropped, according to the latest CBI SME Trends Survey.The survey of 434 smaller firms reported thatoutput growth fell at the fastest pace sinceJanuary 2013. Domestic orders also fell forthe first time in over two years, whilst exportorders declined at their fastest pace since2009.However, domestic orders and output areexpected to steady in the coming quarter.Meanwhile, exports are expected to declineat a slower pace.Growth in numbers employed weakened inthe last quarter, and employment is expectedto be broadly flat through to January.Business optimism fell for the first time sinceJanuary 2013, as did optimism over exportprospects in the year ahead. Firms no longerexpect to increase expenditure on productand process innovation in the year ahead.Rain Newton-Smith, CBI Director ofEconomics, said:“As demand has fallen, especially in the faceof a strengthening Pound, our smallermanufacturers have had a tough quarter, withorders and output volumes dropping.“Manufacturers expect conditions to stabilisesomewhat over the quarter ahead, butremain concerned about the outlook fordemand.

“Innovation and technology are crucial todriving productivity, and that’s why it’s vital theGovernment uses the ComprehensiveSpending Review to prioritise spending thatsupports skills and innovation, spurring arevival in productivity growth in the UK.”Key findings – three months to October:• 26% of small and medium enterprise(SME) manufacturers reported an increase intotal new orders, and 38% said theydecreased, giving a rounded balance of -11%. Modest growth (+4%) is expected inthe coming quarter• 25% of firms said domestic ordersincreased and 36% said they decreased,giving a balance of -11%, the lowest sinceApril 2013 (-15%). Domestic orders areexpected to remain broadly flat (+3%) overthe next three months• 10% of firms reported an increase inexport orders and 46% said they fell, giving arounded balance of -35%, the lowest sinceApril 2009 (-39%). Firms anticipate exportorders to fall at a significantly slower pace (-8%) in the next quarter• 23% of SME manufacturers said outputincreased and 31% said it decreased, givinga balance of -8%. Growth is expected to

rebound somewhat next quarter (+7%)• 22% of firms said they were moreoptimistic regarding their businesssituation, while 29% said they wereless optimistic, giving a roundedbalance of -8%. Optimism aboutexport prospects for the year ahead fell(-14%)• Numbers employed continued to rise,with 23% of firms saying they had seen agrowth in headcount and 15% saying theyhad seen a reduction, giving a balance of+8%• SME manufacturers are planning toreduce their spending on plant andmachinery (-6%) and buildings (-13%) overthe next twelve months. However, investmentintentions remain above average (-7% and -17% respectively)• Average unit costs were broadly flat(+2%), after having been negative in theprevious quarter (-5%). They are set to pickup marginally in the three months to January(+5%)• Average export prices continued to fall (-16%), with further falls expected next quarter(-12%).

(Source: CBI Press Team)

Domestic and export orders fall among small firms – CBI

Carolyn Fairbairn, CBI Director-General, said:“This was a good spending review for longer-term investment in the economy but there’s asting in the tail in the size and scope of theApprenticeship Levy.“Businesses will be pleased to see theChancellor staying the course on deficitreduction, his commitment to an industrialstrategy, and the emphasis on nurturing avibrant business community.“Standouts include maintaining spending oninfrastructure; ramping up housebuilding;support for energy-intensive sectors and foradvanced manufacturing.“Business recognises there are tough choicesto be made in balancing the books, but manyare reaching a tipping point, where thecumulative burden of the living wage,apprenticeship levy and business rates riskhurting competitiveness.“The Apprenticeship Levy, set at 0.5%, is asignificant extra payroll tax on business andby widening the net it will now catch moresmaller firms. We welcome the creation of alevy board to give business a voice on howthe money is spent and will work with theGovernment to ensure a focus on quality.“Many firms will be disappointed to have beenkept hanging on for a much-needed review ofbusiness rates until next year’s Budget.“Firms will be reassured by the protection ofthe science budget, but the shift from grants toloans for Innovate UK could dampen bold andgame changing innovation, particularlyamongst smaller businesses.”

On infrastructure, Carolyn said:“It’s good that the Government has increasedcapital spending and remains committed toroad and rail investments, including the Trans-Pennine railway. Businesses will want to seepromised projects breaking ground as earlyas possible in this Parliament to maintainmomentum.”

On housing, Carolyn said:“Building more affordable homes is critical tofirms being able to recruit and retain talentedemployees across the country and will providea shot in the arm to the construction sector.“Schemes like Starter Homes, extensions toHelp to Buy, and releasing more public sectorland could bring us closer to building the240,000 homes a year the UK sorely needs. “However, a healthy and vibrant housingmarket requires a mix of tenures such asprivate rented properties, affordable rent aswell as homeownership.”

On compensation for energy intensiveindustries, Carolyn said: “Industry will welcome this support to helpmanage energy costs, enabling firms tocompete on a more level playing field withtheir international peers. Businesses will beeager to see more detail on who will qualify forthis assistance.”

On industrial strategy and innovation,Carolyn said:“Firms will be reassured by the protection of thescience budget, the catapult network, theAdvanced Propulsion Centre and theAerospace Technology Institute, which underpinimportant productivity gains in key sectors. Butwe will need to scrutinise any shift from grantsto loans for Innovate UK which could dampenbold and game changing innovation, particularlyamongst smaller businesses.”

On the apprenticeship levy, Carolyn said:“With the levy set at 0.5%, even thosebusinesses most committed to training anddevelopment won't be able to recoup theiroutlay, and it looks like an additional payroll tax.”

On business rates, Carolyn said:“It’s disappointing to see the promisedresponse to the Structural Review of BusinessRates pushed back to the 2016 Budget. Thecurrent system is based on a decades-oldmodel that no longer reflects economic

conditions, so alleviating the burden cannotcome soon enough.“While extending the small business rate reliefscheme for another year is positive news,business wants to see concrete steps takento make the system simpler, fairer and morecompetitive to tackle the cumulative burdenupon firms.”

On exports, Carolyn said:“The UK’s export performance lagssignificantly behind our international peers, sowe need a strong and focussed UKTI coupledwith a cross-Government approach tosupporting exports.“Businesses will welcome the focus onprotecting the sharp end of overseas supportthrough our embassies, improving UKTI’sdigital offering, and ensuring efficiency savingsare found in Whitehall.”

On devolution, Carolyn said:“Businesses will be pleased to see furtherdetails on the regional growth agenda,including new enterprise zones and the LocalGrowth Fund. “It’s important for Government and local areasto engage with business and move as quicklyas possible from planning to delivery.”

On public services reform, Carolyn said:“Public services underpin productivity andprosperity. With the population ageing andexpecting more from public services, extrainvestment must be matched bytransformational reform, such as making moreuse of digital transactions, to have asustainable impact.”

On further education, Carolyn said:“Our colleges play an important role in helpingyoung people and adults get on in life andwork, so businesses will be buoyed by thebetter than expected news that the furthereducation budget will be protected.”

The UK manufacturing sector maintainedits positive start to the final quarter, withNovember seeing growth ease onlymoderately from the recent peak attainedin the prior survey month. However, theexpansion remained firmly centred on largecompanies, as the trend at SMEs stayedlacklustre in comparison.The seasonally adjusted Markit/CIPSPurchasing Manager’s Index® (PMI®)posted 52.7 in November, down fromOctober’s 16-month high of 55.2 (originallyreported as 55.5). The headline PMI hasremained above the neutral 50.0 mark ineach month since March 2013.Manufacturing production expanded for thethirty-second successive month inNovember, underpinned by rising levels ofincoming new business. Although the ratesof growth signalled were weaker than in theprior survey month, they remained above

the respective long-run series averages.By sector, the strongest expansion inoutput was seen at consumer goodsproducers. Solid growth was alsoregistered in the investment goods sector.Although the upturn continued atintermediate goods producers, the sectorexperienced a sharp growth slowdown inNovember.Price pressures remained on thedownside, with average input costs andfactory gate selling prices both fallingduring the latest survey month.The decrease in purchasing costs wasespecially marked, with the rate of deflationremaining among the fastest seen in thenear 24-year series history. Lower inputcosts were generally linked to falling globalcommodity prices. Output charges werereduced for the third successive month, ascompanies maintained their

competitiveness by passing on (in part) thedecrease in costs.November saw little change in staffinglevels, as the trend in employment movedback close to stagnation following the solidjob creation signalled during October. Anincrease in workforce numbers wasrecorded in the consumer goods sector,while modest cuts were signalled at bothintermediate and investment goodsproducers.The trend in new export business at UKmanufacturers continued to improve inNovember, as inflows of new work fromoverseas clients rose for the third straightmonth. Companies reported improvedintakes of new business from clients basedin the USA, Germany, Sweden, Turkey, theMiddle-East, Japan, China and also fromother Asia-Pacific nations.

Winter 2015| Timcon News|3

Manufacturing expansion continues inNovember

Response to Autumn StatementThe CBI responded to the Comprehensive Spending Review and the AutumnStatement, given by the Chancellor of the Exchequer to the House of Commons

(Source: CBI Press Team)

Winter 2015 |Timcon News |4

It is essential that pallets be designedcorrectly from the outset. Proper designensures safety, hedges against expensiveproduct damage and is why pallet userswant PDS designed pallets and trust theresults. With so much at stake, palletmanufacturers and users need to be onthe same page.TThhee PPaalllleett DDeessiiggnn SSyysstteemm™™ (PDS) is aproduct specification tool, an engineeringdesign tool, a professional marketing tool,and an educational tool – all contained inan easy to use software packagedeveloped for the wood pallet industry.Since its introduction in 1984, PDS hasdeveloped a highly respected reputationthroughout the material handling industry.When NWPCA released PDS Version 5.1,it marked the 33rd version of PDS over its29 year history. Each new version of PDS incorporates thelatest data, engineering, and technologieswhich result from NWPCA's continuousprogram of research and development.Millions of dollars have been expended onPDS, not only for software development,but on research toward increasedunderstanding of the relationshipsbetween the design and performance ofwood pallets and the entire unit load.

If you wish to place an order, or wantmore information, please contactStuart Hex ontimcon@associationhq.org.uk ortelephone 0116 2747357.

Wooden pallets play a vital role in the world of commerce. In a very real sense “pallets move the world.”For three decades pallet manufacturers worldwide have trusted Pallet Design System™ (PDS) to provideprofessional and safe pallet designs.

Timber Packaging & Pallet Confederation (TIMCON) signs international pallet software agreement

Software for Wood Packaging Engineers, Designers and End-Users:

The Timber Packaging & Pallet Confederation has signed a new agreement with the NationalWooden Pallet & Container Association (NWPCA) for its enhanced Pallet Design System (PDS). The agreement gives TIMCONexclusive rights to market PDS to palletmanufacturers in England, Scotland,Wales, Northern Ireland and Eire(Southern Ireland). TIMCON will offerthe new PDS at a discount as a benefitto its members. Version 5.2 of thesystem will be released this autumn.NWPCA is already working on the nextversion through recently announcedexpanded research partnership withVirginia Tech’s Center for Packaging andUnit Load Design (CPULD) andDepartment of Sustainable BiomaterialsNWPCA has committed approximatelyUS$200,000 in the Virginia Tech projects,

as part of a $1 million investment inadvancing the unit load capabilities of PDSin 2016 and 2017. The focus points of thedevelopments are, specifically:• State-of-the-art research on interactionsand stresses between the pallet andsupported containers (corrugated boxes,pails, drums, shipping sacks) at all phasesof unit load handling, storage and transport• Development of advanced structuralanalysis models of entire unit load system(pallet, supported containers and loadstabilizers)• Hiring additional structural and softwareengineers to complement NWPCA’sexisting team of engineers and researchers

TIMCON President John Dye said:“TIMCON’s relationship with organisationssuch as NWPCA allows us to give ourmembership access to the very latestinternational developments in the woodenpackaging and pallet sector. The renewalof our agreement on PDS with NWPCA isan excellent example of this, giving them,at a substantial discount, access to theleading and most-used pallet designsoftware in the world.

“With PDS, pallet manufacturers andrecyclers in the UK will be better equipped toprovide their customers with pallets that utilizetimber efficiently, while also ensuring the safeand effective transportation of their goods.

Pallet Enterprise Columnist Rick LeBlanc outlines top logistics and materials handling trendsincluding palletization in emerging nations, unit load tracking, supply chain optimization,sustainability, and sanitation concerns.

Winter 2015 | Timcon News | 5

Wal-Mart endorsesWood Grain RPCs from IFCO and Polymer LogisticsWWaall--MMaarrtt ccoonnffiirrmmss ttrraannssiittiioonn ttoo WWoooodd LLooookk RRPPCCss bbyy 22001166Tom Karst reported in the Packer last weekthat Wal-Mart is supporting the move towood look RPCs, which are viewedpositively by customers. Dorn Wenninger,vice president of produce for Wal-Mart,spoke in support of the transition at both theIFCO Systems and Polymer Logisticsbooths. Both companies will be providingthe wood look crates to the retail giant.IFCO Systems recently announced its newRPC service for Wal-Mart.Wenninger expects the transition fromblack RPCs to the new crates to becompleted during 2016. The wood lookRPCs have been successfully tested inWal-Mart stores for 9 months. Three

supercenters in Arkansas trialed PolymerLogistics wood grain RPCs last year. Thatsuccessful test resulted in PolymerLogistics inking a supply deal with Wal-Martin March 2015.As Karst wrote in the Packer piece:Wenninger said he knew immediately afterseeing Polymer Logistic’s wood-look RPClast year that it was a direction he wantedWal-Mart to go. He said the wood-lookRPCs would share the same footprint,reverse logistics, return and wash systems.“It is the same suppliers, the same growers,it is the same footprint,” he said.By 2016, Polymer Logistics will have fivewash facilities in the United States by 2016,

with new operations in Illinois and Georgiain addition to other existing wash locationsin Riverside and Salinas California, as wellas San Antonio, Texas.Feiner believes the wood grain RPC willbecome the industry standard and willsupplant the industrial black design.

Markets in Transition:Material Handling Trends as Pallet Market DisruptorsPallet user guru, Rick LeBlanc, identifies key material handling trends that pallet suppliers mustmonitor to serve customers and stay ahead of any market disruptors.When it comes to material handlingtrends and how they may be shapingcustomer preference for pallets, what arethe potential market disruptors that youare tracking? The following are some keytrends that you should be following.

Core Shortage and Pallet Price Increasesas a Driver for Custom PoolingIn the recent webcast from ModernMaterials Handling, “Money Hiding in PlainSight,” Dr. Mark White stressed what hesees in his own practice, and what heinterpreted from survey results, thatindustrial pallet users (as opposed toconsumer products applications) areincreasingly interested in having palletproviders manage returnable pallet systemswhere they provide a more attractive pricepoint than expendable pallets. Palletcompanies such as Doug Moore’s Mid-South Lumber pioneered pallet retrievalservices over 20 years ago, but perhaps thetime is right for that practice to finally gomainstream. Improved tracking andtransport management technologies,combined with higher pallet prices, might beincreasingly turning the needle towardscustom pooling opportunities.Trend to Smaller Format Retail Outletsand Floor-ready DisplayAs retailers such as Walmart continue toshift towards smaller footprint local storessuch as Walmart Express, and conveniencestores look to also compete more efficientlyfor the urban shopper, there is an increasingcase for smaller footprint pallets. Plasticpallet suppliers such as ORBIS and RehrigPacific have aggressively targeted thisniche, and for its part, CHEP launched itshalf pallet a few years ago with the goal ofpositioning the rental giant to serve the smallformat retail and floor-ready display needsof its customers.There is also interest in a low-cost way ofincreasing retail aisle and warehouseproduct facings. A narrower pallettranslates into locations for more items in

stores and warehouses bursting at theseams with too many products.I still see a lot of miscellaneous white-wood,half pallets moving through consumerproducts supply chains. I wonder if there isan opportunity for some kind of voluntarystandards around 20x24-inch and 48x20-inch sizing to increase the potential for reuse.Sustainability Winners & Losers Sustainability can be a solid advantage forwood, providing the entire life cycle isaddressed – as increasingly it is in manysupply chains. There is, of course, competitionon the sustainability front from extremelydurable alternative products. But the catch isthese alternatives only work as long as theydon’t get lost or converted into granules byresin thieves. There are also movements incertain applications to promote nestableplastic pallets that offer reduced load weightand greater empty pallet return ratios.One provider, Polymer Logistics, is offeringincentives for distribution centers to use itsplastic nestable pallets through contributingto steel shelving to support what wouldotherwise be non-rackable pallets. Anothernestable plastic pallet provider, IP Group,says that it saves one of its customers 253truckloads per year through the ability to nestthe empty pallets. Wood pallets can of coursebe nestable, depending upon the bottomdeck configuration. Nesting empty Europallets is an accepted practice in Europe.Increased Automation Requires HigherQuality PalletsPallet companies are hard pressed to findand retain great talent, and it also holdstrue for pallet customers who continue tokick the tires on automation. Automationhas been on the radar when it comes topallet quality requirements for two decades,and with investment in automated storageand retrieval systems pegged to grow at7.2% annually through 2020, this willincreasingly be a topic of interest to palletpeople. When I interviewed Jeff Liebesmanof iGPS at PACK EXPO, one of the things

he was most excited about was how wellhe feels the iGPS pallet is positioned towork well with higher levels of automation.Big Data & AnalyticsIt seems that everywhere in life we arereceiving (and wanting) more and moreactionable data. This ranges from our creditcard spending habits, to per trip gas mileage toobscure statistics about professional athletes.Big data hasn’t really taken hold of the palletmarket, however. We are still waiting for thisto shift more emphatically in the direction ofpallet users needing smart pallets withsensors and tracking devices. While theseare deployed in a few situations, someproviders in the most promising applicationscontinue to wait in a holding pattern.What we are seeing is the importance ofaccurate billing, invoicing and monitoring oftransportation routes to reduce supply chaincosts. And you must have data systems inplace which move to track everything fromdelivered loads to specific customer requests.

Food Safety Drives Sanitation ConcernsFood safety considerations continue to bea focal point at recent trade events such asPACK EXPO, although pallets are typicallynot part of the conversation. For their part,plastic pallet vendors, continue to reportstrong interest from the most sensitiveapplications, such as pharmaceutical andfood production clean room environments.For supply chain applications moregenerally, wood pallet providers willcontinue to do well by ensuring that theyhave a robust quality assurance process.Since most pallets are not intended fordirect food or drug contact, the risk ofcontamination is minimal.The bottom line is that there a number ofongoing material handling trends that caninfluence the pallet market. If one of thosedisruptors gives your customer pause toreconsider pallet requirements, being ontop of the situation will serve you well.

Winter 2015|Timcon News|6 The FEFPEB Congress attracted around 220 delegates from all parts of the timber packaging

industry, and included invited guests from the media, notably from the Timber TradesJournal, whose excellent coverage of the Congress is represented here:

More than 200 delegates gathered in Cork,Ireland in October to hear about important issuesaffecting the international wood pallet industry.The 66lh FEFPEB (European Federation ofWooden Pallet & Packaging Manufacturers)Congress, entitled “Wooden pallets andpackaging: A sustainable business in a fast changing world” was hosted by Timcon andcovered a vast range of material, including the Irishtimber and forestry sector, ISPM15 developments,wood packaging in the food industry and updatesfrom China, Japan and North America.Delegates also had an opportunity to tour thefacilities of Mid-Cork Pallets and GlennonBrothers’ Fermoy Mill.

Forestry and Timber Processing in IrelandFirst up at the Congress was an extended look atthe Irish forestry and wood processing sector andkicking off proceedings was none other than Irishagriculture minister Simon Coveney. He tolddelegates that Ireland was investing €482m in itsforestry sector in 2015-2020, which included44,000ha of new timber plantations and 700km ofnew forest roads to help facilitate forestry thinning ofsmall diameter logs.Mr Coveney said the Irish forestry sector did not seeany cuts during the recession in order to maintainthe consistency of supply for the timber industry.Some 3.1 million m³ of round wood was harvestedin 2014 (2013: 3.036 million m³), with the volume ofsawn wood going into the wood pallet/packagingsector tracking upwards every year.“The importance of wooden pallets to transportother goods, is often overlooked,” said Mr Coveney.The minister also quoted a rising trend in Irish porttrade figures.“We are now seeing record trade levels in terms ofimported and exported volumes, even higher thanthe so-called boom times 10 years ago.”

Fergal Leamy, CEO of Irish state forester Coillte, tolddelegates that Ireland had its highest level of forestryin 350 years, with five times the level of forests thanin the 1950s.At the moment some 80% of the fibre comes FromCoillte forests, but Mr Leamy said that wouldchange in the coming years. He said the output offorest and wood products industries was worth€2.4bn in 2014, with 2.3 million m³ of logs producedfor sawmills and wood panels in 2014.“We are committed to increasing production overthe next few years,” said Mr Leamy. “We as Coilltealso need to enable the mobilisation of privatesector material and ensure it comes to market.”In October, Coillte introduced a new timber salessystem to help plan ahead and reduce volatility inthe market. Looking ahead, Coillte sees itselfproviding 40% of timber in 2028, with private sectorsupplying about 46%, and imports accounting for4% and Northern Ireland 9%.“We need a plan of action to agree a set of initiativesto ensure we take up the opportunities and facechallenges head on.”One of the challenges will be the biomass sector'sincreasing demand for wood fibre. Irish sawmillerGlennon Brothers' joint managing director MikeGlennon told the congress how the company waspushing the boundaries of what was possible withhomegrown timber. The company has investedabout €20m at its Fermoy sawmill site.He charted the meteoric rise of the Irish housingindustry more than a decade ago, with new housingstarts reaching 90,000 in 2006, but reducing to just9,000 in 2011 - a major change which requiredGlennon Brothers and the wider Irish woodprocessing industry to re-position and look todevelop export markets.In 2013, the value of lrish sawn timber exports was€81m, while for wood panels the figure was €199m.Pallet wood makes up about 18% of the total Irishsawmill output, whereas construction takes up41% of output and fencing accounts for 22%. MrGlennon explained how Irish sawmills had investedto expand capacity on the back of Coillte harvestingforecasts some years ago."Unfortunately, the expected increase [from Coillte]never materialised, leaving the sector with excesscapacity of over 500,000m³”Some of those gaps have been flled by imports oflogs from Scotland but this may not be sustainablein the long term. He also cited the challenge of Irishlog prices being 30% higher than the UK. MrGlennon also described Coillte's new timber salessystem as a significant challenge and he said thecoming review of the scheme would be important.

Looking ahead, there is an expected doubling ofIreland's roundwood harvest by 2028 to 6.4 millionm³, but the wood supply/ demand shortfall isexpected to reach 2 million m³ by 2020. Demandfor forest-based biomass for energy is forecast togrow from 1.91 million m³ in 2014 to 3.26 million m³in 2020, an increase of 170%.Pallet MarketsFEFPEB executive board member Fons Ceelaertdescribed the market for wood packaging as“stable”, with a steady supply of pallet andpackaging timber, helped by Chinese wooddemand having reduced. There's been a shift torepaired/second-hand pallets and pallet pools'market share is increasing, while industryconsolidation is also a factor.Mr Ceelaert said wood currently had an 85%market share in the packaging sector. In Europe 401million wood pallets were manufactured in 2013, arise from 371 million in 2010, while the number ofrepaired pallets grew to 128 million in 2013 (2010: 71million). Four-way pallets have 84% of the marketand two-way has 16%. Interestingly, the proportionof heat-treated pallets went down in 2013 (50% ofall new pallets), compared to 60% in 2010.European pallet sector turnover was €1.77bn in2013 (2010: €1.51bn). The timber price index in Q2,2015 showed the UK and Sweden had the highestEuropean prices.FEFPEB has some questions about the recycledpallet numbers and is trying to ascertain accuratedetails. “When we have collected all the informationit could be helpful for lobbying,” said Mr Ceelaert.Initial findings show Spain and Belgium are topwood pallet recyclers with nearly 80% rates. But thefact that some countries include pallet recovery usefor energy incineration could be skewing the figures.“Different scope, definitions and methodology leadto different recycling rates,” admitted Mr Ceelaert.Mr Ceelaert also gave an update on ISPM1 5developments, highlighting several issues, includingcases of mark falsification and differences inregulation implementation and inspection schemesin different countries.FEFPEB has appealed to the UN's Food andAgricultural Organisation regarding the need for aglobal harmonisation on ISPM15. But Mr Ceelaertsaid the threat of ISPM15 being extended to includeintra-EU movement of wood packaging hadreceded. “The situation has become more at ease,with the key reason being there are no serious newinfestations so I believe the priority of ISPM15 is notas high as it was in the EU,” he said.Dielectric heating as a method of packagingtreatment is expected to come more to the fore inthe next years, as it has been revised in the current

“Cork was the setting for FEFPEB's superbly organised 66th Congress attended by pallet sector representatives from acrossEurope, Asia and North America. Delegates were told that timber had a healthy 85% share in the pallet and packaging sectorwith European timber pallet markets currently “stable”.FEFPEB is busy promoting the environmental and performance benefits of timber packaging through its “Packaging fromNature” campaign and defending the timber pall et sector against attacks from the plastics industry. New research intomigration of microbacteria from timber packaging to food showed wood in a very good light and will now be communicatedby EMABois to authorities and enforcement bodies and hopefully used by the industry as a useful technical reference.FEFPEB is also lobbying the UN Food and Agricultural Organisation about global harmonisation on the ISPM75 standard,which governs the treatment of wood packaging to counter the threat of forest pests’ spreading. The event, hosted byTIMCON this year also provided a detailed look at the Irish forestry and timber processing market, with the Irish agricultureminister telling delegates how the government is investing €482m in the Irish forestry sector with log production set to rise.But there was also concern expressed about the impact that growing demand from the biomass energy sector will haveon the timber processing industry”

Stephen Powney, Group EditorTTJ Online

The international timber pallet and packaging industry converged on Cork, Ireland,for the 66th FEFPEBCongress on October 28-30. Stephen Powney was there to bring this report industry messages through mediaSummary:• Ireland is investing €482m in its forestry

sector in the next five years• An /SPM15 extension to lntra- EU

movement of wood pallets looking less likely• New scientific research on wood

packaging for the food industry shows wood in a favourable light.

• FEFPEB's Packaging from Naturecampaign is in an acceleration phase

• The UK and Sweden have the highest European prices for pallet timber

FEFPEB Congress 2015 helpsTIMCON to communicateindustry messages through media

Winter 2015| Timcon News|7

ISPM15 draft which is currently out to memberconsultation. Sulphuryl fluoride fumigation is alsoback on the agenda as a treatment method and isincluded in the ISPM15 draft. Meanwhile, FEFPEBhas been busy responding to false accusationsfrom competitor packaging materials andhighlighting the sustainability message of wood.The latter forms part of FEFPEB’s “Packaging fromNature” campaign – which communicates theenvironmental and performance credentials ofwood packaging. The campaign is in anacceleration phase. So far 310 articles have beenwritten in the press about the campaign and over100,000 unique users have been recorded on thecampaign website.FEFPEB is also growing, with Poland and Lithuaniabeing new members, while contacts have beenmade with Latvia and the Czech Republic. MrCeelaert said other important issues for the sectorincluded the rise of biomass, the future availability oftimber for wooden pallets and regulation to crackdown on illegal timber (Lacey Act & EUTR).Wood Packaging and Food Olivier de Lagausie,general manager of SElL/GROW, shared theresults of research into food in contact with woodpackaging. He said wood/food contact wassometimes seen as problematic but there was alack of harmonised European regulation regardingthis, apart from ECR no 1935/2004.

So the French scientific consortium EMAboisdeveloped a research programme to identify andquantify the effects of wood packaging with food. Firsttesting involved analytical chemistry and was done intwo parts, testing peeled poplar and sawn pine(sapwood and heartwood) in contact at moisturecontents varying from 13%-36%, with three types offood. More than 4,800 tests were carried out in thefirst part and 2,800 tests in the second, involvingbaskets of oysters, apples and salad.

The first part of testing monitored migration ofmolecules and the results showed moleculesidentified were harmless to consumer health. Thesecond testing method identified 146 volatilemolecules from poplar and pine, which were“harmless”. Maximum specific migration of themolecules was 0.07mg/kg of food - basicallynegligible migration.

Another test using microbiology involved 11,600 tests.After 24 hours a drastic reduction was seen inmicrobacteria on wood, with the material showing ananti- microbial effect. Also, testing showed 99% ofmicro organisms on the wood do not migrate to the food.

“At this stage there is no argument for the non-useof wood in direct contact with food,” said MrLagausie. He said EMABois was ready to talk tonational and European authorities and communicatethe "very robust data we did not have before".

Mr Lagausie said the wood packaging industry nowhad a technical reference for contact with food.Asia and North America: Meanwhile, a strongAsian contingent at the congress includedProfessor Qingyi Wu, chairman of the Asia PalletSystem Federation (APSF). He said about 970million pallets were in use in China and the annualgrowth of new pallet production has been 20% overthe last 10 years. ln 2014 pallet production wasabout 140 million pallets - the growth rate droppedbelow 10% due to the Chinese commercialslowdown. Investment has been high in thecountry, with about a dozen automatic wood palletproduction lines introduced there in recent years.Toshifumi Okabe, sales director at Japan PalletRental Corporation, shared how plastic pallets hadrisen dramatically in recent years in Japan. InJapanese pallet pools last year there were 12.1million plastic pallets, compared to 6.5 million woodpallets. RFID technology is enabling the sector toscan 30 plastic pallets at a time at the warehousegates, allowing tracking of individual pallets andgiving better control for operators.An update from North America showed that inCanada timber is in good availability because lesswood is going to China and prices are the lowest for20 years. ln the US softwood ow accounts for 60%of pallets, taking over from hardwood largely for costreasons. Some 450-500 million wood pallets aremade annually in the US.

For more photos of the Congress and visits please go to: http://www.fefpebcongress.com/Photos/Default.asp

Winter 2015 | Timcon News | 8 The fund was confirmed in a letter from

Chancellor George Osborne to ConforChief Executive Stuart Goodall lastmonth - and publicly announced byForestry Minister Rory Stewart atConfor's Westminster conference threeweeks ago. It was launched officially yesterday(Wednesday December 2) as theWoodland Creation Planning Grant(WCPG) and is described as "a new grantto support the preparation of plans todesign multi-purpose woodlands inEngland with a significant productivecomponent". The Forestry Commission Englandwebsite says: "It will contribute towardsthe costs of gathering and analysing theinformation land managers need toconsider to ensure their proposals takeaccount of any impacts on: forestry andthe natural environment; landscape; water;and the historic environment."There will also be provision to supportengagement with stakeholders."Stuart Goodall said: "I am very pleased tosee that this fund is open for business so

soon after Confor received confirmationfrom the Chancellor and Rory Stewart thatthe money would be made available to theindustry. It is vital that there is an increasein new productive planting to support thefuture success of the forestry and timbersector, and this fund should play a key rolein making that planting happen."The FCE website says any proposals "willneed to meet some basic criteria, being atleast 30 hectares in area and showingpotential to benefit the forestry sector inthe long-term through the provision oftimber or other wood products". Details of the fund and how to apply canbe found here.The first phase of the fund will be availablefor applications until March 31st 2016.Phase 2 will follow from April 1st 2016, withfurther details to be announced.Ian Gambles, Forestry CommissionDirector England, said: "Forestry is a longterm business that needs considerablecommitment up front and it may bedecades before significant returns can berealised. I am delighted we have nowopened the new Woodland Creation

Planning Grant that supports the sector'sambition for more woodland in England,making it easier to create woodland andsecure funding from investors."Conforlobbied hard to ensure that the fund - firstannounced by the previous coalitiongovernment in March - would be madeavailable to stimulate new planting,supported by Chris Davies MP, Chairman ofthe All-Party Parliamentary Group on forestry.Mr Goodall added: "Confor worked hardbehind the scenes to ensure this fundingcan help stimulate forestry across ruralEngland - and I am delighted that we cannow move ahead and work withGovernment to deploy it where it will bemost successful in stimulating ruraleconomic growth."Oliver Combe, who headed up the Rootsto Prosperity (R2P) scheme in the North ofEngland, said: "R2P has been a greatsuccess and it's excellent news for thesector that this fund is open. The real valueof this public money is its ability to leveragefurther funding from private and publicsources at local level, which means that £1million can go a very long way."

Confor has welcomed the launch of a £1 million fund by the UK Government to support forestry planting in England.£1m forestry fund opens for business

Andrew Heald: Forest growth can help in many waysIf we can expand our woodland cover, environmental and economic benefits can go hand in hand. When forestry is mentioned ininternational environmental meetings, thefocus tends to be on intact landscapes,particularly rainforest.

UK forestry hasn’t had a significant role indiscussions on climate change or carbonstorage. However, the UK is the third largestnet global importer of timber (after China andJapan) and has woodland cover of only 12per cent (one-third the EU average), so thereis huge potential to do more.So it was welcome that Nicola Sturgeonchose her speech at the recent World Forumon Natural Capital in Edinburgh, whichattracted 500 delegates from almost 50countries, to reaffirm the ScottishGovernment’s commitment to plant 100,000hectares of woodland by 2022 – achallenging but very achievable target.The objective of the World Forum was tobetter manage our natural resources and tohelp tackle some of our biggest globalchallenges, including climate change,resource scarcity and biodiversity loss. Thisweek, far more delegates from many morecountries gathered for COP21 in Paris to seeka legally binding, universal agreement onclimate change, with the aim of keepingglobal warming below 2C.Modern forests can deliver enormousbenefits for our environment - not only byreducing carbon emissions. but also bysupporting biodiversity and helping lessenflood risks. While growing interest in CarbonCapture and Storage has centred on hugelyexpensive and uncertain proposals tocapture CO2 and store it under the NorthSea, forestry offers a simpler, safer and muchcheaper alternative – grow trees, use wood,replant trees.Renowned architect Craig White highlightedat a recent conference that the forestry sector

was “already in the carbon capture business”as trees soak up (capture) carbon - and thatcarbon can be stored in wood products,specifically by using much more wood in thebuilt environment. There is a tremendous opportunity availableas the UK needs 200,000 more houses everyyear than it is building now. The aspiration toconstruct 100,000 custom-built housesannually is especially exciting, representing a£20 billion economic opportunity. “This is thebiggest economic opportunity since theindustrial revolution,” said Mr White. “Wood isthe capture, wood is the storage.” The opportunity to realise the benefitsoutlined by Craig White is even greater afterGeorge Osborne announced that the UKGovernment was cancelling the £1 billioncompetition to develop carbon capture andstorage systems on power plants.And if we can expand our woodland cover,environmental and economic benefits can gohand in hand.Just this week, the economic potential ofenhanced tree-planting was highlighted viathe amazing statistic that direct employmentin forestry and wood processing in Scotlandrose by 50 per cent in the five-year periodfrom 2008 to almost 20,000 direct jobs –during an economic downturn when othersectors were losing jobs.And unlike other sectors, additionaleconomic activity delivers enhancedenvironmental benefits - through the carboncapture and storage process highlighted byCraig White.The majority of the output of Scottish forestshelps to store carbon by going into the UKconstruction market, for everything from rooftrusses and joists to the chipboard and mdfused to make our kitchen units. Thedevelopment of innovative technologies such

as CLT (cross laminated timber) means evenmore can be done. The opportunity of expanding our woodlandcover is enormous – for our economy and ourenvironment. The idea of such a win-winscenario formed the basis of a discussion thisyear with Sepa and the ScottishGovernment’s Greener Scotland initiative,asking: ‘How can we include woodlandexpansion into the Scottish Governmentsaspiration’s on climate change -mitigation?’Confor and the University of Stirling are nowcollaborating in further research into theopportunities and challenges for woodlandexpansion in Scotland to create wide-rangingbenefits, including contributions to climatechange targets. Last month, Confor hosted aworkshop for a wide range of public andprivate bodies on this issue; to gather opinionand fully understand the interest andconcerns of relevant interest groups.If we can make the obvious connectionsbetween climate change mitigation, an urgentneed for more homes and a growing demandfor sustainable timber, the potential for UKforestry is huge. The challenge for the sectoris to ensure that we provide strong leadershipand communicate the value of woodlands -not just timber, but also the widerenvironmental benefits. And these messages must becommunicated not only to foresters, butalso to farmers, local communities andpoliticians.

Winter 2015 |Timcon News |9

“We believe the charcoal company was afront for a industrial-sized lab where cocainewas extracted from pallets and charcoal,processed and repackaged for onwarddistribution across Europe." Greg McKenna, National Crime AgencyRegional Head of Investigations Acting on intelligence from the NationalCrime Agency (NCA), officers from theSpanish National Police searched theshipping container which arrived in thePort of Valencia, Spain's second-busiestport, on 30 November. The international operation has led to 11arrests, the seizure of 1.5 tonnes of cocaineand the shut down of an industrial-sized drugproduction lab. The container appeared to be loaded withsacks of charcoal on wooden pallets butforensic examination found that the palletswere made of compressed cocaine powdermade to look like wood, and some of the sackscontained cocaine disguised as charcoal.

The authoritiessuspect the groupused a charcoalcompany in Spain asa front to import thecocaine and hide alab where the drugwas extracted frompallets and charcoal,processed andrepackaged for

distribution across Europe. It was then shippedto Valencia by boat, where the traffickersplanned to distribute the drug around Europe.The false pallets arrived along with 24 tonnes ofcharcoal, which the traffickers used in a bid toput sniffer dogs off the scent. Forensic scientist Richard Hooker, of AllenMorgan Associates which provide expertevidence on drug cases, said the smugglesused glue and moulds to make the cocainelook like wooden pallets. "To make the cocaine look like woodenpallets they have dissolved the white cocaine

powder with a solvent or glue," he said. "It has then been placed into moulds shapedlike pallets to set. "When the resin dries out it then solidifies. Ifyou mix it with a dye it then gives the woodeffect and gives the appearance of darkwood. "Once the dealers get it they can then re-dissolve it and reverse the process to extractthe cocaine. "The same process can also be used to makeit look like pieces of charcoal by usingcharcoal powder." Coordinated strikes on December 1 led tosix men from Liverpool being arrested inthe UK and Dubai. NCA officers arrested a 44-year-old atLiverpool Airport, along with a 54-year-oldand a 50-year-old in the rooftop car park ofthe Belle Vale Shopping Centre. MerseysidePolice detained a 46-year-old at an addressin Knowsley Village. The Dubai Police Anti-Narcotic Unit arresteda 39-year-old and a 38-year-old at a luxuryapartment. Another five men – two Colombians, twoPeruvians and a Spaniard – were detained onDecember 3 by the SNP at a company in anindustrial unit in Chiva following the deliveryof a dummy consignment of charcoal. The police said the arrests included twoColombian experts in using chemicals toprocess cocaine into different formats. The cocaine was processed in Colombia,where it was subsequently mixed with otherchemicals to make it malleable enough to bemoulded and dark enough to look like wood.

“Two of the Colombiansarrested in Spain are expert‘cooks’, deployed to ourcountry in order to reverse theconcealment process and thusaccess the cocaine,” theSpanish police reported. Thosemen allegedly operated a secretlaboratory located in anindustrial estate in Chiva, nearValencia, where the Spainarrests took place. “The ‘narcos’ used a front companydedicated to chemical products and whichsupposedly imported sacks of charcoal,which was packed between pallets, whichwere in fact the drug,” the police added.Greg McKenna, NCA Regional Head ofInvestigations, said: “We believe the charcoalcompany was a front for a industrial-sized labwhere cocaine was extracted from palletsand charcoal, processed and repackaged foronward distribution across Europe. “This seizure of cocaine, the shutting downof the lab and the eleven arrests will havedisrupted criminal activity across the wholeof Europe.” The four men arrested in Liverpool are on bailpending further enquiries, while the two menin Dubai are still remanded in custody. Thefive men in Spain are also in custody. Spanish police seize cocaine insidehollowed-out pineapples Police in October seized 300 kilos of cocainefrom a container loaded with puréed bananasthat arrived from Costa Rica at the port ofValencia. Spain's close ties with its formercolonies in Latin America have made it themain entry point used by drug smugglers tobring cocaine into Europe. Smugglers have used increasingly ingeniousmethods to get the drug past Spanishcustoms. In recent years police have foundcocaine inside breast implants, a wig, aplaster cast encasing a man's broken leg aswell as inside a 42-piece crockery set.

Spanish police seized 40 pallets made out of 1.5 tonnes of compressed cocaine that was made to looklike wood that arrived on a shipping container from Colombia.

Six Britons arrested after 1.5 tonnes of cocaine worth£240m disguised as wooden pallets at Spanish port

Mr Hopkins is currently Director at Woodfor Good, the timber industrycommunications campaign. He will nowtake a position on the Board of Wood forGood as he moves into his new role at TTF.

Keith Fryer, President of the TTF said: “I amdelighted that David has accepted theposition of Director. It was a tough recruitmentbattle with a number of top-class candidates.We need somebody with the vision, skills andknowledge to take the Federation forwardthrough a period of great change, and Davidis that man. His time at Wood for Good hasgiven him great insight into the challengesand opportunities across the whole supplychain. I am looking forward to workingtogether for what will be a positive, excitingand eventful time ahead.”

During his time at Wood for Good, MrHopkins led the award winning ‘Wood First’ &‘Building with Carbon’ campaigns, helpeddevelop the timber industry lifecycleassessment database, and focused onputting timber’s low carbon properties at thefront of the national agenda. He is a regularspeaker at industry conferences and events,most recently promoting timber’s role in alow-carbon economy to policy makers at theEuropean Parliament.Mr Hopkins replaces outgoing ChiefExecutive David Lennan who steps downfrom the post on December 31st.Mr Fryer added: “I would like to thank DavidLennan for his time, tenacity and inputs overthe course of the past year. He has helpedput the structure in place for a prosperous

future for the TTF. Without his driving instinctand determination we would never havedelivered the CTI for which we all owe a debtof gratitude. On behalf of everyone at the TTFI send him our very best wishes for the future.”

TTF appoints David Hopkins newDirector(Source: Daily Telegraph)

Winter 2015|Timcon News|10

Tony Miles, Managing Director of International Timber, has been appointed as Director of theConfederation of Timber Industries (CTI) The CTI was launched in the summer andhas, for the first time, brought together allaspects of the Timber industry’s supply chain,from sawmilling and timber distribution,through to paper and furniture manufacturingand timber construction. This pan-industryapproach will enable the supply chain to haveone voice when it comes to tackling commonissues that will have an impact on the futureof this important business sector. The CTI held its first Board meeting on 15October. Tony Miles joins Chairman PeterHindle MBE, Senior Vice President for SaintGobain, Stephen King, Commercial Director

SCA, and Alex Goodfellow, Group ManagingDirector Stewart Milne Timber Systems onthe CTI Board. Tony Miles, Managing Director ofInternational Timber said: “I am very pleasedto be joining the Board and looking forward tomaking substantial progress in improvingstandards throughout the supply chain onresponsible sourcing and product quality. .After working in the timber supply chain formore than 35 years I am looking forward tobeing a vocal advocate of the industry. Wehave always been too fragmented. The CTIgives the industry an exciting opportunity to

speak with a single voice, pulling togethereven more to promote timber and take oncompeting materials.” Dirk Vennix, CTI CEO added: “I am reallyexcited that Tony has joined the Board. Hewill add significant expertise to the CTI Boardthrough his vast experience with sectorleading roles in the past. Given his passionfor advocacy roles he will give the CTI a greatboost in its quest to promote the industry andgrow its markets.” If you have any queries please contact DirkVennix on 02072915377 or email dirkv@cti-timber.org

Warwick Crown Court heard Imperial CommercialsLimited failed to provide a safe place for its staff to work,failings which led to the death of one its employees, CraigStewart Dunn, in January 2014.Mr Dunn, 44, a father of three, was hit by a heavy goodsvehicle whose driver could not see what was immediately(up to six metres) in front of him, as the front grill of theHGV he was driving was raised. This was not the first timethis practice had been adopted at this site. The court wastold that occasionally employees of Imperial CommercialsLimited would drive HGV’s around the Wellesbourne sitein this unsafe manner.The driver thought he had just hit a stationary vehicle. Onreversing, he realised he had crushed Mr Dunn, who hadbeen working outside Imperial Commercials Limited’sworkshop in Loxley Road.Imperial Commercials Limited, registered at ImperialHouse, High Street High, Wycombe, was fined £166,000,and ordered to pay £46,500 in costs after pleading guilty

at an earlier hearing to offences under Section 2(1) of theHealth and Safety at Work etc Act 1974.

Speaking after the hearing, Health and Safety Executiveinspector Mark Austin said: “The tragic, needless loss ofMr Dunn’s life could have been prevented had ImperialCommercials Ltd properly considered the risks from themovement of heavy goods vehicles at this site, andprovided effective segregation of pedestrians frommoving vehicles.“Even though the vehicle that crushed him was travellingat less than 5Km/h, the size and weight of the vehicle lefthim no chance of survival.“Companies that work with vehicles of all sizes need toensure that all pedestrians are able to circulate and worksafely at their premises, at all times.”For more information about safe manoeuvring visithttp://www.hse.gov.uk/workplacetransport/vehicles/safemanoeuvring.htm

Tony Miles appointed as Director of the CTI

Worker suffered fatal crush injuries after being hit by lorryA commercial vehicle company was ordered to pay £212,500 in fines and costs after one of itsworkers was killed when a lorry travelling at less than 5km/h crushed him.

Basildon Crown Court heard how on 19 December 2014,Darren Andrews, a 49-year-old employee of a transportservices firm was making a delivery to CWT Commodities(UK) Limited in a lorry. The delivery consisted of a shrink-wrapped pallet of a number of boxes containing castorwheels sitting on top of a wooden case. A forklift driver employed by CWT Commodities (UK)Limited was offloading the delivery from the lorry’s trailer.Having reversed clear of the trailer, the pallet fell to theside of the forklift truck, striking the Mr Andrews as hewas standing to the side of the cab watching theoperation. Mr Andrews suffered significant, life threatening injuriesas a result of the impact and was airlifted to Royal LondonHospital where he stayed for three weeks. He wastransferred again to a Bristol hospital for a further week.The incident has had profound and long-term effects onhim and he will be unable to return to work as a HGVdriver.

Although a risk assessment for the activity had beenundertaken, it did not specifically detail a risk to visitingdrivers, although it did indicate that the driver shouldreturn to his cab, or to stand a ‘safe distance’ away fromthe operation.The Health and Safety Executive (HSE) investigationrevealed it was common for visiting drivers to stand nextto their cabs or in the vicinity of the forklift truck. The riskassessment identified the risk, but it was not beingrobustly or consistently implemented. CWT Commodities (UK) Limited, of Tilbury Docks, Tilbury,Essex was fined a total of £22,000 and ordered to pay£4,639 in costs after pleading guilty to an offence underSection 3(1) of the Health and Safety at Work etc. Act1974. For more information about safety in workplacetransport log onto the website at;http://www.hse.gov.uk/workplacetransport/index.htm

Logistics company fined after driver struck by falling palletA logistics company has been fined for safety failings after a driver was injured when he washit by a pallet that fell from a fork lift truck.

Winter 2015 | Timcon News | 11

New HSE statisticsKey figures for Great Britain (2014/15)• 1.2 million working people suffering from a work-related illness • 2,538 mesothelioma deaths due to past asbestos exposures (2013)• 142 workers killed at work• 76,000 other injuries to employees reported under RIDDOR • 611,000 injuries occurred at work according to the Labour Force Survey• 27.3 million working days lost due to work-related illness and workplace injury • £14.3 billion estimated cost of injuries and ill healthfrom current working conditions (2013/14)

Newly released government figures show the number of days lost to stress, depressionand anxiety increased by 24 percent in theUK between 2009 and 2013, and in thisyear’s CIPD absence management survey,40 percent of participants noticed anincrease in stress-related absence andmental health problems in the past year.Musculoskeletal injuries and acute medicalconditions, and workload was quoted asthe most common cause of stress. In thedigital age people are finding it much moredifficult to be able to switch off, withphones and laptops delivering news fromwork without a break on any day of theweek.The Health and Safety Executive (HSE) estimates that 9.9 million days were lost towork-related stress, depression or anxiety over the last year. Not only than but businesscan find themselves carrying the cost of absenteeism, when businesses findthemselves facing personal injury and constructive unfair dismissal claims.Employers have a legal duty to ensure that employees are provided with a safe workingenvironment. This means taking reasonable care to prevent personal injury, includingmental or physical harm that may in some cases arise due to workplace stress.

The number of employees absent from work due tostress and mental health conditions is on the rise

The number of vacanciesis on the rise

Professional recruitment companies are now offering six percent more vacancies tojob seekers than this time last year, new research from the Association of ProfessionalStaffing Companies (APSCo) has found.This follows a pattern suggested by recent figures released by the Office for NationalStatistics (ONS), which reveal that employment levels increased by 177,000 in the threemonths to September.The numbers compiled by APSCo reveal that growth in the professional recruitmentmarket continues to climb across many of the trade association’s core groups. Forexample, full-time vacancies in finance and accounting, media and marketing are all upyear-on-year.The impressive figures follow recent reports that UK exports and business investmentmade the biggest contribution to the country’s growth during the last half decade.Official figures also show that living standards have returned to pre-recession level.The financial and accounting sector boom is mirrored by research from MorganMcKinley, which found that the number of new vacancies in financial services in Londonrose by seven percent in October 2015, suggesting that London is proving to be theengine room of the economic recovery.

Q House •Troon Way Business Centre •Humberstone Lane •Leicester LE4 9HATel • +44 (0)116 274 7357Fax • +44 (0)116 274 7365

email timcon@associationhq.org.ukwebsite www.timcon.org

To advertise your products to the industry’s major buyers in the new TIMCON newsletter contact Stuart Hex at Timcon 0116 274 7357

TIMCON and FEFPEB would like to thank the followingCongress 2015 Sponsors: