Friday Offcuts 3 October 2025
Click to Subscribe - It's FREE! Welcome to this week’s edition of Friday Offcuts.A new 10% US tariff on timber and lumber is set to impact NZ's wood processing industry. Fortunately, the recent announcement of NZ$1.1 billion in new government construction spending, will help boost the sector. Meanwhile, Australia’s latest Timber Market Survey shows some softwood prices dipping while hardwood trends upwards. The industry is also focused on the future with significant moves in innovation. A new NZ$63 million biofactory in Rotorua is set to transform biowaste into high-value products, potentially adding NZ$50 billion to the economy. Australia is also advancing its National Bioenergy Feedstock Strategy to help meet net-zero goals. In the resources sector, Fortescue Metals is going green with the purchase of 400 giant electric haul trucks. To help you stay ahead of these developments, Innovatek and FIEA are hosting five key industry events over the next two months. Through our partnership with WIDE Trust, we can offer complimentary registrations to young professionals under 35. These places are limited and offered on a first- come, first-served basis. Available spaces include: 2 for Residues2Revenues 2025, 3 for Bioeconomy Innovations 2025, 5 for WoodWorks National Conference and 5 for ForestTECH 2025 - NZ. To qualify and apply, please contact Gordon Thomson at gordon.thomson@innovatek.co.nz or (+64) 27 275 8022. Read these stories and more in another packed edition of Friday Offcuts.
Our Partners & SponsorsFriday Offcuts is made possible through the generous support of the following companies. This week we have for you:
Trump’s 10% tariff on NZ timber and lumber will impact industry![]() The 10 percent tariff was announced by President Trump yesterday following the Section 232 investigation aimed at determining the effects imports of timber, lumber and their derivative products have on the United Sates supply chain. The tariff will be placed on all imported softwood products into the U.S. from the 14 October, with the President saying that the tariff will shore up America’s local industries and support national security. “We currently export around $370 million of radiata pine products from New Zealand to the United States, making the U.S. our third largest export market for value-added forest products behind China and Australia”, said Chief Executive of the Wood Processors and Manufacturers Association (WPMA) Mark Ross, “The 10 percent tariff, which is a relief after a 50 percent tariff was touted, will mean additional costs being added to our exporters bottom line that can either be taken on board, shared or paid for by their U.S. based customers”. On top of the effects on the New Zealand industry, the American consumer will also be directly impacted through domestic supply chain disruptions and price increases on home building materials such as clear appearance grade mouldings, solid wood sidings and primed product. As one customer in the United States commented “a lot of what we buy from New Zealand we can’t get elsewhere easily, so expect we may have to pay extra, resulting in higher prices for the consumer”. “As we absorb this tariff information and move forward WPMA will continue to work closely with our members, the wider forestry supply chain, and government as to developing options for navigating the impact on our wood industry, and developing ways that we can retain and grow our high-value New Zealand Radiata Pine timber export market within the United States,” said Ross. We thank all our members, the wider forestry industry, Minister Todd McClay, our trade officials and kindred U.S. based Associations for supporting our advocacy drive over the last six months to push a case for a low tariff or exemption on our timber and lumber products. Working as a team, we have achieved a lot in gaining a feasible tariff outcome, plus bringing affected parties together. Without this effort the outcome could have been a lot worse based on other section 232 investigations, such as steel, aluminium and copper, where a 50 percent tariff or higher has now been placed on these products. More >> Source: WPMA ![]() Australian Govt’s National Bioenergy Feedstock Strategy![]() The discussion paper covers the opportunities for bioenergy to contribute to Australia’s net-zero goals, the production of potential feedstocks, required infrastructure and supply chain readiness and maturity, addressing social licence and sustainability, as well as biosecurity and traceability issues. Diana Hallam said, “We welcome progress on the National Bioenergy Feedstock Strategy announced last week, through the release of this discussion paper. AFPA will engage closely with the Government about the sustainable feedstock opportunities that forest industries can provide. “Through the sustainable harvesting and processing practices our sector is known for, a considerable amount of timber and wood-fibre residues are produced. Ensuring these residues go to the most productive and sustainable use is a key aspiration of AFPA members and a number of businesses already utilise them to create heat for timber drying or even to produce their own power to supplement operational requirements. “While many in the forest products industry are aware of the bioenergy opportunities for the sector, having a national strategy will seriously maximise the potential for forest industries to enhance their contribution, grow public awareness of the importance of wood fibre in this area and help Australia achieve net zero. “While the opportunities are considerable, there are also many considerations that need to be addressed – strategic locations, volumes, feedstock scale and existing industry requirements. These all need consideration in the development of the strategy and its eventual implementation. “We are committed to making sure the forest products industry is at the forefront of the Government’s planning with this new National Bioenergy Feedstock Strategy,” Diana Hallam concluded. The discussion paper can be found here. Source: Australian Forest Products Association (AFPA) New approved CoP: Safe practice for forestry & harvesting![]() This guidance outlines the responsibilities and legal expectations under the Health and Safety at Work Act 2015 (HSWA) for forestry operators, and helps workers know what good looks like. It has been developed in partnership with industry representatives. You can find links to the new ACoP and GPG and related resources on Safetree, or access the WorkSafe site. What’s changed? WorkSafe summarises the key technical changes of the ACOP as below:
The purpose of the ACOP remains the same – it sets out how forestry operations should be carried out in a way that keeps people healthy and safe on the job. While it isn’t health and safety law, it gives business and workers a strong direction for improving health and safety. WorkSafe says forestry businesses still need to have their own systems and processes in place. The ACOP and GPG should continue to be used alongside other guidance from industry leaders that covers more detailed operational requirements of forestry work – for example, FISC's Best Practice Guidance. To make it seamless, this industry guidance is referenced in the ACOP. WorkSafe has offered its thanks to the forestry sector for its input to the new guidance. More >> Source: TreeSafe ![]() Skills Insight Australia launches Workforce Plan 2025-2026![]() The Workforce Plan was formally launched by the Hon Andrew Giles MP, Minister for Skills and Training, at Skills Insight’s Stakeholder Forum on 17 September, attended by key industry and peak body representatives. “Skills Insight is playing a pivotal part in bringing employers, unions and governments together to find solutions to skills and workforce challenges that Australia’s agribusiness and related industries face,” Minister Giles said. Minister Giles recognised the significance of the industries that the Workforce Plan supports and their vital contribution to Australia’s economy, food security, environment and regional, rural and remote communities. The Workforce Plan aligns with commitments in the National Skills Agreement and the Government’s vision for sustained and inclusive employment, as outlined in Working Future. It also draws on statistical data, industry insights and Skills Insight’s own research. The Plan explores critical workforce challenges and opportunities in attraction and retention, and in enabling education and training. These insights point to the importance of a ‘virtuous circle’, where skilling, productivity, professionalisation, and workforce attraction and retention reinforce one another. Jessica Hocking, Acting CEO of Skills Insight, highlighted that the Workforce Plan sets out four priorities shaped through industry collaboration. “Workforce planning is an ongoing JSC process that develops a shared vision and identifies where action is most needed. The priorities in this year’s Workforce Plan of leadership, skills needs, accessibility, and data and evidence will guide Skills Insight’s activities over the coming year,” said Jessica. “This year’s Workforce Plan will be complemented by an online interactive data dashboard. In the coming months, 13 industry-specific webpages will be launched, along with additional data and insights on this year’s themes, to inform and support stakeholders across the skills ecosystem.” Skills Insight is one of 10 Jobs and Skills Councils (JSCs), a national network of industry owned and led not-for-profit organisations. JSCs collaborate on practical workforce solutions to align training with real-world needs across broad industry groupings, supporting Australians to have the right skills and training for the jobs of today and tomorrow. More >> Source & image credit: Skills Insight Australian Timber Market Survey - June quarter 2025 released![]() The TMS collects price data through quarterly surveys of a representative sample of timber market participants in eastern Australia. All quarterly TMS reports contain price movement information for softwood timber, panels and engineered wood products. The June and December quarter editions also include price movement information for hardwood timber products surveyed over a six-month period. Price movement data are presented in nominal terms unless otherwise stated Softwood timber products – Quarterly price movements
Further information and the latest Timber Market Survey report is available here: Download the June quarter 2025 TMS report Source: Indufor ![]() Vantec introduces biomass & wood processing solutions to AustralasiaVantec, a long-established manufacturer of industrial machinery in South America, is bringing its expertise and equipment to the Australasian market with a complete line-up of industrial shredders designed for high performance and continuous operation.Among these, the Brutus series offers track-mounted, highway trailer, and forest trailer configurations to suit operations of different scales. Built with a rugged structure and high chipping capacity, the Brutus is engineered for efficiency, reduced fuel use, and ease of maintenance while maintaining high safety standards. The Bronco wood chipper has been developed specifically for demanding forest environments. Available in wheeled or track-based models, it combines mobility and fuel efficiency, making it a reliable option for teams working in challenging conditions and on harder timbers such as eucalyptus. Beyond mobile chippers, Vantec also supplies a complete wood shavings production line. These turnkey systems — incorporating debarkers, shaving machines, dryers, and baling equipment — are designed to streamline production and packaging, producing consistent output that is ready for handling, storage, or sale. With more than 60 years in the sector, Vantec supports industries including sawmilling, veneer, biomass, feed and recycling. Its manufacturing base in Santa Catarina, Brazil, employs over 300 staff and maintains strong links with suppliers, enabling reliable access to both standard and custom components. A dedicated in-house fabrication and milling operation also allows for urgent spare parts to be supplied quickly, minimising downtime for customers. By combining machinery design with automation expertise and technical support, Vantec offers practical, long-term solutions that match the realities of industrial forestry operations. The company continues to build on its track record of reliability in some of the world’s most demanding forestry regions. Vantec will be at the Residues2Revenues 2025 conference in Rotorua this month (October), showcasing its biomass and energy solutions to the Australasian forestry sector. More >> Source & image credit: Vantec ![]() Why the trades can't find workers, even with rising unemployment![]() Our recruitment team has continued to receive high levels of enquiry right through the post-covid recession, but we still need to look overseas for talent we simply can’t find in NZ. So why is it still so hard to find the people you need?
At Greenstone Recruitment, we help Manufacturing, Trades and Engineering employers find skilled staff, locally and internationally. Our strong international networks and expert immigration team mean you get skilled workers faster, with less hassle, and no guesswork. Call Phil Hughes on (+64) 27 911 1343 or visit www.greenstone- recruitment.co.nz. Source: Greenstone Recruitment Gisborne's plan to transform erosion-prone land![]() The Sustainable Land Use Transition Business Case is the culmination of work by Council, MPI and the Transition Advisory Group (TAG) and outlines a comprehensive pathway to support landowners and communities to transition erosion-prone land at scale. Building on the Tairāwhiti Transition Guidelines completed in June and calls to action from the Citizen’s Assembly in May, Mayor Rehette Stoltz says this work continues to demonstrate the power of collaboration for a regionally-led solution to our land use challenges. “Our communities, mana whenua and industries are investing their time, knowledge, and energy into this kaupapa – but we cannot achieve meaningful change alone.” “We can no longer afford to delay action,” she says. “We’re at a turning point. We can’t keep spending $80 million cleaning up rivers and beaches after every major storm. Investing in the land now will save millions in clean-ups later and protect our communities for the long term.” “The storms of the last two years showed us the cost of in-action, this plan means more stable hillsides, cleaner rivers and new skilled jobs to support future land use – a win for our environment and our local economy.” The Business Case will seek partnership with government, landowner and philanthropic contributions to invest $16 million in the first year scaling up to $48 m over the first decade. The programme proposes:
Council Chief Executive Nedine Thatcher Swann says the Business Case sets out a clear way to turn lessons from recent storms into long-term solutions. “This plan is about moving from costly clean-ups to lasting solutions – transitioning up to 100,000 hectares of vulnerable hill country so we can protect our rivers, reduce future damage and safeguard our communities.” Ms Thatcher Swann says achieving the scale of change needed will only be possible through partnerships. “We can’t do this alone. We need the Government to stand with us so we can move at a scale and pace the situation demands.” More >> Source: Gisborne District Council ![]() How climate change is fueling wildfires in Spain, Portugal![]() It states that climate change — driven primarily by the burning of oil, gas and coal — has made the weather conditions that fueled the wildfires 40 times more frequent and 30% more intense. The analysis came from the World Weather Attribution, a group of international scientists who study global warming's role in extreme weather. The sheer size of the fires has "been astonishing", said Clair Barnes, one of the report's authors and researcher at the Centre for Environmental Policy at Imperial College London. "Hotter, drier and more flammable conditions are becoming more severe with climate change and are giving rise to fires of unprecedented intensity." More >> Source: DW NZ Log Market Review - September 2025![]() After a six-month spending freeze, the New Zealand Government has committed more than NZD 1.1 billion to public-sector construction projects. This is a welcome boost that could provide a lifeline for the country’s struggling timber processing industry. At Wharf Gate (AWG) prices for export pine sawlogs were steady in September. Prices for sawlog pine remained the same as August prices, while pruned pine logs and Douglas fir lifted on the back of reduced inventories in China. Log stocks and prices in China have remained stable, with daily demand increasing as construction activity gains momentum in cooler conditions. Increased ocean freight costs will be partially offset by a weaker NZD against the USD. The PF Olsen Log Price Index rose to $121, sitting $2 above the two-year average and in line with the five-year average. Domestic Log Market The New Zealand Government has emphasised infrastructure investment as a central feature of its 2025 Growth Budget, with planned spending across construction, transport, health, and regional development. This includes NZD 600m for defence housing, 413m for fast-tracked school infrastructure and 100m to modernise hospitals. In parallel, the Fast-Track Approvals Act 2024 is designed to accelerate consenting for large-scale infrastructure, housing, and development projects, potentially reducing delays and lifting project throughput. A draft 30-year national infrastructure plan has also been released, forecasting capital investment to rise from approximately NZD 20 billion currently to more than NZD 30 billion by the 2050s, targeting critical needs in hospitals, electricity, resilience, and transport. These policy measures signal stronger demand prospects for structural framing timber, formwork, and infrastructure-related wood products in the medium term. However, the timing of any material uplift remains uncertain, with many projects still in planning or consenting phases. Government procurement standards and sustainability policies could swing more demand toward sawn-timber and engineered wood products if “low-carbon building” becomes a stronger priority. Export Log Markets - China CFR prices for A-grade logs remain in the range around USD 115 per JASm³ for October vessel arrivals. Prices for pruned logs increased about USD 10 per JASm3 due to the low inventory of pruned logs. The larger P40 pruned logs now sell around the USD 160 per JASm3 range. Log demand in China has increased slightly over the last month to just over 60,000 m³ per day. As expected, log demand has increased due to increased construction activity as temperatures drop in China. Domestic prices in China are also stable. Softwood log inventories have decreased slightly and now sit at approximately 2.45 million m³, of which radiata is approximately 2.18m m3. There is currently less Douglas fir stock in China as a significant proportion of this supply was from the Nelson region. The harvest in this area is now concentrated on salvaging the windthrown pine, with a small amount of Douglas fir harvested to sustain local mills. The Caixin China General Manufacturing PMI slipped into contraction in July, falling to 49.5 from 50.4 in June - a reversal that undermined expectations of sustained momentum. More >> Source: PF Olsen ![]() Forestry firefighters gear up for bushfire season![]() A fire training camp was also recently held at Mount Seaview near Wauchope, with further camps planned for Bombala in November and Coffs Harbour in December. Forestry Corporation’s Fire Training and Operations Coordinator Nathan Fischer: “Fire camps are part of our obligation as a firefighting authority to ensure our firefighters are adequately trained to contain fires and develop strategies to minimise the spread of wildfires,” Mr Fischer said. “There are two million hectares of State Forests in NSW, so it’s important our trained firefighters are ready at any moment to respond to fire in the landscape. “Fire camps help to develop a skilled and capable workforce for the fire season ahead with the training combining classroom learning and practical field exercises, including a live hazard reduction burn in Lidsdale State Forest,” he said. “During the exercise, firefighters gained hands-on experience in fire behaviour, tactics, leadership, communications and fire tanker and equipment operation and our firefighters are also trained to support other emergency services such as the NSW Rural Fire Service in operations both here and abroad.” Forestry Corporation currently has around 500 staff members who serve as forest firefighters. Forestry Corporation also maintains a statewide fleet of fire tankers, light vehicles fitted with firefighting equipment, contracted aircraft and more than 100 drones operated by trained pilots. Heavy plant machinery such as bulldozers, used in forest operations, is also made available by the broader forest and timber industry to support firefighting efforts across NSW. To learn more about Forestry Corporation, visit www.forestrycorporation.com.au Source: Forestry Corporation Rotorua biofactory opens a potential NZ$50 billion economic gain![]() New Zealand produces large amounts of low value biomass from its agri-sector, and large companies are keen to develop new uses for those materials to replace fossil-fuel based products that are no longer in demand. It is estimated that developing new products this way could add NZ$50 billion to the country’s current NZ$100b worth of exports, the factory’s backers say. The global bioeconomy is expected to grow from US$4 trillion (NZ$6.8t) today, to US$50t by 2050. The factory is to be built on the Scion Campus in Rotorua. Scion, a Crown Research Institute, is charged with two main research aims - identifying opportunities in the wood fibre, pulp, biopolymer, packaging and biochemical industries and from their biomass side stream, and increasing New Zealand’s energy security through the use of forest and waste biomass for bioenergy. More >> Source & image credit: The Post ![]() Fortescue Metals has brought 400 giant electric haul trucksAndrew Forrest’s Fortescue Metals has brought in a new supplier to help deliver the up to 400 giant electric vault trucks that his company will need to meet its ambitious target of reaching “real zero” emissions at its Pilbara iron ore mines by the end of the decade.Forrest announced on Friday that the China-based XCMG, which already supplies electric mining equipment to Fortescue, will supply up to half of Fortescue’s future fleet of 240-tonne electric haul trucks. The company said it will need between 300 and 400 of these giant machines, and says the deal will “strengthen and diversify” its supply chain for battery electric trucks. It says its agreement with Liebherr has been “amended” and it will now provide “at a minimum” the other half of the haul truck fleet and the electric excavators agreed in a partnership announced in September 2024. More >> Source: The Driven Jobs
Buy and SellAnd one to end the week on... Giant mice
And on that note, enjoy your weekend. Cheers. ![]() Brand PartnersOur Partners & Sponsors Friday Offcuts is made possible through the generous support of the following companies.
Copyright 2004-2025 © Innovatek Ltd. All rights reserved
|