Friday Offcuts – 31 July 2026
Click to Subscribe - It's FREE! Welcome to this week's issue of Friday Offcuts.Next week we'll be welcoming more than 230 delegates to Carbon Forestry 2026 in Rotorua, New Zealand. It's another strong industry turnout, and we look forward to catching up with many of you over the two-day event. In the news this week, Red Stag launches the Southern Hemisphere’s first off-site production line to use CLT and Victoria announces a new A$12 million Timber and Fibre Innovation Fund to support industry growth. In addition, US tariffs on New Zealand timber remain unchanged at 10%, and Sustainable Timber Tasmania is responding to debate over management of the state's public production forests. Closer to home, Greater Wellington has marked the planting of its one-millionth native tree, while New Zealand's wood export revenues have remained resilient despite mixed market conditions. Innovation also features strongly, from a Gisborne start-up developing a tree-derived alternative to bitumen for road construction to Sydney's Atlassian Central topping out as the world's tallest hybrid timber tower. We also examine improving export markets in China and India, Australia's housing and timber outlook, and the latest research, workplace guidance and industry initiatives shaping the future of the forestry sector. Read these stories and more in this week's Friday Offcuts.
Our Partners & SponsorsFriday Offcuts is made possible through the generous support of the following companies. 
This week we have for you:
Red Stag's first-of-a-kind CLT modular production line [NZ]
Today Prime Minister Christopher Luxon opens the Southern
Hemisphere’s first off-site production line to use Cross Laminated
Timber, CLT, as the structure.The initiative is a collaboration between local industry leader Red Stag, German architecture firm NKBAK and Austria constructor Kaufmann Bausysteme. The initial launch stage is supported financially by MPI’s Primary Sector Growth Fund. The project name, VoMo stands for ‘volumetric modular’, meaning whole room modules are completed on the production line. “These factories are proving highly effective in Austria and Germany”, explains Red Stag group CEO Marty Verry. “They facilitate efficient installation of fit-out within the modules, using an Austrian technology backbone. The efficiency savings help cover the cost of running the factory and transporting the modules to building sites.” “Poor labour productivity on construction sites has become a big impediment to building fast and efficiently in New Zealand, he adds. “Developers are looking for ways to compress construction times in half. CLT is an enabler to this; the strong, durable, yet lightweight engineered wood panels provide a rigid shell that can easily be transported to sites. “Initial foundation work on site runs in parallel with work on the modules in the factory, rather than sequentially. Typically, this takes one-third to one-half out of the overall construction programme. “The controlled factory environment also allows for less variations and contingencies, which is a big factor in developer’s feasibility models. Contingencies can reduce from 10 percent to 5 percent because what happens in the factory is totally locked down. “The strength of CLT also means the modules can be stacked into very high building designs. Ten to twenty storeys are not out of the question, and we have worked with top local engineers to finalise module-to-module connections that also reduce any acoustic flanking.” The facility is set to benefit sectors such as school classroom blocks, apartments, townhouses, cabins, hotels, student accommodation, offices and retirement care facilities. “A lot of these sectors are very sensitive to construction noise, truck movements and disruption, making off-site volumetric modules an attractive option”, says Verry. VoMo has projects secured for 150 modules over the next two years. The line will ultimately be able to produce up to 800 modules annually. In Europe, the partnering company supplies 4-5,000 modules annually from four factories. “This is a great result for NZ-Inc too, adds Verry. “With CLT, we are substituting a sustainable locally produced material for what would otherwise be high-emission imported steel and cement. “This is something we want politicians and bureaucrats to realise and adopt strategic procurement policy around. A dollar spent on heavy gauge steel does not come from Glenbrook or its electric arc furnace, it comes imported with high emissions. Likewise with concrete; only 60 percent coming from Golden Bay Cement and the rest imported. Any substitution with CLT therefore comes off imported cement volumes. “On the other hand, a dollar spent on local CLT supports New Zealand businesses and jobs, reaching deep into rural New Zealand, often to iwi owned forests. It allows us to invest in greater capacity and efficiency, which in turn brings down construction costs and ensures domestic supply resilience. “This extra scale allows New Zealand processors like us to have a better cost base to be able to compete in export markets.” The industry is pushing three policies to achieve this:
Victoria’s new $12M timber fund - open now [AU]
The Victorian Forest Products Association (VFPA) has warmly
welcomed the Victorian Government’s announcement of a new $12
million Timber and Fibre Innovation Fund, describing it as a
strong commitment to the future of Victoria’s forestry, plantation
and wood fibre industries.The new fund will support innovation, advanced manufacturing and future investment across the sector. VFPA Chief Executive Officer Andrew White said the new fund represented an important step towards growing and strengthening Victoria’s wood fibre industries, but further investment was also needed to make the significant transformational changes needed over the next decade. “This is a positive investment in Victoria’s wood fibre manufacturing sector and a strong signal that our industry has a critical role in delivering housing and wood fibre products that Victorians need,” Mr White said. “The Timber and Fibre Innovation Fund recognises the critical role Victoria’s plantation forestry and wood fibre manufacturing industries play in regional economic development, housing, advanced manufacturing and the transition to a lower-carbon economy.” “Importantly, this fund moves beyond supporting industry transition and focuses on supporting transformation, innovation and growth within the sector, through equipment upgrades, process improvements and new innovations.” The TFIF expands on previous government funded programs by opening eligibility to businesses and organisations involved with both softwood and hardwood manufacturing across Victoria. The fund will provide grants during the second half of 2026, ranging up to $1 million per grant, and support projects that improve productivity, develop new products, commercialise innovative ideas and strengthen domestic manufacturing capability. “Victoria is home to Australia’s largest plantation estate and a diverse range of timber processors, but we need to bring down costs and support these businesses to be successful given the current tough market conditions facing the industry,” Mr White said. “Investment in innovation helps ensure more of that value is created here in Victoria, supporting regional jobs, sovereign manufacturing capability and stronger domestic timber supply chains.” “Creating new markets and new manufacturing opportunities for innovative product types, at the same time as supporting our existing manufacturing base is critical,” he said. While welcoming the announcement, VFPA said the fund should form part of a broader long-term vision for Victoria’s wood fibre sector. “The Timber and Fibre Innovation Fund is an important first investment that aligns strongly with our call for a new Victorian Government-led 10-Year Wood Fibre ‘Action Plan’ and Strategy,” Mr White said. “Victoria has the resource base, the manufacturing capability and the expertise to become a national leader in sustainable wood fibre production and advanced timber manufacturing.” “With the right long-term policy settings, there is a huge opportunity to grow regional jobs and increase plantation investment to ensure we can meet Victoria’s future housing, packaging and construction needs.” Full fund details Source: The Victorian Forest Products Association (VFPA) US Tariff on NZ timber and lumber remains at 10% [NZ]
While most New Zealand exports to the United States will now be subject
to the newly announced 12.5% Section 301 tariff, this tariff
will not be stacked in addition to existing Section 232 tariffs.
Timber and lumber products are already covered by Section 232 measures and currently face a 10% tariff. These products will continue to be subject to the Section 232 tariff regime and will not incur the new Section 301 tariff. Source: WPMA --- Further details: New Zealand Subject to 12.5% Additional Duty On 24 July, USTR announced its final action following its Section 301 investigation into 60 economies that it considers have failed to prohibit and effectively enforce the importation of goods produced (in whole or in part) using forced labour. The final action replaces the 10% Section 122 tariffs, which expired on 24 July, and applied additional tariffs on all investigated economies, accounting for 99% of US goods imports. Under the final determination, New Zealand is among 41 economies subject to an additional 12.5% tariff. For 38 economies this will be applied on top of the United States' normal Most Favoured Nation (MFN) tariff rates For Japan, South Korea, and Switzerland it is a ‘net’ rate of 12.5%. More >> Source: New Zealand Foreign Affairs & Trade --- Australian View: Trump administration confirms new 12.5 per cent tariff for Australia The Trump administration has placed a 12.5 per cent tariff on Australian exports to the US. The new levy has replaced a temporary 10 per cent tariff that expired at the same time the new tariff took effect. Dozens of other countries have also been hit with new tariffs, which were first proposed last month after a US trade investigation into forced labour in international supply chains. More >> Source: ABC  Tasmania’s native forestry: The full picture [AU]
John Lawrence raises an important question about how Tasmania
measures the full value of its public production forests. That
discussion should consider not only accounting treatments and
hypothetical land costs, but also the broader economic, environmental
and community benefits delivered through the responsible management of
our forests.The claim that Sustainable Timber Tasmania’s published financial profit is merely a “paper profit” overlooks the figures designed to show how the underlying business is actually performing. In 2024-2025, STT recorded a $7.5m increase in the value of its biological assets. It also separately reported an underlying net profit of $0.8m, defined as operating revenue less operating expenditure and positive operating cash flow of $1.8m. It paid an ordinary dividend to the state and has now recorded eight consecutive profitable results. Since 2017, STT has paid $30m to the state in dividends and made contributions to on-island processing funds to help the local sawmilling sector modernise its equipment. Importantly, STT’s accounts are prepared under Australian Accounting Standards, including the standard applying to biological assets. The forest valuation is undertaken by an independent specialist and examined by Audit Tasmania, which concluded that the 2024–2025 accounts presented a true and fair view of STT’s financial performance, position and cash flows. STT is happy to acknowledge that such accounting standards do not capture every social and environmental value provided by Tasmania’s forests and it is reasonable to debate the limitations of the accounting process. However, STT is not using a valuation method of its own invention. We are applying the accounting rules required for biological assets, which measure the value of the standing timber, which are not designed to measure every economic, environmental and community benefit. That distinction is important because valuing the standing timber separately does not mean the broader costs of managing the forest are ignored. STT’s financial statements include contractor and freight costs, property management, local government rates, road depreciation, forest re-establishment, and fire prevention and suppression. For example, whilst reporting a financial profit last financial year, STT also carried out maintenance on 3040km of existing roads, constructed 24km of new roads, conducted works on 5566ha of forest, sowed 100 million locally sourced seeds and achieved a 99.5 per cent regeneration success rate across the areas assessed. STT also planted about half a million seedlings in restocking timber plantations that had been previously harvested. The characterisation of STT as having “rent-free” access is similarly incomplete. STT is not a private company handed free land to exploit. It is a government business enterprise established under legislation to manage Permanent Timber Production Zone land for multiple users, while supporting economic growth and employment and supplying agreed volumes of timber. It manages a forest-road network of more than 10,000km, providing access for communities, tourism, beekeepers, hunters, fishers, emergency services and other land managers. It also manages hundreds of leases, licences and easements, supports apiary sites, undertakes conservation, research programs, biodiversity outcomes, carbon storage and provides a trained statewide firefighting capability with about 16 per cent of PTPZ, around 129,000ha, being managed purely for conservation. The $12m STT receives from government is transparently identified as payment for community service obligations: keeping public production land managed and accessible, undertaking fuel-reduction work, supporting fire prevention and detection, and helping suppress fires on non-production forests and adjoining land. That is not a concealed subsidy to log sales. It is payment for public services the state would still need to allocate should timber harvesting end. The wider economic contribution of STT’s forestry activities also matters. During 2024–2025, STT paid $109m to 544 Tasmanian businesses, with 87 per cent of its purchases made locally. About $45m went to harvesting and haulage contractors. More than 1.2 million tonnes of forest products were harvested and transported for Tasmanian processing, including high-quality eucalypt sawlogs and special-species timbers. Those figures represent regional Tasmanian businesses – including contractors, truck drivers, sawmill workers, engineers, mechanics, furniture makers, builders and small businesses. Most importantly, value creation does not stop when a log leaves the forest, that is only the beginning. Once delivered, the value of the log and the number of people employed continues to grow as it moves through local processing, manufacturing, construction, retail spending, wages and household incomes. None of this means native forestry should be beyond scrutiny. STT must keep improving efficiency, transparency, forest practices and environmental outcomes. It must account for carbon, biodiversity, cultural values, water, recreation and future generations, while meeting supply commitments and maintaining financial discipline. The evidence suggests Tasmania is not carrying a cost burden from public production forestry. Through employment, processing, public land management, fire protection, regional investment, community access and dividend returns to the state, Tasmania is receiving substantial value from its forest industry. Source & image credit: Dean Kearney is the chief executive of Sustainable Timber Tasmania  A million native trees planted in regional parks [NZ]
A million native trees have been planted in Greater Wellington
regional parks, a milestone in efforts to reforest former grazing land
through the council’s Recloaking Papatūānuku planting
programme. Live on TVNZ Breakfast, the millionth tree was planted last week in Queen Elizabeth Park, celebrating the ongoing work of mana whenua, community groups, and volunteers at planting days facilitated by Greater Wellington. Council Chair Daran Ponter says the programme is about working with the community to restore ecosystems that sustain wildlife and forests that protect the climate. “A million native trees is a special milestone for our region, and a powerful reminder of what we can achieve when we come together for te taiao,” says Cr Ponter. “Recloaking Papatūānuku is about much more than planting trees. It’s about restoring the health of our regional parks, improving habitat for native species, enhancing the well-being of our waterways, and giving communities a practical way to care for the whenua that sustains us.” Since 2019, 420 of about 2,000 hectares of former grazing land in regional parks has been replanted. In the coming years, 200,000 native trees are expected to be planted every winter under the planting programme. Greater Wellington Project Lead for Parks Restoration Kellie Benner says the programme’s success is underpinned by strong partnerships with mana whenua, community groups and local businesses. “The plants we use are sourced from a diverse network of nurseries, including Rimutaka Prison’s nursery in Trentham and iwi-run nurseries like Otaraua in Kāpiti,” says Benner. “We work with local contracting crews, Māori-owned businesses, and community volunteer groups who are passionate about environmental restoration; work that has a positive impact not only on the environment, but the community as a whole. “Park visitors can see the transition for themselves. In just a few short years, the land has changed from pasture with very little biodiversity to regenerating native areas that are full of life.” More >> Source & image credit: Greater Wellingtion  SnapSTAT - Wood exports hold their ground [NZ] Tracking the last 12 months performance of our national wood products export revenues shows a mixed bag with growth mainly in sawn timber and sleepers, panels and logs (not shown). So, in a tough year, not a bad result.  Source: Forest Industry Insights from Te Uru Rākau - New Zealand Forest Service; Issue 7, June 2026 Trends in dwelling construction & timber supply [AU]Australia’s latest housing data is sending two seemingly conflicting messages. Dwelling approvals, a leading indicator of future construction activity, have remained volatile from month to month but continue to trend higher, particularly in the multi-unit sector. At the same time, dwelling commencements, which measure construction actually starting on-site, recorded their sharpest quarterly decline in several years.Sitting between these two indicators is structural timber demand. Softwood structural timber sales have continued to strengthen through 2026, suggesting the industry is responding to the underlying recovery signalled by approvals months earlier, rather than the short-term volatility evident in commencement data. The Latest ABS Release: Commencements Fall Sharply The ABS Building Activity, Australia release for the March 2026 quarter showed total dwelling commencements falling 11.2% to 48,012 dwellings in seasonally adjusted terms. The weakness was concentrated in the higher-density segment. Private sector other residential commencements, which include townhouses, units and apartments, fell 20.7% to 19,116 dwellings after rising 26.0% in the December 2025 quarter. Private sector house commencements also declined, although more modestly, falling 3.5% to 27,658 dwellings. 
Source: ABS, FWPA analysis The result represents a sharp reversal from the previous quarter. In the December 2025 quarter, total commencements had increased 8.0% to 53,567 dwellings, driven largely by a 23.4% increase in other residential commencements to 23,849 dwellings. The swing from a strong December 2025 quarter to a weak March 2026 quarter highlights the volatile nature of housing commencements, particularly in the multi-unit sector. Large apartment projects can significantly influence quarterly outcomes, making commencements far more erratic than detached housing activity. Building Approvals: The Leading Indicator of Future Supply While commencements weakened, approvals data tells a somewhat different story. Across the first five months of 2026, multi-unit approvals experienced substantial month-to-month swings. Private sector dwellings excluding houses fell 24.5% in January after declining 30.7% in December, rebounded in February, dropped 26.0% in March, rose 4.0% in April, and then declined a further 10.4% in May. House approvals have been considerably more resilient. Private sector house approvals increased 2.8% in May 2026 to 10,537 dwellings, the highest monthly result since September 2021. Importantly, May marked the fourth consecutive month with approvals above 10,000 dwellings. Although total approvals declined 1.1% for the month, they remained 5.3% above their level a year earlier. The divergence between approvals and commencements is a common feature of housing cycles. Approvals represent projects that have received planning consent, while commencements capture projects that have physically started construction. Between those two stages, developments may face financing constraints, feasibility challenges, labour shortages, or delays in securing construction contracts. As a result, approvals often provide an early indication of future activity, while commencements reflect decisions made several months earlier. The March 2026 quarter illustrates this dynamic clearly: approvals for detached houses remained near five-year highs, yet total commencements fell sharply over the same period. More - FWPA Forecasts and Structural Timber Demand Source & image credit: FWPA  Monthly market report - July 2026 [NZ]
Some much better news this month across both China and India
markets. Both are stable in sales prices with a reduction in
shipping costs and a favourable US$/KIWI$ FOREX seeing prices at wharf
NZ recovering back up to close to where they were in May.Both markets hold a ‘tread with caution’ warning, and it is certainly time to be happy with our lot and not push on price or volume. Weather events and the market generally, has seen a lower harvest rate in NZ and that is certainly needed to give both markets a breather. It is extremely disappointing to see one exporter pushing volume in to India without sales contracts and LC’s in place. Those logs are now sitting in bond in Kandla with more on the way. This may yet have a debilitating impact on log prices in what otherwise remains a fragile market at present. The India Free Trade Agreement is the hot topic at present with NZ Forestry said to be a big winner. I thought readers might be interested to learn more about this increasingly important market for NZ. There is the usual plethora of misinformation about the opportunities in India. I can assure readers realising any opportunities will not be a cake walk. One of the largest challenges lies in developing strategic long-term relationships with India companies. The strategic fundamentals include honesty, integrity and a strong desire to see everyone make a profit. In my view, these need to be the three guiding principles. If I look at the history of the NZ log trade with India to date, I see many examples where the 3 guiding principles on both sides have been sadly lacking. The one thing to know about dealing with the India trade is there are many who want a slice of the action. There are even more who give little or no regard for everyone being sustainably profitable. Thus, any trade with India, must be approached with great caution and a great deal of research and investigation to ensure the people you are dealing with hold tight to, and believe in, the 3 guiding principles. More >> Source & image credit: Laurie Forestry  Why your next road might be made from trees [NZ]
We take it for granted - but if you were to ask a scientist to
build you a new material that was as strong and versatile as wood, but
using only air, water, and sunlight, they’d laugh you out of the
room.But one Kiwi start-up thinks it has cracked the formula to harness the strength and pliability of trees to pave our streets - potentially securing a critical part of our supply chain while slashing emissions. Founded in Gisborne in 2024, start-up Futurity has invented LIMA, a chemical derived from lignin, a natural plant byproduct of the paper-making process. While lignin has many potential applications, the first one out of the gate aims to replace something you probably drove over on your way to work today. More >> Source: Stuff Image credit: Futurity --- Interviews:
World's tallest timber tower tops out in Sydney [AU]
The Atlassian Central skyscraper, designed by SHoP Architects
and BVN Architecture, in Sydney, Australia, has become the world's
tallest hybrid timber tower. Designed as the Sydney
headquarters for technology company Atlassian, the 180-metre-high office
tower topped out earlier this week.With a hybrid structure of timber, steel and concrete it overtakes the 86.6 -metre-high Ascent tower in Milwaukee, USA, by almost 100 metres, to become the world's tallest hybrid timber tower. The 39-storey skyscraper has a unique hybrid structural system, with concrete cores supporting mass timber floors and internal structures, wrapped in a steel exoskeleton. This exoskeleton supports seven "mega floors" that have been placed every four stories to divide the building vertically into what the design team described as "habitats". These, primarily timber, habitats will contain office accommodation along with multi-floor atriums and elevated parks. More >> Source: Dezeen Image credit: Atlassian Rising deer numbers drive decline in native forests [NZ]
Ecologists are calling for a deer management strategy, as a new
report finds the pests threaten native forests' regrowth.
A paper by the University of Canterbury published today
revealed rising deer numbers are driving a slow decline in native
forests.Emeritus professor and the study's lead author David Norton said deer populations have grown back to levels seen in the 1950s and 60s. He told RNZ the decline might not be visible straightaway, "Our mature canopy trees, whether they're podocarps or beech trees, they live for many decades and they're not going to necessarily disappear because of deer today. "But it's the regeneration that's coming away underneath that is a real concern," he said. More >> Source: RNZ Practical guidance on workplace exposure standards [NZ]
WorkSafe New Zealand has released new plain-language resources
to help businesses better understand workplace exposure standards (WES)
and manage risks from harmful airborne substances.WES are guideline values that can help assess the risk of exposure to airborne substances such as dust and fumes. They are not compulsory limits or regulatory targets. The new material includes educational videos, practical case studies, and a guide to working with occupational hygienists. WorkSafe has also updated inspector training and materials to support consistent frontline messaging. See our WES resources The resources respond to feedback from industry stakeholders who said WES can be difficult to understand and apply, particularly where businesses face measurement costs, limited access to occupational hygienists, or uncertainty about what WorkSafe expects. WorkSafe says the starting point for businesses is to eliminate or minimise exposure to harmful substances as far as reasonably practicable. WES can help assess exposure risk, but they are not compulsory limits, are not set in regulation, and are not designed for businesses to apply on their own. “We heard clearly that businesses want practical guidance and confidence about what is expected of them,” says Kelly Hanson-White, DCE Insights and Engagement. “Our focus is on helping businesses to understand their exposure risks and take action to manage them well, not looking at WES values as standalone enforcement thresholds.” WorkSafe has also confirmed WES values for flour dust, softwood dust, hardwood dust, and welding fumes. Confirmed values are no longer interim, providing greater certainty for businesses and occupational hygiene and health specialists. Find a substance in the WES database Source: WorkSafe Project update: Connecting forests, mills and buildings [AU]
ARC Advance Timber Hub Project “An Open-Data
Framework for Forest-to-Building Value Chain Mapping” is
addressing a major challenge for Australia’s forest and wood
products sector: how to better understand, visualise and coordinate data
across the entire value chain – from forest resource through
processing to buildings.Project Leader, Associate Professor Joe Gattas, from The University of Queensland School of Civil Engineering, presented at the FWPA Webinar – Navigating a Changing Landscape: Challenges, Opportunities, and Innovation in the Timber Industry, on the 21st April 2026. Below is a summary of the projects research outlined in the webinar presentation. Why this research matters? Research and data relevant to timber supply, processing and use are currently spread across many institutions, projects and datasets. This makes it difficult for industry, government and researchers to:
What the project has achieved so far? Measuring Timber Consumption Early work has explored different ways to measure timber consumption in buildings.
More >> Source & image credit: Arc Advance Timber Hub  Jobs
Buy and Sell
And one to end the week on... Election date announced for our wildest election yet!
"Every vote puts a bird in the spotlight, and every bird in the spotlight is a bird more people will care about and fight for," says Ms Hatch. "That is the whole point." Voting is free and fair and open to everyone at birdoftheyear.org.nz from 4 to 20 September. Every voter can vote for up to five birds.The winner will be announced on 21 September. “We’re encouraging all New Zealanders to pick their birds and back their parties to give nature a clear majority in 2026.” The wildest election has a serious ground game Bird of the Year has never just lived online, and this year the campaign trail runs right through the country's classrooms, offices and high streets.
 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 2004-2026 © Innovatek Ltd. All rights reserved
|
