Manufacturing & Supply Chain

Forest Industries Ireland, the voice of the Forestry and Timber industries in Ireland, has welcomed a landmark report from the Timber in Construction Steering Group which outlines a roadmap for the timber sector to become a central pillar in meeting Ireland’s urgent housing needs and ambitious Climate Action Plan targets. The report, ‘Market Opportunities for Timber Construction in Ireland’, projects significant growth in timber usage and details strategic steps necessary to transform the construction industry.

The report describes Ireland’s strong domestic timber product manufacturing base, with timber frame housing systems commonly used across the construction sector. The report finds that there is significant potential for growth through the wider adoption of timber products within the construction sector, in particular through the use of engineered wood products and mass engineered timber. Ireland’s forests are producing significant amount of timber for construction, due to our favourable climate and fertile soils.

The modelling presented suggests that timber used in construction in 2025 represent almost 670,000 cubic metres of products, valued at approximately €180 million. Under a scenario with accelerated timber adoption, policy changes and increased construction activity, this could increase to 1.85 million cubic metres and represent substantial avoided carbon from traditional construction materials.

The report’s findings have informed the development of the recommendations of the Timber in Construction Steering Group– Final Report which is currently being finalised.

Mark McAuley, Director of Forest Industries Ireland, welcomed the report as a signal to farmers of the potential value of planting trees on their land, with such high future demand for timber. He said: “We have a massive opportunity to build more with wood in Ireland. All the planting of commercial forests in the 1980s and 1990s is now bearing fruit in terms of housing and the environment. We have a rapidly growing Irish timber supply which we must use to build greener homes.”

But he warned that growth in the industry must be sustained beyond the next few years, with rapid afforestation needed today to meet timber demands in the 2040s and beyond.

“It is a real concern for the timber industry that we have not been able to follow up on the success of the earlier years of Irish forestry,” Mark McAuley continued. “We have allowed our planting levels to drop way below what’s needed, and everything must be done to increase planting of new, additional commercial forests. For farmers and other landowners, there’s a clear future demand for more timber which make planting today a strong investment. We need the wood, so let’s plant the trees.”

The Timber in Construction Steering Group was established by the Department of Enterprise, Tourism and Employment and the Department of Agriculture, Food and the Marine to explore ways to increase the use of timber in construction and overcome any regulatory barriers for builders and designers. The Steering Group is made up of representatives of key industry bodies, including FII members Coillte as well as senior representatives of relevant government departments and agencies with responsibilities for policy and development of sectors.

Key points from the ‘Market Opportunities for Timber Construction in Ireland’ report

• Massive Market Growth in timber usage projected
  • The report, which includes detailed market modelling, forecasts substantial growth for timber in construction:

• Business-As-Usual (BAU) Growth: Under current conditions, timber usage is projected to grow from 668,000 m³ in 2025 to approximately 1,038,000 m³ in 2030, a 55% increase in five years.
• Best-Case Scenario (Scenario 3): With strategic policy intervention and market alignment, the report identifies a ‘Best-Case’ scenario where timber adoption could see the market volume swell to 1,785,000 m³ of timber, a 170% increase  five years. Timber could constitute 70% of new residential buildings by 2030. This would achieve a market value of €589 million by the end of the decade.

• This accelerated growth is driven by two key opportunities:

1. Timber Frame Systems: Expected to dominate the residential sector, accounting for 48% of both volume and value in 2030.
2. Mass-Engineered Timber (MET): The adoption of higher-value products like Cross-Laminated Timber (CLT) and Glulam is projected to increase substantially, representing 27% of the total market value in the BAU scenario.

• Timber: A Strategic Climate and Housing Solution
  • The report emphasises that timber is not merely an alternative material but a strategic industrial opportunity for Ireland, critical for hitting national climate goals:

• Closing the Climate Gap: The government’s Climate Action Plan aims to decrease embodied carbon in construction materials by at least 30% by 2030. The full adoption outlined in Scenario 3 would unlock a carbon displacement potential of 2.8 million tonnes of CO2e (carbon dioxide equivalent) by 2030, making a crucial contribution to this target.
• Supply Chain Resilience: Accelerated adoption of off-site and engineered timber systems—which offer faster delivery, reduced on-site labour, and improved quality—is vital for increasing housing supply and de-risking the construction sector.

• Recommendations to Accelerate Adoption of timber building
  • To achieve the best-case scenario and capture more value domestically, the report outlines a series of strategic recommendations and next steps:

1. Establish a National KDI Facility: The creation of a Knowledge, Development, and Innovation (KDI) facility is deemed pivotal. This body will coordinate knowledge sharing, technical guidance, training, and advocacy across the sector to maintain alignment and drive implementation.
2. Incentivise Early Adoption: Temporary financial incentives should be introduced to encourage the early use of both Irish-grown timber and off-site timber systems, boosting confidence and demand.
3. Strengthen Domestic Value Chain: Collaboration is urgently needed to enable Irish-grown C16 timber to be processed into higher-value products for engineered systems, reducing reliance on imports and fostering rural economic development.
4. Break Down Perceptions: Targeted awareness campaigns and partnerships with educational institutions are essential to build widespread familiarisation with timber’s high-performance, safety, and versatility among designers, engineers, and developers.
5. Assess Domestic MET Manufacturing: A feasibility study must be undertaken to assess establishing domestic manufacturing facilities for imported products like MET through joint ventures, securing supply chain resilience and creating industrial opportunities.