TTF International & UK Suppliers Lunch speech by John White, Chief Executive of TTF – 18th May 2005

Ladies and Gentleman, honoured guests, President, it really is a pleasure to be here at one of the best hotels in London.  I am sure you would all agree we have had an excellent repast courtesy of the Claridges staff.  Thank you to them.

Of course this is the hotel in which Gordon Ramsay’s famous Michelin stared restaurant is located.  I was very lucky to meet the man himself when for my fortieth birthday a good friend of mine bought me dinner here; so I took a chance and phoned up last week to see if the great man himself would be prepared to say a few words to the Timber Trade.  I was pleasantly surprised when he agreed.

Unfortunately he is not around today but he did send me a message he said I could read out.  Well those of you who have seen our Gordon on the telly know that I couldn’t possibly do that in polite company, so I have had to revise his words somewhat.

‘Dear John’, he said, (OK so far)

‘How the FinnForest are you’. 

‘Are you taking the Puhos.  I haven’t got time to Finnforest write some FinnForest words for you Weyerhausers.’

‘Wood might be the best FinnForesting environmental building material but I couldn’t give a Setra.  I’m a chef.’

‘You also know I think wood is the most beautiful FinnForesting building material but last time I said something nice it kept coming back to bite me in the AssiDomain.’

‘So if you don’t mind I’ll just Finnforest off’

‘With best wishes and have a nice lunch, Gordon.’

Gentle words indeed there from Gordon.  I do take some heart from what he said.  At least two key messages are getting through.

Firstly that wood is the most environmentally sound building material money can buy.  I haven’t heard one argument in my short time at the Federation to contradict that.  You all know the facts, figures and arguments but they are worth repeating.

1. Environmental

• Sustainability - using wood support positive management of forests and means more trees get planted.
• Climate Change – sequestration - trees lock in carbon preventing global warming.
• Climate Change - substitution – over its whole life production and use it uses significantly less energy saving carbon emissions and avoiding pollution. [0.8 tonnes of carbon are saved on average for each cubic metre of wood used instead of other materials.  On average every timber frame house saves 4 – 5 tonnes of CO2].
• Recyclability – wood can be recycled to make other products and can be used as a fuel for energy,  substituting for polluting and finite resources fuels like coal and oil.

2. Construction

• Thermal qualities – the equivalent thickness of wood is fifteen times as effective as concrete, 400 times that of steel and 1770 times better than aluminium – which saves money and helps the environment.
• Strength qualities
• Resilience – it lasts.
• Flexibility – wood is an ideal material to build with offering both technical and design flexibility  - just look at the growth of I-beams.
• Speed – using wood offers shorter build times with modern, off-site construction.
• Cost – using wood offers lower whole life costs.

The second message Gordon articulated so beautifully was the aesthetic qualities of wood.

• It’s beautiful - not just in the home, on the floor and wall or as furniture but in the garden as decking and garden furniture, and also in construction and design [see wood awards for good examples].
• Versatility – it’s used in so many different ways from construction to caravans and fences to furniture.

And of course

• Forests are a leisure resource
• Jobs – the industry in the UK employs over 190,000 people.
• Total value of products produced by the sector is over £6.35 billion

So why isn’t the UK awash with timber houses and wooden floors.  Why does steel and concrete construction dominate engineering and architect course in our universities?  Why does my family and friends think that using wood contributes to global deforestation?

Well I have only been in the industry for three months and these are very profound questions, but I would like to make three observations.

Reputation. The industry really has suffered as a result of the constant focus on deforestation in the tropics. The public doesn’t distinguish between hard and softwoods – it’s all wood to them. So when they hear and see the pictures of denuded forest areas they think we are all to blame.
Fragmentation. The industry in the UK has lots of small companies and many representative organisations and therefore lacks cohesiveness.

Money.  The concrete and steel industries are very well funded.  We are not.

So what can the TTF do to address some of these issues.

Firstly we needed to get ourselves into shape internally following a difficult period. You will know that has resulted sadly in the departure of two of our colleagues and I would like to publicly thank both Mark and Caroline for their contribution to the Federation during their time with us but our finances are sound and we made a surplus last year. The budget is tighter for 2005 but I firmly believe that we are in shape to develop. This will also include bringing on new services for members which will help to reduce our reliance on subscription income.

We are also developing a series of core values that will inspire us to deliver for our members. I won’t divulge what they are at this stage as they are still being honed but in summary the staff at the TTF want the TTF to be one of the best trade associations in the country.

That in part helps to address the industry’s lack of money for promotion. Success breeds success and confidence and makes contributions to the collective good easier to solicit. If we can demonstrate value for money then I believe when we ask for money to expand our generic promotion we will get it. And I would certainly like to play a part in building on the excellent work of wood for good in getting across the messages I mentioned earlier, to a wide audience.

The TTF can also be the catalyst for bringing the industry together. The need to do this is a widely held view and steps are already being taken to bring industry interests together. I would like to think that as we begin to take positions on all the issues of the day we will drive a lot of important work.

This is not to say a lot has not already been done. On the final question of reputation I have to say how hugely impressed I have been with the Federation’s highly impressive environmental work

I have spent a long time working for diverse trade associations and talking with others. Forests Forever is one of the most apposite industry initiatives I have come across. It closely aligns industry interests with the Government’s public policy objectives as well as inviting the ENGOs to support the industry’s objectives to get consumers, in all their guises, to buy more wood. One thing is for sure, the environment and sustainability will rightly remain on the political agenda for many, many years to come.

So actually this is not a threat but a tremendous opportunity for our business. Our USPs over our competitors in the steel, concrete, brick and plastic industries are our environmental credentials.  We should, and I intend to, leverage this mercilessly as the TTF develops its political campaigning.

But we do need to keep our eye on the ball. I am fully aware of the debates around the Responsible Purchasing Policy. I know it will be difficult, more for some than others, to utilise this tool to continuously monitor and improve those suppliers that need help. But I have to say that my political instincts tell me we simply must deliver – if we are to rely on our environmental credentials to grow our market, then we must be able to prove them!

Mr Chairman, I suspect some of you are thinking about my speech what Gordon Ramsay would say so I am going to end there.

But before I do I would like you to raise your glasses to the Timber Trade Federation.

Thank you.