Austria’s sawmill industry and timber trade face weak demand, high costs and growing regulatory requirements in 2026. The weakness in high-rise construction continues, with no clear recovery in sight, while international crises are creating uncertainty, putting pressure on supply chains and increasing costs. The Austrian Association of the Wood Industry said the industry remains robust, but earnings are under pressure.
The timber trade reports positive development in roundwood business, but demand for processed wood for construction remains low. Geopolitical crises are also limiting recovery in international markets.
Exports had developed positively in 2025, particularly in traditional European markets, but the military escalation in the Persian Gulf caused demand to fall and freight costs to rise sharply. The timber trade therefore expects lower sales and margins in 2026.
The sawmill industry is calling for measures to improve conditions for investment and growth and for steps to address the continuing weakness in construction. It also wants less bureaucracy and fewer additional costs and requirements for new construction and renovation.
The European Union Deforestation Regulation was adjusted at the end of 2025, reducing some of the expected administrative burden. Additional evidence and documentation requirements for forest owners and companies in the European wood supply chain remain.
The industry is also calling for active forest management and greater wood use as part of climate policy. Long-lived wood products such as buildings, construction components and furniture store carbon, while forest regeneration creates new tree growth that absorbs CO2. The industry links these measures to Austria’s target of climate neutrality by 2040.