Wooden construction: a 2.3 billion sector ready for the challenge of sustainability

Wooden construction a 23 billion sector ready for the challenge

(Finance) – The Wood Supply Chain Federation published the first “Wooden Building Observatory 2024“, revealing a healthy and evolving industry. With a production value of 2.3 billion euros in 2023 (+3.2% on 2022)wooden construction confirms itself as a pillar of sustainability and innovation. The Trentino-Alto Adige leads the production, followed by Lombardy and Veneto, while significant growth is also recorded in Central and Southern Italy.

“The wooden construction sector represents a fundamental pillar for the economy and sustainability of our country,” he says Angelo Luigi Marchetti, President of the Wood Supply Chain Federation. “In 2023 we maintained business volumes in line with the previous year, but the effects of the reduction in tax bonuses and the difficulties associated with transfer and invoice discount tools are starting to be felt.” The boost from PNRR funds, particularly for public projects such as school construction, was essential to balance the situation. However, Marchetti underlines: “Looking to the future, a legislative commitment to promote urban regeneration and energy efficiency will be crucial. Our supply chain is transforming: from simple carpentry works we are becoming complete manufacturers, ready to take on the challenges of a market increasingly oriented towards sustainability and ESG policies”.

In 2023, the wooden construction sector in Italy shows a generalized growth: +2.1% in residential, +5.7% in non-residential and +1.9% in traditional construction works. Looking at the breakdown of the value of production, specialized companies represent the majority, with a contribution of 1,564 billion euros, equivalent to 67% of the total. This is followed by builders, with 490.316 million euros, equal to 21% of the total production, and warehouses and traders, who add another 280.180 million euros (12% of the total value).

Driving production is the Northern Italywith Trentino-Alto Adige (21%), Lombardy (18%), Veneto (10%) and Piedmont (8%). However, a progressive expansion is observed in Central and Southern Italy: 19% of the value of production is concentrated in Upper Tuscany, Umbria, Marche and Upper Lazio, while in Sicily the market operators represent 6%. The greatest number of creations in the wooden construction sector is concentrated in Lombardy, contributing to making Northern Italy the main reference market in 2023, with 54% of the overall turnover generated at a national level. Central Italy occupies 38% for the sector, while the South and Islands have a weight in terms of market representation of 8%.

In the wooden building sector, the construction technologies adopted by Italian companies vary significantly, reflecting different approaches to the design and construction of buildings. The 49% of companies use the platform frame techniquewith a degree of specialization aimed at greater prefabrication of opaque structures. 45% are oriented towards the use of CLT (Cross Laminated Timber) technology, with a greater propensity to create opaque structures in situ. Finally, 6% of companies choose to use blockhaus technology or other alternative techniques, often for projects that require a traditional aesthetic appearance or specific insulating properties.

Wooden construction in 2024 is going through a period of significant challenges: the year was characterized by the sector’s stability despite a contraction of the residential market, where there was a decrease in orders acquired ranging between -8% and -16%. However, companies have demonstrated great resilience, adopting strategies such as the construction of extra-regional construction sites, internationalization, innovation and construction automation, and the offering of “turnkey” solutions.

In the public works sector there has been a partial compensation of the decrease in the residential sector, but there are recorded delays in the implementation of PNRR projects. The public works put out to tender between 2019 and 2023 amount to 267 billion euros, of which 74 billion from the PNRR, however only a part has actually been awarded and completed.

A positive element comes from the school construction sector: to date, there have been 195 schools created through the “The school for the Italy of tomorrow” programme, with around 40% of tenders involving the use of wood for elevated structures. The data underlines the importance of targeted public policies and a multi-year strategic plan to support the ecological transition and urban regeneration of the national building stock through green construction projects and support for the roadmap for decarbonisation.

In 2024, the residential market risks losing relevance compared to public tenders, making it necessary for legislative intervention to favor urban regeneration processes and the integration of ESG policies to attract sustainable investments.

“In view of the European Directive EPBD (Energy Performance of Buildings Directive), it is therefore fundamental for Italy define a structured plan for the renovation and energy efficiency of the existing assets. In the meantime, the sector continues to evolve, also within the action framework of the Green New Deal. The wooden construction sector is ready to do its part to build a more sustainable and competitive Italy”, concludes Marchetti. “Now we need one collective effort to overcome critical issues and seize the great opportunities offered by this transition. Only in this way can we guarantee stability, growth and a concrete contribution to the future of the country.”

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