WRA: Wood recyclers set to face unprecedented rise in costs
The Wood Recyclers’ Association (WRA) warns that the industry will be facing an unprecedented rise in costs. This follows 18 months of rising expenses, which have placed ‘a huge burden’ on the organisation’s members. The WRA says that operators will have no choice but to pass these costs on/
Speaking to Resource, the WRA said: "The costs are being passed through the supply chain now as both end-users and recyclers of waste wood have been bearing increased costs for months and have absorbed what they can, but now this is filtering down to the waste producer."
While inflation is affecting all sectors of the UK economy, the wood recycling industry’s reliance on heavy machinery and dependence on haulage means it has been particularly impacted. The WRA says that mechanisms to protect the industry are limited and do not cover the full scale of the increases.
Red diesel, the low-tax fuel option afforded to those in the waste management sector, has previously helped to keep costs down. The Government ended the subsidy in April 2022, which has contributed to the rise of costs.
This change is accompanied by driver shortages and longer lead times for new trucks and equipment. Gate fees for recycling waste wood are also typically higher in the summer and the WRA is warning that these spiralling costs will apply further upwards pressure.
The WRA is seeking to alert wood suppliers so that they may prepare for the inevitable rise. Julia Turner, Executive Director of the WRA, said: “We want to raise awareness that it’s tough out there at the moment for our members. They are all being squeezed and many will have no choice but to pass those costs on.
“While this may not be welcome news, the sooner our suppliers understand the pressures, the sooner they can prepare for the inevitable changes and make the market more resilient going forward”.