December 2nd, 2008 - Cost-conscious buyers switch to SterlingOSB
In a bid to minimize the effects of the economic crisis, more materials buyers are switching from imported plywood to domestically-produced OSB, according to Dave McElroy, Deputy Managing Director Commercial of UK engineered wood-based panel manufacturer, Norbord.

Pictured is Dave McElroy, Deputy Managing Director Commercial of UK engineered wood-based panel manufacturer, Norbord.
 

In a bid to minimize the effects of the economic crisis, more materials buyers are switching from imported plywood to domestically-produced OSB, according to Dave McElroy, Deputy Managing Director Commercial of UK engineered wood-based panel manufacturer, Norbord.

According to Mr McElroy, the credit squeeze and rapid currency fluctuations have combined to make imported products much less competitive when compared to Norbord’s Sterling OSB which is made in Scotland from native timber.

“Oriented Strand Board (OSB) is a direct rival to softwood plywood in many applications and has comparable, if not superior, strength and durability. And, of course, Sterling OSB has a much better environmental profile than plywood, is locally produced and is always available - unlike imported plywoods which are subject to the vagaries of ocean transport, currency fluctuations and many other factors.”

Yet some buyers and users of structural panels have not yet switched to OSB from softwood plywood. Why? “Primarily for reasons of history, tradition and simple lack of understanding of all the advantages of OSB,” he explained.

“The weakened pound has completely altered the price structure of all imported materials. Put in context with the reduction of construction activity and the compelling need for every business to reduce costs, we believe many buyers are realising that they can no longer afford the luxury of stocking and using structural softwood plywood for sentimental or historic reasons when a more reliable and cost-effective alternative is right at hand.

“Eight months ago, there were two dollars to the pound” commented Mr McElroy. “Now it’s hovering around $1.50. The same has happened with the Euro, which has appreciated from about €1.40 to the pound to about €1.20. When you factor in shipping and road transport costs, even imported OSB is no longer competitive with our Sterling board. These currency issues are proving to be the final piece of the jigsaw puzzle in encouraging a switch to domestically-produced OSB.”

Made at Norbord’s Inverness factory from thinnings harvested during the sustainable management of local forests, Sterling OSB has a very attractive environmental profile. This is well recognised, as evidenced on the Greenpeace website.

“It is CE-marked, FSC-certified and carries BBA-certification,” he said. “We can deliver in two or three days and our transport costs are very low compared with imported product. Although total demand for board products is down, buyers are now very cost-conscious and there’s never been a better time to switch to Sterling OSB”.