Stormy market

August 27, 2021. – According to reinsurance company Swiss Re, the global insured losses totalled 36 billion euros during the first half of 2021. Swiss Re estimates that a major part of the losses (34 billion euros) were because of extreme weather. In total, the losses were 65 billion euros, but all damages were not insured or the insurance was insufficient.

Damages on buildings and infrastructure need to be fixed. Some repairs are urgent to restore the living conditions. Some repairs can wait some time, but still they should be done on due course. Quick reparation work requires quick arrangements in finance, labour, and building material.

As we have witnessed during this year, sometimes the building material shelves are empty. Are bigger stock levels needed to solve and buffer the unexpected demand peaks? Has the “stock-on-wheels”-era seen its glory days? The global supply chains are effective, yet vulnerable. 

From a plywood producer point of view, the world market is turbulent enough even without unexpected storms and hurricanes. Extreme weather is not the main demand factor, however another reason to stay alert and be agile with production output.