Finnish wood rises in demand amid Central European forest damage and tightening emission targets

Central European forests are suffering from growing pest problems and the effects of climate change, which has significantly weakened the availability of high-quality sawlogs in the region. This development strengthens the position of Finnish wood raw material in world markets and opens up new opportunities for the domestic forest industry.

At the same time, tightening emission reduction targets for construction are further increasing the demand for wood in the coming years. Wood is a renewable building material that acts as a carbon sink throughout its life cycle — a feature that makes it an increasingly attractive alternative to concrete and steel as the construction industry strives for carbon neutrality.

The Nordic countries differ significantly from each other in the prevalence of wood construction. In Sweden, about one fifth of apartment buildings are built from wood, while in Finland the corresponding figure is only about two percent. The difference is largely explained by different construction methods: in Sweden, wood construction is mainly based on factory-made wood elements, whereas in Finland, apartment building construction is still significantly more site-oriented.

The industrial, element-based approach is not only an environmental act — it is also a productivity issue. The labor productivity of industrial wood construction is estimated to be about ten times higher compared to traditional wood construction. A broader adoption of the Swedish model in Finland could thus significantly improve the efficiency of the entire construction sector.

The greatest growth potential for wood construction may not be found in traditional residential construction but in large special projects. Data centers, schools, hospitals, and other public buildings represent a segment where the use of wood can become more common most rapidly. In these projects, economies of scale are emphasized and the benefits of industrial construction come to the fore best — while developers seek concrete solutions to their tightening climate commitments.