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SPRING 2022
T H E N E W S L E T T E R F O R C U S TO M E R S O F T H E S C O T T G R O U P
SERVING LOCAL INDUSTRY NATIONWIDE
Spring 22 Market Update It’s challenging times as we witness the grave crisis enveloping Ukraine. Like many, we have sought to offer practical support, and have done so through the Disasters Emergency Committee - Ukraine Humanitarian Appeal. While risks around labour, HGV drivers and material constraints had not gone away, we briefly saw signs of stability emerging after a difficult post-Covid recovery. The Ukraine conflict now further adds to widespread market uncertainty and global supply issues, and with the highest inflation rate for more than 30 years, the conflict has exaggerated the impact in both the business and domestic community of ‘the cost-of-living crisis’. Sanctions imposed upon Russia do not directly impact our timber procurement. We have negligible exposure in that geography, but the global dynamics of the timber industry do mean that the indirect effect is both significant and immediate. Russian, Belarussian and Ukrainian sourced timber is a key component of European softwood timber supply, providing approximately 10.3 million m³*. This displaced demand will now compete with other existing supply streams, and this is inevitably feeding through into price pressure. Our supply chain remains robust, but our purchasing team is dealing with levels of volatility and complexity way beyond normal market behaviours to ensure continuity of supply. The breadth of our supply chain and our successful partnerships with the largest mills in both the UK and the Baltics have enabled us to maintain continuity of service for our customers.
We’re pleased to be able to bring you our regular, unbiased commentary on the industry through our quarterly market updates. Our UK and Baltic-based procurement teams are really well-positioned to understand industry dynamics and provide their insights on market trends – keeping you informed on the issues that might impact you. You can read all our market updates on the website and sign-up to receive direct to your inbox here: www.scottgroupltd.com/sign-up-for-our-newsletter *Source: FEFPEB
SECURING SUPPLY CHAIN SUCCESS During the past two years, the timber market has experienced unprecedented turmoil and volatility, so, it’s more important than ever to ensure the robustness of our supply chain. As it is a finite resource, our timber demand requires really careful planning and we are continually improving and developing our capacity and timber supply chain processes. We always look at the bigger picture and only seek to source the right volume of timber for our needs.
As the UK is a net importer of timber – using more than it grows – our relationships with timber sources outside our own country are critical. We currently procure almost 500,000m³ of timber per year, sourcing around 50% from homegrown suppliers and the other 50% from the Baltics and the rest of Europe – so we always need to be ahead of the game. We recently embarked on a series of internal workshops within our manufacturing business - bringing together our planners and buyers to
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embark on the next phase of continuous improvement. We always aim to maximise the sustainability and resilience of our processes to ensure we continue to maintain continuity of supply, no matter what the market throws at us next. Together, we deliver more.
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SCOTT PALLETS SECURES EPAL LICENSE FOR BARRY SITE We have successfully secured an EPAL license to manufacture new EPAL Euro pallets at our Barry site. Manufactured on our new state-of-the-art Cape Tandem pallet line, we now have the capacity to produce 4,000 Euro pallets per shift at Barry alone. Added to this, there are currently two kilns on site with the combined capacity for 1800 pallets per day, ensuring we keep up with growing customer demand for ISPM15 and kiln dried pallets. Scott Pallets is the UK’s largest supplier of EPAL Euro pallets and now holds an EPAL licence for manufacturing new Euro pallets at three strategic sites across the UK: Barry, Peterborough and Burtisland, as well as an EPAL repairer licence at Bathgate, Bristol, Derby and Rotherham. Despite Covid-19 and the resulting economic slump, EPAL pallet production has continued to increase with a total of 123.5 million EPAL load carriers produced and repaired globally during 2020*. Notwithstanding the continued hike in timber prices, production of EPAL pallets grew by 1.14% to 97.3 million pallets in 2020*. EPAL Euro pallets meet the most stringent requirements for safety and reliability, and the production of these pallets was considered “essential” by many European countries throughout
lockdowns as they are critical for the transportation and continued supply of vital goods such as food, medicine and other consumer goods. Scott Pallets was proud to play its part in maintaining these essential supply chains. To find out more, talk to john.dye@scott-pallets.com in our technical team. *Latest available figures from EPAL.
Recover, repair, reuse: circular economy in practice February saw the start of a new collaboration between our Barry site and the recovery service. Following a comprehensive in-house training programme from our experienced pallet recovery specialists, the team at Barry has begun hand sorting and repairing for reuse, pallets that have been collected from building sites. We’re forecasting handling more than 125,000 pallets a year here, and expect to be able to return 70% of these ‘single use’ pallets to the original user. As part of our strategic plan to expand our recovery depot network nationally to meet the growing demand for our recovery and reuse service, our Ellesmere Port site has now also come on board with the collaboration. Find out more about pallet recovery here: www.scottgroupltd.com/pallets/pallet-recovery/
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SERVING LOCAL INDUSTRY NATIONWIDE
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Don’t waste your pallets Every year, we purchase around 15.5m used pallets to re-sell. Over and above this, demand for second-hand pallets still outstrips availability. Throughout the last 35 years, we have developed an unrivalled national network of trusted trade relationships including major retail outlets, DCs and independent businesses which are supported by our UK-wide site map of 13 locations spread across the country – substantially reducing mileage and carbon footprint for us and our customers. We’re continually looking for new ways to source used pallets and already work closely with a number of waste management businesses to provide a professional solution for used pallets whilst also helping them meet legislative requirements.
in driving reuse ahead of recycling. Our local teams
Our exemplary service level, delivered through robust procedures, consistent grading methodology and transparent paperwork ensures we are in the best position to support the waste industry to promote reuse before recycling, with the added benefit of creating a new revenue stream for them and their customers.
that are beyond repair are recycled for another purpose.
Chris Colegate, Sales & Procurement Manager – Reconditioned at Scott Pallets, said: “We’re working in partnership with waste management providers to deliver a sustainable solution for skipped timber pallets
are collecting pallets from our waste partners’ sites, inspecting, safely repairing if required, and then selling on to new customers for reuse - ensuring only pallets It’s a brilliant source of hassle-free income for waste businesses, and we’d encourage any business with surplus used pallets to explore this option.” If you operate in the waste management sector or would like to find a solution for your used pallets, please contact Lucia Caruso, our Reconditioned Business Development Manager by emailing Lucia.Caruso@scott-pallets.com or visit www.scottgroupltd.com/pallets/reconditioned-pallets/ to find out more.
given the likely, imminent change in legislation to assist
Get online with Scott Direct Have you got an online account yet? Our key business account delivers a bespoke service with a unique set of features and benefits for large limited companies, plc’s, public and private sector organisations with requirements for detailed management information to support strategic procurement strategies. Let us help you take control of your MRO, PPE and workwear range and spend with a Scott Direct online trade account. We’ll create access to a bespoke area on our website with login specific permissions, a dedicated account manager and access to our NEBOSH qualified, experienced support team as well as priority promotions and managed inventory control. To see the full range of benefits and apply online, visit www.scottdirect.com/key-trade-accounts We’re adding new products to www.scottdirect.com every day with the Snickers and Regatta Professional spring ranges online now.
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SERVING LOCAL INDUSTRY NATIONWIDE
Council chooses Seahawk to supply winter warmer packs
To locate your nearest Scott Group supplier please visit:
scottgroupltd.com As part of Fife Council’s commitment to investing in Fife and working with local companies, Seahawk Apparel, our Glenrothes-based clothing manufacturer, was selected to put together 1,000 ‘winter warmer’ packs for local residents at risk of fuel poverty. Steven Mitchell, Business Development Manager at Seahawk, said: “Customers who choose Seahawk as part of their UK supply chain, experience a personalised service that adds value to their organisation. We’re a trusted supplier to many industries, and it’s brilliant to be able to supply critical products to people in need, right on our doorstep here in Fife through this brilliant Fife Council initiative.” With rising fuel costs and inflation, more people are having to make the difficult choice of heating or food. As it is getting more difficult for many people to heat their homes, Fife Council stepped in with the help of Seahawk. The winter warmer packs have been funded by Fife Council through the Scottish Government’s Winter Hardship fund, which helps people in fuel crisis and financial hardship. Sheena Watson, Programme Manager for Tackling Poverty and Crisis Prevention Board for Fife Council, said: “It’s brilliant to be able to work with a local Fife-based company for this project. We’re grateful to the team for pulling it all together so quickly to enable us to deploy support to those who need it most.” The packs contain a selection of winter essentials including: warm socks, a fleece scarf, thermal gloves, a thermal hat, a fleece gilet, fleece blanket, an insulated mug and a hot water bottle; all packed by Seahawk in a reusable canvas bag. The Seahawk van delivered the packs to eight regional community centres for distribution to the pre-selected Fife residents. JP Easton, Community Development Manager, based at the Lomond Centre in Glenrothes said: “These packs will be invaluable to a lot of people in Fife who are struggling with fuel poverty. While providing a much-needed service to some of the most vulnerable people in Fife, it’s also great that we have been able to source these locally, from a truly local supplier.” Seahawk Apparel is a member of Made in Britain as well as the Scotland Excel procurement framework, which means buying from us is a really streamlined process.
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SCOTT GROUP INVESTMENTS LTD, HALBEATH INTERCHANGE BUSINESS PARK, KINGSEAT ROAD, HALBEATH, DUNFERMLINE, FIFE KY11 8RY T: 01383 627 100 F:01383 627 101
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