Could lumber shortages impact the upcoming construction season? An examination of Russia's forestry sector

LesEGAIS: A solution or a problem? Representatives of the timber industry from the Arkhangelsk and Vologda regions, as well as the Far East, have called upon the Prosecutor General's Office to scrutinize the activities of Rosleskhoz, the Federal Forestry Agency. The concern lies with the ongoing errors disrupting the seamless execution of the LesEGAIS accounting system. Timber companies in Russia have encountered a plethora of issues since the LesEGAIS system became fully operational. "Electronic shipping documentation for timber products has become a pain point," says a spokesperson for Region-Les, one of the key industry players. Entrepreneurs have also expressed dissatisfaction with the LesEGAIS mobile application. Its incapacity to process transactions or create electronic supporting documents (ESDs) for timber transportation without errors and interruptions has raised many eyebrows in the industry. A call for compliance and consistency The concerns extend beyond functionality; the LesEGAIS mobile application's operating algorithm does not align with the prevailing laws and regulations. For instance, it currently does not allow for electronic timber delivery to individuals. Such mismatches put the system's relevance and reliability into question. Further, the system fails to register subsequent transaction steps until it rectifies the preceding one. This protocol will kick into effect starting March 1, bringing the industry to a potential standstill if the technical issues remain unresolved. "The forestry business risks a standstill if nothing changes soon," warns the Region-Les spokesperson. The timber industry has repeatedly appealed to the Federal Forestry Agency, highlighting discrepancies and requesting prompt resolution. Despite their persistent efforts, however, the problems persist. The Future of Timber: A Delicate Balancing Act Looking at the current state of affairs, one might wonder: "Are we racing towards a crisis?" The forestry industry's pace of change, especially since January 2022, has been reminiscent of a lumber clearance race – but it seems not all can keep up. During mid-January 2021, over 600 out of 1000 applications in LesEGAIS were stuck in processing limbo. This staggering statistic underscores the urgent need for an efficient, responsive system that can handle the industry's dynamic needs. In today's digital era, "We can't cope!" is no longer an acceptable refrain. As we move further into the new year, the industry is bracing for an anticipated surge in demand for timber and its derivatives during the peak season (April-May). A shortage in raw materials could trigger a significant hike in lumber prices, adding an unexpected twist to the upcoming construction season. Staying prepared: Stocking up and standing strong Despite the ongoing issues, it's not all gloom and doom in the forestry industry. The current market conditions reveal a wide array of available lumber and minimal demand. Businesses have ample stock at their disposal, including decking, timber cladding, boards, beams, and more. As we head into April, the situation will undoubtedly shift, with warehouses emptying and production adjusting to fulfill specific orders. Regardless of the challenges, our production processes remain unaffected. We've taken a proactive approach, securing substantial stocks of Siberian larch and coniferous sawn timber. We're committed to ensuring an uninterrupted supply from the forest, offering a diverse range of wood without any price hikes – a warm invitation to all! In the face of evolving market dynamics and technological hiccups, the forestry industry remains resilient, looking towards the future with optimism and preparedness. Manufacturer of high quality wood & timber supplier