Last Thursday, we hosted our very first Timber Industry Meetup in Melbourne with a group of our Victorian clients.
What struck me most was really the openness of our conversations. We talked about everything under the sun: squeezed margins, tightening regulations and the constant question of how to stay competitive without losing what makes their operations work.
Here are the five key takeaways from the afternoon.
1. The state of play: Competition and constraints
The mood in the room was cautiously resilient. It is no secret that the Australian timber industry is facing a "perfect storm" of challenges:
- Logging and timber import restrictions: Tightening government regulations on native logging and new timber import compliance rules continue to squeeze local supply.
- The import war: Highly competitively priced imports are putting immense pressure on local margins.
- The freight hurdle: A major pain point discussed was the rising cost of interstate freight. For many timber businesses, these costs are becoming a significant barrier to reaching new markets across state lines.
2. Queensland: The north star of growth
There is a genuine sense of excitement regarding Queensland. With major housing developments planned for the state and the infrastructure boom leading up to the Brisbane 2032 Olympics, Queensland is seen as the primary engine for growth in the coming years.
For timber businesses looking to expand, the question isn't if they should be positioning for Queensland, it is how soon they can get there. Having the right solutions in place to handle multi-location operations and interstate logistics will be crucial for capitalising on this opportunity.
3. Tech with a purpose: AI and Odoo v19
Technology was a hot topic but not in the way you might expect. The group wasn't interested in flashy features, they wanted timber ERP tools that solve actual problems.
The AI automation and reporting features in Odoo v19 generated genuine interest, particularly around:
- Flagging unusual stock movements or pricing trends before they become issues.
- Making data easier to find without endless clicking.
- Giving teams the ability to be proactive rather than reactive.
But here is the reality check: business management software for timber businesses only works if people actually use it.
Stock traceability came up repeatedly. With the import regulations we mentioned earlier now requiring stricter due diligence, timber businesses need robust systems to prove products are sustainably and legally sourced. When issues surface, whether it is a compliance audit or a customer query, having a clear chain of custody from supplier through to delivery isn't just good practice, it is essential protection.
Beyond compliance, the fundamentals still matter: tracking what you have and where you have it using accurate timber tally information is key to running any successful timber business. Packs, lengths, treatments, grades, lots, multiple handling points – when managing this complexity becomes cumbersome, confidence in the system erodes fast.
4. Why the "January Slump" is temporary
Yes, January has been very slow. Everyone at the table confirmed it. But the veterans in the room aren't panicking.
Strong indicators suggest this is a temporary reset:
- Projects delayed at the end of last year are starting to resurface.
- The housing pipeline remains fundamentally active.
- While potential interest rate rises create some uncertainty, they are also making businesses more deliberate about investing in tools that protect margins.
The message was clear: use the quiet period wisely. Those who sharpen their operations now, whether through better processes or implementing new technology, will be ready when momentum picks up.
5. The human factor: Change management
We spent considerable time discussing why some timber ERP implementations succeed while others fail. The answer kept coming back to the same thing: change management.
If technology is the engine, change management is the steering wheel. Ignore it and even the best business management software for your business won't get you where you need to go.
Interestingly, when we discussed training for timber business software, the group had a clear preference: written documentation over training videos. The reason? Videos aren't always practical when someone needs a quick answer on the job. Clear, step-by-step documentation supports confidence and consistency, especially during onboarding and periods of change.
Another reminder: it is not about tech for tech's sake, it is about what actually helps people do their jobs better.
The big picture
The most inspiring part of the meetup was the shared recognition that standing still isn't a strategy. Whether through peer conversations, adopting AI-driven insights in modern timber ERP systems or refining internal processes, these businesses are choosing adaptability over stagnation.
We started with a small group in Melbourne but the depth of conversation was significant. I'm already looking forward to growing this community and bringing the same "no-pitch, just-talk" energy to our clients in other states soon.
Thanks to everyone who joined us. Your candour and insights made this worth doing. Stay tuned for the next one!