’Efficiency is our engine for growth’

Mr Pfeifer, how do you assess the current economic situation in the timber industry?

Michael Pfeifer: The situation remains tense, even though the market has stabilised somewhat after the sharp price fluctuations of recent years. Last summer was good for the forest thanks to high rainfall – there were hardly any bark beetles, which meant less damaged wood. This led to a lower volume of roundwood in Central Europe in the autumn and, as a result, to rising roundwood prices. At the same time, demand from the construction industry remains subdued.

It is crucial that we at Pfeifer continue to increase our productivity at all levels in response to this situation – from sawing operations through to administration. At the same time, we are intensifying our sales activities, for example with our own branch in the United Kingdom.

Digitalisation and artificial intelligence are shaping the current debate. What role do these developments play for Pfeifer?

Michael Pfeifer: The possibilities of AI are enormous and will profoundly change our everyday work. Especially in the areas of administration and organisation, we are currently seeing how artificial intelligence accelerates processes and supports decision-making. At the same time, we must not forget that digitalisation is not an end in itself, but a tool for becoming more efficient. We have invested heavily in recent years to take our plants to the next level in terms of technology – now it's a matter of perfecting the fine tuning. A good example is the fully automated fully automated patching station at the natural wood panel plant in Imst, which we commissioned in 2024. Our new natural wood panel plant is state-of-the-art. It runs at 20% higher capacity and with 30% fewer staff. This shows that we are compensating for demographic changes through automation while simultaneously increasing quality and competitiveness.

How can this technological development be combined with the Pfeifer Group's strategic perspective?

Michael Pfeifer: The key lies in combining technology, expertise and consistent implementation. We have used the good years of the past to make our plants fit for the future. Now it is a matter of further harmonising processes and interfaces – both digitally and organisationally. Our locations need to be even more closely integrated. There is enormous internal potential that we want to make better use of – from process optimisation to company-wide data integration. At the same time, less is often more. We need to focus on the essentials, make decisions faster and avoid getting lost in coordination loops and meetings. AI can help with this – but the priority remains for people in the company to act highly effectively and with a clear focus. Efficiency is our engine for growth.

Logistics is also undergoing change at present. How do you assess the current situation?

Michael Pfeifer: Following the tense last few years, the logistics market has calmed down noticeably as a result of the weak economy. Many freight forwarders have reduced their vehicle fleets. If demand picks up again, transport capacities will once more become a bottleneck factor. We are seeing some companies already taking unconventional approaches – such as simulator training in India to increase driver potential there.
For us at Pfeifer, the expansion of rail logistics remains an alternative. We already transport around one million tonnes per year by rail and want to increase this share further.

Despite these challenges, how do you see the medium-term prospects for the timber industry?

Michael Pfeifer: Timber remains a raw material with a future. Timber construction is gaining more and more market share both within and outside Europe. Austria in particular is playing a leading role in timber construction worldwide, with other countries looking to developments here for guidance. Around 25% of all new buildings in Austria and Germany are already being constructed in timber – and the trend is rising. In Italy and France, the share of timber construction is 7%, which shows the enormous potential for further growth in timber construction in these countries. In Italy, there is already a requirement that public buildings such as nurseries and schools must be built from timber. Timber is climate-friendly, versatile and meets the demand for sustainable construction. In the long term, demand for our products will continue to grow. The socio-political tailwind is clearly noticeable: building with wood is the future. The outlook is therefore positive. In order to take advantage of this, we are challenged to continuously refine the structures within the company and increase efficiency. The era of pure growth is over. Now it is a matter of refining, improving and expanding what already exists.

The decision to invest in Finland was a strategic milestone. How do you assess this step?

Michael Pfeifer: The move to Finland was crucial to securing our raw material base in the long term. With the integration of Pölkky, we now have access to high-quality Nordic softwood – one of the best raw material qualities worldwide. In times of increasing climate risks, security of supply is a key competitive factor.
Our Finnish site in Kajaani, where we commissioned a new sawmill last year, is a technological leader, just like our other sites. Working with the local teams enriches our entire group of companies. This investment strengthens Pfeifer strategically and secures the basis for future growth.

Finally, what do you want from your employees in the coming years?

Michael Pfeifer: We are all called upon to make our contribution – regardless of our level. The tasks are becoming more complex and demanding, but also more exciting. I hope that we as a team will remain focused, make pragmatic decisions and work enthusiastically on improvements. If we succeed in maintaining a balance between technology and corporate culture, Pfeifer will continue to be successful in the future. Our goal remains unchanged: to further strengthen the performance and innovative power of the Pfeifer Group – for our customers, for our employees and for the future of our company.