The economic situation of the German sawmilling and timber industry remains strained, according to the latest report from the German Sawmill and Timber Industry Association (DESH). Ther Berlin-based group, which represents German sawmillers, says the persistently weak construction sector, the global economic and sales crisis, high raw material and production costs, and mounting cost pressures are placing a significant burden on domestic companies. It warns of a further deterioration in the situation. In the coming weeks, DESH says many companies will be forced to scale back production capacities and extend scheduled maintenance periods. “Despite promising rhetoric from policymakers, the hoped-for recovery of the domestic construction industry has yet to materialize,” it said. “Demand for construction timber in key export markets also remains subdued due to geopolitical crises and a global economic slowdown. At the same time, persistently high costs for raw materials, energy, and production are burdening companies.