The HoTSW Forestry Enterprise Action Plan
A Business Case for the Growth and Development
Of the Forestry and Woodland Sector
- Heart of the South West Local Enterprise Partnership Area
Prepared by
The Silvanus Trust and Laura Jones Associates
(Contact: jane.hart@silvanus.org.uk; 07974 715379)
On behalf of:
HoTSW Forestry Task and Finish Group
Forestry Commission, Devon County Council, Confor, Tamar Valley Area of Outstanding
National Beauty (AONB), North Devon Biosphere Reserve, FWAG South West, The Silvanus
Trust and Exmoor National Park.
&
HoTSW Local Nature Partnership
The above members, plus: Blackdown Hills AONB, Climate Positive, Crops4energy, Devon
Hedge Group, Devon Wildlife Trust, East Devon AONB, Natural England, RegenSW, South
Hams District Council, South West Energy Centre, Torbay Council, Trees and Land CIC.
Acknowledgements
Thanks to RegenSW for off gas-grid and un-managed woodland maps and Forestry
Commission, Timber Strategies, Martin Glynn Consultants, Devon County Council and South
West Energy Centre for further data and discussion.
1
Contents
1.
Introduction ....................................................................................................................... 3
2.
Our aspirations for the HoTSW LEP area ........................................................................... 4
3.
The sector – Opportunities for growth .............................................................................. 5
3.1
How woodlands contribute to the HoTSW LEP area .................................................. 5
3.2
The woodland resource............................................................................................... 7
Figure 1: Comparison of hardwood production between harvesting scenarios over 50-year
forecast ...................................................................................................................................... 8
3.3
The hedgerow resource .............................................................................................. 9
3.4
Supply chain ................................................................................................................ 9
Table 1: Wood chain businesses relevant to HoTSW area ........................................................ 9
3.5
Processing – the ‘Timber’ economy .......................................................................... 11
3.6
Key contribution to a low carbon economy .............................................................. 12
Figure 2: High, medium and low density off gas-grid properties and under-utilised woodland
in the HoTSW area ................................................................................................................... 14
3.7
Recreation, health and education – the ‘Non-Timber’ economy ............................. 15
3.8
Jobs within the forestry and woodland sector ......................................................... 15
3.9
Gross Value Added .................................................................................................... 16
4.
Growth opportunities contributing to HoTSW LEP priority areas ................................... 17
5.
Delivery and costs ............................................................................................................ 23
6.
Deliverables...................................................................................................................... 24
7.
Best practice and linkages ............................................................................................... 26
8.
A non-funded scenario..................................................................................................... 27
2
1. Introduction
The Heart of the South West (HoTSW) Forestry Enterprise Action Plan is a coordinated
sector approach to capture expanding market opportunities for wood and wood related
products. Rural employment, apprenticeships, low carbon timber and renewable fuel will
be delivered through growth in the sector, whilst also releasing resources from local
woodland and hedgerows. Collaboration and sustainability will be cross-cutting themes
integral to all areas of development, embedding connectivity and best practice.
Throughout 2015-20 facilitated investment, supply chain and market developments,
specialist business support, and training – all focused on specific development opportunities
- will enable the woodland sector1 to increase productivity, reach new markets and improve
the skills base. HoTSW Local Enterprise Partnership (LEP) priorities will be met through:
Securing the Capital:
increasing forest,
woodland and
hedgerow
management and
developing the
resource for the
future
The Supply Chain:
developing the wood
chain, including
woodfuel
SME
A Skilled and
Competitiveness:
Qualified Workforce:
enabling enterprise,
innovation and,
reaching new
markets
creating rural jobs,
apprenticeships,
maintaining and
increasing
knowledge and skill
levels
Collaboration & Sustainability
Woodlands and the businesses they support, either directly or indirectly, are economically
important to the HoTSW LEP area. Similarly the woodland of the area are highly significant
in environmental and landscape terms and the importance of the environmental Distinctive
Assets to economic prosperity now and in the future is recognised within the HoTSW LEP’s
strategy. Woodlands have been noted as providing significant ecosystems services across all
the ecosystem services categories (provisioning, regulating and cultural).
1
The woodland sector is wide – encompassing larger forest areas and estates to smaller woodlands, copses
and, in its widest sense, the hedgerows of the South West with their strong biodiversity and cultural
associations.
3
2. Our aspirations for the HoTSW LEP area
To increase the proportion of industries making use of wood in the HoTSW area, to
benefit the productivity of local woodland, businesses and community enterprises, and to
replace ‘carbon heavy’ materials in a range of economic sectors with wood, including:
construction, low carbon housing, engineered products and wood fuel.
A secured resource:

For 66% of all woodlands in the HoTSW LEP area to be in management this would mean
increasing the management area from 47,000ha (46%) to 67,500ha or by 20,500ha. In
economic terms increasing this will create 84 jobs with a related increase in GVA of
£1,932,000 (84x£23,0002).

A good proportion of this wood is used by local businesses and community enterprises
that are made increasingly aware of the opportunities for local sourcing.

Woodland owners in The Heart of the South West are aware of the opportunities and
future needs and potential for their woodlands; how to take those opportunities, and of
the organisations and companies that they might collaborate with.

Further woodland creation mitigates the forecasted reduction in commercial timber.
Growth across the supply chain:

If a further 20,500ha of woodland were to be managed bringing approximately 93,275
tonnes of timber to market annually3 an additional 2384 jobs are created. For the
proportion of this wood that is utilised in the non-fuel uses then the carbon is captured
for the lifetime of the product.
Greater enterprise, innovation and SME competitiveness, reaching new markets:

Existing businesses in The Heart of the South West are able to make the most of
2
Roots to Prosperity, ‘A Strategy and Action Plan for the Growth and Development of the Forestry Sector in
Northern England’, June 2014. This report uses the Annual Business Survey report figure of £23,066 as the
approximate gross added value per employee for the forestry and logging sector. The figures are higher for the
processing sector but this figure has been used in this document.
3
Based on an average yield class of 6.5 (assuming average yield class of 14 for conifers which constitute 75% of
HoTSW woodlands and yc4 for broadleaves which constitute 25% of woodland area) and a 70% average
thinning intensity.
4 Roots to Prosperity, A Strategy and Action Plan for the Growth and Development of the Forestry Sector in
Northern England, June 2014
4
innovations (e.g. engineered timber, pyrolysis, technology to maximise production and
value adding) within the industry and the market opportunities that arise from the
context of the HoTSW area (e.g. housing growth, new or fast developing industries such
as biomass renewables, a vibrant and increasingly higher value tourism market), new
marketing innovations such as online platforms (e.g. business to business sales in food
area – extending to wood), and the increasing branding opportunity eg. Online sales of
local brand) and to ‘localise’ relevant national and international innovations.

New businesses opportunities are explored and created by new entrants and existing
businesses.

Community enterprises are supported by the industry to flourish.

The area takes best opportunity of the Grown in Britain movement5 mirroring the
development of industry led partnership to maximise the use of local wood products.

Existing and new businesses maximise the opportunity of computer aided design, use of
digital technology etc., in their production, marketing and sales processes.
A skilled and qualified workforce:

Those working within the sector are continually developing their own skills and those of
the industry in its widest sense (e.g. through apprenticeships, business skills, mentoring
and keeping abreast of relevant future skills). They have access to the latest information
and up to date research in easily accessible formats.
3. The sector – Opportunities for growth
3.1 How woodlands contribute to the HoTSW LEP area
Woodlands have for centuries provided goods to the inhabitants of the LEP area and beyond
– attested to by the continued presence of the charcoal hearths of the smelting industry in
the woods themselves and the presence of oak beams, and of course, fire places in many
traditional and new buildings). They continue to contribute in a variety of important ways to
the economic well-being of the LEP area including:

Through wood products both
o traditional (logs, bars, chipwood for reprocessing into chipboard, particle, strand
board etc.), and
5
Grown in Britain http://www.growninbritain.org/
5
o developing (woodfuel and engineered wood products such as glulam beams,
finger jointed larger dimension material etc.);
o artisan goods (from sculpture to restaurant grade charcoal);

Through ‘in-wood’ other activities e.g. recreation (shooting, walking, cycling, cabins,
paintballing etc.) and their associated businesses;

Through ‘wider ecosystems services’ including
o ‘cultural services’ – acting as both a backdrop and a location for tourism, and an
opportunity to enhance our well being through enjoying natural, tranquil spaces
– a particularly important resource to regional assets, such as the protected
landscapes of our National Parks, AONBs and Nature Improvement Area which
would benefit from more managed woodland;
o Vital ‘regulatory services’ necessary for life (mitigating flood risk, purifying water,
providing clean air, maintenance of soil quality and provision of organic
materials, storing carbon to reduce the extent of climate change6 etc.).
In addition the woodland sector has a number of attributes of relevance to developing its
economic potential including:

A few larger estates or management units such as the Forestry Commission, Duchy,
Crown, Clinton Devon etc., to a very large number of small woodland owners often with
very small woodland areas in their ownership, to woodlands on farms when the
woodland is usually subsidiary to the main farm business;

Geographically dispersed – which creates both a challenge and an opportunity (e.g. for
wood as a fuel);

A variety of accessibilities – some with excellent within wood infrastructure of roads
and loading bays and located near good public road infrastructure to small isolated
woodlands with limited or no within woodland infrastructure and accessible by narrow
lanes.
6
Realising nature’s value: The Final Report of the Ecosystem Markets Task Force, 2013
6
3.2 The woodland resource
Estimates of area of woodlands, standing volumes and timber forecasts are set out below7:
Woodland Area (ha)
102,200
Forestry Commission managed woodland
10,700 (10.5%8)
(ha) (conifer / broadleaf)
(8,100 / 2,600)
Private sector woodland area (ha)
91,500 (89.5%)
(conifer / broadleaf)
(17,500 / 73,900)
% of all woodland in some form of active
Approx. 46%
management
% of area with evidence of thinning9
Approx. 20%
within private sector woodlands (all
species)10.
Standing volume (000 m3 obs)11
26,108
Biomass stock (000 odt)12
20,313
Carbon stocks (000t)
10,156
Potential area of increased management
20,5003
(ha)
Potential increase in tonnes per annum
93,275
Much of the private sector broadleaved resource is not in active management.
The
theoretical timber that could be realised on a sustainable basis from this under-managed
resource is significant (Figure 113), with the ‘unrestricted’ scenario showing the potential for
hardwood timber if management constraints were addressed and under-utilized woodland
brought into management. A significant barrier to economic potential is the size of the
7
All figures are taken from the National Forest Inventory provisional estimates for woodlands in the Heart of
the South West Local Enterprise Partnership Area, March 2015
8
This compares to 17% of ownership based upon the South West Region (now defunct as a political entity)
9
Used as proxy for management in producing forecast figures and noted as a conservative approach to
calculating future volumes
10
This figure allows future estimations based upon current evidence
11
‘Over bark standing’ measurement – the standard measurement of standing timber
12
Oven dried tonnes
13
National Forest Inventory provisional estimates for woodlands in the Heart of the South West Local
Enterprise Partnership Area, March 2015
7
individual woodlands. Figures are not yet available for the LEP but the figures for the South
West Region (as was) indicate that 30% of woodlands, by area, are sub 20ha in size with the
remaining 70% 20ha or larger. This proportion should reflect the HoTSW LEP woodland
scales reasonably well (they are 40% of the region’s woodlands).
Figure 1: Comparison of hardwood production between harvesting scenarios over 50-year
forecast
In addition the local resource needs securing. The availability of commercial timber, both
hardwood and softwood, is forecast to steadily reduce in the HoTSW area14 and if not
addressed through further woodland creation this could become the single biggest
challenge to growth facing the wood processing sector in the future, eroding business
confidence and threatening jobs.
14
National Forest Inventory provisional estimates for woodlands in the Heart of the South West Local
Enterprise Partnership Area, March 2015
8
3.3 The hedgerow resource
With 53,000km15 of the most extensive and intact hedgerow network in the country found
within the HoTSW area there is significant potential to establish the management of hedges
for woodfuel to drive sustainable landscape management. Only about 40% of hedges in the
south west are currently in favourable condition but most are highly accessible and could be
managed to produce worthwhile crop of wood fuel whilst enhancing hedgerow contribution
to biodiversity and carbon storage. Through coppicing hedgerows and chipping the cut
wood energy can be produced at approximately 2-3p/KWh, comparable to oil at about
6p/KWh16.
3.4 Supply chain
The ‘wood chain’ reaches across the sector from tree nurseries and planting services to
timber production, hauliers, processing (see Table 1), suppliers and retailers, suppliers of
forestry related equipment, and includes non-timber activities such as recreational, tourism
and education which rely on woodland and forestry (see section 3.6).
The wood energy
chain also specifically includes a growing number of suppliers/retailers of biomass products
and installers of renewable heat installations and retrofit solutions.
Table 1: Wood chain businesses17 relevant to HoTSW area
Primary processing:
Secondary processing
Tertiary processing:
Sawmills, veneer manufacturers, wood carvers, wood
turners, furniture makers, charcoal makers, hedge laying,
hurdle makers
Saw log- timber construction products, eg, joinery grade
timber, structural beams, paper, pulp and board
manufacturers, fibre board manufacturers
Small round wood - stake (fencing, gate, bar)
manufacturers, seasoned logs, kindling, wood chips
Residuals - animal bedding, compressed briquettes, pellets
New – glulam beams, finger-jointed larger dimension
materials
Final stage of processing and uses the products of
secondary processing to manufacturer products frequently
sold to the individual consumer, e.g., furniture and kitchen
units production
15
State of Devon’s Nature, 2013 Devon Local Nature Partnership
Wood fuel from hedges, Devon County Council, Tamar Valley AONB, The Devon Hedge Group, 2014
17 South West England Woodland & Forestry Strategic Economic Study, Ekogen, Lockhart Garratt, Professor
Colin Price, Bangor University, 2009
16
9
Greater collaboration within the supply chain will help to secure and develop new market
opportunities.
Processing industries could benefit from greater awareness among
woodland owners of the requirements of the processing industries and the need for longer
term security of wood supplies to enable confident investment in additional wood
processing capacity.
Supporting existing wood processing businesses to increase the
demand for round-wood could also make a significant potential contribution to other parts
of the economy such as agriculture and construction18.
The local wood chain is currently served by the web-based South West Directory of
Woodland Products and Services (http://www.woodland-directory-sw.org.uk) which has the
potential to be developed into a more sales-oriented platform, with the facility to distribute
order enquiries to listed members. Wood fuel suppliers can currently be registered on the
Renewable Heat Incentive Biomass Suppliers list (https://www.gov.uk/find-fuel-supplier)
and the National Biofuel Suppliers Database (http://www.woodfueldirectory.org/).
Several local forestry initiatives support the wood chain offering expertise, advice and can
offer an impartial ‘broker’ service and coordinating services. Additionally, collaborative
initiatives, such as the Ward Forester enterprise (wardforester.co.uk) and Dartmoor
Woodfuel Cooperative (http://www.dartmoorwoodfuel.co.uk/) operate locally to facilitate
groupings of woodland owners and wood users, respectively, to allow economies of scale
through grouped woodland management and shortened supply chains.
Nationally, the Grown in Britain programme seeks to significantly increase markets for
British grown wood products and to establish an ‘assured’ brand through its licensing
scheme. A Grown in Britain consortium, led by English Woodlands Timber, has recently
been awarded funding by Innovate UK, to explore how hard-wood supply chains could be
improved. Regional initiatives work closely with Grown in Britain to source opportunities for
the sector locally, Torbay Council is the first Grown in Britain local authority - bringing their
40 woodlands into active management and providing resource for the local processing
sector.
18
Opportunities to Add Value to South West Home Grown Timber, John Clegg Consulting Ltd, 2012
10
3.5 Processing – the ‘Timber’ economy
The processing sector employs approximately 14,000 people regionally when primary,
secondary and tertiary activities are included, with a further 5,953 estimated to be
dependent on the sector when employment multiplier effects are taken into account19.
Larger sawmills within the HoTSW area include Norbord, Brookridge Timber, West Country
Timber Supplies and Minehead Sawmills. Wood products directed at the construction
market from existing processing businesses are likely to be the most commercially viable for
processing more of the potentially available round-wood20. With 27,370 house build starts
in the first quarter of 2013 in England21 and 25% of new-builds in the UK being timber
framed there are considerable opportunities to increase market share within housing
developments22.
Investment in the manufacture of niche or engineered building products is also considered
financially viable within the South West region, particularly if vertically integrated into such
as design and build construction and supported by technical expertise23. These may include
small, but growing markets in such as: kiln-dried products suitable for internal joinery and
structural work; finger-jointed and laminated products using sawed and glued wood.
Secondary processor Buckland Timber in Crediton is a leading producer in glued laminated
timber for a range of joinery products, including large span structural beams.
In addition to large dimension high quality timber, lower grade locally sourced round-wood
is converted by sawmills and wood fuel processing businesses. Norbord, a South Molton
based major panel-board producer, provides an important local market for regionally grown
timber in terms of the high quantity of small round-wood it buys annual (approximately
25,000 tonnes per annum24).
19
South West England Woodland & Forestry Strategic Economic Study, Ekogen, Lockhart Garratt, Professor
Colin Price, Bangor University, 2009
20
Opportunities to Add Value to South West Home Grown Timber, John Clegg Consulting Ltd, 2012
21
National Government Statistics: House Building, March 2013
22
Investing in the timber processing industries of the south west, Woodland Renaissance Partnership, 2013
23
Opportunities to Add Value to South West Home Grown Timber, John Clegg Consulting Ltd, 2012
24
As above
11
Competing for this round-wood is a growing wood energy market with strong demand for
firewood and woodchip aligned with the market growth for woodfuel boiler installations for
both domestic and community properties. In some instances hardwood logs are worth
more as firewood then in the saw log market25. Small scale processors are numerous and
scattered across the area, but larger operators include Okehampton based Forest Fuels and
Dunster Biomass Heating, Taunton. The pellet market is also growing rapidly, but most
pellets are currently imported into the area.
3.6 Key contribution to a low carbon economy
The sector has a key role to play in the transition to a low carbon economy – developments
in low carbon housing will provide opportunities for use of timber in new forms of
engineered composite products26, allowing locally procured timber to be sold as ‘climatefriendly’ and renewable solutions in the built environment. The carbon contained in timber
construction materials remains stored for the duration of the product’s lifetime and these
products have the lowest energy consumption and carbon dioxide emissions of any
standard building material. Building a house with wood rather than brick reduces carbon
emissions by 10tonnes of carbon and that replacing 1 tonne of brick or concrete with the
same volume of timber can save up to 1 tonne of carbon dioxide emissions27. Additionally,
the resulting potential increase in local sustainable woodland management and investment
in new woodland will enhance the longer term resource with its positive impact on climate
regulation, via carbon storage – the sequestration of tonnes of carbon dioxide.
Wood not suitable for timber uses can supply renewable energy and provides an alternative
to fossil fuels. With shortened supply chains local buildings can be economically heated
with such as woodchip, biomass pellets and seasoned firewood, sourced from local woods
and hedgerows, processed nearby, minimising transportation. There is great potential for
wood energy from under-managed woodland to address fuel poverty and the challenge of
decarbonising heating systems in the widespread off gas-grid properties (currently 83,000
homes in Devon). Community buildings and business units could also benefit – there are
25
Somerset Woodfuel Resource Study, FWAG South West, 2010
Investing in the timber processing industries of the south-west, 2013, Woodland Renaissance Partnership
27 Roots to Prosperity, ‘A Strategy and Action Plan for the Growth and Development of the Forestry Sector in
Northern England’, June 2014
26
12
currently 6328 schools in the county receiving oil and/or liquefied petroleum gas (LPG)
deliveries, which could be encouraged to switch to a lower carbon source of heating whilst
supporting the local economy. Many communities are actively pursuing community owned
renewable energy schemes, which keep the economic benefits of energy local, rather than
enabling leakage to the large energy companies.
The proximity of under-utilised woodland to the potential market of off gas-grid properties
within the HoTSW area is demonstrated in Figure 2. Properties are located across the area
with red ‘hot-spots’ of high density off gas-grid housing, such as small regional towns,
providing focused markets for wood fuel from nearby woodland. ‘White’ regions include
such as Exmoor and Dartmoor with comparatively very low numbers of housing but still
contain many off gas-grid properties that would benefit from a local alternative to oil and
LPG.
28
DCC correspondence, June 2015
13
Figure 2: High, medium and low density off gas-grid properties and under-utilised woodland in the HoTSW area
14
3.7 Recreation, health and education – the ‘Non-Timber’ economy
The area holds several popular hubs offering forest based recreational activities (mountain
bike trails, high rope challenges) including Haldon Forest, Neroche Forest and Tavistock
Woodlands Estates with many other woodland providing high value green spaces for
localised health promoting activities such as walking, cycling, horse-riding. Activities within
woodland are also often connected to other economic sectors, such as refreshment
facilities, bike hire and pony-trekking outlets. The 1SW cycling route established a critical
mass of off-road cycling in the region and the draft final report for this project showed that
usage on trails “far exceeded” expectations, and revenues generated at the hubs were
“healthy and showed reduced seasonality” compared to other tourist offers.
Recreational field sports also form a close economic relationship with woodland in the
HoTSW area, particularly in such as Exmoor National Park. The value of shooting activity in
the woodlands of Greater Exmoor is of significant value with a recent study29 noting that
£4million, as measured by Gross Value Added, is retained in the Exmoor area local economy.
Local woodland hold many other assets to be recognised - they are rich in archaeology such
as charcoal hearths and iron age hill forts, and cultural resources
and benefit rural
enterprises offering survival skills, rural craft, foraging, etc. The Natural Environment White
Paper30 calls for every child in England to be given the opportunity to experience and learn
about the natural environment. There are approximately 125 forest education practitioners
in Devon31, with several others in Somerset and all reliant on woodland to provide socially
inclusive and income generating educational and family focused activities.
3.8 Jobs within the forestry and woodland sector
Accurate estimates for jobs supported directly or indirectly by the woodland sector are, by
virtue of the industry32 difficult to come by. A recent study for an area in SW Scotland
29
PACEC, The Role of Game Shooting in Exmoor, 2012 on behalf of the National Park Authority and in
association with the Greater Exmoor Shoots Association and other partners
30
‘The Natural Choice: securing the value of nature’ (DEFRA, 2011)
31
Membership data of the Devon Forest Education Network, 2015
32
High proportion of self-employment sole-traders and a workforce that is mobile geographically and by
season. In addition jobs that arise from woodland sector such as woodfuel businesses are not separately.
15
quoted a figure of 1 job per 242ha of actively managed woodland33 (based on a 40 year
rotation). In a 2014 study34 a figure of 8.9 FTE jobs for every 1000ha of woodland in
management was used. An earlier study relating to the South West Region 35 noted a figure
of 6.12 FTE in primary processing per 1000ha of all woodland (managed and undermanaged). Accurate extrapolation is not possible for a variety of reasons. However, if a
figure of 1 job per 242ha of newly actively managed woodland were to be used to indicate
an effect, then an increase in woodland management of 20,500ha might lead to an
additional 84 FTE.
In addition if the figures from the Roots to Prosperity report 10 are used then for every
additional 10,000tonnes of material processed in an area might increase jobs by 25.5 FTE,
leading to an indicative (due to variable nature of contexts) total of 238 jobs from a
potential increase of 93,275 tonnes per annum in the HoTSW area.
These are jobs that can help to transform areas of rural deprivation - the potential of
strengthened wood fuel supply chains meeting energy needs of nearby off gas-grid
properties will, in particular, offer rural employment and create job opportunities where
opportunities are few36. The sector is also keen to provide rewarding apprenticeship
opportunities where there are predicted skills shortages in future resource management
and processing37.
3.9 Gross Value Added
The total Gross Value Added (GVA) of woodlands is not directly available for the HoTSW
area but a number of reports are relevant. The South West Regional Study by Ekogen et al38
noted a GVA of the processing sector of £404m with a further £121m generated through
indirect and induced economic effects. It also noted a GVA per head of £35,200 (across the
33
Eskdalemuir A comparison of forestry and hill farming; productivity and economic impact, Feb 2014, SAC
Consulting
34
Roots to Prosperity, A Strategy and Action Plan for the Growth and Development of the Forestry Sector in
Northern England, June 2014
35
South West England Woodland & Forestry Strategic Economic Study, April 2009
36
Heart of the South West Local Enterprise, ‘Strategic Economic Plan Final Submission’ 31st March 2014 p7
37
Forestry Skills Action Plan, Forestry Commission, 2011
38
Ekogen in association with Lockhart Garratt and Professor Colin Price, ‘South West England Woodland &
Forestry, Strategic Economic Study.’ April 2009
16
sector), however, only part of this processing sector is based in the HoTSW area. A more
recent report39 noted a GVA of just over £23,000 per employee in forest management using this figure we can calculate an estimated GVA figure of £1,932,000 by increasing the
woodland area in management (84 jobs created x £23,000 per job40).
4. Growth opportunities contributing to HoTSW LEP priority areas
Sector growth will be delivered through facilitated investment, supply chain and market
developments, specialist business support, and training – focused on the following
development opportunities:
39
Ibid Roots to Prosperity, 2014
Roots to Prosperity, ‘A Strategy and Action Plan for the Growth and Development of the Forestry Sector in
Northern England’, June 2014. This report uses the Annual Business Survey report figure of £23,066 as the
approximate gross added value per employee for the forestry and logging sector. The figures are higher for the
processing sector but this figure has been used in this document.
40
17
HoTSW LEP
Securing the Capital:
The Supply Chain: further
Enterprise, innovation and SME
Maintaining and increasing the
Priorities
Increasing forest, woodland
developing the wood chain
competitiveness, new markets
skills of this rural sector,
and hedgerow management
including woodfuel
including apprenticeships
and assuring/developing the
resource for the future
Capitalising on our
distinctive assets –
> Increasing woodland
management and local wood
use
to create higher
value growth and
better jobs
(transformational
opportunities,
strengthening
research,
development and
innovation and
environmental
assets)
41
42
> modelling undermanaged
woodland against ground
slope and access to target
woodland with best chance
to become managed and
produce timber41
> Investment in new
woodland to enhance longer
term resource including
plantings around new
developments; new
woodland plantings etc. (e.g.
businesses investing in
woodland creation project to
enhance environment
around towns– low carbon
building aspirations, shade in
> Strengthen links between the
woodland, wood products and
biomass fuel sectors and the
first class research regional
facilities such as Exeter and
Plymouth Universities as well as
national and international
institutions (Building Research
Establishment, Forest Research)
to maximise opportunity and
applicability to market;
-Ensure that research finding
are disseminated in readily
accessible formats
> Development of high value
> Engaging the sector in
markets for local wood products specialist marketing training to
with local narratives relating to enable the effective use of
brand (e.g. Exmoor hedgerow
locality narrative
charcoal, local restaurant
charcoal); green oak build and
utilising local wood products
within local building; wood fuel
> Developing the marketing
narrative of locality and
sustainability and using digital
media to enhance consumer
understanding (e.g. YouTube
promotion of local sourcing,
processing, crafting ,etc)42
Bringing local success from experience of ‘Marches Undermanaged Woodland Ground Truthing Survey’, Heartwoods, June 2014
Example of YouTube narrative highlighting the power of local consumption choices https://www.youtube.com/watch?t=325&v=BZl6NdhQFoI
18
towns)
> Further use of the existing
Maximising
Productivity and
Employment
Across the whole
economy and to
benefit all sectors
woodland infrastructure to
build on successful ventures
such as mountain biking 1SW
and developing markets such
as glamping etc. Explore
opportunities utilising
outdoor space both in the UK
and in other countries, e.g.
longer distance horse-riding,
running
> Increase investment in
appropriate equipment to
capture value, e.g. small
scale harvesting and
processing equipment;
chippers for higher quality
fuel chip; charcoal burning
> Support for collaboration to
meet needs from pest and
diseases, improve climate
resilience and develop
opportunities, e.g. shared
woodfuel storage
> Explore feasibility of newer
> Establishing easily accessible
manufacturing techniques in
small scale local businesses e.g.
kiln-drying, finger-jointing,
glulam, composite products
and up-to-date skills for wood
fuel specification installation
and maintenance
> Ensuring that woodland and
> Continue provision of
> Processing businesses to work
with woodland owners and
contractors to develop long
term supply contracts when
planning significant additional
wood processing capacity
specialist business advice to
sector such as was undertaken
through the South West Timber
Business Development
Programme (2013-14)43
wood-using businesses and
community enterprises can
access the necessary technical
and business skills to maximise
their productivity and growth
> Ensure that businesses and
community enterprises have
access to skilled operatives,
including through
apprenticeships
43
Forestry Commission’s £100,000 South West Timber Business Development Programme 2013-14 – specialist technical services, consultancy, advice and training to
businesses with potential to increase the value of the regional forestry and timber industry
19
Creating
conditions for
growth:
infrastructure and
services that
underpin growth
(transport,
broadband and
mobile
connectivity, skills
infrastructure)
Cross cutting aims:
Environmental
44
> Invest in ‘in-wood’
infrastructure of loading bays
and roading to ensure
woodland can be managed
> Explore feasibility of business
and community enterprise
opportunities of all scales from
construction and renewable
energy to hedgerow charcoal;
> Supporting the developing
charcoal production in smaller
woodfuel market, e.g
broadleaved woodlands, etc.
appropriate harvesting and in Allowing reduced
wood processing equipment, transportation costs and
equipment enhancing the
enhanced value locally
use of sawmill residues as
value adding produce – such
> Investment in wood fuel hubs
as pellets
(e.g. for drying material) developing economies of scale
> Ensuring green
and securing long term supply
infrastructure investment to
contracts
create attractive work and
living spaces and mitigate the
warming climate, e.g. tree
planting in new housing
development
- A recent report by
Greenleaf Cumbria notes
that £1 investment in green
infrastructure directly
creates £2.30 of GVA, with a
further £6.90 of wider
economic benefits44.
Contributing to longer term
> Recognising, valuing and
resilience and social inclusion
increasing the ecosystem
through:
services that woodland
> Update and maintain an
> Enabling cross supply chain
industry led woodland services
and woodland products
directory. Ensure online
platform and links to similar
platforms (such as food and
drink) where appropriate
forums for discussion,
exploration of opportunities,
dissemination of research,
collaboration, etc
> Maximising use of the
developing brands including
Exmoor, Dartmoor, Blackdown
Hills, Tamar Valley, Devon and
Somerset Brands with support
of Grown in Britain initiative
and events that allow
consumers of wood to
understand the opportunity of
locally produced and processed
wood in all its forms
Enabling collaborative
approaches to managing small
woodlands including:
>Training – improving
workforce skills across the
sector from advice to resource
producers to business
management skills in processing
enterprises and contractor skills
> Providing support for micro
and small businesses to take on
new entrants and
Roots to Prosperity, ‘A Strategy and Action Plan for the Growth and Development of the Forestry Sector in Northern England’, June 2014.
20
Sustainability and
Social Inclusion
provides, including physical
and mental health benefits,
and raising awareness
amongst businesses and local
communities, creating local
mechanisms for business
investment in such
infrastructure and
environmental goods – such
as ‘1% for your planet’, low
carbon home off-site
investments, planning gain
> Explore opportunities for
enabling and encouraging
use of wood by community
enterprises (as fuel or
products) e.g. through
community shares / social
enterprises / crowd funding
etc. thereby capturing value
of engaging with the natural
environment
> Utilise woodland, hedge
planting and individual and
group plantings to mitigate
> Developing the woodfuel
> further develop and share
district-heating potential in new
and existing developments and
enabling wood fuel to
contribute to the heating of off
gas-grid homes
> Explore the potential of
under-managed hedgerows to
provide heating in off gas-grid
areas building upon work from
existing programmes and
sharing toolkits45 that have
been developed
> Link with community
enterprises for management
activities and investment in
wood fuel hubs opportunities
toolkits for wood fuel from
hedgerows and on farm sources
> extending ‘Ward Forester’
grouped woodland harvesting
and product marketing
approach; co-operative
opportunities e.g. Dartmoor
Woodfuel Co-operative
> Ensuring the benefits and
opportunities of modern
woodfuel heating are conveyed
to the public and planners for
both new and retrofitting46 e.g.
ensuring consideration of
district heating is considered
part of the planning
requirement on new
development in HoTSW area as
they are in some planning areas
(e.g. Cranbrook in East Devon)
> Capturing an increased
proportion of timber used
within anticipated new housing
(e.g. 50,000 homes in HoTSW
2014-19)
apprenticeships - enabling
business expansion and
craftsmanship, existing
knowledge to be built upon and
handed on
Overcoming ‘peripherality’
through:
> Linking researchers and
woodland owners through
webinars
> Provision of workshops and
‘demonstration woodlands’ for
woodland owners to increase
awareness of:
- woodland potential
- need to increase woodland’s
‘climate readiness’
-resilience to pests and diseases
> Maintain and extend an up to
date set of case studies of
woodfuel installations (across
the range) including ones using
wood from their own or local
45
E.g. Cordiale toolkit http://www.tamarvalley.org.uk/projects/cordiale-woodfuel/
SW Energy Centre Report on Devon Woodfuel Potential, July 2014. The report notes that lack of a developed independent trade body to promote the many benefits of
woodfuel systems including financial returns (see para 28.1). Also SW Regen ‘Ready for Retrofit Supply Chain Study’ October 2014 identified lack of customer awareness of
retrofit opportunities as a barrier to growth. The report notes that micro-renewable heat measures – for example heat pumps and small biomass boilers represent 36% of
the annual £1100m annual turnover in the domestic retrofit market.
46
21
the risks of local flooding
engaging with private and
public sector to maximise
benefits of trees planted
properties
> Develop a series of sector
champions or ‘friends’ who are
happy to host visits or discuss
successes with potential
referrals (widely used in other
sectors)
> Build links with tourism and
related sectors to explore
opportunities for local wood
use and promotion – e.g. locally
produced charcoal in
restaurants and campsites
22
5. Delivery and costs
With strategic support from the Forestry Commission, Confor (Confederation of Forest
Industries) and Devon and Somerset County Councils, The HoTSW Forestry Task and Finish
Group and Local Nature Partnership will agree an Accountable Body to manage the Plan and
ensure deliverables are met. The delivery team will consist of a Programme Manager,
Sector Coordinator, and a number of contracted specialist advisors (equivalent to three fulltime) with appropriate expertise in managing the resource, opening up markets, and
providing sector specific business and technical support.
The Plan will be delivered across the whole HoTSW region with specific areas of
opportunities and established networks, such as the North Devon Biosphere Reserve,
National Parks, AONBs and Nature Improvement Area, acting as pilots to model the benefits
of initiatives, such as concentrated growth in wood fuel supply to service new district
heating systems to housing development in Barnstaple.
A limited revenue cost of £850,000 is required to deliver this coordinated Plan and produce
a target £5 million investment in the sector:
Expenditure:
Cost activity
staff resource
Project Manager
Sector Coordinator
Advisor
Advisor
Advisor
Mileage and expenses
Training (incl venue, refreshments,
etc)
Marketing - products
Marketing - brand developments
FTE
0.5
1
1
1
1
4.5
£
annual
years
cost
employed
25000
32000
28000
28000
28000
9000
£
total cost
5
5
5
5
5
5
125,000
160,000
140,000
140,000
140,000
45,000
30,000
40,000
30,000
850,000
It is hoped the Plan will benefit, in part, from the £1 million fund for LEP supported forestry
schemes announced in the Chancellor’s March 2015 Budget. Additional funding will be
levered from the Countryside Stewardship scheme (for resource and primary processing
23
investments), Rural and Urban Community Energy Funds (stimulating local energy markets
through community-owned renewable energy schemes), National Apprenticeship Service
(apprenticeship core training), the LEADER programme (small scale local productivity), and
Horizon 2020 (research activities).
Private investment will match this commitment, both from the sector itself and through
creating mechanisms amongst other local businesses and communities for ‘green’
investment in woodland infrastructure and environmental goods, such as ‘1% for your
planet’ schemes. Private investment will also be encouraged by supporting community
enterprises to crowd-fund share capital to own biomass boilers providing heat to local
buildings. These schemes generate income through Government tariffs and the sale of heat
that can be used to provide a community fund for delivering other local priorities. They also
reinvigorate communities by bringing people together with a common purpose and capture
the social value of engagement with the natural environment.
6. Deliverables
Throughout 2015-2020 the following targeted outputs and outcomes will be achieved:
Outputs
Facilitated private investment
(e.g. small scale harvesting and processing equipment, chippers
for higher quality fuel chip, loading bays, roading, value adding
and enhanced productivity equipment, marketing, skills and
business developments)
Facilitated public investment
(as above)
Jobs (FTE)
Apprenticeship placements
Facilitated supply chain collaborations
(joint ventures, community enterprises, wood fuel hubs,
cooperative management solution and routes to market)
Sector marketing products
(online platforms, case studies, promotion via digital media,
development of sector ‘champions’)
Strengthened links with research establishments
– findings disseminated in accessible format
Existing and new enterprises receiving specialist and technical
support to maximise opportunities from:
Target
£3.5 million
£1.5 million
200
50
10
10
2
100
24






computer aided design, use of digital technology
innovations, e.g. engineered timber, pyrolysis, technology
to maximise production and value adding
developing markets e.g. growth in housing, renewable
energy, higher value tourism products
new marketing innovations, e.g. online sales platforms
local and wood products branding opportunities
other new business and market opportunities
25
Individuals receiving skills, training and knowledge transfer
provision
(study tours, forums, webinars, demonstration events, business
skills, specialist marketing training, mentoring, woodland
owners advised on opportunities and future needs)
Outcomes
Gross Value Added to economy
Timber brought to market annually
Woodland into management
Hedges in favourable condition
Renewable energy sourced
New woodland created annually, including green infrastructure
150
£4,600,00047
93,275 tonnes
20,500ha
750km
186,500 MWHrs
20ha
7. Best practice and linkages
The Plan will link closely with opportunities for primary production and processing through
the Rural Development Programme’s Countryside Stewardship scheme including Woodland
Capital Grants, the Countryside Productivity Scheme, and the Farming Advisory Framework,
in addition to small grants via LEADER funding. Activities will complement, not duplicate,
grants and assistance provided via Countryside Stewardship.
Local activities will closely associate with the Grown in Britain programme, adding value at a
local level through opportunities for affiliated local branding and supply chain networks.
The Plan will support the Ward Forester enterprise – developing small woodland economics
and improving market opportunities via combined harvesting - incorporating its services to
avoid duplication.
The Plan will additionally collaborate with the following schemes
currently pending funding support:

South Devon AONB Woodfuel project - mapping the woodland/hedgerow resource, farm
audits and woodfuel workshops, local supply woodfuel hubs, community engagement;

Tamar Valley AONB woodfuel supply chain development feasibility studies – evaluating
the catchment in terms of timber, access routes, and landscape implementations;
47
200 jobs multiplied by £23,000 per job
26

Organic Research Centre SustainFARM (partners in Romania and Poland) - integrated
food and non-food systems to develop climate-resilient agro-ecosystems, adding value
to wood and ‘waste’;

The Plunkett Foundation’s support-based programme for fledgling social enterprises
establishing community woodland management ventures.
The programme also links with and builds upon the:

Forestry Commission’s £50,000 Forestry Business Support service 2014-15 delivered
nationally by the Forest Advisory Consortium England – preparing enterprises to take
advantage of opportunities via the Rural Development Programme;

Forestry Commission’s £100,000 South West Timber Business Development Programme
2013-14 – specialist technical services, consultancy, advice and training to businesses
with potential to increase the value of the regional forestry and timber industry;

FOREST Intelligent Energy Europe’s on-line best practice, guidance, and training tools;

Cordiale Interreg IVa project’s good practice guidance for hedge management for wood
fuel, case studies, biomass boiler installations, and toolkits to assess biomass volume;

North Devon Biosphere Reserve’s Forest Policy Framework and Woodland Enterprise
Zone development;

The Devon Community Energy Accelerator project, which in partnership with RegenSW
is investing £100k in supporting the community energy sector through bespoke training
and start-up grants for community enterprises progressing towards Rural and Urban
Community Energy Fund applications;

North Devon and South Devon Catchment Management Partnerships;

Devon Local Nature Partnership’s Natural Devon’s Prospectus 2014;

Partnership initiatives within neighbouring LEPs.
8. A non-funded scenario
If the requested funding is not received it is unlikely that a significant number of the planned
outputs and outcomes would happen. An amount of private investment would be made but
27
resources would not be maximised and opportunities for growth with associated rural jobs,
training opportunities and renewable products missed. With less local timber and woodfuel
available for local markets, imports are likely to fill the niche with associated increased
carbon emissions and costs and reduced local employment.
28