Real Business

The recession test

International Plywood brings in 40,000 tonnes of products every month (enough to fill Wembley Stadium). These range from speciality plywoods to mass-market MDF, supplying builders and merchants throughout the UK and Europe, where the company is looking to increase its market penetration.

But the past two years have not been plain sailing. Deep recession, the decimation of the construction industry and huge volatility in the currency markets have tested Attwood and his sons to the limit.

“We had a fairly rocky period during the first part of the economic crisis,” Attwood admits. “We saw a 20 per cent drop in volume – a fairly large drop – but there’s always a natural catch-up that takes place. It’s coming back now.”

International Plywood’s extraordinary growth isn’t purely organic, though – the company acquired Panel Supplies in 2007 and has also been dabbling in currency swaps and hedging.  This has led the company’s turnover to go “off the bloody clock”, says Attwood, but he leaves little doubt that it can be a risk game. “You can make a fortune with currency or you could lose a fortune  – it’s that simple. So far, it’s helped our selling price and margins, but it could happen in reverse, too.”

Years of experience and strong nerves have seen the firm through. Attwood knows that, while the market for wooden carpet grips may decline (the world increasingly favours floor tiles), so new ones will emerge – all white vans are now, for example, lined with plywood.

The construction industry is also picking up, with the Chartered Institute of Purchasing & Supply in April reporting growth in construction for the first time since February 2008.

Attwood acknowledges that he doesn’t always play safe: “From the outside, some would say we’re reckless.” But, in the world of wood, this is a man of steel; a born risk taker. “If you’re too conservative, you just won’t make a real impact.”