An indicator of the shift in the building materials market: wood fiber specialist STEICO has exceeded its own earnings forecast, thereby confirming growing demand for wood fiber insulation and structural wood-based materials. The development is exemplary of the structural transformation in the construction sector, in which renewable raw materials are increasingly substituting mineral building materials – particularly in multi-story residential construction and energy-efficient renovations.
While the overall building materials market in Germany faced pressure in 2024, manufacturers like STEICO benefit from regulatory requirements for CO₂ reduction and growing acceptance of cross-laminated timber (CLT) and timber frame building systems. The above-average performance suggests that planners and developers are increasingly opting for materials with favorable EPD balances – a trend also manifested in the rising number of certified timber high-rises.
STEICO positions itself as an integrated provider along the timber construction value chain: from insulating wood fiber boards with λ-values between 0.038 and 0.046 W/(m·K) to structural elements for load-bearing applications. This diversification enables the company to benefit from both new construction and energy-efficient renovation, where wood fiber insulation materials are increasingly replacing mineral wool and synthetic insulation materials.
The positive business development contrasts with the situation of other building materials manufacturers: while cement and concrete producers struggle with declining volumes and high CO₂ costs, timber construction specialists are opening up new market segments. Planners should note that increased demand for certified wood-based materials is increasingly affecting delivery times and availability – a factor that must be considered when tendering multi-story timber construction projects.
Market developments at STEICO correlate with growth in the timber high-rise segment in the DACH region: according to industry associations, the share of multi-story timber constructions in residential apartment construction rose to over 23 percent in 2024. This structural shift is accelerated by stricter requirements for overall energy balance according to the GEG and municipal regulations on timber construction quotas – regulatory tailwinds that should support the performance of timber building material manufacturers in the medium term.
For product managers and procurement specialists in the building materials trade, the STEICO announcement signals that investments in storage capacity for timber building materials are worthwhile. The combination of sustainability requirements, technical maturity of systems, and growing planner confidence creates a stable growth environment – even though price volatility in sawn timber as a raw material remains a risk factor.
