British sawmills increased production by 5% in 2016 to £3.6 million m3. The increase was largely driven by sawmills in Scotland and England, however Wales, a smaller producer of lumber, increased production by 13%. Demand for imported softwood timber has decreased due to the effects of the winter season and the uncertainties over Brexit (leading to sterling weakness). Whilst residential building activity remains brisk, demand for construction timber remains at a comparatively high level. This bodes well for forest owners supplying the UK sawmills as their timber will continue to be in demand into 2018.