DANZER BLOG

AI is transforming industries at an unprecedented pace – and the hardwood sector is no exception. Given the unique challenges of hardwood processing, one of the key questions we at Danzer have been asking is: Can AI truly unlock new efficiencies in our field?

As an internationally operating hardwood company, we have invested heavily in technology, digitalization, and artificial intelligence over the past 15 years. Hans-Joachim Danzer, CEO of Danzer AG, has shared our observations on the current practice and practicability of AI in the hardwood industry. As an invited speaker at the 44th Winter Colloquium of the University of Freiburg, he contributed to an engaging scientific exchange centered around the question: “AI in Forestry and the Wood Industry – Hype or Game-Changer?”

Hardwood Is Valuable – and Demands the Best Processing Technology
In his introductory remarks, Hans-Joachim Danzer explained why the hardwood sector is particularly well-suited for AI-driven optimization. Two key factors make this industry stand out: Firstly, hardwood has extremely valuable raw materials. Secondly, hardwood industry is highly fragmented at all value chain steps. Thus, high costs and complex processing steps could profit from smart solutions to maximize yield. However, while AI offers enormous potential, the reality of hardwood processing is more nuanced.

The First Processing Step: Not AI-Ready Yet
One of the first steps in hardwood processing is assessing wood quality. To explore AI’s potential, Danzer operated a CT scanner for over a decade, analyzing the internal structure of logs. This firsthand experience revealed significant technical and economic limitations for CT scanning in hardwood applications.

Why CT Scanning Falls Short for Hardwood Processing

• Aesthetic qualities (grain pattern, texture, color) are not density-dependent, making CT scanning ineffective for veneer and premium lumber.
• Industrial feasibility is limited: The trade-off between high investment costs and low throughput makes CT unviable for large-scale hardwood processing.
• For sliced veneer, CT scanning lacks the necessary granularity to accurately detect decorative features.
• For lumber, implementation is impractical because existing sawmill equipment lacks the precision to execute AI-driven cutting solutions.

While AI’s impact at this stage is still limited, Danzer remains committed to tracking technological progress and exploring future applications that may one day make AI viable for the initial assessment of wood quality.
 
AI in Action: On the Way to Customer-Specific Mass Production
Where AI already proves highly valuable is in the mass production of customer-specific formats and qualities. Hans-Joachim Danzer revealed that the company has developed its own scanner, capable of detecting wood defects based on pattern recognition. This breakthrough makes quality assessments far more efficient.

Moreover, Danzer’s wood specialists have designed optimization algorithms that allow each flooring lamella to be cut into customer-specific formats and qualities – aligned with the current order book and optimized for value.

One key realization in this process: While human operators struggle with increasing product variations, AI thrives on complexity. With AI, Danzer can produce custom-fit top layers for the parquet industry, maximize raw material usage, and reduce waste – a significant contribution to our sustainability strategy.

AI in Sales: The Challenge of Digitally Representing Hardwood
At the end of the supply chain, the use of AI presents a new set of challenges, which still needs to be analyzed in more detail. Hardwood possesses qualities that easily get lost when applying a digital only strategy in sales:

• The tactile experience of hardwood is irreplaceable – No digital screen, no matter how advanced, can replicate the feeling of running your hand over a deeply grained veneer and experiencing its warmth.
• Visual limitations – Certain light reflections, depth, and richness of appearance cannot be fully conveyed through digital images.
• The emotional aspect of purchasing – Choosing a customized veneer for your home is a deeply personal and emotional experience. The process should remain inspiring and immersive.

“Perhaps for highly standardized products, digital sales could be a viable option,” concluded Hans-Joachim Danzer, hinting at the active development and testing Danzer is currently conducting. The company is gathering real customer feedback to explore how AI could refine or complement the B2B sales process.

Beyond AI: Driving Industry Progress
Innovation never happens in isolation. That’s why Danzer actively engages with the scientific community, partnering with universities, researchers, and AI experts. The discussion at the University of Freiburg was more than just an academic exchange – it also provided an opportunity to gather feedback on Danzer’s latest initiatives.

Advocating for Transparency: The “Wood4Real” Campaign
At one point during his lecture, Hans-Joachim Danzer paused for what he called a "commercial break." This humorous interlude set the stage for a serious topic: Through the "Wood4Real " campaign in Brussels, Danzer is advocating for imitation materials like chemically impregnated paper, vinyl, or melamine to be honestly labeled for what they are. The audience responded with enthusiastic applause, signaling widespread industry support for this transparency initiative.

EUDR Readiness: A Competitive Advantage
Hans-Joachim Danzer also highlighted another crucial issue: Being prepared for the EU Deforestation Regulation (EUDR) is not just compliance – it’s a competitive advantage. By ensuring full traceability and responsible sourcing, Danzer is proactively securing the industry’s future—while clearly distinguishing the wood sector from the primary drivers of deforestation: food and meat production. Hans-Joachim Danzer’s statement was met with applause from the audience again, highlighting the industry's shared commitment to sustainability and transparency.

Leading the Way Forward
By combining cutting-edge AI applications, EUDR readiness, and advocacy for industry transparency, Danzer is not just keeping up with trends – it is defining them. With its commitment to innovation, sustainability, and collaboration, Danzer is paving the way for a smarter, more sustainable, and more transparent future for hardwood.

How Your Next Hardwood Project Can Benefit From Our AI Strategy
Want to learn how Danzer’s AI-driven approach can optimize your next hardwood project? Let’s talk!

Daniel Lechner

We look forward to exploring the possibilities with you!