Plastic is winning the battle against wooden pallets.
Melbourne, Australia (PRWEB) October 12, 2012
The Pallets and Other Wood Product Manufacturing industry in Australia produces a wide range of products including wooden pallets, wooden packing crates, domestic wood products, cork articles and products for use in construction. Therefore, demand for the industry's products is related to the performance of Australia's wholesaling, retailing and construction divisions, and general consumer demand. According to IBISWorld industry analyst Alen Allday, “increased competition from plastic pallets over the past five years has reduced industry revenue”. In 2012-13, industry revenue is estimated to decline to reach $825.3 million. Total industry revenue is expected to decline an annualised 6.1% over the five years through 2012-13.
Despite relatively strong retail demand in recent years, increased industry competition and substitute competition pushed growth for the Pallets and Other Wood Product Manufacturing industry in Australia significantly lower. “Manufacturers of housing-related products, including parquet floor and other carpentry articles, have also caused revenue to fall,” Allday adds. Manufacturers of some discretionary consumer items such as picture frames and wooden utensils have suffered from import competition, especially from China, with lower margins for manufacturers of these products. Industry revenue is expected to continue declining over the next five years, as plastic pallets increase in popularity, and as companies continue to recycle and repair wooden pallets, reducing demand for new timber pallets. However, a strong housing sector is expected to drive demand for some wood products. The extent of future industry declines is also expected to be due to competitive imports, with industry revenue expected to decline.
The Pallets and Other Wood Product Manufacturing industry in Australia has only a few major player. The largest player in the industry is Brambles Limited. Most firms are operated by smaller players who focus on manufacturing products for niche markets. This indicates that the industry's market share concentration level is low. A large number of firms in this industry are small, businesses that produce a narrow range of products and employ only one or two staff.
For more information, visit IBISWorld’s Pallets and Other Wood Product Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in this industry mainly manufacture wooden containers, pallets or packing cases and other cork, wood, bamboo and cane products. Firms in the industry acquire wood raw materials from fabricated wood and timber resawing or dressing manufacturers, as well as various chemicals from relevant manufacturers, to manufacture a wide range of wood products.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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