Plywood, Veneer and Fabricated Wood Manufacturing in Australia Industry Market Research Report now updated by IBISWorld

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The industry's performance is influenced by demand for plywood, veneer and fabricated wood from downstream industries, particularly within the housing and commercial construction sector. With weaker residential and non-residential building construction activity in 2011-12, industry revenue is estimated to decrease for the year. For these reasons, industry research firm IBISWorld has updated its report on the Plywood, Veneer and Fabricated Wood Manufacturing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Weaker residential and non-residential building construction activity will hurt industry revenue for the year

The Plywood, Veneer and Fabricated Wood Manufacturing industry in Australia is influenced by demand for plywood, veneer and fabricated wood from downstream industries, particularly within the housing and commercial construction sector. According to IBISWorld industry analyst Alen Allday, “with weaker residential and non-residential building construction activity in 2011-12, industry revenue is estimated to decrease 2.6% for the year to $1.67 billion”. Over the five years through 2011-12, industry revenue is estimated to have declined by an annualised 1.8%, with moderate fluctuations from year to year. Residential construction activity increased steadily in 2006-07 and 2007-08, largely due to high demand and the First Home Owner Grant, while commercial and industrial construction activity increased rapidly. As residential and non-residential building construction activity declined significantly in 2008-09, industry output fell. Despite increased construction activity in 2009-10, industry revenue declined due to lower output and prices. Industry output increased strongly in 2010-11 as the construction sector increased inventory levels. This is expected to be followed by a relatively large decline in 2011-12 as construction levels remain weak. Lower furniture manufacturing activity in recent years also contributed to industry declines.

In the five years through 2016-17, industry output volumes are expected to increase despite lower output forecast in 2012-13. Although industry revenue is also forecast to decline in 2012-13, industry revenue is forecast to increase as growth returns from 2013-14. “The outlook for the industry depends on downstream demand from the construction sector in Australia and other wood product manufacturing industries”, Allday adds. Future demand for the industry's products is expected to be low due to major housing price increases in recent years and uncertainty surrounding future interest rate rises and economic conditions.

Over the past five years, the level of market share concentration in the Plywood, Veneer and Fabricated Wood Manufacturing industry increased, with several major players expanding their operations and increasing market share. Dozens of other small and medium-size producers operate within the industry. Market share concentration is expected to increase slightly over the next five years due to further merger activity by the largest companies in this industry, and with other firms expected to exit the industry, particularly exporting companies. The largest firms in this industry are also expected to continue to expand operations into new geographic regions, and with new wood products. The four largest companies in the industry are Fletcher Building Limited, Building Supplies Group Holdings Pty Limited, Boral Limited and Gunns Limited.

For more information, visit IBISWorld’s Plywood, Veneer and Fabricated Wood Manufacturing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Firms in this industry purchase raw material hardwood and softwood from sawmills and timber resawing and dressing processors and transform it into plywood, veneer, particleboard, chipboard and other fabricated wood boards, timber laminates and non-timber materials like decorative plastic laminates. These products are sold to housing and commercial construction companies and contractors, wooden structural component manufacturers, furniture makers, distributors and export markets.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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