Lumber Wholesaling in the US Industry Market Research Report from IBISWorld has Been Updated

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Over the next five years, commercial and residential building construction will likely rebound, benefiting lumber wholesalers and boosting demand for wholesaled lumber used in construction. For these reasons, industry research firm IBISWorld has updated a report on the Lumber Wholesaling industry in its growing industry report collection.

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Growth in construction will boost industry demand, despite rising competition

The Lumber Wholesaling industry sells lumber, plywood, engineered wood products, door and window frames, wood floors, paneling, roofing and other millwork products to contractors in the residential, commercial and industrial construction markets, and to hardware and home improvement stores. “Residential construction is the largest source of demand for lumber wholesalers,” says IBISWorld industry analyst Sean Windle. “Therefore, with the collapse of the housing bubble in 2007 and subsequent recession, demand for industry products fell significantly.” From 2008 to 2013, revenue is expected to decline at an average annual rate of 2.0% to $83.5 billion. With recent renewed growth in the housing sector, however, demand for industry products has begun to increase. Consequently, revenue is expected to rise 7.5% in 2013.

Despite this recent growth, profit margins for the average lumber wholesaler have remained stagnant. Profitability declined during the recession, but is expected to experience an uptick in 2013, thanks to strong demand and strong growth in lumber prices. “Falling profit margins and fewer sales forced some operators to exit the Lumber Wholesaling industry,” adds Windle. IBISWorld expects the number of industry enterprises to fall at an average annual rate of 0.5% to 5,895 over the five years to 2013. With less participation, employment also declined, falling an average 2.9% per year over the same period to 118,911 workers. The industry has a low level of market share concentration and is highly fragmented, as it is composed of mostly small and medium-size operators. Nevertheless, market share concentration has been on the rise over the past five years, as larger companies partake in acquisition activity.

Over the next five years, the Lumber Wholesaling industry is expected to benefit from a strong recovery in the construction sector. From 2013 to 2018, revenue is projected to rise. Contributing to this growth will be expected increases in new home construction as well as commercial and industrial construction, both of which will be fueled by low interest rates and improving economic conditions. Nevertheless, lumber wholesalers will face increasing competition over the next five years from substitute products, such as concrete, aluminum, steel, fiberglass and vinyl. For more information, visit IBISWorld’s Lumber Wholesaling in the US industry report page.

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IBISWorld industry Report Key Topics

This industry distributes a range of lumber, plywood, millwork and wood panel products to contractors, home improvement stores and hardware stores. The industry does not include wholesalers that distribute nonwood roofing and siding materials, nor does it include establishments that distribute timber and timber products such as railroad ties, logs, firewood and pulpwood.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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