Log Sawmilling Industry Market Research Report Now Updated by IBISWorld

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A resurgence in the housing construction market is expected to help the Log Sawmilling industry return to growth in the next five years. For this reason, industry research firm IBISWorld has updated its report on the Log Sawmilling Industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Growth is anticipated to strengthen as the housing construction market starts to expand again.

Production within the Log Sawmilling industry has decreased over the five years through 2013-14, with a particularly large fall in 2010-11 as housing construction levels dropped significantly. According to IBISWorld industry analyst Alen Allday, “Sawn wood demand generally follows the cycles of the housing construction sector, which is Australia's largest timber purchaser.” Over the five years through 2013-14, output volumes are estimated to have decreased an annualised 1.9%, with revenue expected to decrease at an annualised 6.0%.

IBISWorld estimates that during 2013-14, the industry will record revenue of $1.2 billion, up 3.8% for the year. This is expected as sawn wood volumes increase and demand for wood products rises due to growth in housing construction activity for the year. Increased demand from house construction and other related industry leads to greater use of timber in housing frames, windows and doors, which drives growth in sawlog levels from the industry. “Demand from wood furniture manufacturers for wood is only expected to increase slightly for the year and will not be a major demand driver,” says Allday. The industry exhibits a low level of market share concentration. Major players include Building Supplies Group Holdings Pty Limited, Boral Limited and Hyne & Son Pty Limited.

Competing log imports account for a moderate proportion of domestic demand at a forecast 14.6% in 2013-14, down from over 20.0% a decade earlier. The import decline as a proportion of domestic demand is due to the increased use of plantation forests in Australia over the past decade, despite plantation planting levels slowing in the past five years. Low import growth and higher exports are forecast in future years as domestic plantation log numbers increase. For the five years through 2018-19, Log Sawmilling industry revenue is expected to increase at a low but steady rate. Growth is anticipated to strengthen as the housing construction market starts to expand again after several years of declines and low growth.

For more information, visit IBISWorld’s Log Sawmilling Industry in Australia industry report page.

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

IBISWorld industry Report Key Topics

Log sawmills produce rough sawn timber, sleepers, palings, scantlings and resawn timber from logs sawn at the same mills. This industry also includes chemical preservation of rough timber or logs produced in the same establishment.

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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