As demand from construction markets and furniture manufacturers picks up, industry revenue will expand.
New York, NY (PRWEB) June 28, 2014
The Millwork industry manufactures products like wooden windows and doors, and wooden flooring products, as well as specialized lumber cutting. These products are typically used in construction and furniture manufacturing; as such, industry revenue largely depends on demand from these two downstream sectors. “The five years to 2014 began with the industry at rock bottom at the end of 2009,” according to IBISWorld Industry Analyst Omar Khedr. Starting from this low, the recovery in construction and manufacturing activity is expected to cause industry revenue to grow an annualized 2.3% to $5.3 billion in the five years to 2014, including a 10.7% growth in 2014.
With industry revenue recently recovering, many smaller enterprises that left the industry earlier are returning to the industry. As a result, the number of industry establishments is expected to increase an annualized 1.9%, totaling 1,778. As downstream demand picked up and operators entered the market, the industry's workforce has also increased, growing at an annualized 0.7% in the past five years to 36,837 workers.
“Despite these positive developments, the Millwork industry has also been challenged by rising competition from wood substitute products,” says Khedr. Windows and door frames made of fiberglass, aluminum, steel, and vinyl have become increasingly popular due to their durability and lower price tags. Vinyl, a low-cost alternative to wood windows and doorframes, is one of the fastest growing products in the window frame market according to Window and Door magazine.
In the five years to 2019, the industry is expected to continue along the same trajectory. Construction activity in both Canada and the United States, a main source for industry exports, will continue growing and lead to an increase in demand for industry products. In addition, the Canadian dollar is expected to depreciate, making industry products more affordable in export markets, such as the United States. As a result, IBISWorld anticipates that exports will increase sharply, boosting revenue growth.
For more information, visit IBISWorld’s Millwork in Canada industry report page.
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IBISWorld industry Report Key Topics:
This industry manufactures hardwood and softwood cut stock and dimension stock timber (lumber and worked wood products cut or shaped into specialized sizes); wood windows and doors; and other millwork, such as wood flooring. These reshaped wood products are mainly sold to housing and other building construction industries and their contractors, as well as to wood product distributors.
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