Melbourne, Australia (PRWEB) August 10, 2014
Mixed economic conditions have closed the door on many of the companies operating in the Wooden Structural Component Manufacturing industry in Australia in the past five years. However, a window of opportunity remains for those that have survived. The industry returned to growth in 2013-14, and further growth is expected in 2014-15. The industry manufactures wooden structural components such as doors, windows, and trusses, which are used predominantly in housing and building construction.
According to IBISWorld industry analyst Alen Allday, “there has been mixed growth in housing construction over the past five years.” The downturn in economic activity created major falls in housing starts in 2010-11 and 2011-12. Stronger economic conditions and housing construction from 2012-13 contributed to industry growth in subsequent years. In 2014-15, industry revenue is expected to increase by 4.5% to $5.4 billion. Overall, industry revenue is expected to decline by an annualized 1.9% over the five years through 2014-15.
Australia's construction recovery is expected to progress at a moderate pace in the five years through 2019-20, with forecast high housing prices and household debt levels set to stifle demand. Expected steady housing growth in 2014-15 will support industry activity during these years, with “positive implications for manufacturers of wooden structural components,” says Allday. The industry has a low level of market share concentration. Major players include Building Supplies Group Holdings Pty Limited, JELD-WEN Australia Pty Limited, and Hyne & Son Pty Limited.
Substitute products made from aluminum, steel, and fiberglass are expected to increase in popularity in future years. These products have been taking market share from the Wooden Structural Component Manufacturing industry and are expected to continue to do so in the next five years. In response, wood product manufacturers have positioned themselves to stay relevant to consumers. The first step to differentiating wood products from substitutes has been marketing the visual advantages of timber over metals and plastics. Recent campaigns have promoted the environmental advantages of using timber rather than substitute products, with specific reference to issues surrounding climate change.
For more information, visit IBISWorld’s Wooden Structural Component Manufacturing industry in Australia report page.
Companies in the industry manufacture wooden structural fittings, components for prefabricated buildings, wood-framed doors, wood-framed windows, roof trusses, wooden kitchen cabinets, wall frames and joinery. These products are used extensively in building construction, particularly for houses.
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