Wood Panelling Manufacturing in Canada Industry Market Research Report Available from IBISWorld
New York, NY (PRWEB) February 06, 2015 -- The Wood Panelling Manufacturing industry manufactures products like plywood, veneer, medium-density fibreboard (MDF), oriented strand board and particleboard. These products are typically used in construction and furniture manufacturing; consequently, industry revenue largely depends on demand from these two downstream sectors. “The industry hit close to rock bottom following a collapse of the North American housing market during the recession,” according to IBISWorld Industry Analyst Antal Neville. Before the five years to 2015, a multi-year decline in construction activity led industry revenue to fall for five straight years and industry profit margins to drop into the red. Coming from this low, the slow-moving recovery in construction and manufacturing activity is expected to lead to an annualized 1.8% growth in industry revenue over the five-year period, including a 2.2% increase to $5.5 billion. Profit margins have also increased in the past five years.
While industry revenue is growing, it is also increasingly composed of larger companies, many of which are vertically integrated. “Consolidation has increased as small players have succumbed to unfavourable market conditions and left the industry,” says Neville. As a result, the number of industry enterprises has declined an annualized 2.8% to 357. Meanwhile, demand rose and the industry's workforce expanded to keep pace; employment is estimated to increase an annualized 1.1% to 18,305 workers during the five-year period.
In the five years to 2020, 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 rebounding and lead to increased demand for industry products. Furthermore, the Canadian dollar is expected to remain weak compared to the US dollar, making industry products more affordable for US buyers. As a result, IBISWorld anticipates that exports will continue to rise rapidly. Nevertheless, construction is not expected to experience the same increase as in the past five years, and the price of wood products is not expected to rise dramatically.
For more information, visit IBISWorld’s Wood Panelling Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
The industry manufactures veneer or plywood, engineered wood or reconstituted wood products. The industry does not include companies that primarily engage in sawmilling or wood preservation, nor does it include companies that primarily produce dimensions stock.
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 and Canadian 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 http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
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