Industry Analysis & Industry Trends
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. 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 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... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a medium capital intensity level. To calculate the capital intensity level, IBISWorld uses data from the industry cost structure. Depreciation is used as a proxy for capital, and wages are used as a proxy for labour. In 2013-14, depreciation is estimated to account for 3.5% of industry revenue, with wages estimated at 18.3%. Therefore, for every $1.00 invested in capital plant and equipment, approximately $5.24 is spent on labour, indicating a moderate capital intensity level.
Employment in the industry has been drastically reduced over the past decade, while investment in plant and machinery by the major players has increased. As a result, capital intensity has increased over these years, leading to rising productivity... purchase to read more