Industry Analysis & Industry Trends
Over the five years through 2014-15, production within the Log Sawmilling industry has decreased, with particularly large falls in 2010-11 and 2011-12, as downstream demand declined, particularly from housing construction. Demand for sawn wood generally follows housing construction cycles. The housing construction sector represents Australia's largest final timber purchaser, together with demand from timber resawing and dressing companies. Over the five years through 2014-15, industry output is estimated to decrease by an annualised 1.3%, generally in line with declines in demand from housing construction. Industry revenue is expected to decrease by an annualised 3.4% over the same period.
IBISWorld expects that during 2014-15, the industry will record revenue of $1.2... 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 2014-15, depreciation is estimated to account for 3.6% of industry revenue, with wages estimated at 19.6%. Therefore, for every $1.00 invested in capital plant and equipment, approximately $5.44 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