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 SWOT Analysis Chapter
Due to flat growth in housing construction levels resulting in weaker sawn wood demand, industry revenue and value added have declined in the past five years. Further, in the decade through 2018-19, industry value added is estimated to decline an annualised 2.3%. This value added decline is unfavourable compared to real estimated GDP growth of around 2.6% annually during the same period. However, with a recovering housing market in future years, the Log Sawmilling industry may move from the decline phase of its life cycle to a mature phase during the five-year period through 2018-19 as sawn wood demand increases.
Sawn wood production declined in the five years through 2013-14 at an estimated annualised 1.9% due to low housing construction levels and weaker log demand... purchase to read more