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 - Starting a New Business Chapter
Entry barriers to the industry are moderate for firms looking to become major players, and range from the reliable access of timber resources to the substantial capital required to build a large modern sawmill. Reliable wood supply contracts are difficult to establish, since the incumbent major players control a high proportion of these inputs. As foreign competition is strong, new entrants must compete on price and quality in order to make a significant impact on the market. Otherwise, a small, regional niche market may be considered an optimal opportunity for new companies to the industry.
Economies of scale are important for the industry, which can hinder the growth of a new firm... purchase to read more