Industry Analysis & Industry Trends
Trading conditions in the Log Sawmilling industry have been volatile over the past five years. Industry revenue followed a downward trend until 2012-13 due to weak housing construction activity and declining sawn wood prices. A subsequent recovery in housing construction activity and sawn wood prices from 2013-14 onwards has contributed to an upturn in industry revenue in the second half of the five-year period. Overall, industry revenue is expected to decline by an annualised 4.4% over the five years through 2015-16, to reach $1.05 billion. After double digit falls in industry revenue in 2011-12 and 2012-13, the 2.0% decline expected in 2015-16 represents an improvement in the industry's performance... purchase to read more
Industry Report - Industry Key Buyers Chapter
Traditionally, most industry enterprises have been hardwood mills operating on a small scale. However, the structure of the industry has evolved over the past five years, with vertically integrated forest product companies developing new mills based on plantation softwood. These mills are technologically advanced and capital-intensive. The industry's major players have gained market share over the past five years, utilising spare capacity to take advantage of a recovery in trading conditions for the industry from 2013-14 onwards.
The top four players are estimated to account for 24.3% of industry revenue in 2015-16. With the exit of Gunns and Elders from the industry in 2011-12 and 2012-13, market share concentration has declined significantly... purchase to read more