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 - Starting a New Business Chapter
Entry barriers to the industry are significant for firms looking to become major players, and range from access to 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 most of these inputs. Foreign competition is strong, so 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.
Stable plantation volumes for both hardwood and softwood timber could potentially limit log availability volumes over the next five to 10 years. However, the rise in farm forestry has also provided new opportunities... purchase to read more