Industry Analysis & Industry Trends
The Fabricated Wood Manufacturing industry has suffered over the past five years due to subdued demand from downstream construction industries and manufacturers. Industry revenue is expected to fall at an annualised 3.1% over the five years through 2015-16, to reach $1.4 billion. Falling production of particleboard, medium-density fibreboard (MDF), timber veneers and plywood over this period has contributed to the industry's declining revenue. Industry operators are expected to produce 1.5 million cubic metres of these products in 2015-16, down from 1.7 million cubic metres in 2010-11. Weaker demand from residential building construction markets is also set to contribute to a 1.7% drop in revenue in 2015-16... purchase to read more
Industry Report - Industry Investment Chapter
A medium level of capital intensity characterises the industry. In 2015-16, for every dollar spent as wages, an estimated $0.23 is invested in capital. Larger manufacturers tend to be more capital-intensive and invest in automated machinery and equipment. These firms can therefore benefit from greater economies of scale, which decreases their marginal costs and increases profitability.
Automated processes and computerised manufacturing techniques allow wood products to be cut to exact user specifications with reduced error rates. Depending on company size, skilled employees are required to operate machinery and equipment, supervise production, cut products to size, apply adhesives to wood veneers, and complete other managerial tasks... purchase to read more