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 - Starting a New Business Chapter
Medium barriers to entry characterise the industry and these barriers have remained steady over the past five years. One of the main entry barriers in the industry is the initial capital requirements needed to purchase machinery and equipment. The industry has moderate capital intensity requirements and any new entrant seeking to operate on a large scale would be required to invest in state-of-the art technology to compete on price, output volumes and product quality.
Access to extensive management skills, in-depth industry knowledge and sound market intelligence is also essential for potential entrants... purchase to read more