Out of the woods: Despite some volatility, revenue has risen due to construction activity

The Forestry and Logging industry has generally performed well over the past five years, despite some significant revenue fluctuations. Industry revenue surged in 2014-15 and 2015-16, despite declines in other years, as increased building construction activity caused demand from timber processors to rise. Higher pricing for logs and timber also contributed to overall revenue growth over the past five years.Industry revenue is expected rise at an annualised 4.7% over the five years through 2018-19, to reach $4.5 billion. However, revenue is anticipated to fall by 2.6% in the current year, due to declines in residential building construction activity, largely flat domestic timber prices and reduced demand from local sawmills...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 14-19
4.7%
Forecast Growth 19-24
Profit
Employment
12,404
Businesses
4,216

Industry Threats & Opportunities

  • Greater output, higher prices and stronger demand have contributed to strong revenue growth
  • Profit margins have improved over the past five years, due to overall growth in timber prices
  • Anticipated higher timber prices will boost revenue growth and bolster profit margins
  • Industry Report - Industry Locations Chapter

    Although the industry’s enterprises are located in all states and territories, forests are mainly restricted to a narrow geographic zone with high and reliable rainfall. These areas include Tasmania, the south and east coasts of Victoria, coastal New South Wales and Queensland, and south-west Western Australia. New South Wales, Queensland and Victoria account for 70.4% of total enterprises, but only approximately 54% of total plantation area. This disparity is due to these states having significant open native forest acreage. Tasmania is over-represented in terms of enterprises due to its high level of forest cover and the many firms that operate small plantations in this state. The industry is highly fragmented, particularly in Tasmania...purchase to read more.

    Additional Insights for the Forestry and Logging Industry

    IBISWorld has determined the most important Key Success Factors for the Forestry and Logging are:

  • Ability to accommodate environmental requirements
  • Must hold quota
  • Automation - reduces costs, particularly those associated with labour
  • IBISWorld analysts also discuss how external factors such as Demand from log sawmilling and Demand from residential building construction in the Forestry and Logging industry impact industry performance..

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    What's in this report

    What is the Forestry and Logging Industry?

    Companies in the industry manage and log native forest and timber plantations. The industry also provides related services such as timber hewing and shaping. Forestry support services such as pest management and forest planting are excluded from the industry.

    Industry Products
  • Plantation softwood logs
  • Plantation hardwood logs
  • Forestry services
  • Native hardwood logs
  • Other forest products
  • Industry Activities
  • Firewood cutting
  • Logging
  • Pole hewing
  • Post shaping
  • Railway sleeper hewing
  • Forest timber shaping
  • Timber hewing
  • Forest product gathering
  • Forestry growing operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from log sawmilling
  • Demand from residential building construction
  • Domestic price of timber
  • Volume of wood harvested
  • Demand from wooden structural component manufacturing

  • Current Performance
  • Industry participation
  • Revenue and profitability
  • Environmental issues
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream markets and timber prices
  • Supply constraints
  • International trade
  • Table: Forestry and Logging Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Forestry and Logging Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Log Sawmilling
  • Wood Chipping
  • Timber Resawing and Dressing
  • Heavy Industry and Other Non-Building Construction

  • Key Selling Industries
  • Farm and Construction Machinery Wholesaling
  • Forestry Support Services
  • Machine Tool and Parts Manufacturing

  • Products & Services
  • Forestry services
  • Plantation softwood logs
  • Plantation hardwood logs
  • Native hardwood logs
  • Other forest products
  • Chart: Forestry and Logging Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Forest management organisations
  • Sawmilling companies
  • Timber resawing and redressing companies
  • Export markets
  • Wood chipping companies
  • Other companies
  • Chart: Major Market Segmentation for the Forestry and Logging Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Transport
  • Depreciation
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Forestry and Logging

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Forestry and Logging Industry

  • Industry Globalization
    Hancock Victorian Plantations Holdings Pty Limited, Forestry Corporation of NSW,
  • Table: Hancock Victorian Plantations Holdings Pty Limited - financial performance
  • Table: Forestry Corporation of NSW - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Forestry and Logging Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Forestry and Logging Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hardwood
  • Timber used for flooring, construction components and fine paper.
  • Hewing
  • A process that converts a log from its rounded form into a squared-off or flat piece of wood using a chainsaw or axe.
  • Managed Investment Scheme
  • An MIS is a pooling of funds in a financial investment, such as a property trust, equity trust, or agriculture scheme.
  • Softwood
  • Timber used for newsprint, tissues, cardboard, furniture and some building components.
  • What Our Customers Say

    Why buy this report?

    The Forestry and Logging market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Forestry and Logging:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Forestry and Logging market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Forestry and Logging, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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