Weak growth: Reduced total plantation area has stifled demand for industry services

The Forestry Support Services industry provides plantation, maintenance and research services to the forestry sector. Demand for forestry services has grown sluggishly over the past five years from a low base in 2012-13. Weak demand growth has been due to fewer plantations being established, reduced native forest logging and a weaker economic climate. These factors have reduced demand for reforestation, plantings, maintenance and pest control services. Plantation area increased strongly each year through the 2000s, but has since stalled due to the collapse of forestry managed investment schemes. Australia's total plantation area decreased from 2.01 million hectares in 2012-13 to 1.97 million hectares in 2015-16 (latest available data)...read more.

Industry Statistics & Market Size
Revenue
$344m
Annual Growth 13-18
1.2%
Forecast Growth 18-23
Profit
Employment
2,391
Businesses
975
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Demand for forestry services has grown sluggishly due to reduced native forest logging
  • Research and conservation services have risen as a share of industry revenue
  • The continued weakness of the Australian dollar is projected to support timber demand
  • Industry Report - Industry Investment Chapter

    The industry has a low capital intensity level. For every dollar spent on wages, an estimated $0.09 will be spent on capital equipment in 2017-18. Forest research and consulting is labour intensive, with most of these operations requiring little more equipment than a typical office. Forest maintenance is also fairly labour intensive, with planting, thinning, and pruning typically conducted by hand. For large projects, the use of specialist machinery may be economical. Falling industry demand over the past five years has limited new capital expenditure by industry operators. This has led to decreasing capital intensity...purchase to read more.

    Additional Insights for the Forestry Support Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Forestry Support Services Industry are

  • Having contacts within key markets
  • Market research and understanding
  • Having a high prior success rate (including completed prior contracts)
  • IBISWorld analysts also discuss how external factors such as Availability of plantation trees and Demand from forestry and logging in the Forestry Support Services industry impact industry performance..

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    What's in this report

    What is the Forestry Support Services Industry?

    Industry companies services such as forest reafforestation, conservation or plantation maintenance on a fee or contract basis. The industry also includes companies that operate forest nurseries and provide forestry research and consultancy services.

    Industry Products
  • Forest establishment services
  • Forest maintenance services
  • Forest research and consulting services
  • Industry Activities
  • Forest conservation services
  • Forest nursery operation
  • Forestry economics consulting and research services
  • Forest science research services
  • Growing nursery stock and seedlings for forests
  • Ground preparation and forest planting services
  • Silviculture contracting and reforestation services
  • Timber plantation and tract maintenance
  • Tree pruning and thinning services within forests
  • Weed and pest control services within forests
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Availability of plantation trees
  • Demand from forestry and logging
  • Demand from wood product manufacturing
  • Public concerns over environmental issues

  • Current Performance
  • Forest plantings
  • Profit trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue forecast
  • Plantation buybacks
  • Profit and employment
  • Environmental consciousness
  • Table: Forestry Support Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Forestry Support Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Forestry and Logging

  • Key Selling Industries
  • Industrial and Agricultural Chemical Product Wholesaling
  • Nursery Production
  • Trailer and Caravan Dealers

  • Products & Services
  • Forest research and consulting services
  • Forest maintenance services
  • Forest establishment services
  • Chart: Forestry Support Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Government
  • Forestry companies
  • Wood product companies
  • Primary producers
  • Chart: Major Market Segmentation for the Forestry Support Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Forestry Support Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Forestry Support Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Forestry Support Services 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 Support Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Agroforestry
  • Growing trees for wood production and other agricultural pursuits.
  • Hectare
  • An area of 10,000 square metres, or 100 by 100 metres. There are 100 hectares in a square kilometre.
  • Native Forests
  • Indigenous forest types. The great majority of Australian forests are eucalypti.
  • Silviculture
  • Includes methods for maintaining and controlling forests, including the establishment and management of forest locations.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Forestry Support Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Support Services:
    • 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 Support Services 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 Support Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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