Olive branch: Sawmillers are trying to appease environmentalists by increasing plantation inputs

The Log Sawmilling industry has grown strongly over the past five years. However, this strong performance includes a period of accelerated growth in production and revenue from the deep cyclical trough in 2011-12 through to a peak in 2015-16. This expansion phase was underpinned by improved demand conditions for timber products in the house construction market, and the depreciation of the Australian dollar in 2013-14, which made local sawn wood products more competitive in export markets and against imports. The development of new wood-based building products with wider applications has also supported industry expansion over the past five years by boosting industry products' competiveness with steel and other substitute building materials...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
5.3%
Forecast Growth 18-23
Profit
Employment
5,300
Businesses
650

Industry Threats & Opportunities

  • The development of new wood-based building products with wider applications has supported growth
  • Increased M&A activity among mid-size industry firms has reduced industry enterprise numbers
  • The forecast cyclical recovery of house construction activity should boost downstream demand
  • Industry Report - Industry Investment Chapter

    The Log Sawmilling industry has a medium degree of capital intensity. While the adoption of automated production techniques is gradually lifting the level of capital intensity for most firms, labour remains the crucial input to sawn wood production. IBISWorld estimates that, on average, industry firms will allocate $4.69 on labour for every dollar spent on capital in 2017-18.Industry employment has been drastically reduced over the past decade, while investment in plant and machinery by the major players has increased. As a result, the industry's capital intensity has increased over the five-year period, leading to rising labour productivity. The...purchase to read more.

    Additional Insights for the Log Sawmilling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Log Sawmilling Industry are

  • Proximity to key markets
  • Supply contracts in place for key inputs
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Demand from house construction and Demand from timber resawing and dressing in the Log Sawmilling industry impact industry performance..

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    What's in this report

    What is the Log Sawmilling Industry?

    Industry firms operate sawmills and produce rough sawn timber, sleepers, palings and scantlings. The industry also includes resawn timber produced in the same establishments as sawmilling. Resawn timber that is manufactured after it has been sold to a specialist resawing operation is not included in the industry.

    Industry Products
  • Sawn softwood
  • Sawn hardwood
  • Sawdust and offcuts
  • Industry Activities
  • Log sawmilling
  • Ground bark
  • Shook
  • Resawn timber from logs sawn at the same establishment
  • Rough sawn timber
  • Chemical preservation of rough timber or logs sawn at the same establishment
  • 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 house construction
  • Demand from timber resawing and dressing
  • Demand from non-residential building construction
  • Domestic price of timber
  • Volume of wood harvested

  • Current Performance
  • Industry performance
  • International trade
  • Industry structure
  • Shift to plantation timber
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and participation
  • Profitability
  • International trade
  • Table: Log Sawmilling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Log Sawmilling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wood Chipping
  • Timber Resawing and Dressing
  • Timber Wholesaling

  • Key Selling Industries
  • Electricity Distribution
  • Forestry
  • Logging

  • Products & Services
  • Sawn softwood
  • Sawn hardwood
  • Sawdust and offcuts
  • Chart: Log Sawmilling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Resawn and dressed industries
  • Woodchipping and wood product manufacturers
  • Timber wholesaling companies
  • Export markets
  • Chart: Major Market Segmentation for the Log Sawmilling 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 Log Sawmilling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Log Sawmilling Industry

  • Industry Globalization
    Timberlink Australia Pty Limited, Carter Holt Harvey Building Products Pty Limited, Hyne & Son Pty Limited,
  • Table: Timberlink Australia Pty Limited - financial performance
  • Table: Carter Holt Harvey Building Products Pty Limited - financial performance
  • Table: Hyne & Son Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Log Sawmilling 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 Log Sawmilling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hardwood
  • From broadleaved trees, hardwood is often used for construction, flooring and furniture.
  • Roundwood
  • Timber that is not squared off by sawing or hewing, which can be used for poles.
  • Sawnwood
  • Wood that has been produced by sawing lengthways or profile-chipping.
  • Softwood
  • From coniferous trees, softwood is used for newsprint, tissues, cardboard, furniture, millwork and some building components. Wood types include pine, fir and cedar.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Log Sawmilling market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

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

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