Resawn: The industry has substantially restructured as many smaller firms have exited

The Log Sawmilling industry has strongly grown over the past five years. Stronger demand for timber products in the house construction market, and the depreciation of the Australian dollar, which has made local sawnwood products more competitive in export markets, have supported the industry's expansion over the period. The development of new wood-based building products with wider applications has also supported the industry's expansion over the past five years by boosting industry products' competitiveness with steel and other substitute building materials.Industry revenue is expected to increase at an annualised 4.6% over the five years through 2018-19, to reach $1.8 billion. However, this includes an expected revenue decline of 2.4%...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
4.6%
Forecast Growth 19-24
Profit
Employment
4,812
Businesses
646

Industry Threats & Opportunities

  • The development of new wood-based building products with wider applications has supported growth
  • Greater merger and acquisition activity has contributed to a reduction in enterprise numbers
  • The forecast cyclical recovery of house construction activity will boost downstream demand
  • Industry Report - Starting a New Business Chapter

    Entry barriers to the industry are moderate for new sawmilling firms. Barriers include securing reliable access to timber resources and acquiring the substantial capital required to build a large modern sawmill. Reliable wood supply contracts are difficult to establish since the incumbent major players control a high proportion of these inputs. Due to strong foreign competition, new entrants must compete on price and quality to make a significant impact on the market. Alternatively, small and regional niche markets may provide optimal opportunities for new companies to enter the industry.Economies of scale are important for sawmilling firms, which can hinder the growth of a new firm. Lar...purchase to read more.

    Additional Insights for the Log Sawmilling Industry

    IBISWorld has determined the most important Key Success Factors for the Log Sawmilling 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..

    shopping_cartPURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    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
  • Chart: Revenue Growth

  • Industry Outlook
  • 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
  • Mining and Industrial Machinery Wholesaling

  • 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
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Rent and utilities
  • Other
  • 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, Hyne & Son Pty Limited, Associated Kiln Driers Pty Limited,
  • Table: Timberlink Australia Pty Limited - financial performance
  • Table: Hyne & Son Pty Limited - financial performance
  • Table: Associated Kiln Driers 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 (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)
  • Sawnwood production volume (2010-2024)

  • 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.
  • 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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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.

    Contact Us

    Want to speak to a representative? Call us.

    clear