Not out of the woods: Unsteady demand and substitute competition chip away at revenue

The Prefabricated Wooden Building Manufacturing industry is one of the smallest in Australia's Manufacturing division. Over the long term, the industry's products have steadily lost ground to substitute products manufactured using metal, PVC and cement-fibre building materials. Prefabricated metal building products have captured the largest share of the mining, resources and infrastructure markets. These products also have an increasing presence in the household building market, particularly prefabricated metal garden sheds and carports. However, the industry continues to hold a leading position in the household, recreation and backyard building markets. Industry firms manufacture products such as granny flats, cubby houses, kit homes, kennels and pergolas for these more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Fluctuating demand conditions have led to a volatile revenue performance and industry exits
  • Strong product substitution and fierce internal competition have reduced profit margins
  • The industry’s short-term prospects will likely mirror falling residential construction activity
  • Industry Report - Industry Key Buyers Chapter

    The industry has a low market share concentration. The industry's four largest manufacturers are estimated to account for less than 20.0% of total revenue in 2018-19. The industry is highly fragmented, with many small-scale firms manufacturing a diverse range of buildings for a variety of markets. These operators heavily rely on demand from geographically dispersed households, which further contributes to the industry's fragmented nature.Only a handful of enterprises in the industry currently employ 20 or more people. Approximately 42.2% of enterprises have no paid employees and mainly comprise sole proprietors and partners. A similar share of businesses generate annual revenue of less than $200,000, while about 18.8% of companies generated more than $2 million. Ove...purchase to read more.

    Additional Insights for the Prefabricated Wooden Building Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Prefabricated Wooden Building Manufacturing are:

  • Having a high profile in the market
  • Economies of scope
  • Access to a highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Demand from residential building construction and Real household discretionary income in the Prefabricated Wooden Building Manufacturing industry impact industry performance..

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    What's in this report

    What is the Prefabricated Wooden Building Manufacturing Industry?

    Industry firms primarily manufacture prefabricated wooden buildings such as carports, gazebos and sheds. The industry also includes firms that install these prefabricated buildings on site.

    Industry Products
  • Basic household buildings and structures
  • Kit homes and other household buildings and structures
  • On-site building installation
  • Industry Activities
  • Prefabricated wooden building
  • Prefabricated wooden bus shelter
  • Prefabricated wooden shed
  • Prefabricated wooden kit home
  • Prefabricated wooden carport and garage
  • Prefabricated wooden gazebo and pergola
  • Prefabricated wooden cubbyhouse and fort
  • 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 residential building construction
  • Real household discretionary income
  • Demand from holiday houses, flats and hostels
  • Dwelling commencements
  • Demand from non-residential building construction
  • Mortgage affordability

  • Current Performance
  • Revenue growth
  • Profit conditions tighten
  • Household demand
  • Other developments
  • Chart: Revenue Growth

  • Industry Outlook
  • Moderate revenue growth
  • Profitability narrows
  • Construction markets
  • Household demand
  • Table: Prefabricated Wooden Building Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Prefabricated Wooden Building Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • House Construction
  • Commercial and Industrial Building Construction
  • Caravan Parks and Camping Grounds
  • Holiday Houses, Flats and Hostels
  • Consumers

  • Key Selling Industries
  • Glass and Glass Product Manufacturing
  • Plaster Product Manufacturing
  • Ready-Mixed Concrete Manufacturing
  • Timber Resawing and Dressing

  • Products & Services
  • Kit homes and other household buildings and structures
  • Basic household buildings and structures
  • On-site building installation
  • Chart: Prefabricated Wooden Building Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households (direct sales)
  • Households (online sales)
  • Hardware wholesalers and retailers
  • Recreation and holiday markets
  • Non-residential building markets
  • Chart: Major Market Segmentation for the Prefabricated Wooden Building Manufacturing 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 Prefabricated Wooden Building Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Prefabricated Wooden Building Manufacturing 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 Prefabricated Wooden Building Manufacturing 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 Prefabricated Wooden Building Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Computer-Aided Design (Cad)
  • The use of computers in design applications, allowing the designer greater flexibility to formulate projects on-screen.
  • Computer-Aided Manufacturing (Cam)
  • The use of computer software to control machine tools and related equipment during manufacturing processes.
  • Flat-Pack
  • Prefabricated building products sold in pieces that are packed flat in a box for easy transport and customer assembly.
  • Granny Flat
  • A secondary or separate dwelling that is situated on the property of a traditional house.
  • Prefabricated Buildings
  • Buildings or building sections that are manufactured in a factory, which are then assembled on site.
  • Relocatable Buildings
  • Buildings that can be readily transported to meet customer demand.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Prefabricated Wooden Building Manufacturing 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
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    This report on Prefabricated Wooden Building Manufacturing:
    • 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 Prefabricated Wooden Building Manufacturing 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 Prefabricated Wooden Building Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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