Steely competition: The popularity of substitute products has chipped away at industry growth

Despite some fluctuations in revenue, The Wooden Structural Component Manufacturing industry has grown significantly over the past five years. Industry firms manufacture a range of wooden structural components such as doors, windows, trusses and kitchen cabinetry. These products are mainly used in housing and building construction. Increased demand from housing and non-residential construction has boosted industry revenue over the five years through 2017-18. However, the increasing popularity of substitute products, such as aluminium windows and doors, has partly offset this growth.Housing and multi-unit development construction activity has increased over the past five years, despite a slump in 2016-17 and further likely falls in more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • External competition is expected to rise as substitute products become increasingly popular
  • The falling cost of imported inputs, such as doorknobs, locks and nails, has boosted industry margins
  • A possible reduction in timber supply could increase purchase costs over the next five years
  • Industry Report - Starting a New Business Chapter

    New entrants face low barriers as the major players hold a small share of the total market. However, major player market share is higher in most capital cities, where large-scale operations using machinery reduce unit production costs. Some companies, such as JELD-WEN and Carter Holt Harvey, have ties to overseas manufacturers. This gives them access to international innovative technologies, providing a competitive advantage.Smaller firms must implement efficient manufacturing processes, and be able to finance required machinery purchases to compete with larger firms for sales of standardised products. New firms also generally require supply contracts for timber and related wood products. As ...purchase to read more.

    Additional Insights for the Wooden Structural Component Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wooden Structural Component Manufacturing Industry are

  • Access to highly skilled workforce
  • Supply contracts in place for key inputs
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Demand from house construction and Demand from aluminium door and window manufacturing in the Wooden Structural Component Manufacturing industry impact industry performance..

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    What's in this report

    What is the Wooden Structural Component Manufacturing Industry?

    Industry companies manufacture wooden structural fittings, components for prefabricated buildings, wood-framed doors, wood-framed windows, roof trusses, wooden kitchen cabinets, wall frames and joinery. These products are used extensively in building construction, particularly for houses.

    Industry Products
  • Wooden doors
  • Wooden wall and window frames
  • Wooden roof trusses
  • Custom made built-in wooden furniture
  • Other wooden builders joinery and carpentry
  • Industry Activities
  • Wooden door
  • Wooden or wooden-framed roof truss
  • Wooden structural fittings
  • Wooden wall frame
  • Wooden wall-framed window, complete with glass
  • Wooden kitchen cabinet (and installation of the same cabinets)
  • Prefabricated wooden built-in cabinet, cupboard and shop front (except on-site fabrication)
  • Installation of prefabricated wooden built-in cabinets, cupboards and shop fronts
  • 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 aluminium door and window manufacturing
  • Demand from commercial and industrial building construction
  • Demand from structural metal product manufacturing
  • Demand from timber resawing and dressing

  • Current Performance
  • Revenue and profit
  • Product substitutes
  • Weaker industry trends
  • Low international trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profit
  • Continued substitute competition
  • Future industry trends
  • Table: Wooden Structural Component Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Multi-Unit Apartment and Townhouse Construction
  • Residential Property Operators
  • Commercial and Industrial Building Construction
  • Hardware and Building Supplies Retailing
  • Hardware Wholesaling
  • Consumers

  • Key Selling Industries
  • Mining and Industrial Machinery Wholesaling
  • Timber Resawing and Dressing

  • Products & Services
  • Other wooden builders joinery and carpentry
  • Wooden doors
  • Custom made built-in wooden furniture
  • Wooden roof trusses
  • Wooden wall and window frames
  • Chart: Wooden Structural Component Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential construction sector
  • Non-residential construction sector
  • Wholesale sector
  • Retail sector
  • Other industries and sectors
  • Chart: Major Market Segmentation for the Wooden Structural Component 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 Wooden Structural Component Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wooden Structural Component Manufacturing Industry

  • Industry Globalization
    JELD-WEN Australia Pty Limited,
  • Table: JELD-WEN Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wooden Structural Component 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 Wooden Structural Component Manufacturing Industry
  • 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
  • This wood is sourced from broadleaf trees, and is used for flooring, building products and fine paper.
  • Lvl
  • Laminated veneer lumber is an engineered wood product that is comparable to concrete, steel and timber in strength, and is used for structural components.
  • Resawing
  • The recutting of sawn wood and logs into final wood products.
  • Softwood
  • This wood is sourced from coniferous trees such as pine, and is used for furniture, building supplies, newsprint and cardboard.
  • What Our Customers Say

    Why buy this report?

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

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