Fallen timber: Increasing wholesale bypass has contributed to revenue declines

The Timber Wholesaling industry has endured difficult trading conditions over the past five years. Increasing wholesale bypass and substitution for non-wooden manufacturing and building materials have contributed to industry revenue declining over the period. Industry operators supply a range of products, including structural timbers, dressed wood panels, plywood products and veneers. The industry's markets include builders, manufacturers, retail hardware chains, independent hardware stores and garden supply centres. Industry revenue is expected to fall by 5.8% in 2017-18, largely due to an anticipated decrease in residential building construction demand.Timber wholesalers have lost market share to alternative building materials such as steel...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
-1.2%
Forecast Growth 18-23
Profit
Employment
7,557
Businesses
1,046

Industry Threats & Opportunities

  • Wholesale bypass and material substitution have contributed to revenue declines
  • The industry has undergone significant consolidation and structural changes
  • Demand from residential and non-residential building construction is forecast to be steady
  • Industry Report - Starting a New Business Chapter

    The industry is characterised by moderate barriers to entry. These barriers are stronger for small operators due to long-term supply contracts used by incumbent wholesalers. New industry players need to secure supply contracts from upstream industries, which can be a significant barrier to entry. Small potential entrants will likely struggle to develop relationships with large upstream companies that have economies of scale and lower production unit costs. Failing to procure a supply contract with an efficient supplier will likely mean higher purchase costs and lower profit margins, threatening the viability of a newly established industry wholesaler.Another barrier to entry is the significant amount of initial capital expenditure required to acquire and hold the necessary stock. Oth...purchase to read more.

    Additional Insights for the Timber Wholesaling Industry

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

  • Having a good technical knowledge of the product
  • Output is sold under contract - incorporate long-term sales contracts
  • Upstream vertical integration (ownership links)
  • IBISWorld analysts also discuss how external factors such as Demand from residential building construction and Demand from non-residential building construction in the Timber Wholesaling industry impact industry performance..

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    What's in this report

    What is the Timber Wholesaling Industry?

    Industry operators wholesale sawn timber and other wood products to retailers such as hardware stores, commercial and residential construction companies, carpenters and furniture manufacturers.

    Industry Products
  • Hardwood and particle board timbers
  • Carpentry and joinery timbers
  • Plywood and veneer timbers
  • Other timber products
  • Industry Activities
  • Plywood wholesaling
  • LVL, LSL, glulam and I-beam products
  • Veneer wood wholesaling
  • Particle board wholesaling
  • Dressed timber wholesaling
  • Rough sawn timber wholesaling
  • Wood panel wholesaling
  • General timber hardwood and softwood dealing (except firewood)
  • 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
  • Demand from non-residential building construction
  • Demand from wooden structural component manufacturing
  • Demand from wooden furniture and upholstered seat manufacturing

  • Current Performance
  • Profitability
  • Industry structure
  • Downstream conditions
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream conditions
  • Competition and industry structure
  • Profitability
  • Table: Timber Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Timber Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wooden Structural Component Manufacturing
  • Wooden Furniture and Upholstered Seat Manufacturing
  • Construction
  • Hardware and Building Supplies Retailing

  • Key Selling Industries
  • Fabricated Wood Manufacturing
  • Log Sawmilling
  • Pallets and Other Wood Product Manufacturing
  • Timber Resawing and Dressing
  • Wooden Structural Component Manufacturing

  • Products & Services
  • Carpentry and joinery timbers
  • Hardwood and particle board timbers
  • Plywood and veneer timbers
  • Other timber products
  • Chart: Timber Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential contractors and tradespeople
  • Non-residential contractors and tradespeople
  • Wooden component manufacturers
  • Retailers and general consumers
  • Furniture manufacturers
  • Chart: Major Market Segmentation for the Timber Wholesaling 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 Timber Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Timber Wholesaling Industry

  • Industry Globalization
    Wesfarmers Limited, Metcash Limited, Gunnersen Pty Ltd,
  • Table: Wesfarmers Limited - financial performance
  • Table: Metcash Limited - financial performance
  • Table: Gunnersen Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Timber Wholesaling 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 Timber Wholesaling 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
    Glulam
  • Glued laminated timber. An engineered structural product produced by bonding together a number of graded and seasoned laminates with a structural adhesive to form a solid product.
  • I-Beams
  • I-shaped engineered wood used for structural purposes. I-beams comprise a top and bottom flange of graded timber, LVL or LSL, and a vertical piece of structural plywood or oriented strand board.
  • Lvl & Lsl
  • Laminated veneer lumber and laminated strand lumber. These are engineered structural products produced by bonding wood veneers or strands with a structural adhesive to form a solid product.
  • Vertical Integration
  • The extent to which a firm owns its upstream suppliers and its downstream buyers.
  • Wholesale Bypass
  • The process through which retailers source products directly from manufacturers or importers.
  • Wood Veneer
  • A thin slice of wood that can be glued onto surfaces to produce the effect of a solid wood panel.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Timber Wholesaling 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 Timber Wholesaling:
    • 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 Timber Wholesaling 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 Timber Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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