Timber trouble: Weaker demand conditions have reduced revenue over the past five years

IBISWorld’s Timber Wholesaling 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.


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

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    Industry Analysis & Industry Trends

    The Timber Wholesaling industry has endured difficult trading conditions over the past five years. Increasing incidence of wholesale bypass and substitution for non-wooden manufacturing and building materials have contributed to industry revenue declining over the past five years. 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 projected to fall 6.1% in 2016-17, largely due to the December 2016 exit of Woolworths and the expected decrease of residential building construction demand...

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    Industry Report - Industry SWOT Analysis Chapter

    The Timber Wholesaling industry is in the decline stage of its life cycle. The industry is vulnerable to wholesale bypass. The structure of industry ownership is changing, as timber manufacturers set up their own wholesaling operations to deal directly with clients. Furthermore, enterprise and establishment numbers have decreased over the past five years due to the exit of Woolworths’ industry-specific operations in December 2016 and the continued expansion of Wesfarmers’ industry-specific operations. Wesfarmers’ continued market dominance has forced out many local timber wholesalers.

    Industry value added (IVA) measures an industry’s contribution to the economy. IVA is forecast to increase at an annualised 1.1% over the 10 years through 2021-22. By ..

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    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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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Demand from heavy industry and other non-building construction

  • 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

  • Products & Markets
    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
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent, depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Timber Wholesaling

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

  • Industry Globalization
    Major Companies
    Wesfarmers LimitedGunnersen Pty Ltd
  • Table: Wesfarmers Limited - financial performance
  • Table: Gunnersen Pty Ltd - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Timber Wholesaling Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
  • 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.
  • Why buy this report?

    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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