Stumped: Strong exports and rising domestic timber prices have prompted early tree harvests

Operators in the Forestry and Logging industry have benefited from favourable economic conditions over the past five years. Growth in housing construction activity in Auckland and rebuilding efforts following the Christchurch earthquake have boosted domestic demand for construction timber. Additionally, strong export demand from construction markets in China, South Korea and India has resulted in high export volumes and domestic timber prices. As a result, industry revenue is expected to increase at an annualised 6.5% over the five years through 2018-19. This increase includes growth of 4.0% in the current year, with revenue anticipated to reach $6.9 billion.Industry operators have benefited from a planting boom in the early 1980s. more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Strong domestic demand and high export volumes have boosted industry revenue
  • High export demand and growth in domestic demand have strained New Zealand’s timber supply
  • Export revenue is forecast to increase due to strong construction activity in China and India
  • Industry Report - Industry Investment Chapter

    The Forestry and Logging industry has high capital intensity. For every dollar required by industry operators for wages in 2018-19, an estimated $0.64 is invested in capital plant and equipment. Logging operators are required to invest in specialised vehicles for transporting harvested logs, earth moving equipment, skidders, power saws and other equipment. The industry's capital intensity has increased over the past five years, with wages declining as a portion of revenue at a faster rate than capital investment over the period. This trend is anticipated to continue over the next five years.Although logging activities and forestry support services can be labour-intensive, many of these activities are subcontracted to specialists. Man...purchase to read more.

    Additional Insights for the Forestry and Logging Industry

    IBISWorld has determined the most important Key Success Factors for the Forestry and Logging are:

  • Access to the necessary amount of land/type of property
  • Output is sold under contract - incorporate long-term sales contracts
  • Must have licence
  • IBISWorld analysts also discuss how external factors such as Domestic price of timber and Volume of wood harvested in the Forestry and Logging industry impact industry performance..

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    What's in this report

    What is the Forestry and Logging in New Zealand Industry?

    Operators in the industry own and operate log forestry plantations, or provide contract logging services for forestry owners. Industry players also hew and shape logs at logging sites. Forestry support services such as pest management are excluded from the industry.

    Industry Products
  • Radiata pine logs
  • Logging services
  • Other logs
  • Residues
  • Industry Activities
  • Logging
  • Timber hewing
  • Forestry growing operations
  • Forest timber shaping
  • Pole hewing
  • Railway sleeper hewing
  • Firewood cutting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of timber
  • Volume of wood harvested
  • Demand from wood product manufacturing
  • Demand from house construction
  • Availability of plantation trees

  • Current Performance
  • Planting booms
  • Supply conditions
  • Farm forestry
  • Chart: Revenue Growth

  • Industry Outlook
  • Supply concerns
  • Farm forestry
  • Table: Forestry and Logging Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Forestry and Logging Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Log Sawmilling in New Zealand
  • Wood Chipping in New Zealand
  • Timber Resawing and Dressing in New Zealand

  • Key Selling Industries
  • Agricultural and Construction Machinery Wholesaling in New Zealand
  • Forestry Support Services in New Zealand

  • Products & Services
  • Radiata pine logs
  • Logging services
  • Residues
  • Other logs
  • Chart: Forestry and Logging Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Sawmillers
  • Pulp and paper manufacturers
  • Chart: Major Market Segmentation for the Forestry and Logging 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 Forestry and Logging

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Forestry and Logging Industry

  • Industry Globalization
    Kaingaroa Timberlands Limited, Rayonier New Zealand Limited,
  • Table: Kaingaroa Timberlands Limited - financial performance
  • Table: Rayonier New Zealand Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Forestry and Logging 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 Forestry and Logging Industry
  • 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)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • The chopping or cutting of timber with an axe or other tool.
  • Indigenous Forestry
  • The harvesting of native timber from natural forests.
  • Iwi
  • The largest social unit of Maori society, often referred to as a tribe.
  • Thinning
  • An intermediate process of timber harvesting at forestry plantations. Thinning involves harvesting weaker trees in the plantation to allow greater room for stronger trees to grow.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Forestry and Logging in New Zealand 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 Forestry and Logging in New Zealand:
    • 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 Forestry and Logging in New Zealand 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 Forestry and Logging in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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