Knock on wood: Large wood harvests have supported industry revenue, despite falling exports

The Log Sawmilling industry has expanded slowly over the past five years, due to mixed revenue growth and declining exports. Sawn wood production volumes, timber pricing, and downstream demand from wood product manufacturers and final customers all influence industry revenue. Sawn wood production volumes are expected to increase at an annualised 2.1% over the five years through 2017-18, to 4.4 million cubic metres in the current year. The maturity of trees planted several decades ago has pushed the volume of plantation logs up over the past five years, with further growth likely over the next five years. This increase comes despite the total area available for plantations having declined slightly over the past five more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Higher output and stronger domestic demand have offset falling industry exports
  • Steady timber pricing growth has benefited the industry
  • Strong output growth will be partly offset by limited increases in timber prices
  • Industry Report - Industry SWOT Analysis Chapter

    The Log Sawmilling industry is in the mature phase of its economic life cycle. Industry value-added, which is the industry's contribution to national GDP, is projected to increase at an annualised 1.4% over the 10 years through 2022-23. This is lower than anticipated GDP growth, which is forecast to increase at an annualised 2.8% over the same period. Therefore, the industry will account for a smaller proportion of the national economy in 2022-23 than it did in 2012-13. The industry's performance has been limited due to low growth over the past five years, as a result of low or declining output and declining exports.The number of industry enterprises has declined over the past five years. Ind...purchase to read more.

    Additional Insights for the Log Sawmilling Industry

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

  • Ability to control stock on hand
  • Access to high quality inputs
  • Upstream vertical integration (ownership links)
  • IBISWorld analysts also discuss how external factors such as Volume of wood harvested and Domestic price of timber in the Log Sawmilling industry impact industry performance..

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    What's in this report

    What is the Log Sawmilling in New Zealand Industry?

    Industry operators primarily operate sawmills that produce rough sawn timber, boards, palings, scantlings and other basic timber products. Resawn timber manufactured after being sold to a specialist resawing operation is excluded from the industry.

    Industry Products
  • Intermediate sawn wood products
  • Final sawn wood products
  • Other sawn wood products
  • Industry Activities
  • Log sawmilling
  • Rough sawn timber
  • Board, paling, and scantling
  • Shook (for containers)
  • Table of Contents

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

  • Current Performance
  • Revenue and

    profit growth

  • Mixed downstream demand
  • Wood volumes

    and prices

  • Enterprises and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and

    profit growth

  • Wood opportunities
  • Enterprises and employment
  • Table: Log Sawmilling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Log Sawmilling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Timber Resawing and Dressing in New Zealand
  • Wooden Structural Fitting and Component Manufacturing in New Zealand
  • Timber Wholesaling in New Zealand
  • Fabricated Wood Manufacturing in New Zealand

  • Key Selling Industries
  • Commercial Vehicle Wholesaling in New Zealand
  • Forestry and Logging in New Zealand
  • Industrial and Mining Machinery Wholesaling in New Zealand

  • Products & Services
  • Intermediate sawn wood products
  • Final sawn wood products
  • Other sawn wood products
  • Chart: Log Sawmilling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Timber resawing and dressing companies
  • Timber wholesaling companies
  • Export markets
  • Wood chipping and wood product manufacturers
  • Chart: Major Market Segmentation for the Log Sawmilling 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 Log Sawmilling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Log Sawmilling 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 Log Sawmilling 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 Log Sawmilling 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)
  • Sawn Timber Production (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Radiata Pine
  • A softwood tree native to California, USA, which grows well in New Zealand.
  • Scantlings
  • Narrow sawn timber beams that are used in house frames.
  • Shook
  • Sawn wood parts required for the manufacture of containers or barrels.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Log Sawmilling in New Zealand 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.

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    This report on Log Sawmilling 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 Log Sawmilling 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 Log Sawmilling 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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