Splintering: Increased product substitution is leading to industry exits

The Carpentry and Joinery Timber Manufacturing industry has performed poorly over the past five years. The industry is significantly affected by demand trends in downstream building markets. The internal fit-outs of houses, apartments and non-residential buildings often require wooden doors, wardrobes and cupboards supplied by the industry. Over the past five years, manufacturers have faced subdued demand from the single-unit house construction market, which represents the most important source of industry sales. Consequently, industry revenue is expected to decline at an annualised 0.7% over the five years through 2017-18, to total $2.8 billion. This includes an anticipated decline of 2.4% in the current year...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
-0.7%
Forecast Growth 18-23
Profit
Employment
12,470
Businesses
2,180

Industry Threats & Opportunities

  • Growth in the domestic price of timber has increased industry purchase costs over the past five years
  • Builders have increasingly been opting for aluminium window frames over wooden window systems
  • Wooden joinery products used for internal fit-outs of commercial building developments will likely support industry revenue
  • Industry Report - Starting a New Business Chapter

    The industry is characterised by moderate barriers to entry. The required capital investment to enter the industry varies depending on the intended size and scope of the business. Larger manufacturers generally use more sophisticated equipment and machinery, which would result in greater capital expenditure, whereas smaller operators tend to be more reliant on manual labour to produce niche low-volume products.Market share concentration is low, which indicates that no companies control a significant portion of the industry. However, firms battle for competitive advantages based on product price, quality and range. Existing players are likely to hold some competitive advantage over new entrants through long-term supply arrangements with major customers. Sma...purchase to read more.

    Additional Insights for the Carpentry and Joinery Timber Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Carpentry and Joinery Timber Manufacturing Industry are

  • Supply contracts in place for key inputs
  • Having contacts within key markets
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Demand from house construction and Demand from commercial and industrial building construction in the Carpentry and Joinery Timber Manufacturing industry impact industry performance..

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    What's in this report

    What is the Carpentry and Joinery Timber Manufacturing Industry?

    Industry operators are primarily engaged in manufacturing carpentry and joinery timber products, such as wooden doors, wooden window frames, prefabricated wooden panels and wooden cabinets.

    Industry Products
  • Wooden doors
  • Wooden window frames
  • Wardrobes and cupboards
  • Other joinery timber
  • Industry Activities
  • Wooden door
  • Wooden window frames
  • Wooden joinery
  • Prefabricated wooden panel
  • Wooden kitchen cabinet
  • 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 commercial and industrial building construction
  • Demand from multi-unit apartment and townhouse construction
  • Real household disposable income
  • Availability of plantation trees
  • Domestic price of timber

  • Current Performance
  • Construction activity
  • Profitability and participation
  • External competition and imports
  • Chart: Revenue Growth

  • Industry Outlook
  • Building trends
  • Timber pricing
  • Product substitution
  • Table: Carpentry and Joinery Timber Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Carpentry and Joinery Timber Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • House Construction
  • Multi-Unit Apartment and Townhouse Construction
  • Timber Wholesaling
  • Commercial and Industrial Building Construction
  • Hardware and Building Supplies Retailing

  • Key Selling Industries
  • Log Sawmilling
  • Timber Resawing and Dressing

  • Products & Services
  • Wooden doors
  • Wooden window frames
  • Wardrobes and cupboards
  • Other joinery timber
  • Chart: Carpentry and Joinery Timber Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential building contractors
  • Non-residential building contractors
  • Retailers
  • Wholesalers
  • Other
  • Chart: Major Market Segmentation for the Carpentry and Joinery Timber Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Carpentry and Joinery Timber Manufacturing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Carpentry and Joinery Timber Manufacturing Industry

  • Industry Globalization
    Fletcher Building Limited, JELD-WEN Australia Pty Limited, Carter Holt Harvey Building Products Pty Limited,
  • Table: Fletcher Building Limited - financial performance
  • Table: JELD-WEN Australia Pty Limited - financial performance
  • Table: Carter Holt Harvey Building Products Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Carpentry and Joinery Timber 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 Carpentry and Joinery Timber Manufacturing Industry
    Includes:
  • 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
    Architrave
  • A style of timber moulding that frames the top of a door or window.
  • Casement
  • A type of window that is attached to the side of its frame by hinges.
  • Diy
  • Stands for do-it-yourself.
  • Louvre
  • A type of window, blind or shutter with adjustable horizontal slats that admit light and air.
  • What Our Customers Say

    Why buy this report?

    The Carpentry and Joinery Timber Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Carpentry and Joinery Timber 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 Carpentry and Joinery Timber 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 Carpentry and Joinery Timber Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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