Pulp friction: Pest infestation and show growth in US housing starts will hinder revenue growth

Following a decade of uneven performance over the years leading up to the reporting period in response to declining harvest levels due to damage caused to domestic forestland by the mountain pine beetle, the industry has stabilized over the past five years. Harvest levels grew steadily during the reporting period, and the industry has benefited from strong growth in residential housing markets both domestically and in the United States, which imports significant quantities of downstream lumber products. Over the next five years, the industry is forecast to continue to grow in response to rising housing starts in the United States. However, US housing starts are forecast to increase more slowly, and domestic housing starts are forecast to decline, which will constrain revenue growth...read more.

Industry Statistics & Market Size
Revenue
$12bn
Annual Growth 13-18
3.1%
Forecast Growth 18-23
Profit
Employment
33,806
Businesses
11,051
Market Share of Companies

Industry Threats & Opportunities

  • Mountain pine beetles have devastated forests in the past and pose a lingering threat to the industry
  • Many operators found markets in East Asia, where timber commands a higher price
  • Uncertain trade relations with the United States will complicate industry performance
  • Industry Report - Industry Investment Chapter

    The Logging industry in Canada has a relatively high level of capital intensity, and in 2018 industry operators are expected to spend $0.53 on capital investment for every $1.00 spent on wages. Capital investments for industry operators is primarily for specialized vehicles and logging equipment. Typical logging equipment includes machines such as logging trucks, chippers, stump cutters, log skidders, log splitters, delimbers, grinders and saws.These capital expenditures are generally meant to provide the tools to maintain vast tracts of forestland while keeping costs low or providing mechanisms to automate processes, enabling companies to save money on labour costs. Cap...purchase to read more.

    Additional Insights for the Logging Industry

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

  • Downstream ownership links
  • Must hold quota
  • Appropriate physical growing conditions
  • IBISWorld analysts also discuss how external factors such as Demand from wood product manufacturing and Demand from paper mills in the Logging industry impact industry performance..

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    What's in this report

    What is the Logging Industry?

    Operators in this industry buy and lease log harvesting equipment and vehicles, which they then use to fell trees. The trees are then transported as sawlogs to sawmills and pulp mills. Companies that are primarily engaged in the breeding, planting or growing of trees are excluded from this industry and are instead classified under the Timber Services NAICS code 11311.

    Industry Products
  • Softwood logs and bolts
  • Hardwood logs and bolts
  • Pulpwood
  • Industry Activities
  • Cutting timber
  • Transporting timber
  • Producing wood chips in the forest
  • 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 wood product manufacturing
  • Demand from paper mills
  • Price of wood products
  • Canadian effective exchange rate index
  • Housing starts

  • Current Performance
  • Downstream demand
  • Lumber dispute and government intervention
  • International trade
  • Threats and industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Uncertain demand, despite downstream construction growth
  • Mountain pine beetle epidemic
  • Forest stewardship
  • Industry structure
  • Table: Logging Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Sawmills & Wood Production in Canada
  • Wood Panelling Manufacturing in Canada
  • Paper Mills in Canada

  • Key Selling Industries
  • Consumers in Canada
  • Industrial Machinery & Equipment Wholesaling in Canada
  • Local Specialized Freight Trucking in Canada
  • Public Administration in Canada

  • Products & Services
  • Softwood logs and bolts
  • Hardwood logs and bolts
  • Pulpwood
  • Other
  • Chart: Logging Industry Products and Services Segmentation

  • Demand Determinants
  • North American housing market
  • Electronic age
  • Global competition

  • Major Markets
  • Sawmills
  • Pulp mills
  • Exports
  • Other
  • Chart: Major Market Segmentation for the Logging Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationRent and utilities
  • Chart: Cost Structure Benchmarking – Sector vs Logging

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Logging Industry

  • Industry Globalization
    Canfor Corporation, West Fraser Timber Co. Ltd.,
  • Table: Canfor Corporation - financial performance
  • Table: West Fraser Timber Co. Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the 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 Logging 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)
  • Housing Starts (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Annual Allowable Cut (Aac)
  • The annual level of harvest allowed on a particular area of provincial Crown land during a specific number of years. (Harvests on federal and private lands are not regulated the same way.)
  • Bolt
  • A short, round section of a log.
  • Crown Land
  • Land owned by either federal or provincial governments.
  • Sawlog
  • The greater-in-diameter and straighter part of a tree stem processed at a sawmill; the most financially valuable part of a tree.
  • Silviculture
  • The practice of controlling the establishment, growth, composition, health and quality of forests and woodlands to meet various needs.
  • Stumpage
  • A fee paid to the landowner, often a provincial government, for the timber harvested within it. Stumpage rates often vary by region and species.
  • What Our Customers Say

    Why buy this report?

    The Logging 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 Logging:
    • 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 Logging 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 Logging, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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