Chopped down: A cooldown in new domestic housing construction will slow industry growth

The Millwork industry manufactures products used in construction; therefore, industry revenue largely depends on demand from this downstream sector. Additionally, a weak Canadian dollar boosted the competitiveness of industry products in the US construction sector. Amid high levels of uncertainty in domestic construction markets, the industry has become increasingly reliant on US markets over the past five years. Due to high levels of household debt and an anticipated rise in interest rates over the next five years, housing construction is expected to continue declining, tempering demand for new building 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

  • Amid high levels of uncertainty in domestic construction markets, the industry has become increasingly reliant on US markets
  • The passage of wood encouragement policies has helped the industry stem competition
  • A gradually strengthening Canadian dollar will temper export growth
  • Industry Report - Industry Investment Chapter

    The Millwork industry in Canada has a low level of capital intensity. IBISWorld estimates that the average industry enterprise invests $0.09 on capital for every dollar spent on wages. However, the level of capital intensity can vary depending on the industry product being manufactured. For instance, wood flooring requires a higher level of automation and, thus, a higher degree of capital investment. By contrast, products like wooden doors and windows are not easily produced by automated equipment and require a great deal of labour to customize the products. Although industry operators have been investing in more technology in recent years to improve automation and reduce operating expenses, it has not been enough to affect the industry's overall level of capital intensity...purchase to read more.

    Additional Insights for the Millwork Industry

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

  • Supply contracts in place for key inputs
  • Access to high-quality inputs
  • Production of premium goods/services
  • IBISWorld analysts also discuss how external factors such as Housing starts and Canadian-dollar effective exchange rate index in the Millwork industry impact industry performance..

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    What's in this report

    What is the Millwork Industry?

    This industry manufactures hardwood and softwood cut stock and dimension stock timber (lumber and worked wood products cut or shaped into specialized sizes); wood windows and doors; and other millwork, such as wood flooring. These reshaped wood products are mainly sold to housing and other building construction industries and their contractors, as well as to wood product distributors.

    Industry Products
  • Wood windows and doors
  • Cut stock and resawn lumber
  • Flooring and other products
  • Industry Activities
  • Wooden window
  • Wooden door
  • Wooden floor
  • Specialized lumber cutting and shaping
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Canadian-dollar effective exchange rate index
  • Residential renovation expenditure
  • Per capita disposable income
  • Value of nonresidential construction

  • Current Performance
  • Construction volatility
  • Export growth
  • Industry structure and profit
  • Substitute competition
  • Regulatory assistance
  • Chart: Revenue Growth

  • Industry Outlook
  • Slowing construction activity
  • International trade
  • Table: Millwork Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Homebuilders in Canada
  • Apartment & Condominium Construction in Canada
  • Industrial Building Construction in Canada
  • Lumber Wholesaling in Canada
  • Hardware Stores in Canada
  • Lumber & Building Material Stores in Canada
  • Commercial Building Construction in Canada
  • Municipal Building Construction in Canada

  • Key Selling Industries
  • Electric Power Transmission in Canada
  • Sawmills & Wood Production in Canada
  • Wood Panelling Manufacturing in Canada

  • Products & Services
  • Flooring and other products
  • Cut stock and resawn lumber
  • Wood windows and doors
  • Chart: Millwork Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential repair and remodelling
  • New residential construction
  • Exports
  • Nonresidential construction
  • Chart: Major Market Segmentation for the Millwork 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 Millwork

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Millwork 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 Millwork 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 Millwork 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)
  • Housing Starts (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cut Stock
  • Wood products cut or shaped to specific sizes.
  • Hardwood
  • Wood from broadleaved trees that is used for construction, flooring and furniture.
  • Millwork
  • Woodwork products, such as doors, doorframes, window casings and floorboards.
  • Softwood
  • Wood from coniferous trees that is resistant to water and used for millwork, building components and furniture.
  • What Our Customers Say

    Why buy this report?

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

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