Knock on wood: Strong domestic and international demand for lumber will boost the industry

The Sawmills and Wood Production industry has experienced challenging demand conditions over the past five years due to a cooling Canadian housing market and slowly recovering US housing market. In addition, the mountain pine beetle infestation in British Columbia, which is home to one-third of industry establishments, is damaging a significant share of the province's timber. Despite ongoing obstacles, industry revenue has improved as a result of record-high demand for lumber in China over the period, and the resurgence of the US single-family home building market in 2012. Over the next five years, the industry will benefit from strengthening demand for lumber, both domestically and more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • The industry will benefit from strengthening domestic and international demand for lumber
  • Overall housing starts have fallen in Canada during the five-year period
  • The majority of industry revenue is expected to continue to be generated by sales to export markets
  • Industry Report - Industry Products Chapter

    The Sawmills and Wood Production industry manufactures a range of lumber products including boards, beams, poles, ties, shingles, shakes, siding and wood chips. Companies may also treat sawed, planed or shaped wood with creosote or other preservatives to protect against fire, moisture, insects and mould. Lumber productsSoftwood lumber is the primary product created in the industry and accounts for 70.4% of industry revenue. Spruce, pine and fir trees, the dominant species of timber in Canada, are all considered softwood. Softwood lumber is used primarily for construction, furniture and paper manufacturing. Sof...purchase to read more.

    Additional Insights for the Sawmills & Wood Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Sawmills & Wood Production Industry are

  • Prompt delivery to market
  • Upstream vertical integration
  • Access to the most efficient sawmill technology and techniques
  • IBISWorld analysts also discuss how external factors such as Canadian-dollar effective exchange rate index and Housing starts in the Sawmills & Wood Production industry impact industry performance..

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    What's in this report

    What is the Sawmills & Wood Production Industry?

    This industry manufactures boards, dimension lumber, beams, poles, ties, siding and wood chips from logs or bolts. The industry also produces pilings and posts treated with preservatives. Industry wood products may be rough, or dressed by a planing machine to create uniform sizes, but no further shaping takes place. The industry includes companies that apply preservatives to wood from other establishments. The industry excludes veneer or engineered lumber (e.g. plywood) manufacturing.

    Industry Products
  • Softwood lumber
  • Hardwood lumber
  • Wood chips
  • Wood product preservation
  • Industry Activities
  • Sawing and planing hardwood logs
  • Sawing and planing softwood logs
  • Preserving or treating lumber with chemicals and resins
  • Table of Contents

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

  • Current Performance
  • Strong export markets fuel demand
  • Canadian markets
  • Industry consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand from export markets
  • Domestic markets
  • Lingering complications from the mountain pine beetle epidemic
  • Industry landscape
  • Table: Sawmills & Wood Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sawmills & Wood Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wood Panelling Manufacturing in Canada
  • Millwork in Canada
  • Lumber Wholesaling in Canada
  • Wood Pulp Mills in Canada

  • Key Selling Industries
  • Construction Machinery Manufacturing in Canada
  • Logging in Canada
  • Organic Chemical Manufacturing in Canada
  • Plastic & Resin Manufacturing in Canada

  • Products & Services
  • Softwood lumber
  • Wood chips
  • Wood product preservation
  • Other
  • Hardwood lumber
  • Chart: Sawmills & Wood Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports to the United States
  • Exports to all other countries
  • Lumber wholesalers
  • Wood Paneling producers
  • Wood pulp mills
  • Millwork producers
  • Chart: Major Market Segmentation for the Sawmills & Wood Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationRent and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Sawmills & Wood Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sawmills & Wood Production Industry

  • Industry Globalization
    Canfor Corporation, West Fraser Timber Co., Western Forest Products Inc.,
  • Table: Canfor Corporation - financial performance
  • Table: West Fraser Timber Co. - financial performance
  • Table: Western Forest Products Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Sawmills & Wood Production 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 Sawmills & Wood Production Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Canadian-dollar Effective Exchange Rate Index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Softwood Lumber
  • The primary kind of lumber produced by the industry. Softwood lumber includes pine, spruce, fir and other coniferous trees.
  • Stumpage
  • The fee associated with timber tenures. Stumpage rates vary by the value of the tract and are usually determined at tract auctions.
  • Timber Tenure
  • A licence granted by provinces that allow certain tracts of timberland to be harvested for a certain length of time.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Sawmills & Wood Production 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 Sawmills & Wood Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    • 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 Sawmills & Wood Production 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

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