Chopped wood: Industry growth will slow as domestic residential construction cools down

While domestic construction markets are a significant source of industry demand, over half of the industry's revenue stems from exports to the United States, and as a result, industry performance is closely tied to the health of the housing markets in both countries. Over the five years to 2019, industry revenue is expected to grow. Over the past five years, Canadian housing starts have been volatile, with growth during the first half of the reporting period counteracted during the second half by rising interest rates and high household debt levels that have caused housing starts to slow. However, the industry's strong growth has been underpinned by rapidly growing construction markets in the United States, where housing starts grew rapidly...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 14-19
8.3%
Forecast Growth 19-24
Profit
Employment
18,121
Businesses
535

Industry Threats & Opportunities

  • Demand from Canadian construction markets is expected to be slightly slower than in previous years
  • The United States is the industry’s primary export destination
  • The industry is expected to continue recovering from its recessionary low
  • Industry Report - Industry Key Buyers Chapter

    The Wood Panelling Manufacturing industry in Canada has a moderate level of concentration, with the four largest players accounting for an estimated 43.3% of industry revenue in 2019. The industry’s largest operators are primarily vertically integrated forest products companies owning upstream sawmills and even timber harvesting operations that supply their own wood. For example, West Fraser Timber Co. is one of the largest lumber producers in North America, but its wood panelling manufacturing operations make up only a small share of total company revenue. The majority of the companies in the industry are small- and medium-size players that serve more regional markets.The industry market share concentration has increased in recent years. Som...purchase to read more.

    Additional Insights for the Wood Panelling Manufacturing Industry

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

  • Control of distribution arrangements
  • Economies of scale
  • Ability to adapt scale of production
  • IBISWorld analysts also discuss how external factors such as Canadian effective exchange rate index and Value of residential construction in the Wood Panelling Manufacturing industry impact industry performance..

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    What's in this report

    What is the Wood Panelling Manufacturing Industry?

    The industry manufactures veneer or plywood, engineered wood or reconstituted wood products. The industry does not include companies that primarily engage in sawmilling or wood preservation, nor does it include companies that primarily produce dimensions stock.

    Industry Products
  • Hardwood veneer and plywood
  • Softwood veneer and plywood
  • Structural wood products
  • Particleboard and fibreboard
  • Waferboard
  • Industry Activities
  • Plywood
  • Reconstituted wood products (including sheets and boards)
  • Plastic-faced plywood
  • Oriented strand board (OSB)
  • Medium-density fibreboard (MDF)
  • Laminated structural wood members
  • Fabricated structural wood members
  • Particleboard
  • Roof trusses
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian effective exchange rate index
  • Value of residential construction
  • Value of nonresidential construction
  • Housing starts
  • Demand from furniture and related product manufacturing

  • Current Performance
  • Demand conditions and ties to the United States
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Mixed construction markets
  • Trade conditions
  • Table: Wood Panelling Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wood Panelling Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Homebuilders in Canada
  • Apartment & Condominium Construction in Canada
  • Cabinet & Vanity Manufacturing in Canada
  • Household Furniture Manufacturing in Canada
  • Roofing, Siding & Insulation Wholesaling in Canada
  • Remodelling in Canada

  • Key Selling Industries
  • Plastic & Resin Manufacturing in Canada
  • Sawmills & Wood Production in Canada

  • Products & Services
  • Waferboard
  • Softwood veneer and plywood
  • Particleboard and fibreboard
  • Structural wood products
  • Hardwood veneer and plywood
  • Chart: Wood Panelling Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • New residential construction
  • Commercial construction
  • Residential renovation
  • Furniture production
  • Chart: Major Market Segmentation for the Wood Panelling Manufacturing 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 Wood Panelling Manufacturing

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

  • Industry Globalization
    Norbord Inc., Louisiana-Pacific Corporation, Weyerhaeuser Company, West Fraser Timber Co. Ltd.,
  • Table: Norbord Inc. - financial performance
  • Table: Louisiana-Pacific Corporation - financial performance
  • Table: Weyerhaeuser Company - financial performance
  • Table: West Fraser Timber Co. Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wood Panelling 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 Wood Panelling Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Housing Starts (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Medium-Density Fibreboard (Mdf)
  • A product made by gluing together slices of wood at right angles against their grain to increase strength and uniformity.
  • Oriented Strand Board (Osb)
  • A product made by layering strands or flakes of wood across various orientations and compressing them with resin.
  • Veneer
  • Thinly slices pieces of wood that are glued to plywood, fibreboard and particleboard panels.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wood Panelling Manufacturing 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 Wood Panelling 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 Wood Panelling 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 Wood Panelling Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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