Knock on wood: Increases in the price of wood will help fuel the industry's recovery

The Logging industry in Ontario experienced a strong contraction between 2006 and 2014, where revenue declined every single year during the period. However, as a result of favourable economic conditions and a strong performance from downstream markets, the industry recovered in 2015 and has placed itself in a path toward revival. The industry revenue is expected to grow over the five years to 2018. The industry is anticipated to continue down a path of expansion over the next five years. After having established a pattern of growth between 2015 and 2018, the expected growth of downstream industries and growth in the price of wood is likely to fuel the industry's performance. However, housing starts in Ontario and Canada are anticipated to decline, which is likely to tame the expansion...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
4.1%
Forecast Growth 18-23
Profit
Employment
4,212
Businesses
1,637

Industry Threats & Opportunities

  • The expected growth of downstream industries and growth in the price of wood is likely to fuel the industry’s performance
  • Industry Report - Industry Locations Chapter

    Ontario accounts for 14.6% of Canada’s industry establishments despite accounting for an estimated 36.2% of the country’s housing starts. This a result of the forest coverage in Ontario, which is smaller than British Columbia’s or Quebec’s as measured in hectares. Most establishments are in the northern region of Ontario, where the most productive forest area is located, but the major markets are nearby major metropolitan cities, such as Toronto and Ottawa, where most downstream market operators are located. This layout is similar to most other Canadian provinces since timber must be harvested from forests while most sawmills and paper manufacturers stay close to populous hubs...purchase to read more.

    Additional Insights for the Logging in Ontario Industry

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

  • Downstream ownership links
  • Appropriate physical growing conditions
  • Understanding government policies and their implications
  • IBISWorld analysts also discuss how external factors such as Housing starts in Ontario and Demand from paper mills in the Logging in Ontario industry impact industry performance..

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    What's in this report

    What is the Logging in Ontario 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
  • Hardwood logs and bolts
  • Softwood logs and bolts
  • Pulpwood
  • Industry Activities
  • Cutting timber
  • Transporting timber
  • Producing wood chips
  • 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 in Ontario
  • Demand from paper mills
  • Demand from wood product manufacturing
  • Price of wood products

  • Current Performance
    Industry Outlook
    Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Logging in Ontario 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
  • Industrial Machinery & Equipment Wholesaling in Canada
  • Local Specialized Freight Trucking in Canada

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

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

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Logging in Ontario

  • Basis of Competition
    Barriers to Entry
    Eacom Timber Corporation, Resolute Forest Products, Stella-Jones Inc., Weyerhaeuser Company,
  • Table: Eacom Timber Corporation - financial performance
  • Table: Resolute Forest Products - financial performance
  • Table: Stella-Jones Inc. - financial performance
  • Table: Weyerhaeuser Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Logging in Ontario 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 in Ontario Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Housing Starts in Ontario (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 permitted 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.
  • 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?

    IBISWorld’s Logging in Ontario market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

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

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