Industry Analysis & Industry Trends
China's increasing urbanization rate, which jumped from 45.7% in 2008 to 56.1% in 2015, has bolstered demand for construction wood, wood for decoration and wood furniture over the past five years. The rapid development of transportation infrastructure also raised demand for special timbers and sleepers. These factors have benefited the Sawmill industry, causing industry revenue to increase at an annualized 14.6% over the five years to 2016, reaching $17.8 billion.
Due to inadequate supply, low quality and an uneven distribution of Chinese forest resources, demand for industry products surpasses supply. In the five years to 2016, imports are estimated to increase 6.4% per year on average, totaling $2.6 billion or 13.0% of domestic demand.... purchase to read more
Industry Report - Starting a New Business Chapter
About 96.5% of sawmills in China are small-sized enterprises, which do not required much fixed investment for production. Larger sawmills that employ economies of scale have an advantage as their production costs are lower. Those scale enterprises adopt advanced equipment to improve conversion rates of logs and reutilize residues to produce other products.
Authorization from the State Forestry Administration is essential for new firms to enter this industry. To obtain Timber Trade and Production licenses, sawmills must comply with requirements for sawing locations, machines, and raw materials, and fixed assets. Sawmills that import logs and export finished products must also obtain licenses from the relevant organizations... purchase to read more