Industry Analysis & Industry Trends
China's increasing urbanization rate, which jumped from 45.7% in 2008 to 54.8% in 2014, 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 11.5% over the five years to 2015, reaching $13.1 billion.
Due to inadequate supply, low quality and an uneven distribution of Chinese forest resources, demand for industry products surpasses supply. Therefore, an increasing number of timbers and sleepers satisfied market demand over the five-year period. In the five years to 2015, imports are estimated to increase 16.7%.... purchase to read more
Industry Report - Industry Investment Chapter
For every dollar spent on wages, including management and administration costs, about 21 cents are invested in capital in the Sawmills industry. The average wage per employee has been increasing, as manufacturers have to pay higher wages for staff due to a labor force shortage and increases in the minimum wage. With increasing labor costs, sawmills are likely to adopt new technology and equipment to replace employees. Numerical-controlled machines, for example, can improve efficiency and output percentage of logs greatly.
In 2015, depreciation is estimated to account for 1.7% of total revenue; this share is expected to increase in line with more investment in advanced equipment and facilities... purchase to read more