Industry Analysis & Industry Trends
China's urbanization rate increased from 45.7% in 2008 to 53.7% in 2013. The resulting fast development of the real estate market created huge demand for construction wood, wood for decoration, and wood furniture. The rapid development of transportation infrastructure also raised demand for special timbers and sleepers. These factors have benefited the Sawmill industry, which has been performing strongly. Industry revenue is set to reach $11.6 billion in 2014, reflecting 12.4% annualized growth over the past five years.
Due to inadequate supply, low quality, and the uneven distribution of Chinese forest resources, demand for industry products surpasses supply. Therefore, China imports sawn timbers and sleepers to satisfy market demand.... 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 employmee 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 2014, 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