Industry Analysis & Industry Trends
The Logging industry is strongly tied to activity in the downstream housing market, therefore, when the residential construction market began to recover during the five years to 2014, industry revenue benefited. In addition, exports have exhibited phenomenal growth, most of which has come from China, boosting industry demand. In the five years to 2019, demand conditions for the Logging industry are expected to continue improving. Demand will be driven by strong growth in the number of housing starts and home improvement spending. However, paper manufacturing, another major buyer of wood products, is forecast to slow over the next five years due to the continued trend toward electronic communication, threatening revenue growth... purchase to read more
Industry Report - Industry Investment Chapter
The US Logging industry has a medium level of capital intensity. Capital investment is mainly in vehicles and logging equipment. Typical logging equipment includes: logging trucks, chippers, stump cutters, log skidders, log splitters, delimbers, grinders and saws. Capital investment declined partly due to downsizing among industry operators. Furthermore, during the recession companies delayed upgrading their equipment and vehicles, in an effort to cut operating expenses.
Although capital investment declined at a faster rate, industry operators also reduced labor expenses over the past five years. The number of employees and the industry's wage costs have increased during the past five years, although not as quickly as revenue... purchase to read more