$2.0bn
$XX.Xm
5,525
592
$XXX.Xm
The Log Sawmilling industry has faced challenging conditions in the past few years. Various factors have impacted revenue trends, including the adverse effects of COVID-19, weaker demand for timber products in the building construction markets, low pricing growth and lower demand from timber resawing and dressing companies. Nonetheless, new wood-based building products with broader applications have supported log sawmilling businesses by boosting their products' competitiveness over steel and other substitute building materials.Revenue is expected to grow at an annualised 0.8% over the five years through 2023-24, to total an estimated $2.0 billion. However, revenue is expected to weaken by an estimated 3.1%in 2023-24 because of plunging demand conditions in the house construction market. Low downstream demand has also weighed on profit margins. The Australian dollar has remained relatively high, making local sawnwood products less competitive in export markets and hindering export revenue.Log sawmilling companies have undergone substantial structural change as larger businesses have acquired other operations. Many of the smaller scale enterprises have exited as mid-size firms have captured market share by acquiring the assets of failed industry businesses. This trend has enabled some mid-size industry firms to increase their size, improve scale economies and access adequate timber deposits.Revenue is forecast to grow at an annualised 1.5% over the five years through 2028-29 to total an estimated $2.1 billion. Stronger non-residential building construction activity and greater demand from timber resawing and dressing firms will drive this performance. Timber pricing is set to sink in response to growth in the volume of wood harvested. Profitability is set to grow as log sawmilling businesses improve their operating cost efficiencies.
Industry revenue has grown at a CAGR of 0.8 % over the past five years, to reach an estimated $2.0bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 |
---|---|---|
Timberlink Australia | 249.8 | |
AKD Softwoods | 170.3 | |
Hyne & Son | 166.9 |
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Industry revenue is measured across several distinct product and services lines, including Sawn softwood , Sawn hardwood and Sawdust and offcuts. Sawn softwood is the largest segment of the Log Sawmilling in Australia.
High demand is supporting sawn softwood's contribution to revenue
Industry firms operate sawmills and produce rough sawn timber, sleepers, palings and scantlings. The industry also includes resawn timber produced in the same establishments as sawmilling. Resawn timber that is manufactured after it has been sold to a specialist resawing operation is not included in the industry.
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ANZSIC 1411 - Log Sawmilling in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Volatile demand from house construction has significantly affected log sawmillers’ performance. Although home buyer incentives supported demand from house construction, cost-...
Learn about an industry's products and services, markets and trends in international trade.
Rising environmental concerns have driven the preservation of native forests. Since a large volume of hardwood comes from native forests, this trend has shrunk sawn hardwood’...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Sawmilling businesses are generally located close to population hubs. This trend is mainly because construction firms and timber product manufacturers establish themselves cl...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Log sawmilling businesses face substantial internal price competition. The commoditisation of industry products within categories supports this competition.
Learn about the performance of the top companies in the industry.
Hyne & Son has partnered with UK-based James Jones & Sons through letting the latter acquire over 60% of its assets. The partnership will likely improve Hyne & Son’s performa...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Log sawmills need to carry out independent environmental impact assessments to establish mills or to make changes and upgrades to existing mills. They must also meet governme...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Log sawmilling businesses have attempted to scale back their wage expenses by adopting cost-cutting measures. That’s why wage costs have withered as a share of revenue.
Including values and annual change:
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Key data sources in Australia include:
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These sources include:
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The market size of the Log Sawmilling industry in Australia is $2.0bn in 2024.
There are 592 businesses in the Log Sawmilling industry in Australia, which has declined at a CAGR of 1.6 % between 2018 and 2023.
The market size of the Log Sawmilling industry in Australia has been growing at a CAGR of 0.8 % between 2018 and 2023.
Over the next five years, the Log Sawmilling industry in Australia is expected to grow.
The biggest companies operating in the Log Sawmilling market in Australia are Timberlink Australia, AKD Softwoods and Hyne & Son
Sawn softwood and Sawn hardwood are part of the Log Sawmilling industry.
The company holding the most market share in Australia is Timberlink Australia.
The level of competition is moderate and steady in the Log Sawmilling industry in Australia.