Log Sawmilling in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC C1411Revenue
$2.0bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
5,525
Businesses
592
Wages
$XXX.Xm
Log Sawmilling in Australia industry analysis
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.
Trends and Insights
- Volatile demand from house construction has significantly affected log sawmillers’ performance. Although home buyer incentives supported demand from house construction, cost-of-living pressures are set to reverse this trend in 2023-24.
- 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’s contribution to log sawmillers’ revenue.
- Sawmilling businesses are generally located close to population hubs. This trend is mainly because construction firms and timber product manufacturers establish themselves close to end consumers.
- Log sawmilling businesses face substantial internal price competition. The commoditisation of industry products within categories supports this competition.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 0.8 % over the past five years, to reach an estimated $2.0bn in 2023.
Trends and Insights
Volatile downstream demand has severely weighed on log sawmillers' performance
- Revenue growth has been slow because of lower demand from timber resawing and dressing companies and volatile house construction activity.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Improving downstream conditions will support log sawmillers' expansion
- The industry's performance is set to improve because of demand growth from wooden structural component manufacturers and timber resawing firms that supply products to the housing construction market.
Biggest companies in the Log Sawmilling in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Timberlink Australia | 249.8 | |
AKD Softwoods | 170.3 | |
Hyne & Son | 166.9 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
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.
Trends and Insights
High demand is supporting sawn softwood's contribution to revenue
- Softwood is derived from conifers like pine, fir or spruce. Sawmilling companies purchase plantation softwood from logging companies to produce rough-sawn timber.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Wood Chipping in Australia
- Timber Resawing and Dressing in Australia
- Timber Wholesaling in Australia
- Pallets and Other Wood Product Manufacturing in Australia
- Forestry and Logging in Australia
- Fabricated Wood Manufacturing in Australia
International industries
- Sawmills & Wood Production in the US
- Sawmills & Wood Production in Canada
- Log Sawmilling in New Zealand
- Sawmilling & Wood Planing in the UK
- Sawmills in China
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Sawn softwoodSawn hardwoodSawdust and offcutsCompanies
Timberlink AustraliaAKD SoftwoodsHyne & SonPurchase this report to view all 6 major companies in this industry.
Related Terms
SOFTWOODHARDWOODSAWNWOODIndustry Code
ANZSIC 1411 - Log Sawmilling in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Volatile demand from house construction has significantly affected log sawmillers’ performance. Although home buyer incentives supported demand from house construction, cost-...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
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’...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Sawmilling businesses are generally located close to population hubs. This trend is mainly because construction firms and timber product manufacturers establish themselves cl...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
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.
Analyst insights
Log sawmilling businesses face substantial internal price competition. The commoditisation of industry products within categories supports this competition.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
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...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Timberlink Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of AKD Softwoods's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Hyne & Son's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Timberlink Australia, and factors influencing its performance in the industry
- Description and key data for AKD Softwoods, and factors influencing its performance in the industry
- Description and key data for Hyne & Son, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
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...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
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.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Log Sawmilling industry in Australia in 2024?
The market size of the Log Sawmilling industry in Australia is $2.0bn in 2024.
How many businesses are there in the Log Sawmilling in Australia industry in 2023?
There are 592 businesses in the Log Sawmilling industry in Australia, which has declined at a CAGR of 1.6 % between 2018 and 2023.
Has the Log Sawmilling industry in Australia grown or declined over the past 5 years?
The market size of the Log Sawmilling industry in Australia has been growing at a CAGR of 0.8 % between 2018 and 2023.
What is the forecast growth of the Log Sawmilling industry in Australia over the next 5 years?
Over the next five years, the Log Sawmilling industry in Australia is expected to grow.
What are the biggest companies in the Log Sawmilling market in Australia?
The biggest companies operating in the Log Sawmilling market in Australia are Timberlink Australia, AKD Softwoods and Hyne & Son
What does the Log Sawmilling in Australia include?
Sawn softwood and Sawn hardwood are part of the Log Sawmilling industry.
Which companies have the highest market share in the Log Sawmilling in Australia?
The company holding the most market share in Australia is Timberlink Australia.
How competitive is the Log Sawmilling industry in Australia?
The level of competition is moderate and steady in the Log Sawmilling industry in Australia.
