Knock on wood: Construction activity is expected to strengthen, supporting industry revenue

The Logging industry has experienced modest growth over the past five years. Since the majority of industry products, including woodchips, wood pulp and sawlogs, are used to manufacture lumber and wood panel products for the residential construction market, construction activity largely determines industry performance. Over the five years to 2018, rising values of both residential and nonresidential construction have driven industry revenue growth, largely offsetting weaknesses in other downstream markets. Demand conditions for the industry are expected to continue improving through 2023. Growth in both the residential and nonresidential construction markets is forecast to continue in coming years, boosting sawlog sales...purchase to read more.

Industry Statistics & Market Size
Revenue
$16bn
Annual Growth 13-18
1.8%
Forecast Growth 18-23
Profit
Employment
91,848
Businesses
50,653
Market Share of Companies

Industry Threats & Opportunities

  • Recovery in the residential construction market will strengthen and boost sawlog sales
  • China has emerged as a major market for logging
  • Recovery in the new-housing construction market is anticipated to strengthen
  • Industry Report - Industry Analysis Chapter

    Companies in the Logging industry cut trees into sawlogs and produce wood chips that are transported to sawmills and wood pulp mills. The majority of the industry’s wood products are destined for the residential housing market; about 40.0% of all lumber used in the United States is put toward the construction of new homes, and another 30.0% is used in home repair and remodeling projects. Therefore, industry demand is strongly tied to activity in the downstream housing market, although wood pulp mills are another source of demand for industry products. Over the five years to 2018, performance in these markets has caused revenue to rise at an annualized rate of 1.8% to $15.8 billion, including a 3.4% increase in 2018 alone...purchase to read more.

    Additional Insights for the Logging Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Logging Industry are

  • Downstream ownership links
  • Must hold quota
  • Appropriate physical growing conditions
  • IBISWorld analysts also discuss how external factors such as Value of residential construction and Price of sawmill lumber in the Logging industry impact industry performance..

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    What's in this report

    What is the Logging Industry?

    Logging companies buy and lease log-harvesting equipment and vehicles and use them to fell trees. The trees are then transported as sawlogs to sawmills and pulp mills. The industry excludes breeding, planting or growing trees; companies that provide these services are classified under the Timber Services industry (IBISWorld report 11311). Companies that truck timber are categorized under Local Specialized Freight Trucking (48422).

    Industry Products
  • Softwood logs and bolts
  • Hardwood logs and bolts
  • Pulpwood
  • Other products
  • Industry Activities
  • Cutting timber
  • Transporting timber
  • Producing wood chips in the field
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of residential construction
  • Price of sawmill lumber
  • Industrial production index
  • Trade-weighted index
  • Value of private nonresidential construction

  • Current Performance
  • Rising demand from construction markets
  • Global trading conditions
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Construction builds up demand
  • Global trade activity increases
  • Industry structure
  • Table: Logging Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Logging Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Sawmills & Wood Production
  • Wood Pulp Mills

  • Key Selling Industries
  • Automobile Wholesaling
  • Consumers
  • Farm, Lawn & Garden Equipment Wholesaling
  • Heavy Equipment Rental
  • Public Administration

  • Products & Services
  • Softwood logs and bolts
  • Hardwood logs and bolts
  • Pulpwood
  • Other products
  • Chart: Logging Industry Products and Services Segmentation

  • Demand Determinants
  • The housing market
  • Environmental concerns
  • The electronic age

  • Major Markets
  • Sawmills
  • Pulp mills
  • Exports
  • Other
  • Chart: Major Market Segmentation for the Logging Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and utilities
  • Depreciation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Logging

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Logging Industry

  • Industry Globalization
    Weyerhaeuser Co.,
  • Table: Weyerhaeuser Co. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Logging Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Logging Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Value of residential construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Bolt
  • A short, round section of a log.
  • Hardwood
  • Wood from broad-leaved trees, often used for construction, flooring and furniture.
  • Oriented Strand Board
  • An engineered wood product, similar to plywood but cheaper, formed by layering strands of wood.
  • Pulpwood
  • Timber grown with the purpose of making pulp for paper production.
  • Sawlog
  • The greater-in-diameter and straighter part of a tree stem processed at a sawmill; the most financially valuable part of a tree.
  • Softwood
  • Wood from coniferous trees that is water-resistant and generally used for millwork, building components and furniture.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Logging Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Logging industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Logging:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Logging market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Logging, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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