For the trees: Improved construction markets will benefit industry operators

The Timber Services industry manages tracts of timberland and sells standing timber to downstream wood, paper and pulp product manufacturing industries. Most timber is ultimately used in downstream residential construction markets; therefore, the industry has benefited over the past five years from robust growth in the US housing market. As unemployment has fallen and mortgage rates have remained low, housing starts have surged. Recovering downstream demand for timber has pushed up prices and profit over the past five years, encouraging many timber operators, particularly nonemploying, family-owned tracts, to sell stumpage rights and thus re-enter the industry...purchase to read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 12-17
4.8%
Forecast Growth 17-22
Profit
Employment
5,840
Businesses
2,885
Market Share of Companies

Industry Threats & Opportunities

  • Recovering downstream demand has pushed up prices and profit, encouraging operators to re-enter the industry
  • The residential construction market is the largest destination for timber
  • The residential construction market provides the largest source of demand for timber
  • Industry Report - Industry Locations Chapter

    Timber service providers are strongly concentrated in the Southeast region of the United States. The West holds the second-highest percentage of industry establishments, though it still lags far behind the Southeast. Industry operators choose to locate in a region based on the availability of forestland acres, as well as proximity to pulp, paper and wood product manufacturers. Access to export markets, though not technically classified within the industry, also influence location decisions given trade’s importance to the sale of standing timber.SoutheastThe Southeast region contains the majority of the industry’s establishments. In the Southeast, timber tract operators are heavily concentrated in Alabama and Georgia, which hold a respective 9.8% and 8.9% o...purchase to read more.

    Additional Insights for the Timber Services Industry

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

  • Proximity to transport
  • Appropriate physical growing conditions
  • Ability to accommodate environmental requirements
  • IBISWorld analysts also discuss how external factors such as Housing starts and Demand from wood product manufacturing in the Timber Services industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Timber Services Industry?

    The Timber Services industry manages timber tracts for the purpose of selling standing timber. A timber tract is a parcel of land used for growing timber for harvesting on a long rotation cycle (more than 10 years). The industry does not include Christmas trees, which are grown on short rotation cycles. This industry also does not include revenue from logging operations.

    Industry Products
  • Softwood
  • Hardwood
  • Industry Activities
  • Selling standing timber to logging operators
  • Planting seedlings
  • Pest control and firefighting services
  • Other timber maintenance services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Demand from wood product manufacturing
  • Demand from paper manufacturing
  • Price of sawmill lumber
  • Trade-weighted index

  • Current Performance
  • Demand and profit
  • Downstream competition
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Steady demand from housing
  • Threats to timberland
  • Industry structure
  • Table: Timber Services Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Logging
  • Sawmills & Wood Production
  • Wood Paneling Manufacturing
  • Millwork
  • Wood Product Manufacturing
  • Prefabricated Home Manufacturing
  • Wood Pallets & Skids Production
  • Wood Pulp Mills
  • Land Leasing
  • Public Administration

  • Key Selling Industries
  • Farm Supplies Wholesaling
  • Forest Support Services

  • Products & Services
  • Softwood
  • Hardwood
  • Chart: Timber Services Industry Products and Services Segmentation

  • Demand Determinants
  • The housing market
  • Going paperless
  • Going global
  • Legislation

  • Major Markets
  • Construction
  • Manufacturing
  • Packaging and shipping
  • Other
  • Chart: Major Market Segmentation for the Timber Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesLabor and capitalOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Timber Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Timber Services Industry

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Timber Services 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 Timber Services Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Price of sawmill lumber (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Hardwood
  • A tree that produces seeds that are encased in a fruit or hard shell. Examples include oak, maple, birch and willow trees.
  • Lumber
  • Wood, cut from timber, at any part of the manufacturing process.
  • Sawlog
  • The part of the tree that will be processed at a sawmill. It is the most financially valuable part of the tree.
  • Softwood
  • A tree that produces seeds that fall to the ground without an outer shell or fruit to encase them. Examples include pine, cedar and fir.
  • Timber Tract
  • A parcel of land used for the purpose of growing timber for harvesting on a long rotation cycle (more than 10 years).
  • What Our Customers Say

    Why buy this report?

    The Timber Services industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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 Timber Services:
    • 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 Timber Services 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 Timber Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear