Window of opportunity: Rising remodeling activity will boost industry demand

Over the five years to 2018, the Millwork industry's performance has been uneven. The industry manufactures wood-based architectural products such as doors, windows and flooring. Nearly 90.0% of industry products are used in residential construction, split evenly between new housing construction and renovations. Housing starts surged just prior to the period; since industry products are typically used in later stages of construction, this led to particularly strong growth at the outset of the period. Despite consistent growth in home improvement spending, the industry has since been beset by higher competition from imports and substitutes, which has limited price growth, tempered sales and led to several years of industry declines...purchase to read more.

Industry Statistics & Market Size
Revenue
$27bn
Annual Growth 13-18
1.5%
Forecast Growth 18-23
Profit
Employment
107,762
Businesses
3,356
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry has been challenged by rising competition from wood substitute products
  • The rising use of substitute products has hurt industry demand
  • Imports are anticipated to continue increasing over the next five years
  • Industry Report - Industry Locations Chapter

    The Millwork industry has a similar geographic distribution to other wood manufacturing industries. The majority of industry establishments are located in the Southeast, Great Lakes, West and Mid-Atlantic regions. Industry operators typically choose to locate near upstream industries, such as sawmills and wood paneling manufacturers, to keep transportation costs down. In addition, millwork companies locate near major consumer markets because the majority of products are purchased for the residential construction market.SoutheastIn 2018, the Southeast region accounts for 27.9% of industry facilities. Florida is the largest producer in the region, accounting for 4.7% of industry revenue, although industry establishments are distributed throughout the region. The...purchase to read more.

    Additional Insights for the Millwork Industry

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

  • Access to highly skilled workforce
  • Having contacts within key markets
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Housing starts and Homeownership rate in the Millwork industry impact industry performance..

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    What's in this report

    What is the Millwork Industry?

    This industry manufactures hardwood and softwood cut stock and dimension stock (lumber and worked wood products cut or shaped into specific sizes); wood windows and doors; and other millwork including wood flooring. The reshaped wood products are sold mainly to housing and other building construction industries and their contractors, in addition to other wood product distributors.

    Industry Products
  • Wood windows and doors
  • Cut stock, resawed lumber and planed lumber
  • Flooring and other millwork products
  • Industry Activities
  • Wooden window
  • Wooden door
  • Wooden floor
  • Specialized lumber cutting and shaping
  • 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
  • Homeownership rate
  • Per capita disposable income
  • Value of private nonresidential construction
  • External competition for the Millwork Industry
  • Value of residential construction

  • Current Performance
  • Construction trends
  • Competition from substitutes
  • International trade
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • International trade
  • Growing profitability
  • Table: Millwork Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Home Builders
  • Apartment & Condominium Construction
  • Industrial Building Construction
  • Lumber Wholesaling
  • Home Improvement Stores
  • Hardware Stores
  • Lumber & Building Material Stores
  • Commercial Building Construction
  • Municipal Building Construction

  • Key Selling Industries
  • Electric Power Transmission
  • Sawmills & Wood Production
  • Wood Paneling Manufacturing

  • Products & Services
  • Wood windows and doors
  • Flooring and other millwork products
  • Cut stock, resawed lumber and planed lumber
  • Chart: Millwork Industry Products and Services Segmentation

  • Demand Determinants
  • Residential construction
  • Nonresidential construction
  • Consumer preferences

  • Major Markets
  • Residential repair and remodeling
  • New residential construction
  • Nonresidential construction
  • Exports
  • Chart: Major Market Segmentation for the Millwork Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Millwork 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 Millwork 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)
  • Housing Starts (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Cut Stock
  • Wood products cut or shaped to specific sizes.
  • Dimension Stock
  • Hardwood lumber that has been manufactured to specific dimensions for a particular user.
  • Hardwood
  • Wood from broadleaved trees that is used for construction, flooring and furniture.
  • Millwork
  • Woodwork products, such as doors, doorframes, window casings and floorboards.
  • Softwood
  • Wood from coniferous trees that is resistant to water and used for millwork, building components and furniture.
  • What Our Customers Say

    Why buy this report?

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    This report on Millwork:
    • 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 Millwork 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 Millwork, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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