Building up: Revenue will rise as home values and disposable incomes increase

IBISWorld’s Sawmills & Wood Production 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 Sawmills & Wood Production industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.


Industry Threats & Opportunities

  • Construction activity has bolstered demand for lumber and other wood products, raising industry revenue
  • Closures and workforce consolidation helped industry profit recover from the recession
  • The value of residential construction is the single largest indicator of downstream demand

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    Industry Analysis & Industry Trends

    The Sawmill and Wood Production industry's performance relies heavily on sales to the residential and nonresidential construction markets. In recent years, the number of new housing units and spending on home improvement projects both have increased tremendously. Stronger construction activity has bolstered demand for lumber and other wood products, raising industry revenue. Over the five years to 2022, revenue is forecast to rise at a more modest rate than the industry average over the five years prior. As interest rates are expected to creep up during the next five years, new developments and construction projects will become less affordable, slowing demand for industry products...

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    Industry Report - Industry Investment Chapter

    The Sawmills and Wood Production industry exhibits a moderate level of capital intensity. Depreciation, a proxy for capital expenditure, has been stable over the period, representing little change in equipment and system purchases. Wages as a percent of revenue declined 0.6% since 2012, even as production establishments employ more people. Companies are making more money per employee partly due to rising lumber prices and steady demand. Also, companies are continuing to improve their technological systems and networks (see below), which are extremely helpful in quality assurance and increasing production speeds.


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    Additional Insights for the Sawmills & Wood Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Sawmills & Wood Production Industry are

  • Ability to alter goods and services produced in favor of market conditions
  • Prompt delivery to market
  • Ability to alter mix of inputs in line with cost
  • IBISWorld analysts also discuss how external factors such as Value of residential construction and Housing starts in the Sawmills & Wood Production industry impact industry performance..

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    Industry Products

    What is the Sawmills & Wood Production Industry?

    Companies in this industry primarily saw dimension lumber, boards, beams, bolts, poles, shingles, siding and wood chips from logs. Industry operators also chemically treat lumber to preserve and protect it from fire, moisture, mold and insects. This industry excludes establishments that plane purchased lumber and manufacture shapes, veneer and engineered lumber products and cut and transport timber.

    Industry Products
    Hardwood lumber
    Softwood lumber
    Wood chips
    Wood product preservation
    Industry Activities
    Sawing hardwood logs
    Sawing softwood logs
    Preserving lumber with chemicals and resins

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Value of residential construction
  • Housing starts
  • Price of sawmill lumber
  • Value of private nonresidential construction
  • Trade-weighted index

  • Current Performance
  • Construction fuels demand
  • Exports and imports
  • Lumber prices
  • Industry participation declines and profit responds
  • Chart: Revenue Growth

  • Industry Outlook
  • Building up demand
  • Profit and participation rise
  • Exports keep growing
  • Table: Sawmills & Wood Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sawmills & Wood Production Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Wood Paneling Manufacturing
  • Millwork
  • Lumber Wholesaling
  • Home Improvement Stores

  • Key Selling Industries
  • Logging
  • Organic Chemical Manufacturing
  • Plastic & Resin Manufacturing
  • Power Tools & Other General Purpose Machinery Manufacturing

  • Products & Services
  • Softwood lumber
  • Wood product preservation
  • Other
  • Hardwood lumber
  • Wood chips
  • Chart: Sawmills & Wood Production Industry Products and Services Segmentation

  • Demand Determinants
  • Residential construction and remodeling
  • Nonresidential construction and remodeling
  • Furniture manufacturing
  • Paperless trends
  • Substitute products

  • Major Markets
  • Lumber wholesalers
  • Millwork producers
  • Wood paneling
  • Exports
  • Pulp mills
  • Chart: Major Market Segmentation for the Sawmills & Wood Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Sawmills & Wood Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sawmills & Wood Production Industry

  • Industry Globalization
    Major Companies
    Georgia-Pacific LLCWeyerhaeuser Co.
  • Table: Georgia-Pacific LLC - financial performance
  • Table: Weyerhaeuser Co. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Sawmills & Wood Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Sawmills & Wood Production Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Value of residential construction (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Gypsum Board
  • A board with a gypsum plaster core bonded to layers of paper or fiberboard and used instead of plaster or wood to make interior walls.
  • Hardwood
  • Wood from broadleaved trees used for construction, flooring, furniture and musical instruments.
  • Oriented Strand Board
  • Board composed of wood strands, bonded together in an arrangement that maximizes strength.
  • Particle Board
  • Manufactured in a similar way to oriented strand board, but with smaller wood shavings and chips for a cheaper, less durable product.
  • Pulpwood
  • Timber used for wood chips, oriented strand board and paper products.
  • Sawn Wood
  • Hardwood and softwood cut from logs and dried.
  • Softwood
  • Wood from coniferous trees that is resistant to water and used for millwork, building materials and furniture.
  • Stumpage Fee
  • The price charged by a landowner to companies or operators for the right to harvest timber on a plot of land.
  • Why buy this report?

    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 Sawmills & Wood Production:
    • 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 Sawmills & Wood Production 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 Sawmills & Wood Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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