Cut it out: Limited timber supplies will prevent the industry from achieving stronger growth

Over the five years to 2017, the Sawmills and Wood Production industry in Texas has performed largely in line with the national industry. Demand for industry products is closely tied to the performance of residential construction markets, which have exhibited strong growth over the past five years. In turn, construction companies, lumber wholesalers and downstream manufacturers of value-added wood products have increased their purchase of sawmill lumber. Industry revenue has also been aided by growth in selling prices. Over the five years to 2022, the Sawmills and Wood Production industry in Texas will continue to perform largely in line with the national industry...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 12-17
5.1%
Forecast Growth 17-22
Profit
Employment
2,981
Businesses
294

Industry Threats & Opportunities

  • Demand for industry products is closely tied to the performance of residential construction markets
  • The state industry has performed roughly in line with the national industry, despite a relatively slow new housing market
  • Over the next five years, housing starts are forecast to rise at almost double the national rate
  • Industry Report - Industry Investment Chapter

    The Sawmills and Wood Production industry in Texas exhibits a moderate level of capital intensity. For every dollar industry operators spend on labor, they invest an average $0.20 on capital. Industry operators invest in computer systems, distribution trucks, head saws, planers, debarkers and edgers, among other machinery and equipment. Depreciation expenses alone are moderate, accounting for an estimated 2.3% of revenue. However, much of the production process is automated, and sawmills also have relatively low labor requirements, with wages estimated to account for only 11.4% of industry revenue in 2017. Capital intensity has increased over the past five years, with depreciation expenses remaining relatively steady and the relative cost of wages declining...purchase to read more.

    Additional Insights for the Sawmills & Wood Production in Texas Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Sawmills & Wood Production in Texas 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 Housing starts in Texas and Value of residential construction in Texas in the Sawmills & Wood Production in Texas industry impact industry performance..

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    What's in this report

    What is the Sawmills & Wood Production in Texas 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 operators that plane purchased lumber and manufacture shapes, veneer and engineered lumber products and cut and transport timber.

    Industry Products
  • Softwood lumber
  • Hardwood lumber
  • Wood chips
  • Wood preservation
  • Industry Activities
  • Sawing hardwood logs
  • Sawing softwood logs
  • Preserving lumber with chemicals and resins
  • 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 in Texas
  • Value of residential construction in Texas
  • Trade-weighted index
  • Price of sawmill lumber
  • Value of private nonresidential construction in Texas

  • Current Performance
  • Demand growth
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Slowing demand
  • International trade
  • Industry structure
  • Table: Sawmills & Wood Production in Texas Industry Revenue Outlook

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

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

  • Residential construction and remodeling
  • Nonresidential construction and remodeling
  • Furniture manufacturing
  • Substitute products

  • Major Markets
  • Lumber wholesalers
  • Pulp and paper mills
  • Millwork producers
  • Veneer, plywood and engineered wood producers
  • Chart: Major Market Segmentation for the Sawmills & Wood Production in Texas Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Georgia-Pacific LLC, West Fraser Timber, Snider Industries LLP, Steely Lumber Co. Inc.,
  • Table: Georgia-Pacific LLC - financial performance
  • Table: West Fraser Timber - financial performance
  • Table: Snider Industries LLP - financial performance
  • Table: Steely Lumber Co. Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Sawmills & Wood Production in Texas 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 Sawmills & Wood Production in Texas Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Housing starts in Texas (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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 less expensive, 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.
  • What Our Customers Say

    Why buy this report?

    The Sawmills & Wood Production in Texas industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

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

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