Knock on wood: Positive construction market conditions will support industry revenue growth

Despite the presence of several buyers, residential construction and retailers remain the single largest sources of demand for the Lumber Wholesaling industry. Improved downstream demand has caused an increase in lumber prices, raising selling prices and buoying both revenue and profit over the five-year period. However, despite improving demand conditions, the overall number of companies in the industry has fallen, triggered by the exit of numerous small-scale operators and consolidation among the larger and more successful incumbents. Nevertheless, the industry remains highly fragmented with a low market share concentration. The majority of lumber wholesalers still work alone or employ fewer than five people and operate within a localized radius...purchase to read more.

Industry Statistics & Market Size
Revenue
$95bn
Annual Growth 12-17
4.9%
Forecast Growth 17-22
Profit
Employment
119,404
Businesses
10,217
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Improved demand has pushed lumber prices up, raising selling prices and buoying both revenue and profit
  • Metal products are generally becoming more popular
  • Private spending on home improvement is forecast to grow over the outlook period
  • Industry Report - Industry Products Chapter

    Wholesaling lumber and boardsIndustry operators generate an estimated 36.6% of total revenue from the distribution of lumber and boards. Lumber is supplied rough, finished or dressed. Rough or untreated lumber is the primary material used in making furniture and is normally available in hardwood varieties. Finished lumber is supplied in standard sizes and is primarily sold for residential, commercial and industrial construction applications. The price of lumber has increased rapidly over the past five years, with the exception of 2015, thanks in large part to a strong recovery in residential building activity. With the price of sawmill lumber expected to climb in 2017, this segment is anticipated to remain the largest in the industry...purchase to read more.

    Additional Insights for the Lumber Wholesaling Industry

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

  • Guaranteed supply of key inputs
  • Ability to control stock on hand
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Housing starts and Value of private nonresidential construction in the Lumber Wholesaling industry impact industry performance..

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    What's in this report

    What is the Lumber Wholesaling Industry?

    This industry distributes a range of lumber, plywood, millwork and wood panel products to contractors, home improvement stores and hardware stores. The industry does not include wholesalers that distribute nonwood roofing and siding materials, nor does it include establishments that distribute timber and timber products, such as railroad ties, logs, firewood and pulpwood. However, it does include distributors of nonwood doors, windows and frames and distributors of metal millwork.

    Industry Products
  • Wholesaling lumber and boards
  • Wholesaling wood millwork
  • Wholesaling plywood and panels
  • Industry Activities
  • Wholesaling lumber and boards
  • Wholesaling millwork
  • Wholesaling soft plywood and oriented strand board
  • Wholesaling other wood panel products
  • 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
  • Value of private nonresidential construction
  • Demand from lumber and building material stores
  • Price of sawmill lumber

  • Current Performance
  • Construction and remodeling
  • Consumer preferences
  • Prices and profit margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Ongoing demand from construction markets
  • Metals and nonwood products
  • Stagnant industry profit and consolidation
  • Table: Lumber Wholesaling Industry Revenue Outlook

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

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

  • Key Selling Industries
  • Millwork
  • Sawmills & Wood Production
  • Wood Paneling Manufacturing

  • Products & Services
  • Wholesaling lumber and boards
  • Wholesaling wood millwork
  • Wholesaling plywood and panels
  • Other
  • Chart: Lumber Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Construction Market
  • Other Wholesalers
  • Manufacturers and other markets
  • Chart: Major Market Segmentation for the Lumber Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Lumber Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Lumber Wholesaling 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 Lumber Wholesaling 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 Lumber Wholesaling 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
    Fiberboard
  • An engineered wood product made from combining wood fibers, resins and adhesive agents. Common types include particleboard, medium-density fiberboard and hardboard.
  • Millwork
  • Woodwork such as doors, windows, flooring and dimension stock.
  • Molding
  • An ornamentally shaped outline used as an architectural feature, used to cover transitions between surfaces or for decorative purposes. Traditionally made from solid milled wood.
  • Plywood
  • An engineered wood product consisting of thin sheets of wood (i.e. plies or wood veneers), layered to varying thickness and widely used for flexibility and strength.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Lumber Wholesaling is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

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

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