Industry Analysis & Industry Trends
The industry has benefited over the past five years from robust growth in the US housing market. As a result, industry revenue is expected to increase. Recovering downstream demand for timber has pushed up prices and profit over the past five years, encouraging many timber operators to sell stumpage rights and thus re-enter the industry. As growth in housing demand returns to historic norms over the next five years, residential construction spending will be less able to offset weaknesses in other industry markets. Nevertheless, construction markets will remain the largest downstream market for timber, and their sustained expansion over coming years is anticipated to contribute to modest timber services growth... purchase to read more
Industry Report - Industry Analysis Chapter
Businesses in the Timber Services industry manage timber tracts and sell the standing timber to downstream paper, pulp and wood manufacturers, but do not engage in logging operations to harvest timber themselves. Since standing timber can be cut to make lumber, which is heavily used in home building, the majority of the industry’s products are destined for the residential housing market. Therefore, the industry has benefited over the past five years from a recovering US housing market, with revenue expected to grow at an average annual rate of 2.8% to $989.6 million over the five years to 2016, including 4.0% growth projected in 2016 alone, underpinned by a recovery in lumber prices.
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