Industry Analysis & Industry Trends
In the five years to 2014, demand for timber has grown after falling to a recessionary low in 2009. Growth in residential construction in North America, as well as China, has stoked the flames for this growth, resulting in an increase in industry revenue. However, a mountain pine beetle epidemic in the Boreal forests of western Canada has killed or damaged large swaths of trees in the region, depleting the value of Canadian timber produced by the industry, stifling revenue growth. In the five years to 2019, the Logging industry is expected to continue growing, mostly due to increased demand for construction lumber. Nevertheless, depleted forests and a continued decline in demand from paper mills will hinder growth... purchase to read more
Industry Report - Industry Investment Chapter
The Logging industry has a relatively high level of capital intensity. Capital investment is mainly in vehicles and logging equipment. Typical logging equipment includes logging trucks, chippers, stump cutters, log skidders, log splitters, delimbers, grinders and saws. Investment in capital equipment declined in the early part of the past five years as demand was depressed, and operators had more equipment than they could use. However, as production picked back up, companies were more likely to invest in capital equipment to mechanize their businesses, relying less on a large staff of specialized workers.
Although capital investment declined, industry operators also reduced labour expenses over the past five years... purchase to read more