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 Key Buyers Chapter
The Logging industry has a low level of market share concentration, with no single company holding more than 5.0% of the industry's revenue. The logging industry is for the most part highly localized. Companies normally deliver logs and other wood products to mills within a 200-mile radius, and the average establishment in the industry has about four workers.
Furthermore, much of the logging done in Canada is conducted on a contract basis. According to the latest data available from Statistics Canada, in 2013, 61.1% of industry establishments were loggers that operated on a contract basis, cutting timber on a fee, often from a downstream wood products manufacturer looking to outsource logging operations... purchase to read more