Knock on wood: Domestic and international demand for lumber will boost the industry

The Sawmills and Wood Production industry in Canada has experienced strong revenue growth over the five years to 2019. The industry has experienced complicated operating conditions due to the lingering effects of the mountain pine beetle infestation in British Columbia merchantable pine in the region by the end of 2017. The industry has experienced strong demand from key downstream customers such as the US housing market. The total Canadian fibre harvest has grown slightly since 2014, although it is still nowhere near its peak years prior to the mountain pine beetle epidemic. In response, many operators have pursued acquisitions to boost their total wood supply to increase more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Rising nonresidential construction and renovation expenditure will bolster domestic demand for lumber
  • Overall housing starts have been volatile in Canada
  • The majority of revenue will continue to be generated by sales to export markets
  • Industry Report - Industry Key Buyers Chapter

    The Sawmills and Wood Production industry in Canada has a relatively low level of concentration. The four largest companies in the industry, Canfor Corporation, West Fraser Timber Co. Ltd., Western Forest Products Inc. and Resolute Forest Products Inc., are expected to account for a combined market share of 39.1% in 2019. All of the biggest players in the industry are large vertically integrated forest products companies, as they all have significant logging operations, and many operate several sawmills and pulp or paper mills...purchase to read more.

    Additional Insights for the Sawmills & Wood Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Sawmills & Wood Production Industry are

  • Prompt delivery to market
  • Upstream vertical integration
  • Access to the most efficient sawmill technology and techniques
  • IBISWorld analysts also discuss how external factors such as Canadian effective exchange rate index and Housing starts in the Sawmills & Wood Production industry impact industry performance..

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    What's in this report

    What is the Sawmills & Wood Production Industry?

    This industry manufactures a range of wood products, including boards; rough, dressed or dimension lumber; fuelwood; timber; poles; and ties, from logs and bolts. The industry also includes establishments that preserve wood.

    Industry Products
  • Softwood lumber
  • Hardwood lumber
  • Wood chips
  • Wood product preservation
  • Industry Activities
  • Sawing and planing hardwood logs
  • Sawing and planing softwood logs
  • Preserving or treating 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
  • Canadian effective exchange rate index
  • Housing starts
  • Value of nonresidential construction
  • Residential renovation expenditure

  • Current Performance
  • Strong export markets fuel demand
  • Canadian markets
  • Industry consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand from export markets
  • Domestic markets
  • Lingering complications from the mountain pine beetle epidemic
  • Industry landscape
  • Table: Sawmills & Wood Production Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Wood Panelling Manufacturing in Canada
  • Millwork in Canada
  • Lumber Wholesaling in Canada
  • Wood Pulp Mills in Canada

  • Key Selling Industries
  • Construction Machinery Manufacturing in Canada
  • Logging in Canada
  • Organic Chemical Manufacturing in Canada
  • Plastic & Resin Manufacturing in Canada

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

  • Demand Determinants
    Major Markets
  • Exports
  • Lumber wholesalers
  • Wood panelling producers
  • Millwork producers
  • Wood pulp mills
  • Chart: Major Market Segmentation for the Sawmills & Wood Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationRent and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Sawmills & Wood Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sawmills & Wood Production Industry

  • Industry Globalization
    Canfor Corporation, West Fraser Timber Co. Ltd., Resolute Forest Products Inc., Western Forest Products Inc.,
  • Table: Canfor Corporation - financial performance
  • Table: West Fraser Timber Co. Ltd. - financial performance
  • Table: Resolute Forest Products Inc. - financial performance
  • Table: Western Forest Products Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Sawmills & Wood Production 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 Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Canadian-dollar Effective Exchange Rate Index (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Softwood Lumber
  • The primary kind of lumber produced by the industry. Softwood lumber includes pine, spruce, fir and other coniferous trees.
  • Stumpage
  • The fee associated with timber tenures. Stumpage rates vary by the value of the tract and are usually determined at tract auctions.
  • Timber Tenure
  • A licence granted by provinces that enables certain tracts of timber land to be harvested for a certain length of time.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Sawmills & Wood Production market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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    This report on Sawmills & Wood Production:
    • 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 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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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