Rotting wood: Volatile domestic construction markets will limit industry growth

The Lumber Wholesaling industry in Canada purchases lumber, millwork and engineered wood products in bulk for distribution to downstream users such as construction contractors, home improvement stores and hardware stores. Products are primarily used for residential construction and renovation projects, though they also have applications in nonresidential construction and are necessary inputs for furniture manufacturers. Over the five years to 2019, domestic construction markets have been volatile. Traditionally, because the industry is not significantly involved in manufacturing or transforming its products, its value added to the supply chain is limited, which helps to keep industry profit margins more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • As prices have risen and less competitive operators have exited the industry, this has enabled profit to rise slightly
  • The industry has historically had low profit margins
  • Residential housing markets are forecast to remain tepid
  • Industry Report - Industry Key Buyers Chapter

    The Lumber Wholesaling industry in Canada exhibits very low market share concentration, with the top three companies expected to account for less than 10.0% of industry revenue in 2019. The industry is heavily fragmented, and is primarily composed of smaller companies focusing on their regional market. Almost 45.0% of total establishments are nonemploying sole proprietors, and of the establishments with employees, almost 90.0% have fewer than 20 workers, according to the latest data available from Statistics Canada.The relative fragmentation of industry operators is due to the necessity of being close to residential and nonresidential construction markets, which are geographically dispersed. Pro...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
  • Having contacts within key markets
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Housing starts and Residential renovation expenditure 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 roofing and siding materials that are not made out of wood, nor does it include establishments that distribute timber and timber products, such as logs and pulpwood.

    Industry Products
  • Lumber wholesaling
  • Engineered wood products wholesaling
  • Millwork wholesaling
  • Industry Activities
  • Lumber wholesaling
  • Millwork wholesaling
  • Engineered wood product wholesaling
  • 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
  • Residential renovation expenditure
  • Value of nonresidential construction
  • Price of wood products
  • Demand from cement and concrete product manufacturing

  • Current Performance
  • Construction market activity
  • Purchase costs limit profitability
  • A fragmented industry
  • Chart: Revenue Growth

  • Industry Outlook
  • Construction market activity
  • Uncertain lumber prices
  • Industry structure
  • 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
  • Homebuilders in Canada
  • Apartment & Condominium Construction in Canada
  • Hardware Stores in Canada
  • Commercial Building Construction in Canada
  • Remodelling in Canada

  • Key Selling Industries
  • Millwork in Canada
  • Sawmills & Wood Production in Canada
  • Wood Panelling Manufacturing in Canada

  • Products & Services
  • Lumber wholesaling
  • Engineered wood products wholesaling
  • Millwork wholesaling
  • Other
  • Chart: Lumber Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Other wholesalers
  • Construction contractors
  • Wood product manufacturers
  • Other
  • 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
    ProfitWagesPurchasesDepreciationMarketingRentUtilitiesOther costs
  • 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
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Value of residential construction (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • An engineered wood product made from combining wood fibres, resins and adhesive agents. Common types include particleboard, medium-density fibreboard and hardboard.
  • Millwork
  • Woodwork that has been machined at a mill, including doors, windows, flooring and dimension stock.
  • Plywood
  • An engineered wood product consisting of thin sheets of wood, layered to varying thickness and widely used for flexibility and strength.
  • What Our Customers Say

    Why buy this report?

    The Lumber Wholesaling market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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