Budding demand: Increasing construction activity has supported industry revenue growth

The Forestry and Logging industry encompasses numerous activities that take place throughout the woodland areas of the United Kingdom, with a large proportion of industry activity being concentrated in Scotland. The main activities of the industry include the planting of new trees, the management and maintenance of forested areas, and the felling and production of logs and poles. Over the past five years, the industry's performance has been strengthened by rising demand from sawmills and an overall increase in construction activity.Industry revenue is forecast to grow at a compound annual rate of 4.5% over the five years through 2018-19 to reach £1.3 billion...read more.

Industry Statistics & Market Size
Revenue
£1.3bn
Annual Growth 14-19
4.5%
Forecast Growth 19-24
Profit
Employment
17,566
Businesses
4,042

Industry Threats & Opportunities

  • Demand from sawmills and construction activity strengthens industry performance
  • Growing demand has encouraged new firms to enter the industry, boosting enterprise numbers
  • Increased tree planting would support revenue, but weak economic conditions may threaten this
  • Industry Report - Industry Key Buyers Chapter

    The industry has a low level of market share concentration, with the four largest firms estimated to account for 18% of revenue in 2018-19. The industry is fragmented in its composition, with a large proportion of operators being sole traders or small businesses employing a very small number of workers. According to the Office for National Statistics, in 2017, 84% of enterprises in the industry employed fewer than five people. In contrast, only 0.2% of operators employed 50 or more people. Over the past five years, the industry's market share concentration is anticipated to have remained relatively stable.Market share concentration is expected to remain steady over the next five years as the level of mergers and acquisitions in the industry remains minimal. Mor...purchase to read more.

    Additional Insights for the Forestry & Logging Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Forestry & Logging Industry are

  • Ability to accommodate environmental requirements
  • Ability to clearly specify requirements to suppliers/contractors
  • Ability to attract local support/patronage
  • IBISWorld analysts also discuss how external factors such as Demand from sawmilling and wood planing and Real government consumption expenditure in the Forestry & Logging industry impact industry performance..

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    What's in this report

    What is the Forestry & Logging Industry?

    Firms in this industry are involved in a wide range of forestry and logging activities. These include growing standing timber in natural and planted forests; forest timber nursery operations; the logging and production of timber for wood-based manufacturing industries; the gathering of wild-growing, non-wood products, such as mushrooms, truffles, berries and nuts; and forestry support services, such as forestry inventories, management, consultancy, firefighting and pest control.

    Industry Products
  • New plantings
  • Restocking
  • Logging
  • Forestry support services
  • Industry Activities
  • Planting, replanting, transplanting, thinning and conserving of forests and timber tracts
  • Growing of coppice, pulpwood and firewood
  • Operating forest tree nurseries
  • Producing roundwood
  • Gathering and producing wood and forest harvesting residues for energy
  • Gathering wild non-wood products
  • Forestry support services
  • Logging support services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from sawmilling and wood planing
  • Real government consumption expenditure
  • Exchange rate - euros per pound
  • Real household disposable income
  • Timber price index
  • Total value of construction

  • Current Performance
  • Building demand
  • Enterprises and employment
  • Timber trade
  • Replanting margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Falling behind
  • Referendum effect
  • Branching out
  • Employment trends
  • Table: Forestry & Logging Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Forestry & Logging Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Sawmilling & Wood Planing
  • Veneer Sheet & Wood-Based Panel Manufacturing

  • Key Selling Industries
  • Agricultural & Forestry Machinery Manufacturing
  • Fertiliser & Nitrogen Compound Manufacturing

  • Products & Services
  • Restocking
  • New plantings
  • Forestry support services
  • Logging
  • Other
  • Chart: Forestry & Logging Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Government
  • Manufacturing and construction
  • Commercial
  • Agriculture
  • Households
  • Other
  • Chart: Major Market Segmentation for the Forestry & Logging 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 Forestry & Logging

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Forestry & Logging Industry

  • Industry Globalization
    Tilhill Forestry Ltd, Scottish Woodlands Ltd,
  • Table: Tilhill Forestry Ltd - financial performance
  • Table: Scottish Woodlands Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Forestry & Logging 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 Forestry & Logging Industry
    Includes:
  • 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)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Afforestation
  • Planting new woods and forests. This includes direct seeding or natural regeneration, planting Christmas trees or short rotation coppice.
  • Board Feet
  • A unit of volume for timber equal to 144 cubic inches.
  • Broadleaf
  • Broadleaf trees are hardwood plants with broad leaves.
  • Conifer
  • Conifers are cone-bearing softwood trees that usually have needle-like leaves.
  • Deforestation
  • Felling woodland to use the land for a different purpose.
  • Forestry Quarries
  • Quarrying to obtain materials required for forest road works on land that is used or will be used for forestry purposes.
  • Roundwood
  • Timber that has not been squared off by sawing or hewing. It can be used for poles.
  • Silviculture
  • The growing and cultivation of trees.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Forestry & Logging 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
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Forestry & Logging:
    • 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 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 Forestry & Logging 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 Forestry & Logging, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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