Touch wood: Industry revenue should expand despite competition from substitute products

The industry has expanded during the past five years. Improvements in the housing market were largely responsible for growth, as it is the largest downstream market. Non-residential building construction activity also expanded and enhanced demand. However, the benefits to the industry were limited because larger commercial buildings tend to use structural components made from steel rather than wood. Meanwhile, real disposable income increased during the first two years of the period and raised demand for products sold directly to customers, such as garden sheds. Nevertheless, moderate import competition and rising competition from substitute products, such those made from steel or unplasticised polyvinyl chloride (uPVC), curtailed expansion...read more.

Industry Statistics & Market Size
Revenue
£5.2bn
Annual Growth 14-19
4.8%
Forecast Growth 19-24
Profit
Employment
47,680
Businesses
6,746

Industry Threats & Opportunities

  • Improvements in the housing market supported demand at the start of the period
  • The industry has had to contend with rising competition from substitute products
  • Growth in non-residential building construction activity should support demand for the industry
  • Industry Report - Industry Key Buyers Chapter

    The industry has a low level of market share concentration. The four largest manufacturers are estimated to account for 5.8% of industry revenue in 2018-19 and the biggest firm, JELD-WEN, generates only 2.1% of industry revenue. This indicates that no player has any significant influence on the overall industry. However, market share concentration can vary between product segments and geographic locations.The industry is characterised by plethora of small manufacturing firms that operate in narrow regional product markets. Its fragmentation is evident from the distribution of enterprises by employment size. In 2017, over 70% of enterprises employed fewer than five people and less than 1% of participants employed more than 100 people. The...purchase to read more.

    Additional Insights for the Carpentry & Joinery Product Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Carpentry & Joinery Product Manufacturing Industry are

  • Ability to manage external (outsourcing) contracts
  • Access to highly skilled workforce
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Demand from residential building construction and Demand from commercial building construction in the Carpentry & Joinery Product Manufacturing industry impact industry performance..

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    What's in this report

    What is the Carpentry & Joinery Product Manufacturing Industry?

    Industry participants manufacture various types of wooden goods that are mainly used in construction. These include doors, windows and frames, structural carpentry products such as beams and rafters, and prefabricated buildings like mobile homes. The manufacture of kitchen cabinets, bookcases, wardrobes and free-standing wooden partitions is excluded from the industry.

    Industry Products
  • Builders' joinery and carpentry
  • Doors, frames and thresholds
  • Prefabricated wooden buildings
  • Windows and frames
  • Industry Activities
  • wooden doors, windows, shutters and frames
  • wooden beams, rafters and roof struts
  • glue-laminated and metal-connected prefabricated wooden roof trusses
  • wooden stairs and railings
  • mobile homes
  • prefabricated buildings mainly made of wood
  • wood partitions (except free-standing partitions)
  • 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 residential building construction
  • Demand from commercial building construction
  • Real household disposable income
  • Real effective exchange rate

  • Current Performance
  • Demand expands
  • Growth limitations
  • Margins improve
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry expansion
  • Growth avenues
  • Potential disruptions
  • Profitability improves
  • Table: Carpentry & Joinery Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Carpentry & Joinery Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Commercial Building Construction
  • Residential Building Construction
  • Building Material Wholesaling
  • Holiday Accommodation
  • Consumers

  • Key Selling Industries
  • Construction Supplies Wholesaling
  • Glue & Adhesives Manufacturing
  • Sawmilling & Wood Planing
  • Veneer Sheet & Wood-Based Panel Manufacturing

  • Products & Services
  • Builders' joinery and carpentry
  • Doors, frames and thresholds
  • Prefabricated wooden buildings
  • Windows and frames
  • Other
  • Chart: Carpentry & Joinery Product Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Housing construction contractors and tradespeople
  • Non-residential building contractors and tradespeople
  • DIY homeowners
  • Other markets
  • Chart: Major Market Segmentation for the Carpentry & Joinery Product Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesThe cost of goods and materials used in the production process is estimated to account for 45.6% of industry revenue in 2018-19, which includes approximately 6.7% of revenue allocated to the purchase of goods for resale with no manufacturing value added by the industry (including packaging, locks and door handles). The principal material inputs include hardwood, softwood and veneer products, glues and adhesives, metal fasteners, paints, enamel, lacquer and PVC coating. The share of revenue absorbed by purchases registered an increase during the past five years, fuelled by the increase in UK timber prices from 2016-17 and the fall in the value of the pound following the EU referendum raising the cost of imported inputs. WagesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Carpentry & Joinery Product Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Carpentry & Joinery Product Manufacturing Industry

  • Industry Globalization
    JELD-WEN UK Ltd, James Walker (Leith) Ltd,
  • Table: JELD-WEN UK Ltd - financial performance
  • Table: James Walker (Leith) Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Carpentry & Joinery Product Manufacturing 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 Carpentry & Joinery Product Manufacturing 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
    Carbon Footprint
  • A carbon footprint is historically defined as the total set of greenhouse gas emissions caused by an individual or organisation.
  • Foil Door
  • A door manufactured using a wood effect foil pressed onto a timber frame.
  • Shingles
  • Wooden tiles used to cover roofs.
  • Shuttering
  • A temporary frame made of wood or metal used to mould concrete forms such as driveways, paths and stairs.
  • Unplasticised Polyvinyl Chloride (Upvc)
  • A strong, rigid plastic often used for manufacturing window frames and plumbing pipes.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Carpentry & Joinery Product Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Carpentry & Joinery Product Manufacturing:
    • 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 Carpentry & Joinery Product Manufacturing 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 Carpentry & Joinery Product Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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