Planing ahead: Competition from substitutes and imports is expected to remain intense

Over the past five years, construction activity and the number of residential property transactions increased, which supported industry demand. Furniture manufacturing and wooden container manufacturing activity also increased over the past five-year period, which supported revenue and boosted demand because these are important markets for the industry. Technological advances, the introduction of new products and new revenue streams have also supported industry growth to some extent. However, rising import competition and growing competition from substitute products curtailed the industry's growth. Industry performance was also affected by volatility in the price of timber. Revenue is expected to increase at a compound annual rate of 2.6% over the five years through 2018-19...read more.

Industry Statistics & Market Size
Revenue
£1.5bn
Annual Growth 14-19
2.6%
Forecast Growth 19-24
Profit
Employment
9,564
Businesses
536

Industry Threats & Opportunities

  • The fall in the value of the pound is likely to restrict growth in import penetration
  • Operators have been increasingly exposed to substitution from manufactured wood
  • Firms are expected to benefit from the National Infrastructure and Construction Pipeline
  • Industry Report - Industry Key Buyers Chapter

    The industry exhibits a low level of market share concentration. The four largest players in the industry are expected to have a combined market share of 29.9% in 2018-19. BSW Timber Ltd and James Jones & Sons Ltd are the only two firms with greater than 5% market share. All other players have individual market shares of less than 3% and cannot individually exert much influence on the industry as a whole.The industry consists of several small players operating in narrow regional markets, typically close to forests. According to the most recent establishment figures from the ONS in 2017, approximately 84.2% of firms operating in the industry employed fewer than 20 employees. The...purchase to read more.

    Additional Insights for the Sawmilling & Wood Planing Industry

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

  • Ability to accommodate environmental requirements
  • Upstream vertical integration (ownership links)
  • Ability to expand and curtail operations rapidly in line with market demand
  • IBISWorld analysts also discuss how external factors such as Demand from residential building construction and Demand from commercial building construction in the Sawmilling & Wood Planing industry impact industry performance..

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    What's in this report

    What is the Sawmilling & Wood Planing Industry?

    Firms in this industry saw and plane wood in preparation for use in construction, furniture and unassembled flooring manufacturing, heating, power generation, fencing, pallets and as railway sleepers. Kiln drying timber and impregnating wood with preservatives and other chemicals activities are also included in the industry.

    Industry Products
  • Structural sawnwood timber
  • Joinery sawnwood timber
  • Hardwood timbers (veneers and furniture)
  • Fencing and outdoor timber
  • Timber for pallets and packaging
  • Industry Activities
  • Sawing, planing and machining wood
  • Drying of wood (naturally or in a kiln)
  • Impregnation or chemical treatment of wood with preservatives or other substances
  • Slicing, peeling and chipping logs
  • wooden railway sleepers
  • unassembled wooden flooring
  • wood wool, wood chip, wood flour and particles
  • 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
  • Demand from office and shop furniture manufacturing
  • Demand from wooden container manufacturing
  • Real effective exchange rate

  • Current Performance
  • Construction drives growth
  • Demand and developments
  • External competition
  • Current concerns
  • Market structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Residential growth
  • Non-residential growth
  • Other revenue opportunities
  • Future challenges
  • Profit and market structure
  • Table: Sawmilling & Wood Planing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Veneer Sheet & Wood-Based Panel Manufacturing
  • Carpentry & Joinery Product Manufacturing
  • Wooden Container Manufacturing
  • Construction

  • Key Selling Industries
  • Forestry & Logging
  • Organic Basic Chemical Manufacturing
  • Pesticide & Other Agrochemical Manufacturing

  • Products & Services
  • Structural sawnwood timber
  • Joinery sawnwood timber
  • Fencing and outdoor timber
  • Timber for pallets and packaging
  • Other
  • Hardwood timbers (veneers and furniture)
  • Chart: Sawmilling & Wood Planing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Timber wholesalers and merchants
  • Downstream wood product manufacturers
  • Exports
  • Direct sales
  • Residue for woodchips
  • Chart: Major Market Segmentation for the Sawmilling & Wood Planing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Sawmilling & Wood Planing

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

  • Industry Globalization
    BSW Timber Ltd, James Jones & Sons Ltd,
  • Table: BSW Timber Ltd - financial performance
  • Table: James Jones & Sons Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Sawmilling & Wood Planing 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 Sawmilling & Wood Planing 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
    Conifer
  • Trees, such as pines and firs, that bear cones and have evergreen needle-like leaves. Conifers are the key source of softwood and are rich in resins.
  • Hardwood
  • This wood comes from broadleaf or angiosperm trees. The category includes wood from many different species. It may not be harder than softwood varieties.
  • Softwood
  • Wood that comes from coniferous trees.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Sawmilling & Wood Planing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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
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    This report on Sawmilling & Wood Planing:
    • 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 Sawmilling & Wood Planing 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 Sawmilling & Wood Planing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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