Logging in the US - Industry Market Research Report

Clear cut: Demand from residential construction will fall as rising interest rates deflate demand for housing

The Logging industry has exhibited a decrease in revenue over the five years to 2023. Industry trends are typically driven by movements in core downstream subsectors, such as nondurable goods manufacturing, which demand wood pulp as an input in paper and paper product manufacturing, and by levels of construction. Due to the pandemic and a shift to a work-from-home model, demand from paper manufacturers and offices declined, holding industry revenue growth back as demand for other pulp products such as sanitary products skyrocketed. On the other hand, after an initial pullback in residential construction activity, a booming real estate subsector and surging demand for softwood lumber as a homebuilding material tempered declines in industry revenue in 2020 and 2021 before rising interest rates tempered the residential construction market. As a result, industry revenue is anticipated to have fallen at a CAGR of 2.6% to reach $15.0 billion in 2023, with industry revenue falling an estimated 5.7% in 2023 alone, when industry profitability is expected to have also fallen as wage's share of revenue has grown.

Logging companies buy and lease log-harvesting equipment and vehicles and use them to fell trees. The trees are then transported as sawlogs to sawmills and pulp mills. The industry excludes breeding, planting or growing trees; companies that provide these services are classified under the Timber Services industry (report 11311). Companies that truck timber are categorized under Local Specialized Freight Trucking (48422).

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.