Barking up the wrong tree: Weak domestic demand and trade have the industry logging poor performance
The Forestry and Logging industry has endured challenging operating conditions in recent years, in response to weak downstream demand. Harvesting volumes have tumbled and downstream demand across key markets has fallen, contributing to a drop in industry profit margins. In particular, lower demand from log sawmilling and drops in residential building construction have contributed to several years of dwindling revenue. But a climbing domestic price of timber has benefitted forestry and logging firms, offsetting further drops in revenue in recent years. Industry exports have plummeted in recent years. This trend is mainly attributed to supply chain disruptions associated with the pandemic and a trade dispute with China since late 2020 over pests allegedly found in previous log imports into China from Australia. Overall, industry revenue has been sinking at an average annualised 8.0% over the past five years and is expected to total $3.6 billion in 2022-23. This includes an anticipated drop of 4.2% in 2022-23 alone.
Companies in the industry manage and log native forest and timber plantations. The industry also provides related services such as timber hewing and shaping. Forestry support services such as pest management and forest planting are excluded from the industry.
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 key players and their market shares.
Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Hancock Victorian Plantations Holdings Pty Limited
- Forestry Corporation of NSW
- Hancock Queensland Plantations Pty Limited
Methodology
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