With a huff and a puff: Falling house construction demand is chopping down revenue
Operators in the Forestry and Logging industry have faced a difficult operating environment as COVID-19 disrupted operations, limited timber prices, pushed up input costs and created volatility in export demand. Downstream wood product manufacturers struggled during the pandemic, while rising interest rates and soaring construction costs have weighed on housing construction activity. Slowdowns in these two key domestic downstream industries contributed to revenue declining by an annualised 3.3% over the five years through 2023-24, to reach an expected $6.7 billion. Rising input costs have also led to a slight decline in profit margins to 24.2%, despite coming off a low base year in 2018-19. However, revenue is expected to grow by a modest 0.5% in 2023-24.
Industry firms own and operate log forestry plantations, or provide contract logging services for forestry owners. Industry players also hew and shape logs at logging sites. Forestry support services such as pest management 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:
- Kaingaroa Timberlands Limited
- Matariki Forestry Group
Methodology
LOADING...