Forest Support Services in the US
Operators in the Forest Support Services industry are hired by both government agencies and private companies for forestry support services performed on public and private land. Operators may assist in various activities, including timber estimation, forest firefighting, pest control, reforestation and forestry consulting. Demand for support services depends on the level of forestry activity in downstream industries and on these markets' propensity to outsource operations to auxiliary companies. Forestry activity has been on the rise due to strong residential construction growth and renewed demand for lumber. Furthermore, growth in support for firefighting services due to a slew of wildfires in the Western United States over the five years in 2019 also benefited industry operators. The industry is highly fragmented due to the vast majority of companies being nonemployers contracted on a seasonal basis. Timber tract and logging operators have been relying less on support services over the previous decade, undercutting demand and profitability, measured as earnings before interest and taxes, for industry establishments and causing them to further fragment. Despite renewed momentum for forest firefighting and pest control services, key markets will continue to reduce their demand for the industry's main revenue-generating support services, such as timber estimation and forestry research and consulting.
Operators in this industry assist downstream timber and logging operators in timber valuation, forestry economics and forest protection. Key support activities include the estimation of timber, forest firefighting, forest pest control and reforestation. Companies may also provide clients with consultation and research services.
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.
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