Operators in the Sawmills and Wood Production industry primarily produce lumber; therefore, industry performance relies heavily on sales to the residential and nonresidential construction markets. As the construction sector faltered during the subprime mortgage crisis and subsequent recession, demand for lumber to frame houses and support other structures dramatically declined. In recent years, the construction sector has started to recover as consumers gain employment, businesses earn more revenue and banks ease lending. In the coming years, revenue is forecast to rise as the construction sector, particularly the housing market, continues to improve. Additionally, remodeling activity will rise as home values and disposable incomes trend upward.
Companies in this industry primarily saw dimension lumber, boards, beams, bolts, poles, shingles, siding and wood chips from logs. Industry operators also chemically treat lumber to preserve and protect it from fire, moisture, mold and insects. This industry excludes establishments that plane purchased lumber and manufacture shapes, veneer and engineered lumber products and cut and transport timber.
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.