Sawmills & Wood Production in the US
Over the five years to 2018, the number of new housing units and spending on home improvement projects have increased tremendously. Stronger construction activity has bolstered demand for lumber and other wood products, raising industry revenue. The Sawmills and Wood Production industry is so strongly connected to the residential and nonresidential construction industries that any significant increase or decrease in spending on construction has an almost identical effect on industry performance. During recessionary periods, consumer spending decreases as economic uncertainty increases, which causes people to hold off on home improvement projects or new home purchases. Over the five years to 2023, revenue is forecast to rise a more modest amount than the industry average over the past five years. As interest rates are expected to inch up over the next five years, new developments and construction projects will become less affordable, slowing demand for industry products. Additionally, the rise in borrowing costs will also cause a decline in remodeling projects, as these too become less affordable, which will also further decrease demand for industry products.
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.
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