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Logging in the US - Industry Market Research Report

Logging in the US - Industry Market Research Report

  • February 2018
  • 38 pages
  • ID: 167858

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Knock on wood: Construction activity is expected to strengthen, supporting industry revenue

Abstract

Logging in the US
The Logging industry has experienced modest growth over the past five years. Since the majority of industry products, including woodchips, wood pulp and sawlogs, are used to manufacture lumber and wood panel products for the residential construction market, construction activity largely determines industry performance. Over the five years to 2018, rising values of both residential and nonresidential construction have driven industry revenue growth, largely offsetting weaknesses in other downstream markets. Demand conditions for the industry are expected to continue improving through 2023. Growth in both the residential and nonresidential construction markets is forecast to continue in coming years, boosting sawlog sales. Nevertheless, declining sales from paper mills and weakened foreign demand for industry goods due to the still-strong US dollar will temper revenue growth.

Logging companies buy and lease log-harvesting equipment and vehicles and use them to fell trees. The trees are then transported as sawlogs to sawmills and pulp mills. The industry excludes breeding, planting or growing trees; companies that provide these services are classified under the Timber Services industry (IBISWorld report 11311). Companies that truck timber are categorized under Local Specialized Freight Trucking (48422).

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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