Lumbering on: The industry benefits from growing demand for lumber
Sawmills & Wood Production in Canada
Sawmill and wood producers in Canada have experienced revenue growth throughout 2023. The industry has experienced complicated operating conditions due to the lingering effects of several wildfires in the area and the spread of COVID-19. The industry has experienced strong demand from key downstream consumers during most of the period, such as the US housing market, which is the largest buyer of industry goods. But increased operating costs related to a fibre shortage and volatile exports are expected to reduce industry profit. Profit, measured as earnings before interest and taxes, is expected to decrease, accounting for 7.2% in 2023. While volatile downstream demand and difficult operating conditions toward the end of the period have somewhat constrained growth, industry revenue is still forecast to rise at a CAGR of 4.1% over the past five years and is expected to total $28.4 billion in 2023, when revenue will fall by an estimated 7.0%.
The Sawmills and Wood Production industry in Canada manufactures a range of wood products, including boards; rough, dressed or dimension lumber; fuelwood; timber; poles; and ties, from logs and bolts. The industry also includes enterprises that preserve wood.
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.