The Logging industry is strongly tied to activity in the downstream housing market, therefore, when the residential construction market began to recover during the five years to 2014, industry revenue benefited. In addition, exports have exhibited phenomenal growth, most of which has come from China, boosting industry demand. In the five years to 2019, demand conditions for the Logging industry are expected to continue improving. Demand will be driven by strong growth in the number of housing starts and home improvement spending. However, paper manufacturing, another major buyer of wood products, is forecast to slow over the next five years due to the continued trend toward electronic communication, threatening 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; as a result, companies are classified under the Timber Services industry (IBISWorld industry report 11311). Companies that truck timber are categorized under Local Specialized Freight Trucking (IBISWorld industry report 48422).
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.