Out of joint: Subdued demand from single-unit house construction has caused revenue to decline

The Carpentry and Joinery Timber Manufacturing industry has performed poorly over the past five years. Demand trends in downstream building markets have strongly affected the industry. The internal fit-outs of houses, apartments and non-residential buildings often require wooden doors, wardrobes and cupboards supplied by the industry. Manufacturers have faced subdued demand from the single-unit house construction market over the past five years, which represents the largest source of demand for industry products. Consequently, industry revenue is expected to decline at an annualised 4.4% over the five years through 2019-20, to total $2.8 billion. This trend includes an anticipated decrease of 5.0%...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 15-20
-4.4%
Forecast Growth 20-25
Profit
Employment
12,732
Businesses
2,244

Industry Threats & Opportunities

  • Growth in the domestic price of timber has increased industry purchase costs
  • Trends in new dwelling commencements indicate demand for products used for internal fit-outs
  • Domestic timber prices are forecast to increase, but this will not significantly affect profit
  • Industry Report - Industry Investment Chapter

    The Carpentry and Joinery Timber Manufacturing industry exhibits a medium level of capital intensity. For every dollar spent on capital costs, $7.28 is spent on wages. Larger firms have installed sophisticated machinery but remain reliant on skilled labour to operate the machinery and ensure products retain high-quality standards. Labour is also required in other areas of factory work, such as plant maintenance, management and administration. Small-scale operators tend to be more labour-intensive, eschewing significant capital investment and using workers to produce niche or customized items in lower volumes. Cap...purchase to read more.

    Additional Insights for the Carpentry and Joinery Timber Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Carpentry and Joinery Timber Manufacturing are:

  • Supply contracts in place for key inputs
  • Having contacts within key markets
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Demand from house construction and Demand from commercial and industrial building construction in the Carpentry and Joinery Timber Manufacturing industry impact industry performance..

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    What's in this report

    What is the Carpentry and Joinery Timber Manufacturing Industry?

    Industry operators primarily manufacture carpentry and joinery timber products, such as wooden doors, wooden window frames, prefabricated wooden panels and wooden cabinets.

    Industry Products
  • Wooden doors
  • Wooden window frames
  • Wardrobes and cupboards
  • Other joinery timber
  • Industry Activities
  • Wooden door
  • Wooden window frames
  • Wooden joinery
  • Prefabricated wooden panel
  • Wooden kitchen cabinet
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from house construction
  • Demand from commercial and industrial building construction
  • Demand from multi-unit apartment and townhouse construction
  • Domestic price of timber

  • Current Performance
  • Construction activity
  • Profitability and participation
  • External competition and imports
  • Chart: Revenue Growth

  • Industry Outlook
  • Building trends
  • Timber pricing
  • Product substitution
  • Table: Carpentry and Joinery Timber Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Carpentry and Joinery Timber Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • House Construction
  • Multi-Unit Apartment and Townhouse Construction
  • Timber Wholesaling
  • Commercial and Industrial Building Construction
  • Hardware and Building Supplies Retailing

  • Key Selling Industries
  • Log Sawmilling
  • Timber Resawing and Dressing

  • Products & Services
  • Wooden doors
  • Wooden window frames
  • Wardrobes and cupboards
  • Other joinery timber
  • Chart: Carpentry and Joinery Timber Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential building contractors
  • Non-residential building contractors
  • Retailers
  • Wholesalers
  • Other markets
  • Chart: Major Market Segmentation for the Carpentry and Joinery Timber Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Carpentry and Joinery Timber Manufacturing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Carpentry and Joinery Timber Manufacturing Industry

  • Industry Globalization
    Fletcher Building Limited, JELD-WEN Australia Pty Limited, Carter Holt Harvey Building Products Pty Limited,
  • Table: Fletcher Building Limited - financial performance
  • Table: JELD-WEN Australia Pty Limited - financial performance
  • Table: Carter Holt Harvey Building Products Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Carpentry and Joinery Timber Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Carpentry and Joinery Timber Manufacturing Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Architrave
  • A style of timber moulding that frames the top of a door or window.
  • Casement
  • A type of window that is attached to the side of its frame by hinges.
  • Diy
  • Do-it-yourself individuals who generally undertake renovation or construction activity without skills training.
  • Louvre
  • A type of window, blind or shutter with adjustable horizontal slats that admit light and air.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Carpentry and Joinery Timber Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Carpentry and Joinery Timber Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Carpentry and Joinery Timber Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Carpentry and Joinery Timber Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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