Forestry Support Services in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: July 2023
ANZSIC A0510Revenue
$888.6m
Past 5-Year Growth
Profit
$XX.Xm
Employees
3,904
Businesses
958
Wages
$XXX.Xm
Forestry Support Services in Australia industry analysis
Demand for forestry services has been mixed in recent years due to the COVID-19 outbreak. Revenue has diminished as fewer new plantations have been established and native forest logging rates have fallen. The Forestry Support Services industry provides essential plantation, maintenance, and research services to the forestry sector. Ripples from the collapse of forest-managed investment scheme (MIS) plantations have continued to weigh on industry performance in 2023-24. Forest and logging demand has plummeted, with international trade for wood products tanking and domestic wood use collapsing alongside many construction companies. Rising economic activity in recent years has steadied the revenue decline to an expected average annual 2.3% over the five years to 2023-24 to reach an estimated $888.6 million. This drop includes an expected dip of 0.6% in 2023-24. Many industry providers have moved away from starting up new plantations and towards replanting and other services to strengthen their revenue generation.Supply chain disruptions have caused severe challenges in the construction sector, increasing prices and slowing activity. Many service providers specialise in unique service offerings and have capitalised on inflationary trends to bolster their profit margins from their low rates in 2019-20. Forestry support services are upstream from construction industries, as forestry and logging companies work to meet wood product demand. The limited number of new forests and plantations has constrained revenue. Various government initiatives and private investments aid the Forestry Support Services industry, including Forest & Wood Products Australia and state government assistance packages.The Forestry Support Services industry will face subdued growth in the coming years as demand for log harvesting ramps up alongside the need for new dwelling commencements. Government and private support will aid operators in navigating ongoing challenges and contribute to sustainable forestry practices while enlisting forestry services themselves to contribute to forestry research. Drone use and more advanced maintenance machinery will displace labour over the long term, easing a major expense for forestry support service providers. Revenue is forecast to recover, growing at an annualised 0.6% over the five years through 2028-29, to an estimated $915.6 million.
Trends and Insights
- The Forestry Support Services industry is dealing with tough conditions in the face of reduced plantation establishments and logging demand. The lack of new forest development and ongoing challenges from supply chain disruptions are hindering progress.
- Forest maintenance services are growing rapidly in importance. This highlights a shift in the industry focus from new tree plantations to the proper maintenance of existing forests, offering growth opportunities for service providers.
- Enterprises are predominantly located in Australia's forested areas. The largest plantation areas are in Victoria, New South Wales and Western Australia, while Tasmania and Victoria have the highest proportion of plantations as a proportion of land area.
- The Forestry Support Services industry faces intense competition. Competition is driven primarily by the limited number of high-quality service providers and the trend of governments outsourcing forest management services.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 2.3 % over the past five years, to reach an estimated $888.6m in 2023.
Trends and Insights
Large forestry support service providers are trying to weather the storm
- Weaker demand from the Forestry and Logging industry has sunk activity from the largest revenue outlet for forestry support services.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Green recovery is set to propel revenue growth
- Rising environmental consciousness over the next few years will heighten demand for the management of native forests.
Biggest companies in the Forestry Support Services in Australia
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 |
|---|
There are no companies that hold a large enough market share in the Forestry Support Services in Australia industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Forest establishment services, Forest maintenance services and Forest research and consulting services. Forest establishment services is the largest segment of the Forestry Support Services in Australia.
Trends and Insights
Forest maintenance services are shooting up in importance
- This segment involves replanting, tree pruning and thinning, pest control and back-burning.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Nursery Production in Australia
- Shearing, Cropping and Agricultural Support Services in Australia
- Log Sawmilling in Australia
- Forestry and Logging in Australia
International industries
- Forest Support Services in the US
- Forestry Support Services in New Zealand
Table of Contents
About this industry
Industry definition
Firms in the industry provide a range of support services to forestry enterprises. These services include forest reafforestation, conservation or plantation maintenance on a fee or contract basis. The industry also includes companies that operate forest nurseries and provide forestry research and consultancy services.
What's included in this industry?
Forest maintenance servicesForest research and consulting servicesForest establishment servicesCompanies
Purchase this report to view all major companies in this industry.
Related Terms
AGROFORESTRYHECTARENATIVE FORESTSFORESTRY MISIndustry Code
ANZSIC 0510 - Forestry Support Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Forestry Support Services industry is dealing with tough conditions in the face of reduced plantation establishments and logging demand. The lack of new forest developmen...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Forest maintenance services are growing rapidly in importance. This highlights a shift in the industry focus from new tree plantations to the proper maintenance of existing f...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Enterprises are predominantly located in Australia's forested areas. The largest plantation areas are in Victoria, New South Wales and Western Australia, while Tasmania and V...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The Forestry Support Services industry faces intense competition. Competition is driven primarily by the limited number of high-quality service providers and the trend of gov...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Natural disasters have threatened the industry's largest companies. Plantation maintenance services and new plantations growers have found it difficult to contend with the de...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
State and territory forest management authorities oversee the sustainability of Australia's publicly owned forests. These authorities work with the federal government to enac...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
A considerable amount of time is spent on forest research activities. These services require highly trained employees, pushing up wage costs as providers fight to secure the ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Forestry Support Services industry in Australia in 2024?
The market size of the Forestry Support Services industry in Australia is $888.6m in 2024.
How many businesses are there in the Forestry Support Services in Australia industry in 2023?
There are 958 businesses in the Forestry Support Services industry in Australia, which has grown at a CAGR of 0.6 % between 2018 and 2023.
Has the Forestry Support Services industry in Australia grown or declined over the past 5 years?
The market size of the Forestry Support Services industry in Australia has been declining at a CAGR of 2.3 % between 2018 and 2023.
What is the forecast growth of the Forestry Support Services industry in Australia over the next 5 years?
Over the next five years, the Forestry Support Services industry in Australia is expected to grow.
What does the Forestry Support Services in Australia include?
Forest maintenance services and Forest research and consulting services are part of the Forestry Support Services industry.
How competitive is the Forestry Support Services industry in Australia?
The level of competition is moderate and decreasing in the Forestry Support Services industry in Australia.
