Timber Wholesaling in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC F3331Revenue
$5.1bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
7,563
Businesses
1,003
Wages
$XXX.Xm
Timber Wholesaling in Australia industry analysis
Timber wholesalers have endured difficult trading conditions over the past five years. Fluctuating demand from building and manufacturing markets, wholesale bypass and the use of alternative materials among downstream clients have contributed to the industry's poor performance. Wholesalers supply various products, including structural timbers, dressed wood panels, plywood and veneers. The markets include builders, manufacturers, retail hardware chains, independent hardware stores and garden supply centres.Industry revenue is expected to decline at an annualised 4.7% over the five years through 2023-24, to total $5.1 billion. This decline corresponds to falling demand from the residential building construction market, furniture and wooden component manufacturers. Ongoing product substitution with steel, concrete and plastic products, along with wholesale bypass, has also weighed on industry revenue over the past five years. The global push for sustainability has significantly changed the timber industry, affecting revenue and usage patterns. The rise in environmental awareness has prompted building contractors to actively explore more sustainable alternatives to conventional new timber products. Reclaimed and recycled timbers have emerged as a viable option, aligning with eco-friendly construction practices. Furthermore, the industry's performance has deteriorated over the past three years because of the effects of the COVID-19 pandemic on downstream demand. Revenue is expected to decline by 4.0% in 2023-24 as the domestic price of timber continues to rise. Weaker demand and rising price-based competition have also squeezed industry profit margins over the past five years.Over the next five years, industry revenue is forecast to grow at an annualised 1.9% to $5.6 billion. Rising demand from residential building construction is projected to support the Timber Wholesaling industry's recovery over the next five years. Ongoing home improvement trends will likely support DIY consumer demand at the retail level, boosting sales of timber products to downstream retailers. Demand from wooden structural component manufacturers is also projected to rise. Construction manufacturers source wooden structural components, like doors and window frames, to construct and renovate dwellings.
Trends and Insights
- The Timber Wholesaling industry has faced difficulties in the past five years because of fluctuating demand from downstream building and manufacturing sectors. The persistent threat of wholesale bypass, where retailers source timber directly, has added to the industry's struggles.
- The Timber Wholesaling industry's significance lies in its supply of diverse timber products, including carpentry and joinery timber, hardwood, particle board, plywood and veneers. Demand from the building construction markets fuels each product's contribution to industry revenue.
- The presence of timber wholesalers is primarily shaped by population density, with industry enterprises concentrating in populous regions for proximity to major markets. This emphasis on market access takes precedence over local forest resource availability considerations.
- Wholesalers primarily engage in price-based competition because of the similarity of their products and limited value-added services. Many major chains release discounted product catalogues, emphasising price as a key competitive factor.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 4.7 % over the past five years, to reach an estimated $5.1bn in 2023.
Trends and Insights
Demand variability and the threat of wholesale bypass challenge the Timber Wholesaling industry
- Operating conditions have been challenging for wholesalers over the past five years.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Residential and downstream demand conditions will continue influencing industry revenue
- Demand for residential building construction is projected to increase strongly over the next five years. However, structural and economic changes constraining foreign capital inflows and the capacity of local investors to fund new retail building and office construction projects could stifle this expansion.
Biggest companies in the Timber Wholesaling in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Wesfarmers | 980.3 | |
Bowens Timber & Hardware | 252.6 | |
ForestOne | 202.1 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Hardwood and particle board timbers, Carpentry and joinery timbers and Plywood and veneer timbers. Hardwood and particle board timbers is the largest segment of the Timber Wholesaling in Australia.
Trends and Insights
Manufactured timber innovations drive modest growth in carpentry and joinery timbers segment
- The introduction of varied manufactured timber products has supported marginal growth in this segment as a share of industry revenue over the past five years.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Hardware Wholesaling in Australia
Complementors
- Log Sawmilling in Australia
- Construction in Australia
- Hardware and Building Supplies Retailing in Australia
International industries
- Lumber Wholesaling in the US
- Lumber Wholesaling in Canada
- Timber Wholesaling in New Zealand
- Construction Supplies Wholesaling in the UK
- Construction Supplies Wholesaling in Ireland
Table of Contents
About this industry
Industry definition
Companies supply sawn timber and other wood products at a wholesale level to retailers like hardware stores, commercial and residential construction firms, carpenters and furniture producers.
What's included in this industry?
Carpentry and joinery timbersHardwood and particle board timbersPlywood and veneer timbersFencingDeckingHouse stumpsCompanies
WesfarmersBowens Timber & HardwareForestOnePurchase this report to view all 3 major companies in this industry.
Related Terms
VENEERGLULAMWHOLESALE BYPASSVERTICAL INTEGRATIONIndustry Code
ANZSIC 3331 - Timber Wholesaling 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 Timber Wholesaling industry has faced difficulties in the past five years because of fluctuating demand from downstream building and manufacturing sectors. The persistent...
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
The Timber Wholesaling industry's significance lies in its supply of diverse timber products, including carpentry and joinery timber, hardwood, particle board, plywood and ven...
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
The presence of timber wholesalers is primarily shaped by population density, with industry enterprises concentrating in populous regions for proximity to major markets. This...
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
Wholesalers primarily engage in price-based competition because of the similarity of their products and limited value-added services. Many major chains release discounted pro...
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
The Timber Wholesaling industry is fragmented and comprises many small-scale businesses servicing narrow geographic markets. Many small-scale companies work alongside medium-...
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
- Overview of Wesfarmers's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Bowens Timber & Hardware's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of ForestOne's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Wesfarmers, and factors influencing its performance in the industry
- Description and key data for Bowens Timber & Hardware, and factors influencing its performance in the industry
- Description and key data for ForestOne, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Large wholesalers invest in automated order processing systems and digital capabilities, featuring fully-transactional websites and apps for online purchasing. The rise of on...
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
Cost structures exhibit variations based on the size and scope of operations. Larger wholesalers like Wesfarmers and Metcash capitalise on economies of scale, enjoying lower ...
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 Timber Wholesaling industry in Australia in 2024?
The market size of the Timber Wholesaling industry in Australia is $5.1bn in 2024.
How many businesses are there in the Timber Wholesaling in Australia industry in 2023?
There are 1,003 businesses in the Timber Wholesaling industry in Australia, which has grown at a CAGR of 0.0 % between 2018 and 2023.
Has the Timber Wholesaling industry in Australia grown or declined over the past 5 years?
The market size of the Timber Wholesaling industry in Australia has been declining at a CAGR of 4.7 % between 2018 and 2023.
What is the forecast growth of the Timber Wholesaling industry in Australia over the next 5 years?
Over the next five years, the Timber Wholesaling industry in Australia is expected to grow.
What are the biggest companies in the Timber Wholesaling market in Australia?
The biggest companies operating in the Timber Wholesaling market in Australia are Wesfarmers, Bowens Timber & Hardware and ForestOne
What does the Timber Wholesaling in Australia include?
Carpentry and joinery timbers and Hardwood and particle board timbers are part of the Timber Wholesaling industry.
Which companies have the highest market share in the Timber Wholesaling in Australia?
The company holding the most market share in Australia is Wesfarmers.
How competitive is the Timber Wholesaling industry in Australia?
The level of competition is high and increasing in the Timber Wholesaling industry in Australia.
