New York - The Wood Panelling Manufacturing industry manufactures products like plywood, veneer, medium-density fibreboard (MDF), oriented strand board and particleboard. These products are typically used in construction and furniture manufacturing; as such, industry revenue largely depends on demand from these two downstream sectors. The five years to 2014 began with the industry at rock bottom in 2009. Before the five-year period, a multi-year decline in construction activity led industry revenue to fall for five straight years and industry profit margins to drop into the red. Starting from this low, the slow-moving recovery in construction and manufacturing activity led industry revenue to grow an annualized 2.9% to $5.5 billion in the five years to 2014, including 1.2% growth in 2014. Profit margins also bounced back to positive returns.

According to IBISWorld Industry Analyst Antal Neville, “While industry revenue is growing, it is also increasingly comprised of larger companies, many of which are vertically integrated.” Consolidation has increased as small players have succumbed to unfavourable market conditions and left the industry. As a result, the number of industry enterprises has declined an annualized 1.4% to 410. Meanwhile, demand rose and the industry's workforce increased to keep pace, growing an annualized 2.0% in the past five years to 18,490 employees.

In the five years to 2019, the industry is expected to continue along the same trajectory. “Construction activity in both Canada and the United States, a main source for industry exports, will continue rebounding and lead to increased demand for industry products,” says Neville. However, the Canadian dollar is expected to appreciate, making industry products less affordable in export markets, such as the United States. As a result, IBISWorld anticipates that exports will decline and imports will rise, partially inhibiting revenue growth. Nevertheless, strong downstream demand is expected to lead to revenue growth over the period.

For more information, visit IBISWorld’s Wood Panelling Manufacturing in Canada industry report page.

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IBISWorld industry Report Key Topics

The Wood Panelling Manufacturing in Canada industry manufactures veneer or plywood, engineered wood or reconstituted wood products. The industry does not include companies that primarily engage in sawmilling or wood preservation, nor does it include companies that primarily produce dimensions stock.

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About IBISWorld Inc.

Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772 .

Source: IBISWorld Inc.

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