Millwork in Canada - Industry Market Research Report

Sanded Down: The Canadian Dollar is Forecast to Remain Weak, Facilitating Growth in Demand for Industry Exports

The Millwork industry in Canada manufactures products that are used primarily in construction products and as a result, industry revenue is closely tied to downstream construction markets. One of the industry's largest markets is renovation expenditures and growth in home improvement spending in response to rising incomes and home prices has sustained industry performance. Canadian real estate has been increasing in value, even since before the pandemic. The fiscal and monetary stimulus pushed real estate prices even higher. Rising interest rates to combat inflation are reducing demand for debt in general, but for mortgages, in particular. Millwork revenue has been decreasing at an annualized rate of 0.9% to $6.3 billion over the five years to 2023, including an estimated 7.2% drop in 2023 alone, when profit is expected to total 7.6% of revenue. This industry manufactures hardwood and softwood cut stock and dimension stock timber, such as lumber and worked wood products cut or shaped into specialized sizes; wood windows and doors; and other millwork, such as wood flooring. These reshaped wood products are mainly sold to housing and other building construction industries and their contractors, in addition to wood product distributors. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.