NAICS 113 - Forestry and Logging
Industries in the Forestry and Logging subsector grow and harvest timber on a long production cycle (i.e., of 10 years or more). Long production cycles use different production processes than short production cycles, which require more horticultural interventions prior to harvest, resulting in processes more similar to those found in the Crop Production subsector. Consequently, Christmas tree production and other production involving production cycles of less than 10 years, are classified in the Crop Production subsector.
Industries in this subsector specialize in different stages of the production cycle. Reforestation requires production of seedlings in specialized nurseries. Timber production requires natural forest or suitable areas of land that are available for a long duration. The maturation time for timber depends upon the species of tree, the climatic conditions of the region, and the intended purpose of the timber. The harvesting of timber (except when done on an extremely small scale) requires specialized machinery unique to the industry. Establishments gathering forest products, such as gums, barks, balsam needles, rhizomes, fibers, Spanish moss, and ginseng and truffles, are also included in this subsector.
Industry trends:
The Forestry and Logging industry (NAICS 113) has been experiencing significant qualitative trends driven by innovation, sustainability, and regulatory changes. One of the most prominent trends is the increased focus on sustainable forestry practices. This shift is largely due to both consumer demand for environmentally responsible products and stricter regulations aimed at preserving forest ecosystems. Companies are adopting advanced technologies such as remote sensing, Geographic Information Systems (GIS), and drones to monitor forest health, manage resources more efficiently, and comply with environmental standards.
Another trend is the growing importance of certification programs, such as the Forest Stewardship Council (FSC) and Sustainable Forestry Initiative (SFI). These certifications help ensure that timber is sourced sustainably and can enhance market access and consumer trust. Additionally, there's a noticeable shift towards diversified revenue streams within the industry. For instance, some forestry companies are exploring agroforestry—integrating trees with crops and livestock—to optimize land use and reduce financial risks.
In terms of forecasts, the near future is expected to see continued integration of digital tools and data analytics to improve operational efficiencies and sustainability outcomes. The market is also likely to witness a rise in demand for wood products due to their low carbon footprint compared to alternative materials like concrete and steel. However, the industry may face challenges such as climate change impacts, which could alter tree growth patterns and increase the risk of forest fires.
Overall, while the Forestry and Logging industry navigates these evolving trends, organizations that prioritize innovation, sustainability, and adaptability will likely thrive in the coming years.
This industry is comprised of:
Explore related industries:
This report includes the ability to segment your Industry by:
- Region
- Employees
- Net Sales
- Company Age
- Total Assets
- Ownership Type
With iCFO You Get
What Is iCFO?
A review and comparison of financial performance of privately-help companies in specified SIC/NAICS industry segment, using industry standard benchmarks.
Sound Business Analysis
Answers come easily with iCFO. Review ROI, sales per employee, profit margins of the top 10%, top 25% and more, to identify areas of concern and opportunity. Examine what if scenarios and P&L impact of reducing costs or adding revenue.
Your Business’ Health In Minutes
It takes only five minutes to enter your data and produce a concise profile of your company’s fiscal state, including critical business ratios focusing on liquidity, profitability, asset efficiency, and growth.