By the time the industry’s first major casualty was announced in July, the stock market had recovered from its plunge in early 2016.
But the latest figures from the Australian Bureau of Statistics suggest the downturn is far from over.
While timber stocks are recovering, they are still low and are likely to remain so for a long time, says Mark Cote, head of research at consultancy Woodbridge.
“The problem is they’re still low,” he says.
Mr Cote says the sector is now facing a challenge that is more complex than the downturn. “
It’s going to be a very long time before it gets back to the pre-crash levels.”
Mr Cote says the sector is now facing a challenge that is more complex than the downturn.
“We’ve seen a lot of consolidation in recent years,” he explains.
“But we’re still seeing the same types of companies that were involved in the last downturn leave, leaving their footprint and leaving the industry.”
One of the biggest losers is the giant Australian Bight, which was a major player in the mining sector until it went bust.
Its former boss, John Mackenzie, has been replaced by Australian Cement Co, which is now building a $4.5 billion iron ore mine in Victoria.
Mr Cot says while the boom will last for some time, it won’t be the end of the story.
“When the dust settles, you’ll see more consolidation and that’s probably going to continue for quite a while,” he said.
“I don’t think we’ll be seeing the end to this industry any time soon.”