Cut Stock, Resawing Lumber, and Planing — Business Survival Rate
An estimated 68% of cut stock, resawing lumber, and planing businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 7.4%.
Is Cut Stock, Resawing Lumber, and Planing a Good Business to Start?
With a 68% five-year survival rate, cut stock, resawing lumber, and planing has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.
The annual exit rate of 7.4% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net positive: more businesses opening than closing (+0.6 pp spread).
Job Creation & Destruction
The industry is losing jobs faster than creating them — which may indicate automation, consolidation, or declining demand. Total employment: 256,069 workers across 7,671 firms.
Want to know how much cut stock, resawing lumber, and planing businesses actually make?
See full revenue benchmarks for Cut Stock, Resawing Lumber, and Planing →Frequently Asked Questions
- What percentage of cut stock, resawing lumber, and planing businesses fail?
- Approximately 32% of cut stock, resawing lumber, and planing businesses fail within their first 5 years. The annual closure rate is 7.4%, with 500 firms closing permanently in 2023.
- Is the cut stock, resawing lumber, and planing industry growing or shrinking?
- The cut stock, resawing lumber, and planing industry is currently shrinking with a net job creation rate of -4.0% per year. New businesses are entering at 8.0% while 7.4% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.