Wood Product Manufacturing Industry Profile

Companies in this industry manufacture dimensional lumber; veneers, plywood, engineered wood members, or reconstituted wood products; wood windows and doors, wood flooring, or other millwork; wood containers; pallets; prefabricated wood buildings; or manufactured homes. Major companies include Andersen Corporation, Cavco, and Weyerhaeuser (all based in the US), as well as Sekisui House (Japan), Stora Enso (Finland), Svenska Cellulosa (Sweden), and West Fraser Timber (Canada).

The estimated total value of the world's forests is as much as $150 trillion-nearly double the value of global stock markets, according to Boston Consulting Group. Top global producers of timber and manufactured wood products include Brazil, Canada, China, India, and the US.

The US wood product manufacturing industry includes about 15,000 companies with combined annual revenue of about $110 billion.

COMPETITIVE LANDSCAPE

Demand is closely tied to the level of home construction. The profitability of individual companies depends on efficient operations, because many products are commodities. Large companies enjoy economies of scale in purchasing. Small companies can often compete successfully by focusing on a local market.

Overall, the US industry is fragmented: the top 50 companies account for about 35% of industry revenue. However, some segments of the industry are concentrated, including plywood and veneers, wood windows and doors, and manufactured housing.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include lumber (30% of industry revenue); wood windows, doors, flooring, and other millwork (25%); plywood, veneers, and engineered wood products (20%); wood containers ...