Wood Product Manufacturing

Wood Product Manufacturing

Brief Excerpt from Industry Overview Chapter:

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).

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.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include sawmill and wood preservation (about 30% of industry revenue); veneer, plywood, and engineered wood (about 20%); softwood veneer and plywood (about 5%); and hardwood veneer and plywood (about 2%). Other wood products also include truss manufacturing.