Lumber Wholesalers

Lumber Wholesalers

Brief Excerpt from Industry Overview Chapter:

Companies in this industry distribute lumber and plywood products, wood windows and doors, and millwork. Major US companies include Builders FirstSource, Forest City Trading Group, HD Supply, and Tumac Lumber.

COMPETITIVE LANDSCAPE

Demand for lumber and plywood is strongly affected by the level of residential real estate construction. Profitability depends on efficient operations. Large wholesalers are more likely to serve large customers, with operations in multiple markets. Small companies can compete effectively by focusing on local markets and building strong relationships with customers. The US lumber wholesalers industry is concentrated: the 50 largest companies generate about 50% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Lumber wholesalers buy lumber and other wood products and resell them to retail lumberyards, home improvement centers and products distributors. Only the largest companies have more than 100 employees; the average wholesaler has fewer than 20. National and regional wholesalers usually have several offices that serve local customers. Most companies operate locally, serving local customers and buying from local mills. Major products include rough, dressed, and finished dimensional lumber, plywood and panels, which account for about 60% of the industry revenue. Other products include millwork, which account for roughly 30%, each. Nonwood roofing, siding, and insulation products, account for less than 5% each.