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 wood sheathing products (about 25% of industry revenue), softwood dressed 2-inch lumber (more than 20%), and wood pallets and pallet containers (more than 20%). Other products and services include hardwood rough lumber (about 15%) and construction of manufactured (mobile) homes (about 10%).