|Last Quarterly Update:||9/16/2013|
|SIC Codes:||2421, 2435, 2436, 2439|
|NAICS Codes:||3212, 321113|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry engage in the sawing of dimensional lumber or make veneers, plywood, engineered wood members, or reconstituted wood products. Major US companies include divisions of Georgia-Pacific, Louisiana-Pacific, Universal Forest Products, and Weyerhaeuser.
About 5,000 lumber and plywood product manufacturers operate in the US, generating annual revenue of about $35 billion. Key growth drivers include the rebound of the US housing and remodeling markets.
Demand is closely tied to the level of home construction. The profitability of individual mills depends on efficient operations, because most products are commodities. Large companies enjoy economies of scale in purchasing. Small companies can often compete successfully by focusing on a local market. Sawmills can operate with only a modest investment of capital, but plywood mills require expensive equipment and therefore are usually plants with high annual volume.
The plywood, veneer, and engineered wood product segment of the industry is concentrated: the 50 largest companies generate about 60 percent of revenue. The sawmill segment is fragmented: the 50 largest companies generate about 40 percent of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Sawmills process raw logs in a few simple operating steps. Logs are debarked and cut into "cants" that are further cut into finished pieces of lumber, using either circle saws or bandmills. Once lumber is cut to size, it may be sold as "green" lumber or may be stacked and dried to a specific moisture content through air- or ...
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