Wood Flooring Manufacture

The US hardwood flooring industry includes fewer than 100 manufacturers, with combined annual revenue of over $1 billion. Large companies include Armstrong World Industries (AWI), Boise Cascade, Shaw Industries, and Wood Flooring International (WFI). Flooring is still dominated by small independents, but the industry continues to consolidate. There are thousands of distributors and installers. Annual production varies considerably, but is about 500 million board feet (mmbf).

COMPETITIVE LANDSCAPE

Demand for wood flooring is closely tied to residential real estate construction, both new and remodeling. The industry is highly competitive because the product is largely a commodity. Small manufacturers typically sell their product within a local region. Competition comes from other manufacturers and competing flooring products like carpeting, linoleum, tiles, etc.

PRODUCTS, OPERATIONS & TECHNOLOGY

Wood flooring is milled from hardwoods, principally oak (which accounts for about 70 percent of the market) but also maple, ash, beech, birch, pecan, walnut, hickory, and others. Most flooring is used in residential and commercial buildings, but about 10 percent of production (mainly glued, laminated material) is used in truck trailers and railroad cars. Wood flooring comes in three main shapes: strips, planks, and parquet. Strips account for 80 percent of the market; vary in thickness from 3/8 inch to 3/4 inch; in width from 1 1/2 to 3 1/2 inches; and are 2 to 3 feet long. Planks are 3/4 inches thick and 3 to 8 inches wide. Strips, planks, ...