BMATWT 352 - Building Materials and Forest Products Marketing
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Western Lumber

The Market for Wood Components

 Source: Lawser, Steve. 2001. Outlook for the Wood Component Industry, Proceedings of the Wood Technology Show, March 15, 2001

 

Industry Overview

  • Value-added wood product manufacturers
  • 1,300 Businesses in North America - Fragmented Industry
  • $4 Billion in annual Sales
  • Avg. Annual Sales $2 - 5 Million per business
  • Domestic Market Growth 10-12% per year

 

WHY??

 

Trend is toward increased out-sourcing of component parts!

Businesses have a choice in everything they manufacture MAKE vs. BUY.

Increased technology and specialization make it difficult to be competitive in a broad range of business activities.

Hence - out-sourcing, buy the component from an outside supplier rather than make it yourself.

Pros- lower inventory, perhaps lower cost

Cons - lose control over quality

 

PRODUCT TYPES

  • Rough dimension stock - cut-to-size blanks, mouldings
  • Semi-machined components - panels, stair parts
  • Fully-machined components - cabinet doors

 

RAW MATERIALS

  • Hardwoods (Oak, maple, cherry, poplar, ash, birch, walnut) - 75%
  • Softwoods - 15%
  • Engineered wood (MDF) - 10%

 

MARKETS FOR WOOD COMPONENTS

  • Building Products - 35%
  • Furniture - 26%
  • Cabinetry - 23%
  • Industrial Products - 8%
  • Specialty Products - 8%
    
         

Produced and maintained by David T. Damery
Building Materials and Wood Technology
Department of Natural Resources Conservation
College of Natural Resources and the Environment
University of Massachusetts, Amherst.

    
Many of the materials created for this course are the intellectual property of the instructor. This includes, but is not limited to, the syllabus, lectures and course notes. Except to the extent not protected by copyright law, any use, distribution or sale of such materials requires the permission of the instructor. Please be aware that it is a violation of university policy to reproduce, for distribution or sale, class lectures or class notes, unless the faculty member has explicitly waived copyright. Copyright 2005, David T. Damery