United States
Environmental Protection
Agency
Office Of Air Quality
Planning And Standards
Research Triangle Park, NC 27711
EPA-453/R-01-002
February 2001
FINAL REPORT
Air
Industry Profile for the Proposed Wood
Building Products NESHAP
Final Report
-------
CONTENTS
Section Page
1 Introduction 1-1
2 Supply-Side Overview 2-1
2.1 Characterization of Coatings 2-1
2.2 Wood Building Products Coatings Processes 2-3
2.2.1 Spray Coating 2-4
2.2.2 Roll Coating 2-5
2.2.3 Curtain Coating 2-7
2.2.4 Flow Coating 2-7
2.2.5 Vacuum Coating 2-7
2.2.6 Dip Coating 2-9
2.2.7 Wood Building Product Finishing Processes 2-9
2.3 Costs of Production 2-12
ON
X 3 Industry Organization 3-1
'v-^
K--,"
-x 3.1 Market Structure 3-1
r?
> 3.2 Wood Building Products Facilities 3-4
-tL 3.2.1 Facility Location 3-4
J; 3.2.2 Facility Employment 3-10
-^ ' 3.2.3 Capacity Utilization 3-12
^ 3.2.4 Wood Building Products Database Facilities 3-14
3.3 Wood Building Products Companies 3-14
3.3.1 Company Characteristics 3-14
3.3.2 Horizontal and Vertical Integration 3-14
3.3.3 Company Trends 3-24
in
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Demand Side Overview 4-1
4.1 Demand Characteristics 4-1
4.2 Substitution Possibilities in Consumption 4-3
4.2.1 Demand Elasticity Estimates 4-4
Market Data 5-1
5.1 Market Value : 5-1
5.1.1 Domestic Production and Consumption 5-1
5.1.2 International Trade 5-1
5.2 Market Prices 5-10
5.3 Industry Trends 5-10
IV
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LIST OF FIGURES
Number
2-1 Simplified Curtain and Roll Coater Diagrams 2-6
2-2 Simplified Flow, Vacuum, and Pneumatic Coater Diagrams 2-8
2-3 Generic Coating Line Schematic for Prefmished Molded Doors and
Doorskins , 2-10
2-4 Generic Coating Line Schematic for Prefinished Woodgrain Moldings 2-11
I
-------
LIST OF TABLES
Number
1-1 Industries Affected by the Wood Building Products NESHAP 1-2
2-1 Wood Building Products 2-2
2-2 Example Coating Technologies by Product ; 2-12
2-3 Industry Statistics for the Hardwood Dimension and Flooring
Mills Industry (SIC 2426; NAICS 312918), 1987 to 1997 2-13
2-4 Industry Statistics for the Special Product Sawmills Industry (SIC 2429;
NAICS 321113), 1987 to 1997 2-14
2-5 Industry Statistics for the Milhvork Industry (SIC 2431; NAICS
312911/312918), 1987 to 1997 2-15
2-6 Industry Statistics for the Hardwood Plywood and Veneer Industry
(SIC 2435; NAICS 321211), 1987 to 1997 2-16
2-7 Industry Statistics for the Softwood Plywood and Veneer Industry
(SIC 2436; NAICS 321212), 1987 to 1997 2-17
2-8 Industry Statistics for the Structural Wood Members Industry (SIC 2439;
NAICS 321213/321214), 1987 to 1997 2-18
2-9 Industry Statistics for the Reconstituted Wood Products Industry
(SIC 2493; NAICS 321219), 1987 to 1997 2-19
3-1 Measures of Market Concentration for Wood Building Products
Manufacturers, 1992 and 1998 -. 3-3
3-2 Number of Establishments by State 3-6
3-3 Number of Establishments by Employment Range 3-11
3-4 Full Production Capacity Utilization Rates by Industry: Fourth
Quarters 1993 through 1998 " 3-13
3-5 Selected Wood Building Products Facilities, by Product Category 3-15
3-6 Sample Companies in Wood Building Products Industries, 1998 3-19
4-1 Annual Value of Construction: 1990-1999 ($1061997) 4-2
4-2 Estimates of Elasticities of Demand for the Wood Building
Products Industry 4-5
VI
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5-1 Total Production of Wood Products ($1061997) 5-2
5-2 Total Quantity and Value of Wood Products Produced in the United States .. 5-3
5-3 Total Imports, 1991-1997 (1061997) 5-6
5-4 Total Exports, 1991-1997 (106 1997) 5-7
5-5 Value of U.S. Imports of Wood Products ($1997) 5-8
5-6 Value of U.S. Exports by Country ($103) 5-9
vn
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SECTION 1
INTRODUCTION
The U.S. Environmental Protection Agency's (EPA's) Office of Air Quality Planning
and Standards (OAQPS) is compiling information on plants that apply surface coatings to
wood building products as part of its responsibility to develop national emission standards
for hazardous air pollutants (NESHAP) under Section 112 of the 1990 Clean Air Act.1 The
NESHAP, which is also a maximum achievable control technology (MACT) standard, will
limit air emissions from the coating process for wood building products and is scheduled to
be proposed in the spring of 2001. The Innovative Strategies and Economics Group within
OAQPS is responsible for developing an economic impact analysis (EIA) that evaluates the
economic impacts associated with the regulatory options considered for this NESHAP. This
industry profile of the wood building products industry provides information that will be
used to develop and implement the EIA methodology.
Although the NESHAP will most directly affect facilities that apply surface coatings
to wood building products, the rule will also indirectly affect the coatings manufacturers.
For the wood building products industry, the relevant Standard Industrial Classification
(SIC) and North American Industry Classification System (NAICS) codes are listed in Table
1-1. The products associated with each industry accompany the SIC and NAICS code
descriptions.
For the indirectly affected coatings manufacturing industry, the relevant SIC and
NAICS codes are
SIC 2851: Paints, Varnishes, Lacquers, Enamels, and Allied Products;
SIC 2891: Adhesives and Sealants; and
NAICS 3255: Paint, Coating, and Adhesive Manufacturing.
1 The products covered under this coatings rule include exterior siding, doorskins, interior stock panels, interior wall
paneling, tileboard, flooring, windows, and doors. The proposed rule only regulates the surface coating and
laminating of these products, and does not cover the manufacture of the substrate.
1-1
-------
Table 1-1. Industries Affected by the Wood Building Products NESHAP
Product
Hardwood and
parquet flooring
Wood shingles
Awnings, doors,
SIC
2426
2429
2431
Description
Hardwood dimension and
flooring mills
Special product sawmills,
NEC
Millwork
NAICS
321918
321113
321911
Description
Other miHwork (including flooring)
Sawmills
Wood window and door
garage doors, mantels,
shutters, moldings
Hardwood plywood
panels, prefinished
hardwood plywood
Softwood plywood
panels
Arches, Trusses
Hardboard,
particleboard,
reconstituted wood
panels, wall tile,
wallboard
243 5 Hardwood veneer and
plywood
2436 Softwood veneer and
plywood
2439 Structural wood members,
NEC
manufacturing
321918 Other millwork (including flooring)
321211 Hardwood veneer and plywood
manufacturing
321212 Softwood veneer and plywood
manufacturing
321213 Engineered wood members (except
trusses) manufacturing
321214 Truss manufacturing
2493 Reconstituted wood products 321219 Reconstituted wood product
manufacturing
Within the four-digit NAICS classification, the following six-digit NAICS codes are
applicable:
NAICS 325510: Paint and Coating Manufacturing and
NAICS 325520: Adhesive Manufacturing.
These codes include facilities that manufacture coatings for a variety of industries in addition
to the wood building products industry.
The domestic wood building products industry is a large, mature industry, that
competes on a global level. Although there are over 5,000 establishments employing over
240,000 workers producing wood building products, most of these facilities do not apply
coatings. It is estimated that there are 205 wood building products facilities in the United
States that coat wood building products and are major sources of hazardous air pollutants
1-2
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(HAPs) (Reeves, 2000).2 HAPs are primarily emitted during coating operations as the liquid
portion of the coating evaporates and the HAPs in the coating are released into the air.
This industry profile is organized into four additional sections. In Section 2, the
affected production process, inputs, outputs, and costs of production are described. Section 3
discusses industry organization, including market structure, manufacturing plants, and parent
company characteristics. Section 4 describes the uses and consumers of wood building
products. Finally, Section 5 provides market data on the wood building products industry,
including market volumes, prices, and future outlook. While the industry profile focuses on
the wood building products industry, information is also provided on the indirectly affected
coatings industry.
2 A major source of HAP emissions is defined as a facility that emits, or has the potential to emit, 10 or more tons of any
HAP or 25 or more tons of any combination of HAPs.
1-3
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SECTION 2
SUPPLY-SIDE OVERVIEW
This section provides an overview of the supply side of the coatings process for wood
building products. The term "wood building products" is a general term used to describe any
wood product that contains more than 50 percent by weight wood or wood fibers and is used
in the construction, either interior or exterior, of a residential, commercial, or institutional
building. In this profile, the term is more narrowly defined as those wood building products
that are sold to distributors having received at least one laminate, varnish, paint, or protective
coating at production facilities. Products falling into this category include hardwood and
laminate flooring; windows; interior paneling and veneer, doors, moldings, and other
millwork; exterior wood panels and siding; structural wood members, like arches and trusses;
and wood shingles, among other products. All of these products are available in any
dimension or shape and in either softwood (e.g., fir, cedar, pine, and hemlock) or hardwood
(e.g., maple, oak, birch, sherry, mahogany, and walnut). Table 2-1 lists sample coated wood
building products produced by industries included in this profile. This section describes
characteristics of the coatings used in this industry; the production process for coating wood
building products, including inputs used in the production process and the final outputs
produced; and data on the costs of production.
2.1 Characterization of Coatings
Wood is widely used in buildings for roof trusses, timber frames, and joists, and
nonstructurally in doors, windows, frames, cladding, and fencing. It is an attractive material
and a naturally renewable resource, but it is vulnerable to light, moisture, and biological
attack (Stoye, 1993). Coatings are used for three principal purposes: protection, appearance,
and surface modification. First, coating wood products reduces the potential for damage
from environmental elements, such as moisture and temperature extremes and other climate-
related hazards, and from insect infestation, such as termites. Surface coatings are also
applied to enhance surfaces to make other coatings applications, such as those for aesthetic
purposes, more effective. In this way, coatings are used to meet special physical and
2-1
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Table 2-1. Wood Building Products
Arches Hardwood and softwood veneer Sashes, window and door
Awnings Hardwood flooring Shakes (hand split shingles)
Door jambs Interior hardwood and softwood Shutters
panels
Door trim Laminated flooring Timbers
Doors Laminated wood products Trellises
Exterior hardwood and Medium-density fiberboard (MDF) Trim
softwood panels
Fencing Moldings Trusses
Framing, window and door Oriented strand board (OSB) Waferboard
Furniture stock Panel work Wall tile
Garage doors Parque flooring Wallboard
Hardboard Particleboard Windows
Hardboard Railings Wood shingles
Hardwood and softwood plywood
functional requirements. Finally, coatings are applied to improve the appearance of the
wood product. However, releases of HAPs occur during the coating process as the coatings
dry and HAPs contained within the coating evaporate into the air.
The HAPs associated with wood building products manufacturing include methanol
(49 percent), formaldehyde (13 percent), and toluene (9 percent). These three chemicals
account for over 70 percent of the 14,311 tons of HAPs emitted by the industry each year
(Hellwig, 1999). The predominant HAPs associated with the industry's surface coating
operations are xylenes (44 percent), toluene (11 percent), ethylene glycol monobutyl ether
(EGBE) (10 percent), ethyl benzene (7 percent), methyl ethyl ketone (MEK) (5 percent),
methyl isobutyl ketone (MIBK) (4 percent), and methanol (4 percent).
The types of coatings used in the industry fall into the following categories:
Fillers are used to fill pores, voids, and cracks in the wood to provide a smooth
surface.
Adhesives are used as bonding agents.
Sealers have a dual purpose: they both seal off substances in the wood that may
affect subsequent finishes and protect the wood from moisture.
2-2
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Groove coats cover grooves cut into panels and assure the grooves are compatible
with the final surface color.
Primers further reduce the potential for moisture damage and provide a good
surface for further coatings applications.
Stains are nonprotective coatings that color the wood surface without obscuring
the grain.
Basecoats provide color and hide substrate characteristics.
Inks are used to print decorative designs on printed panels or produce a simulated
wood grain.
Pigmented (enamels) and clear topcoats provide protection, durability, and gloss.
Chemicals used as coatings are as diverse as the products produced by the industry.
The chemicals used in these coatings include polyvinyl chlorides and other vinyls, resins,
acrylics, polyesters, phenol-formaldehydes, urea-formaldehydes, and polyurethanes (EPA,
1995; LMA, 2000; Stoye, 1993). These chemicals may be solvent-borne or waterborne.
Solvent-borne coatings are preferred for applying coatings that must dry quickly, provide
water resistance, or are applied to workpieces on quick-moving coatings lines (MRI, 1998).
Many companies supply the chemical inputs used by in this industry. A cross-section
of both large and small suppliers includes Akzo Nobel, Ashland Chemical, Mohawk
Finishing, Witco, Hunsman, and Willamette Valley Co. Some manufacturers are related to
wood building products companies themselves, but this is generally only true of larger
companies. These subsidiaries or spin-offs may serve both their parent companies and other
firms. Georgia-Pacific Resins sells one-third of its product to its parent company, another
third to other wood building products and paper companies, and the final third to companies
outside of the forest products industry (McCoy, 1997).
2.2 Wood Building Products Coatings Processes
The choice of coating technology and the quality of the coat applied to a given article
primarily depend on the workpiece, its geometry, design, and surface state (Stoye, 1993).
For these reasons, the finishing processes and types of coatings used in the wood building
2-3
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products industry vary by product type1. Workpieces that are finished again after field
installation (e.g., exterior siding) are typically only primed and sold to distributors after
which building contractors or homeowners apply architectural coatings formulated for
consumer use. High-end products (e.g., wall paneling and millwork) receive numerous
coatings prior to sale to distributors.
Typical coating application methods and technologies used in the wood building
products industry are spraying, roll coating, rotogravure cylinder, curtain coating, flow
coating, pneumatic (air knife) coating, brush coating, vacuum coating, and dip coating. This
section begins by describing each of these technologies and processes, places them in the
context of wood building products finishing processes, and concludes by associating each
with a product type.
2.2.1 Spray Coating
The most popular coating method among all industries, spray coating involves mixing
material and compressed air to apply coatings. At wood building products facilities,
operators usually spray coat workpieces using a handheld or automatic spray gun in a spray
booth. A spray booth is a sealed environment through which air is constantly pulled and
vented to keep levels of volatile compounds low. The spray booth may be a stand-alone
building or a dedicated workspace in a larger facility enclosed in glass, plastic shields, or
some other material. Spray coating is most often used to coat products that are not flat
because the geometry of multidimensional objects is not conducive to roller-based or pass-
through coating operations.
There are five main spray coating technologies:
Conventional air spray uses compressed air to atomize the finishing materials.
Compressed air flows through the gap in the head of the spray gun to meet a
coatings stream. The air atomizes the coatings into a mist.
Airless spraying involves atomizing the finish by forcing it through a small
opening at high pressure.
Air-assisted airless spraying uses an airless spray unit with a compressed air jet to
finalize breakup and help shape the spray pattern of the finish material.
lrThe majority of the information used in the preparation of this section came from "Preliminary Industry
Characterization: Wood Building Products Surface Coating" (EPA-453/R-00-004) prepared by Midwest Research
Institute, Gary, NC, for Office of Air Quality Planning and Standards, U.S. Environmental Protection Agency in
September 1998.
2-4
-------
Electrostatic finishing is performed by spraying negatively charged finish
particles onto grounded wood products.
High-volume low-pressure spraying involves the use of a high-volume of air
delivered at an effectively low pressure to atomize a finish into a pattern of low-
speed particles, which typically results in less overspray.
2.2.2 Roll Coating
Roll coating is a process in which cylindrical rollers apply a limited amount of
coating to the wood workpiece. In a roll coater, a rubber-covered coating roll and a smooth
chrome-plated doctor roll create a reservoir that holds the coating material. The material is
held in this reservoir by the adjustable ends of the rolls. As they rotate, the doctor roll
transfers the coating material from its surface to that of the coating roll. A feed roll or
conveyor belt holds the workpiece in contact with the coating roll and helps drive it through
the machine (see Figure 2-1).
There are four types of roll coaters:
Direct roll coaters have cylinders that move in the same direction as the product
being coated. A rotogravure cylinder is similar to the direct roll coater, only the
coating cylinder is etched and coated with ink to apply a pattern such as a
simulated wood grain on the workpiece.
Reverse roll coaters have cylinders that move in the opposite direction of the
workpiece.
Differential roll coaters have two coating cylinders, each moving at a different
pace.
Sock roll coaters have a fabric sock over their coating cylinders to produce a
textured finish on the workpiece.
Roll coating is suitable for applying coatings when a low-build finish is sufficient. This
process has become important because it is easily automated and has a high material yield
(Stoye, 1993).
2-5
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Curtain
Coater
Panel movement
on a conveyor
Pressure
Head
Metered Slit
Coating
Recycle Back to
Pressure Head
Direct
Roll Coater
Panel movement
on a conveyor
Coating
Applicator
Drive Roll
Reverse
Roll Coater
Panel movement
on a conveyor
Coating
Applicator
RONS
Reverse Roll
Figure 2-1. Simplified Curtain and Roll Coater Diagrams
2-6
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2.2.3 Curtain Coating
A curtain coating applicator uses a metered slit in a pressure head to create a
free-falling film of coating through which workpieces pass on a conveyor belt (see Figure
2-1). The pressure head is connected via distribution lines to coatings materials stored
elsewhere in the workspace. If some of the coating does not connect with a workpiece, it is
collected in a reservoir underneath the conveyor belt and returned to the coating head.
One of the advantages of this application system is that operators can control the
amount of coating applied by varying coating pump speed, weir or metered slit coating
reservoir head, and conveyor belt speed. Therefore, curtain coating is typically used when a
relatively thick coat is required. The rate of panel movement and the controlled uniform
flow of the film of coating determines the coating thickness (Lambourne, 1999).
2.2.4 Flow Coating
Flow coaters use nozzles and low pressure to create a wet film of coating that the
wood workpiece passes through. The coating is pumped into a tank that has at its bottom a
pouring head fitted with an adjustable nozzle so that operators can vary the amount of
coating being applied. As in curtain coaters, coating that does not come into contact with a
workpiece is collected in a reservoir under the conveyor belt and returned via connecting
channel to the tank (see Figure 2-2).
Brush and pneumatic coaters are flow coaters that are fitted with special apparatus to
remove excess coating. Brush coaters flood a panel with coating similarly to flow coaters
and then use brushes to remove the excess. Pneumatic (air knife) coaters also operate
similarly, with the exception that excess coating is removed from the panel by exposure to
pressurized air.
2.2.5 Vacuum Coating
A vacuum coater uses a suction system to pull paint up from a reservoir below the
conveyor belt. This creates what is essentially a wall of coating through which the
workpiece passes to receive its coating (see Figure 2-2). Any excess coating material can be
vacuumed off the piece as it exits the coating apparatus.
There are two principal advantages to vacuum coaters. First, coating thickness can be
controlled by vacuum and the speed of the conveyor belt. Second, vacuum coaters can be
2-7
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Flow
Coater
Nozzle
Coating
Panel movement
on a conveyor
Recycle Back to
Nozzle
Vacuum
Coater
Vacuum
Recycle Back to
Paint Trough
Panel movement
on a conveyor
Coating
Recycle Back to
Paint Trough
Pneumatic or
Brush Coater
Non-atomizing
Fan Spray Nozzle
Coating
Panel movement
on a conveyor
Air Knife or
Rotating Brush
r
Trough
Recycle Back to
Nozzle
Figure 2-2. Simplified Flow, Vacuum, and Pneumatic Coater Diagrams
2-8
-------
used in coating applications that require all sides of a workpiece to be coated at one time. It
is not necessary to change the orientation of workpieces and pass them through the coatings
process a second time.
2.2.6 Dip Coating
Dip coating is a process in which the product is dipped into a vat of coating, and the
excess is allowed to run off. This is the oldest and simplest coatings process (Stoye, 1993).
Dip coaters can be used on multidimensional pieces and/or nontypical part configurations.
2.2.7 Wood Building Product Finishing Processes
Figures 2-3 and 2-4 provide typical schematics for wood building products finishing
operations for doors, doorskins, and paneling. Each example depicts the placement of a
coatings technology in the production process. Although the examples provided here mostly
indicate direct roll coaters, any of the aforementioned technologies can readily be substituted
for direct roll coaters in most applications. The decision of which technology to employ is
made on a facility-by-facility basis, depending on its anticipated production capacity, layout
and space limitations, and input requirements. Table 2-2 lists some of the technologies that
are known to be used to coat many of the wood building products produced.
Figure 2-4 depicts a spray coating process and roll coating process. In the case of
molded door finishing (top of Figure 2-4), workpieces are typically cleaned with solvents or
other chemicals before entering the spray booth areas. Most coating lines are automated
processes that use conveyor belts to move workpieces through a finishing apparatus at speeds
of between 100 and 400 feet per minute. In this example, as the doors move through the
spray booth, they are coated twice, once with a stain and the second time with a top coat. In
between the two coatings applications, the doors are allowed to dry. This interim drying step
allows the first coating to bond with the wood substrate and dry before another coating is
applied on top of it. As the doors come off the production line, they are moved to a storage
area to dry prior to packaging and shipment. The bottom portion of Figure 2-4 depicts a
finishing process for doorskins that is essentially the same as that for doors except that it uses
a different set of technologies. Rather than spray coaters, direct roll coaters are used. The
drying stages are accelerated using ovens and UV-curing stations. It is not atypical for a
workpiece to undergo multiple coatings applications during a finishing process, but usually
those that do are millwork or other such specialized products (MRI, 1998).
2-9
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to
i
o
o
re
=
n
s
S"
n
o
era
=
re
C/5
n
o
s
re
3°
3!'
cr
re
a
G
o
o
=
a
Molded Door Spraybooth Line
Purchased or
Manufactured
Doors
w
Stain
(spray guns)
Air Rr\/
Spray Booth
Enclosure
w
Top Coat
(spray guns)
w
Air Rr\/
1
1
Packing,
Storage,
and
Shipment
Flat Composite or Plywood
Veneer Door Skin Line
Purchased or
Manufactured
Doors
Sand
>,
Stain
(direct roll
coater)
w
Oven
w
Top Coat
(direct roll
coater)
w
UV Cured
>
r
Packing,
Storage,
and
Shipment
-------
era
re
o
re
re
S
R°
n
o
p
rt-
era
re
C/5
n
re
3
P
^
R"
5*
Purchased or
Manufactured
Panels
re
BB
re
a
Sand
w
Filler (reverse
roll coater)
w
Cut Groove
Coat Groove
(spray gun)
w
Sand
>,
Basecoat
(direct roll
coater)
Packing,
Storage, and
Shipment
Oven
^
Top Coat
(direct roll
coater)
^
Wood Grain
Print
(rotogravure)
^
Oven
^
Basecoat
(direct roll
coater)
o
o
a
era
p
o_
a
era
-------
Table 2-2. Example Coating Technologies by Product
Hardboard siding
Laminate flooring
Miscellaneous wood products
Prefinished doors, miHwork, and moldings
Prefinished doors and moldings
Prefinished doors and window trim
Prefinished doors, windows, and miscellaneous wood
products
Prefinished interior wall paneling
Prefinished medium density fiberboard
moldings
Primed cementitious and cedar siding
DRC, RRC, curtain coater
DRC (adhesive)
DRC, HVLP, airless spray guns
AAA, airless spray guns, spray booths
HVLP, airless spray guns, dip tank, spraybooths
Flow coaters, rotogravure cylinder
HVLP, spray booths
AAA, DRC, airless spray guns, rotogravure cylinder
Flow coater
Flow coater
DRC = Direct roll coater
RRC = Reverse roll coater
HVLP = High volume low pressure spray gun
AAA = Air assisted airless spray gun
Source: Midwest Research Institute (MRI). September 1998. "Preliminary Industry Characterization: Wood
Building Products Surface Coating." (EPA-453/R-00-004) Prepared for the Coatings and Consumer
Products Group of the Office of Air Quality Planning and Standards of the U.S. Environmental
Protection Agency.
2.3 Costs of Production
The overall costs of production for wood building products include capital
expenditures, labor, energy, and materials. This section provides data on the costs of
production and the value of shipments for wood building products industries (see Tables 2-3
through 2-9).
With the exception of the special products sawmills industry, the shipment values for
wood building products industries grew during the U.S. economy's economic expansion of
the 1990s. During the expansion, housing starts and invigorated remodeling expenditures on
existing structures boosted industry output and revenues. In real terms, shipments increased
2-12
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Table 2-3. Industry Statistics for the Hardwood Dimension and Flooring Mills Industry (SIC 2426; NAICS 312918), 1987 to 1997
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
Value of
Shipments
(S103)
2,286,894
2,195,607
2,158,369
2,146,243
2,046,058
2,347,706
2,807,251
3,002,392
3,019,488
2,859,403
3,206,954
All
Number
29,700
28,900
29,200
29,300
26,100
28,500
31,400
33,400
34,500
31,700
33,940
Employees
%of
Payroll Value of
(S103) Shipments
588,135
574,012
569,695
544,756
543,639
581,252
646,376
663,433
659,198
644,151
708,100
26
26
26
25
27
25
23
22
22
23
22
Number
26,200
25,200
26,000
26,000
22,900
24,800
27,400
29,900
30,600
28,100
a
Production Workers
Hours
(S103)
53,200
51,200
52,900
53,300
48,300
49,900
55,100
60,800
59,900
54,500
a
Hourly
Payroll Wage
(S103) (unadjusted)
460,848
445,683
447,833
440,096
412,671
448,302
502,317
532,269
524,348
510,914
a
6.49
6.90
7.01
6.93
7.26
7.76
8.21
8.16
8.49
9.19
a
Hourly
Wage
(1997$)
8.66
8.71
8.47
8.26
8.54
8.99
9.12
8.75
8.75
9.37
a
Cost of % of
Materials Value of
(S103) Shipments
1,156,389
1,156,101
1,097,844
1,065,552
1,019,969
1,201,300
1,525,820
1,547,795
1,601,397
1,524,783
a
51
53
51
50
50
51
54
52
53
53
a
New Capital
Expenditures
(S103)
88,460
62,966
53,745
104,898
78,369
55,357
53,495
67,673
80,415
67,435
a
%of
Value of
Shipments
4
3
2
5
4
2
2
2
3
2
a
Note: All dollar ($) data were adjusted to 1997 real dollars using the Bureau of Labor Statistics' producer price index for "materials and components for construction."
a The transition from the Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS) is ongoing. At this time data
comparability is only available for general statistics. These more detailed statistics are currently unavailable by SIC code, the system used to generate statistics for 1987 to
1996.
Sources: U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Various Reports. MC92-I-24A through -24D. Washington, DC: U.S. Government Printing
Office.
U.S. Census Bureau. 1996. 1994 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M94(AS)-1. Washington, DC:
U.S. Government Printing Office.
U.S. Census Bureau. 1998. 1996 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M96(AS)-1. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 2000. "Bridge Between NAICS and SIC: Lumber and Wood Products." .
. As obtained on August 24, 2000.
-------
Table 2-4. Industry Statistics for the Special Product Sawmills Industry (SIC 2429; NAICS 321113), 1987 to 1997
All
Value of
Shipments
(S103) Number
1987
1988
1989
1990
1991
1992
1993
to 1994
-^ 1995
1996
1997
199,069
180,696
211,598
251,875
218,279
166,767
201,659
165,268
160,109
157,008
129,111
2,200
2,200
2,300
2,500
2,000
1,800
2,000
1,800
1,800
1,800
1,343
Employees
%of
Payroll Value of
(S103) Shipments
43,496
42,903
43,600
48,396
42,008
36,249
38,845
33,890
31,960
33,054
27,935
22
24
21
19
19
22
19
21
20
21
22
Number
1,900
2,000
1,900
2,100
1,700
1,500
1,600
1,500
1,400
1,400
a
Production Workers
Hours
(S103)
3,200
3,200
3,100
3,600
2,900
2,800
3,100
2,800
2,800
2,800
a
Hourly
Payroll Wage
(S103) (unadjusted)
34,290
35,710
32,730
37,906
32,006
27,331
27,191
23,594
22,269
23,056
a
8.03
8.84
9.06
8.83
9.38
8.43
7.90
7.86
7.71
8.07
a
Hourly
Wage
(1997$)
10.71
11.15
10.94
10.53
11.04
9.76
8.77
8.43
7.95
8.23
a
Cost of % of
Materials Value of
(S103) Shipments
114,745
114,323
126,934
152,818
133,556
96,702
120,419
91,375
90,416
88,349
a
58
63
60
61
61
58
60
55
56
56
a
New Capital
Expenditures
(S103)
4,270
5,552
2,174
2,026
2,118
5,559
6,770
3,217
3,815
4,591
a
%of
Value of
Shipments
2
3
1
1
1
3
3
2
2
3
a
Note: All dollar ($) data were adjusted to 1997 real dollars using the Bureau of Labor Statistics' producer price index for "materials and components for construction."
a The transition from the Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS) is ongoing. At this time data
comparability is only available for general statistics. These more detailed statistics are currently unavailable by SIC code, the system used to generate statistics for 1987 to
1996.
Sources: U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Various Reports. MC92-I-24A through-24D. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 1996. 1994 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M94(AS)-1. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 1998. 1996 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M96(AS)-1. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 2000. "Bridge Between NAICS and SIC: Lumber and Wood Products." .
. As obtained on August 24, 2000.
-------
Table 2-5. Industry Statistics for the Millwork Industry (SIC 2431; NAICS 312911/312918), 1987 to 1997
to
All
Value of
Shipments
(S103) Number
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
12,444,361
11,842,651
11,659,975
11,353,690
10,554,354
11,163,879
12,054,952
12,432,659
11,502,260
12,078,394
12,013,383
89,000
90,700
90,900
90,500
84,900
86,300
89,100
92,300
94,800
95,300
92,259
Employees
%of
Payroll Value of
(S103) Shipments
2,413,914
2,540,974
2,387,358
2,337,444
2,160,316
2,297,560
2,326,908
2,365,128
2,300,081
2,411,435
2,344,586
19
21
20
21
20
21
19
19
20
20
20
Number
71,600
73,000
73,500
72,100
66,700
68,800
71,900
73,800
76,300
76,400
a
Production Workers
Hours
(S103)
140,600
141,300
140,200
140,100
130,900
136,900
141,900
148,500
149,700
151,700
a
Hourly Hourly
Payroll Wage Wage
(S103) (unadjusted) (1997$)
1,739,321
1,847,465
1,730,946
1,642,016
1,534,543
1,616,596
1,638,358
1,654,935
1,602,118
1,671,998
a
9.27
10.60
10.22
9.83
9.96
10.20
10.40
10.39
10.38
10.80
a
12.37
13.38
12.34
11.72
11.72
11.81
11.55
11.14
10.70
11.02
a
Cost of % of
Materials Value of
(S103) Shipments
7,294,713
7,007,142
6,950,718
6,741,265
6,160,531
6,517,339
7,140,210
7,353,742
6,698,277
6,889,683
a
59
59
60
59
58
58
59
59
58
57
a
New Capital
Expenditures
(S103)
246,035
196,721
248,072
235,425
165,445
220,850
204,989
190,150
198,357
203,835
a
%of
Value of
Shipments
2
2
2
2
2
2
2
2
2
2
a
Note: All dollar ($) data were adjusted to 1997 real dollars using the Bureau of Labor Statistics' producer price index for "materials and components for construction."
a The transition from the Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS) is ongoing. At this time data
comparability is only available for general statistics. These more detailed statistics are currently unavailable by SIC code, the system used to generate statistics for 1987 to
1996.
Sources: U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Various Reports. MC92-I-24A through-24D. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 1996. 1994 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M94(AS)-1. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 1998. 1996 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M96(AS)-1. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 2000. "Bridge Between NAICS and SIC: Lumber and Wood Products." .
. As obtained on August 24, 2000.
-------
Table 2-6. Industry Statistics for the Hardwood Plywood and Veneer Industry (SIC 2435; NAICS 321211), 1987 to 1997
All
Value of
Shipments
(S103) Number
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
2,749,210
2,650,249
2,638,449
2,445,680
2,231,624
2,602,836
2,815,908
2,787,468
2,723,498
2,675,461
2,856,487
20,500
20,600
20,100
18,700
17,300
20,100
19,800
21,900
22,000
21,300
22,151
Employees
%of
Payroll Value of
(S103) Shipments
453,776
438,491
430,200
398,733
376,664
457,103
463,140
467,599
469,707
464,903
525,887
17
17
16
16
17
18
16
17
17
17
18
Number
17,400
17,300
17,000
15,700
14,800
17,000
16,800
18,700
18,800
18,300
a
Production Workers
Hours
(S103)
35,300
35,100
34,300
31,600
29,400
35,100
35,000
39,300
38,700
37,800
a
Hourly Hourly
Payroll Wage Wage
(S103) (unadjusted) (1997$)
329,425
318,994
313,894
295,026
277,820
330,059
332,289
346,087
348,981
345,030
a
6.99
7.20
7.58
7.83
8.03
8.12
8.55
8.21
8.75
8.95
a
9.33
9.09
9.15
9.33
9.45
9.40
9.49
8.81
9.02
9.13
a
Cost of % of
Materials Value of
(S103) Shipments
1,764,404
1,786,013
1,745,319
1,609,712
1,415,931
1,623,544
1,827,366
1,853,450
1,846,354
1,841,554
a
64
67
66
66
63
62
65
66
68
69
a
New Capital
Expenditures
(S103)
41,762
46,941
57,006
48,635
53,540
54,431
51,719
56,090
33,197
38,461
a
%of
Value of
Shipments
2
2
2
2
2
2
2
2
1
1
a
Note: All dollar ($) data were adjusted to 1997 real dollars using the Bureau of Labor Statistics' producer price index for "materials and components for construction."
a The transition from the Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS) is ongoing. At this time data
comparability is only available for general statistics. These more detailed statistics are currently unavailable by SIC code, the system used to generate statistics for 1987 to
1996.
Sources: U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Various Reports. MC92-I-24A through-24D. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 1996. 1994 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M94(AS)-1. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 1998. 1996 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M96(AS)-1. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 2000. "Bridge Between NAICS and SIC: Lumber and Wood Products." .
. As obtained on August 24, 2000.
-------
Table 2-7. Industry Statistics for the Softwood Plywood and Veneer Industry (SIC 2436; NAICS 321212), 1987 to 1997
All
Value of
Shipments
(S103) Number
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
6,563,947
6,117,921
6,413,149
5,996,368
5,403,908
6,308,186
6,698,380
7,027,603
7,038,907
6,154,326
5,762,664
38,900
38,400
36,500
35,600
31,700
31,300
30,700
30,300
32,400
31,900
28,843
Employees
%of
Payroll Value of
(S103) Shipments
1,186,276
1,136,164
1,071,878
1,049,698
953,603
958,214
939,598
918,145
959,415
949,495
912,613
18
19
17
18
18
15
14
13
14
15
16
Number
35,200
34,700
32,900
32,200
28,600
28,000
27,700
27,200
29,100
28,600
a
Production Workers
Hours
(S103)
77,000
76,600
73,300
71,500
63,600
63,500
63,500
62,500
66,200
64,900
a
Hourly Hourly
Payroll Wage Wage
(S103) (unadjusted) (1997$)
1,024,166
974,900
915,353
890,205
807,103
816,115
804,973
792,773
828,689
818,502
a
9.97
10.09
10.34
10.44
10.78
11.10
11.42
11.83
12.14
12.36
a
13.30
12.73
12.49
12.44
12.68
12.85
12.68
12.68
12.52
12.61
a
Cost of % of
Materials Value of
(S103) Shipments
3,958,435
3,890,894
3,964,437
4,027,856
3,665,089
3,781,553
4,029,305
4,451,198
4,489,230
4,250,438
a
60
64
62
67
68
60
60
63
64
69
a
New Capital
Expenditures
(S103)
147,034
159,118
168,843
122,779
102,020
114,305
131,184
161,300
190,110
212,609
a
%of
Value of
Shipments
2
3
3
2
2
2
2
2
3
3
a
Note: All dollar ($) data were adjusted to 1997 real dollars using the Bureau of Labor Statistics' producer price index for "materials and components for construction."
a The transition from the Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS) is ongoing. At this time data
comparability is only available for general statistics. These more detailed statistics are currently unavailable by SIC code, the system used to generate statistics for 1987 to
1996.
Sources: U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Various Reports. MC92-I-24A through-24D. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 1996. 1994 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M94(AS)-1. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 1998. 1996 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M96(AS)-1. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 2000. "Bridge Between NAICS and SIC: Lumber and Wood Products." .
. As obtained on August 24, 2000.
-------
Table 2-8. Industry Statistics for the Structural Wood Members Industry (SIC 2439; NAICS 321213/321214), 1987 to 1997
All
Value of
Shipments
(S103) Number
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
2,573,490
2,575,043
2,578,424
2,417,906
2,147,490
2,901,395
3,434,204
4,440,044
4,336,132
4,806,751
5,085,234
25,600
24,200
23,900
21,800
18,900
24,300
25,600
32,700
34,300
37,100
37,894
Employees
%of
Payroll Value of
(S103) Shipments
579,996
562,908
542,642
511,856
449,149
596,539
632,281
767,570
797,451
893,487
949,344
23
22
21
21
21
21
18
17
18
19
19
Number
18,500
18,000
18,900
17,000
14,500
18,100
18,900
24,900
26,100
28,400
a
Production Workers
Hours
(S103)
35,100
35,500
36,500
33,200
28,400
35,700
38,100
51,200
52,600
58,100
a
Hourly Hourly
Payroll Wage Wage
(S103) (unadjusted) (1997$)
363,315
357,480
357,494
328,880
284,881
365,845
381,233
485,616
493,729
555,088
a
7.76
7.98
8.11
8.31
8.52
8.85
9.02
8.84
9.10
9.36
a
10.35
10.07
9.79
9.91
10.03
10.25
10.01
9.48
9.39
9.55
a
Cost of % of
Materials Value of
(S103) Shipments
1,547,590
1,589,418
1,563,311
1,454,153
1,299,908
1,718,045
2,093,063
2,711,966
2,668,754
3,014,982
a
60
62
61
60
61
59
61
61
62
63
a
New Capital
Expenditures
(S103)
62,042
57,666
99,035
45,059
29,535
49,219
72,140
114,004
141,861
109,059
a
%of
Value of
Shipments
2
2
4
2
1
2
2
3
3
2
a
Note: All dollar ($) data were adjusted to 1997 real dollars using the Bureau of Labor Statistics' producer price index for "materials and components for construction."
a The transition from the Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS) is ongoing. At this time data
comparability is only available for general statistics. These more detailed statistics are currently unavailable by SIC code, the system used to generate statistics for 1987 to
1996.
Sources: U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Various Reports. MC92-I-24A through-24D. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 1996. 1994 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M94(AS)-1. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 1998. 1996 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M96(AS)-1. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 2000. "Bridge Between NAICS and SIC: Lumber and Wood Products." As obtained on 8/24/00 at . .
-------
Table 2-9. Industry Statistics for the Reconstituted Wood Products Industry (SIC 2493; NAICS 321219), 1987 to 1997
All
Value of
Shipments
(S103) Number
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
3,822,476
3,749,315
3,863,349
3,626,858
3,577,895
4,609,944
5,182,216
5,746,747
5,362,766
5,244,618
5,273,794
22,000
22,800
22,200
22,300
21,000
22,800
23,500
24,100
25,000
26,100
25,269
Employees
%of
Payroll Value of
(S103) Shipments
673,126
671,301
660,156
660,740
631,892
711,423
732,167
733,680
750,645
806,566
797,838
18
18
17
18
18
15
14
13
14
15
15
Number
17,700
18,300
18,200
18,200
17,100
18,500
19,200
19,500
20,400
21,100
a
Production Workers
Hours
(S103)
37,100
38,700
39,500
39,100
36,900
39,900
41,900
42,800
44,800
46,100
a
Hourly Hourly
Payroll Wage Wage
(S103) (unadjusted) (1997$)
494,204
495,904
484,308
485,274
465,741
531,338
545,158
543,423
550,638
598,854
a
9.98
10.16
10.15
10.41
10.73
11.50
11.72
11.84
11.92
12.73
a
13.32
12.82
12.26
12.41
12.63
13.32
13.01
12.70
12.29
12.99
a
Cost of % of
Materials Value of
(S103) Shipments
1,986,556
1,998,760
2,061,387
2,120,376
2,066,415
2,350,717
2,506,260
2,712,180
2,684,734
2,847,058
a
52
53
53
58
58
51
48
47
50
54
a
New Capital
Expenditures
(S103)
200,003
272,053
160,510
155,202
220,397
165,377
189,340
357,241
451,975
584,572
a
%of
Value of
Shipments
5
7
4
4
6
4
4
6
8
11
a
Note: All dollar ($) data were adjusted to 1997 real dollars using the Bureau of Labor Statistics' producer price index for "materials and components for construction."
a The transition from the Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS) is ongoing. At this time data
comparability is only available for general statistics. These more detailed statistics are currently unavailable by SIC code, the system used to generate statistics for 1987 to
1996.
Sources: U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Various Reports. MC92-I-24A through-24D. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 1996. 1994 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M94(AS)-1. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 1998. 1996 Annual Survey of Manufactures: Statistics for Industry Groups and Industries. M96(AS)-1. Washington, DC: U.S. Government
Printing Office.
U.S. Census Bureau. 2000. "Bridge Between NAICS and SIC: Lumber and Wood Products." .
. As obtained on August 24, 2000.
-------
substantially, either returning to or exceeding pre-recessionary levels. Growth was most
marked between 1992 and 1994, the years following the 1990 to early 1992 recession.
Overall, the dollar value of shipments of structural wood products, such as particleboard,
more than doubled between 1991 and 1997 in real terms. Value of shipments for plywood
and veneer companies declined as the decade progressed due in large part to the substitution
of reconstituted products for softwood products (Twarok, 2000).
The employment figures also reflect the industry's economic recovery and growth. In
fact, some industries, notably reconstituted products, ended the 10-year period depicted in
the tables having experienced significant employment growth. The wood building products
collective labor force totaled 241,699 in 1997, a 6 percent increase over 1987's figures. The
only industry to experience substantial declines in employment is the softwood industry in
which 10,000 jobs were lost from 1987 to 1997. Although its total labor force declined, the
industry's value of shipments did not decline at as great a rate, suggesting that dollar output
per employee increased. These gains suggest that increased automation allowed producers to
reap more output from each unit of labor. Thus, although total employment decreased, the
productivity of remaining labor resources increased. Payroll expenses for the wood building
products industries profiled were between 15 and 20 percent of value of shipments.
The cost of materials averaged about 60 percent of value of shipments for these
industries. Materials costs as percentage of value of shipments increased for most facilities
between 1987 and 1997. The only industry for which these costs were relatively stable was
the millwork industry. Two issues underlie this trend. First, price volatility in wood
building products markets in the mid-1990s due to build-ups in inventories caused the prices
for many wood building products to drop. For example, the plywood and veneer industry,
anticipating increases in demand due to new housing starts in the mid-1990s, did not cut back
production levels even while inventories rose (Twarok, 2000). Second, as wood building
products producers faced lower prices for their products, timber prices increased because of
changing forest policies and resultant market speculation, which triggered materials costs'
growth as a percentage of value of shipments (Carliner, 1998). Other factors contributing to
this phenomenon include lower prices due to increases in imports and competition with
substitutes made of other materials (including reconstituted wood).
The costs of coating are a subset of the overall costs of production and include the
specific capital expenditures required for the coating operation, the labor associated with the
coating process, and the cost of the coatings themselves. Financial, ingredients, and
operations data for coatings processes are unavailable because this information is treated as
proprietary and confidential business information by companies. A recent survey of wood
2-20
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building products coating facilities revealed, however, that on average these factories have
three coating lines that use nine coatings, one thinning solvent, and one cleaning solvent.
There is an average of 37 coating employees per facility (MRI, 1998). Coatings are
estimated to cost in the range of $20 per gallon: prices are higher for those with low or no
HAPs. Table 3-5 in Section 3 provides information on the coatings usage of select wood
building products facilities; accurate industry-wide consumption volumes are not available.
2-21
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SECTION 3
INDUSTRY ORGANIZATION
This section describes the market structure of the industry, the characteristics of wood
building products facilities, and the characteristics of firms that own these facilities. In
addition, it provides information on the market structure of the wood coatings industry and
the characteristics of firms that manufacture these coatings for use at wood building products
factories.
3.1 Market Structure
Market structure is important because it determines the behavior of producers and
consumers in the industry. If an industry is perfectly competitive, then individual producers
are not able to influence the price of the output they sell or the inputs they purchase. This
condition is most likely to hold if the industry has a large number of firms, the products sold
and the inputs purchased are undifferentiated, and entry and exit of firms are unrestricted.
Product differentiation can occur both from differences in product attributes and quality and
from brand name recognition of products. Entry and exit are unrestricted for most industries
except, for example, in cases where one firm holds a patent on a product, where one firm
owns the entire stock of a critical input, or where a single firm is able to supply the entire
market.
The wood building products industry is a mature industry whose constituent sectors
(e.g., hardwood veneer, millwork, etc.) compete in a global marketplace. Few foreign
companies own U.S. wood building products manufacturers, and all of the largest companies
are U.S.-based operations largely located in the Deep South, north-central United States, or
the Pacific Northwest. As one moves down the wood building products supply chain, from
lumber inputs to moldings and custom doors, companies whose principal business activities
are concentrated at lower levels tend to be less vertically integrated than those located above
them in the supply chain. Medium- and large-sized companies, however, may be vertically
integrated at all levels of the wood building products supply chain. Smaller firms operate in
each wood building products industry, but they are more concentrated in those portions of
the industry that are less capital-intensive.
3-1
-------
The relative ease of entry and exit of firms in this industry is largely dependent on the
markets in which those companies compete and the capital outlays required to commence
production. Small specialty manufacturers may have an easier time commencing or shutting
down operations than a reconstituted products manufacturer because the latter's capital
outlays are typically larger. In fact, the tables in Section 2 that provide descriptive industry
statistics show that new capital expenditures in most wood building products industries is
about 2 percent of value of shipments a year. But this percentage is higher for those
industries with higher concentrations of automated production processes. This is particularly
true of the reconstituted products manufacturers who in the aggregate have invested between
4 and 11 percent of their annual value of shipments in new capital expenditures in the latter
half of the 1990s. An individual firm will typically continue to operate so long as it is able to
cover its variable costs of production. If the firm's sales, however, do not cover these
expenses, it may close, offer itself for sale, or seek alternative sources of revenues or
financing, either in the financial markets or by producing another type of output.
The market structure of wood building products industries is not influenced by a high
degree of product differentiation for those wood building products that are raw materials.
Among those products that are basic building supplies, one company's output may be easily
substituted for another. The decision to purchase one company's product over another's in
these markets is influenced more by factors such as transportation and delivery costs, pricing
options for bulk deliveries, and producer-customer relations than by brand identification.
Brand identification does become important, however, the closer the industry's end
product is to the final user. In order to differentiate their product from competitors,
companies producing doors, windows, trim, and other products that may be directly
purchased by an individual consumer rather than a contracting company or distributer will
dedicate a larger portion of their expenses to advertising and marketing initiatives, such as
television commercials and sponsorship of remodeling and home repair programs. The
development of brand names is important because they embody consumers' perceptions of
the characteristics and reliability of the company's wood building products.
In addition to evaluating the factors that affect competition in an industry, one can
also evaluate four-firm concentration ratios (CR4s), eight-firm concentration ratios (CR8s),
and Herfmdahl-Hirschmann indexes (HHIs). These values are reported at the four-digit SIC
level for 1992, the most recent year available, in Table 3-1. The data in Table 3-1
3-2
-------
Table 3-1. Measures of Market Concentration for Wood Building Products
Manufacturers, 1992 and 1998
SIC
2426
2429
2431
2435
2436
2439
2493
SIC Description
Hardwood dimension and flooring mills
Special product sawmills, NEC
Millwork
Hardwood veneer and plywood
Softwood veneer and plywood
Structural wood members, NEC
Reconstituted wood products
NAICS
321918
321113
321911
321918
321211
321212
321213
321214
321219
CR4
1992
17
23
20
27
47
19
50
CR8
1992
25
35
26
40
66
25
66
HHI
1992
152
220
170
281
797
166
765
Number of
Companies
1992
782
181
3,044
281
123
830
193
Source: U.S. Census Bureau. 2000. 1992 Census of Manufactures: Concentration Ratios in Manufacturing. MC92-S-2.
. As obtained on August 24, 2000.
suggest that the four largest companies that own factories in each wood building products
industry generally control about one-fifth to one-quarter of the market, while the eight largest
companies tend to have a market share of about 25 to 40 percent. Exceptions are the
reconstituted wood products industry, whose relatively high capital intensity is prohibitive to
the entry of smaller firms, and the softwood products industry. In these two industries, the
largest four firms control half of the market and the largest eight firms control two-thirds of
the market. Smaller firms may not have access to the capital resources necessary to
commence profitable operations in such highly mechanized industries. Smaller firms are
more likely in industries with lower capital requirements. For example, a small millwork
manufacturer can orient its business plans towards niche markets, such as custom doors or
moldings, with relatively low capital requirements. In 1992, SIC codes with low CR4s and
CR8s also had the largest number of companies.
The criteria for evaluating the HHIs are based on the 1992 Department of Justice's
Horizontal Merger Guidelines. According to these criteria, industries with HHIs below
1,000 are considered unconcentrated (i.e., more competitive), those with HHIs between 1,000
and 1,800 are considered moderately concentrated (i.e., moderately competitive), and those
with HHIs above 1,800 are considered highly concentrated (i.e., less competitive). In
general, firms in less-concentrated industries are more likely to be price takers, while firms in
more-concentrated industries are more likely to be able to influence market prices. The HHI
3-3
-------
as calculated by the Department of Commerce indicates that all wood building products SIC
codes are unconcentrated. With the exception of the reconstituted wood products and
softwood industries, no wood building products industry has an HHI greater than 300. Other
than some niche market producers, most companies are price-takers. Even in the relatively
concentrated softwood and reconstituted wood markets, producers can be characterized as
price takers because output for this sector is not highly differentiated.
3.2 Wood Building Products Facilities
Facilities comprise a site of land with a plant and equipment that combine inputs (raw
materials, fuel, energy, labor) to produce outputs (in this case, paneling, windows, doors,
flooring, and siding, for example). The terms facility, establishment, and plant are
synonymous in this report and refer to the physical locations where products are
manufactured.
According to the 1997 Economic Census, 4,720 wood building products facilities
were in operation during that year. Sales for these facilities ranged from the tens of
thousands to hundreds of millions of dollars; a facility may produce products for niche
markets, such as cedar wood shingles, or be engaged in large-scale, automated production of
particleboard and plywood. Because of the great diversity in the scope and scale of facilities
in this industry, it is a cumbersome task to go into great detail about each facility in
operation. Therefore, much of this section provides general summary information on facility
attributes: location, employment, and capacity utilization. The final portion of this section,
however, presents information on wood building products facilities that have onsite coatings
operations, identifying their location, parent information, and sales and employment
statistics.
3.2.1 Facility Location
Many wood building products facilities that have a high primary-good content are
located in regions with significant concentrations of other forest product industries, such as
logging and saw mills. Areas of the United States with substantial lumber industries include
the Pacific Northwest (particularly northern California, Idaho, Oregon, Washington) and the
South (particularly Alabama, Mississippi, Georgia, North Carolina, and Texas). These two
regions account for significant percentages of plywood, veneer, and other wood product that
are used as inputs in the production of wood product outputs further down the supply chain,
such as doors, trusses, windows, and other types of millwork. States with millwork
industries include not only those mentioned above, but also some in the north-central United
States, such as Iowa, Wisconsin, and Minnesota.
3-4
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This subsection presents information on the geographic distribution of wood building
products facilities on an industry-by-industry basis and their contribution to respective
industry-wide value of shipments. Table 3-2 facilitates the discussion by listing principal
states for each industry, including number of establishments, number of employees, and
value of shipments. It should be noted that this table, much like subsequent tables in this
section, is based on the 1997 Economic Census, for which information was collected by
NAICS code. Because industry-level facility information is aggregated differently using
NAICS codes than using SIC codes, the descriptive statistics presented in Table 3-2 may not
match those of tables in Section 2. No bridge document between the 1997 and 1992
Economic Censuses is currently published that provides the level of detail required for this
section. The 1997 data are presented here to provide the most accurate representation of the
current economic geography of wood building products industries.
A quarter of the value of shipments of the hardwood dimension and flooring industry
(SICs 2426 and 2431 (part)/NAICS 312918), known as "Other Millwork" under the NAICS
system, is produced by California and Tennessee. California employs 12 percent of the
industry's total employees, but on both a dollar output by employee basis and a dollar output
by facility basis, Tennessee exceeds California and most other states. Most Tennessean
facilities are large establishments with a high degree of automation. Other states with
significant participation in this industry include, in order of value of shipments, Texas,
Georgia, Oregon, Virginia, and Alabama.
The special product sawmills industry (SIC 2429) was aggregated into the sawmills
industry (NAICS 321113) during the transition to the NAICS classification system. Because
this industry is relatively small (it mainly manufactures wood shingles and other specialty
products) and it was incorporated into the larger sawmills industry, it is difficult to discern
which facilities once operated under SIC 2429 but are now under NAICS 321113 to give a
current geographic breakdown by facility. It would also be beyond the scope of this profile
to
3-5
-------
Table 3-2. Number of Establishments by State
SIC
2426 and 2431
(part)
State
California
Tennessee
Texas
Georgia
Oregon
Virginia
Alabama
North Carolina
Missouri
Wisconsin
U.S. Total
2431 (part)
State
Wisconsin
Minnesota
Iowa
California
Oregon
Texas
Washington
Virginia
Illinois
Pennsylvania
US Total
NAICS
312918
Number of
Establishments
151
34
95
59
25
43
37
60
25
49
1463
321911
Number of
Establishments
50
36
17
178
44
92
65
38
55
53
1408
Description
Hardwood Dimension and Flooring
(Other Millwork)
% of Total
10%
2%
6%
4%
2%
3%
3%
4%
2%
3%
Number
of
Employees
4,343
3,201
2,161
1,825
1,405
1,494
1,813
1,559
1,321
1,417
37,742
% of Total
12%
8%
6%
5%
4%
4%
5%
4%
4%
4%
Millwork (Window
% of Total
4%
3%
1%
13%
3%
7%
5%
3%
4%
4%
Number
of
Employees
10,017
6,923
5,437
4,024
3,165
3,045
2,164
2,814
2,200
2,100
64,083
% of Total
16%
11%
8%
6%
5%
5%
3%
4%
3%
3%
Value of
Shipments
($103)
609,721
487,517
218,584
215,613
196,254
191,569
191,100
176,185
167,095
157,599
4,462,759
% of Total
14%
11%
5%
5%
4%
4%
4%
4%
4%
4%
and Door Manufacturing)
Value of
Shipments
($103)
1,478,853
1,372,671
719,229
498,696
429,476
413,894
296,270
288,245
266,804
246,250
8,730,522
% of Total
17%
16%
8%
6%
5%
5%
3%
3%
3%
3%
(continued)
3-6
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Table 3-2. Number of Establishments by State (Continued)
SIC
2435
State
Oregon
North Carolina
Indiana
Virginia
Wisconsin
South Carolina
Arkansas
Washington
U.S. Total
2436
State
Oregon
Louisiana
Texas
Arkansas
Washington
Mississippi
Alabama
Idaho
US Total
NAICS
321211
Number of
Establishments
12
63
28
19
23
17
10
5
332
321212
Number of
Establishments
44
12
8
7
17
9
8
5
155
Description
% of Total
4%
19%
8%
6%
7%
5%
3%
2%
Hardwood
Number of
Employees %
1,834
3,686
2,485
1,500
1,949
1,057
518
578
22,025
veneer and plywood
of Total
8%
17%
11%
7%
9%
5%
2%
3%
Softwood Veneer and
% of Total
28%
8%
5%
5%
11%
6%
5%
3%
Number of
Employees %
7,135
3,461
3,075
2,395
1,899
1,936
1,717
676
28,843
of Total
25%
12%
11%
8%
7%
7%
6%
2%
Value of
Shipments
($103)
404,362
386,280
277,385
262,182
184,615
98,114
98,049
70,488
2,856,487
Plywood
Value of
Shipments
($103)
1,542,573
618,325
502,168
483,781
382,361
377,562
376,453
120,671
5,748,047
% of Total
14%
14%
10%
9%
6%
3%
3%
2%
% of Total
27%
11%
9%
8%
7%
7%
7%
2%
(continued)
3-7
-------
Table 3-2. Number of Establishments by State (Continued)
SIC
2439
State
Oregon
Florida
California
Michigan
Texas
Ohio
Louisiana
Arizona
US Total
2493
State
Oregon
North Carolina
Mississippi
California
Michigan
Georgia
Texas
Virginia
Minnesota
Pennsylvania
US Total
Total
NAICS
321213 and
Number of
Establishments
45
102
85
32
36
37
o
J
29
1045
321219
Number of
Establishments
28
22
10
23
17
12
19
12
12
16
317
4,720
Description
321214
% of Total
4%
10%
8%
3%
3%
4%
0%
3%
Structural Wood Members
(Truss and Engineered Wood Members)
Number of
Employees
2,245
4,010
2,737
1,598
1,710
1,595
345
1,423
38,093
% of Total
6%
11%
7%
4%
4%
4%
1%
4%
Reconstituted Wood
% of Total
9%
7%
3%
7%
5%
4%
6%
4%
4%
5%
Number of
Employees
2,662
2,260
1,812
1,534
1,323
1,243
1,357
1,341
1,266
1,335
25,304
216,090
% of Total
11%
9%
7%
6%
5%
5%
5%
5%
5%
5%
Value of
Shipments
($103)
699,581
402,447
293,383
211,046
199,040
188,092
172,411
171,750
5,112,873
Products
Value of
Shipments
($103)
663,302
434,184
409,975
336,567
322,030
284,889
278,666
268,839
245,151
244,292
5,278,809
32,189,497
% of Total
14%
8%
6%
4%
4%
4%
3%
3%
% of Total
13%
8%
8%
6%
6%
5%
5%
5%
5%
5%
Source: U.S. Census Bureau. 1999. 1997EconomicCensus,ManufacturingIndustrySeries. Various Reports. EC97M-3212A
through -3212E, -3219A, and -3219C. Washington, DC: U.S. Government Printing Office.
-------
present information on the sawmills industry itself. Although this industry is not included in
Table 3-2, it is known that most companies that produce wood shingles are located in regions
where there is demand for this product. States where significant numbers of homes and light
commercial buildings use wood shingles as siding and roofing materials include Washington,
Oregon, California, and the New England states. Consequently, many of the largest wood
shingle manufacturers are located in these regions: Pacific Coat Building Products
(Sacramento, CA), GeoMcQuesten Company (North Billerica, MA), Miller Shingle
Company (Granite Falls, WA), and Robbins Lumber (Searsmont, ME) (Heil, 1998).
The window and door manufacturing industry (SIC 2431 (part)/NAICS 321911) is
concentrated in Wisconsin, Minnesota, and Iowa. These states are the base of manufacturing
operations for some of the nation's largest suppliers of windows and doors: Andersen
Corporation, Eggers Industries, and Pella Corporation Wisconsin alone employs 16 percent
of the industry's labor force, followed by Minnesota (11 percent) and Iowa (8 percent).
Although California has more factories than these three states combined (178 versus 103), its
facilities are smaller operations that do not rival the scale on a dollar output by facility basis
of those in the north-central United States. Wisconsin, Minnesota, and Iowa account for over
40 percent of the industry's value of shipments, $3.6 billion. Other states with a relatively
high degree of participation in this industry include, in order of value of shipments, Oregon,
Texas, Washington, and Virginia.
Oregon and North Carolina each account for 14 percent of the industry-wide value of
shipments for the hardwood veneer and plywood industry (SIC 2435/NAICS 321211),
although North Carolina has twice as many factories as Oregon. In fact, North Carolina is
home to 63 veneer and plywood factories partly because of a relatively large hardwood
timber industry and other industries that consume veneer as inputs, such as furnishings,
paneling, and manufactured housing. Other states with a relatively high degree of
participation in the hardwood industry include, in order of value of shipments, Indiana,
Virginia, Wisconsin, and South Carolina.
Oregon, the home state of many of the top timber companies, is the top-producing
softwood veneer and plywood state (SIC 2436/NAICS 321212), accounting for $1.5 billion
of the industry's total $5.7 billion in shipment value in 1997. Facilities in this state employ
7,135 people at 44 locations. Louisiana and Texas also have factories that each ship more
than $500 million worth of wood building products per year. Other states with a relatively
high degree of participation in the softwood industry include, in order of value of shipments,
Arkansas, Washington, Mississippi, and Alabama.
The structural wood members industry (SIC 2439/NAICS 321213/-14), which
3-9
-------
manufactures trusses, arches, and other wood structural products, is less geographically
concentrated than other industries in this profile. However, Oregon and California again are
among the top four producing states on a value of shipments basis. Joined by Florida and
Michigan, the factories in the top four states account for one-third of the industry's dollar
output. Other states with a relatively high degree of participation in the structural wood
products industry include, in order of value of shipments, Texas, Ohio, Louisiana, and
Arizona.
Oregon and North Carolina each account for 10 percent of the value of shipments for
the reconstituted wood products industry, but many other states also have factories that ship
more than $200 million in output a year. The ten states listed in Table 3-2 operate slightly
more than half of the industry's 317 factories, employ two-thirds of the industry's labor, and
account for two-thirds of industry value of shipments.
3.2.2 Facility Employment
Table 3-3 lists the number of establishments by employment range in 1997 for each
of the wood building products industries profiled in this document. This information is
useful because it provides an industry-level picture of both the number and size of factories
in each industry. As in the facility location discussion, the special products sawmills
industry is not included in the table because of changes in the industrial classification system.
In most industries there are a significant number of small-scale, niche market
producers manufacturing specialized products. These producers may market items of
regional or special interest or that involve traditional or labor-intensive production practices
or are custom-manufactured to fulfill some functional or aesthetic requirement. The wood
building products industries are no exception. A relatively large number of facilities in these
industries have fewer than 20 employees. These smaller facilities are most likely local or
special-interest producers manufacturing items such as custom doors and window frames,
moldings, and wooden arches and trusses. Because of the small-scale of their operations, it
is unlikely that these facilities operate coatings operations.
In 1997, the hardwood dimension and flooring (other millwork), millwork (windows
and doors), and structural products industries each operated more than 1,000 factories. Apart
3-10
-------
Table 3-3. Number of Establishments by Employment Range
SIC
NAICS
Industry
Description
2426 and
2431 (part)
312918
Hardwood
Dimension
and Flooring
(Other
Millwork)
2431 (part)
321911
Millwork
(Window
and Door
Manufacturing)
2435
321211
Hardwood
Veneer
and
Plywood
2436
321212
Softwood
Veneer
and
Plywood
2439
321213 and
321214
Structural Wood
Members
(Truss and
Engineered Wood
Members)
2493
321219
Reconstituted
Wood
Products
Total
Number of Employees
L
2
Ito4
5 to 9
10 to 19
20 to 49
40 to 99
100 to 249
250 to 499
500 to 999
,000 to 2,499
,500 or more
515
288
264
221
86
69
15
5
410
272
251
235
109
87
28
10
3
3
56
20
48
74
66
53
14
1
10
9
8
19
18
37
48
6
147
141
224
287
169
70
7
49
35
33
42
53
93
10
2
1,187
765
828
878
501
409
122
24
o
J
3
Source: U.S. Census Bureau. 1999. 1997 Economic Census, Manufacturing Industry Series. Various Reports. EC97M-3212A through -3212E, -3219A, and -3219C.
Washington, DC: U.S. Government Printing Office.
-------
from niche-market players, these factories are mostly medium-sized establishments
employing between 20 and 250 employees. Although there are relatively few factories
employing more than 250 employees, many of these are large-scale operations owned by
major market players, such as Georgia-Pacific Corporation, Andersen Corporation, and
Armstrong Holdings. Only the windows and doors industry has facilities with more than
1,000 employees.
The veneer and plywood industry and the reconstituted wood products industry have
fewer plants than the other wood building products industries, but they tend to be large-scale
plants with a relatively high degree of automation. Most factories employ between 50 and
500 employees. Only nine employ greater than 500 employees, and none more than 1,000
employees.
3.2.3 Capacity Utilization
Capacity utilization indicates how well the current facilities meet demand. One
measure of capacity utilization is, quite simply, capacity utilization rates. A capacity
utilization rate is the ratio of actual production volumes to full-capacity production volumes.
For example, if an industry is producing as much output as possible without adding new floor
space or equipment, the capacity utilization rate would be 100 percent. On the other hand, if
under the same constraints the industry were only producing 75 percent of its maximum
possible output, the capacity utilization rate would be 75 percent. On an industry-basis,
capacity utilization is highly variable from year to year depending on economic conditions.
It is also variable on a company-by-company basis depending not only on economic
conditions, but also on a company's strategic position in its particular industry. While some
plants may have idle production lines or empty floor space, others may be in need of
additional space or capacity.
Table 3-4 lists the capacity utilization rates for each wood building products industry
for 1993 through 1998. The rise in new housing starts and remodeling of existing residential
and light commercial buildings that accompanied the United State's economic expansion
through the 1990s boosted the capacity utilization rates of many key wood building products
industries, particularly those industries producing structural panels, hardboard, particleboard,
and medium-density fiberboard (SIC codes 2435, 2436, and 2493). In general, companies in
these industries invested heavily in capacity additions at existing plants and construction
projects for new facilities in the mid-1990s, leading to lower capacity utilization rates in
1996 and 1997 as the new capacity came on-line. However, increased growth in demand for
3-12
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Table 3-4. Full Production Capacity Utilization Rates by Industry: Fourth Quarters
1993 through 1998
SIC
2426
2429
2431
2435
2436
2439
2493
SIC Description
Hardwood dimension and flooring
mills
Special product sawmills, NEC
Millwork
Hardwood veneer and plywood
Softwood veneer and plywood
Structural wood members, NEC
Reconstituted wood products
NAICS
321918
321113
321911
321918
321211
321212
321213
321214
321219
1993
87
59
64
85
92
66
92
1994
85
77
61
86
95
66
92
1995
73
68
74
81
95
74
88
1996
76
59
69
83
86
77
86
1997
79
38
71
84
84
72
82
1998
75
35
71
86
91
73
84
Source: U.S. Census Bureau. 2000. Survey of Plant Capacity, 1998. MQ-C1(98). Washington,DC: U.S. Government Printing
Office.
structural wood products fueled capacity utilization increases in 1998 (Wood Technology,
1996). The softwood products industry was operating at 95 percent capacity in 1994 and
1995. Additional capacity lowered rates to the mid-80s over 1996 and 1997, but spare
production capacity was used to meet demand in 1998, pushing the rate once again over the
90 percent mark. As such, this industry is seeing the most construction projects for new
facilities that are expected to come online in the next 1 or 2 years of any wood building
products industry (CPA, 2000).
Wood flooring, windows, doors, and other types of millwork companies also saw
fluctuations in capacity utilization, but these fluctuations were not as pronounced as in the
structural products industry. An increasingly large share of these products are made of other
materials, such as vinyl, fiberglass, and aluminum. This does not imply that the companies
manufacturing these products are doing poorly overall; rather, many of the major producers
of wood windows and doors are also producing the same products using those other
materials. The wood shingles and other special sawmills products industry, however,
declined over the 1990s. Capacity utilization for this industry peaked in 1994 at 77, before
dropping to 35 in 1998.
3-13
-------
3.2.4 Wood Building Products Database Facilities
Table 3-5 presents detailed information on a selected number of wood building
products facilities that have coatings operations, including the location of each facility, its
estimated sales volume in dollars, its employment, and its coatings usage in gallons. As
Table 3-5 indicates, a relatively small number of large companies, such as Masonite
Corporation (a subsidiary of International Paper, one of the largest American paper
companies) and Georgia-Pacific Corporation, operate many facilities. Georgia-Pacific and
one of its many subsidiaries operate 9 of the 47 facilities listed. Other major market players
with facilities in this table include Jeld-Wen Inc., Andersen Corporation, Armstrong
Holdings, Willamette Industries, and Weyerhaeuser Company. As Section 3.4 discusses, it is
common for many of the largest wood building products manufacturers to operate in more
than one industry either directly or through one of their subsidiaries.
3.3 Wood Building Products Companies
Companies that own individual facilities are legal business entities that have the
capacity to conduct business transactions and make business decisions that affect their
respective facilities. The terms "company" and "firm" are synonymous and refer to the legal
business entity that owns one or more facilities. This section presents information on the
parent companies that own wood building products manufacturing facilities.
3.3.1 Company Characteristics
Table 3-6 lists some of the largest companies operating in each wood building
products industry profiled in this document. As the following sections discuss, many
companies cross industry lines, producing a diverse array of forest products. Because of the
large number of firms in these markets, only a selection of the largest firms is presented.
3.3.2 Horizontal and Vertical Integration
Companies within wood building products industries can be horizontally and/or
vertically integrated. Vertical integration refers to the degree to which firms own different
levels of production and marketing. Vertically integrated firms may produce the inputs used
in their production processes and own the distribution network to sell their products to
consumers. These firms may own several plants, each of which handles these different
stages of production. For example, a company that owns a plywood and veneer plant may
also operate sawmills and door factories or other wood-based products, such as paper and
3-14
-------
Table 3-5. Selected Wood Building Products Facilities, by Product Category
Product
Market
Exterior
Siding and
Door Skins
Company
Abt Co. Inc. (A subsidiary of
Louisiana Pacific's ABT
Building Products Corp.)
Catawba Hardwood (A
subsidiary of Georgia-Pacific
Corp.)
Colledgewood, Inc.
Jeld-Wen Fiber Inc. (A
subsidiary of Jeld-Wen Inc.)
Masonite Corp. (A
subsidiary of International
Paper Co.)
Stimson Lumber Co.
Facility
ABTCO Inc
Catawba Hardboard
Colledgewood, Inc
Jeld-Wen Fiber of
Oregon
Jeld-Wen Fiber of
North Carolina
Jeld-Wen Fiber of
White Swan
Jeld-Wen Fiber of
Iowa
Masonite
Corp/Laurel Facility
Masonite
Corp/Towanda PA
Mill
Masonite
Corp/Ukiah Facility
Stimson Lumber -
Forest Grove
City
Roaring River
Catawba
Lincoln
Klamath Falls
Marion
White Swan
Dubuque
Laurel
Wysox
Ukiah
Forest Grove
State
NC
sc
CA
OR
NC
WA
IA
MS
PA
CA
OR
SIC
2493
2493
2435
2493
2493
2493
2493
2493
2493
2493
2493
Sales Number of Coatings
Estimates Employees Usage
NAICS ($106)a at Facility3 (Gallons)
321219
321219
321211
321219
321219
321219
321219
321219
321219
321219
321219
250.0
NA
15.0
NA
7.5
35.0
15.0
NA
NA
250.0
75.0
600
NA
40
150
85
80
80
NA
NA
300
250
468,792
207,094
146,145
219,551
238,249
237,238
188,132
1,992,450
938,766
454,600
58,541
(continued)
-------
Table 3-5. Selected Wood Building Products Facilities, by Product Category (Continued)
Oi
Product
Market Company
Interior DuraFlake Inc. (A
"Stock" subsidiary of Willamette
Panels Industries, Inc.)
Georgia-Pacific Corp.
Louisiana-Pacific Corp.
Masonite Corp. (A
subsidiary of International
Paper Co.)
States Industries Inc.
Willamette Industries Inc.
Facility
Duraflake
Georgia-Pacific Corp
(North Little Rock
Hardboard)
Georgia-Pacific
Panelboard/MDF
Georgia-Pacific Corp
(Duluth, MN)
Eugene Operations
Louisiana-Pacific Corp
Missoula PB
Masonite Corp/Danville
Facility
Masonite Corp/Lisbon
Falls Facility
Masonite Corp/Pilot
Rock Mill
States Industries, Inc
Willamette Industries,
Inc/KorPine Div
Willamette Industries,
Inc/Lillie Div
Willamette Industries,
Inc/Surepine Div
City
Albany
North Little
Rock
Monticello
Duluth
Eugene
Missoula
Danville
Lisbon Falls
Pilot Rock
Eugene
Bend
Lillie
Simsboro
State
OR
AR
GA
MN
OR
MT
VA
ME
OR
OR
OR
LA
LA
SIC
2493
2493
2493
2493
2435
2493
2493
2493
2493
2435
2493
2493
2493
Sales Number of
Estimates Employees
NAICS ($106)a at Facility3
321219
321219
321219
321219
321211
321219
321219
321219
321219
321211
321219
321219
321219
35.0
NA
15.0
NA
75.0
75.0
NA
NA
NA
75.0
75.0
35.0
35.0
120
NA
35
NA
285
240
NA
NA
NA
500
175
125
170
Coatings
Usage
(Gallons)
1,103
13,570
70,832
12,028
21,243
93,101
7,776
302,758
1,278,574
74,606
33,413
27,285
18,155
(continued)
-------
Table 3-5. Selected Wood Building Products Facilities, by Product Category (Continued)
Product
Market
Interior Wall
Paneling and
Tileboard
Flooring
Company
ABT Building Products
Corp. (A subsidiary of
Louisiana Pacific)
AFCO Industries Inc.
Chesapeake Hardwood
Products Inc.
Georgia-Pacific Corp.
Bruce Hardwood Floors,
Inc. (A subsidiary of
Armstrong Holding's
Triangle-Pacific Corp.
unit.)
Hartco Quality Wood
Flooring, Inc. (A
subsidiary of Armstrong
Holding's Triangle-
Pacific Corp. unit.)
Facility
ABT Building Products
Corp/Toledo
AFCO Industries, Inc.
Chesapeake Hardwood
Products, Inc
Georgia-Pacific
Corp/Hardwood Plywood
Georgia-Pacific Corp
(Phillips, WI)
Georgia Pacific Corp
(Superior, WI)
Bruce Hardwood
Flooring, LP
Bruce Hardwood
Flooring, LP
Bruce Hardwood
Flooring, LP
Hartco Flooring Co/East
& West PlantsOneida
Hartco Flooring
Co/Industrial Lane Plant
City
Toledo
Holland
Chesapeake
Savannah
Phillips
Superior
Statesville
Center
Nashville
Oneida
Oneida
State
OH
MI
VA
GA
WI
WI
NC
TX
TN
TN
TN
SIC
2499
2493
2435
2435
2499
2493
2426
2426
2426
2426
2426
NAICS
321999
321219
321211
321211
321999
321219
321918
321918
321918
321918
321918
Sales
Estimates
($106)a
15.0
15.0
75.0
75.0
35.0
35.0
NA
75.0
75.0
NA
NA
Number of
Employees
at Facility3
81
85
100
268
90
125
NA
385
400
600
600
Coatings
Usage
(Gallons)
320,440
154,127
298,173
249,463
125,246
30,513
7,946
37,416
19,273
6,628
1,348
(continued)
-------
Table 3-5. Selected Wood Building Products Facilities, by Product Category (Continued)
Product
Market
Windows,
Doors, and
Other Products
Company
Andersen Corp.
Eagle
Window and Door,
Facility
Andersen Corp.
Eagle
Window and
City
Bayport
Dubuque
State
MN
IA
SIC
2431
2431
NAICS
321911
321911
Sales
Estimates
($106)a
NA
NA
Number of
Employees
at Facility3
300
500
Coatings
Usage
(Gallons)
459,207
33,236
oo
Inc. (A subsidiary of Door, Inc
American Architectural
Products Inc.)
Eggers Industries Inc.
Georgia-Pacific Corp.
Oshkosh Architectural
Door Company
Pella Corp.
Quaker Window Products
Inc.
Suburban Door Co
Weyerhaeuser Co.
Woodgrain Millworks,
Inc.
Eggers Industries
Eggers Industries
Custom Plywood Div,
East Plant
Georgia Pacific
Corp/Roxboro Eng
Lumber Plant
Oshkosh Architectural
Door Company
Pella Corp.
Pella Corp.
Quaker Window
Products Co
Suburban Door Co
Weyerhaeuser Co.
Woodgrain Millwork,
Inc, Millwork &
Prefinish Divs
Neenah WI
Two Rivers WI
Roxboro NC
Oshkosh WI
Pella
Carroll
Freeburg
IA
IA
MO
Tualatin OR
Marshfield WI
Fruitland ID
2431 321911
2431 321911
2493 321219
2431 321911
2431 321911
2431 321911
2431 321911
2431 321911
2499 321999
2431 321918
35
NA
75
15
35
15
250
NA
200 36,961
NA 12,820
240 93,311
105
3,500
700
400
4,738
339,671
87,021
100
80 29,706
700 29,151
750 NA
1 Current sales and employment estimates are from American Business Information.
-------
Table 3-6. Sample Companies in Wood Building Products Industries, 1998
Industry Company
Location
Organization
Type
Industry
Sales (S106)a
Employment
Hardwood dimension and flooring (SIC 2426/NAICS 321918)
Willamette Industries
Georgia-Pacific Corp.
Triangle-Pacific Corp.
WTD Industries Inc.
Coastal Lumber Co.
Northwest Hardwoods Div.
Crown Pacific LP
Collins Pine Co.
Anderson- Tully Co.
Anthony Timberlands Inc.
Woodcraft Industries Inc.
Geo McQuesten Company Inc.
Pierson-Hollowell Company Inc.
Robbins Inc.
Walter H. Weaber Sons Inc.
Webster Lumber Co.
Burruss Co.
LD McFarland Company Ltd.
Memphis Hardwood
Linden Lumber Company Inc.
Catawissa Lumber and Specialty
SDS Lumber Co.
Lafayette Manufacturing Co.
Ross-Simmons Hardwood
Charles D. Roberts Co.
Special product mills (SIC 2429/NAICS 321113)
Pacific Coast Building Products
Geo McQuesten Company Inc.
Miller Shingle Company Inc.
Shakertownl992Inc.
Blue Grass Cooperage Co.
Independent Stave Company Inc.
Robbins Lumber Inc.
Colonial Cedar Company Inc.
Portland, OR
Atlanta, GA
Dallas, TX
Portland, OR
Weldon, NC
Portland, OR
Portland, OR
Portland, OR
Memphis, TN
Bearden, AR
St. Cloud, MN
North Billerica, MA
Lawrenceburg, IN
Cincinnati, OH
Lebanon, PA
Bangor, WI
Lynchburg, VA
Tacoma, WA
Memphis, TN
Linden, AL
Catawissa, PA
Bingen, WA
Lafayette, TN
Longview, WA
Greensboro, NC
Sacramento, CA
North Billerica, MA
Granite Falls, WA
Louisville, KY
Winlock, WA
Lebanon, MO
Searsmont, ME
Kent, WA
Public
Public
Division
Public
Private
Division
Subsidiary
Private
Private
Private
Private
Subsidiary
Private
Private
Private
Private
Private
Private
Private
Private
Private
Subsidiary
Subsidiary
Private
Private
Private
Subsidiary
Private
Subsidiary
Private
Private
Private
Private
3,425
1,470
534
284
250
250
210
90
70
66
58
50
50
50
50
45
40
40
38
37
35
29
28
28
27
360
50
36
26
24
23
16
14
2,500
1,500
200
200
200
400
75
75
(continued)
3-19
-------
Table 3-6. Sample Companies in Wood Building Products Industries, 1998 (Continued)
Industry Company
Millwork (SIC 2431/NAICS 321911 & -18)
Champion International Corp.
Potlatch Corp.
MascoTech Inc.
SPX Corp.
Andersen Corp.
Jeld-Wen Inc.
Sierra Pacific Industries
Griffon Corp.
Greif Bros. Corp.
Mannington Mills Inc.
TJ International Inc.
Clopay Corp., A Griffon Co.
Morgan Products Ltd.
Associated Materials Inc.
Marvin Windows and Doors
SNE Enterprises Inc.
Alside Div.
West Lumber Company Inc.
Overhead Door Corp.
Marvin Lumber and Cedar Co.
Woodgrain Millworks Inc.
Springs Window Fashions Div.
Huttig Sash and Door Co.
Marley (USA) Holding Corp.
Location
Stamford, CT
San Francisco, CA
Taylor, MI
Muskegon, MI
Bayport, MN
Klamath Falls, OR
Redding, CA
Jericho, NY
Delaware, OH
Salem, NJ
Boise, ID
Cincinnati, OH
Williamsburg, VA
Dallas, TX
Warroad, MN
Wausau, WI
Akron, OH
Atlanta, GA
Dallas, TX
Warroad, MN
Fruitland, ID
Middleton, WI
Chesterfield, MO
Johnson City, TN
Organization
Type
Public
Public
Public
Public
Private
Private
Private
Public
Public
Private
Public
Subsidiary
Public
Private
Private
Subsidiary
Division
Private
Private
Private
Private
Division
Subsidiary
Subsidiary
Industry
Sales ($M)a
5,880
1,554
1,281
1,109
1,000
850
750
655
637
600
577
577
500
373
350
350
311
290
285
280
260
250
240
220
Employment
24,400
6,700
5,100
7,100
3,600
9,000
2,500
3,600
4,800
3,000
3,000
1,600
1,600
2,700
2,700
1,800
1,400
1,800
2,800
2,800
2,500
1,900
2,300
1,600
Hardwood plywood and veneer (SIC 2435/NAICS 321211)
Georgia-Pacific Corp.
Champion International Corp.
Boise Cascade Corp.
Louisiana-Pacific Corp.
Ply Gem Industries, Inc.
Temple-Inland
Atlanta, GA
Stamford, CT
Boise, ID
Portland, OR
New York, NY
Diboll, TX
Public
Public
Public
Public
Subsidiary
Subsidiary
5,923
5,880
5,108
2,486
775
502
6,000
24,400
20,000
12,000
4,000
2,900
(continued)
3-20
-------
Table 3-6. Sample Companies in Wood Building Products Industries, 1998 (Continued)
Industry Company
Location
Organization
Type
Industry
Sales ($M)a
Employment
Hardwood plywood and veneer (SIC 2435/NAICS 321211) (continued)
Columbia Forest Products, Inc.
Timber Products Co.
Crown Pacific LP
Medite Corp
Sierra Pacific Industries
Darlington Veneer Company Ltd.
Springfield Forest Products Inc.
Plywood Panels Inc.
Indian Head Div.
Hunt Plywood Company Inc.
States Industries Inc.
Besse Forest Products Group
Chesapeake hardwood Products
David R.Webb Inc.
Atlantic Veneer Corp.
Day Companies Inc.
Pierson-Hollowell Company Inc.
Eggers Industries Inc.
Portland, OR
Springfield, OR
Portland, OR
Medford, OR
Standard, CA
Darlington, SC
Eugene, OR
New Orleans, LA
Newport, VT
Ruston, LA
Eugene, OR
Gladstone, MI
Chesapeake, VA
Edinburgh, IN
Beaufort, NC
Memphis, TN
Lawrenceburg, TN
Two Rivers, WI
Private
Private
Subsidiary
Subsidiary
Division
Private
Private
Private
Division
Private
Private
Private
Private
Private
Private
Private
Private
Private
500
360
210
200
180
140
100
97
90
63
63
60
60
60
50
50
50
45
3,500
1,000
1,600
700
600
600
700
200
800
500
400
600
200
600
600
200
100
400
Softwood plywood and veneer (SIC 2436/NAICS 321212)
Georgia-Pacific Corp.
Champion International Corp.
Boise Cascade Corp.
TJ International Inc.
Kimball International Inc.
Ply Gem Industries, Inc.
Plum Creek Manufacturing LP
Timber Products Co.
MacMillan Bloedel Inc.
WTD Industries Inc.
Medite Corp
Sierra Pacific Industries
Union Camp Corp.
Atlanta, GA
Stamford, CT
Boise, ID
Boise, ID
Jasper, IN
New York, NY
Seattle, WA
Springfield, OR
Montgomery, AL
Portland, OR
Medford, OR
Standard, CA
Savannah, GA
Public
Public
Public
Public
Public
Subsidiary
Subsidiary
Private
Subsidiary
Public
Subsidiary
Division
Division
5,923
1,310
994
992
992
775
376
360
320
284
200
180
162
6,000
6,300
5,000
4,000
8,900
4,000
1,800
1,000
2,500
1,100
700
600
1,400
(continued)
3-21
-------
Table 3-6. Sample Companies in Wood Building Products Industries, 1998 (Continued)
Industry Company
Location
Organization
Type
Industry
Sales ($M)a
Employment
Softwood plywood and veneer (SIC 2436/NAICS 321212) (continued)
Stimson Lumber Co.
US Forest Industries Inc.
Springfield Forest Products Inc.
Borden Inc.
Omak Wood Products Inc.
South Coast Lumber Co.
Freres Lumber Co.
Sun Studs Inc.
Atlantic Veneer Corp.
Decor Gravure Corp.
Philomath Forest Products Co.
K-Ply Inc.
Structural Wood Members (SIC 2439/NAICS
Georgia-Pacific Corp
Frank Calandra Inc.
Robbins Manufacturing Co.
Richardson Industries Inc.
Trussway Inc.
Automated Building
Denlinger Inc.
Florida Engineered Construction
Fierson Building Supply Inc.
Lumber Inc.
East Coast Lumber and Supply
Co.
Schuck Component Systems
Shelter Systems of New Jersey
Standard Structures Inc.
Portland, OR
Medford, OR
Eugene, OR
St. Louis, MO
Omak, WA
Brookings, OR
Lyons, OR
Roseburg, OR
Beaufort, NC
Fairfield, AL
Philomath, OR
Port Angeles, WA
321213 & -14)
Atlanta, GA
Cresson, PA
Tampa, FL
Sheboygan Falls, WI
Houston, TX
Excelsior, MN
Paradise, PA
Tampa, FL
Jackson, MS
Albuquerque, NM
Fort Pierce, FL
Glendale, AZ
Hainesport, NJ
Santa Rosa, CA
Private
Private
Private
Subsidiary
Private
Private
Private
Private
Private
Private
Subsidiary
Subsidiary
Public
Private
Private
Private
Private
Private
Private
Private
Private
Private
Private
Division
Private
Private
130
120
100
90
90
90
75
75
50
50
41
40
5,923
577
100
100
56
35
28
28
25
25
21
21
20
20
1,400
800
700
500
500
500
300
400
600
200
300
200
6,000
3,000
400
500
500
400
300
300
200
100
100
200
200
200
Reconstituted Wood Products (SIC 2493/NAICS 321219)
Louisiana-Pacific Corp.
Contran Corp.
Boise Cascade Corp.
Temple-Inland Corp.
Portland, OR
Dallas, TX
Boise, ID
Diboll, TX
Public
Private
Division
Subsidiary
2,486
1,961
994
502
12,000
11,300
5,000
2,900
(continued)
3-22
-------
Table 3-6. Sample Companies in Wood Building Products Industries, 1998 (Continued)
Industry Company
Location
Organization
Type
Industry
Sales ($M)a
Employment
Reconstituted Wood Products (SIC 2493/NAICS 321219) (continued)
Jason Inc.
Valcor, Inc.
Masonite Corp.
Medite Corp.
Celotex Corp.
Timber Products Co.
Union Camp Corp.
Collins Pine Co.
TEC Inc.
Panel Processing, Inc.
Woods Group Inc.
Homasote Co.
Domtar Industries Inc.
Dominance Industries Inc.
Ponderosa Products Inc.
Tectum Inc.
GVK America Inc.
Bally Block Co.
Rodman Industries Div.
Lydall Inc.
Davis Wood Products Inc.
Milwaukee, WI
Dallas, TX
Chicago, IL
Medford, OR
Tampa, FL
Medford, OR
Savannah, GA
Portland, OR
Palatine, IL
Alpena, MI
Albuquerque, NM
West Trenton, NJ
Albany, OR
Broken Bow, OK
Albuquerque, NM
Newark, OH
Biscoe, NC
Bally, PA
Marinette, WI
Covington, TN
Hudson, NC
Public
Subsidiary
Division
Subsidiary
Subsidiary
Division
Division
Private
Subsidiary
Subsidiary
Private
Private
Subsidiary
Subsidiary
Subsidiary
Private
Subsidiary
Private
Division
Division
Private
443
396
250
200
190
187
162
90
30
28
27
24
20
20
20
16
15
14
13
12
12
2,800
5,300
1,300
700
2,700
900
1,400
300
200
200
200
200
100
100
100
100
100
100
100
100
200
a This column includes company sales for each industry where possible. Otherwise, total company sales are listed.
Source: Heil, Scott F., ed. Ward's Business Directory of U.S. Public and Private Companies 1998. Volume 5:
Ranked by sales within four-digit SIC. Information Access Company.
paperboard. A company may be integrated as far back as the logging camp, as in the cases of
Georgia-Pacific and Champion International. Indeed, the largest players in the structural
wood products industry (e.g., siding, panels) earn substantial portions of their revenues in
pulp and paper, paperboard, and other forest industries. Georgia-Pacific's chemical unit is
one of the largest producers of chemical inputs for forest products.
Horizontal integration refers to a company owning more than one facility that
produces the same or similar products or owning facilities that produce a diversity of
products. The companies may be directly integrated by owning additional facilities outright
or indirectly by owning additional facilities through affiliations with other companies and
3-23
-------
subsidiaries. Several wood building products companies have high degrees of horizontal
integration. First, most of the largest market players are horizontally integrated within their
own industry in that they own multiple flooring factories, such as Armstrong Holdings,
which operates Bruce Hardwood Flooring and Hartco Quality Wood Floors, among other
companies, through its Triangle Pacific unit. Second, many also operate numerous
subsidiaries in other Wood building products industries or related industries, such as pulp
and paper, like International Paper.
3.3.3 Company Trends
Among the largest forest products companies, business decisions focus on core areas
of operations, such as paper, pulp, and paperboard. Although the burgeoning housing and
remodeling market in the U.S. helped boost corporate profits in the 1990s, pulp and paper
divisions, rather than wood products, are driving business decisions because they are the
largest part of the industry and the most capital intensive (Morrison and George, 2000). The
predominant strategic philosophy of the industry is that larger companies with larger market
shares will be able to maintain a greater degree of price stability in key markets relative to
recent years. As a result, key players in the hardwood, softwood, and reconstituted wood
products industries have been bought, sold, or merged into the operations of former rivals.
International Paper's acquisition of Champion International is currently pending, as is Plum
Creek Timber Company's purchase of Georgia-Pacific's Timber Company unit.
Despite consolidation in the millwork and structural members industries, regional and
small manufacturers are expected to thrive. Many larger industry players are purchasing
smaller companies in a drive to increase market share, boost income, and increase brand
identification (Halladay, 1998). For example, Jeld-Wen, Inc., an Oregon-based window and
door manufacturer, now owns more than 150 companies in the U.S., Canada, and Europe.
Profit ratios for the wood building products industries vary; the median for millwork is 2.8
percent, for hardwood dimension and flooring 3.5 percent, and for structural wood members
4.7 percent (Dun & Bradstreet, 1997). Profit margins are expected to remain stable or
improve so long as the remodeling and new construction markets continue to grow. When
the expected slow down in these markets occurs, it is expected that margins will be squeezed
as prices drop and more capacity is idled (Halladay, 1998).
3-24
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SECTION 4
DEMAND-SIDE OVERVIEW
Wood building products are demanded primarily as an input into the construction of
new residential and commercial buildings as well as for remodeling and renovation of
existing buildings. The demand for wood building products is based on their value to
consumers as part of a final good and is essentially a derived demand dependent on the rate
of new construction, remodeling, and renovation. Surface-coating of these products is a
value-adding process demanded for its ability to increase a wood building product's aesthetic
value and durability.
This section provides information on the uses and the consumers of the wood
building products industry. Consumers, desired and evaluated product characteristics, and
the purpose of consumption are described. In addition, substitution possibilities are
discussed and demand elasticity estimates are provided.
4.1 Demand Characteristics
Contractors and individual homeowners purchase wood building products for new
construction, additions to existing structures, remodeling, and renovations of residential and
commercial buildings. From 1990 to 1999, total construction sales increased 26 percent. As
construction sales increase, the sales of wood building products also increase because these
products are used as inputs into the construction process. Table 4-1 presents construction
sales for the period 1990 to 1999. In 1999, remodeling and improvements consisted of 23
percent of total construction sales.
When choosing wood building products to purchase, consumers consider
characteristics such as
distinctive grains and colors,
heat resistance,
energy efficiency,
4-1
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Table 4-1. Annual Value of Construction: 1990-1999 ($1061997)
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Total 585,483 508,296 667,672 548,012 583,988 585,037 627,646 656,630 701,083 735,956
Construction
Residential 234,674 195,345 287,126 250,049 247,945 260,461 287,581 289,014 309,888 335,919
Buildings
Nonresidential 176,225 136,970 152,130 122,915 130,273 143,778 157,452 172,990 187,850 188,532
Buildings
Source: Annual value of construction put in place in the United States: 1995-1999 and annual value of construction put in place in the United States: 1990-1994. Available
from the U.S. Census Bureau.
All numbers have been adjusted to 1997 dollars by the consumer price index available from the Bureau of Labor Statistics.
to
-------
maintenance,
flexibility of structures, and
conformance to shapes.
While many of the above characteristics of wood building products are determined primarily
by the uncoated wood substrate, coatings influence some of the characteristics of the wood
building products. In particular, the coating directly affects durability and aesthetics.
Consumers can readily observe the aesthetic characteristics of the coatings when they
purchase wood building products. The most important aspects of coating appearance are
color and shine. While the benefits of coatings for the appearance of wood building products
are easily observable at purchase, the durability aspects of the coatings are only observable
over time. Coatings add increased resistance to water damage, mildew, insects, decay,
chipping, and scratching. As wood building products age, coatings that chip, crack, or
scratch greatly diminish the appearance of the product and may reduce the product's
resistance to decay. Because the quality of the coating cannot be perfectly known at the time
of purchase, the reputation of the company manufacturing the wood building products is
important. A company with a history of problems with their wood coatings may experience
a reduced demand for their wood building products in the future.
4.2 Substitution Possibilities in Consumption
The possibilities for substitution in the wood building products industries include four
major types of materials: fiberglass, gypsum-fiberboard, plastic, vinyl, and metal products.
The specific substitutes for each type of wood building products may differ (e.g., wood
windows may be replaced by vinyl windows, while wood entrance doors are more likely to
be competing with metal doors), but there are generally viable substitutes for the wood
building products potentially affected by this regulation. The appearance and durability of
each material affects the consumer's choice of product. An increased price of coated wood
building products due to regulation of the industry may lead to some substitution towards
products that have become relatively cheaper to consumers in comparison to wood building
products. If there is a reduction in the durability and/or aesthetic quality of the wood
coatings as a result of environmental regulations leading to changes in the coatings used, this
might also lead to the substitution of alternative products for wood building products.
4-3
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4.2.1 Demand Elasticity Estimates
The elasticity of demand for coated wood building products is a measure of the
responsiveness of the quantity of coated products demanded to a change in the price of those
products. The responsiveness of the quantity demanded to price increases with the
availability of substitutes, the time frame of adjustment (consumers are typically more
responsive to price changes in the long run than in the short run), and the share of the
consumer's budget devoted to the good. The more inelastic the demand, the more easily
firms will be able to pass the costs of regulation on to consumers. Based on empirical
estimates provided by EPA, the demand for wood building products produced by sawmills
and planing mills and for miscellaneous wood products is inelastic (see Table 4-2). Demand
for wood furniture and millwork, on the other hand, is highly elastic, with an elasticity of
-3.4, implying that a 1 percent increase in price will lead to a 3.4 percent reduction in
quantity demanded. However, because millwork is grouped with furniture in this estimate,
the demand elasticity of furniture is likely dominating the elasticity estimate. The demand
for furniture is likely to be much more elastic than the demand for wood building products in
general, but millwork is likely to be more elastic than the demand for windows and doors, for
example, because it is a more expensive specialty product. Overall, the demand for wood
building products is probably fairly price inelastic because it depends so strongly on the rate
of building construction, remodeling, and renovation and the cost of wood building products
is a relatively small share of the total cost of construction.
4-4
-------
Table 4-2. Estimates of Elasticities of Demand for the Wood Building Products Industry
SIC NAICS Industry Demand Elasticity
242 321918,337215, Sawmills and Planing -0.2
321113,321912,32113, Mills
32192, and 321999
243,251,252,253,254 321911,321918, Wood Furniture and -3.4
321211,321212. millwork
321214 and 321213
249 321114,321219, Miscellaneous Wood -0.2
339999, 32192, 321999, Products
and 333414
Source: E.H. Pechan & Associates, Inc. Qualitative Market Impact Analysis for Implementation of the Selected Ozone and
PMNAAQS. Prepared for the U.S. Environmental Protection Agency.
4-5
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SECTION 5
MARKET DATA
This section provides data on domestic production, domestic consumption, imports,
and exports of wood building products. It also includes data on gross margin growth in
prices. Finally, this section discusses trends and projections for the wood building products
industry.
5.1 Market Value
Data on the volumes of wood building products produced and consumed annually in
the United States, including imports and exports, are discussed below.
5.1.1 Domestic Production and Consumption
The growing U.S. housing market has spurred increased production in the wood
building product industry. Table 5-1 lists the historical value of production and Table 5-2
lists output figures for each product in the wood building product industry. From 1992 to
1997, total U.S. production of softwood veneer increased almost 70 percent and the
production of double-hung windows increased 24 percent. In 1999, new construction
projects were valued at 764.2 billion dollars, a 7.4 percent increase over 1998. Furthermore,
the average size of residential housing is increasing (McGraw-Hill, 2000). On average, the
construction of a 2085 square foot single family home requires 2,325 square feet of siding,
3,100 square feet of roofing material, 6,144 square feet of interior wall material, 15 windows,
12 interior doors, 7 closet doors, 2 exterior doors, 2 garage doors, and 2,085 square feet of
flooring material (Materials Used in Building a 2085, 2000).
5.1.2 International Trade
As indicated in Tables 5-3 and 5-4, international trade is a major component of the
U.S. market for wood building products. From 1991 to 1997, total imports of sawmill and
planing millwood products increased 71 percent, while exports of millwork increased 30
percent. Table 5-5 provides data on imports of wood products by country for 1993 to 1997.
5-1
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Table 5-1. Total Production of Wood Products ($1061997)
1977 1982 1987 1992 1997
Prefabricated Wood Buildings 4,073.10 2,502.20 3,841.10 2,774.60
Hardwood Dimension and Flooring Mills 1,764.70 1,697.00 2,716.40 2,640.20 NA
Special Product Sawmills, NEC 303.60 319.00 298.30 347.70
Wood Window Units 1,331.60 1,346.10 3,283.00 3,217.70 2,579.40
Wood Sash, Excluding Sash shipped in Window Units 208.50 117.90 274.30 180.40 136.90
Wood Window and Door Frames (including door 578.30 369.90 589.80 653.90 462.90
frames shipped in door units, excluding window 1,546.20 1,508.30 2,484.10 2,138.20 2,042.20
frames shipped in window units wood panel, flush, and
molded face doors, interior and exterior, including
doors with glazed sections)
Other wood doors, including garage, bifold, patio 1,047.00 934.40 1,637.80 1,305.00 1,335.50
Cabinet, screen, storm, and louver
Millwork 3,360.00 3,480.80 6,213.10 5,040.10 NA
Hardwood Veneer and Plywood 2,535.00 2,406.00 3,018.70 2,725.40 2,741.40
Softwood Veneer and Plywood 7,828.70 5,407.10 7,212.30 6,388.50 5,748.00
Structural Wood Members, NEC 1,708.30 1,556.40 3,106.10 3,138.10
Reconstituted Wood Products NA NA 4,766.10 5,359.30 5,167.80
NA = Not available
Sources: U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Millwork, Plywood, and Structural
Members Not Elsewhere Classified. MC92-1-24B. Washington, DC: U.S. Government Printing Office.
U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Wood Buildings and Mobile Homes.
MC92-1-24. Washington, DC: U.S. Government Printing Office.
U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Logging Camps, Sawmills, and Planing
Mills. MC92-1-24A. Washington, DC: U.S. Government Printing Office..
U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Other Millwork (Including Flooring).
EC97M-3219C. Washington, DC: U.S. Government Printing Office.
U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Truss Manufacturing. EC97M-3212D.
Washington, DC: U.S. Government Printing Office.
U.S. Census Bureau. 1995. 1992 Census ofManufactures, Industry Series. Wood Window and Door Manufacturing.
EC97M-3219A. Washington, DC: U.S. Government Printing Office.
U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Reconstituted Wood Product
Manufacturing. EC97M-3212E. Washington, DC: U.S. Government Printing Office.
U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Prefabricated Wood Building
Manufacturing. EC97M-3219F. Washington, DC: U.S. Government Printing Office.
U.S. Census Bureau. 1995. 1992 Census ofManufactures, Industry Series. Sawmills. EC97M-3211A.
U.S. Census Bureau. 1995. 1992 Census ofManufactures, Industry Series. Softwood Veneer and Plywood
Manufacturing. EC97M-3212B. Washington, DC: U.S. Government Printing Office.
All values inflated to 1997 dollars using the producer price index available from the Bureau of Labor Statistics.
5-2
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Table 5-2. Total Quantity and Value of Wood Products Produced in the United States
1997
Laminated veneer lumber
Wood I-joists, I-beams
Glued laminated timber beams
Softwood veneer, including veneer backed with
paper, cloth, or other flexible material
Interior softwood plywood rough including touch
sanded, C-D exterior glue
Interior softwood plywood rough including touch
sanded underlayment exterior glue
Other interior softwood plywood, rough including
touch sanded
Exterior plywood rough, including touch sanded, C-C
Exterior softwood plywood, rough, including touch
sanded, C-C plugged
Exterior softwood plywood, sanded, A-C
Exterior softwood sanded B-B plyform
Exteriro softwood plywood, sandedB-C
Softwood plywood overlays
Softwood plywood siding
Other softwood specialties
Softwood veneers including 2ply veneers
Birch veneer, including veneer backed with paper,
cloth, or toher flexible material
Maple veneer, including veneer backed with paper,
cloth, or toher flexible material
Other domestic hardwood veneers including veneers
backed with paper, cloth, or other flexible material,
nsk
Quantity
(106sq. ft.)
20.30
520.90
326.40
1,609.10
6,802.40
2,944.20
1,019.40
907.20
186.20
909.30
274.00
1,157.00
215.50
887.70
129.10
Value
($106)
314,631
515,751
333,364
764,064
1,411,433
669,793
223,408
217,402
55,018
288,355
77,299
293,568
101,754
286,470
47,336
1992
Quantity
(106sq. ft.)
NA
NA
NA
2,731.50
8,977.50
2,620.60
1,205.20
310.30
436.30
NA
NA
NA
NA
NA
NA
452.20
416.10
439.40
1,224.90
Value
($106)
NA
NA
NA
609,467
1,673,290
539,930
225,079
68,600
96,266
NA
NA
NA
NA
NA
NA
106,281
29,980
39,493
153,321
(continued)
5-3
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Table 5-2. Total Quantity and Value of Wood Products Produced in the United States (continued)
1997
1992
Quantity Value Quantity Value
(106sq. ft.) ($106) (106sq. ft.) ($106)
Hardwood plywood veneer cor, except prefinished
hardwood plywood
Hardwood plywood, particleboard coreexcept
prefinished hardwood plywood
Hardwood plywood, medium density fiberboard (MDF)
core, except prefinished hardwood plywood made from
purchased hardwood plywood
Hardwood plywood, other coreincluding lumber,
hardboard, oriented strandboard, and waferboard except
prefinished hardwood plywood made from purchased
hardwood plywood, nsk
Prefinished hardwood plywood made from purchased
hardwood plywood
Hardwood veneered panels, including two-plyveneer
Particleboard, industrial, including commercial and
shelving, made from particleboard produced at this
location (3/4 ")
Particleboard, flooring, included underlayment and
manufactured (mobile) home decking, made from
particleboard produced at this location
Other particle board, including stepping, siding,
sheathing, and door core, made from particleboard
proudced at this location
822.70 454,300
101.70 87,198
87.50 71,023
13.90
3,723.00
399.80
140.80
108,043
53,893
NA
NA
30,009
738.10 178,358
510.90 296,980
1,040,834 NA NA
NA
NA
Waferboard and oriented strandboard sheathing (3/8")
Waferboard and oriented strandboard underlayment
(3/8")
Other waferboard and oriented strandboard
Industrial medium density fiberboard (MDF) made from
MDF produced at this location
6,882.10
1,155.40
2,011.40
884.90
796,045
146,499
266,250
301,860
NA
NA
NA
NA
NA
NA
NA
NA
(continued)
5-4
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Table 5-2. Total Quantity and Value of Wood Products Produced in the United States (continued)
1997
1992
Quantity
(106sq. ft.)
Value
($106)
Quantity
(106sq. ft.)
Value
($106)
Other medium density fiberboard(MDF) made from 349.00
MDF produced at this location
Coated or laminated hardboard siding made from 2,561.10
hardboard produced at this location
Cellulosic fiberboard (insulating board) (1/2") 1,020.20
Coated or laminated hardboard interior paneling made
from purchased hardboard
Prefinished particleboard made form purchased particle
board (3/4")
Double hung wood window units, cladded 4,089.70
Other double hung wood window units 1,336.40
Other casement wood windows 824.60
Horizontal siding wood windows, cladded 146.90
All other wood window units, including awning and 1,833.20
single hung
Glazed wood sash, excluding sash shipped in window 924.10
units
Panel Douglas fir doors, interior and exterior, including 1,211.30
doors with glazed sections
Wood siding (weatherboards or clapboards) including
drilled or treated with permanent wood preservatives
(mill board ft)
Oak flooring (3/4 ", 1/2", and 3/8" nominally thick 409.70
toungue and groove (T&G) and end matched (EM) strip;
and 5/16" nominally thick square edge strip (million
board ft)
Oak parquetry (mill board ft) 22.30
Other oak flooring (mill board ft) 49.10
Maple flooring (milll board ft) 26.70
129,935
352,483
143,988
657,958
NA
NA
737.90
68,592 1,008.30
NA
60.20
NA
NA
130,043 1,097.40 104,301
100.40 46,422
321,652
688,857 5,075.40 679,716
168,471 2,485.60 217,350
142,351 NA NA
34,534 NA NA
302,269 NA NA
57,206
NA
46,380
273.10 380,887
31,384 27.60 42,373
121,315 41.60 80,387
58,095 15.40 26,192
NA = Not available
Source: U.S. Census Bureau. 1999. 1997 Economic Census, Manufacturing Industry Series. Various Reports. EC97M-
3211A, -3212A through -3212E, -3219A, and -3219C. Washington, DC: U.S. Government Printing Office.
5-5
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Table 5-3. Total Imports, 1991-1997 ($1061997)
SIC NAICS Description 1991 1992 1993 1994 1995 1996 1996 1997
242 11331,321912,321918,32199 Lumber, hard wood 4,446 5,004 5,599 6,480 6,440 7,644 7,644 7,595
9,321918,337215, and 32192 dimension stock and
flooring, etc.
243 321911,321918, Millwork, plywood, and 1,241 1,492 1,671 1,829 1,867 2,163 2,163 2,528
33711,321211, veneer
321212,321214, and 321213
245 32192,321991, and 321992 Prefabricated wood products 13 13 11 23 25 44 44 44
249 321114,321219,339999, Miscellaneous wood 1,323 1,561 1,694 2,035 2,213 2,623 2,623 2,916
32192, 321999, and 333414 products
Source: U.S. Department of Commerce. U.S. Total Imports, 1991-1997 by two-digit and three-digit SIC product groups. U.S. Foreign Trade Highlights,
.
U.S. Department of Commerce. U.S. Total Imports, 1991-1997 by two-digit and three-digit SIC product groups. U.S. Foreign Trade Highlights,
.
All prices were inflated by the timber products producer price indexes: 1990 to 1998 available from the U.S. Bureau of Statistics.
-------
Table 5-4. Total Exports, 1991-1997 ($1061997)
SIC NAICS Description 1991 1992 1993 1994 1995 1996 1997
242 11331,321912,321918,321999,32 Lumber, hard wood dimension 3,565 3,262 2,719 2,605 2,800 2,709 2,598
1918,337215, and 32192 stock and flooring, etc.
243 321911,321918,33711,321211, Millwork, plywood, and veneer 1,100 1,220 1,182 1,160 1,215 1,274 1,431
321212,321214, and 321213
245 32192,321991, and 321992 Prefabricated wood products 281 97 63 90 94 117 119
249 321114,321219,339999,32192, Miscellaneous wood products 523 541 531 576 586 707 779
321999, and 333414
Source: U.S. Department of Commerce. U.S. Total Exports, 1991-97 by two-digit and three-digit SIC product groups. U.S. Foreign Trade Highlights,
.
All prices inflated by the selected timber products producer price indexes: 1990 to 1998 available from the U.S. Bureau of Statistics.
-------
Table 5-5. Value of U.S. Imports of Wood Products ($1997)
Canada
Indonesia
China; Peoples Republic of
Mexico
Brazil
Chile
Malaysia
Taiwan
France
Thailand
New Zeland
Italy
Sweden
Germany
Russian Federation
Austria
Philippines
Peru
Finland
Ecuador
All Others
Total
1993
6,220,872
464,396
150,881
317,687
255,786
95,287
198,898
212,228
46,686
76,985
54,111
48,080
11,240
29,798
12,926
1,042
37,746
6,733
18,757
20,710
206,674
8,487,523
1994
7,471,052
476,093
194,400
300,141
334,187
134,769
214,403
197,941
51,999
98,165
76,951
59,094
21,872
38,576
22,337
950
37,451
8,714
21,835
18,316
292,885
10,072,135
1995
7,095,740
473,759
226,366
303,747
367,633
163,474
188,179
173,171
72,772
115,280
75,833
66,926
44,806
43,333
36,962
1,359
44,271
8,304
20,746
21,840
322,927
9,867,443
1996
8,632,951
452,142
258,238
392,964
344,468
173,361
217,413
151,098
79,781
122,043
66,623
69,413
72,458
53,424
42,096
23,805
43,025
12,940
25,540
30,194
332,360
11,596,341
1997
9,468,470
481,954
340,066
439,767
407,145
252,533
180,727
155,989
97,888
126,139
83,426
90,708
101,497
64,838
47,659
25,802
44,096
24,256
27,809
33,078
372,876
12,866,756
Source: U.S. Department of Agriculture. Wood Products: International Trade and Foreign Markets.
.
In 1997, Canada made up nearly 74 percent of U.S. imports followed by Indonesia at 4
percent and Mexico at 3 percent. However, this data also includes lumber and wood chips as
well as wood building products.
Table 5-6 lists export value on U.S. wood products exports between 1993 and 1997.
In 1997, exports to Japan made up the majority of U.S. exports at 35 percent, followed
closely by Canada at 22 percent, and Germany at 5 percent. Over time exports of wood
products may decline as the price of wood increases and foreign manufactures substitute
other products for wood ("Vinyl Slows Wood Millwork", 2000).
5-8
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Table 5-6. Value of U.S. Exports by Country ($103)
Japan
Canada
Mexico
Germany
United Kingdom
Italy
Spain
Belgium-Luxembourg
Hong Kong
Taiwan
Republic of Korea
Dominican Republic
Netherlands
France
The Bahamas
Jamaica
Australia
Peoples Republic of China
Saudi Arabia
Indonesia
Portugal
Leeward- Windward Islands
Denmark
Ireland
Philippines
All Others
Total Exports
1993
3,193,977
1,113,409
474,287
319,970
232,990
170,623
104,646
119,228
36,419
178,690
378,078
55,762
86,012
55,134
24,026
32,171
96,950
106,277
26,649
17,013
7,781
22,797
22,042
15,160
23,048
374,121
7,286,660
1994
3,132,187
1,197,738
412,812
332,370
231,588
203,699
132,853
116,215
54,195
159,386
311,530
56,535
86,456
53,520
26,662
32,725
61,401
64,065
13,150
22,346
8,805
21,295
20,862
18,212
12,889
386,971
71,170,467
1995
3,273,102
1,297,404
248,688
344,759
239,115
207,616
139,232
121,852
62,021
149,510
323,686
63,241
94,500
49,293
31,016
39,204
67,790
28,001
25,375
28,752
12,079
25,437
19,133
24,123
12,501
402,567
7,329,997
1996
3,336,328
1,275,534
249,774
299,433
244,264
182,779
146,458
104,285
79,836
125,924
274,335
50,231
70,232
48,223
29,543
38,679
53,660
31,967
24,191
35,737
15,530
26,406
20,063
20,557
39,523
455,119
7,278,610
1997
2,510,776
1,579,428
292,288
367,241
291,027
223,971
175,909
101,724
101,825
129,294
286,355
73,257
86,003
52,511
45,172
48,447
55,429
49,640
24,204
37,607
19,565
26,674
33,325
30,455
33,119
517,222
7,192,468
Source: U.S. Department of Agriculture. Wood Products: International Trade and Foreign Markets.
.
5-9
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5.2 Market Prices
Increased domestic construction rates have caused wood building product prices to
rise over the past couple of years. Between June and July 1998, for example, the gross
margins of wood building products manufacturers increased sharply because of rising prices.
The largest gross margin increase was for softwood veneer and plywood at 5.41 percent,
followed by a 2.29 percent increase in general sawmills and planing mills, 1.57 percent
increase in reconstituted wood products, and 1.19 percent increase for other special product
sawmills ("What's Up," 2000). The drop in the Asian housing market has decreased demand
for lumber and wood building products in that region. However, the growing domestic
housing market has been increasing demand enough to more than compensate for the decline
in Asia markets.
5.3 Industry Trends
Products in the wood building products industry are geared to construction and
renovation markets. Consumers are interested in cost efficiency and aesthetics. The strong
domestic housing and residential repairs market significantly attributes to growth in this
industry. Sawmill and planing mill products are projected to increase output around 2 to 4
percent with prices remaining stable (McGraw-Hill, 2000).
The drop in the Asian housing markets decreased millwork exports, and increased
imports from Latin America place downward pressure on U.S. prices of wood building
products ("Wood Molding & Millwork Producers Association," 1998). New trends in the
industry focus on coatings that better preserve and prevent moisture ("Millwork Industry
Faces Opportunities, Challenges," 1999). Since 1992, residential window sales have grown
by approximately 5 percent. Commercial window sales have also increased by 11 percent
annually. Window production is estimated at 50 million units annually (Halladay, 1998). In
1997, 48.9 million units were shipped to residential construction sites. Non-residential
construction consumed around 400 million total square feet of windows. Current trends in
the window industry include the use of vinyl framing in residential and commercial markets,
reducing the amount of wood consumed. Window markets are projected to continue
expanding at 3 percent annually as a result of new construction growth ("Window Industry,"
2000).
Softwood plywood and veneer maintained a small increase in output in 1998. Within
the next five years, softwood plywood will fall into niche high-end construction markets.
Growth in the construction and mobile home markets is expected to increase demand for
hardwood veneer and plywood. Hardwood veneer and plywood are projected to increase
5-10
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shipments 2 percent annually. However, they are expected to face stronger competition from
lower-end nroducts (McGraw-Hill 2000Y
lower-end products (McGraw-Hill, 2000).
In 1998, reconstituted wood products product shipments increased by 4.6 percent to
4.9 billion dollars. In 1998, the U.S. and Canada particle board and MDF manufacturers
shipped 7.74 billion square feet (3/4-inch basis), a 5.1 percent increase over 1997. American
and Canadian structural panels have also experienced production growth. In 1999, structural
panel producers produced 40.2 billion square feet (3/8-inch basis), an increase of nearly 4
percent over 1998. Panel production is projected to drop slightly in 2001 and rebound in
2002 ("North American Industry, " 2000). Reconstituted wood products are forecasted to
increase shipments 4.8 percent this year.
5-11
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REFERENCES
Carliner, Michael. 1998. "Lumber Price Decline." Housing Economics 46(6).
Composite Panel Association (CPA). 2000. "1999 North American Capacity Report."
http://www.pbmbf.com/pubs/1999NorthAmericanCapacitySurvey.html. As obtained
on August 25, 2000.
Dun & Bradstreet. 1997. Industry Norms and Key Business Ratios. Murray Hill, NJ: Dun
& Bradstreet, Inc.
E.H. Pechan & Associates, Inc. Qualitative Market Impact Analysis for Implementation of
the Selected Ozone andPMNAAQS. Prepared for the U.S. Environmental Protection
Agency.
Halladay, Clark. 1998. "Emerging Trends Shape Window Industry." U.S. Glass 33(9).
Heil, Scott F., ed. 1998. Ward's Business Directory of U.S. Public and Private Companies
1998. Volume 5. Information Access Company.
Hellwig, Vinson. July 27, 1999. Presentation on Wood Building Products (Surface
Coatings) NESHAP to the Coatings and Consumer Products Group of the Office of
Air Quality Planning and Standards at the U.S. Environmental Protection Agency.
Lambourne, R. 1999. "Paint Composition and Applications - A General Introduction." In
Paint and Surface Coatings: Theory and Practice. R. Lambourne and T.A. Strivens,
eds. Cambridge, England: Woodhead Publishing, Ltd.
Laminating Materials Association. 2000. "Statistical Report
Summary.". As obtained on August 17, 2000.
"Materials Used in Building a 2085-Square-Foot-Single-Family Home."
As obtained August 2000.
McCoy, Michael. 1997. "Georgia-Pacific Chemical Unit a Key Piece of Paper Company."
Chemical Market Report 252(7).
McGraw-Hill Companies. U.S. Industry and Trade Outlook 2000. New York: The
McGraw-Hill Companies, Inc.
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Midwest Research Institute (MRI). 1998. "Preliminary Industry Characterization: Wood
Building Products Surface Coating." Prepared for the Coatings and Consumer
Products Group of the Office of Air Quality Planning and Standards of the U.S.
Environmental Protection Agency.
"Millwork Industry Faces Opportunities, Challenges." 1999. Wood and Wood Products
March 126(2):48.
Morrison, Scott, and Nicholas George. 2000. "IP Victory Stresses Need to Consolidate:
Paper companies in Merger Mode." The Financial Times May 15, 2000. P. 29.
"North American Industry Sets Structural-Panel Output Mark." 2000. Wood & Wood
Products 127(3): 11.
"Panel Capacity Race Starts to Slow Down." 1996. Wood Technology 123(7):32-48.
Reeves, Dave, Midwest Research Institute. July 24, 2000. Memorandum to Larry Sorrels
and Luis Lluberas, U.S. EPA . Number of major sources within the wood building
products (surface coating) industry.
Stoye, Dieter, ed. 1993. Paints, Coatings, and Solvents. Weinheim, Germany and New
York: VCH Verlagsgesellschaft mbH.
Twarok, Chris. 2000. "Wood Products." In U.S. Industry and Trade Outlook 2000. New
York: The McGraw-Hill Companies, Inc.
U.S. Census Bureau. 1995. 1992 Census of Manufactures, Industry Series. Various Reports.
MC92-I-24A through -24D. Washington, DC: U.S. Government Printing Office.
U.S. Census Bureau. 1996. 1994 Annual Survey of Manufactures: Statistics for Industry
Groups and Industries. M94(AS)-1. Washington, DC: U.S. Government Printing
Office.
U.S. Census Bureau. 1998. 1996 Annual Survey of Manufactures: Statistics for Industry
Groups and Industries. M96(AS)-1. Washington, DC: U.S. Government Printing
Office.
U.S. Census Bureau. 1999. 1997 Economic Census, Manufacturing Industry Series. Various
Reports. EC97M-3211A, -3212A through -3212E, -3219A, and -3219C. Washington,
DC: U.S. Government Printing Office.
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U.S. Census Bureau. 2000. "Bridge Between NAICS and SIC: Lumber and Wood
Products." . As obtained
on August 24, 2000.
U.S. Census Bureau. 2000. 1992 Census of Manufactures: Concentration Ratios in
Manufacturing. MC92-S-2. .
As obtained on August 24, 2000.
U.S. Census Bureau. 2000. Survey of Plant Capacity, 1998. MQ-C1(98). Washington, DC:
U.S. Government Printing Office.
U.S. Department of Agriculture. Wood Products: International Trade and Foreign Markets.
. As obtained August
2000.
U.S. Department of Commerce. U.S. Total Imports, 1991-1997 by two-digit and three-digit
SIC product groups. U.S. Foreign Trade Highlights,
As obtained
August 2000.
U.S. Environmental Protection Agency. 1995. EPA Office of Compliance Sector Notebook
Project: Profile of the Lumber and Wood Products Industry. EPA/310-R-95-006.
Washington, DC: U.S. Environmental Protection Agency.
"Vinyl Slows Wood Millwork." 2000. Wood & Wood Products 105(2):71.
"Window Industry is Experiencing Growth and Change."
. As obtained August 2000.
"What's Up with Margin Gains in the Lumber Industries?" Ice-Alert.
As
obtained August 2000.
"Wood Molding & Millwork Producers Association." 1998. Wood & Wood Products
103(13):86.
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TECHNICAL REPORT DATA
(Please read Instructions on reverse before convicting)
i/R-01-002
3 RECIPIENT'S ACCESSION NO
UBTITLE
ofile for the Proposed Wood Building Products
5 REPORT DATE
February 2001
6 PERFORMING ORGANIZATION CODE
8 PERFORMING ORGANIZATION REPORT NO
rrels, Innovative Strategies and Economics Group
i ORGANIZATION NAME AND ADDRESS
/ironmental Protection Agency
' Air Quality Planning and Standards
ity Strategies and Standards Division (MD-15)
Triangle Park, NC 27711
10 PROGRAM ELEMENT NO
11 CONTRACT/GRANT NO
3 AGENCY NAME AND ADDRESS
.z, Director
" Air Quality Planning and Standards
7 Air and Radiation
/ironmental Protection Agency
Triangle Park, NC 27711
13 TYPE OF REPORT AND PERIOD COVERED
14 SPONSORING AGENCY CODE
EPA/200/04
ITARY NOTES
. presents economic and financial information on the industries affected by the proposed rule.
lation serves as background data for the economic screening analysis conducted for this rule.
i types of information within this profile include: employment data, revenues by industry,
by industry, and profitability data.
KEY WORDS AND DOCUMENT ANALYSIS
DESCRIPTORS
ofile
ION STATEMENT
Unlimited
b IDENTIFIERS/OPEN ENDED TERMS
Air Pollution control
Economic Impact Analysis
Regulatory Flexibility Analysis
19 SECURITY CLASS (Report)
Unclassified
20 SECURITY CLASS (Page)
Unclassified
c. COSATI Field/Group
21 NO. OF PAGES
74
22 PRICE
(Rev. 4-77) PREVIOUS EDITION IS OBSOLETE
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