Against the grain: Despite rising import competition, industry demand will be sustained by other sectors

The Wood Product Manufacturing industry produces a diverse range of wood products. The construction sector is the industry's largest revenue source, so operators have benefited over the five years to 2018 from strong growth in housing starts. Consumer spending has also increased, lifting demand for household wood products. Although the industry's construction-related segments have experienced growing demand over the past five years, producers of wooden household goods have come against stronger competition from low-cost imports, which have grown to satisfy more than one-third of domestic demand. Additionally, these manufacturers have experienced competition from products made with substitute materials, such as plastic and metal...purchase to read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 13-18
4.5%
Forecast Growth 18-23
Profit
Employment
38,222
Businesses
7,325
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Producers of wooden household goods have come up against stronger competition from low-cost imports
  • Despite profit pressures, participation in the industry has increased
  • Remodeling activity is a major determinant of demand for the industry
  • Industry Report - Industry Key Buyers Chapter

    The Wood Product Manufacturing industry has a low level of market share concentration. In 2018, no company in the industry is expected to hold a market share greater than 5.0%. However, the majority of the companies in the industry are small operators that employ fewer than five employees and operate within a narrowly defined geographic region.Since this industry encompasses such a diverse array of products, ranging from building materials to toothpicks, it would be extremely difficult for any single enterprise to corner a substantial share of the market. However, market share concentration varies between product segments. For...purchase to read more.

    Additional Insights for the Wood Product Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wood Product Manufacturing Industry are

  • Economies of scale
  • Access to secure revenue
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Housing starts and Consumer spending in the Wood Product Manufacturing industry impact industry performance..

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    What's in this report

    What is the Wood Product Manufacturing Industry?

    This industry manufactures wood products not produced by sawmills or by manufacturers of veneer, engineered wood, millwork and mobile homes. Therefore, industry products are miscellaneous. They include wood ladders, cabinets, kitchenware, broom handles, kiln-dried lumber, reels and toothpicks.

    Industry Products
  • Architectural products
  • Wood stock and fuel
  • Home furnishings
  • Baskets, reels and stoppers
  • Tools and handles
  • Sporting goods
  • Industry Activities
  • Bottle cork
  • Wooden kitchenware (e.g. bowls, cutting boards)
  • Wood reels
  • Prefabricated fence section
  • Firewood
  • Wood flour
  • Furniture inlays
  • Wood handle (e.g., broom, mop, hand tool)
  • Kiln drying lumber
  • Wooden ladder
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Consumer spending
  • Price of sawmill lumber
  • Trade-weighted index

  • Current Performance
  • Rising demand
  • Industry structure
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand to persist
  • Competition to rise
  • Threats to export growth
  • Table: Wood Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wood Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Home Builders
  • Manufactured Home Wholesaling
  • Home Furnishings Stores

  • Key Selling Industries
  • Millwork
  • Sawmills & Wood Production

  • Products & Services
  • Wood stock and fuel
  • Architectural products
  • Home furnishings
  • Baskets, reels and stoppers
  • Sporting goods
  • Other
  • Tools and handles
  • Chart: Wood Product Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Wholesalers
  • Building contractors
  • Exports
  • Businesses
  • Other
  • Chart: Major Market Segmentation for the Wood Product Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Wood Product Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wood Product Manufacturing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Wood Product Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Wood Product Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Price of sawmill lumber (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Dowel
  • A cylindrical rod usually made from wood, plastic or metal. Dowels are often used as structural reinforcement in cabinet making.
  • Kiln-Dried Lumber
  • Lumber that has been dried in a kiln to give it a low moisture content. When the drying process is complete, the lumber typically has a moisture content between 6.0% and 8.0%.
  • Wood Reel
  • A round device used for storing and transporting flexible materials, such as wires, cables, fishing line, tubing and line
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Wood Product Manufacturing provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Wood Product Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Wood Product Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Wood Product Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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