Engineered Wood Product Manufacturing in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS OD5826Revenue
$3.6bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
5,209
Businesses
303
Wages
$XXX.Xm
Engineered Wood Product Manufacturing in the US industry analysis
Engineered wood manufacturers develop wood products such as laminated veneer lumber and other engineered wood members. New home construction is the industry's largest market and demand largely depends on the number of new housing starts and private spending on home improvements, both of which grew throughout the majority of the five years to 2023, enabling manufacturers to thrive due to healthy downstream demand. This was especially evident amid the COVID-19 pandemic, as the Federal Reserve lowered interest rates to stimulate economic activity. Historically low mortgage rates incentivized home buying, building and renovating activity. Engineered Wood Product Manufacturing industry revenue has been expanding at a CAGR of 3.0% over the past five years and is expected to total $3.6 billion in 2023, when revenue will fall by an estimated 4.9%. Profit has also increased due to declining wage and purchase costs.
Trends and Insights
- The Federal Reserve lowered interest rates to curtail the negative effects of the COVID-19-induced recession and stimulate the stagnant economy. Mortgage rates followed suit and were lowered as well, boosting residential construction activity.
- Engineered wood members remains the industry’s largest product segment. Laminated veneer lumber also account for a significant portion of demand.
- Engineered wood manufacturers choose to locate themselves near downstream markets, making the Southeast the most popular choice to set up establishments. This region is also home to a quarter of the US population, making residential construction activity plentiful.
- Competitive pricing is key to attracting downstream customers in a relatively low-margin industry. Engineered wood manufacturers must also be able to deliver a range of high-quality products that have aesthetic appeal.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 3.0 % over the past five years, to reach an estimated $3.6bn in 2023.
Trends and Insights
Residential construction activity skyrockets due to low interest rates
- The residential construction market covers demand from single and multi-family homes, along with apartment buildings.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Residential construction activity will slow due to increasing mortgage rates
- Over the outlook period, the Federal Reserve will raise interest rates to maintain a sustainable level of economic growth.
Biggest companies in the Engineered Wood Product Manufacturing in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Boise Cascade Company | 137.9 | 15.5 | 11.2 | |
Louisiana-Pacific Corporation | 118.8 | 64.8 | 54.6 | |
Georgia-Pacific Llc | 98.3 | 4.9 | 4.9 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Laminated Veneer Lumber, Engineered Wood Members (except truss) and Other. Laminated Veneer Lumber is the largest segment of the Engineered Wood Product Manufacturing in the US.
Trends and Insights
Demand for laminated veneer lumber has increased alongside a booming residential construction market
- Engineered wood products are manufactured by binding the strands, particles, fibers or veneers of wood together. These products are most commonly used in the residential construction market.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Prefabricated Home Manufacturing in the US
- Plastic Products Miscellaneous Manufacturing in the US
- Structural Metal Product Manufacturing in the US
Complementors
- Sawmills & Wood Production in the US
- Millwork in the US
- Wood Product Manufacturing in the US
International industries
- Wood Panelling Manufacturing in Canada
- Fabricated Wood Manufacturing in Australia
- Fabricated Wood Manufacturing in New Zealand
- Veneer Sheet & Wood-Based Panel Manufacturing in the UK
- Plywood Manufacturing in China
Table of Contents
About this industry
Industry definition
This industry includes establishments primarily engaged in manufacturing engineered wood products, including: I-Joists used in floor and roof construction; laminated veneer lumber used for headers, beams, studs and columns; and glue-laminated timber, structural wood panels, plywood, rim board, siding and other specialty products.
What's included in this industry?
Laminated veneer manufacturingHardwood veneer manufacturingEngineered wood manufacturingCompanies
Boise Cascade CompanyLouisiana-Pacific CorporationGeorgia-Pacific LlcPurchase this report to view all 4 major companies in this industry.
Related Terms
VeneerPlywoodJoistEngineered WoodIndustry Code
NAICS 32121 - Engineered Wood Product Manufacturing in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Federal Reserve lowered interest rates to curtail the negative effects of the COVID-19-induced recession and stimulate the stagnant economy. Mortgage rates followed suit ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Engineered wood members remains the industry’s largest product segment. Laminated veneer lumber also account for a significant portion of demand.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Engineered wood manufacturers choose to locate themselves near downstream markets, making the Southeast the most popular choice to set up establishments. This region is also ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competitive pricing is key to attracting downstream customers in a relatively low-margin industry. Engineered wood manufacturers must also be able to deliver a range of high-...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Weyerhaeuser Company is vertically integrated. This enables them to leverage economies of scale, which reduces purchase costs and increases profitability.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Boise Cascade Company's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Louisiana-Pacific Corporation's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Georgia-Pacific Llc's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Boise Cascade Company, and factors influencing its performance in the industry
- Description and key data for Louisiana-Pacific Corporation, and factors influencing its performance in the industry
- Description and key data for Georgia-Pacific Llc, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Engineered wood manufacturers are under heavy environmental and noise regulation. These include the Clear Water Act, Resource Conservation and Recovery Act, Clean Air Act, th...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Purchases are the largest cost for engineered wood manufacturers. Purchases primarily include hardwood and softwood lumber, resins used as wood preservatives and coatings suc...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Engineered Wood Product Manufacturing in the US industry in United States in 2024?
The market size of the Engineered Wood Product Manufacturing in the US industry in United States is $3.6bn in 2024.
How many businesses are there in the Engineered Wood Product Manufacturing in the US industry in 2023?
There are 303 businesses in the Engineered Wood Product Manufacturing in the US industry in United States, which has declined at a CAGR of 1.1 % between 2018 and 2023.
Has the Engineered Wood Product Manufacturing in the US industry in United States grown or declined over the past 5 years?
The market size of the Engineered Wood Product Manufacturing in the US industry in United States has been growing at a CAGR of 3.0 % between 2018 and 2023.
What is the forecast growth of the Engineered Wood Product Manufacturing in the US industry in United States over the next 5 years?
Over the next five years, the Engineered Wood Product Manufacturing in the US industry in United States is expected to grow.
What are the biggest companies in the Engineered Wood Product Manufacturing in the US market in United States?
The biggest companies operating in the Engineered Wood Product Manufacturing market in United States are Boise Cascade Company, Louisiana-Pacific Corporation and Georgia-Pacific Llc
What does the Engineered Wood Product Manufacturing in the US in United States include?
Laminated veneer manufacturing and Hardwood veneer manufacturing are part of the Engineered Wood Product Manufacturing in the US industry.
Which companies have the highest market share in the Engineered Wood Product Manufacturing in the US in United States?
The company holding the most market share in United States is Boise Cascade Company.
How competitive is the Engineered Wood Product Manufacturing in the US industry in United States?
The level of competition is low and increasing in the Engineered Wood Product Manufacturing in the US industry in United States.
