Lumber Wholesaling in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS 42331Revenue
$142.9bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
128k
Businesses
7,003
Wages
$XX.Xbn
Lumber Wholesaling in the US industry analysis
The Lumber Wholesaling industry has experienced a slight decline over the past five years, as the industry has faced volatile economic conditions, supply chain disruptions and fluctuations in downstream construction markets. The lumber wholesaling industry's fortunes largely move with those of both the residential and nonresidential construction market and with the prevailing price of lumber, which saw significant growth in 2020 and 2021 and has since fallen, though has still seen overall growth over the past five years. Overall, industry revenue has dropped at an expected CAGR of 0.7% to $128.0 billion over the past five years, including an expected rebound of 2.3% in 2024 alone.
Over the past five years, interest rates have experienced notable fluctuations, which have directly affected demand for lumber and led to increased revenue volatility. In times of lower interest rates, like those seen in 2020 and 2021, the housing market experienced a significant boom, driving up demand for lumber and industry revenue. However, the subsequent rise in interest rates since 2022 has led to a contraction in the housing market, reducing new residential construction projects and dampening demand for lumber, resulting in reduced industry revenue. These cyclical changes highlight the relationship between interest rates, construction activity and demand for lumber.
As the Federal Reserve gradually lowers interest rates, which they are expected to begin to do in 2024, the housing market will expand, building demand for wholesale lumber. The industry will also benefit from growth in private nonresidential construction as corporate profit increases. Industry revenue is expected to grow at a CAGR of 2.2% to $143.0 billion over the next five years, but profit growth will be limited as market saturation increases price-based competition.
Trends and Insights
- Interest rates heavily influence lumber demand. When rates were slashed during the pandemic, residential construction and lumber demand soared, but recent hikes have slowed the market down.
- Construction companies are a crucial downstream market for wholesalers. Demand from both residential and non-residential construction has contributed to revenue growth over the past five years.
- Nearby access to raw materials minimizes transportation costs. Wholesalers seek to minimize the cost of moving goods from upstream customers to downstream markets.
- Price-based competition is a hallmark of the industry. Retailers look for the lowest priced lumber products, and large wholesalers benefit from economies of scale.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.5 % over the past five years, to reach an estimated $142.9bn in 2024.
Trends and Insights
Lumber is an essential element in the construction of residential and nonresidential buildings
- Companies in the Lumber Wholesaling industry distribute lumber, plywood, millwork and wood panel products to residential, industrial and commercial construction companies, hardware stores and carpentry contractors in the United States.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Falling interest rates will encourage residential construction
- The Federal Reserve, expected to begin cuts in 2024, will gradually lower interest rates over the coming years. This will lower the cost of capital, encourage residential construction activity and drive up demand for lumber.
Biggest companies in the Lumber Wholesaling in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Bmc Stock Holdings, Inc. | 782.6 | 27.2 | 3.5 | |
Belletete's, Inc. | 3.4 | 0.4 | 11.0 |
To view the market share and analysis for all 2 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 Wholesaling lumber and boards, Wholesaling wood millwork and Wholesaling plywood and panels. Wholesaling lumber and boards is the largest segment of the Lumber Wholesaling in the US.
Trends and Insights
Wholesaling lumber and boards lead the way
- The lumber and boards segment includes lumber that is supplied rough, finished or dressed.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Stone, Concrete & Clay Wholesaling in the US
- Roofing, Siding & Insulation Wholesaling in the US
Complementors
- Sawmills & Wood Production in the US
- Wood Paneling Manufacturing in the US
International industries
- Lumber Wholesaling in Canada
- Timber Wholesaling in Australia
- Timber Wholesaling in New Zealand
- Construction Supplies Wholesaling in the UK
- Construction Supplies Wholesaling in Ireland
Table of Contents
About this industry
Industry definition
This industry distributes a range of lumber, plywood, millwork and wood panel products to contractors, home improvement stores and hardware stores. This industry also includes distributors of nonwood doors, windows and frames and distributors of metal millwork.
What's included in this industry?
Lumber and boardsMillworkPlywood panelsWod panel productsCompanies
Bmc Stock Holdings, Inc.Belletete's, Inc.Purchase this report to view all 2 major companies in this industry.
Related Terms
FIBERBOARDMILLWORKPLYWOODMOLDINGIndustry Code
NAICS 42331 - Lumber Wholesaling 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
Interest rates heavily influence lumber demand. When rates were slashed during the pandemic, residential construction and lumber demand soared, but recent hikes have slowed t...
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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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
Construction companies are a crucial downstream market for wholesalers. Demand from both residential and non-residential construction has contributed to revenue growth over t...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
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
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
Nearby access to raw materials minimizes transportation costs. Wholesalers seek to minimize the cost of moving goods from upstream customers to downstream markets.
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 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
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
Price-based competition is a hallmark of the industry. Retailers look for the lowest priced lumber products, and large wholesalers benefit from economies of scale.
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 2019-2024
- 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
Wholesalers operate on a regional or local basis. They specialize in a specific range of products and distribute them to their local or regional customer networks.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Bmc Stock Holdings, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Belletete's, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Bmc Stock Holdings, Inc., and factors influencing its performance in the industry
- Description and key data for Belletete's, Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Tariffs limit competition from abroad. Duties on French doors, antidumping duties on Canadian lumber and other restrictions protect domestic wholesalers.
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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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
Significant volatility in downstream demand and key input prices has contributed to decreasing profit. As revenue has fallen over the past five years, increasing purchase cos...
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
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 Lumber Wholesaling in the US industry in United States in 2024?
The market size of the Lumber Wholesaling in the US industry in United States is $142.9bn in 2024.
How many businesses are there in the Lumber Wholesaling in the US industry in 2024?
There are 7,003 businesses in the Lumber Wholesaling in the US industry in United States, which has declined at a CAGR of 0.7 % between 2019 and 2024.
Has the Lumber Wholesaling in the US industry in United States grown or declined over the past 5 years?
The market size of the Lumber Wholesaling in the US industry in United States has been growing at a CAGR of 1.5 % between 2019 and 2024.
What is the forecast growth of the Lumber Wholesaling in the US industry in United States over the next 5 years?
Over the next five years, the Lumber Wholesaling in the US industry in United States is expected to grow.
What are the biggest companies in the Lumber Wholesaling in the US market in United States?
The biggest companies operating in the Lumber Wholesaling market in United States are Bmc Stock Holdings, Inc. and Belletete's, Inc.
What does the Lumber Wholesaling in the US in United States include?
Lumber and boards and Millwork are part of the Lumber Wholesaling in the US industry.
Which companies have the highest market share in the Lumber Wholesaling in the US in United States?
The company holding the most market share in United States is Bmc Stock Holdings, Inc..
How competitive is the Lumber Wholesaling in the US industry in United States?
The level of competition is high and steady in the Lumber Wholesaling in the US industry in United States.
