Wood Paneling Manufacturing in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS 32121Revenue
$29.4bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
94,326
Businesses
14,821
Wages
$X.Xbn
Wood Paneling Manufacturing in the US industry analysis
The price of wood saw record-high growth in 2021, contributing to industry expansion as demand surged from the booming housing market stimulated by historically low mortgage rates. The key materials in this industry—such as round or hewn wood products, rough and dressed softwood lumber and various types of veneer and plywood—are sensitive to price fluctuations, which directly impact industry revenue. Pandemic-induced supply chain disruptions further exacerbated the issue by limiting the wood supply, leading to unprecedented price increases and profit volatility. However, as mortgage rates climbed by more than double in the latter half of the current period, residential construction slowed, curbing demand for wood products and resulting in industry contraction when wood prices plummeted in 2023.
As the industry looks toward 2024, modest growth is anticipated despite the muted expectations for the housing market, driven largely by the persistently high mortgage rates. While these rates are expected to gradually decline in the latter half of the year, they will remain elevated, compelling potential homebuyers to adjust their housing plans. Nevertheless, favorable demographics, especially in the starter home segment, will sustain demand for new housing. The industry's revenue growth is expected to benefit from improvements in home sales and a resurgence in wood prices. However, emerging risks, such as prolonged inflation, could temper industry growth in 2024. Overall, industry revenue is projected to grow at a CAGR of 1.3% to reach $31.4 billion by 2029.
Projected declines in mortgage rates are expected to stimulate residential construction, subsequently increasing demand for wood panels. Growth in the housing market will contribute to industry growth, which is anticipated to be in the low-single-digit range over the outlook period, in line with historical trends. This growth projection assumes stable prices for input materials, as any significant fluctuations could substantially impact revenue. Additionally, competition from imported goods is expected to decline due to a combination of factors, including exchange rates and tariffs on imports. Overall, industry revenue is projected to increase at a CAGR of 1.3% to reach $31.4 billion by 2029.
Trends and Insights
- Wood prices reached record highs in 2021, boosting industry growth. Higher prices were driven by strong housing market demand and low mortgage rates as well as supply chain disruptions from the pandemic.
- Reconstituted wood product manufacturing dominates the market with a 33.1% share. Reconstituted wood benefits from its versatility and cost-effectiveness, appealing widely across various construction and furniture applications.
- Wood panel 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.
- Fluctuations in raw material costs, primarily the price of wood, directly impact competitive dynamics for manufacturers. Firms that can secure stable and cost-effective wood supplies can maintain or reduce product prices, providing leverage against competitors.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.9 % over the past five years, to reach an estimated $29.4bn in 2024.
Trends and Insights
The price of wood experienced record-high growth in 2021, contributing to industry expansion
- The key materials used in this industry include round or hewn wood products, rough and dressed softwood lumber and hardwood and softwood veneer and plywood. As a result, industry revenue is heavily affected by fluctuations in wood prices.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Housing market will benefit from declining mortgage rates
- Projected declines in mortgage rates are expected to stimulate residential construction, leading to growing demand for wood panels. Although mortgage rates are projected to gradually fall, they are unlikely to fall under 5.0%.
Biggest companies in the Wood Paneling Manufacturing in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Weyerhaeuser Company | 2,644.9 | 1,218.9 | 46.1 | |
Louisiana-Pacific Corporation | 2,559.5 | 372.0 | 14.5 | |
Boise Cascade Company | 1,222.9 | 333.6 | 27.3 |
To view the market share and analysis for all 15 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 Reconstituted wood products, Softwood veneer and plywood and Trusses. Reconstituted wood products is the largest segment of the Wood Paneling Manufacturing in the US.
Trends and Insights
Reconstituted wood products are known for their affordability and uniformity
- Reconstituted wood products include a variety of engineered wood products made from wood fibers, particles or veneers bound together with adhesives and subjected to heat and pressure to form solid panels or other shapes.
- More insights available in the full report
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Competitors
- Prefabricated Home Manufacturing in the US
- Cement 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
The industry includes companies that manufacture veneer, plywood, engineered wood or reconstituted wood products. The industry does not include companies that primarily engage in sawmilling or wood preservation, nor does it include companies that primarily produce dimensions stock.
What's included in this industry?
Veneer manufacturingPlywood manufacturingReconstituted wood products manufacturing (including sheets and boards)Plastic-faced plywood manufacturingOriented strand board (OSB) manufacturingMedium-density fiberboard (MDF) manufacturingLaminated structural wood members manufacturingFabricated structural wood members manufacturingParticleboard manufacturingRoof trusses manufacturingCompanies
Weyerhaeuser CompanyLouisiana-Pacific CorporationBoise Cascade CompanyPurchase this report to view all 15 major companies in this industry.
Related Terms
ORIENTED STRAND BOARD (OSB)MEDIUM-DENSITY FIBERBOARD (MDF)PARTICLEBOARDPLYWOODVENEERIndustry Code
NAICS 32121 - Wood Paneling 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
Wood prices reached record highs in 2021, boosting industry growth. Higher prices were driven by strong housing market demand and low mortgage rates as well as supply chain d...
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
Reconstituted wood product manufacturing dominates the market with a 33.1% share. Reconstituted wood benefits from its versatility and cost-effectiveness, appealing widely ac...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- 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
Wood panel manufacturers choose to locate themselves near downstream markets, making the Southeast the most popular choice to set up establishments. This region is also home ...
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
Fluctuations in raw material costs, primarily the price of wood, directly impact competitive dynamics for manufacturers. Firms that can secure stable and cost-effective wood ...
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
Weyerhaeuser Company experienced a 29% decline in wood products revenue in 2023. This decline is generally consistent with the industry trend driven by lower wood prices.
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 Weyerhaeuser Company's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Louisiana-Pacific Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Boise Cascade Company's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 12 additional companies
Detailed analysis
- Description and key data for Weyerhaeuser 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 Boise Cascade Company, and factors influencing its performance in the industry
- Description, key data and performance trends for 12 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Wood panel manufacturers are under heavy environmental and noise regulation. These include the Clear Water Act, Resource Conservation and Recovery Act, Clean Air Act, the Clu...
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
Input materials are the biggest expense. Purchases include bolts and logs, hardwood and softwood veneer and plywood, rough and dressed softwood lumber, resins and plastics, p...
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 Wood Paneling Manufacturing in the US industry in United States in 2024?
The market size of the Wood Paneling Manufacturing in the US industry in United States is $29.4bn in 2024.
How many businesses are there in the Wood Paneling Manufacturing in the US industry in 2024?
There are 14,821 businesses in the Wood Paneling Manufacturing in the US industry in United States, which has declined at a CAGR of 0.6 % between 2019 and 2024.
Has the Wood Paneling Manufacturing in the US industry in United States grown or declined over the past 5 years?
The market size of the Wood Paneling Manufacturing in the US industry in United States has been growing at a CAGR of 0.9 % between 2019 and 2024.
What is the forecast growth of the Wood Paneling Manufacturing in the US industry in United States over the next 5 years?
Over the next five years, the Wood Paneling Manufacturing in the US industry in United States is expected to grow.
What are the biggest companies in the Wood Paneling Manufacturing in the US market in United States?
The biggest companies operating in the Wood Paneling Manufacturing market in United States are Weyerhaeuser Company, Louisiana-Pacific Corporation and Boise Cascade Company
What does the Wood Paneling Manufacturing in the US in United States include?
Veneer manufacturing and Plywood manufacturing are part of the Wood Paneling Manufacturing in the US industry.
Which companies have the highest market share in the Wood Paneling Manufacturing in the US in United States?
The company holding the most market share in United States is Weyerhaeuser Company.
How competitive is the Wood Paneling Manufacturing in the US industry in United States?
The level of competition is moderate and increasing in the Wood Paneling Manufacturing in the US industry in United States.
