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Wood Paneling Manufacturing in the US - Market Research Report (2014-2029)

Vlad Khaustovich Vlad Khaustovich New York, United States Last Updated: August 2024 NAICS 32121

Revenue

$29.4bn

2024

$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.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

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
Wood Paneling Manufacturing in the US
Revenue (2014-2029)
IBISWorld Logo 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

Wood Paneling Manufacturing in the US
Products & Services
IBISWorld Logo 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

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 manufacturing

Companies

Weyerhaeuser CompanyLouisiana-Pacific CorporationBoise Cascade Company

Purchase this report to view all 15 major companies in this industry.

Related Terms

ORIENTED STRAND BOARD (OSB)MEDIUM-DENSITY FIBERBOARD (MDF)PARTICLEBOARDPLYWOODVENEER

Industry Code

NAICS 2017

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)

Top Questions Answered

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.

Related Industries

Widen your competitive advantage with related industries

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

View all industries in United States

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  • Industry federations or regulators
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