Wood Paneling Manufacturing in the US - Industry Market Research Report

Chopped Wood: Industry Revenue Growth Will be Muted due to Low Residential Construction

Wood panel manufacturers develop wood panels and products from softwood and hardwood lumber and adhesives, such as resin. 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 through the end of 2023, enabling wood panel 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. Wood panel manufacturing revenue has been accelerating at a CAGR of 4.6% over the past five years and is expected to total $38.6 billion in 2023, when revenue will fall by an estimated 4.4%. Profit has also increased due to declining wage and purchase costs. 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. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.