Characteristics of U.S. hardwood wood component manufacturers

Document Type

Article

Publication Date

5-1-1996

Abstract

A number of states and regions in the United States are actively pursuing rural economic development initiatives to add value to their hardwood resources. One common challenge in these efforts is to attract new industry or to expand an existing hardwood manufacturing industry base. Beyond the production of hardwood lumber, a logical next step in the value-added chain is the production of wood components. This research, based on a comprehensive analysis of the U.S. wood components industry, had two objectives: 1) to understand the wood components industry and; 2) to provide information to people who are interested in using wood components manufacturing for rural development purposes. Respondent companies on average purchased 27 percent of their raw materials needs (by volume) from out-of-state suppliers, representing a potential opportunity for adding value to the hardwood resource. The most cited reasons for out-of-state raw material purchases were product availability, better prices, and better quality. The study also examined factors that foster or hinder wood components industry development. Highest rated factors that contribute to wood components company success were the ability to supply quality products to customers, development of long-term customer relationships, offering a high level of customer service,and company reputation. The foremost impediments to company success were acquiring quality raw material, developing a consistent raw material supply, and volatile pricing. With regard to location decision factors that influence corporate expansion or location, wood components manufacturers identified productivity of labor, labor costs, taxes, and a skilled labor supply as the most important factors.

Publication Source (Journal or Book title)

Forest Products Journal

First Page

37

Last Page

43

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