Impact of construction and remodeling markets on the U.S. secondary hardwood products industry
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In: Buehlmann, Urs, ed. Proceedings of the 3rd international scientific conference on hardwood processing (ISCHP32011) I: Peer reviewed contributions; 2011 October 16-18; Blacksburg, VA. 213-221.
The housing correction that started in 2007 continues to run its course. Excessive inventory levels, limited credit availability, and record foreclosure rates continue to have an impact on U.S. housing markets. With inventories high and demand for new construction low, the U.S. hardwood industry's largest markets for appearance-grade products remain under pressure, negatively affecting demand and profitability. A survey conducted in early 2011 (for 2010) with subscribers to Wood & Wood Products, a U.S. trade magazine with wide circulation, provides insights into the current state of the secondary wood products industry. Results are compared to a similar study in 2010 (for 2009) to see what has changed. Overall, companies tended to fare better in terms of sales volume in 2010 over 2009, but many still rated most construction markets as modest at best for 2012. Remodeling markets were viewed more positively. Many respondents reported taking actions related to increasing sales revenue, whether through new marketing initiatives or product and service improvements, as a means to adapt to continued slow markets. Fewer companies reported cost reductions as a primary strategy. As each company realigns its efforts and adapts to the current situation, this study offers insights into the ways companies are coping.
Bumgardner, Matt; Buehlmann, Urs; Schuler, Al; Koenig, Karen. 2011. Impact of construction and remodeling markets on the US secondary hardwood products industry. In: Buehlmann, Urs, ed. Proceedings of the 3rd international scientific conference on hardwood processing (ISCHP32011) I: Peer reviewed contributions; 2011 October 16-18; Blacksburg, VA. 213-221.