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Title: Low-Cost Opportunity for Small-Scale Manufacture of Hardwood Blanks
Author: Hansen, Bruce G.; Araman, Philip A.
Source: FS Research Paper NE-559. 6 pp.
Description: We analyzed the manufacture of standard-size hardwood blanks from lumber on a relatively small scale by conventional processing. Requiring an investment of just over $200,000, the conventional mill can process 500 M bf (thousand board feet) of kiln-dried lumber annually. The study focused on the economics associated with manufacture of blanks from four species - northern red oak, black cherry, hard maple, and yellow-poplar. Assuming a tax rate of 46 percent, returns ranged from 31 percent for hard maple to 38 percent for yellow-poplar. Plots were developed relating raw material input cost to blank prices necessary to achieve specified levels of return. The blanks investment seems suited to someone wishing to enter the wood business on a small scale, to sawmill operators wishing to upgrade and expand their product offering, and to small furniture and cabinet manufacturers wanting more control of their raw material situation.
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Hansen, Bruce G.; Araman, Philip A. 1985. Low-Cost Opportunity for Small-Scale Manufacture of Hardwood Blanks. FS Research Paper NE-559. 6 pp.
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