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Title: Small enterprises as important hardwood lumber consumers: Evidence from the current housing downturn

Author: Buehlmann, Urs; Bumgardner, Matthew; Schuler, Al; Crissey, Jeff.;

Date: 2011

Source: In: Fei, Songlin; Lhotka, John M.; Stringer, Jeffrey W.; Gottschalk, Kurt W.; Miller, Gary W., eds. Proceedings, 17th central hardwood forest conference; 2010 April 5-7; Lexington, KY; Gen. Tech. Rep. NRS-P-78. Newtown Square, PA: U.S. Department of Agriculture, Forest Service, Northern Research Station: 617-622.

Publication Series: General Technical Report - Proceedings

   Note: This article is part of a larger document. View the larger document

Description: Housing fixtures (such as cabinets, flooring, moldings, and stairways) have become a major market for secondary wood products manufacturers in the United States and a major user of U.S. hardwood lumber. Thus, downturns in housing markets, with associated declines in the demand and price for fixtures, can pose significant challenges to the profitability of these manufacturers and have implications through the supply chain down to raw material suppliers (e.g., hardwood lumber suppliers). The current downturn in the U.S. housing construction industry segment, which began in 2006, provided an opportunity to investigate the attributes associated with successful secondary wood products companies. In particular, it was thought that smaller firms and those producing customized (semi-customized and fully made-to-order) products would be the most likely to have realized increased sales volume during the period in question. It was found that small firms do indeed seem to do better during turbulent times, due in part to the production of fully made-to-order products. Implications for hardwood lumber distribution are discussed.

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Citation:


Buehlmann, Urs; Bumgardner, Matthew; Schuler, Al; Crissey, Jeff. 2011. Small enterprises as important hardwood lumber consumers: Evidence from the current housing downturn. In: Fei, Songlin; Lhotka, John M.; Stringer, Jeffrey W.; Gottschalk, Kurt W.; Miller, Gary W., eds. Proceedings, 17th central hardwood forest conference; 2010 April 5-7; Lexington, KY; Gen. Tech. Rep. NRS-P-78. Newtown Square, PA: U.S. Department of Agriculture, Forest Service, Northern Research Station: 617-622.

 


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