ALMANAC: COMPONENTS & INDUSTRIAL PRODUCTS
Market Data Sources: The Freedonia Group, Wood Component Manufacturers Assn.,
Wood Products Manufacturers Assn., Transparency Market Research, Canada Industry
Statistics – Government of Canada, StatCan, Statista, U.S. Census Bureau, National
Wooden Pallet Assn., U.S. DOC- International Trade Administration, Cabinet Makers
Assn., FDMC Category: Wood Components: cabinet doors & drawers, furniture parts,
mouldings & trim, turnings, dimension stock, stair parts, specialty items, building products.
Industrial Products: pallets, reels, household utensils, crates, crossties, fencing and pellets.
The wood components market is inherently tied to the other
wood secondary products industries and as such, it also looks to
be on a generally upward growth trend. This market encompasses a variety of products, including those used in the cabinetry,
furniture, home storage, architectural and millwork industries.
A close-up look at the moulding and trim segment shows
demand projected to grow 5.7% annually to $5.8 billion in 2020,
due to positive movement in new housing construction and
remodeling. The Freedonia Group study, Molding & Trim in the
U.S., also notes that going forward, strong gains in office and
commercial construction spending and a recovery in institutional
building construction activity will boost demand for wood moulding and trim in the nonresidential market.
On the industrial side, wood continues to be the dominant
material for pallet usage, estimated at 84% of the total stock for
2019 and 93% of sales in unit terms, according to Freedonia’s
Pallets study. However, the research group cautions, because wood
already accounts for such a large share of the total pallet market,
opportunities for additional growth may be limited.
With regards to wood pellets, despite recent news of some
plant closures, overall the market is projected to grow to $20
billion by 2023, expanding at a CAGR of 14.1% between 2015 to
2023. Europe and North America will provide the most lucrative
growth avenues, according to Transparency Market Research.
Source: The Freedonia Group: Pallets survey
Source: : FDMC/CMA Benchmark survey, 2017. Total respondents: 267. Totals more
than 100% due to multiple responses.
An estimated breakdown of the components and dimension stock market
has: cabinetry components 28%, building products 26%, furniture parts
23%, specialty products, 12%, industrial products 10% and other items 1%.
This information derived from a previous survey by the Wood Component
Canadian exports of millwork (NAICS 32191) in 2016 were $663.1 million.
Imports were $632., 7 million, according to Statistics Canada & the U.S.
Census Bureau. NAICS 32191 includes windows and doors. The U.S. was
the top trading partner, taking in $638.2 million of Canada’s exports, with
the U.S. exporting $342.7 million of product back into Canada. At $161.6
million, China is a close second for millwork sold into Canada.
Wood continues to be the dominant material for moulding and trim, but
low maintenance requirements of plastic have it rising fast in market share,
growing 6.3% per year, according to Molding & Trim in the U.S., a study
by The Freedonia Group.
Canada exported $131.9 million pallets and containers in 2016, compared
to imports of $128.9 million, according to StatCan.
The top 10 export markets for U.S. wood pellets are: United Kingdom, Belgium,
France, Denmark, Netherlands, Canada, Sweden, Japan, Germany and Italy.
Source: ITA’s 2016 Top Markets Report - Renewable Fuels.
Demand for fencing in the U.S. is forecast to increase 2.6% per year
through 2020 to 880 million linear feet, valued at $7.5 billion. Growth
will be driven by rising building construction expenditures, according to
Freedonia’s Fencing study.
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U.S. pallet demand (million units)
Item 2014 2019 Annual
Pallet demand 1287.0 1400.0 1. 7
Wood 1203.0 1301.0 1. 6
34. 7 43. 4 4. 6
8. 2 9. 6 3. 2
41. 1 46.0 2. 3