ALMANAC: COMPONENTS & INDUSTRIAL PRODUCTS
Source: FDMC/CMA Benchmark Survey, 2018. Total respondents: 190. Totals more than
100% due to multiple responses.
Tied to other wood products industries, the wood components segment also looks to be on a generally upward growth
trend. Included are products used in the cabinetry, furniture,
home organization and architectural industries.
A snapshot of the U.S. wood moulding and trim market
shows demand projected to grow 3.7% annually to $5.5 billion in
2022, driven by a strong rise in commercial construction activity
and residential remodeling, with interior moulding continuing
to account for the majority of the demand, according to The
Freedonia Group study, Molding & Trim in the U.S., 7th edition.
Although solid wood remains the dominant material choice,
engineered wood and plastics are growing in usage.
On the industrial side, wood is also the dominant material
for pallets, with U.S. demand for wood pallets projected to
reach 1. 4 billion units in 2019, according to Freedonia’s Pallets
In addition to its strength properties, using wood for these
products is also good for the environment, a fact highlighted
by a Virginia Tech/USDA study that finds 95% of wooden pallets are recycled and kept out of landfills.
Wood also accounts for the largest share of U.S. residential
fencing demand, according to another Freedonia study,
Fencing in the U.S. Residential fencing – half of all fencing demand
– is forecast to rise 5.3% annually to $4.8 billion in 2022.
Drawer boxes: 50.5%
Face frames: 6.8%
Cabinet boxes: 5.8%
Carvings, onlays, etc.: 50.0%
Countertops - composite: 38.4%
Countertops - natural stone: 63.2%
Countertops - laminate: 21.6%
Solid surface: 36.8%
CNC work: 13.2%
Don’t outsource: 6.3%
What products & services do you outsource?
Canada’s millwork trade balance (NAICS 321919)
Exports Imports TradeBalance
2013 $179.1 M $439.5 M -$260.4 M
2014 $215.8 M $449.8 M -$233.9 M
2015 $279.6 M $450.7 M -$174.1 M
2016 $322.1 M $434.8 M -$112.6 M
2017 $443.7 M $407.4 M $36.3 M
Canada’s trade balance of millwork saw positive gains last
year. In 2017, the U.S. was the top trading partner, taking
in $419.1 million of Canada’s exports, with U.S. exporting
back into Canada $180.1 million. At $120.1 million, China
is second in millwork imported into Canada.
Source: Statistics Canada
New wood crossties outlook for 2019
Region Hardwood Softwood Total Track
Eastern U.S. 5,300,000 0 49,286
Western U.S. 6,970,000 400,000 98,723
Canada 3,600,000 0 32,500
Source: Railway Tie Association/Crossties Sept-Oct 2018: Crosstie increases projected.
Market Data Sources: Wood Component Manufacturers Assn., Wood Products Manufacturers Assn., FDMC, Cabinet Makers Assn., Furniture Market Insights, Statistics Canada,
Railway Tie Assn., Virginia Tech/USDA (Laszlo Horvath, PhD, Brad Gething, PhD, and
Phil Araman), Transparency Market Research, National Wooden Pallet & Container Assn.,
U.S. Census Bureau, U.S. DOC-ITA, USIPA (U.S. Industrial Pellet Assn.) Category: Wood
Components includes: cabinet doors & drawers, furniture parts, mouldings & trim, turnings,
dimension stock, stair parts & specialty items, industrial products. Industrial Products
includes: pallets, reels, household utensils, crates, plus crossties and pellets.
Canada exported $144.5 million pallets and containers in
2017, compared to imports of $120.7 million, according to
Transparency Market Research projects pellets to reach market sales of $20 billion by 2023. In the U.S., pellets represent
0.08% of the total forest inventory, says USIPA.