Medium Density Fiberboard Procurement Category Market Research

Los Angeles - Medium-density fiberboard has a buyer power score of 2.9 out of 5, reflecting a moderate level of buyer negotiating power. Buyer power has declined over the three years to 2013 due primarily to rising market share concentration. Medium-density fiberboard price movements depend largely on residential and nonresidential expenditure levels as well as private spending on home improvements. According to estimates from market research firm IBISWorld, these drivers have exhibited strong growth over the past three years, boosting medium-density fiberboard prices and lowering buyer negotiating power.

In addition, the price increases for inputs such as lumber and resin also led to market price growth, consequently limiting pricing flexibility for medium-density fiberboard suppliers, who struggled to maintain profitability. As a result, buyers have minimal opportunities for arranging favorable deals and negotiating lower prices. Moderate market share concentration and product specialization have also created a negative environment for buyers. Large, vertically integrated operators have significant market power, according to IBISWorld, while moderate product specialization reduces the ability of buyers to locate suppliers capable of satisfying their specific product requirements. Current major suppliers include Georgia-Pacific Corporation, Weyerhaseuser Company, Boise Cascade Company and West Fraser Timber Co.

Factors keeping buyer power at a moderate level include a high availability of substitute goods, which ensures that buyers are not forced to accept major concessions in their contracts because of their ability to switch to other suppliers. Second, low switching costs limit suppliers' ability to charge higher prices. Last, despite high demand driver volatility, volatility in prices for medium-density fiberboard products has been low. This factor has increased buyer power and made inventory planning and budget forecasts easier. If budgets allow, buyers should obtain contractual agreements for bulk purchases. And long-term contracts can lower the negative effects of higher future prices by locking in current lower prices. In addition, suppliers will be more willing to include favorable terms because of the assured income they receive with contracts. For more information, visit IBISWorld’s Medium Density Fiberboard procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of medium-density fiberboard (MDF). MDF is an engineered wood product that does not have knots or grain patterns, making it easy to work with in many building applications. Due to its strength and comparatively low cost, furniture manufacturers use MDF as a substitute for hard wood products. Both manufacturers and wholesalers supply MDF.

Executive Summary

Pricing Environment

Price Fundamentals

Benchmark Price

Pricing Model

Price Drivers

Recent Price Trend

Price Forecast

Product Characteristics

Product Life Cycle

Total Cost of Ownership

Product Specialization

Substitute Goods


Quality Control

Supply Chain & Vendors

Supply Chain Dynamics

Supply Chain Risk


Competitive Environment

Market Share Concentration

Market Profitability

Switching Costs

Purchasing Process

Buying Basics

Buying Lead Time

Selection Process

Key RFP Elements

Negotiation Questions

Buyer Power Factors

Key Statistics

About IBISWorld Inc.

IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-37721-800-330-3772.

Source: IBISWorld Inc.


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