Wood components & industrial products: trends & statistics

The market outlook continues to be positive for wood components and industrial products, which are a vital part of the cabinet, furniture, architectural, store fixture and other wood products industries.

A snapshot of the $8.6 billion U.S. wood moulding and millwork segment projects 4.4% annual growth through 2022. According to The Freedonia Group, rising new house completions, particularly in the South and West, residential remodeling, and increased commercial construction are spurring growth. Although engineered wood and plastic are expected to record above-average sales gains through 2022, wood, which accounts for over half the volume, is projected to increase 3.7% annually, reaching $5.5 billion in 2022.

With respect to industrial products, wood continues to be the dominant material for pallet usage, with U.S. demand projected to reach 1.4 billion units in 2019, according to a survey by Freedonia. Wood also accounts for the largest share of U.S. residential fencing demand, according to another Freedonia study. Demand for residential fencing – half of all fencing demand – is forecast to rise 5.3% annually to $4.8 billion in 2022.

Click to enlarge the infographic, plus find more market data in the December 2019 FDMC Wood Industry Almanac.

Source: 2019 Wood Components Benchmark Study, conducted by Wood Component Manufacturers Assn., Wood Products Manufacturers Assn. and Woodworking Network.

Quick Stats

Demand for new wood crossties is projected to reach 23.1 million, an increase of 2.0% over 2018. The Railway Tie Assn,/Crossties also forecasts growth for 2020, to 23.4 million ties.

Canada exported $140.7 million (CAD) pallets and containers in 2018, compared to imports of $125.6 million, according to Statistics Canada. In the same period, the United States exported $393.8 million (USD) and imported $515.6 million, according to the Foreign Trade Division, U.S. Census Bureau. Wood continues to be the dominant material, although plastic is growing swiftly.

A survey by Cabinet Makers Assn. and FDMC of more than 200 mostly small- to mid-size custom woodworkers found the top five products being outsourced are: turnings, cabinet doors, drawer boxes, carvings/onlays/decorative parts, and countertops.

At $6.4 billion, hardwood millwork accounted for 4.1% of the U.S. GDP in 2016. Truss manufacturing ($6.2 billion) accounted for 3.9%, according to the Hardwood Federation, and sourced by the U.S. Economic Census, Annual Survey of Manufacturers, IMPLAN and Agribusiness Consulting.

A Virginia Tech/USDA study finds 95% of wooden pallets are being recycled. In 2016, 45% of the pallets were hardwood and 55% softwood.

According to Furniture Market Insights, the global pallet boxes market is projected to grow at a CAGR of 4.8% through 2028, reaching $3.0 billion.

Demand for fencing in the United States is forecast to increase 2.6% CAGR 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.

The pellets market is projected to reach sales of $20 billion by 2023, according to Transparency Market Research.

Market Data Sources: Wood Component Manufacturers Assn. (WCMA), Wood Products Manufacturers Assn. (WPMA), The Freedonia Group, FDMC, Cabinet Makers Assn. (CMA), Statistics Canada, Railway Tie Assn. (RTA), Crossties magazine, Virginia Tech/USDA (Laszlo Horvath, Ph.D., Brad Gething, Ph.D., and Phil Araman), Transparency Market Research, National Wooden Pallet & Container Assn., U.S. Census Bureau, U.S. DOC-International Trade Administration (ITA), Future Market Insights, Hardwood Federation, 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.


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About the author
Karen Koenig | Editor

Karen M. Koenig has more than 30 years of experience in the woodworking industry, including visits to wood products manufacturing facilities throughout North America, Europe and Asia. As editor of special publications under the Woodworking Network brand, including the Red Book Best Practices resource guide and website, Karen’s responsibilities include writing, editing and coordinating of editorial content. She is also a contributor to FDMC and other Woodworking Network online and print media owned by CCI Media. She can be reached at [email protected]