Engineered Lumber Industry Sees A Positive Boost

Like much of the industry, engineered wood producers are still navigating a fickle recovery in which builders are challenged by supply constraints, tight lending, and hard-to-come-by lots. Though the market is emerging from the recession, it’s still on the slow side.

“The demand is there for 1.5 million housing units. We’re not meeting that,” says Joe Elling, director of market research for APA–The Engineered Wood Association. Production is up on a year-ago basis, “but starts could be stronger if some of these supply-side constraints were not as binding,” Elling says. “I anticipate a modest improvement in the second half of the year, but it’s still going to be agonizingly slow going forward.”

For engineered lumber manufacturers and the dealers who sell their products, the slow recovery presents both challenges and opportunities. Along with the obvious—a slower return to at-peak sales—the ongoing labor shortages have created an even stronger need for product education. At the same time, those labor constraints provide even more motivation toward using engineered products that boost efficiencies and cut back on waste.

Overall, the industry has seen a positive boost in public opinion toward wood products, be they engineered or otherwise, as high-profile projects showcase their capabilities, beauty, and warmth.

“One of the biggest things in the forest products industry today that affects EWP the most is the general feeling in the world that wood is good,” says Mike McCollum, director of engineered wood business at Roseburg. “Wood is now the first choice in everybody’s eyes. Its sustainability, its efficiencies, its workability, its natural warmth, along with the fact that it is easy to design with and easy to build with…everyone has been awakened to this idea that wood is good. Then, when you take it to the next step, everything that engineered wood brings to the construction market is highlighted even more.”

From LBM Journal: https://www.lbmjournal.com/in-depth-engineered-lumber-2/

APA Releases 2016 Structural Panel & Engineered Wood Yearbook

The 2016 Structural Panel & Engineered Wood Yearbook has been released by APA – The Engineered Wood Association. The yearbook includes an analysis of the U.S., Canadian, and global economies, focusing on factors that impact demand for engineered wood products across several market segments as a basis for forecasting expected production of engineered wood products over the next five years. Besides the analysis and forecast, the yearbook also includes historical data on engineered wood production. Topics examined in the yearbook include:

• U.S., Canada, and World economies
• Residential construction in the U.S. and Canada, new and repair/remodel
• Nonresidential and industrial markets
• North American imports and exports
• Outlook and production statistics for structural panels (OSB and plywood), including historical data
• Engineered wood product demand and production (glulam, I-joists, and LVL)

Driven by healthy employment gains over the last three years, annual household growth in the U.S. is back to the 1.2 million level, with demand for new housing units also back to the 1.5–1.6 million unit level. Buoyed by low interest rates, which are expected to remain below 4 percent for most of 2016, construction of new single-family homes in the first quarter of 2016 was up almost 5 percent from the pace of the fourth quarter of 2015, the highest quarterly starts rate since the fourth quarter of 2007. While demand is high in the U.S., the primary concern for the rest of 2016 and for the next several years is the ability of the supply-side forces to respond to this improvement. Home builders report that factors including a lack of developed lots and the shortage of skilled construction labor have combined to constrain their ability to respond to the increased demand for housing. Eventually these constraints will lessen; housing starts are projected to return to approximately 1.5 million units by decade’s end, with a concurrent growth in engineered wood products output ranging from 19–28 percent during this period.

From Woodworking Network: https://www.woodworkingnetwork.com/news/almanac-market-data/apa-releases-2016-structural-panel-engineered-wood-yearbook?ss=news,news,woodworking_industry_news,news,almanac_market_data,news

Structural Panel Numbers Go Up

From: Panel World Staff

While housing starts in the U.S. ran at a seasonally adjusted annual rate of 1.17 million units in the second quarter, and Canadian housing starts ran at 198,000 units, North American structural panel production and apparent consumption rose 6% and 6.6%, respectively, in the second quarter compared to the first quarter. Relative to the second quarter of 2015, North American structural panel production was up 6.5%, and consumption increased 8.1%, according to data reported by APA—The Engineered Wood Assn.

Compared to the first quarter of 2016, North American glulam production rose 4.7% in the second quarter. I-joist production increased 4.1% and LVL output rose 3.9%. On a year ago quarter basis, glulam production was up 6.7%, while I-joist and LVL production increased 4.5% and 9.4%, respectively.

OSB production in North America increased 6.5% in the second quarter versus the first quarter, and was up 7.8% from the second quarter of 2015. First half production totaled 10.775 billion SF, up 7.5% from the first half of 2015.

North American plywood production was up 4.9% in the second quarter versus the first quarter, and was up 3.9% from the
second quarter of 2015. Plywood production in the first half of 2016 was 1.2% greater than the first half of 2015. Led by a 7.4% increase in the South, U.S. plywood production jumped 5% in the second quarter versus the first quarter, and was up 4.6% from the second quarter of 2015. Canadian production increased 4.9% in the second quarter, and was up 0.6% from the second quarter of 2015.

Read more on this in the July 2016 issue of Panel World

EPA Issues Wood Products Formaldehyde Rule, Guided By CARB

The Environmental Protection Agency rolled out a formaldehyde emission standard, working with the California Air Resources Board (CARB) in setting the rules that are mandated by Congress.

The EPA moved to reduce exposure to formaldehyde vapors from laminate panel and engineered wood products produced domestically or imported into the United States. The agency worked with the California Air Resources Board to make its final national rule consistent with California requirements for composite wood products.

One year after the rule is published, composite wood products that are sold, supplied, offered for sale, manufactured, or imported in the United States will need to be labeled as TSCA Title VI compliant. These products include: hardwood plywood, medium-density fiberboard, particleboard as well as household and other finished goods containing these products.

The action was triggered in large part by discovering that Lumber Liquidators’ flooring supply from China has been labeled CARB compliant though it was not. Lumber Liquidators has since settled with CARB and the Consumer Products Safety Commission over its liability for the matter. The new rule requires other sellers of laminate panel to meet the CARB standards for formaldehyde exposure.

EPA says the new rule will level the playing field for domestic laminate flooring manufacturers who have a high rate of compliance with the California standard and will ensure that imported products not subject to California’s requirements will meet the new standard and thus, not contain dangerous formaldehyde vapors.”

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/epa-issues-final-formaldehyde-exposure-rule-guided-carb

Eastern Engineered Wood Products Expands Nationwide

Eastern Engineered Wood Products, Bethlehem, Pa., has formed a new business unit, eWood-LINK, focused on turning the Northeastern wholesaler into a national distributor.

eWood-LINK will sell EEWP’s StructurePRO and other national brands of engineered wood and related products to pro dealers, component manufacturers, and wholesalers throughout the U.S.

Brian Pershyn, 44-year industry veteran and longtime outside sales rep with EEWP, leads the new sales initiative.

“We think this is an important time to expand our footprint,” states Todd Lindsey, president of EEWP. “We are excited about the opportunity to introduce our brands and our unique value proposition to customers in new markets.”

Eastern Engineered Wood Products incorporated in Pennsylvania in 1998. The company designs and distributes structural floor and roof systems to the professional contractor trade through a network of retail lumber yards and truss manufacturers. The company’s services include technical design and CAD services, cutting product to size for application on individual projects, and just-in-time delivery.

From Building-Products.com: https://www.building-products.com/June-2016/Eastern-Engineered-Wood-Products-Expands-Nationwide/