Louisiana-Pacific - Competitors

Louisiana-Pacific Competition

Now Viewing Louisiana-Pacific's competition in: Sawmills and Plywood Mills

Recent Developments

Existing Renewable Energy Equipment Excluded from Energy Bill - An energy bill passed by the House in September 2008 is bad for saw and plywood mills because existing renewable power-generating equipment at forest products facilities doesn't qualify for renewable energy credits in the same way as new equipment, according to the American Forest & Paper Association (AF&PA). Many mills use waste generated during the lumber- and plywood-making process to power equipment that generates electricity used by the mills. The Comprehensive American Energy Security and Consumer Protection Act would create economic distortion by providing incentives for new power generation only, according to AF&PA.

Lumber Production Slowing in Western US - Lumber production at western US sawmills fell to the lowest annual volume in a decade in 2007, according to the Western Wood Products Association (WWPA). Lumber production at mills in 12 western states declined 9.3 percent year-over-year in 2007, which WWPA blames on declining US residential construction.

Analysis Method Shows Wood is Environmentally Friendly - Using a technique called environmental life cycle assessment may improve wood's image as an environmentally friendly building material, according to Responsible Materials Program of Dovetail Partners (RMPDP). Life cycle assessment is used to analyze the environmental and social impact of producing and using a material such as wood, concrete, or steel. Saw and plywood mills are likely to benefit if the use of wood increases in green building projects. RMPDP says that a number of materials listed as environmentally preferable by green building organizations have much greater environmental impact than nonfavored alternatives such as wood.

Competitive Landscape

Demand is closely tied to the level of home construction. The profitability of individual mills depends on efficient operations, because the products are commodities sold based on price. Large companies have big economies of scale in sawmill operations. Large mills can have annual revenue per employee of close to $300,000, while small mills may achieve only half as much. Local mills can often compete successfully with those of large companies because they can efficiently serve a local market. Sawmills can operate with only a modest investment of capital, but plywood mills require expensive equipment and therefore are usually plants with high annual volume.

Full Industry Overview For Sawmills and Plywood Mills

Sawmills and Plywood Mills Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US sawmills and veneer, plywood, particleboard and engineered wood products is forecast to increase at an annual compounded rate of 5.2 percent between 2008 and 2013.

Sawmill Production Growth Recovers Unevenly

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.