Lumber Wholesalers
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Industry Overview
About 6,000 lumber wholesalers operate in the US, with combined annual revenue of $75 billion. Most are privately held with annual revenue of less than $10 million. Despite some large regional companies, the industry is local and fragmented; the 50 largest companies hold about 40 percent of the market.
Competitive Landscape
Demand for lumber and plywood is strongly affected by the level of residential real estate construction. Only the largest companies have more than 100 employees, while the typical wholesaler has only ten. National and regional wholesalers usually have several offices that serve local customers. Most companies operate locally, serving local customers and buying from local mills. Large wholesalers are more likely to serve large customers, with operations in multiple markets.
Products, Operations & Technology
Lumber wholesalers buy truck or railcar loads of lumber and other wood products from sawmills and plywood plants, and resell them to retail lumberyards, home improvement centers, large homebuilders, industrial users, and building products distributors. Although some wholesalers have lumberyard operations, wholesaling is mainly a trading operation. Some wholesalers specialize in lumber, others in plywood panels, milled wood, and various engineered products like veneers; I-joists; laminated lumber (glulam); and oriented strandboard (OSB). Larger companies usually handle both. Plywood, milled wood, and engineered products now account for more than half of industry revenue.