Masonite Canada - Competitors

Masonite Canada Competition

Now Viewing Masonite Canada's competition in: Sawmills and Plywood Mills

Recent Developments

US Imports Declining - US imports of sawmill and wood products fell 27.2 percent in the first four months of 2008 compared to the same period in 2007. Many experts cite weakness in the US housing industry and the falling value of the US dollar as key causes. Imports from Canada, the source of 79.4 percent of the timber and logs imported by the US in 2007, fell 33 percent during the first four months of 2008.

US Sawmill Production Decline Continues - US sawmill production fell 13.5 percent in February 2008 compared to the same period in 2007. Experts cite weakness in the US housing market as a key cause. The US housing market may not recover until 2010, according to homebuilder DR Horton.

Remodeling Activity Stable - US remodeling activity, a driver of demand for sawmill and plywood products, was unchanged during first quarter 2008 compared to the prior quarter, according to the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI). Minor additions and alterations decreased, while maintenance and repair increased. NAHB expects remodeling activity to decline slightly in 2008 before beginning to recover in 2009.

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 4.5 percent between 2007 and 2012.

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.