Good year for hardwood dimension

By Steven V. Lawser Executive Director National Dimension Manufacturers Association

A LTHOUGH dimension ship- ta ments are slowing down along with the overall economy, we expect that l99l will be a reasonably good year. The demand for furniture, cabinetry, flooring and millwork should remain fairly steady due to continued strength in the repair and renovation of both residential and commercial properties.

Supply will keep up with demand as dimension manufacturers continue to make the necessary capital investments to expand operations and improve productivity. More lumber producers are expanding into dimension manufacturing as a way to diversify and add more value to their products.

The market for machined wood products such as architectural millwork, interior trim and moulding, stair case parts and fireplace mantels will increase as the home improvement market continues to grow.

More than 50 million homes over 25 years old are good candidates for remodeling work or building additions.

Kitchen and bathroom renovations are the most common remodeling jobs. This is important to dimension manufacturing because the kitchen and bath cabinet industry represents a major market for wood components.

The use of hardwoods in architectural millwork is growing significantly along with the remodeling industry. The U.S. Commerce Department estimates that hardwood materials are used in l0-150/o of all millwork products.

According to the latest NDMA market survey, the furniture industry is the largest customer base for wood dimension, accounting for approximately half of all hardwood dimension component purchases. Household furniture, with sales projected to increase 4.60/o in 1991, will remain a strong market for compo- nents as will business and institutional furniture where sales are projected to increase 70lo to around $9 billion.

The export market for U.S. hardwood dimension and flooring products is projected to increase significantly in the next several years. Exports have more than doubled during the past two years and are expected to reach $120 million this year, a 140lo increase.

The general outlook for furniture, cabinets and related decorative wood products is positive. Shipments of hardwood dimension and flooring are expected to grow at an average rate of 3-50/o annually over the next five years.

Story at a Glane

Hardwood demand fairly steady with supply keeping up... furniture rcmains a strong market... exports will rise signiftcantly shipments should grow 3olo. 5% in the next 5 years.