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Lumber Wholesalers
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US lumber wholesalers industry includes about 6,000 companies with combined annual revenue of about $100 billion. Major companies include Forest City Trading Group, HD Supply (formerly a division of Home Depot), Lumber Products, and Tumac Lumber. The lumber wholesalers industry is fragmented: the 50 largest companies generate about 40 percent of revenue.
COMPETITIVE LANDSCAPE
Demand for lumber and plywood is strongly affected by the level of residential real estate construction. Profitability depends on efficient operations. Large wholesalers are more likely to serve large customers, with operations in multiple markets. The industry is capital-intensive: average annual revenue per employee is more than $950,000.
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. Only the largest companies have more than 100 employees; the average wholesaler has fewer than 20. National and regional wholesalers usually have several offices that serve local customers. Most companies operate locally, serving local customers and buying from local mills.
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....
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