Engineered Wood Products – Production, Trade, Consumption and Outlook 1

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Engineered Wood Products – Production, Trade, Consumption and Outlook 1 ECE/FAO Forest Products Annual Market Review, 1999-2000______________________________________________________131 Chapter 11 Engineered Wood Products – Production, Trade, Consumption and Outlook 1 Highlights · Engineered Wood Products (EWPs) manufacture and use is expanding globally. Glued laminated timbers are being employed worldwide, while structural wood I-beams and LVL are primarily a North American phenomenon. However, LVL use is rapidly gaining popularity in Asian markets. · Two key forces driving North American demand are prevalence of wood-frame construction and the changing nature of softwood fibre supply. · North American I-beam production grew 27% in 1999 while North American LVL production grew 21%. EWPs now constitute more than 5% of North American softwood dimension lumber2 (sawnwood) supply. · EWPs in North America, Japan, and the Nordic countries are consumed primarily in structural applications in residential markets. In continental Europe, both structural and nonstructural applications drive demand in both residential and commercial markets. · EWPs demand in Europe and Japan is also growing with greatest potential in Japan as the Japanese industry increasingly adopts these products in the traditional post and beam housing sector. · Trade in EWPs is small compared with that of other wood products, but as a percentage of their production, the volume of trade is significant. North America, Japan, and Europe consume most of their own production in residential construction end uses. The largest trade flow is of glulam – primarily from North America and Europe to Japan. · The outlook for EWPs is excellent with much of the impetus coming from the global need for efficient construction techniques, growing environmental concerns, and the universal requirement for affordable shelter. 1 By: Dr. Al Schuler, Research Economist, Northeast Forest Experiment Station, USDA Forest Service, 241 Mercer Springs Road, Princeton, West Virginia, United States 24740, Telephone +1 304 431 2727, Fax +1 304 431 2772, E-mail: [email protected] and Mr. Craig Adair, Director, Market Research, APA-The Engineered Wood Association, P.O. Box 11700, Tacoma, Washington, United States 98411-0700, Telephone +1 253 565 7265, Fax +1 253 565 6600, E-mail: [email protected] 2 Softwood dimension lumber is sawnwood produced to standard sizes for construction purposes. 132 _____________________________________________________ ECE/FAO Forest Products Annual Market Review, 1999-2000 Secretariat note available, there are less data on international trade flows. This special chapter highlights an exciting growth The main problem seems to be lack of tariff classifications market for forest products. EWPs are reconstituted flakes, for I-Joists and LVL trade. The authors relied on fibres and veneers which produce products with uniform extensive experience in EWPs to analyse current and strength properties to fulfil new demands for wood future trends in EWPs. products and replace some traditional uses. The secretariat expresses its gratitude to the principal 11.1 Introduction authors, Dr. Al Schuler and Mr. Craig Adair. For the purposes of this report, we will define Dr. Schuler spent ten years as Manager of Economics engineered wood products (EWPs) as primarily those and Market Research for Norbord Industries, a major products used as substitutes for conventional softwood North American producer of OSB and other solid wood dimension lumber in markets where structural products. He is now a Research Economist with the applications predominate. In current literature, these North East Forest Experiment Station of the USDA engineered wood product materials are often designated Forest Service. Mr. Adair has twenty-nine years of as “engineered lumber products”, and include laminated experience in the forest products industry with the past veneer lumber (LVL), structural wood I-Beams, glued eleven years as Director of Market Research for The laminated timber (glulam), machine stress rated (MSR) Engineered Wood Association (APA). Information for lumber, finger jointed (FJ) lumber, and proprietary this chapter came from a variety of sources with APA products such as parallel strand lumber (PSL) providing the bulk of production and trade statistics. Mr. (Parallam™) and oriented strand lumber (OSL) Ed Elias, Director, International Marketing Division, (Timberstrand™). “Lumber” is sawnwood boards. (See APA, supplied much of the international statistics. The box of definitions and abbreviations.) The majority of the APA information was supplemented by Jaakko Poyry statistics found in this report will focus on the three EWP Consulting or data provided by Mr. David Giroux, Vice that dominate worldwide production capacity - LVL, I– President, Business Strategies, and data extracted from beams, and glulams. We should also mention that many Dr. O’Carroll’s report (Pullman Particleboard researchers include oriented strand board (OSB), medium Symposium, April 2000) entitled “LVL and Engineered density fibreboard (MDF), and particle board in the Wood Products Business in Europe”. Although EWPs category, however, these and other panels products reasonably good statistics on production by country are are covered in another chapter of the Market Review. On a total volume basis, EWPs are primarily a North American phenomenon. Graphs 11.1.1 and 11.1.2 GRAPH 11.1.1 present the regional market comparisons for glulam, LVL, Regional markets for glulam and LVL, 1999 GRAPH 11.1.2 I-beam production in North America and Europe, 1.6 1.44 1999 1.4 1.12 1.2 275 3 m 300 n o i 0.82 l 1 l i m 0.73 250 n i 0.8 s e d r t n e a 200 m m 0.44 0.6 e r a D e n i 150 0.4 l n o i 0.08 l l 0.2 i 100 M 15 0 50 LVL Glulam North America Asia Pacific Europe 0 North America Europe Sources: APA, 2000; Japan Customs Bureau, 2000 and Jaakko Pöyry, 2000. Sources: APA, 2000; and Jaakko Pöyry, 2000. Chapter 11 – Engineered Wood Products – Production, Trade, Consumption and Outlook _________________________________133 and structural wood I- beams. The glulam statistics for the Furthermore, the North American population is aging, Asia Pacific region are really only for Japan. EWPs are and this appears to be encouraging builders to switch to growing quickly in consumption in the ECE region, labour saving materials and construction techniques, especially in North America and Europe, although they many of which involve EWPs. The wood products are currently a small market compared to sawnwood and industry wants to hold onto its most important market – wood-based panels (graph 11.1.3). residential construction – and it believes that modern EWPs will help fend off non wood building materials such as steel and concrete. Additionally, EWPs should provide GRAPH 11.1.3 wood building materials a better chance at penetrating non-residential construction markets which are currently Consumption of sawnwood, wood-based panels and using primarily steel and concrete. EWPs in Europe and North America, 1998 177.7 GRAPH 11.2.1 180 Wood frame construction 160 140 120 2 97.1 1.8 3 m 100 1.6 n s t o r i 80 l a l 1.4 t i s 52.3 g M 44.7 1.2 60 n i s u 1 40 o h 4.1 n 0.8 o 1.2 i 20 l l i 0.6 0 M 0.4 Europe North America 0.2 0 Sawnwood Wood-based panels EWP Europe North America Japan Wood Steel/Concrete Note: EWP includes: Glulam, LVL and I-Beams. Sources: APA, 2000; Jaakko Pöyry, 1999; and Sources: APA 2000; Japan Customs Bureau, 2000 and Jaakko TIMBER database, 2000. Pöyry, 2000. GRAPH 11.2.2 11.2 Current market situation Regional fibre cost (sawlog stumpage), 1990-1999 11.2.1 North America. 120 There are two key forces driving demand for EWPs in North America: the prevalence of wood frame 100 construction (graph 11.2.1); and the changing nature of the softwood fibre supply (graph 11.2.2). 80 North American production has grown rapidly during the 1990s and currently constitutes 5% of North 60 (Log scale) American softwood dimension/structural lumber 3 (sawnwood) consumption. The level of housing starts and $/m 40 the fact that 90% of the homes built in North America are wood frame, dominate engineered wood product use 20 in North America. European housing, by contrast, is only 0 10% wood based and 90% steel/concrete. In Japan, 1990 1992 1994 1996 1998 housing is about 50% wood-based and 50% steel or steel and concrete. PacificNorthWest SouthernYellowPine Conversely, the performance properties and good Source: Resource Information Systems (Wood Products value of EWPs make wood-frame housing attractive. Review, 2000). 134 _____________________________________________________ ECE/FAO Forest Products Annual Market Review, 1999-2000 Glossary of Engineered Wood Products APA classifies glued engineered wood products into three general groups: 1) glued laminated timber (glulam), 2) structural composite lumber (SCL) consisting primarily of laminated veneer lumber (LVL), but also parallel strand lumber and oriented strand lumber, and 3) wood I-beams. Glued Laminated Timber (Glulam) Glulam is an engineered stress-rated product created by adhesively bonding together individual pieces of lumber having a thickness of 50 mm (2 inches) or less. It’s one of the most versatile of the engineered wood products. It can be easily shaped into forms ranging from straight beams to complex curved members and is used for a wide variety of structural applications in both residential and non-residential construction. Glulam is used typically for headers, girders, purlins, beams, arches, and in exposed applications such as bridges, marinas and transmission structures. Structural-composite lumber Laminated Veneer Lumber (LVL): LVL is the most widely used of the structural composite lumber products. It is produced by adhesively bonding thin wood veneers together in a large billet so that the grain of all veneers is parallel to the long direction. The LVL billet is then sawn to desired dimensions depending on the construction application.
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