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North American structural panel production off 3.4% in 2001
¡¾Jan.29, 2002¡¿

North American structural panel production off 3.4% in 2001
APA-The Engineered Wood Association

TACOMA, Wash., Jan. 24, 2002 (press release) -- North American structural wood panel production totaled 38.97 billion square feet (3/8-inch basis) in 2001, down 3.4 percent from the record 40.33 billion feet produced in 2000, according to a year-end tally just completed by APA¡ªThe Engineered Wood Association.
Oriented strand board production actually increased for the year, up 880 million square feet to 21.53 billion. Plywood production, however, declined 11 percent to 17.44 billion feet. OSB as a percentage of total structural panel production increased to 55 percent, up from 51 percent in 2000.

The drop in plywood production reflected continued weak demand in the industrial sector. Production of U.S. sanded plywood, which depends largely on industrial market demand, dropped to 2.26 billion feet, the lowest volume in a decade. U.S. rough (sheathing, siding and touched-sanded) plywood also dropped off 13.8 percent, to 12.86 billion feet. Eight plywood mills in five states closed permanently in 2001; another closed indefinitely; and yet another has announced it will close indefinitely by March. Since January of 2000, 16 plywood and one structural composite facilities with a combined production capacity of just over 2 billion square feet have closed. North American OSB production capacity over the past two years, conversely, has increased by 2.3 billion feet.

Total panel production in the U.S. declined 1.73 billion feet to 27.65 billion, while production in Canada rose a modest 373 million feet to 11.32 billion.

Declining panel exports and rising imports continued a trend that has been under way since the late 1990s. Excluding shipments between the two countries, U.S. and Canadian exports fell off 21 percent, to 859 million square feet in 2001, based on projections using data through October. Declining demand for U.S. plywood in European Union countries has been especially steep, dropping from more than one billion feet in 1997 to just 29 million feet last year. The continuing high exchange value of the dollar, rising European panel production capacity, and low cost imports from other countries have all contributed to the decline.

Again excluding U.S.-Canadian trans-border shipments, U.S. softwood plywood imports rose more than 100 million feet to 231 million, while OSB imports doubled to 67 million. Most of the imported plywood came from Brazil (107 million feet) and Chile (67 million feet). Canadian plywood imports rose from just 4 million to 51 million square feet.

Among other engineered wood products, U.S. and Canadian glulam production declined 4.5 percent to 359.8 million board feet. Wood I-joist and laminated veneer lumber output, however, rose substantially. I-joist production climbed 7 percent to a record 925.6 million linear feet, while LVL production increased 8.1 percent to 61.1 million cubic feet, also a record. The increase in production of both products at rates greater than the increase in housing starts indicates the products continue to gain market share.

Complete 2001 production data are contained in APA¡¯s fourth quarter 2001 statistics report. The quarterly reports are available to non-APA members for $90 per year. Contact Cheryl Loftus, 253-620-7424. APA¡¯s next annual five-year forecast will be released around April 1.