There is very little information publicly available on the wood components industry. However, as value added companies consider outsourcing wood components rather than purchasing lumber and panels it is important that the wood products industry understand this trend, how it will affect the attributes demanded in their products, and the opportunities available to them for further processing.
The primary objective of this study was to provide an overview of the value added components industry in North America. This objective was divided into four sub-objectives or tasks:
1. Technical overview of the component industry.
2. Market overview on value added components and lesser-used species (literature review).
3. Survey of component manufacturers inputs, products, and markets.
4. Survey of component using industries with respect to inputs, products, and markets.
The objective was met by sponsoring research and literature reviews under each of the sub-objectives. Stand-alone reports for each sub-objective can be found in the appendices of this report.
The keys to wood components manufacturing are efficient processing and fibre utilization. These are historical strengths of the Canadian wood products industries. Component manufacturing provides the opportunity for resource-based companies to move into the arena of value-added production without having to invest heavily in the design, distribution, and marketing capacities required if final products are produced.
The most common type of component purchased by secondary manufacturers in both the US and Canadian surveys were cut-to-size blanks. This type of product is very appropriate for companies close to the resource. Lower grades of lumber can be processed into blanks to upgrade their value. By performing this function close to the resource, savings in shipping costs are also realized. The machinery for producing blanks is relatively straightforward and capital investment can be justified by full utilization of the equipment. This requires full order sheets and a continuous supply of fibre.
While there appears to be some resistance to the use of alternative species in component consuming industries, species such as yellow birch and yellow poplar provide evidence that substitution is happening. As the lumber markets for white birch and aspen are developing in Canada and the US, component blanks may be a viable outlet for the lower grades of lumber produced. In this way, the component industry may make the development of underutilized Canadian species more viable.