CHARACTERISTICS OF US HARDWOOD WOOD COMPONENT MANUFACTURERS

A number of states and regions in the United States are actively pursu ing rural economic development initiatives to add value to their hardw ood resources. One common challenge in these efforts is to attract new industry or to expand an existing hardwood manufacturing industry bas e. Beyond the production of hardwood lumber, a logical next step in th e value-added chain is the production of wood components. This researc h, based on a comprehensive analysis of the U.S. wood components indus try, had two objectives: 1) to understand the wood components industry and; 2) to provide information to people who are interested in using wood components manufacturing for rural development purposes. Responde nt companies on average purchased 27 percent of their raw materials ne eds (by volume) from out-of-state suppliers, representing a potential opportunity for adding value to the hardwood resource. The most cited reasons for out-of-state raw material purchases were product availabil ity, better prices, and better quality. The study also examined factor s that foster or hinder wood components industry development. Highest rated factors that contribute to wood components company success were the ability to supply quality products to customers, development of lo ng-term customer relationships, offering a high level of customer serv ice,and company reputation. The foremost impediments to company succes s were acquiring quality raw material, developing a consistent raw mat erial supply, and volatile pricing. With regard to location decision f actors that influence corporate expansion or location, wood components manufacturers identified productivity of labor, labor costs, taxes, a nd a skilled labor supply as the most important factors.