Plywood and Engineered Wood Manufacturers

The 1,000 companies in the US produce a variety of wood-based and wood-like products, including plywood, veneer, and reconstituted wood products. Major revenue categories include plywood and veneer (hard or soft wood); reconstituted wood sheets and boards (particle board); roof and floor trusses; and engineered wood products. Firms may also manufacture related products or kits, such as outdoor furniture, pergolas, or specialized saws. Engineered wood is a term that may apply to the entire industry (veneer, plywood, reconstituted wood, trusses, and composite products) or just composite products.

High Capital Requirements

Production of plywood and engineered wood products requires an investment in specialized equipment and machinery.

Sensitivity to Economic Conditions and the Construction Sector

Demand for plywood and engineered wood products is highly dependent on the health of the construction industry, which is sensitive to economic conditions.

Jul 26, 2026 - New Housing Law May Gradually Improve Building Activity

• The 21st Century ROAD to Housing Act is the largest federal housing measure in a generation, but The New York Times reports that it is unlikely to reduce housing costs soon. The law encourages local zoning and permitting reforms, expands support for housing construction, streamlines some affordable housing rules, and protects build-to-rent development. It also removes a costly chassis requirement for manufactured homes and directs federal study of modular construction standards and financing. These measures could gradually increase housing production, including factory-built and single-family rental homes. For plywood and engineered wood product manufacturers, stronger construction activity could increase demand for structural panels, laminated products, and prefabricated components. Greater use of modular and manufactured construction could further support demand for standardized, factory-ready materials. However, limited funding, local regulatory control, high interest rates, and long development timelines may delay substantial market growth.
• US housing starts rose 19% month-over-month and increased 3.5% year-over-year in June, according to the US Census Bureau. The rise in starts was led by a 76.3% increase in multifamily project starts involving five or more units, a segment of the residential construction sector that can be volatile month-to-month. Multifamily starts were up 19.3% compared to June 2025. Single-family starts in June were down 0.2% from May and 3.2% compared to a year earlier. High mortgage rates and a glut of unsold new homes continue to put downward pressure on single-family building. High costs for land and materials are also hindering building activity. Building permits for single-family slipped 2.4% in June from May, marking the lowest level in 10 months. June's multifamily permits dropped 4.9% from the month before.
• On July 20, President Donald Trump signed orders imposing a 50% tariff on many Canadian goods, including plywood, paper, furniture, cement, dairy products, and wine, with the duties scheduled to take effect in 30 days, according to The New York Times. The administration said the tariffs respond to Canadian discrimination against US motor vehicle, dairy, and alcohol industries, while Canada argued that its trade measures merely matched earlier US tariffs. The action excludes certain energy products, minerals, fish, potash, and goods already covered by national security tariffs, but it provides no exemption for products qualifying under the US-Mexico-Canada Agreement. Higher plywood import costs could support domestic prices and production, but retaliatory measures, supply disruptions, and broader construction cost increases could weaken demand. The tariffs also face likely court challenges.
• Home builder confidence in the single-family market fell in July as builders remain concerned about housing affordability, higher construction costs, and elevated interest rates, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), dropped two points to 34 in July 2026. Any HMI reading over 50 indicates that more builders see conditions as good than poor. July marked the 15th consecutive month the HMI remained below 40, a level not seen since the housing crisis in 2012. The survey also showed that 36% of builders reduced home prices in July to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged from June. While the NAHB noted that the recent enactment of the 21st Century ROAD to Housing Act is a positive step in expanding the US housing supply, it added that more reforms are needed at the state and local levels.

Industry size & Structure

The average wood product manufacturer operates out of single location, employs about 81 workers, and generates $41.9 million annually.

• The plywood and engineered wood product manufacturing industry consists of about 1,000 firms that employ about 82,200 workers and generate $42.7 billion annually.
• The plywood and engineered wood product industry is concentrated; the top 50 companies account for 71% of industry revenue.
• Plywood and veneer manufacturers account for about 27% of industry revenue and 23% of firms. Reconstituted wood manufacturers account for 29% of revenue and 13% of firms. Truss manufacturers account for 33% of revenue and 55% of firms.
• Large companies include Louisiana-Pacific Corporation, Trex Company, and Roseburg Forest Products. Weyerhauser Company, Georgia-Pacific, and Boise Cascade have wood product manufacturing operations.