Plywood and Engineered Wood Manufacturers NAICS 3212

Nov 24, 2025 - Top Home Improvement Players Notch Tougher Q3

• Plywood and engineered wood product manufacturers could see demand soften amid a weak housing market and more cautious home improvement spending. Home Depot and Lowe’s faced headwinds in the third quarter as housing market weakness and economic uncertainty dampened home improvement demand, according to Retail Dive. Home Depot’s net sales rose 2.8% over Q3 2024, boosted by its $900 million acquisition of GMS, but net income fell 1.3%. Comparable sales were nearly flat. Lowe’s reported a 3% year-over-year sales increase, with gains in pro sales, home services, and online purchases, though net income fell 4.7%. Both retailers cited weaker demand for large discretionary projects and revised their outlooks downward. Each continues to target professional customers, with Home Depot acquiring GMS and Lowe’s planning to acquire Foundation Building Materials. The sector remains pressured by cautious consumers and limited housing activity.
• Rayonier and PotlatchDeltic plan to merge in an all-stock deal valued at $7.1 billion, creating the second-largest US timberland owner with 4.2 million acres and a strong mill presence. PotlatchDeltic’s facilities in Arkansas, Idaho, Michigan, and Minnesota are expected to benefit from tariffs on Canadian softwood lumber, which have lifted domestic prices and tightened supply. For the plywood and engineered wood product industry, the merger signals greater stability in raw material sourcing and potential cost advantages, particularly as Southern timberlands provide an abundant supply of pine for manufacturing. Nearly a million acres in the Northwest will also help meet demand for logs used in engineered wood, where federal harvests have declined. By consolidating operations, the combined company strengthens its ability to supply mills and distributors, positioning itself as a key player in supporting growth and resilience across the plywood and engineered wood product markets.

• Plywood and engineered wood product manufacturers may experience margin relief as log and lumber prices drop. On November 24, lumber futures were trading around $536 per thousand board feet, nearly matching September pricing, which was the lowest level this year, according to Trading Economics. Many lumber buyers frontloaded supplies ahead of tariffs in anticipation of rising housing demand that never materialized. Lumber dealers are offloading bloated inventories into already oversupplied markets, sending prices lower. High mortgage rates and a waning building season have put additional downward pressure on pricing, prompting some sawmills to announce production cutbacks and mill closures.
• America’s largest homebuilders are struggling to sell new homes despite offering 4% mortgages and deep discounts, according to The Wall Street Journal. D.R. Horton and Lennar have slashed prices and added incentives, but demand remains weak, pushing unsold inventory to levels last seen in 2009. Builders are slowing construction, with D.R. Horton cutting starts by 21% year over year for the three-month period through September. Regional gluts in Texas, Florida, Southern California, and Washington, DC reflect rising resale competition, fewer foreign buyers, and economic uncertainty. Investor activity is at a 15-year low, with institutional buyers demanding steep discounts that builders won’t meet. New homes, often located in less desirable areas and targeted at first-time buyers, are more challenging to sell.