MALVERN, Pa. – Demand for OSB and plywood structural engineered wood panels in North America is expected to reach about 30 billion (3/8” basis) square feet in 2013 and grow to nearly 40 billion square feet by 2016. Specialty OSB and plywood panels are the fastest growing segments within the business. Specialty panels offer value-added performance benefits compared to commodity panels, which enable manufacturer product differentiation in the market, some protection from competitive pressures through specification selling, leading to steady demand and higher margins.
Steve Van Kouteren, business director, Industry Reports for Principia, said, “Industry pricing and margins are subject to wide swings due to the cyclical nature of the structural engineered wood panels business. As manufacturers bring capacity back online and plan new greenfield plants for the next growth cycle, a well-positioned specialty panels business provides higher margins and price stability during these cycles.”
Building codes are a key driver of specialty structural engineered wood panels demand. A complex maze of building codes with varying adoption rates by states and local municipalities are driving changes in how homes and commercial structures are designed, built and remodeled. For example, energy codes are affecting demand for radiant barrier sheathing (RBS) and weather-resistant coated sheathing. California’s recently updated Title 24 energy codes require RBS at the roof in specific climate zones and the 2012 IECC residential energy codes are driving product innovation and demand for air and moisture barrier products including coated structural engineered wood panels. Other building codes affecting the demand for specialty panels include fire, seismic and wind load.
To quantify these industry dynamics and trends, Principia is launching its Structural Engineered Wood Panels 2014, Specialty Applications in Building and Construction, an exhaustive market report that reveals key market data organized for strategic marketing and business planning. The new study is founded upon primary research that includes probing interviews and surveys conducted among more than 400 value chain participants and will identify the best growth opportunities through 2016, strategies for value creation and competitive advantage, and the changes in distribution channels serving the specialty structural engineered wood panels market.
The report includes a unique interactive Market Model and Forecasting Tool that allows subscribers to model hypothetical market performance based on their own assumptions of metrics such as housing starts, remodeling expenditures, material trends, etc. using the data compiled in the report. The market model also allows companies to update macroeconomic statistics, thus enabling the ability to keep the data fresh for further use after publication.