This study examines the US market for wood panels, including structural panels (oriented strand board and softwood plywood) and nonstructural panels (particleboard, hardwood plywood, medium density fiberboard, hardboard and other fiberboard). Markets for the panels encompass a wide range of construction uses (e.g., roofing, wall sheathing, flooring, siding, cabinets), as well as various manufacturing applications (e.g., furniture and fixtures, engineered wood products, transportation equipment, material handling products). In addition to providing wood panel demand by product type and market, the study also discusses demand by US region.

INTRODUCTION x

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Environment 5
Consumer Income & Spending 8
Personal Income & Expenditures 9
Consumer Financing 11
Demographic Trends 13
Population 15
Households 17
Building Construction Trends 18
Residential Construction 20
Housing Starts 23
Housing Stock 26
Improvements & Repairs 27
Nonresidential Construction 29
Nonresidential Construction Outlook 30
Nonresidential Building Stock 33
Manufacturing Outlook 36
Furniture Outlook 39
Market Trends 41
Pricing Patterns 45
Regulatory Environment 49
Timber Harvesting Restrictions 49
Emissions Regulations 51
Building Codes 53
World Wood Panel Overview 54
US Foreign Trade 57
Imports 58
Exports 61

III. OVERVIEW 65
General 65
Volume Outlook 68
Value Outlook 72

IV. STRUCTURAL PANELS 75
General 75
Supply & Demand 77
Oriented Strand Board 80
OSB Construction Markets 85
OSB Manufacturing Markets 89
OSB Capacity 91
OSB Announced Capacity Additions 93
Softwood Plywood 95
Softwood Plywood Construction Markets 99
Softwood Plywood Manufacturing Markets 103
Softwood Plywood Capacity 105

V. NONSTRUCTURAL PANELS 109
General 109
Supply & Demand 110
Particleboard 113
Particleboard Construction Markets 117
Particleboard Manufacturing Markets 121
Particleboard Capacity 123
Medium Density Fiberboard 125
MDF Construction Markets 130
MDF Manufacturing Markets 133
MDF Capacity 136
Hardwood Plywood 138
Hardwood Plywood Construction Markets 141
Hardwood Plywood Manufacturing Markets 144
Hardwood Plywood Capacity 146
Hardboard 148
Hardboard Construction Markets 151
Hardboard Manufacturing Markets 155
Hardboard Capacity 156
Other Fiberboard Panels 158
Other Fiberboard Construction Markets 160
Other Fiberboard Manufacturing Markets 164
Other Fiberboard Capacity 165

VI. MARKETS 167
General 167
Construction Markets by Application 169
Roofing 173
Flooring 176
Wall Sheathing 180
Cabinets 183
Siding 187
Doors & Windows 192
Interior Paneling 194
Other Construction Applications 197
Construction Markets by End Use 199
Residential 201
Conventional Housing 203
Manufactured Housing 203
New Construction 204
Improvement & Repair 205
Nonresidential 206
Office & Commercial 207
Institutional 208
Industrial 208
Other Nonresidential Construction 209
New Construction 209
Improvement & Repair 210
Manufacturing Markets 210
Furniture & Fixtures 212
Engineered Wood Products 217
Transportation Equipment 219
Material Handling Equipment 221
Other 224

VII. DEMAND BY REGION 227
General 227
Regional Demographic & Economic Trends 228
Population Patterns 229
Economic Outlook 231
Construction Activity 233
Housing Trends 236
Regional Demand for Wood Panel Products 237
Northeast 240
New England 243
Middle Atlantic 245
Midwest 246
East North Central 249
West North Central 250
South 251
South Atlantic 255
East South Central 257
West South Central 258
West 259
Mountain 263
Pacific 264

VIII. INDUSTRY STRUCTURE 266
General 266
Industry Composition 267
Market Share 271
Georgia-Pacific 272
Weyerhaeuser 273
Louisiana-Pacific 273
Norbord 274
Roseburg Forest Products 274
International Paper 274
Other Leaders 275
Vertical & Horizontal Integration 275
Product Development 277
Manufacturing 279
Marketing 281
Distribution 284
Mergers & Acquisitions 286
Cooperative Agreements 287
Company Profiles 289
Ainsworth Lumber Company Limited 291
Boise Cascade Holdings LLC 295
Canfor Corporation 297
Collins Companies Incorporated 300
Columbia Forest Products 301
Del-Tin Fiber LLC, see Temple-Inland
Flakeboard Company Limited 305
Georgia-Pacific Corporation, see Koch Industries
Grant Forest Products Incorporated 308
Great Lakes MDF LLC 310
Hood Companies 312
Hoover Treated Wood Products Incorporated 313
Huber Engineered Woods LLC, see Huber (JM)
Huber (JM) Corporation 315
Hunt Forest Products Incorporated 318
IP Wood Products, see International Paper
International Paper Company 319
Knight-Celotex LLC 321
Koch Industries Incorporated 323
Langboard Incorporated 330
Louisiana-Pacific Corporation 331
Martco LP, see Martin (Roy O.) Lumber Management
Martin (Roy O.) Lumber Management LLC 336
Multiple Plywood, see Columbia Forest Products
Norbord Incorporated 338
Plum Creek Timber Company Incorporated 342
Potlatch Corporation 344
Rocky Creek Lumber Company,
see Martin (Roy O.) Lumber Management
Roseburg Forest Products Company 346
SierraPine Limited 351
Stimson Lumber Company Incorporated 354
Temple-Inland Incorporated 355
Timber Products Company 359
Trus Joist, see Weyerhaeuser
Tolko Industries Limited 361
Weyerhaeuser Company 363

LIST OF TABLES

TABLE NUMBER PAGE

SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Trends 8
2 Personal Income & Expenditures 10
3 Consumer Financing Environment, 1995-2005 13
4 Population & Households 15
5 Building Construction Expenditures 20
6 Residential Construction Expenditures 23
7 Housing Environment 26
8 Residential Improvement & Repair Expenditures 29
9 Nonresidential Construction Expenditures 33
10 Nonresidential Building Stock 36
11 Manufacturing Outlook 39
12 Furniture Shipments 41
13 Wood Panel Market Trends 44
14 Wood Panel Pricing Trends 48
15 Wood Panel Foreign Trade 58

SECTION III -- OVERVIEW
1 Wood Panel Demand & Supply 71
2 Wood Panel Market Value by Product 74

SECTION IV -- STRUCTURAL PANELS
1 Structural Panel Demand & Supply 79
2 Oriented Strand Board Demand & Supply 85
3 Construction Markets for Oriented Strand Board 88
4 Manufacturing Markets for Oriented Strand Board 91
5 Oriented Strand Board Domestic Capacity by Producer, 2005 93
6 Anticipated Changes in Oriented Strand Board Domestic Capacity by Producer, 2006-2008 95
7 Softwood Plywood Demand & Supply 98
8 Construction Markets for Softwood Plywood 102
9 Manufacturing Markets for Softwood Plywood 105
10 Softwood Plywood Domestic Capacity by Producer, 2005 108

SECTION V -- NONSTRUCTURAL PANELS
1 Nonstructural Panel Demand & Supply 112
2 Particleboard Demand & Supply 117
3 Construction Markets for Particleboard 120
4 Manufacturing Markets for Particleboard 123
5 Particleboard Domestic Capacity by Producer, 2005 125
6 Medium Density Fiberboard Demand & Supply 130
7 Construction Markets for Medium Density Fiberboard 133
8 Manufacturing Markets for Medium Density Fiberboard 135
9 Medium Density Fiberboard Domestic Capacity by Producer, 2005 137
10 Hardwood Plywood Demand & Supply 141
11 Construction Markets for Hardwood Plywood 143
12 Manufacturing Markets for Hardwood Plywood 146
13 Hardwood Plywood Domestic Capacity by Producer, 2005 148
14 Hardboard Demand & Supply 151
15 Construction Markets for Hardboard 154
16 Manufacturing Markets for Hardboard 156
17 Hardboard Domestic Capacity by Producer, 2005 157
18 Other Fiberboard Demand & Supply 160
19 Construction Markets for Other Fiberboard 163
20 Manufacturing Markets for Other Fiberboard 165

SECTION VI -- MARKETS
1 Wood Panel Demand by Market 169
2 Wood Panel Construction Markets by Application 172
3 Roofing Market for Wood Panels by Product 176
4 Flooring Market for Wood Panels by Product 180
5 Wall Sheathing Market for Wood Panels by Product 183
6 Cabinet Market for Wood Panels by Product 187
7 Siding Market for Wood Panels by Product 191
8 Doors & Windows Market for Wood Panels by Product 194
9 Interior Paneling Market for Wood Panels by Product 196
10 Other Construction Markets for Wood Panels by Product 199
11 Wood Panel Construction Markets by End Use 201


(continued on next page)
12 Residential Wood Panel Market
by Housing Type & Segment 202
13 Nonresidential Wood Panel Market
by Building Type & Segment 207
14 Manufacturing Wood Panel Markets by Application 212
15 Furniture & Fixture Market for Wood Panels by Product 216
16 Engineered Wood Products Market for Wood Panels
by Product 219
17 Transportation Equipment Market for Wood Panels
by Product 221
18 Material Handling Market for Wood Panels by Product 224
19 Other Manufacturing Markets for Wood Panels by Product 226

SECTION VII -- DEMAND BY REGION
1 US Resident Population by Region 231
2 Regional Gross Domestic Product 233
3 Regional Construction Expenditures 235
4 Regional Housing Starts & Stock 237
5 Wood Panel Demand by Region 239
6 Northeast Wood Panel Demand by Subregion & Product 243
7 Midwest Wood Panel Demand by Subregion & Product 249
8 South Wood Panel Demand by Subregion & Product 255
9 West Wood Panel Demand by Subregion & Product 263

SECTION VIII -- INDUSTRY STRUCTURE
1 US Wood Panel Revenues for Selected Companies, 2005 270
2 Selected Acquisitions & Divestitures 287
3 Selected Cooperative Agreements 289

LIST OF CHARTS

CHART NUMBER PAGE

SECTION II -- MARKET ENVIRONMENT
1 Year of Construction of Housing Stock, 2005 27
2 Wood Panel Market Trends, 1996-2005 45
3 Wood Panel Pricing Trends, 1995-2005 49
4 Wood Panel Imports by Product Type, 2005 61
5 Wood Panel Exports by Product Type, 2005 64

SECTION III -- OVERVIEW
1 Wood Panel Demand by Product Segment, 1995-2015 72
2 US Wood Panel Demand & Shipments, 1995-2015 74

SECTION IV -- STRUCTURAL PANELS
1 Structural Panel Demand by Product, 1995-2015 80
2 Construction Markets for Oriented Strand Board, 2005 89
3 Construction Markets for Softwood Plywood, 2005 103

SECTION V -- NONSTRUCTURAL PANELS
1 Nonstructural Panel Demand by Product, 2005 113
2 Construction Markets for Particleboard, 2005 120
3 Construction Markets for Hardwood Plywood, 2005 144
4 Construction Markets for Hardboard, 2005 154

SECTION VI -- MARKETS
1 Wood Panel Construction Markets by Application, 2005 173
2 Siding Market for Wood Panels by Product, 1995-2015 192
3 Furniture & Fixture Market for Wood Panels
by Product, 2005 217

SECTION VII -- DEMAND BY REGION
1 Wood Panel Demand by Region, 2005 240

SECTION VIII -- INDUSTRY STRUCTURE
1 Wood Panel Market Share, 2005 272