SIC 5031 Lumber, Plywood, Millwork, and Wood Panels

SIC 5031

This classification is comprised of wholesale distributors of rough, dressed, and finished lumber (other than timber). Establishments operate with or without yards. Principal products include plywood, reconstituted wood fiber products, doors and doorframes, windows and window frames (all materials), wood fencing, and other wood or metal millwork.

NAICS CODE(S)

444190

Other Building Material Dealers

421310

Lumber, Plywood, Millwork, and Wood Panel Wholesalers

INDUSTRY SNAPSHOT

According to the U.S. Department of Commerce, 40 percent of U.S. consumption of "softwood lumber" represents the construction for new construction of homes, and 30 percent for their maintenance and refurbishing. In 2001, the U.S. Census Bureau reported 7,220 lumber, plywood, millwork, and wood panel wholesalers. That number had increased to 15,614 by 2003, and industry sales were valued at more than $62 million. The industry employed roughly 204,070. The U.S. states with the highest sales volume included California, Florida, Texas, New York, Pennsylvania, Ohio, which together accounted for more than 36 percent of the industry's output.

Lumber, plywood, and millwork represented the largest sector with 4,384 establishments. These controlled more than 28 percent of the market, with shared sales of more than $19 million. Businesses in the rough dressed and finished lumber segment numbered 2,463, which was about 15 percent of the market. There were 1,890 businesses that were engaged in the wholesale distribution of kitchen cabinets. Combined, they represented approximately 12 percent of the market. Exterior building materials had 1,520 establishments and represented almost 10 percent of the market. The majority of lumber consumed in the U.S. was imported from Canada.

BACKGROUND AND DEVELOPMENT

During the early 1990s, establishments involved in the wholesale distribution of lumber and other wood products faced a number of challenges stemming from depressed economic conditions and an uncertain political climate. As the nation's economy stagnated, many large retail outlets began bypassing wholesalers in favor of direct purchasing channels. Some smaller retail outlets were forced to close, leaving a diminished number of traditional customers for wholesalers. In addition, uncertainty about the nation's timber policy led to fluctuating prices...