SIC 2436 Softwood Veneer and Plywood

SIC 2436

This classification includes establishments primarily engaged in producing commercial softwood veneer and plywood from veneer produced in the same establishment or from purchased veneer. Establishments primarily engaged in producing commercial hardwood veneer and plywood are classified elsewhere in SIC 2435: Hardwood Veneer and Plywood. Establishments primarily engaged in the production of veneer used in the same establishment for the manufacture of wood containers such as fruit and vegetable baskets and wood boxes are classified elsewhere in various wood container manufacturing industries.

NAICS CODE(S)

321212

Softwood Veneer and Plywood Manufacturing

Plywood was first developed in 1905 in St. John, Oregon. Plywood comes in different grades depending on the quality of surfaces and the type of adhesive.

Softwood veneer is made by cross-laminating veneers, such as pine, spruce, fir, and hemlock. The grains are placed at right angles to improve strength; panels are made in 4-by-8 foot sizes, with a thickness up to three-quarters of an inch. Veneers are bonded together using a waterproof or moisture-resistant adhesive.

The Bureau of the Census reported the value of output for the plywood and veneer (softwood) manufacturing industry as $4.4 billion for 2001. The demand for veneer and plywood depends on the construction industry. Nearly 48 percent of veneer and plywood output goes to construction, mainly residential. Roughly 25 percent of the output is used in other lumber and wood products industries, with an additional 11 percent in furniture and fixtures. Rough softwood plywood accounts for more than 50 percent of total product shipments, followed by sanded softwood plywood and nonreinforced softwood veneer at 15 percent and 13 percent, respectively.

As with other construction material producing industries, this industry suffered during the economic recession of 1990 to 1991, but it benefited tremendously from the surge in housing construction at the end of 1993. Growth continued until 1996, when shipments dropped back to 1993 levels. In 1997, product shipments increased by 1 percent to about five billion dollars compared to the previous year, which was again attributed to healthy housing starts. Due in part to the strengthening U.S. economy, shipments increased to $5.15 billion in 1998 and to $5.56 billion in 1999. However, when the U.S. economy weakened in 2000, shipments declined to five...

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