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Wood Products
Last updated: April 2008

Industry Codes:
  • NAICS – 321113 Sawmills
  • NAICS – 337122 Nonupholstered Wood Household Furniture Manufacturing
  • NAICS – 337121 Upholstered Household Furniture Manufacturing
  • NAICS – 337211 Wood Office Furniture Manufacturing
  • SIC – 2511 Nonupholstered Wood Household Furniture Manufacturing
  • SIC – 3553 Woodworking Machinery
  • SIC – 321999 Other Wood Product Manufacturing

Overview

The furniture industry in the U.S. has been dismantled by foreign imports. Every segment has been impacted and factories have closed throughout the country reshaping the industry. There have been hundreds of plant closings and more than 75,000 jobs lost between 2000 and 2004. To make matters worse, the mortgage debt crisis has taken millions of homeowners out of the market for new furniture, stressing the remaining manufacturers and retailers alike. Foreign manufacturers are getting stronger, more automated, and improving the quality of their finishing capabilities, ensuring that manufacturing and the sourcing of components will continue to move offshore.

Changing Hardwood Component Markets
  1984 2007
Furniture 65% 19%
Cabinetry 16% 25%
Building Products 10% 46%
Decorative/Specialty 4% 7%
Industrial Products 5% 3%
Source: 2007 WCMA Market Study


Industry Condition – Poor


Key Industry Indicators

  • New Home Sales
    In March, sales of single-family new home sales fell 8.5% over the previous month and 36.6% lower than one year earlier. Eleven months of new home inventory is sitting on the market, the highest levels in nearly 27 years.
  • New Residential Building Permits
    In March, privately-owned housing units authorized by building permits were at 927,000. This is 5.8% below the revised February rate and is 40.9% below one year earlier.
  • Industry Reported Gross Profit

  • U.S. Real Residential Investment Growth
    In the fourth quarter of 2007, real nonresidential fixed investment increased 6.0%, compared with an increase of 9.3%.

Commodity Tracker

Random Lengths Lumber Market Report

  This Week
May 2		 Last Week
Apr 25		 Year Ago
2007
Random Lengths Framing Lumber Composite Price* $270 $262 $283
KD Western S-P-F #2&Btr 2x4 R/L Mill Price 220 210 229
KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes 294 294 308
Green Douglas Fir Std&Btr 2x4 R/L (Portland) 258 260 238
Southern Pine (Westside) #2 2x4 R/L 310 296 281
KD Coast Hem-Fir Std&Btr 2x4 R/L 228 225 240
Ponderosa Pine (Inland) #2&Btr 1x12 R/L 425 400 680
* Weighted average of 15 key items

Source: Random Lengths

Secondary Market

Overview

The market for used equipment is best for late model, high production machinery. This equipment will either be sold to serve niche segments of the industry insulated from import pressures or most likely exported to destinations in Mexico or the Far East.

Used Equipment Values – Fair

  • Supply of used equipment – Increasing
  • Demand for used equipment – Decreasing

Liquidation Monitor

  • Recent bankruptcy filings
    • Wickes Furniture Company, Inc. filed on February 3, 2008
    • Levitz Furniture filed on November 8, 2007
    • O'Sullivan Industries Holdings, Inc. filed on October 14, 2005
    • Levitz Home Furnishings, Inc. filed on October 11, 2005
    • Falcon Products, Inc filed on January 31, 2005
    • Bush Industries, Inc. filed on March 31, 2004

Factors Influencing Value & Marketability

  • Age – 5 years or less is best for high production equipment
  • Age – 10 years or less for generic equipment with more universal application
  • Condition and productivity

Industry Experience

Valuation Monitor

AccuVal routinely provides appraisal, consulting, and asset management services to the Wood Products industries which includes a wide variety of woodworking operations, as well as to the Forestry and Lumber industries. View industries serviced >>

Representative Clients Our Associates Have Served

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