U.S. Demand for Wood Panels to Increase

In spite of a projected weakening in the new residential building construction market, U.S. demand for wood panels is forecast to rise nearly 2 percent per year through 2008, according to a recent study by Cleveland-based research firm the Freedonia Group.

Construction applications will account for two-thirds of total demand by 2008, the study predicts. Although overall gains will by limited by a weak new housing market, applications including cabinets, paneling, stairways, moldings and other millwork will show strong growth.

Non-structural panels will lead gains in the next three years, including medium density fiberboard, particleboard and hardwood plywood, the study predicts.

However, structural panels will continue to comprise the majority of wood panels use and will make up nearly three-fifths of all sales by 2008, according to the study.