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        Lumber Wholesalers Industry Profile

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        Excerpt from Lumber Wholesalers Industry Profile

        Companies in this industry distribute lumber and plywood products, wood windows and doors, and millwork. Major US companies include Builders FirstSource, Forest City Trading Group, HD Supply, and Tumac Lumber.

        The US lumber wholesalers industry includes about 7,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $100 billion. Manufacturers' sales branches are included in the industry.

        COMPETITIVE LANDSCAPE

        Demand for lumber and plywood is strongly affected by the level of residential real estate construction. Profitability depends on efficient operations. Large wholesalers are more likely to serve large customers, with operations in multiple markets. Small companies can compete effectively by focusing on local markets and building strong relationships with customers. The US lumber wholesalers industry is fragmented: the 50 largest companies generate about 50% of revenue.

        PRODUCTS, OPERATIONS & TECHNOLOGY

        Lumber wholesalers buy lumber and other wood products and resell them to retail lumberyards, home improvement centers and products distributors. Only the largest companies have more than 100 employees; the average wholesaler has fewer than 20. National and regional wholesalers usually have several offices that serve local customers. Most companies operate locally, serving local customers and buying from local mills. Major products include rough, dressed, and finished lumber, which account for about 35% of the industry revenue. Other products include millwork and wood millwork as well as untreated lumber, which account for roughly 15%, each. Panel products, treated lumber, gypsum boards, and softwood ...

         
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