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North American & European Engineered Wood Markets in Construction & Buildings Poised for Growth Upswing Finds Frost & Sullivan - Escalating demand for cost-effective wood products for building applications, such as flooring, structural panels and load bearing, is driving growth in the North American and European engineered wood (EW) markets
North American & European Engineered Wood Markets in Construction & Buildings Poised for Growth Upswing Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2011/06/15 - Escalating demand for cost-effective wood products for building applications, such as flooring, structural panels and load bearing, is driving growth in the North American and European engineered wood (EW) markets.

   
 
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Despite the severe decline in demand for new houses and large-scale remodeling projects, volume consumption of EW is expected to pick up traction due to increasing consumer acceptance.

The EW wood market is highly impacted by the prevailing trends in the housing and furniture sectors. Market development depends on product types, including OSB, glulam and laminated veneer lumber (LVL), which account for approximately 60 percent of the total EW market. In line with the green technology trend, environmentally smart products that help reduce greenhouse gas emissions are being encouraged.

Analysis from Frost & Sullivan (chemicals.frost.com), Strategic Analysis of the North American & European Engineered Wood Markets in Construction & Buildings, finds that the market earned revenues of 24.4 billion in 2009 and estimates this to reach $55.6 billion in 2016.

If you are interested in a virtual brochure on this study, please send an email to Sarah Saatzer, Corporate Communications, at sarah.saatzer[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"In the United States, the development of "green building standards" has been initiated in several states," says Frost & Sullivan Research Analyst Gaurav Vyas. "These standards are comprehensive and provide impetus for certified wood and wood products that are associated with low emissions."

The impact was a gradual recovery for EW utilization in 2010, where new housing starts were encouraged to use EW products.

In Europe, the EU commission decided to fund eco-innovation projects, under the "Competitiveness and Innovation Program." This will have significant implications for wood composite products. Furthermore, European countries are framing new policies to promote green buildings and are revising the existing building regulations to clear the bottlenecks standing in the way of renewable building materials usage.

"Europe has the highest level of penetration for EW products in industrial applications, and the ones that benefit from this trend are particleboard, medium density fiberboard (MDF) and plywood," says Vyas. "The majority of these products catering to industrial applications are specialty and value-added products, such as fire rated and melamine faced."

Glulam usage in Europe is increasing and its market penetration is higher compared to that of North America. In Europe, a higher level of penetration of EW has been observed in the non-residential construction and industrial markets. In North America, the situation is the opposite, largely due to the prominence of timber frame houses constructed in North America.

Although the prospects for the market look bright, there are some challenges stalling forward momentum. The cost of energy has been fluctuating over the last decade, due to the volatility in oil prices. Unstable energy costs have affected the overall input costs. As a result, the profitability of EW manufacturers has declined.

Apart from this, high capital costs discourage installation of new facilities and impose capacity reductions. The economic downturn has also contributed to the reduction in demand for EW products. In this scenario, value-added services such as on-site support and computer aided designing capabilities for construction of houses, bridges and malls will be preferred. Participants will compete on the basis of product differentiation in a consolidated market as end users are becoming increasingly particular about being able to choose from a variety of products available.

Strategic Analysis of the North American & European Engineered Wood Markets in Construction & Buildings is part of the Chemicals and Materials Growth Partnership Service program, which also includes research in the following markets: Materials and Chemicals in Advanced Glazing Systems - Strategic Analysis of the European Market November -2010, Materials for Energy Efficient Buildings in North America, and Strategic Analysis of the Global Photovoltaic Materials Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Strategic Analysis of the North American & European Engineered Wood Markets in Construction & Buildings / N851

 
 
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North American & European Engineered Wood Markets in Construction & Buildings Poised for Growth Upswing Finds Frost & Sullivan

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