North America Blockboard Market Size, Share & COVID-19 Impact Analysis, By Type (Softwood Type and Hardwood Type), Application (Engineering & Construction, Furniture Industry, Interior Decoration, and Others), and Country Forecast, 2019 - 2026

The North America blockboard market size was valued at USD 3.31 billion in 2019 and is projected to reach USD 3.92 billion by 2026, exhibiting a CAGR of 2.5% during the forecast period.

Blockboards are widely used timber panels that are made up of timber core with the veneer sheets attached to both sides of it. Increasing use of wood-based furniture is largely driving the demand for the products. Blockboards are the most preferred choice of the wood panel makers due to their exceptional properties, including robust strength, easy to process nature, and resistance to the heat & electricity. Nowadays, companies are strongly utilizing technology-enabled (technological innovations) & data-driven methodologies in order to improve their customer experience. For instance, in February 2018, Hanson Plywood Ltd., a UK based bespoke wood panel provider with the presence in North America, Asia, and many other regions market, implemented a real-time vehicle tracking system for accurately delivering the purchase orders to the customers.

Uncertain Occurrences of the COVID-19 Outbreak Has Disrupted the Blockboard Supply Chain

Sudden lockdown restrictions due to the COVID-19 pandemic disease have affected the American commercial transportation systems. This has created hindrances to manufacturers in procuring the raw materials for the wood processing activity as well as in fulfilling the panel orders which has thereby impacted their production revenues. Additionally, a sharp decline in the demand for interior decoration services and demand in the product packaging during the outbreak period has temporarily hampered the market growth.

However, growing preferences for the home office-based style of working as well as the demand for the necessary furniture facilities such as desks, tables, chairs, shelves among students and working professionals during the COVID-19 lockdown period has slightly helped the industry players to sustain in such an outbreak. According to the report ‘Ability to Work From Home: evidence From Two Surveys and Implications for the Labor Market in the CoVID-19 Pandemic’, published by U.S. Bureau of Labor Statistics, 31% of the workers who were employed in the early March had switched to work of home-style of working by the first week of April.

LATEST TRENDS

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Adoption of Bio-fuel Based Energy Sources among Key Players

Changing preferences of the industry players towards the utilization of the bio-fuels, bio-chemicals, and biomaterials for the production of the board panels from the petroleum-based energy sources and materials strongly help them to scale up their production efficiencies as well as in controlling the carbon footprint and the increasing transportation and manufacturing cost (which transfers to blockboard price). Additionally, various schemes and policies proposed by the regulatory authorities regarding the usage of the environmentally friendly renewable energy sources for the forestry businesses influence the players towards the usage of the clean energy sources for their operations. According to the article ‘Our Forests Aren’t Fuels’, published by Natural Resources Defense Council (NRDC), in April 2018, U.S. Environmental Protection Agency introduced a policy for the forthcoming regulatory actions to treat biogenic CO2 emission from the combustion of the biomass obtained from the managed forestry resources and to establish energy production methods while neutralizing the carbon emission.

Growing Usage of the Composite Materials to Aid Market Growth.

Nowadays, several companies are using the composition of the wood raw sheet with various other materials such as formaldehyde-based resins, PMDI, water, paraffin wax, and others for the panel production in order to boost the strength and durability are anticipated for the panels. This has effectively contributed to the growth of the market. Additionally, the introduction of the multilayer panels by the prominent companies has also scaled the wooden panel making businesses. For instance, Nanjing Emburg Co. Ltd., a Chinese plywood maker firm with their U.S., and Canada export destination provides multilayer based blockboards under their Paulownia Core Blockboard category.

DRIVING FACTORS

Rising Consumer Demand for the Wooden-based Decor and Fixture Sheets is Anticipated to Drive the Market Growth

Blockboards are widely used in the production of furniture items such as tables, chairs, sofa’s, desks, and others. Therefore, increasing demand for such hardwood based furniture items will emerge in favor of the growth of the market. According to the estimated statistics presented by the Retail Council of Canada, as of November 2018, Canadian retail revenues from the furniture and home furnishing segment have reached to USD 1.502 million as compared to that of USD 1.487 million in 2017. Moreover, wide availability & utilization of the advanced cutlery tools and machinery by the manufacturers have improved their production efficiencies and have supported the growth of the market.

Additionally, rising demand for the interior & decoration services among people as well as the usage of the related décor wooden items is likely to drive the consumption rate of the softwood based blockboard panels for the provision of similar services. According to the article ‘ASID Interior Design Billing Index (IDBI)-June 2020’, published by American Society of Interior Designers, as of June 2020, interior design inquiry index moved into the expansion territory from 49.1 by the end of May to 52.3 in June that signaling positive future for the interior designer firms in America.

Recasting in the Variety of Blockboard Based Panel Designs is Expected to Fuel the Market Growth

Escalating consumer demand towards elegant furniture & floorings for their home and offices has encouraged design decorators to choose innovative and highly engineered sheets during the renovation & remodeling activities. This has skyrocketed the demand for such innovative blockboards. Additionally, the recent introduction of such an engineered panel by prominent companies in the industry is likely to support future product demand. For instance, in February 2019, Keterra launched cross-laminated timber (CLT), a flat, system-based, and engineered timber product for the floors, walls, and roofs.

RESTRAINING FACTORS

Wide Availability of the Counterfeit Products is Anticipated to Restrain the Market Growth

The large presence of the counterfeit product makers as well as their competitive market pricing is expected to hamper the revenues of the prominent industry players. Additionally, wide availability of the other wood-based materials such as plywood, oriented strand board (OSB), and others have also impacted the growth of the market. Moreover, changing import & custom duty policies in the North American markets have significantly affected the export/import activities of the panel businesses of the companies. Uncertain inspections related to the product quality check and control from the regulatory authority has also halted the operational efficiency of the blockboard makers.

SEGMENTATION

By Type

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Softwood Type Segment is Anticipated to Exhibit a Major Share due to Renowned Choice of Manufacturers

Softwood is the most renowned choice among manufacturers because of its easy availability & low blockboard cost. Also, it is highly flexible to the carpenters to cut these panels into the different sections and to stick the screws on it compared to that of hardwoods which have enlarged the segment share. However, the hardwood segment witnessed considerable growth as these products are widely used in the designing of the outdoor furniture because of their robustness in opposing the external environmental shocks and rainfall. Additionally, increasing necessities for the fire protection facilities and equipment in various industries is likely to drive the segment growth as they are highly resistant to the heat & electricity and can be used as an insulator.

By Application

Engineering & Construction Segment is Expected to Exhibit the North America blockboard market’s Largest Share on the Applications Basis

Blockboards are commonly used in flooring and wall paneling during the construction work of the various product type and application of buildings. Therefore, the engineering & construction segment is expected to hold a strong market position owing to the introduction of the large value of residential & commercial building construction projects across the region. According to the data presented by International Trade Administration, in 2018, the Mexican government proposed a national development plan of 2019-2024 and announced to invest USD 58,600 million for completing these infrastructure plans of conducting 1,600 construction projects. Additionally, such boards are preferably used in the large scale in the switchboard production process for houses & commercial buildings which have scaled the future segment growth.

Structural panels are usually made from blockboards for furniture making. Therefore, rising structural panel production volume for the furniture businesses has made furniture segment the fastest-growing segment for the market. For instance, as per the survey report ‘united States Forest Products Annual Review and Prospect 2015-2019’, published by the United Nations Economic Commission of Europe, in U.S. total structural panel production has increased by 2.9% in 2018 over to that of 2017. Additionally, changing consumer preferences for different sofas, tables, chairs made up of various styles, colours, and designs will further likely to drive the growth. Of the segment.

Lumber based items are increasingly used during home decoration activities. Hence, growing consumption of the softwood lumber based items will likely to propel the interior decoration segment growth. According to the data presented by Western Wood Product’s Association (WWPA), consumption & shipments of the softwood lumber based items in the United States have grown by 2% & 6.3% respectively from the first half-year of 2017 to the similar period in 2018. Other segments include various panel applications such as shipbuilding, aircraft design, bus bodies, railway carriage, transportation vehicles, and river crafts.

COUNTRY INSIGHTS

U.S. Market is Likely to Hold a Considerable Share of the North America Blockboard Market

A major share of the United States in the North American market is attributed to the large consumption of sawn softwood & hardwood based items in the country which results in the higher consumption of sawn based blockboards. According to the data published by United Nations Economic Commission for Europe (UNECE),  in 2018, the consumption volume of the sawn softwood & hardwood has reached 92.30 million cubic meters & 18.93 million cubic meters respectively. Additionally, the presence of a strong wood supplier/companies in the market including Hunter Global Resources LLC., Rulon International Inc., Central Hardwood Inc., Snavely International, and others has largely supported the revenues from the wood-based panels in the country.

Industrial round woods are essentially used in the designing of the interior decoration specific blockboard panels. Therefore, the Canadian blockboard market witnesses the fastest growth owing to the high and increasing consumption of the industrial round woods in the country. According to the estimated statistics presented by Food & Agricultural Organisation (FAO), in 2018, Canadian industrial Roundwood consumption volume was reached nearly 240 million cubic meters up from approximately 220 million cubic meters in 2017.

Besides this, the presence of large wood application-specific trees in Canada has largely contributed to the growth of the wood products furnishing businesses in the country and thereby, the growth of the market. According to the data published by Toronto, Government of Canada, in 2018, on an average, Toronto’s urban forest region consists of 10.2 million number of trees that covers 28% of the Toronto’s geographical area and provide USD 28.1 million in ecological services each year. Additionally, growing renovation & remodeling trends as well as the shifting preferences towards having a smart house is further propelling the growth of the market in Canada. Hence, the Canadian blockboard market shows the fastest growth during the market forecast period of 2019-2026.

KEY INDUSTRY PLAYERS

Usage of Advance Features in the Operations Helps to Cope-up With the Industry Competitiveness

Production efficiency and production capacity building is an essential aspect for the product manufacturers to cater to the uncertain panel orders of the furniture and interior decor clients. Additionally, usage of advanced cutlery tools and systems as well as the incorporation of various additional features in the panel designs help the companies to surpass the industry competition. Nowadays, companies use data-driven methodologies in their manufacturing, raw material procurement, and distribution operations to efficiently perform their business processes. 

LIST OF KEY PLAYERS PROFILED:

• Century Plyboards Ltd. (Kolkata, India)


• Shanghai Sindo Panel Co. Ltd. (Shanghai, China)


• Saveplac Plywood Srl (Mage llano, Italy)


• Sinewood Industries Co. Ltd. (Shandong, China)


• Solid Ply Pvt. Ltd. (Vishakhapatnam, India)


• HS Timber Group (Wien, Austria)


• SWL Tischlerplatten BETRIEBS-GmbH (Langenburg, Germany)


• Starrforest Inc. (Quebec, Canada)


• BUFFALO VENEER & PLYWOOD (Minnesota, United States)


• Martin’s Furniture LLC. (Ephrata, United States)

KEY INDUSTRY DEVELOPMENTS:

• In October 2019, Walter Aresca, an Italian plywood & blockboard maker launched a laminated blockboard, which is a decorative lumber core having the special properties of chemical & fire protection, wear & tear resistance and is useful for structuring upper and lower kitchen cabinets, work benches, child room, and office furniture. 


•  In July 2018, Century Plywoods Ltd. launched perfectly engineered Sainik 710 plywood and blockboards to deliver a distinctive edge of craft and endurance to the furniture in home and office applications.

REPORT COVERAGE 

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The report provides qualitative and quantitative insights into the blockboard industry. It also offers a detailed North America blockboard market analysis with size and growth rate for all possible segments in the market. Along with this, the market research report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments like mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

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