Matthew Bumgardner

Competitive actions of small firms in a declining market

Small firms, through their flexibility advantages and closeness to customers, potentially can increase their sales volume in economic downturns. The decline in U.S. housing construction (beginning in 2006) provided an opportunity to develop and test four hypotheses predicting the attributes and marketing actions associated with successful companies supplying housing markets. Smaller firms and those producing made‐to‐order products were most likely to have realized increased sales volume. These successful firms were not engaged in several marketing actions hypothesized to increase sales volume in a declining market. Small firm competitiveness was based more on working closely with customers to produce fully customized products.

Failure to Phytosanitize Ash Firewood Infested with Emerald Ash Borer in a Small Dry Kiln Using ISPM-15 Standards

ABSTRACT Although current USDA-APHIS standards suggest that a core temperature of 71.1°C (160°F) for 75 min is needed to adequately sanitize emerald ash borer, Agrilus planipennis Fairmaireinfested firewood, it is unclear whether more moderate (and economical) treatment regimes will adequately eradicate emerald ash borer larvae and prepupae from ash firewood. We constructed a small dry kiln in an effort to emulate the type of technology a small- to medium-sized firewood producer might use to examine whether treatments with lower temperature and time regimes successfully eliminate emerald ash borer from both spilt and roundwood firewood. Using white ash (Fraxinus americana L.) firewood collected from a stand with a heavy infestation of emerald ash borer in Delaware, OH, we treated the firewood using the following temperature and time regime: 46°C (114.8°F) for 30 min, 46°C (114.8°F) for 60 min, 56°C (132.8°F) for 30 min, and 56°C (132.8°F) for 60 min, Temperatures were recorded for the outer 2.54-cm (1-in.) of firewood. After treatment, all firewood was placed under mesh netting and emerald ash borer were allowed to develop and emerge under natural conditions. No treatments seemed to be successful at eliminating emerald ash borer larvae and perpupae as all treatments (including two nontreated controls) experienced some emerald ash borer emergence. However, the 56°C (132.8 F) treatments did result in considerably less emerald ash borer emergence than the 46°C (114.8°F) treatments. Further investigation is needed to determine whether longer exposure to the higher temperature (56°C) will successfully sanitize emerald ash borer-infested firewood.

Trends in the US hardwood lumber distribution industry: Changing products, customers, and services

Efficient and effective supply chains are the backbone of any industry, including the forest products industry. As the US secondary hardwood industry has undergone a profound transformation and large parts of the industry have moved offshore, the supply chain is adapting to these new realities. Remaining and new customers of US hardwood lumber distributors tend to be smaller and likely have a wide variety of unique needs and expectations. A survey conducted in the fall of 2008 of distributors of hardwood lumber assessed the sourcing needs and perceptions of the industry and describes the status of the industry as of 2007. The findings suggest that the US hardwood lumber industry is adapting to the new realities brought forth by the globalization of markets and slowing housing markets. Almost half of the respondents indicated that their average customer in 2007 was smaller than the average customer in 2003, and 75 percent of respondents indicated that the average order was smaller in 2007 versus 2003. To accommodate their customers, distributors added a plethora of new services, with provision of certified products being the fastest growing. Overall, the study depicts an ongoing transformation of the US hardwood lumber supply chain, where distributors are well positioned to meet the exacting specifications of numerous small and customized manufacturers.

Attitudes of U.S. Retailers Toward China, Canada, and the United States as Manufacturing Sources for Furniture: An Assessment of Competitive Priorities

Abstract While much has been written regarding the declining global competitiveness of U.S. furniture manufacturing and the subsequent loss of domestic market share and jobs, less is known about the role of retailers in furniture importing. This study investigated the attitudes of U.S. furniture retailers toward China, Canada, and the United States as manufacturing sources for residential furniture and their perceptions of consumer interest in country of origin for furniture manufacturing. The study was based on a nationwide survey in 2005 of the membership of a large U.S. home furnishings trade association. Over half of the retailers surveyed indicated that they did not always know where the products they sold were made; but many consumers were asking about the country of origin of furniture products. The “halo effect” associated with preference for home country described in previous country or origin studies was confirmed in this study, but in a situation where the domestic source had already lost much of its market share. Low price was the only attribute for which China was rated higher than the U.S or Canada, reinforcing the “China price” phenomenon discussed in the literature. Adjusting for the halo revealed several opportunities for U.S. and Canadian firms to compete in the U.S. wood furniture market on non-price factors. Those retailers sourcing furniture from China were found to have more favorable perceptions of Chinese goods than those not sourcing from China; although both groups had equally favorable perceptions of the U.S. as a furniture source. Priorities for competitive strategies for manufacturers in each source country are noted based on the findings.

Recent Developments in US Hardwood Lumber Markets and Linkages to Housing Construction

Purpose of ReviewThe housing industry has long provided important markets for the higher-value hardwood lumber used in fixtures such as cabinets, flooring, and millwork. These markets have become even more important in the face of the decline in furniture manufacture in the USA. The importance of housing and other construction markets to the US hardwood industry is the focus of the current review.Recent FindingsThe housing crisis that began in 2007 (from a construction data perspective) has had a profound impact on the hardwood industry by reducing demand for many products and hardwood industry employment, metrics that recently have started to recover. For higher-value hardwoods, exports have become a critical market in the face of historically low US housing starts. Industrial markets such as pallets and railway ties, traditionally markets for lower-value products, also have increased in relative importance in recent years.SummaryWhile housing starts are expected to eventually return to the long-term trend, an analysis of the current marketplace illustrates the importance of the construction markets to the hardwood industry. Potential new markets for emerging products that can make use of hardwoods also are derived from construction-based sectors, so the overall importance of housing and building construction to the hardwood industry is not likely to wane for the foreseeable future.

Edge-glued panels from Alaska hardwoods: retail manager perspectives

In Alaska, red alder (Alnus rubra Bong.) and paper birch (Betula papyrifera Marsh.) are both lesser-known hardwoods grown, harvested, and manufactured into appearance products, with potential for increased utilization. The production of edgeglued panels from red alder and paper birch offers one expansion opportunity for wood products producers. For this expansion to happen, retail managers’ attitudes and preferences need to be understood and cultivated, as they represent an important link in the supply chain. In this research project, 11 edge-glued panels were prepared from Alaska red alder and birch lumber and presented to managers of retail lumber stores. Panels included different types and levels of character marks. Eight managers in interior and south-central Alaska reviewed the panels, offering their perceptions regarding overall sales potential in their stores. Clear wood was generally preferred in panels produced from red alder. High levels of natural stain were preferred for birch panels. Several panel attributes were identified as being important, including level of character, lack of surface roughness, and availability. Most retail managers ranked price and supply as less important than product quality. Retailers recommended that up to 12 standard panel sizes be provided. Retailers suggested several different end-uses for the panels, with the most promising applications being kitchen cabinet or furniture production.

Changes in Eastern US Sawmill Employment and Estimated Hardwood Lumber Production from 2001 to 2015

Abstract Sawmills are an important component of the hardwood industry, developing value-added products derived from the timber resources of the eastern United States. Employment in eastern sawmills...

Are there regional differences in US hardwood product exports

Abstract Exporting is a critical component of the product mix for many domestic hardwood firms. Previous research has identified factors associated with hardwood lumber exporting behavior, but less is known about the advantages and disadvantages to exporting associated with the region within which a firm is located, or about exporting of secondary hardwood products. A procedure comparing a measure of production (employment) to the level of exporting in three US hardwood regions (based on aggregations of state-level data) was used to contrast regional relative exporting of primary and secondary products. Several factors were then considered as possible explanations for the observed regional differences. Overall, the results suggested that proximity to seaports (i.e., the East Coast) benefited exporting of both hardwood lumber and secondary products, but the impact was greater for lumber. Thus, for secondary products, regional exporting barriers appeared to be lower. Firm size and sawtimber quality and spec...

Procedures used to estimate hardwood lumber consumption from 1963 to 2002

This paper presents an explanation for and procedures used to estimate hardwood lumber consumption by secondary hardwood processing industries from 1963 to 2002. This includes: classification of industry and industry groups, development of proxy prices used to estimate lumber consumption, assumptions used to convert dimension purchases to lumber consumption, estimation of material consumption by firms not reporting material consumption by kind, and estimation of lumber use in frame stock production. Also presented are the special procedures used to estimate lumber consumed by the hardwood flooring, kitchen cabinet, pallet, crosstie, and hardwood plywood industries. The equation on page 10, column 2 was revised on October 17, 2008.