C I N T R A F O R
Working Paper Abstract
The US Millwork Industry: Historical Trends Based on US Department of Commerce Statistics
David G. Briggs, Lee Bialozynski, Steven R. Shook. 1994. (75 pp) WP48 $15.00
According to U.S. Department of Commerce census data:
*The millwork industry consisted of 2782 establishments in 1987 which produced millwork as the principal business.
*The millwork industry is dominated by small establishments; 69% had fewer than 20 employees and only 65 had more than 100 employees.
Between 1987 and 1991;
*Total employment varied between 85,000 and 91,000; about 72% were production workers.
*Value of shipments varied between $9.0 and $9.7 billion, making millwork the largest of what are commonly called the secondary solid wood product industries. Of the 95% of these shipments which were millwork products,
doors 39%
windows 27%
mouldings 12%
other 29%
Total cost of materials, labor, energy, contracts, etc., varied from $7.1 to $7.7 billion, of which materials consisted of 70%, production and non-production workers were 25%, energy, contracts and additional expenses were 5%.
Of the expenditures for materials, 43% was for wood materials, of which lumber was 87% (softwood - 72%, hardwood - 15%), hardwood veneer was 6%, plywood was 4% (softwood - 1%, hardwood - 3%), particleboard was 2%, and medium density fiberboard was 1%.
*Value-added by manufacturing varied between $3.7 and $3.9 billion
The principal markets for millwork products are:
new private construction 48%
repair and remodel 47%
public construction 3%
prefabricated housing 2%
According to U.S. Department of Commerce trade statistics for 1989-1992; Exports as a percent of value of shipments have grown from 1.1% in 1989 to 2.4% in 1991.
In nominal dollars, comparison of 1989 and 1992 trade data shows that U.S. millwork exports grew from $102 to $272 million while imports declined from $310 to $306 million. The trade deficit in these products declined from $208 to $34 million.
The composition of exports is (Table 31):
% of 4-year total Trend doors and components 44.6 increasing softwood mouldings 28.3 increasing windows and frames 18.1 decreasing hardwood mouldings 7.0 decreasing blinds, shutters & other 2.1 decreasing
Export trade for all products is dominated by Canada and Mexico. Other important markets for specific products are the Pacific Rim (mainly Japan), Europe, and the Caribbean countries.
The composition of imports is (Table 31) % of 4-year total Trend softwood mouldings 41.4 increasing doors and components 27.2 stable hardwood moulding 19.4 decreasing windows and frames 6.7 increasing blinds, shutters, & other 5.2 decreasing
Imports were also dominated by Canada and Mexico, but other regions were important sources of specific products. South America (Chile, Brazil) and the Pacific Rim (New Zealand) are important sources of softwood mouldings. Both Chile and New Zealand have large plantations of radiata pine and are promoting this species for millwork. The Pacific Rim (Malaysia and Indonesia) is an important source of hardwood mouldings. South America and the Pacific Rim are large suppliers of doors and components. The European Community was an important source of millwork in 1989 but its share sharply declined by 1992.