Escalating demand for cost-effective wood products for building applications, such as flooring and structural panels, is driving growth in the North American and European engineered wood markets.
A new report from Frost & Sullivan, entitled Strategic Analysis of the North American & European Engineered Wood Markets in Construction & Buildings, says despite the decline in housebuilding and RMI markets, volume consumption of engineered wood products is expected to pick up due to increasing consumer acceptance.
The engineered wood market is also benefiting from the trend for products which improve the environmental performance of buildings. “In the US, the development of ‘green building standards’ has been initiated in several states,” says the report. “These standards are comprehensive and provide impetus for certified wood and wood products that are associated with low emissions.”
The effect was a gradual recovery in 2010, when engineered wood use was encouraged in new housing.
In Europe, the European Commission’s Competitiveness and Innovation Programme has possible significant implications for wood composite products. New policies to promote green buildings would also encourage use.
“Europe has the highest level of penetration for engineered wood products in industrial applications, and the ones that benefit from this trend are particleboard, MDF, and plywood,” the report says. “The majority of these products catering to industrial applications are specialty and value-added products, such as fire rated and melamine faced.”
Glulam use in Europe is increasing and its market penetration is higher compared to that of North America. In Europe, there is greater penetration of engineered wood products in the non-residential construction and industrial markets, while in North America they are more widely used in housebuilding.
Although the prospects for the market look bright, volatile energy costs would continue to be a challenge.
