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Breaking Flooring News

US Demand for Building Boards to Exceed 52 Billion Square Feet in 2017

feature
May 3, 2013

Demand for building boards in the US is forecast to rise 7.0 percent annually through 2017 to 52.5 billion square feet, as measured on a 3/8 inch basis.  Residential construction markets accounted for approximately half of total demand in 2012 (though that percentage is much higher historically), so increased construction activity due to an expected housing market rebound will spark gains.  In particular, the housing market recovery will drive growth in demand for building boards in flooring, roofing, and wall sheathing applications.  Through 2017, the most rapid growth in building board demand is expected in windows and doors, subflooring, and roofing applications.  Growth in demand for building boards in manufacturing applications is not projected to be as strong as that in construction applications.  Among manufacturing markets, furniture and fixtures and engineered wood products are expected to post the fastest gains in building board demand.  These and other trends are presented in Building Boards, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Of all board products, softwood plywood and oriented strand board (OSB) account for the largest portion of demand.  Both products are structural boards, meaning they are approved for use in structural applications such as floor and wall sheathing.  Through 2017, OSB is forecast to see much more rapid gains in demand than is softwood plywood.  In 1992, OSB was certified by all model building codes in the US to perform as well as softwood plywood on a thickness-by-thickness basis.  Since that time, OSB has gained share from softwood plywood in construction markets, as it offers the same performance characteristics but at a lower price point.  This trend is expected to continue through 2017.

Nonstructural board products include particleboard, medium density fiberboard (MDF), hardwood plywood, hardboard, insulation board, and other fiberboard products.  Through 2017, rapid growth is expected in those products used extensively in construction applications, including insulation board and other types of fiberboard, such as high and low density boards.  All of these products are used frequently in roof, floor, and wall sheathing applications and will benefit from the expected housing market recovery.  However, insulation board and other fiberboard products are projected to continue to account for only a small portion of overall nonstructural board demand.

 

                                                                                                                                               

US BUILDING BOARD DEMAND

(billion square feet – 3/8 inch basis)

 

% Annual Growth

Item     

2007

2012

2017

2007-

2012

2012-

2017

Building Board Demand

53.5

37.5

52.5

-6.9

7.0

Structural Boards

32.3

21.6

31.6

-7.8

7.9

Nonstructural Boards

21.1

16.0

21.0

-5.5

5.6

KEYWORDS: construction housing market

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