Project: Global Mass Timber
July 10, 2022
The Sensitive Question of Commoditization in the Mass Timber Panel Industry
The mass-timber panel industry is an exception in the traditional commodity-oriented forest products industry at large, even if one compares it to other sophisticated engineered wood products (EWP). All structural cross-laminated mass-timber panels discussed are specialty products, by which we understand that all panels are custom produced and fabricated for specific projects. There are intrinsic barriers preventing commoditization of massive cross-laminated panels, even in most developed markets. This does not mean that commoditization is not possible in the future. However, we expect commoditization to follow a pathway of highly modular designs rather than blank panels. The presentation will focus on both sides of the equation: contemporary barriers preventing commoditization of structural mass-timber panels and on potential paths to certain level of commoditization in mass-timber panel industry considered more generally as one in which production of panels is a step in delivering of a building as an end product.
May 2, 2022
Global Mass Timber Panel (MTP) Industry During the COVID-19 Pandemic: Initial Findings
For nearly two years, the COVID-19 pandemic has continued to affect global economies in various ways. It has been disrupting supply/value chains of manufacturers in all sectors, and the mass timber panel industry has not been an exception. However, the exact extent of the impact is difficult to measure by conventional means because the mass timber panel industry is specialty oriented and does not follow a commodity model of other forest products sectors. It has navigated without losses the global recession of 2008. Global surveys of the industry conducted before 2020 have hinted an exponential increase of its output volume (projected more than 2 million cubic meters for 2020) and a healthy growth in regions outside Central Europe. The objective of presented project was to use another survey designed to capture the effect of current crisis. The paper presents preliminary outcomes available ahead of the formal conclusion of that survey.
August 1, 2021
Mass-Timber Panel (MTP) Industry and its Supply/Value Chain
The mass-timber panel industry is an exception in the traditional commodity-oriented forest products industry at large, even if one compares it to quite sophisticated engineered wood products like glulam, I-joists or LVL. Historically, there have been strong incentives for panel manufacturers to enhance and control the project acquisition by integrating a certain level of architectural and engineering design services, project management, and quite often construction services or construction supervision. There are also intrinsic barriers making commoditization of MTPs extremely difficult. The supply/value chain of mass-timber panel industry is more complex than commodity engineered wood products, and involves firms providing architectural and engineering design services, project management, manufacturers of connectors, insulation and siding, as well as construction crews. The interaction of panel manufacturers with their supply/value chain and the level of vertical integration vary substantially between companies and show some regional flavor. The purpose of this presentation is to provide insights in the unique way the MTP industry interacts with its supply chain.
October 1, 2020
Global CLT industry survey: The 2020 updates
Building on the first of its kind review of the global CLT industry published in 2017, this paper aims to provide insight into the global CLT industry. Based on two global CLT industry surveys, 46 plant tours, and supplemented with information obtained from other sources, we observed an increasing production trend of a complimentary cross-laminated panel products that use nails, wooden dowels and other alternative panel integration systems. In most countries outside the Alpine Region, the growth of the CLT industry has been encouraged by the governments motivated by the desire to find a stable, economically viable outlet for substantial volumes of domestic lumber of lesser quality. At the beginning of 2020, we estimated that, considering the number of high-capacity plants ready to go in line or reach full capacity in 2020, the global annual output might reach 2.0-2.5 million m3 by the end of the year. However, this number does not reflect the impact of the COVID-19 pandemic, something we will investigate in a third survey.
July 12, 2020
Global CLT industry in 2020: Growth beyond the Alpine Region
At the threshold of 2020, the cross-laminated timber (CLT) industry continues its incredible growth across the globe. The total output of the industry in 2020 is projected to reach 2 million cubic meters. The only continent where no new CLT plants come on line or are at least planned in 2020 is Antarctica. Although many new CLT lines were recently deployed outside of the Alpine region from where the industry evolved, Alpine countries still account for over 70% the output volume and nearly 62% of the annual per-shift capacity. And yet, after more than 25 years of CLT technology development, the industry still feels young and no less intriguing. The goal of this presentation is to provide updated insights into the global CLT industry structure, output potential, production profile, internal diversity, competitiveness, innovativeness, and perceived barriers to further expansion, including the unknown effects of the COVID-19 pandemic. The presentation is based on two global CLT industry surveys, 46 plant tours, and supplemental information from secondary sources. These results are intended to provide insights for potential entrants and stakeholders into the CLT manufacturing sector, including businesses along its extensive supply chain.
August 20, 2018
Recent developments in global Cross-Laminated Timber (CLT) market
Cross-laminated timber (CLT) has grown from an invention to a much-celebrated product and building technology revolutionizing the use of massive timber in construction. The CLT industry is concentrated in Alpine Europe, where the technology was originally developed. Despite great interest, the rate of adoption of CLT technology outside of the region is slow, reflecting uncertainty whether the European models can be successfully transplanted in different business environments. The goal of this project was to assist development of the CLT industry by providing insights into the global sector’s structure, output potential, production profile, internal diversity, competitiveness, approaches to innovativeness, and perceived barriers to further expansion. Survey data collected from CLT manufacturers are supplemented with information obtained from other sources including site visits and interviews. The primary finding is that the CLT manufacturing industry is very diverse and unique in the commodity-oriented forest sector in that most of its production is custom-made for specific projects. Most of the CLT is produced for small to medium-size multi-family housing, public, and industrial structures. There is a high level of collaboration along the CLT supply chain, including vertical integration. Nearly one-third of respondents are involved in building construction.