As wood products companies move past the pandemic, new challenges await. Supply chain disruptions and improved demand have caused woodworking manufacturers to seek out new investments in production and procurement capabilities. How is the industry faring in this unique business environment?

Single family housing starts rose by 14 percent from 2020 to 2021 and were greater than 1 million units started for the first time since 2007. This increase came on the heels of the COVID-19 pandemic, which caused numerous production and supply chain disruptions for the wood products industry. Against this backdrop, the thirteenth annual housing and woodworking study was conducted by Northern Research Station and collaborating scientists and industry partners. Results of the study showed that as pandemic impacts waned and housing markets were energized, the number of woodworking firms (cabinets, flooring, millwork, etc.) that reported sales-volume declines was lower for 2021. Concurrent with this positive trend were plans for firms to increase business investments. For the first time since the annual survey began, half of respondents indicated they planned to invest more this year compared to last year. Major areas for planned investments included production-related areas (solid wood processing, assembly, and finishing) as well as employee training. Firms also increased use of computerization in their operations, especially for inventory tracking and supply chain management. This was likely due to challenges for firms to get the materials they needed to meet increased demand. Findings from this study help researchers and industry practitioners better understand how economic changes impact the wood products industry.