Forward vertical integration for Canadian and U.S. producers of structural panels and softwood lumber: trends of the 1980s

Previous articles have suggested that during the 1970s U.S. forest products companies were increasing their levels of forward vertical integration. In order to determine if this trend continued throughout the 1980s, selected North American wood products firms were surveyed to determine their level of forward vertical integration. Results showed that from 1983 to 1987, U.S. forest products firms decreased the annual use of controlled distribution for structural panels by 2.5 percent at the wholesale level and 15.1 percent at the retail level. Use of controlled distributors for softwood lumber decreased at the wholesale level by 12.6 percent and by 15.8 percent at the retail level. In Canada, the use of controlled wholesalers decreased from 1983 to 1987 at the annual rate of 3.1 percent for panels and 1.9 percent for lumber. Predictions for 1990 indicated a continuing decline in the use of controlled distribution channels and a shift away from forward vertical integration by the producers of softwood lumber and structural panels in North America.

You must be logged in to download any documents. Please login (login accounts are free) or learn how to Become a Member