Effect of vertical integration on the utilization of hardwood resources

The effectiveness of vertical integration in promoting the efficient utilization of the hardwood resource in the eastern United States was assessed during a series of interviews with vertically integrated hardwood manufacturers in the Appalachian region. Data from 19 companies that responded to the 1996 phone survey indicate that: 1) vertically integrated hardwood manufacturers can achieve higher value-added product yields from their sawmill’s log inputs, 2) there are numerous lumber exchange systems in place within these firms, and 3) the goals and benefits derived from vertical integration are varied and complex.

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