Fundamental Economics of the Particle Board Industry

Boards and other products can be made from a mixture of wood chips of various sizes and shapes with glue and pressing the mass into a flat or molded sheet where it is cured under heat and pressure. Particleboards are used for wall coverings (natural, painted, or veneered), for show windows, exhibit booths, exterior wall sheathing, roof decking, subflooring, furniture, door cores, and cabinetwork. The raw materials are chips from sawmill slabs and edgings, low-grade logs; from veneer waste; limbs and small trees; and mill waste. Factories are operated by plywood, furniture, and lumber manufacturers and by independent manufacturers. The smallest economical size particleboard plant of the future will produce more board than the average parent plant can consume, so it ultimately will become an independent division. Companies with unused raw materials (residues) that can convert them to board form will have an advantage over companies who cannot convert them to useable form. The practical development of particleboard began after World War II when urea-formaldehyde glues were discovered to be well suited for particle binders. (A discussion of the historical developments in both Europe, and the United States is presented.) Particleboard requires 7 to 10 percent adhesives; therefore, the cost of glue represents about half the cost of the board. Because of the glue costs and physical properties, particle boards seldom are less than 1/2 inch thick, and they are best made in 3/4 inch thickness. This is the basic economic principle of the product and is a large factor in determining where wood particleboard competes with fiberboard. The best market for particleboard is as core stock. It is not a general-purpose board, such as lumber, plywood, and hardboard, but a specialized item. Plants must be designed to eliminate hand labor, glue waste, and haphazard manufacture of wood particles. The cost of an ultra-modern plant will pay off in increased production of high-quality boards with superior properties. The trend is toward higher equipment costs because of the demand for improved equipment.

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