Insulation Board, Hardboard, and Particleboard Industries

Hardboard has been produced for commercial use since 1926. Aggressive development and residential construction resulted in hardboard shipments of 6,475 million square feet (1/8-inch basis) in 1973. Since 1962, domestic shipments have grown at an annual rate of 9 percent. Domestic consumption of hardboard has grown even faster than domestic production, with over one billion square feet of hardboard imported in 1973. Imports consist primarily of utility board rather than higher value board with decorative finish. Exterior siding for residential construction is the largest single market for hardboard. Wood particleboard was patented in the United States in 1905 but did not become commercially important until the late 1950’s. In 1973, 3,583 million square feet (3/4-inch basis) were produced. With approximately 63 plants currently in production and little product differentiation, particleboard is a commodity of low unit value in an industry characterized by strong price competition. A primary product from particleboard is floor underlayment for use in on-site housing and mobile homes. In 1914, the first insulation board was developed. Since then this industry has been highly dependent on the residential construction market for most of its sales. Acoustical ceiling tile and other acoustical products were developed after World War II in an effort to diversify and expand. In 1973, total U.S. production of acoustical and insulating materials was 3.90 billion square feet (1/2-inch basis). Market prospects appear good for insulation products, which can save on heating and cooling costs. In 1970, the three industries used about 16,500 tons of wood raw materials per day on a dry wood basis, mainly chips from small roundwood or other wood manufacturers. Recently, competition among board and paper manufacturers for round wood and chips has become very strong. Exports of pulp chips to Japan have increased competition on the West Coast. Future competition for raw materials is expected to be keen and require the development of higher value products–especially particleboard, which has been largely dependent on low-cost wood residues from sawmills. As technology improves, sawmills will probably produce much less residue.

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