Potential reductions in plywood manufacturing costs resulting from improved technology

Recent technology improvements in plywood manufacturing processes are described. The potential impact of these improvements on manufacturing costs and output capacity of a plywood mill was examined by a series of computer simulations. Results indicated that, compared to a mill equipped with technologies characteristic of the mid-1970s, a modernized mill could process similar wood input into the same product output with about 14 percent lower variable costs. By replacing medium-diameter (14-in.) bolts with small-diameter (9-in.) bolts, additional cost savings of 20 to 24 percent could be realized, depending on the technology applied. Also, annual output could increase by 13 to 28 percent without adding more lathes, dryers, or presses.

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