Much of the North American wood products industry was severely impacted by the recession of 2008–2009. In addition, many sectors within this industry face intense global competition. Against this backdrop, we examine economic opportunities for hardwood manufacturers to achieve greater competitive advantage via product customization, through a literature review and synthesis. We also discuss several related themes including agility, lean manufacturing, and clustering. We found that, in globally competitive environments, hardwood producers must be agile to adapt to economic conditions and dynamic customer demand. We discuss how some sectors of the hardwood industry have effectively exhibited customized production, and subsequently fared relatively well in the current economy. We conclude the synthesis by evaluating the importance of supply chains to achieving customization for hardwood producers. In the future, supply chains will need to be configured to rapidly respond to changing consumer demands, and pressure to provide more services will likely extend further back up the supply chain to hardwood sawmills. It is expected that sustainability practices, including green supply chain management, will impact operational and economic performance of hardwood firms as well.

Purpose of Review The housing industry has long provided important markets for the higher-value hardwood lumber used in fixtures such as cabinets, flooring, and millwork. These markets have become even more important in the face of the decline in furniture manufacture in the USA. The importance of housing and other construction markets to the US hardwood industry is the focus of the current review. Recent Findings The housing crisis that began in 2007 (from a construction data perspective) has had a profound impact on the hardwood industry by reducing demand for many products and hardwood industry employment, metrics that recently have started to recover. For higher-value hardwoods, exports have become a critical market in the face of historically low US housing starts. Industrial markets such as pallets and railway ties, traditionally markets for lower-value products, also have increased in relative importance in recent years. Summary While housing starts are expected to eventually return to the long-term trend, an analysis of the current marketplace illustrates the importance of the construction markets to the hardwood industry. Potential new markets for emerging products that can make use of hardwoods also are derived from construction-based sectors, so the overall importance of housing and building construction to the hardwood industry is not likely to wane for the foreseeable future.

In 1977, the value of wood household furniture shipments from domestic manufacturers exceeded kitchen cabinet shipments by 170 percent; conversely, in 2006, shipments of cabinets exceeded shipments of furniture by 78 percent. The most apparent reason for the decrease in domestic furniture shipments is the increase in furniture imports, whereas cabinet demand has increased because of the popularity of larger kitchens and the robust housing market prior to 2006. However, there also are less apparent factors. A large portion of domestically produced wood furniture is sold to consumers from retail stores whose buyers ordered product at semiannual furniture markets. Meanwhile, a growing volume of cabinets are designed and ordered by consumers at home improvement centers. Furniture manufacturers carry large volumes of finished products in inventory, while cabinet manufacturers carry low inventories. Furniture has become a quasi commodity that is priced within narrow ranges depending on quality, whereas sale methods for semicustom and custom cabinets allow consumers to order the species, finishes, and features they want. The price competitiveness of the furniture industry has allowed imports to become the major source of product. The need to price furniture at levels competitive with imports has also resulted in a greater use of composite materials versus lumber and dimension stock. By contrast, kitchen cabinet manufacturers are using greater volumes of lumber and dimension. While these factors have resulted in a contrast in fortune for the wood household furniture and cabinet industries in the United States, possible opportunities exist for the reemergence of parts of the domestic furniture industry.

The maple syrup industry in Ohio, which ranks fifth in total production in the United States, is comprised primarily of small family owned operations that are served by The Ohio State University (OSU) Extension system. We evaluated the effectiveness of OSU Extension educational programming designed to improve sugarbush and sugarhouse management through a survey administered at the three 2004 Ohio Maple Days workshops. Most survey respondents indicated that after attending past maple syrup workshops they implemented changes that were relatively simple and inexpensive; however, most indicated they are interested in learning more about technologies that increase production and maple syrup quality.