Increased Construction Spending in the Developing Countries to Fuel Growth in Plywood Market, According to New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on Plywood markets. Plywood consumption in the global market is projected to exceed 85 million cubic meters by 2018, owing to notable demand from emerging markets across Asia, Latin America and Europe. Consumption is largely dependent on the state of the construction industry, the growth in which currently remains sluggish in developed countries owing to the prevailing economic volatility. Improvement in the global economy is likely to sustain growth in the long-run.

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Plywood: A Global Strategic Business Report

San Jose, California (PRWEB) November 19, 2012

Follow us on LinkedIn – Housing development represents the key determinant for plywood demand worldwide. Importance of plywood in construction industry has risen in recent past, owing to its advantages over conventional wood, metal, and plastic. Asia-Pacific, US, and Europe account for a lion’s share of total global plywood consumption. In Asia-Pacific, China accounts for more than half of the region’s total consumption. Presently, though the markets across the globe have left the recession phase behind, the prevailing Euro zone debt crisis, deepening deficits in the US budget, and political instability in the Middle East and North Africa are calling for stringent policies, hampering prospective business and financial recovery. The near-term outlook for the global construction sector remains gloomy with the developed markets continuing to grapple with economic issues. Consequently a major chunk of growth in construction spending is expected to emerge from developing markets while developed markets lurch with austerity measures.

China dominates the global market for Plywood consumption, as stated by the new market research report on Plywood. The Chinese plywood market witnessed a phenomenal growth in past decade, evolving from an industry largely focused on addressing domestic market needs to the one increasingly catering to the global demand. Through the last decade, China expanded its plywood production significantly making it the largest producer as well as exporter of plywood worldwide. The nation is however garnering mixed results in domestic demand, with the non-residential and social housing sector growing at a healthy pace and the housing sector reeling under severe pressure due to government policies and the resulting deceleration in housing sales, economic disparities and minimal construction activity.

Asia-Pacific markets, excluding China, are expected to post the fastest CAGR over the analysis period. In Japan, demand for wood products is expected to increase, as the country begins to rebuild the earthquake-devastated areas. However, the delay in reconstruction work owing to the longer time taken to clear debris and the resulting built-up of plywood inventories, is expected to moderate the growth pace to an extent in the years to come. In the US, after effects of the recent economic crisis continue to linger over the construction industry despite the numerous initiatives undertaken by the government to assist the recovery of the sector. Though the plywood sector witnessed a marginal recovery in demand in 2011, future growth in the market primarily relies on the recovery of the housing sector, which is poised to readily absorb the curtailed as well as new capacity. In Europe, the escalating macroeconomic uncertainty continues to dampen business confidence, thereby delaying the pace of recovery across the construction sector. The region also faces increasing threat from rising imports of cheaper plywood products, specifically from China, Russia, Uruguay and Ukraine.

Besides restricted construction spending, another challenge faced by the plywood market is increasing competition from alternate materials such as Oriented Strand Board (OSB) and Medium Density Fibreboard (MDF). The products are gradually eating into the share of plywood, which, despite its value is unsustainable as the product necessitates felling of trees and the extensive use of preservatives and resins in the manufacturing process. However, plywood remains a preferred option for various applications due to its quality.

Major players in the marketplace include Atlantic Plywood Corporation, Boise Cascade, LLC, Eksons Corp. Bhd, Georgia-Pacific, LLC, Greenply Industries Ltd., Roseburg Forest Products Co., SDS Lumber Co., Seihoku Corporation, Uniply Industries Ltd., West Fraser Timber Co., Ltd., and WTK Holdings Berhad, among others.

The research report titled “Plywood: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for Plywood (in US$) for geographic markets including the United States, Canada, Japan, Europe, China, Rest of Asia-Pacific, Latin America and South Africa.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Plywood_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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