Lumber & Wood
This industry involves the harvesting of timber and its processing into raw lumber, plywood, and other wood-based materials for housing and furniture.
Why it exists
Lumber & wood converts forests into building materials, furniture inputs, and engineered products.
Why it’s necessary
Wood is a renewable structural material. It’s essential for housing, low- to mid-rise construction, and many consumer products.
Key components
Timberland (owned or contracted)
Sawmills and drying operations
Engineered wood (LVL, CLT, plywood, OSB)
Logistics from forest to mill to customer
How to evaluate businesses
Assess access to timber (cost, sustainability, tenure of rights), mill efficiency, product mix (commodity vs engineered), and exposure to housing markets. Timber REIT-style businesses also hinge on land value and harvest discipline. Watch sensitivity to interest rates and construction cycles.
How the industry could be improved
Better forest management (fire risk, biodiversity, yield), more value-added engineered wood replacing steel/concrete in appropriate use cases, and improved traceability (from forest to home). Automation and optimization in mills to reduce waste and energy use.